Democratic Party's Greenbelt Release Impossibility Theory Emerges... Urban Development Theory Including Yongsan Depot

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] Democratic Party lawmakers are voicing opposition to lifting restrictions on greenbelt areas. Although opinions to lift the restrictions have emerged from the Blue House and others, they argue that the supply effect is uncertain and it could rather act as a factor causing housing price instability. Instead, the opinion is that it is preferable to find usable land within the city and develop it with high density, so the possibility of lifting the greenbelt in the short term seems low.

On the 20th, Democratic Party lawmaker Lee Nak-yeon told reporters, "We must be extremely cautious about touching the greenbelt," adding, "The priority should be increasing supply in areas with high demand. For example, it is proper to first examine whether there are ways to utilize vacant spaces, high-density development including easing floor area ratios in urban areas, utilizing neighborhood living zones or quasi-residential zones, or more flexibly allowing residential building construction within commercial districts."

He continued, "The concentration of everything in Seoul is one of the biggest concerns in the real estate market," and said, "We should vigorously re-push the relocation of public institutions and national facilities to local areas."

The day before, the ruling party, government, and Blue House reportedly agreed in a closed-door meeting to announce a real estate supply plan by the end of this month but decided not to include lifting the greenbelt. They are discussing it but do not see it as an immediate option.

On the same day, Go Yong-jin, the ruling party's floor leader on the National Assembly's Planning and Finance Committee, appeared on MBC Radio's "Kim Jong-bae's Focus" and responded "I think so" when asked if the possibility of lifting the greenbelt is low.

He said, "Personally, I oppose lifting the greenbelt, and even if it is unavoidable, it should be a last resort," adding, "As historical experience shows, it invites speculative demand and it is difficult to see an effect sufficient to stabilize housing prices."

Go said, "I understand that there was a proposal from the Blue House to move toward lifting the greenbelt. Some in the party agree, some in Seoul city and the party are cautious or strongly opposed, so it is not correct to say that the matter has been settled." He explained that the statement by Kim Sang-jo, the Blue House policy chief, on the 17th that "the ruling party and government have reached an agreement" was somewhat premature.

He added, "High-density development in urban areas is the right approach," and said, "There was talk about the Yongsan train depot, which could be a good alternative. About 50% of the areas where new towns or redevelopment have been lifted are adjacent to station areas, so if those parts are redeveloped or reconstruction speeds up comprehensively, the supply problem could be solved."

Democratic Party lawmaker Kim Du-kwan also appeared on KBS Radio's "Kim Kyung-rae's Strong Current Affairs" on the same day and said, "Even if the greenbelt is lifted and supply is increased, it will only be possible to move in after four years. However, every time supply was expanded, housing prices rose and prices could not be controlled," emphasizing, "Now is the time to set the rules for real estate and establish principles." He also mentioned, "If a constitutional amendment is made, I hope it includes strengthening citizens' basic rights and introducing the concept of land publicness."

Opposition voices also come from first-term lawmakers. Democratic Party lawmaker Lee Yong-woo told Asia Economy in a phone interview, "If the greenbelt is lifted, a huge amount of land value will be released, which could rather act as a factor causing market instability," adding, "The right direction is to find and develop public development sites within the city." He is an economic expert who has served as COO of Korea Investment Trust Management after working at Hyundai Group and as CEO of Kakao Bank.

Democratic Party lawmaker Yang Yi-won-young, formerly of the Korea Federation for Environmental Movements, said, "If the greenbelt is to be lifted, there must be thoroughly verified justification, but looking at past cases such as the public housing projects, that does not seem to be the case," adding, "Even considering that Seoul's housing supply rate has exceeded 100%, the essence of the real estate problem seems to be more about unequal distribution rather than supply."

This content was produced with the assistance of AI translation services.