Jongno-gu concludes violation of Article 132 of the Urban Improvement Act after receiving complaints from a residents' emergency committee; district finds promises of 40 million won in goods and threats of liquidation unlawfully coerced residents
Jongno-gu is moving to take strict administrative action over the redevelopment project in Changsin zones 9 and 10.
After reviewing complaints filed by a residents' emergency committee opposing the project, the district concluded that the process used to collect consent forms designating a trust company as project operator violated Article 132 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, which prohibits promises of financial gain.
Jongno-gu had been conducting a multi-pronged legal review of illegal and improper conduct reported by residents opposed to the redevelopment.
The probe found that a provisional project promotion committee, in its effort to secure the 75 percent consent rate required from landowners and building owners, promised goods worth 40 million won ($30,200) — including built-in home appliances, balcony extensions and system air conditioners — and told residents they could face liquidation if they refused to sign, thereby coercing them and undermining their right to decide freely.
The district determined that such conduct violated Article 132 of the Urban Improvement Act, which bans the receipt, provision or promise of cash, gifts or entertainment in connection with improvement projects. It said it cannot accept an application to designate a trust operator based on consent forms collected through illegal means, and will require the promotion committee to collect entirely new consent forms through proper and lawful procedures that reflect residents' free will.
If the committee fails to comply with the district's administrative guidance, or presses ahead with an application to designate a trust operator without resolving the legal violations, the district said it will immediately reject the application and impose strict sanctions in accordance with relevant laws and administrative procedures.
Jongno-gu said it has made sustained administrative efforts to resolve the conflict surrounding the trust company designation and to help residents realize their desire for more stable living conditions.
Through consultations with the project's driving parties, the district pursued measures to address the emergency committee's concerns and ease the burden on residents — working to establish practical tenant protection measures, discuss ways to prevent the displacement of original residents, small-share owners and elderly residents who cannot afford their share of costs, and conclude a phased construction-cost verification agreement.
Despite those efforts, the district said that pressing ahead with the project while leaving the fundamental legal violations in the consent-collection process unaddressed would inevitably lead to larger legal disputes and greater harm to residents.
While there are no financial costs at the current stage, if the emergency committee files lawsuits to invalidate the consent forms or cancel the designation after design, relocation and construction have begun — committing enormous sums — the project could stall for at least two to three years.
In that scenario, hundreds of billions of won in trust and construction financing interest and project-delay losses would fall entirely on residents as additional contributions. The district therefore made clear that resolving the legal risk by recollecting consent forms through proper, voluntary procedures — a process expected to take about two to three months — would be far more advantageous for both the pace of the project and the protection of residents' property rights.
"The district has sought a mutually beneficial approach that lets residents move forward with confidence — covering tenant protection, preventing the displacement of original residents and verifying construction costs," an official from Jongno-gu's redevelopment and reconstruction task force said. "But turning a blind eye to illegally collected consent forms and pushing ahead is like handing residents a time bomb in the form of hundreds of billions of won in future litigation." The official added: "If the provisional promotion committee rushes ahead with illegal consent collection just to hit the statutory approval rate, it is the residents who will bear the consequences. Spending just over two months recollecting consent forms the right way is the only path that delivers both speed and real benefit."
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