Raemian One Bailey in Banpo-dong, Seocho-gu, Seoul, is frequently cited in the industry as a prime example of what integrated redevelopment can achieve. The project combined two complexes — Shinbanpo 3rd (1,140 units) and Gyeongnam Apartment (1,056 units) — into a single mega-complex of 2,990 units. Maple Jai (3,307 units) in Jamwon-dong, also in Seocho-gu, is another case where multiple complexes — including Shinbanpo 8th through 11th, 17th, Nokwon Hanshin, and Beni House — were merged and redeveloped together.
The two projects share a notable commonality. Complexes of similar size and scale voluntarily joined forces and coordinated the methods for settling profits and costs in advance, before the project began. "When you look at complexes that have succeeded in integrated redevelopment, they share the common trait of having reached amicable agreements among the participating complexes first," said Kim Je-kyung, director of Toomi Real Estate Consulting. "They were able to unify the projects because they had sorted out potential sources of conflict in advance."
The key mechanisms Raemian One Bailey used to reduce friction between complexes were the independent settlement system and in-place redevelopment. The independent settlement system refers to a method in which multiple buildings within a single project zone separately calculate and settle development profits and project costs. One Bailey applied this method on a complex-by-complex basis, clearly separating financial interests. In addition, it adopted the in-place redevelopment principle, under which existing residents receive priority assignment to new units closest to their original locations after redevelopment. This preempted conflicts between complexes over relocation and the assignment of buildings and unit numbers.
The strong drive of the union cannot be overlooked in the swift and smooth completion of the project. With the interests of multiple complexes intertwined, there were many issues to coordinate, but the momentum pushing the project forward was equally strong. Raemian One Bailey took just seven years and 10 months from the establishment of its union to the completion of move-ins, a result widely credited to the union's leadership in resolving numerous conflicts. Han Hyung-ki, the union chairman nicknamed the "star chairman," is credited with successfully completing the integrated redevelopment without losing his will to execute, even amid a string of controversies large and small. "It may look rough around the edges, but when it comes to mediating conflicts, the union-led approach can sometimes be more effective," an official in the redevelopment industry said.
