Yongsan settlement fails to address redevelopment policy problems

Posted on : 2009-12-31 12:07 KST Modified on : 2019-10-19 20:29 KST
Experts say small businesses and tenant traders require costs of relocation and point to other action required by the government in changing its redevelopment plan
 a bereaved family member who lost her husband in the Yongsan tragedy
a bereaved family member who lost her husband in the Yongsan tragedy

As the Seoul Metropolitan Government and Yongsan tragedy family members have come to an agreement, calls are growing for fundamental changes in redevelopment policies in order to prevent a second or third Yongsan tragedy from occurring.

Many experts are saying, “If there is no fundamental changes made to redevelopment policies, forceful evictions and demolitions will continue to be met with tenants’ resistance and another Yongsan tragedy could occur.” Currently, demolitions have been suspended due to the severe weather, and some anticipate clashes between redevelopment associations and tenant associations in the spring.

Ever since the Yongsan tragedy crystallized problems with redevelopment for the public, the Seoul Metropolitan Government, the Lee Myung-bak administration, and several politicians have made pledges to make changes. However, analysts are saying their words have produced little results.

The Lee administration has made some revisions to some laws and enforcement ordinances, including a revision to the enforcement ordinance for the Law on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, however, many are criticizing that it does not address the root problem.

The revised enforcement ordinance permits the redevelopment association to order the tenants to vacate in exchange for four month’s worth of earnings that may be lost in relocating. The revision represents an increase by one month’s worth of earnings. Cho Myung-rae, professor of Dankook University, says, “The compensation for the tenant trader might approximate 30 million Won (26 thousand dollars), however, it is a relatively small amount when one factors in the premium on the store’s location.” Professor Cho adds, “The compensation for the tenant trader should be increased to include the costs of relocation.”

Experts also say, “In order make an effective redevelopment policy, the rights of businesses should be included when calculating the amount of compensation due.” Kim Su-hyun, professor of Real Estate Department, Sejong University, said, “If the rights of businesses are not included in the process of determining the appropriate amount of compensation the situation requires, it means business will only be able to receive a larger sum in compensation if they are resolute in fighting for themselves.” Professor Kim further expressed concern about this matter by saing, “Although I think it is difficult to see the Yongsan settlement as a resolution for the redevelopment problem facing South Korea it could, however, provide a place to start.”

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