Direct Clash Between City and Gangnam-gu Over Utilization of Former Seoul Medical Center Site

Land Swap Target in Songhyeon-dong Site
City to Promote Limited Housing Construction
Gangnam-gu "Hinders MICE Development"

[Asia Economy Reporter Kim Hyemin] Seoul City and Gangnam-gu are in conflict over the utilization of the former Seoul Medical Center site in Gangnam-gu, Seoul. This comes as the city has begun procedures to allow housing to be built on the southern site of the Seoul Medical Center, which was decided to be exchanged for the Songhyeon-dong site in Jongno-gu owned by Korean Air. Gangnam District Office is strongly opposing this, even mentioning administrative litigation.

According to Seoul City on the 8th, the city started a 14-day public inspection notice from the previous day for the change of the district unit plan of the International Exchange Complex District. The main point is to allow apartment complexes to be planned on the southern site of the former Seoul Medical Center within 20-30% of the total floor area. Currently, the site is designated as a non-permitted area for apartments or single-family houses under the district unit plan, but the intention is to allow limited housing construction going forward.

This is a follow-up measure after Seoul City purchased the Songhyeon-dong site owned by Korean Air. Previously, Seoul City, Korean Air, and Korea Land and Housing Corporation (LH) agreed on a three-party contract method where Seoul City would buy the Songhyeon-dong site, LH would pay the sale price, and Seoul City would provide equivalent city-owned land to LH. The land to be transferred to LH was confirmed as the southern site of the former Seoul Medical Center.

Seoul City has completed the public property review committee and obtained approval from the city council, aiming to sign the contract within the year. To accurately calculate the scale of the land exchange, an appraisal must be conducted, but before that, the procedure to finalize the land use is this district unit plan change.

Gangnam-gu is opposing, saying that Seoul City directly drafted and announced the district unit plan in 2016 to develop the area as a business district without housing, but suddenly changed its stance. They argue that building housing in an area strengthened as a business district, located between Hyundai Motor Global Business Center (GBC) and Jamsil MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, is inconsistent with the original plan and surrounding developments.

A Gangnam-gu official said, "Since the 2000s, no housing has been built around the site, and it has developed as a business district," adding, "Allowing housing on the southern site while the issue of supplying 3,000 units on the northern site of the former Seoul Medical Center remains unresolved is a decision that does not consider the surrounding environment at all."

On the other hand, Seoul City insists that the change of use is inevitable as LH will take over the site. Especially since housing use is limited to 20-30% of the total, they dismissed the possibility of withdrawal, saying it would not significantly affect the MICE function.

A Seoul City official said, "In 2018, we also announced plans to supply 800 housing units on the former Seoul Medical Center site," adding, "We judged that incorporating some residential function rather than none at all would help prevent depopulation through complex development." He continued, "Even if some housing is introduced, the rest will be office and MICE facilities," and said, "It is hard to say that the MICE function is lost while maintaining the existing use as much as possible."

Regarding the government's plan to supply 3,000 housing units on the northern site of the former Seoul Medical Center, the official added, "It is not finalized, and Seoul Mayor Oh Se-hoon also said that realizing 3,000 units is practically difficult," and "We plan to gather opinions from residents and experts to prepare various introduction uses."

Seoul City intends to complete the land exchange procedures within the year, but since Gangnam-gu is even mentioning administrative litigation, delays in the schedule cannot be ruled out. An industry official said, "The more the conflict intensifies, the more the schedule will be disrupted," and added, "We need to quickly find ways to mediate the conflict, such as gathering opinions."

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