Expectations for Deregulation... Public Redevelopment under Moon Administration Losing Momentum

On the morning of the 2nd, in front of the Presidential Transition Committee in Tongui-dong, Jongno-gu, Seoul, the Emergency Countermeasures Committee Against Public Redevelopment in 21 districts of Seoul, Gyeonggi, and Incheon held a press conference urging a fundamental reconsideration of public redevelopment.

The public redevelopment project, a core supply policy of the Moon Jae-in administration, is facing intensified opposition from residents ahead of the new government's inauguration. As the incoming Yoon Suk-yeol administration emphasizes a private-led supply policy through deregulation, opposition to public redevelopment is spreading, raising concerns that the project may be stalled for a long time.

On the morning of the 2nd, emergency response committees (ERCs) from 21 districts, including 17 in Seoul and 4 in the metropolitan area, opposing public redevelopment held a press conference in front of the Godo Building next to the 20th Presidential Transition Committee, stating, "The Yoon Suk-yeol government should reconsider public redevelopment from scratch."

The ERC pointed out that the opposition opinions of actual owners and residents are not properly reflected in the public redevelopment projects, citing Heukseok 2 District as an example. According to the ERC, among 300 residents in Heukseok 2 District, about 140 commercial property owners own more than 80% of the land. Approximately 400 commercial tenants actively engage in their businesses, and most commercial property owners own homes elsewhere. The ERC claimed, "However, those who own only 1,300 pyeong out of 9,400 pyeong of land are pushing forward public redevelopment by majority vote." Since the consent is collected based on the number of landowners rather than the land area, the legitimacy of the project’s promotion is weakened.

They raised their voices that public redevelopment is unconstitutional and that the application of special laws is unjust. The ERC stated, "The government is proceeding by designating SH and LH corporations as project operators with only the consent of the majority of owners, without any area requirements, applying Article 15 of the ‘Special Act on Public Housing’ and the ‘Special Act on Promotion of Urban Redevelopment.’ This is almost a procedure close to expropriation." They added, "Applying special laws that infringe on others' property rights in a manner close to expropriation with only 50% consent requires very strict standards and procedures."

The public redevelopment project has been promoted since the announcement of the August 4, 2020 real estate measures by the Moon Jae-in administration. It designates LH and SH as public implementers and simplifies the approval process to proceed with redevelopment projects swiftly. While emphasizing speed in project execution, internal opposition has continuously erupted in various places. The problem is that this opposition movement is intensifying ahead of the new government's inauguration. In fact, the ERC’s press conference in front of the transition committee on this day was intended to actively foster opposition to public redevelopment before the new government takes office.

Moreover, since Won Hee-ryong, the nominee for Minister of Land, Infrastructure and Transport, hinted at the possibility of a full review of public-led projects, there is a considerable chance that the project may be stalled for a long time. In his written response to pre-hearing questions at the National Assembly confirmation hearing, Won stated that regarding public-led reconstruction and redevelopment projects, "We will comprehensively consider residents' opinions and location characteristics to review the most suitable measures for residential environment improvement." He also emphasized the role of the private sector, saying, "To sufficiently expand housing supply in urban areas, revitalization of redevelopment and reconstruction projects through private participation is necessary."

Choi Jo-hong, vice chairman of the Heukseok 2 District ERC, said, "The current public redevelopment is an attempt to violate the constitutional basic right of private property by ignoring the opinions of landowners," adding, "We will hold large-scale rallies together with other districts opposing public redevelopment and carry out strong struggles until public redevelopment is withdrawn."

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