This year, expectations were high for the Yongsan "Asia Holdings Apartment" to be a 'big catch' in the second half, but it has become virtually impossible to sell it within the year. With 150 units of the Asia Holdings Apartment being used as accommodations for U.S. embassy staff, the embassy's 'request for design changes' has extended the review period. The U.S. embassy has reportedly requested additional design changes along with a requirement to comply with the International Building Code (IBC).
According to the Ministry of Land, Infrastructure and Transport and the construction industry on the 25th, the Yongsan Asia Holdings Apartment began construction last July, but the work has currently been halted. It passed the construction review in December of last year, and general sales were expected in September of this year, but it has become practically impossible to sell within the year.
The reason for the construction halt is the U.S. embassy's request for design changes. The U.S. embassy has requested that the IBC (International Building Code), which applies to U.S. buildings in general, be followed for the construction of the Asia Holdings Apartment. The IBC is a building code standard developed by the International Code Council (ICC) that focuses on public health, safety, and welfare. In particular, residential buildings have higher standards for sprinklers, fire compartments, escape routes, and accessibility for persons with disabilities.
If the IBC is applied to apartments in Korea, the possibility of increased construction period and expenses is significant. For example, while Korea typically bases fire compartments on area, the IBC requires compartments for adjacent spaces with different uses. This would lead to thicker walls or slabs and an increase in the use of fire-resistant materials. Additionally, since the U.S. and Korea use different building materials and construction methods, adhering to the IBC regulations in Korea would require introducing new materials or changing construction methods. Furthermore, there are considerable differences compared to domestic building laws, such as designs for accessible restrooms and placement of solar panels.
A local representative of Bando Construction, which sold apartments in Los Angeles, said, "There are difficulties in applying the IBC directly to domestic sites. Especially for residential types (apartments, dormitories, etc.), the requirements for sprinklers, fire compartments, accessibility for persons with disabilities, and seismic design are much more stringent," adding that "the certification and approval processes are stepwise and complicated, so the cost and construction timeline will be burdensome for Korean corporations applying it on domestic sites." He also noted that "It is essential to incorporate American local codes from the initial design stage and collaborate with local designers and engineers."
Park Seo-jin, executive director of HanmiGlobal's engineering office, said, "The IBC standards can be applied based on the engineers' judgment," but noted that "it will be challenging to apply them to apartment construction due to the need to comply with building laws in Korea."
The U.S. embassy is also reported to have requested numerous design changes. In response to inquiries from ChosunBiz, the embassy answered, "We do not comment on internal discussions."
Buhyung Housing, the developer and construction company for the Asia Holdings Apartment, has been cautious in expressing its stance since the matter involves both the U.S. embassy and the Ministry of Land, Infrastructure and Transport. Buhyung Housing has completed its review of the U.S. embassy's requirements received from the Ministry and sent an official letter to the ministry on the 12th. A representative from Buhyung Housing stated, "It is difficult to divulge specific details," adding, "As the review period has extended, construction has been temporarily halted."
A representative from the Ministry of Land, Infrastructure and Transport stated, "There is a discrepancy between the U.S. embassy and Buhyung Housing," adding, "There are parts that require consultation." The counterpart to the U.S. embassy's design change proposal is the Ministry, which is currently reviewing the response from Buhyung Housing.
The Yongsan Asia Holdings Apartment is being developed by Buhyung Housing, which purchased the site from the Ministry of National Defense in 2014 and received project approval in February 2021. The construction began last July, drawing attention after a decade of inactivity. It consists of 10 buildings, with three underground floors and a maximum of 36 floors above ground, totaling 997 units. Even excluding the units for the U.S. embassy, more than 800 units are expected for general sales, attracting interest from prospective buyers. The location is 65-154 Hangangno 3-ga, Yongsan-gu, considered a prime area with nearby offices of HYBE, the agency for BTS, and LG Uplus.