Gangnam-gu District Mayor Kim Hyun-gi's pragmatic approach to governance is drawing fresh attention.
Gangnam-gu plans to overhaul its procedures for changing the designated use of commercial units in reconstructed apartment complexes, aiming to prevent storefronts from sitting vacant after residents move in.
Under the new approach, shop owners will be able to apply for a use-change approval before the "transfer notice" — the administrative step that finalizes ownership — is issued, provided they meet certain requirements. The move is designed to address a problem in which commercial units in newly completed reconstruction complexes have been unable to open for months or more.
After a reconstructed apartment complex receives its completion certificate, finalizing the transfer notice and completing ownership registration can take anywhere from several months to more than a year. During that period, no building register is created, which has blocked use-change applications for commercial units. A clinic or hagwon seeking to open in a space designated as a neighborhood living facility, for example, must first obtain a use-change approval — but if the transfer notice is delayed, the shop may remain shuttered even after residents have moved in. Owners face prolonged revenue gaps, and residents are left without convenient amenities.
To resolve this, the district will take proactive administrative steps to allow use-change approvals for commercial units after completion but before the transfer notice is issued.
Applications will be accepted through the reconstruction association on behalf of shop owners, whose ownership will be verified using association membership certificates and pre-sale contracts. Because no building register yet exists, the district's housing division will maintain a separate ledger tracking approved use changes and coordinate with relevant departments to process them. Once the transfer notice is issued and a building register is created, the approvals will be formally entered into the official record. To prevent a backlog from applications flooding in at once, the district plans to work with reconstruction associations to stagger submissions.
The new system will be applied first to commercial units at the DH Firstier Ipark complex in Gaepo-dong. The complex received a temporary occupancy permit in November 2023, with the transfer notice scheduled for late 2026. It contains 321 commercial units, and applications will be accepted from owners wishing to change their unit's designated use. Gangnam-gu currently has 53 reconstruction projects underway, and the district plans to extend the same approach to other completed complexes still awaiting their transfer notices.
"There is no reason residents should move into their apartments while shops are forced to stay closed for months simply because paperwork has not been finalized," Kim said. "We expect this measure to help commercial districts in reconstructed complexes get up and running much more quickly."
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