Building Housing Resilience for the Vulnerable Amid Climate Challenges

In August 2022, Seoul—the Republic of Korea’s (ROK) capital and its largest city—experienced its most severe rainfall in 115 years, highlighting the Banjihas’ vulnerability to flooding. The event tragically claimed lives and caused economic losses estimated at $50 million.

The disparity between the average monthly rent of $800 in the Seoul Metropolitan Area and the average monthly income of $2,500 exacerbates the socioeconomic challenges residents face.

With approximately 200,000 Banjihas, comprising 5% of all households in Seoul as of 2020, it’s evident that a considerable portion of the population resides in these vulnerable dwellings. Marginalized groups, who are more likely to reside in Banjiha flats due to their significantly lower rental prices, face heightened risks exacerbated by climate change.

One of the Banjiha residences before it was transformed into a multifunctional space. Photo: Seongdong-gu District Office.

Banjiha represents a unique facet of the ROK’s historical context. It originated in the 1970s when national regulations mandated basement spaces in new buildings for emergency bunkers amid heightened tensions and threats from North Korea. Initially intended for non-residential purposes, the housing landscape shifted during the 1980s due to Seoul’s burgeoning population and housing shortages. Regulatory changes in 1984 allowed basement areas to be converted for residential use, catering to low-income groups through affordable rents. This transition made Banjiha a significant part of Seoul’s housing stock, addressing pressing socio-economic needs.

The international spotlight on Banjiha intensified following the Oscar-winning film “Parasite,” which depicted societal disparities. However, the enduring socio-economic challenges facing Banjiha dwellers persist. Climate change exacerbates these vulnerabilities, with increasing frequency and intensity of heavy rains posing grave risks to Banjiha residents. Tragic incidents, such as entire families perishing due to flooding, underscore the urgent need for improved housing solutions.

Despite aspirations for better housing, marginalized communities grapple with exorbitant rental prices in Seoul, perpetuating their reliance on Banjiha. Addressing these multifaceted challenges demands an extensive approach that considers historical, environmental, and socio-economic factors shaping the Banjiha phenomenon.

The Seoul Metropolitan Government introduced the Comprehensive Measures for Residential Safety Net to address the challenges faced by Banjiha households. Key aspects include:

• Providing support to landlords and residents to transition away from Banjiha living.
• Offering landlords a transition period of 10 to 20 years to repurpose Banjiha spaces for non-residential use, aligning with the city’s long-term vision for urban development.
• Providing residents with alternative accommodation in public rental housing, with the city government covering Banjiha rents and all moving expenses. This approach ensures that residents have access to safe and secure housing while facilitating the gradual phase-out of Banjiha dwellings.

Key stakeholders in the project include the Seoul Metropolitan Government, Seoul Housing & Communities Corporation, landlords, Banjiha residents, and marginalized communities.

An innovative feature of the program lies in the adaptive reuse of Banjiha spaces. Rather than leaving these areas vacant, the Seoul Housing & Communities Corporation, a local enterprise dedicated to stabilizing residential conditions founded by the Seoul Metropolitan Government, purchases Banjiha properties on behalf of the government and converts them into multifunctional community spaces. These spaces serve various purposes, including storage for essential supplies such as calcium chloride and sand for winter weather, communal gathering areas for social interaction, and even innovative ventures like mushroom smart farms.

The transformation of Banjiha spaces addresses immediate housing needs and promotes sustainability and resilience within urban environments. By leveraging the unique characteristics of semi-basement areas, such as humidity and reduced natural light, the program demonstrates a creative approach to repurposing underutilized spaces for the benefit of the community.

Overall, the initiative illustrates a forward-thinking and holistic approach to addressing the complex challenges associated with Banjiha living, offering innovative solutions that prioritize safety, inclusivity, and sustainable urban development.

Since the introduction of Seoul Metropolitan’s Banjiha initiative in 2022, significant progress has been made in addressing the housing challenges residents face. Within a year, the Seoul Housing & Communities Corporation purchased 538 Banjihas and facilitated the relocation of 3,671 households to public rental housing, marking a tangible step towards improving living conditions for affected individuals.

The initiative has led to the creation of innovative solutions, such as the transformation of Banjiha spaces into productive assets. For example, in the Guro-gu district, collaboration with the local senior club resulted in establishing of a mushroom smart farm within a repurposed Banjiha space. This initiative not only generates income for elderly residents but also fosters community engagement and social interaction, demonstrating the potential for Banjiha transformation to yield positive outcomes beyond housing improvements.

A Banjiha space in the Guro-gu district is now a thriving city mushroom farm utilizing its natural humidity and light. Photo: Guro-gu District Office.

Success in addressing the challenges of Banjiha living hinges on several key factors:

• Government accountability and commitment. The Seoul Metropolitan Government’s proactive approach in implementing the Banjiha transformation initiative demonstrates strong leadership and effective governance in tackling complex socio-economic issues.
• Effective repurposing of Banjiha spaces. Converting these areas into multifunctional spaces, as demonstrated by initiatives such as the Guro-gu district mushroom smart farm, improves living conditions and fosters community engagement and economic empowerment.

Areas needing improvement include:

• Streamlining the process of purchasing buildings with multiple owners. Simplifying this process expedites the initiative’s implementation and broadens its potential impact on a larger scale, particularly in vulnerable communities worldwide. The initiative encountered challenges, particularly in cases where buildings have multiple owners. Purchasing such properties became complex, requiring the agreement of more than half of the owners, which can impede the smooth implementation of the program.
• Adjusting standards for purchasing properties. The purchasing price was calculated based on the national average price, which is a constraint due to the exceptionally high prices in Seoul compared to the nationwide average. This discrepancy may exclude some buildings from the initiative, which presents a significant obstacle.

Efforts are underway to address these challenges, including proposals to adjust the standards for purchasing old buildings with Banjiha, aiming to streamline the process and expand the initiative’s reach.

The proposal to consider alternative revenue streams, such as renting out storage spaces to citizens, presents an opportunity to generate income for the district while simultaneously meeting the community’s needs. This aligns with the growing demand for self-storage services and provides a practical solution to address both financial constraints and housing challenges.

Prioritizing community engagement and involvement throughout the planning and implementation phases is essential. Seeking input from affected residents ensures that initiatives are tailored to meet their specific needs and preferences, enhancing the likelihood of success. Fostering partnerships with local organizations and stakeholders can also facilitate resource-sharing and collaborative problem-solving, maximizing the effectiveness of interventions.

The success of Banjiha transformation initiatives rests on proactive governance, innovative approaches to space utilization, and community-centric strategies. By sharing experiences and lessons learned, stakeholders can refine their approaches and contribute to creating more inclusive and resilient communities globally.

Seoul Metropolitan Government.

Seoul Urban Solutions Agency.