A report came in that a member who joined a local housing association and dreamed of owning a house had recently made an extreme choice while paying off debt.

He said he joined the union six years ago when he saw an advertisement saying that he could enter a new apartment at 40% cheaper than the market price.

He said that he could move in within three years, so he paid 120 million won for the 2nd and 3rd additional contributions, but the project continued to be sluggish with no progress.

In addition, there was not a single penny left in the down payment and contribution of the members of 15.4 billion won.

More than 180 confirmed members were recruited by this local housing association.

As a result of the coverage, this union only bought two lots of the land needed to build the entire apartment.

Nevertheless, it is reported in the settlement report that 8.1 billion won was paid to the agency as a commission, and 2.4 billion won was spent on advertising.

The union members believed that the union fee was entrusted to the trust company and would be managed well, but the union account had only been in a tin for four years.

The local housing association system, which started in 1977, is less complicated than the redevelopment or redevelopment process, and has the advantage of reducing the developer's profits, land finance costs, and other costs.

However, only 17% of the 730 regional housing associations formed from 2000 to this year succeeded in moving in.

In Seoul, the success rate is only 8.5%.

As the problem worsened, the National Assembly revised the related housing law in 2019 to significantly strengthen the conditions for approval of the association as well as the business approval.

Several complementary devices have been added to prevent further damage to members.

However, there is no significant improvement effect.

What is the reason why the local housing association is not an alternative to realizing the dream of owning a home for the common people as it was originally intended, but only causing great pain to its members?

This week's SBS <News Story> will cover the problems of local housing associations that are repeated even after the revision of the housing law, and focus on ways to reduce the damage to the homeless people. 

Keywords: member, housing association, ji-housing, house, news story, union, report, advertisement, secret, choice, debt, housing association system, apartment, housing, market price