Jang-Hoon Seo, a former basketball player / Photo = Yonhap News
[아시아경제 최은영 기자] It is known that Seo Jang-hoon, a former basketball player, is in danger of flying billions of dollars.
On the 15th of last month, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced eight candidate sites for the first pilot project for public redevelopment.
Eight’public redevelopment projects’ with the public participation in developing congested maintenance areas in Seoul are Heukseok 2 in Dongjak-gu (1310 households), Yangpyeong 13 in Yeongdeungpo-gu (618 households), Yangpyeong 14 (358 households), and Yongdu 1-6 (919 in Dongdaemun-gu) Furniture)·Sinseol 1 (279 households), Bongcheon 13 in Gwanak-gu (357 households), Sinmun-ro 2-12 in Jongno-gu (242 households), Gangbuk-gu 4 (680 households), etc.
According to media reports such as Daily Sports, the problem is that Seo Jang-hoon’s building is located in Heukseok District 2, Dongjak-gu, one of them. Heukseok District 2 Redevelopment Promotion Committee applied for the’Public Redevelopment Competition’ and it was selected.
In 2005, Seo purchased the Heukseok-dong building with 2 basement levels and 7 floors above ground. At that time, the purchase price was about 5.8 billion won, and now it has risen to about 12 billion won.
Seo’s own Heukseok-dong building in Seoul / Photo = Online community capture
However, when the redevelopment project begins, the existing building has no choice but to be demolished and rebuilt. Seo’s 12 billion buildings are also inevitable to be demolished.
Building owners like Seo can later sell new apartments or shops. However, since one person cannot receive multiple cards, the rest must be settled in cash.
Another problem is that they are rewarded with appraisals, not market prices. If this happens, Seo Jang-hoon will not be recognized for the value of 12 billion won and lose billions of won. If you receive compensation with the appraisal amount, you lose much more than the market price, because public redevelopment is a policy that focuses on supply expansion rather than a policy that meets market interests.
Seo is reportedly receiving a monthly rent of 30 million won in the Heukseok-dong building. If the appraisal price, not the market price, is reflected, it is difficult for the lessor to compensate for the loss of rental income. Since it takes 2-3 years to complete the redevelopment, rent loss is expected to incur about 500 million won.
Rented merchants are entitled to partial cash compensation in accordance with the Urban and Residential Environment Improvement Act, but landlords do not receive rental compensation at all.
In 2014, Seo Jang-hoon appeared on MBC’s’Radio Star’ and revealed his beliefs about the rental business. /Photo = MBC’Radio Star’ broadcast screen capture
Meanwhile, Seo Jang-hoon appeared on a broadcast in 2014 and said, “I think the rental business is the fruit of a basketball life for 30 years. Isn’t this something I’ve stolen from or something I’ve done wrong? I hope that I can become a good rental company that fits social justice.” He became a hot topic because he was known as a’good building owner’ who rents at a lower price than the surrounding market.
In March last year, they also participated in a rent-cutting campaign for small businessmen who were hit by the corona 19 outbreak. He provided 10% reduction in rent for two months to tenants in the restaurant business in three buildings in Seocho-dong, Dongjak-gu, Dongjak-gu, and Seogyo-dong, Mapo-gu, which he owned.
Intern reporter Choi Eun-young [email protected]