Seoul will offer floor area ratio incentives to project operators such as cooperatives and trustee companies that voluntarily pay relocation costs to tenants excluded from legal compensation.
The Seoul city government said on the 24th it will immediately implement a system that grants incentives within 125% of the maximum floor area ratio when a project operator in a redevelopment zone voluntarily compensates nonlegal tenants for losses.
Loss compensation for residential and business tenants in redevelopment zones is limited to those who have lived or operated businesses since before the "public notice date for district designation review." Tenants who moved in after the public notice date have not been compensated when relocating, becoming a source of conflict at redevelopment sites.
Accordingly, the city enabled project operators, if they voluntarily provide additional loss compensation to so-called nonlegal tenants even though it is not a legal obligation, to receive floor area ratio incentives by converting the relevant expense into site area. The system takes effect today.
The additional compensation amount will be applied differentially based on the tenant's actual period of residence or business operation, within the maximum amount received by legally compensated tenants, in consideration of fairness with tenants who receive legal compensation.
To prevent project delays following the introduction of the incentives, the city plans to process changes to the maintenance plan swiftly by classifying them as "minor changes" handled by district offices. Minor changes can be processed by the district mayor without procedures such as public inspection by residents.