Gangnam-gu Mayor Jeong Soon-gyun Opposes Design Change of Hyundai Motor Building in Samseong-dong and Joint Tax Increase

Gangnam-gu Opposes Design Change Proposal at Hyundai Motor Global Business Center (GCB) in Samseong-dong on 20th, and Legislative Bill Increasing Joint Property Tax from 50% to 60% on 23rd

[Asia Economy Reporter Park Jong-il] Jung Soon-gyun, Mayor of Gangnam District, has recently shown a displeased attitude.

Mayor Jung expressed opposition to Hyundai Motor Group’s Samsung-dong Global Business Center (GBC) design change plan (originally one 105-story tower above ground → 2 to 3 towers of 70 stories) and also opposed the Local Tax Basic Act amendment bill proposed in the National Assembly on the 23rd, which aims to increase the proportion of property tax joint taxation from the current 50% to 60%.

On the 20th, Mayor Jung strongly opposed the design change plan for the new construction project of the Samsung-dong Global Business Center (GBC), which Hyundai Motor Group (hereafter Hyundai) is reportedly reviewing.

Above all, he stated, “The construction of the GBC is a future investment project driving the national economy and a symbol for the next 100 years,” and insisted, “It must be built according to the original plan.”

He emphasized that Gangnam residents, including local residents and merchants in the Samsung-dong area who have endured sales declines for the past six years due to various regulations, are also opposing the design change plan and showing signs of a petition movement.

According to the basic and detailed design plans for the GBC, aiming for completion in 2026, a total of five facilities will be built on the former Korea Electric Power Corporation site (74,148㎡), including one 105-story tower above ground, one building for accommodation and office facilities, and exhibition, convention, and performance halls.

However, Hyundai is reportedly reviewing a design change to build 2 to 3 buildings of 70 stories instead of the originally planned 105-story tower, citing investment effects and cost reduction.

The GBC is the core of the International Exchange Complex District, a key development project of Seoul City that integrates the Yeongdong-daero complex development and the Jamsil MICE (Meetings, Incentives, Conferences, and Exhibitions) complex.

Recently, with the extension of the SRT (high-speed rail) from Suseo Station to the Samsung Station Complex Transfer Center becoming possible, the largest underground city in Korea, equivalent to 35 Jamsil Baseball Stadiums, is expected to be built, connecting the GBC, COEX, and Yeongdong-daero underground spaces.

At the time of land purchase in September 2014, Hyundai Honorary Chairman Chung Mong-koo also stated, “This is an essential investment for the future and a project looking ahead 100 years.”

Mayor Jung Soon-gyun said, “The construction of the GBC, along with large-scale development projects in the Yeongdong-daero area, is expected to create 1.25 million jobs and generate an economic effect worth 268 trillion won,” and added, “Gangnam District and its residents strongly urge Hyundai to proceed with the GBC construction project according to the original plan for the future and economic development of Korea.”

Regarding this, there may be differing opinions on whether it is appropriate to oppose the project changes considering the management situation of a private company.

Alongside this, Mayor Jung opposed the proposal to increase the joint property tax rate, stating that setting the direction and improving the system to reduce financial disparities among autonomous districts should come first, and that raising the tax share without efforts to expand tax revenue is an irresponsible desk-bound legislation that shakes the financial foundation of autonomous districts.

The joint property tax system, implemented since 2008, is a system unique to Seoul where half of the property tax collected by each autonomous district is collected by Seoul City and then evenly redistributed to each district.

Increasing the joint property tax rate is evaluated to increase the districts’ dependence on the city, reduce their self-sufficiency, lead to downward leveling, and hinder the development of local autonomy.

Since the implementation of joint taxation, Gangnam District has borne a financial loss exceeding 200 billion won annually but is the only one among the 25 district offices that has never received the Seoul City general adjustment grant.

Mayor Jung said, “We can accept the current joint taxation rate of 50% in terms of supporting the financial difficulties of northern districts, but anything beyond that is an unreasonable demand that threatens the existence of basic local governments,” and added, “We will strongly oppose it in solidarity with other districts until the amendment bill is withdrawn.”

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