Total of 2 trillion won calculated assuming October 2035 completion, based on 4,326 members; long-term single-home owners eligible for up to 70% reduction
The preliminary reconstruction levy for the Eunma apartment reconstruction project in Daechi-dong, Gangnam-gu, Seoul has exceeded 460 million won ($339,000) per member on average. Gangnam-gu drew a line against overinterpretation, however, noting that the figure is an estimate based on an assumed 2035 completion date, not a finalized levy.
Gangnam-gu notified the Eunma Apartment Reconstruction and Improvement Project Association on Oct. 30 of a preliminary reconstruction levy totaling 2 trillion won, calculated across 4,326 members. The per-member average comes to 463.34 million won.
The figure was calculated based on materials submitted by the association and verified by the Korea Real Estate Board under the Act on the Recovery of Reconstruction Excess Profits.
The amount is a preliminary estimate premised on project completion in October 2035. The reconstruction levy is calculated based on excess profits — defined as the increase in housing prices at the time of project completion minus normal price appreciation and development costs. The final levy may change if housing prices, construction costs or other development expenses, or the project timeline shift.
Notably, the per-member average does not yet reflect reductions available to long-term holders. Under current law, members who qualify as single-home owners at the time the levy is imposed may receive reductions based on how long they have held the property: 10 percent for holdings of six or more years, rising to 50 percent for 10 or more years, 60 percent for 15 or more years, and up to 70 percent for 20 or more years.
The actual amount each member pays will therefore vary depending on the finalized levy, individual holding periods, and eligibility for reductions.
Gangnam-gu plans to fully inform association members of the difference between the preliminary and final levies, the levy calculation process, and the long-term holding reduction regime.
"Because the reconstruction levy is directly tied to members' assets, it is important to clearly communicate the difference between the preliminary figure and the final levy," Gangnam-gu District Mayor Kim Hyun-ki said. "We will provide thorough guidance so residents do not face unnecessary confusion, and we will closely monitor the progress of the project."
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