Nowon-gu Moves to Block 'Commercial Unit Splitting' That Derails Reconstruction Projects

Nowon-gu in Seoul is moving to impose activity restrictions on 13 planned reconstruction sites before their formal designation as improvement zones, in a bid to prevent project delays caused by the practice known as "commercial unit splitting."

Reconstruction projects require a legally mandated consent rate to establish a cooperative association. However, if privately owned commercial units or land parcels are subdivided before an improvement zone is officially designated, the number of registered unit owners increases — making it harder to meet the consent threshold. This so-called commercial unit splitting has been identified as a source of conflict among residents and a key factor behind reconstruction delays.

In practice, the problem has already materialized: at the Wolgye Siyeong High-Rise Apartment complex, three subdivisions of private units over the past three years resulted in 33 additional commercial units.

In response, the district plans to proactively manage changes in property rights at the early stages of reconstruction to reduce project delays and resident disputes.

The measure reflects residents' concerns raised at a district mayor's community meeting on Sept. 1 and at the inaugural ceremony of the Nowon Reconstruction and Redevelopment Innovation Strategy Promotion Council on Sept. 15. The district said it expects the move to reduce uncertainty in the cooperative formation process and improve the stability and predictability of reconstruction projects.

The activity restrictions will be pursued under Article 19 of the Act on the Improvement of Urban Areas and Residential Environments and Article 8 of the Framework Act on Land Use Regulation. They will apply to areas where reconstruction improvement plans are being drawn up and where resident representatives or preparatory committees that have applied for expedited integrated planning consultation have requested the restrictions. The district said it will determine whether to impose restrictions after review by the city planning committee.

Restricted activities include building construction, land subdivision, conversion of a general building register to a collective building register, and subdivision of privately owned units within a collective building register. However, the district said it plans to allow exceptions through a review process when legitimate necessity is recognized, balancing the protection of residents' property rights with the public interest.

The 13 sites under review are Wolgye Samho 4th Complex, Wolgye Siyeong High-Rise, Hagye Hanshin Dongseong, Sanggye Jugong Complex 2, Hagye Jangmi, Hagye Miseong, Junggye Green, Sanggye Jugong Complex 3, Junggye Jugong Complex 8, Sanggye Jugong Complex 7, Hagye Hyundai Useong, Sanggye Jugong Complex 11 and Hagye Geukdong Geonnyeong Byeoksan.

The district will hold a public review from Thursday through Oct. 29 to gather residents' opinions. Related documents will be available for inspection at the Reconstruction Project Division on the third floor of the Nowon-gu Office. Opinions may be submitted in writing or through the Seoul Urban Space Portal. The district plans to have the city planning committee review the matter in November before announcing the zoning map.

The activity restriction period will last up to three years from the date of announcement and may be extended once by up to one year if necessary. However, if an improvement zone is officially designated during the restriction period, the restrictions will be lifted the day after the designation is announced.

"We are continuously reviewing various support measures to ensure reconstruction projects can proceed swiftly without unnecessary conflict or delays," Nowon-gu District Mayor Seo Jun-o said. "Going forward, we will continue to gather residents' opinions fully and pursue reconstruction projects in a stable manner, balancing the protection of property rights with the public interest."