[Q&A] "10,000 Units in Yongsan Possible with School Site Adjustment... Ongoing Consultations with Seoul City"

Joint Briefing at Government Complex Seoul
Led by Minister Kim Yoonduk and Key Officials

Kim Yoonduk, Minister of Land, Infrastructure and Transport, is holding a joint briefing on housing supply promotion at the Government Complex Seoul in Jongno-gu, Seoul on the 29th. Photo by Jo Yongjun

At a joint briefing on the "Measures to Expand and Accelerate Housing Supply in Urban Areas" held at the Government Complex Seoul in Jongno-gu, Seoul on the 29th, Minister of Land, Infrastructure and Transport Kim Yoonduk said, "Housing supply in the Seoul metropolitan area, including Seoul, has been very sluggish in recent years, so we have 'scraped together everything we could' to prepare these measures in order to ease public anxiety."

Minister Kim said, "We will supply a total of 60,000 housing units, including the existing Yongsan volume, by utilizing urban sites such as Yongsan and Taereung in Seoul and Gwacheon in Gyeonggi Province, as well as outdated government office complexes," adding, "This volume is similar in scale to combining two Pangyo new towns."

He continued, "Since the relevant agencies joined forces from the very early stage of site identification to prepare this supply plan, its enforceability will also be stronger than ever," and added, "Under the principle of 'steadily supplying housing where there is demand,' we will continue, even after February, to identify new supply sites and institutional improvement tasks to promote urban supply and will announce them as soon as they are ready."

In addition to Minister Kim, the joint briefing was attended by Vice Minister for Strategy and Finance Kang Giryong, Director General for Housing Supply Promotion at the Ministry of Land, Infrastructure and Transport Kim Youngguk, and Director General for Food Policy at the Ministry of Agriculture, Food and Rural Affairs Park Junghoon.

The following is the full Q&A.

-Regarding development of the Yongsan business district, the Seoul Metropolitan Government maintains that 8,000 housing units is realistic when considering the green space ratio and other factors. Has consultation been concluded? What is the background for excluding greenbelt release?

▲We are continuing consultations with the Seoul Metropolitan Government, and there are also points of disagreement. The Mayor of Seoul holds the view that around 8,000 units are fully feasible on the premise that the timing of implementation must not be delayed. The Ministry of Land, Infrastructure and Transport judges that additional supply is possible if school sites and other matters are adjusted in consultation with the Office of Education. As discussions with the Office of Education are proceeding smoothly, we have expressed our intention in this announcement to build up to 10,000 units. We will work in consultation with the Seoul Metropolitan Government to ensure smooth implementation. As for the greenbelt, rather than setting a specific point in time, we plan to continue reviewing it on an ongoing basis. A portion of the Seongnam site announced this time includes greenbelt areas.

-Development of Taereung Country Club was pushed in the past but stalled. What has been resolved this time to make re-promotion possible?

▲Under the previous administration, preparation for the World Heritage impact assessment was insufficient, and differing views among relevant ministries prevented progress. This time, the Ministry of Land, Infrastructure and Transport is in smooth consultation with the National Heritage Administration. We will prepare the impact assessment swiftly and thoroughly and move the project forward.

-To prevent speculation, you said that land transaction permission zones would be immediately designated in the relevant districts and surrounding areas. What is the scope of the surrounding areas?

▲Two areas (200,000 square meters) in Seongnam City that were notified today have been designated, and in the Juam-dong area of Gwacheon City, existing apartment complexes were already designated, but non-apartment properties were not. We plan to designate all housing in Juam-dong under the land transaction permission system to prevent speculation.

-Most of the sites announced today were included in the August 4 measures under the Moon Jae-in administration but did not proceed due to resident opposition at the time. Why is swift implementation possible now?

▲When we analyzed why the previous efforts did not proceed, we found difficulties in site selection and opposition from local governments and residents. Opposition was strong because the focus was simply on housing supply. This time, we combined self-sufficiency functions and jobs to persuade local governments and residents, and we announced only the sites where positive consultations have been achieved. Once consultations are concluded, we plan to make additional announcements.

-If construction starts in 2027, that is next year. Is this possible by streamlining procedures?

▲The state-owned and public land on which construction can start are sites that have been delayed for a long time or have been stalled due to problems, but we have removed the bottlenecks through changes in project methods or consultations with local governments, so progress can be rapid. In addition, the "Special Act on Complex Development of Aged Public Office Buildings" has been submitted to the National Assembly, and if this law is passed, procedures will be further accelerated through regulatory simplification, financial support, and shortened consultation processes.

