The biggest news story in January 2022 was the collapse at Hwajeong I-Park in Seo-gu, Gwangju. The outer wall of the new apartment collapsed while under construction, and the investigation revealed that the cause was poor construction by the construction company. Hence, voices are emerging that the pre-sale system, which is currently a common sale system in Korea, should be abolished and a post-sale system should be fully introduced. Under the pre-sale system, consumers check a model house before construction and buy apartments that will be completed two to three years in the future. This system has the advantage of low financial burden on the builders, as they can fund their construction through early sales. Conversely, a post-sale system is a system in which after about 60% to 80% of the total process is carried out, the consumer directly checks it and proceeds with the sale. Those who insist on the full introduction of the post-sale system argue that the post-sale system can solve problems caused by pre-sale systems such as poor construction and guarantee consumer protection. However, some argue that the post-sale system could increase the financial burden on construction companies and eventually cause adverse effects of rising sale prices. Let's learn more about the positions of both sides.

As poor construction and rising of apartment prices continue to arise under the pre-sale system, there is a demand for the full introduction of a post-sale system. Roh Woong-rae, a member of the Democratic Party of Korea, also insisted on introducing the post-sale system, saying, "Now we need to convert the supply of supplier-centered housing into a consumer-centered post-sale system to remove price bubbles and supply better quality apartments." The post-sale system is said to be a system that further guarantees consumers' right to know what they are buying. It is also mentioned as a measure to solve the problem of poor construction and fraud caused by the pre-sale system, soaring apartment prices, and apartment price bubbles. It is necessary to promote the full introduction of a post-sale system that can solve various problems caused by the pre-sale system.

           First, the pre-sale system is an unequal contract for consumers. The pre-sale system refers to a method of using the purchase payments for construction costs by proceeding with the sale before actually building an apartment. If the sale system is adopted in this way, a contract is established before the apartment is built, so consumers cannot know the status of the apartment being sold to them. In addition, if problems such as poor construction or defects occur after moving into the completed building, consumers have no choice but to move in or cancel the contract, often with heavy penalties. In particular, people who sold their existing homes or are currently on a lease or monthly rent are placed into the situation where they must move in even if they do not want to.

           In addition, these apartment defect accidents are gradually increasing. In fact, according to data presented by the Ministry of Land, Infrastructure, and Transport's defect review dispute settlement committee, the number of defection cases in apartments and other houses has reached 4,000 per year over the past five years, and in 2021, surpassed 7,400. As apartments emerge as a means of asset growth beyond residential spaces, there are also some situations in which poor construction and defects are covered up. On the other hand, the post-sale system guarantees consumers' right to know and better choose by allowing consumers to directly check the condition of the apartment as the contracts are signed after the apartment is almost fully built or even after completion. It may be difficult for ordinary consumers to closely grasp whether an apartment is poorly constructed. However, at least if an accident occurs during the construction process, it is unlikely that ordinary consumers will suffer property damage under the post-sale system because it is before the actual contract. In fact, Seoul Housing & Communities Corporation (SH) President Kim Heon-dong also mentioned, "If the post-sale system is introduced, it has not yet been supplied even if an insolvent disaster occurs, so there is no damage to citizens' property. The damage will be carried by suppliers or contractors." The post-sale system is a system that further guarantees the rights of consumers.

           Second, the post-sale system can be a solution to poor construction and fraudulent distribution. Under the pre-sale system, consumers cannot directly check apartments in the housing market, but only look at model houses and sign contracts. However, if the contractor tries to reduce construction costs it could lead to poor construction. In this case, the consumer finds a defect after moving in. In addition, there may be cases where the structure is ridiculously different from that of the model house, or the construction company refuses to disclose the cost and type of the materials used, even if they used low-priced materials. On the contrary, under the post-sale system, a contract can be established only when a good product is presented that can satisfy consumers. Eventually, the contractor will strive to complete the apartment in good condition, and management and supervision will naturally be strengthened. S.H. President Kim Heon-dong said, "If the post-sale system is carried out, there will be no problems due to insolvency such as Gwangju I-Park, and excessive construction will not be carried out in the winter due to the tight situation." On the other hand, for this reason, supporters of the pre-sale system argue that the full introduction of the post-sale system puts a lot of burden on the contractor, but it is true that people say the contractor, not the consumer, should be morally responsible for the poor construction.

           Third, the post-sale system can alleviate the problem of soaring apartment prices. Under the pre-sale system, apartments are also used as a means of speculation often called “Lotto Apartments,“ because the price of the house tends to rise sharply for about two to three years after the sale is made from before moving in. If the ownership of a lot is used as a means of wealth speculation, the profits from the sale will be reflected in the price, and those who really need the apartment will bear the price bubble of the apartment. In addition, apartment prices could soar if the government strengthens and continues to tighten speculation control measures and real estate regulations, such as raising comprehensive real estate taxes and regulations on loans. In fact, the problem of soaring apartment prices and price bubbles has become a huge social problem. However, the post-sale system can curb consumers' short-term speculative demand because the housing market shifts to real users due to the short period between the sale and occupancy. Consumers directly check and then sign contracts for apartments to live in, not the model houses, so speculative demand reduces and overheating in the subscription market can be prevented. As a result, this can lead to apartment price stability. In July 2020, Kim Hak-ryul, head of the real estate research institute SmartTube, said, "The biggest advantage of the post-sale system is that the real value of the apartment and the sale price are closest, which can stabilize the real estate market. The controversy of price bubble will also disappear."

           As apartment sales are directly related to people’s lives, discussions on the pre-sale system and the post-sale system must proceed. In particular, the post-sale system is meaningful that it further guarantees consumers' right to know what they are buying, and can be used as a solution to problems such as poor construction, fraudulent distribution, and soaring apartment housing prices caused by the pre-sale system. In addition, most OECD countries use a post-sale system. The Korean government also needs to consider the full introduction of the post-sale system through active discussions by referring to overseas examples. The post-sale system that can alleviate and solve various problems caused by the pre-sale system should be fully introduced.