The first negotiations between the government and Seoul City regarding housing supply at Yongsan Park ended with both sides reaffirming their differences. Significant challenges are expected in reaching a concrete compromise, particularly regarding the use of the park's core areas.
However, the delay by both parties in processing some housing supply bills for a week has emerged as a variable for future negotiations. The Ministry of Land, Infrastructure and Transport and Seoul City plan to meet again next week, with finding common ground on key issues being crucial.
On August 20, Minister of Land, Infrastructure and Transport Yoon Duk-kun and Seoul Mayor Oh Se-hoon met at the Dalgaebi Conference House in Jung-gu, Seoul, to discuss housing supply plans for the city. They discussed the potential use of some areas of Yongsan Park, the lifting of greenbelt restrictions, and easing regulations on private redevelopment projects, but ultimately only reaffirmed their positions. They were unable to resolve differences regarding the scale of housing supply in the Yongsan International Business District.
The most pronounced disagreement centered on Yongsan Park. Minister Yoon expressed that limited housing could be supplied for young people and newlyweds by utilizing some areas that have been damaged or already developed. In contrast, Mayor Oh maintained a principled opposition to housing supply within the main area of Yongsan Park.
Regarding the greenbelt, Minister Yoon reiterated his proposal to limit any additional lifting of restrictions to damaged areas rather than a blanket release. Meanwhile, Mayor Oh argued that enhancing the viability of private redevelopment projects would be more effective for increasing housing supply in downtown Seoul than focusing on Yongsan Park or the greenbelt, which would not yield immediate results.
No conclusions were reached on easing regulations for private redevelopment projects, including increasing floor area ratios. Minister Yoon stated, “We will discuss this further after each side reflects on the issues,” leaving the door open for additional negotiations.
The two sides are expected to meet again as early as next week to seek compromises. After the meeting, Minister Yoon noted, “The only thing we agreed on is to meet again next week,” while emphasizing the need to convey a hopeful message to the public, especially to young people and newlyweds.
Additionally, the delay in processing housing supply-related bills by both parties has become a factor in future discussions. The parties postponed the introduction of amendments to the Special Act on Yongsan Park, the Urban and Residential Environment Improvement Act, and the Special Act on Promoting Urban Redevelopment, which were scheduled for a vote in the National Assembly.
Chun Jun-ho, the Deputy Floor Leader of the Democratic Party, stated, “Since the Minister of Land and the Mayor of Seoul are discussing housing supply issues, we decided to postpone processing some bills for about a week to reflect the results of their discussions.”
However, the postponed bills do not directly align with the contentious issues between the two sides. The currently pending amendment to the Special Act on Yongsan Park alone would not allow for housing supply within the main area of Yongsan Park, and the amendments to the Urban Improvement Act and the Urban Redevelopment Act do not directly address the floor area ratio increases requested by Seoul City for private redevelopment projects.
Nevertheless, the decision by both parties to hold off on immediate processing of the bills allows for further negotiations. The next meeting is expected to focus on the scope of damaged areas in Yongsan Park and the greenbelt, as well as easing regulations on private redevelopment projects, determining the level of compromise that can be achieved.
Seo Jin-hyung, a professor at Kwangwoon University’s Department of Real Estate Law, commented, “Given the significant differences between the positions of Seoul City and the central government, it will not be easy to narrow the gap in a short time. However, both sides need to find areas of compromise and collaborate on housing supply to send a positive signal to the market.”
* This article has been translated by AI.
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