ever wonder why the 90+ year old Chungjung Apartment hasn't been demolished? learn the secrets behind the apartment complex, which has been targeted for reconstruction since the days of Park Chung-hee, and how a con artist's illegal addition prevented it from being rebuilt for decades.
meta description: The 100-year delay in the reconstruction of Chungjeong Apartment is due to an illegal five-story addition and land ownership issues. Learn the history of Korea's first apartment building and the lessons learned from its failed reconstruction.
contents
- the 90-year-old Chungjeong Apartment still standing
- the basic principle of rebuilding: land is everything
- the birth of Korea's first apartment, Chungjeong Apartment
- the grand scam of anti-communist father Kim Byung-jo
- the tragedy of the illegally expanded fifth floor and no land ownership
- problems Revealed by the Expansion of Chungjeong-ro
- the first reconstruction in 100 years
- three lessons from Chungjeong Apartments
the 90-year-old Chungjeong Apartment still stands
when you pass by Chungjeongno Station on Line 2, you'll see a unique building with green exterior walls. built in the 1930s, it was already designated as a maintenance project area in 1979, so it was already classified as an old building even under President Park Chung-hee.
but as of 2025, the building is still standing, untouched by demolition. despite the news of its disappearance into history every time, why hasn't this Japanese-era apartment building been reconstructed until now? The answer lies in the illegal addition of a crook.
the basics of reconstruction: land is everything
before we dive into the story of Chungjung Apartment, it's important to understand the basic principles of reconstruction. reconstruction is a game of land, not buildings. the building doesn't matter because it's going to be demolished anyway.
unit owners in an apartment building have an interest in the land in the complex. they borrow against that equity to tear down the old apartments and build new ones. the borrowed money is paid back by the new residents.
the new building has more units than the old one, so the existing owners take them and sell the remaining units to new residents to cover the cost. the new residents become sectionalized owners by taking a share of the land from the existing owners.
the key to all of these transactions is land. if you don't own the land, you have no business being in the rebuilding game. This was the fatal problem with the 5th floor of Chungjung Apartment.
the birth of Korea's first apartment, Chungjung Apartment
chungjung Apartment is considered to be the first apartment building in Korea. although there are earlier buildings, it is considered the prototype for Korean apartments because it was a communal house that each family owned separately.
it was built in the 1930s by the Japanese Mr. Toyota, and retains many unique features that are hard to find today. these include an interior courtyard located in the center of the building, a design style that was popular in Japanese-style buildings.
the massive brick chimney in the center is a remnant of the central heating system that provided hot water to the entire building. it is considered the prototype for modern apartments in that each unit had running water and a toilet at a time when communal restrooms were common.
the grand scam of anti-communist father Kim Byung-jo
the building was repurposed as a hotel, used as quarters by the US military government, and briefly occupied by the People's Army during the Korean War. After surviving the vicissitudes of history, the building was given to a man from Jeju Island named Kim Byung-jo for nothing.
kim claimed to have given all six of his sons to the country during the Korean War, a story that became nationally known and led to him being dubbed the Father of Anti-Communism. He was decorated by Syngman Rhee, and the US military was impressed enough to renovate the building and hand it over to Park Chung-hee.
the Park regime also gave Kim Byung-jo full control of the building, which was worth 500 million won at the time, or about 2 billion won in today's money. kim expanded and renovated the building and opened it as the Korea Tourist Hotel.
it wasn't long before it was revealed through a letter that Kim never had a son in the first place. He was rightfully arrested for defrauding the country during the military dictatorship, and the building was confiscated by the National Tax Service.
a tragedy with an illegal five-story addition and no landowner
the building was auctioned off and used as a hotel before the mortgagee, Seoul Trust Bank, took ownership and sold it to the public under the name Yulim Apartment. the problems began during Kim Byung-jo's ownership.
the fifth floor was built without going through the formal building process and was not assigned a land plot. Owners of the fifth floor without a land plot were not eligible to participate in the reconstruction.
after a public auction, the building was operated as a hotel, and Seoul Trust Bank acquired ownership, and the building was sold to the public as Yulim Apartments. The residents of the fifth floor legally moved in, but they were faced with the fatal problem of not having a lot.
the Chungjeongno Extension Project Reveals the Problem
it was in 1979 that this problem came to the forefront. construction was underway to widen Chungjeong-ro to eight lanes in front of the building, causing Chungjeong Apartments to be cut into the road.
normally, in this situation, a new building would be constructed with compensation for the land that was taken up by the road, but Chungjung Apartment had no land on the fifth floor. this was unacceptable to the residents on the fifth floor, who had been officially sold and moved in, but were about to be evicted overnight.
in the end, the last resort was to demolish only the front part of the building, so the front of Chungjung Apartment now looks like a section of cake cut with a knife.
residents who had lost parts of their homes began to flood into the common areas, occupying the hallways, stairwells, and the central hall, reducing the area of the central hall by two-thirds. living conditions had deteriorated in a building that should have been rebuilt long ago.
