"Government Pressures for Swift Racecourse Relocation Plan as Housing Supply Measures Accelerate"

Vice Minister of Agriculture Meets with Korea Racing Authority Chairman
"Promise to the Public"—Urgent Call for Swift Relocation
Key Site for Supplying 9,800 Housing Units
Union Opposition and Alternative Site Discussions Remain Challenges

The Ministry of Agriculture, Food and Rural Affairs recently summoned the head of the Korea Racing Authority, which operates the Gwacheon Racecourse. Four months after the announcement of the measures, discussions about relocating the site have stalled, prompting the government to call in the head of the affiliated agency and demand that a relocation plan be established as soon as possible. The Gwacheon Racecourse site is a key area in the urban housing supply measures announced by the Ministry of Land, Infrastructure and Transport in January, with nearly 10,000 housing units planned for the site.

As the government accelerates the pace of new housing supply, related ministries are also stepping up their efforts. Koo Yoon-cheol, Deputy Prime Minister and Minister of Economy and Finance, announced at a real estate ministers' meeting held on the same day that the start of the Taereung Country Club (Taereung CC) development would be moved up by one year to 2029. He also pressured the relevant ministries, stating, "We will mobilize all available means to manage the process."

According to related ministries on May 15, Kim Jonggu, Vice Minister of Agriculture, Food and Rural Affairs, recently met with Woo Hee-jong, Chairman of the Korea Racing Authority, at the Government Complex Sejong to discuss the issue of relocating the Gwacheon Racecourse. This was the first face-to-face meeting between the Vice Minister and Chairman Woo since his inauguration earlier this year, and Chairman Woo now faces the urgent task of resolving the relocation of the racecourse site. At the meeting, Vice Minister Kim reaffirmed the government's policy to supply housing on the site by relocating the Gwacheon Racecourse and urged the Korea Racing Authority to promptly establish a relocation plan.

Vice Minister Kim stated, "The relocation of the Gwacheon Racecourse was announced under the January 29th measures, and it continues to be closely monitored in subsequent inter-ministerial meetings on housing supply. As this is a promise made to the public, I requested that a relocation plan be established as quickly as possible."

The Ministry of Agriculture, Food and Rural Affairs, along with the Korea Racing Authority and Gyeonggi Province, also held the first director-level government support council meeting on May 13 to discuss the relocation of the Gwacheon Racecourse. Previously, discussions had been conducted at the division manager level, but as little progress was being made, the council was elevated in rank. It is also reported that discussions are underway to move up the planned construction start date from 2030 to 2029.

The government announced last month as part of the January 29th real estate measures that it would supply housing on the Korea Racing Authority-owned racetrack site (LetsRun Park, 1.15 million square meters). Yonhap News Agency

The government called in the chairman of the Korea Racing Authority to request cooperation on housing supply because the measures announced in January have not been progressing quickly. The Ministry of Land, Infrastructure and Transport announced a plan to supply 60,000 housing units in urban areas, with as many as 9,800 units to be supplied on this site near Gangnam—the largest amount among the sites. The government intended to finalize the relocation plan, including for this site, in the first half of this year. However, as the Korea Racing Authority's labor union has opposed the plan and management has also shown little enthusiasm, no concrete relocation plan—including potential alternative sites—has been presented even about three months after the initial announcement.

In particular, with regard to the decision to increase the scale of housing supply in the Yongsan International Business District, a key project, from the originally planned 6,000 units to 10,000 units, the city of Seoul and the central government have failed to narrow their differences over infrastructure and other issues. Furthermore, the outcome of the local elections scheduled for early next month could affect the project, making it unclear whether it can proceed as planned. For the Taereung CC development, which aims to provide 6,800 housing units, a study was commissioned last month to review the overall regional transportation system and develop countermeasures to address concerns about traffic congestion. The study was urgently included in the supplementary budget, as it was not part of the original budget for this year.

The government's announcement at the real estate ministers' meeting that it would accelerate the start of large-scale housing supply projects is also closely linked to the slow progress so far. Especially as the reintroduction of capital gains tax surcharges for owners of multiple homes has led to a disappearance of properties temporarily released on the market, new supply has become even more important. Deputy Prime Minister Koo emphasized the need for speed by stating, "To ensure that projects proceed without disruption, we will designate site-specific supply managers to closely oversee each project."

To boost housing supply, the government is also considering short-term measures to increase the number of non-apartment housing units available for occupancy. In the first half of this year, the government and Korea Land and Housing Corporation (LH) began implementing a "non-residential remodeling" program, under which they will purchase and convert 2,000 non-residential units—including offices and lodging facilities—into housing. The government is also moving to revise the Enforcement Decree of the Special Act on Public Housing to include knowledge industry centers, currently used as factories, as targets for remodeling.

However, some point out that the government's attempt to push ahead with the supply plan without sufficient discussion of alternative relocation sites is the reason for the delays. Seo Jin-hyung, a professor at Kwangwoon University’s Department of Real Estate Law, stated, "If a relocation plan is pursued without adequate collection of opinions, friction like what we are seeing now is inevitable. Ultimately, for government-led supply measures to proceed, the opinions of the three major stakeholders—local governments, the institution relocating its site, and the central government—must align."

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