When reconstruction comes up, the first thing people talk about is the amount of the contribution.
Stories such as, “I heard our complex will be 2억,” or “I heard the complex next door will actually get money back,” circulate in group chats.
But the point at which those figures are actually determined comes much later.
3-line summary
1. Reconstruction contributions are finalized at the management and disposal plan stage.
2. The contribution is the member-unit sale price minus the rights value.
3. All figures circulating before then are estimates.
2억 2,000만 원, and Refunds
Let’s use Bundang as an example. These are estimates reported in the media.
| Complex | Terms | Estimate |
|---|---|---|
| Gumi-dong Kkachi·Hayan Village | Exclusive area 59㎡ → 84㎡ | Contribution of approximately 2억 2,000만 원 (KRW 220 million) |
| Sunae-dong Park Town | Moving back into a unit of the same size | Contribution of 1억 5,000만~2억 원 (KRW 150 million–200 million) |
| Bundang Pilot Complex | — | A projected refund instead |
They are in the same neighborhood, yet the outcomes point in completely opposite directions.
What matters here is where these figures came from. They are not amounts finalized and officially notified by an association; they are calculations run by groups preparing for reconstruction under assumed conditions.
The Contribution Is One Subtraction
The calculation itself is not difficult.
Subtract the value of the current home from the price of the new home. The remaining amount is what you pay; if there is a shortfall, you receive money back.
The “value of the current home” is called the rights value. It is, in turn, calculated by multiplying two things.
The appraised value of the home currently occupied is multiplied by a factor called the proportional rate.
The proportional rate indicates how much value remains from the project. It is calculated by subtracting construction costs and various expenses from total proceeds expected from building and selling new units, then dividing that amount by the total value of the property originally owned by association members.
If the proportional rate exceeds 100%, it means the original property is being valued higher than before. This is why talk of refunds has emerged for the Bundang Pilot Complex. Its estimated proportional rate came out in the 112% range.
So When Is It Finalized?
The issue is that none of the figures used in that calculation are fixed.
Construction costs are determined at the time of contracting, and can still rise or fall before construction begins. General-sale prices depend on the market and review process at the time of sale. Appraisals have not even been conducted yet.
The point when all of these values are finalized is the approval of the management and disposal plan stage. This is the procedure for determining who receives which home and how much more each person must pay, then obtaining approval from the city, county, or district office.
Until then, no matter how sophisticated it may appear, the figure rests on assumptions.
Where Is Our Complex in the Process?
The overall process is as follows.
| Stage | Details |
|---|---|
| Reconstruction diagnosis | Determines whether the property is in a condition that permits rebuilding |
| Designation as a maintenance zone | The local government designates it as an area eligible for the project |
| Approval of the promotion committee | An organizing body preparing to form an association |
| Approval to establish the association | A project entity is created |
| Approval of the project implementation plan | Approval of what and how to build |
| Approval of the management and disposal plan | ← This is where the contribution is finalized |
| Relocation · demolition · construction start | |
| Completion · move-in |
The two stages shown in bold are turning points.
Establishing an association requires consent. It must receive approval from at least 4분의 3 of all owners in the apartment complex and at least 4분의 3 by land area, as well as a separate majority in each building. If one building unites in opposition, the process stops there.
From approval of the project implementation plan to approval of the management and disposal plan alone takes an average of 2년 반. This is why the entire process adds up to a period measured in decades.
One Part of the Sequence Changed Last Year
Reconstruction procedures changed slightly starting on 2025년 6월 4일.
Previously, a complex had to pass a safety inspection before it could move on to the next stage. Many complexes remained stalled at this gate for years.
The revised law changed the name to “reconstruction diagnosis” and moved the deadline for passing it to before approval of the project implementation plan. Apartment buildings more than 30년 old can now proceed with earlier stages before completing the diagnosis.
The provision requiring another diagnosis if approval of the project implementation plan was not obtained within 10년 after designation as a maintenance zone was also removed.
The overall timeline is expected to be shortened by at least about 3년.
What Is Happening in Bundang Now
Under the special law for 1기 new towns, the Pilot Complex, Yangji Village, Saetbyeol Village, and Mongnyeon Village were designated first in 2024년 11월. Together, the four locations account for more than 2만 households (more than 20,000 households).
In 7월 last year, three of them entered the association-establishment approval stage for the first time in Bundang.
When Seongnam City accepted applications for the next target zones this year, 50 zones and approximately 6만 6,000여 households (about 66,000 households) applied. That is 5.5배 the target set by the city for next year.
When this volume moves forward all at once, the question follows of whether roads and railways can handle it. This is the background to Seongnam City’s decision to redraw its transportation plan by 2027년.
What to Check When You Hear a Figure
Where did the figure come from? Is it an official notification from the association, a simulation by a preparatory committee, or simply something circulating?
At what stage was the figure produced? It can change before approval of the management and disposal plan.
What unit size is being exchanged for what unit size? Even within the same complex, the difference can reach the 억-unit range, depending on the terms.
What assumptions are being used for the floor area ratio and public contribution requirements? These two factors determine project revenue.
The number people most want to know in reconstruction discussions is the one that comes out the latest. Estimates fill the gap in the meantime.
That does not mean estimates are useless. But whenever you hear one, ask just one question along with it: “At what stage was that figure produced?”
References
- Seoul Economic Daily “Even Bundang, said to be among the better cases, must pay 2억”…What to Do About Rising Contributions in 1기 New Towns
- New City Daily Bundang Pilot Complex Reconstruction Will Receive a “Refund,” Not a “Contribution”…Estimated Proportional Rate of 112.75%
- Financial News Bundang Reconstruction Fever Explodes…6.6만 Households Apply in Maintenance-Zone Proposals
- Housing Herald Standard Floor Area Ratios for 1기 New Town Reconstruction Disclosed…Bundang 326%
- EToday Aging Apartment Reconstruction Can Proceed Without a Safety Inspection…“Fast-Track Law” Clears the National Assembly
- Easy-to-Find Practical Law Information Reconstruction Project — Approval of the Management and Disposal Plan
This article explains the institutional framework and calculation structure and does not recommend the business feasibility or purchase or sale of any specific complex. For the contribution and procedures of an individual complex, please check notices from the relevant association or promotion committee and local-government announcements, and consult an expert for specific decisions.