Development of Former Yangjae Freight Terminal Site... Growing Conflict Between Seoul City and Harim

Due to conflicts over floor area ratio and more, no groundbreaking for 4 years and 6 months

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] The conflict between Seoul City and Harim over the development of the former Korea Cargo Terminal site located in Seocho-gu, Seoul, is deepening. Harim Industry has planned to build a 70-story building, but Seoul City, centered on the Urban Planning Bureau, is strongly opposing it. Recently, Seocho-gu has also opposed Seoul City's plan to change the project, escalating the dispute into a conflict between the city and the district.

According to industry sources on the 9th, the site where Seoul City and Harim are at odds covers an area of 94,949㎡ (about 28,000 pyeong). Harim purchased it in 2016, and in the same year, it was selected by the Ministry of Land, Infrastructure and Transport as a 'Pilot Urban High-tech Logistics Complex' (Do-cheomdanji). However, Harim has not even broken ground for four years and six months since then. This is because Seoul City and Harim have differing views on the basis for applying development standards to the site.

Harim's position is that since the project is reflected in the national plan and promoted by the government, development should proceed according to the 'Act on the Development and Operation of Logistics Facilities' (Logistics Facilities Act). In line with this, Harim submitted a letter of intent to Seoul City last August, stating its plan to develop with a floor area ratio of 799.9%. The site is designated as a commercial area, where a maximum floor area ratio of 800% is theoretically possible.

However, Seoul City insists that the site must be developed according to the city's urban planning. Seoul City stated, "Large-scale sites around Yangjae IC have been consistently managed with a permitted floor area ratio of 400% or less for over 15 years, and this project must comply with that standard as well."

Harim expresses reluctance, saying that applying a floor area ratio of 400% does not guarantee profitability. A Harim official said, "The Ministry of Land created incentives to introduce logistics infrastructure in the expensive urban area, but even reflecting 40% of the total floor area as an R&D center as requested by the city already results in an unprofitable structure," adding, "If the floor area ratio incentive is also restricted, it basically means we should not proceed with the project."

Nevertheless, Seoul City remains firm, citing traffic congestion in the area and fairness with surrounding sites as reasons. Recently, Seoul City announced a plan to designate the site as a special planning district, limiting the permitted floor area ratio to 400%, which sparked opposition from Seocho-gu, calling it "an arbitrary abuse of discretionary power."

A Harim official said, "The 800% floor area ratio is not finalized. It will be determined through review stages including environmental impact assessments, traffic impact assessments, and traffic measures," adding, "We are just asking to proceed with the review process, but Seoul City is blocking the project by raising concerns even before the review takes place."

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