Post-Sale for Shops and Offices to Start Next April

The post-distribution system for shops and offices will start next year in April.

When the post-distribution system is introduced, many fraud distributions and delayed move-ins will disappear, but distribution prices will increase somewhat.

As the proposal for laws related to the distribution of buildings regarding details for the distribution form of shops and other buildings passed at the plenary session of the National Assembly on September 23, the Ministry of Construction and Transportation (MOCT) announced on Friday that after going through a public notification period, the system will be applied beginning next April.

This new law states that large buildings such as shops and offices that are over 3,000 square meters (about 909 pyong) must go through a filing process at the city or county office before distribution when two-thirds of the frame construction is finished.

However, if a trust contract for the land and fund management concludes with a trust company or a guarantee deposit (one to three percent of the construction cost) is paid to a guarantee insurance company, the distribution can be done simultaneously with the notification of groundbreaking construction.

Also, before filing for the distribution of large buildings, not only must land ownership be secured, but also the status of a construction license and land ownership must be clearly stated in the distribution ads.

If violated, a three-year penal servitude will be sentenced, a fine of 0.3 billion won or less will be imposed.

Jang Gi-chang, head of the architecture division at the MOCT, said, “If the post-distribution system is carried out, a situation like the ‘Good Morning City,’ where many victims resulted from a distribution where land was not even secured, will not happen again.”

Meanwhile, there will be some exhibition executions for post-distribution for apartments this year, and will gradually be introduced in 2007.

Kwang-Hyun Kim kkh@donga.com