There are claims that government administration for managing illegal buildings is being neutralized in front of large apartment complexes. Newly built apartments around Gaepo-dong, Gangnam-gu, Seoul, are violating the Building Act by installing public pedestrian pathways as a condition for floor area ratio incentives and then closing them afterward. However, unlike ordinary buildings, they are avoiding practical disadvantages such as lending restrictions.
According to the real estate industry on the 4th, some newly built complexes, including THE H Honorhills in Gaepo-dong, Gangnam-gu, Seoul, have a "violating building" notation specified in the building ledger cover. A violating building refers to a building whose use has been changed—such as new construction, extension, or reconstruction—without permission or reporting procedures under the Building Act and other relevant laws.
But in practice, there are almost no disadvantages such as lending limits when signing jeonse or sales contracts in the complex. This is because current lending regulations are strictly applied only when a violation mark exists on the exclusive-use part of an individual unit. It exploits a loophole in which even if a "violation" label is attached to the cover due to a common-area violation, which is the responsibility of the entire complex, it does not affect the registration of individual units. Critics say this is a clear discrimination compared with owners and tenants of general multi-household homes and low-rise apartments, for whom loans are immediately blocked upon a violation mark.
Inconsistent administrative dispositions by local governments are also fueling confusion. Nearby apartments, Raemian Blestige and Raemian Forest, were also subject to the same corrective measures for closing public pedestrian pathways, but whether the notation appears in the ledger varies.
THE H Honorhills and Raemian Forest were marked with violations, while Raemian Blestige, despite the fact that corrective measures were effectively not implemented, was found to have omitted the violating building notation.
These complexes received incentives, such as an increase in the floor area ratio, on the condition that they open passageways to the public. But after occupancy, noise arose as they restricted the passage of outsiders, citing security and other reasons.
A real estate industry official said, "Since the Moon Jae-in administration in the past, if there is a violating building in the building ledger, tenants of dwellings cannot receive jeonse loans, and buyers are blocked from obtaining acquisition loans," while noting, "Even if apartment common areas are built in violation of the Building Act, there is little impediment to loans, so the perception can spread that paying a small fine is enough." The official added, "If authorities fail to take firm sanctions against maximizing revenue by violating the law during construction and even legalize it temporarily, those who built in compliance with the law will effectively be disadvantaged."