[Economy PICK] The end of the vertical expansion remodeling work for 'Korea'

[Anchor]
This is the second keyword. Let's watch the video.

Where has reporter Choi been?

[Reporter]
Yes. I went to an apartment remodeling site in Seoul where last-minute construction is in full swing.

Unlike reconstruction, remodeling refers to an extension while maintaining the main structure of the existing apartment.

The place I've been to is the first vertical expansion remodeling complex in Korea, and I was aiming to move in March next year.

First of all, the existing complex was horizontally expanded to increase the equilibrium, and three floors were raised again by vertical expansion.

Here, vertical expansion is a remodeling method that raises the number of existing apartment floors.

This will allow us to extend up to 15% of the existing number of households.The standards applied to


structure safety are also stricter, and the first and second safety reviews should be conducted by specialized agencies.

In response, the construction company explained that it secured safety through basic reinforcement, such as thickening the existing wall.

In fact, when I looked at the interior of one vertically expanded furniture, the living room was wider than before based on the horizontal extension, and the ceiling was rather higher than the horizontal extension furniture.

[Anchor]
There will be people who are unfamiliar with remodeling rather than reconstruction. Then, in the case of remodeling, what are the strengths and weaknesses compared to reconstruction, and what are the current status?

[Reporter]
Yes. The government and construction companies generally prefer reconstruction to remodeling, which is an obstacle to the project's promotion.

It is also true that remodeling is a policy priority over reconstruction due to its relatively low business feasibility and small housing supply effect.

Compared to reconstruction, there is inevitably a limit to changing to the state-of-the-art apartment structure or creating community facilities.

However, the advantage of remodeling is that it can reduce carbon emissions as it is possible to quickly maintain old houses and make the most of existing resources compared to reconstruction.

In this regard, let's listen to the construction company officials.

[Lee Won-sik / Head of Sales for POSCO E&C Remodeling: Remodeling is 15 years from the completion of the project. Therefore, remodeling can improve the quality of life faster than reconstruction, such as replacing various aging facilities, expanding parking lots, expanding communities, improving safety performance, and reorganizing spaces that fit trends.

[Anchor]
Some people are calling for institutional support to revitalize remodeling, so what parts are you suggesting?

[Reporter]
Yes. Remodeling is the only alternative for apartment complexes that are difficult to reconstruct due to the high floor area ratio.

As of the end of September, there are 155 complexes that are being remodeled nationwide, and 121,500 households in terms of generation.

The industry is asking the government to actively ease regulations related to remodeling as it has a housing supply effect.

Above all, it seems urgent to find a balance point in the direction of activating the remodeling business while ensuring important safety.

We will conclude this topic with the expert opinion that a prospective system review is needed.

[Park Hap-soo / Adjunct Professor of Konkuk University Graduate School of Real Estate: In the future, complexes with higher floor area ratios than full reconstruction will inevitably be remodeled, and the trend will inevitably be remodeled. In order for the remodeling project to be activated, a prospective institutional review is needed to promote the project by introducing various designs such as the demolition of the bearing wall through the expansion of the floor area ratio, the reconstruction of the floor space, and the underground parking lot..]