Youth Housing Planned for Part of Yongsan Park, Official Says

On August 19, Han Jun-kyung, the chief of economic growth at the Blue House, stated that the plan to supply youth housing in part of Yongsan Park does not mean that the park will not be developed. He emphasized that the intention is to discuss land use options that allow for both the park and youth housing to coexist.

During an appearance on TV Chosun's 'News Parade,' Han noted, "Yongsan Park covers 910,000 pyeong, which is larger than the 880,000 pyeong area inside the Yeouido embankment. If we were to turn all of this land into a park, it would be an unprecedentedly large scale globally."

Han cited the low utilization rate of the Yongsan Park site and soil contamination issues as reasons for considering housing supply. He remarked, "If you visit the Yongsan Children's Garden, you will see that it is not heavily used. It is important to make good use of valuable land."

He further explained that the land is significantly contaminated, with costs for removing pollutants ranging from hundreds of billions to trillions of won. He suggested that utilizing part of the land for housing could facilitate excavation and cleanup efforts.

Han stated, "Creating a park that is accessible and of a suitable size can enhance its usage. We should consider ways to provide future generations with both good living spaces and a healthy environment."

He specifically mentioned that the housing planned for Yongsan Park would be in the form of public assets, not private sales. Han said, "Some parts of the 910,000 pyeong could be designated as parkland while others could be allocated for youth housing. It is difficult to distribute it through private sales; we are thinking of it as public assets."

He added, "We are considering ways for young people to utilize these spaces effectively, enabling them to marry and start families there."

Han also hinted at the possibility of revising the current Yongsan Park creation special law, which prohibits changing the land's use for purposes other than a park or selling it. He acknowledged, "I believe there is a social consensus that outright sales are not acceptable," but noted that given the significant changes in Seoul's housing situation over the past 20 years, it may be possible to include provisions for exemptions in cases of substantial public interest after review.

However, he stressed that any changes would require social discussion and consensus.

Regarding the housing supply plan announced by the government on August 13, which aims to provide over 230,000 homes in the metropolitan area, Han explained that it focuses on structurally addressing the supply shortage caused by a decline in construction starts in the past.

He pointed out, "During the Park Geun-hye administration, an average of 295,000 homes were started annually, while the Moon Jae-in administration saw 283,000. However, under the Yoon Suk-yeol administration, this number has dropped to 158,000, resulting in a near halving of construction starts from 2022 to 2024, which is now evident."

Han stated, "The government aims to push for the largest scale of construction starts, averaging around 300,000 homes, and will do so at a very fast pace. Addressing the structural issues of housing supply is the most significant feature of this plan."

He also expressed support for expanding supply through reconstruction and redevelopment. Han emphasized the need to consider the potential impact of easing regulations on floor area ratios and rental housing ratios, which could enhance project viability but also stimulate local housing prices.

He noted, "This plan includes many incentives for quickly advancing reconstruction and redevelopment projects, but we must also consider whether increasing project viability will raise housing prices in those areas."

Han acknowledged that reconstruction and redevelopment involve complex interests, take a long time, and do not significantly increase the number of new homes. He stressed the need to consider all options, including new land development, given the poor housing situation for young people.

Regarding the Youth Future Housing Loan, which supports the purchase of non-apartment properties, he clarified, "This does not mean we are telling young people not to buy apartments but rather providing an additional option for those who find apartment loans burdensome."

He added that even if they purchase non-apartment properties, they will still be eligible for benefits related to the loan-to-value ratio (LTV) and subscription qualifications when buying their first apartment in the future, ensuring no disadvantages.