Fear of Abolishing 'Sejong Public Official Special Purchase'... Will a Speculation Frenzy by Outsiders Erupt?

Rooftop park of the Government Sejong Complex with a view of the apartment complexes in Sejong City Photo by Yonhap News

[Asia Economy Reporter Moon Jiwon] The special apartment supply (special supply) system for public officials of institutions relocated to Sejong City has been finally abolished after controversy. While there is support due to concerns over preferential treatment for public officials, some public officials are strongly opposing it, so the controversy is expected to continue for some time.

On the 5th, the Ministry of Land, Infrastructure and Transport announced and published in the official gazette the "Partial Amendment to the Housing Supply Regulations," which includes the abolition of the special apartment supply system for public officials of relocated institutions in Sejong.

The amendment deletes Article 47, Paragraph 1 of the Housing Supply Regulations, which stated, "The project entity may provide special supply only once, based on one household one house, for public officials of national institutions, local governments, and public institutions relocating from the metropolitan area to the planned area of the Administrative City (Sejong New City, hereinafter Happy City) where the housing is constructed."

Earlier, on May 28, the ruling party, government, and Blue House announced through the 5th High-level Party-Government Consultative Meeting a legislative notice to abolish the special supply system for relocated institutions. The reason for the amendment was explained as, "The special housing supply system for relocated institution workers was introduced to promote national balanced development and housing stability for relocated institution workers, but since the purpose has been largely achieved due to improved living conditions, the special supply system is being abolished."

Accordingly, starting with "Sejong Xi The City" in L1 Block of 6-3 Living Zone this month, the supply volume for relocated institutions is expected to be converted to general supply volume. Sejong City allows nationwide subscription, and this complex has over 1,200 units of exclusive area over 85㎡, which are allocated by lottery, accounting for more than 89% of the total supply, so the subscription competition rate is expected to be high.

Since the supply volume allocated to relocated institution workers, which accounted for 40% of the total supply, will be converted to general supply volume, there are many concerns that speculative demand from outsiders to Sejong may surge. Sejong City is subject to the price ceiling system, so the sale price is significantly lower than the market price. Although the recent housing price rise has slowed, the large increase last year suggests a high possibility of buying demand gathering.

To prevent such speculative demand from increasing, Sejong City has proposed to the Ministry of Land, Infrastructure and Transport and the Administrative City Construction Agency to reduce or abolish housing supply in the city for nationwide residents and to restrict eligibility to local residents.

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