Building capacity in redevelopment and reconstruction associations

The headquarters of the Korea Real Estate Board. [Korea Real Estate Board]
The headquarters of the Korea Real Estate Board. [Korea Real Estate Board]

The Korea Real Estate Board has partnered with the Daegu Metropolitan Government to launch a pilot "association operations consulting" program designed to strengthen the capacity of associations in the early stages of urban renewal projects. The initiative aims to move beyond reactive inspections — which focus on detecting problems after they occur — by providing advance expert guidance to improve transparency in association management and prevent delays in redevelopment and reconstruction projects.

The board announced Friday that the pilot program with Daegu will begin Monday, with applications for consulting open to associations nationwide at the same time.

Local governments have long supervised associations primarily through after-the-fact inspections that only engage once problems have already emerged. Concerns have consistently been raised that when such inspections result in criminal referrals or corrective orders, they can actually cause lengthy delays in urban renewal projects rather than resolve them.

In response, the board plans to use the pilot with Daegu — with which it signed an MOU on urban renewal project support in March 2024 — to refine the system before formally rolling it out to associations nationwide in July.

The consulting will be conducted by a dedicated expert group comprising Korea Real Estate Board staff, local government officials, lawyers and accountants, who will visit association sites directly to provide tailored advice. Key areas of guidance cover the full scope of association operations, including service contracts, administrative affairs, budgeting and accounting, and information disclosure. The board said it plans to continue monitoring progress and outstanding issues after each consulting session, with follow-up visits available as needed to maximize effectiveness.

To support the program, the board appointed 79 advisory committee members nationwide in May with the cooperation of the Korean Bar Association and the Korean Institute of Certified Public Accountants, and completed the formation of regional consulting groups to establish a systematic support framework.

Eligible applicants are associations for early-stage redevelopment or reconstruction projects established within the past two years or that have yet to select a contractor. Other associations that determine they need consulting during the course of their urban renewal projects may also apply. Application forms are available for download on the Korea Real Estate Board's website, and the board said it will review submissions and notify each association of specific visit schedules.

"Association management is a core factor that determines the success or failure of urban renewal projects, which makes it all the more important to provide professional support from the earliest stages," said Kim Nam-seong, a division head at the Korea Real Estate Board. "Building on the results of the pilot with Daegu, we will work to expand support for early-stage urban renewal associations nationwide, raise operational transparency, and continue our efforts to invigorate redevelopment and reconstruction projects."

Meanwhile, the Korea Real Estate Board is running a program called "Integrity Grand March," aimed at instilling a culture of integrity among its employees and spreading new values around ethical conduct.


hwshin@heraldcorp.com