Methods for Decreasing on Increased Factor’s Analysis of Incurred Expense in Stage by Housing Redevelopment Projects

As to the sluggish housing redevelopment projects (HRP), lots of problems have arisen; residential areas became slums and crime-prone districts, conflicts among residents of pros and cons for project got worse, improvement of living environment got limited. And they introduced the landscape houses maintenance project and residential environment management project through the amendment of Environment Renewal Development Act in 2012 so they formulated the ground for the release of zoning. However, the possibility of a problem with sunk cost is increasing as they only made it possible to cancel zoning without certain measures for processing of input costs when it is canceled. It brings the conflict associated with the calculation of sunk cost since they do not have a clear basis to measure the amount which employed in the combination and committee during the progress of HRP and they claim discrepant sunk costs per each district. In this study, therefore, the criteria for estimating reasonable sunk cost will be provided and the resolution of the problems expected in the process of calculating sunk costs will be suggested.