-Do you expect today's announcement to have a stabilizing effect on the market?

▲The five projects involving outdated government office complexes can break ground starting next year, providing around 1,600 housing units. If we compress procedures through measures such as exempting preliminary feasibility studies and conducting district designation and district planning in parallel, this is fully achievable. I believe it will definitely help stabilize the market. Of the 60,000 units announced this time, about 40,000 are a net increase that is not included in the September 7 measures (1.35 million units). From February to March, we also plan to announce institutional improvements to promote private housing construction, and we will continue to announce additional sites.

-Will all of the sites announced this time be directly implemented by Korea Land & Housing Corporation (LH)?

▲There will be LH-commissioned developments as well as sites owned by LH. The site south of Seoul Medical Center is owned by LH, and LH plans to be the project implementer for the Seongnam public housing districts. Some projects can proceed under methods suited to the characteristics of each site, such as urban development projects, and we will decide through consultation on the most appropriate and swift project method.

-You said the supply will focus on young people and newlyweds. What will be the ratio between rental and for-sale housing?

▲We have not yet precisely divided and finalized the rental and for-sale volumes. We plan to announce a housing welfare roadmap in the first half of the year and prepare a housing welfare plan targeting young people and newlyweds. Once the specific ratio between rental and for-sale housing is finalized, we will provide separate guidance.

-In complex developments of aged public office buildings, will the focus be on small rental units (30 square meters) as before? Will for-sale units also be included?

▲The specific building types will be reviewed and announced later. For outdated office complexes, various approaches are possible, such as complete demolition and reconstruction or remodeling, so the plans can be adjusted to fit reality. We are keeping open the possibility of including for-sale housing.

-Have relocation sites been decided for the agencies that need to move? What is the status of the urban block-type housing projects?

▲Korea Racing Authority is considering relocating the racecourse within Gyeonggi Province. We are looking into areas that are already somewhat developed so that housing supply can proceed quickly. As for public institutions, a second round of public institution relocations is expected to be announced soon, and we will provide comprehensive guidance at that time. The urban block-type housing projects are currently under review by the National Architecture Commission, and once the review is completed, we will make a separate announcement.

Kim Yoonduk, Minister of Land, Infrastructure and Transport, is holding a joint briefing on housing supply promotion at the Government Seoul Office in Jongno-gu, Seoul, on the 29th. Photo by Jo Yongjun

-The Seoul Metropolitan Government has said that redevelopment projects are being delayed because the central government is blocking relocation loans, or "move-out" loans. What is the position of the Ministry of Land, Infrastructure and Transport?

▲Even when areas are designated as regulated zones, we have allowed relocation loans where possible by permitting such loans for projects that have already received approval for their management and disposal plans, and additional relocation loans are also possible through the associations or construction companies. For small-scale redevelopment projects, there is also a tool that supports 50% of total project costs at an interest rate of 2.2%, and individuals can use jeonse loans. However, we will examine the difficulties on the ground and, if necessary, review improvements in consultation with relevant agencies.

-Is there any discussion underway on the reconstruction excess profit recapture system to revitalize private redevelopment projects?

▲There has been no discussion within the Ministry of Land, Infrastructure and Transport. If discussions are initiated under the leadership of the National Assembly, the government will participate and seek alternatives.

-When will tax measures such as the heavy capital gains tax on multi-homeowners and the strengthening of property holding taxes be introduced?

▲The temporary suspension of the heavy capital gains tax on multi-homeowners will end on May 9 as scheduled. We are running simulations and preparing to revise the enforcement decree, taking into account conditions in areas additionally designated as land transaction permission zones under the October 15 measures, as well as the period between signing a sales contract and paying the balance. A comprehensive overhaul of the tax system, including property holding taxes and transaction taxes, is being prepared step by step through research projects and consultations with relevant ministries.

-When it is difficult to reach agreement on methods such as the donation-and-transfer scheme for military sites, projects can be delayed. Were only those sites included in this package where consultations with local governments have been completed?

▲Consultations have been completed for areas such as Namyangju. For sites such as the Counterintelligence Command site, we plan to consult with the Ministry of National Defense on the fastest possible relocation and construction method.

-Besides Camp Kim, will other returned U.S. military bases also be used for housing supply?

▲For Camp Kim, we are expanding supply with this package, and we are also reviewing other sites. However, rather than deciding unilaterally, we believe it is desirable to make decisions through a process of public discussion that gathers public opinion.

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