The Seoul Metropolitan Government (hereinafter referred to as the SMG) will remodel non-dwellings such as outdated gosiwons (facilities packed with tiny one-room units), inns, and motels into share houses which are a combination of private residential space and community space and provide them to single-person households of young people up to six to ten years at 80% of the market price. The SMG will supply a total of 290 remodeling-type social houses this 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)

Last year, the SMG started the Remodeling-type Social Housing Project for the first time in Korea in order to reduce the burden of living on young people. It is a public-private mix project for both building owners who have difficulty finding tenants due to the economic recession and outdated buildings and young people who are looking for houses at reasonable prices.
 
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.).

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.

The Director of the SMG Housing & Architecture Bureau Jeong Yu-seung said, "The new word ji-ok-go (meaning semi-basement, rooftop house, and gosiwon) represents the housing problems of young people. To reduce the burden of living, the SMG has been developing and supplying a variety of residential models including remodeling-type social houses. We hope than many social business entities will participate in the project to resolve the housing problems of young people."