100 years in the making
chungjeong Apartment was nearly 100 years old before the project was finally realized. the Seoul Metropolitan Government's policy of preserving the building as a cultural heritage site was a bit of a stumbling block, but in 2022, a decision was made to demolish it.
in 2024, the redevelopment association was finally established, along with the surrounding area. it took 16 years after the formation of the promotion committee in 2008. while the establishment of the association suggests that some sort of agreement has been reached, it is not yet publicly known how the five-story site was organized.
the external environment hasn't been easy either. the project is showing signs of delay, as the selection of the general contractor has been bidding several times. the small scale of the project, coupled with the downturn in the construction industry, makes it difficult to find a contractor.
nevertheless, the reconstruction of Chungjung Apartment cannot be postponed any longer. last year's Seodaemun-gu safety inspection gave the building an E grade, which is subject to immediate demolition. Seodaemun-gu is planning to support rental housing or temporary housing within the year, and the administrative support is expected to be substantial.
three lessons from Chungjung Apartment
there are three main lessons to be learned from the Chungjung Apartment case.
first, rebuilding should be done when the opportunity arises. the Chungjeong Apartments project was left to drift for more than 40 years after the failed settlement in 1979. 1979 was the year Eunma Apartments was completed. as a result of the missed opportunity to rebuild due to the failed settlement, the newly built apartments had to spend time in a dilapidated state until they were in dire need of rebuilding again.
secondly, land is key in the revitalization business. if the maintenance project is delayed for decades, there is basically a problem with the land. seosomun Apartment stands on top of Bokgae Stream, and Ichon-dong Zhongshan Bum stands on top of Siyuji. the problem of religious facilities, a common obstacle in the early stages of redevelopment, is also a land problem. landed housing is also bound to have problems because it starts with people without land, which is why you should look at the land, not the building, when buying real estate.
third, land-lease apartments should be approached with caution. one of the best cases of the future of land-leasebacked apartments is the case of medium-sized cities. this is when the cooperative buys the land and rebuilds it, increasing the share by the cost of the land purchase.
it is also possible to rebuild based on ground rights, but rebuilding is a land game. you need to build a new apartment with pure capital, and even if you consider the general distribution, you need to be prepared for a substantial share. Since you can't pledge the land as collateral, it's difficult to get a PF loan, and it's difficult to gain business momentum.
frequently Asked Questions
Q1. Why is Chungjung Apartment called the first apartment building in Korea?
A1. Chungjung Apartment was built in the 1930s and was the first apartment building in Korea to be built in the form of a communal house owned separately by each family. It is the prototype of modern apartments with running water and toilets in each unit and a centralized heating system.
Q2. Why was the 5th floor of Chungjung Apartment not allowed to participate in the reconstruction?
A2. The 5th floor was not assigned a lot because a person named Kim Byung-jo illegally expanded the 5th floor while converting it into a hotel. Since the reconstruction is based on the lot, the owners of the 5th floor without a lot were not eligible to participate in the reconstruction.
Q3. When will the reconstruction of Chungjung Apartment be completed?
A3. The redevelopment association was established in 2024, but the project schedule is uncertain due to the bidding process for the contractor. however, it is expected to proceed with administrative support as it has been classified as an E-grade in the safety diagnosis and is subject to immediate demolition.
Q4. Why is it difficult to reconstruct land-rented apartments?
A4. Since land-lease apartments are rented without owning the land, it is difficult to obtain a PF loan using the land as collateral. The cost of reconstruction must be funded by the project itself, which greatly increases the cost and makes it difficult to gain momentum.
Q5. Why is land equity important in reconstruction?
A5. Reconstruction is a way to build a new building by borrowing a loan using the land as collateral. the newly built apartments are sold to cover the cost, and the new residents receive a share of the existing owner's equity. if you don't own the land, you can't participate in any of these processes.
closing thoughts
chungjung Apartment is a prime example of the importance of land stakes and the difficulty of rebuilding agreements. when considering real estate investment or participation in reconstruction, it's important to check the land rights before the building's appearance or current value.
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