Preliminary Subscription for 3rd Phase New Towns Announced... Concerns Over Main Subscription and Move-in Delays

Land Compensation Is Key, but Procedures Are 'All Stop'
Does Preliminary Subscription Only Give False Hope to Homeless Applicants?

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] As suspicions of land speculation involving the Korea Land and Housing Corporation (LH) spread nationwide, concerns are growing that the housing supply for the 3rd New Towns will face setbacks. Landowners are refusing to negotiate land compensation and demanding the complete withdrawal of the 3rd New Towns, effectively bringing the land compensation process to a halt alongside ongoing investigations. This has led to criticism that the preliminary subscription scheduled for July will be delayed or, if forced, will only give false hope to those without homes.

According to the Ministry of Land, Infrastructure and Transport on the 11th, the government plans to start preliminary subscriptions for the 3rd New Towns beginning with Incheon Gyeyang in July. Sequentially, Namyangju Wangsuk, Goyang Changneung, Bucheon Daejang, Hanam Gyosan, and Gwacheon will follow, with a plan to conduct preliminary subscriptions for 30,000 households by the end of this year. As concerns grew over project delays due to LH employees' speculation allegations, President Moon Jae-in personally stepped in, expressing determination that "there should be no setbacks in the supply measures."

However, despite the government's promises, market concerns have not disappeared. Even if the preliminary subscription, which has a strong reservation nature, proceeds as planned, it is expected to be difficult for the actual subscription and move-in to proceed according to the original schedule. The government anticipated conducting the main subscription 1 to 2 years after the preliminary subscription, with move-ins expected as early as 2025.

For these plans to proceed smoothly, above all, 'land compensation' must be seamless. However, the land speculation allegations involving LH employees in the development sites are directly linked to land compensation, and the compensation process is effectively stalled. Currently, among the 3rd New Towns, Namyangju Wangsuk, Goyang Changneung, and Bucheon Daejang have not even started negotiated compensation. Landowners in Hanam Gyosan, where the land compensation process had been underway, are completely refusing compensation for fixtures (facilities, warehouses, crops, trees, etc.) in protest against LH's unilateral compensation price setting.

Representatives from various regions and residents belonging to the National Solidarity Council for Public Housing Districts (Gongjeonhyeop) held an emergency press conference on the 10th in front of the land suspected of speculation by LH employees in Gwarim-dong, Siheung-si, Gyeonggi Province, condemning LH Corporation and urging the complete cancellation of the 3rd New Town public housing districts. / Siheung - Photo by Kim Hyunmin kimhyun81@

There are even signs that no compensation agreements will be made until investigations into speculation by LH employees and local government officials are completed. The 'National Solidarity Council for Public Housing Districts (Gongcheonhyeop),' composed of landowners from 65 public housing districts nationwide, held a press conference yesterday afternoon, demanding "an immediate halt to the expropriation and compensation procedures for ongoing new towns and public housing districts nationwide," and drew a clear line by stating, "We will not engage in land compensation negotiations with LH until the full investigation into LH employees' speculation allegations is completed."

Voices calling for the cancellation of the 3rd New Towns are also spreading. As of today, more than 65,000 people have agreed to a petition titled "Please Withdraw the 3rd New Towns," posted on the Blue House's public petition board on the 5th.

With setbacks expected starting from the foundational work of land compensation for new town development, concerns are rising that the 'supply delay' crisis of the Lee Myung-bak administration's public housing projects will recur. At that time, the government introduced preliminary subscriptions for public housing in 2009-2010, but due to delays in land compensation, the project period was extended, and about 41% of preliminary subscribers dropped out during the main subscription. For example, the Hanam Gam-il District B3 and B4 blocks, which received preliminary subscriptions in November 2010, were scheduled for main subscriptions in 2012, but due to delayed land compensation, the main subscription was only conducted in January 2019.

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