[Seoul's News] The SMG Remodels Outdated Gosiwons into Share Houses for Young People and Supply 290 Houses This Year
The SMG Remodels Outdated Gosiwons into Share Houses for Young People and Supply 290 Houses This Year
- The SMG remodels non-dwellings into share houses called remodeling-type social houses, following the demonstration project (40 houses) held last year.
- The SMG provides up to 80% of the remodeling expenses (up to 200 million won) and lends up to 90% of the business funds.
- Single-person households of youth can rent a share house up to six to ten years at 80% of the market price of the surrounding areas.
- The SMG recruits housing cooperatives, social enterprises, non-profit cooperations, etc. that want to participate in the project throughout the year.
This year, the SMG increased the supply goal by seven times from last year’s demonstration project of 40 houses (2 buildings). It will raise the support limit of remodeling expenses from 150 million won to 200 million won in order to reduce the burden of initial business funds.
※ Demonstration project for remodeling-type social housing (2016)
|No.||Business operator||Address||No. of houses|
|1||SUNLAB||116-25, Sillim-dong, Gwanak-gu, Seoul||20 houses|
|2||SUNLAB||1546, Sillim-dong, Gwanak-gu, Seoul||20 houses|
Business operators consisting of housing cooperatives, social enterprises, non-profit cooperations, etc. purchase or lease and remodel non-dwellings that are built at least 15 years ago. Single-person households of young people (those who do not own a house and whose monthly average income is 70% or below of the urban household income) can rent the houses up to six to ten years at 80% of the market price.
The SMG provides 60% to 80% (up to 150 million to 200 million won) of the remodeling expenses depending on the project period (six to ten years). Business operators can borrow up to 90% of the business funds through Korea Social Investment (8 years, interest rates of 3% or below).
Gosiwon, a type of studio apartment in South Korea, are facilities packed with tiny one-room units connected by a narrow corridor. Through this project, gosiwon buildings are remodeled into a new conceptual share housing model for single-person households, which are a combination of a private residential space and community space (dining room, washroom, shower, lounge, conference room, etc.).
<Remodeling Before & After>
On the 8th (Monday), the SMG announced that it would recruit business operators for its Remodeling-type Social Housing Project throughout the year.
Housing cooperatives, social enterprises, non-profit cooperations, and small- and medium-sized businesses (construction businesses, real estate businesses, and lease businesses) that have the ability and experience in home remodeling and are interested in housing problems can participate in the project. Business operators who want to participate in the project should receive a written consent for sale (lease) of the structure from building owners and visit the Housing Policy Division of the Seoul Metropolitan Government to submit the required documents including a business proposal.
In addition to the Remodeling-type Social Housing Project, the SMG has been conducting the Land-leasehold Social Housing Project. Through this project, social business entities can lease land for over 30 years (annual interest rate of 1%). The SMG started recruiting tenants of Youth Sharing Houses (15 houses) in Jeongneung-dong, Seongbuk-gu on the 8th (Monday). Deposits are between 23 million won and 32 million won and the monthly rent is 100,000 won.
- Visit the website of Seoul Housing and Communities Corporation (http://www.i-sh.co.kr) for further information.