The tug-of-war between the Ministry of Land, Infrastructure and Transport and Seoul City over Yongsan Park is reaching a critical juncture. Minister Kim Yun-deok and Mayor Oh Se-hoon are set to meet again on the morning of August 26 to discuss housing supply solutions in Seoul, just six days after their initial meeting. With significant differences remaining regarding the use of Yongsan Park, the key question is whether they can make progress on alternative sites and easing regulations on private redevelopment projects.
According to government and city officials, the two leaders will discuss utilizing parts of Yongsan Park for housing supply and expanding supply within Seoul. Their first meeting on August 20 covered various topics, including the use of Yongsan Park and greenbelt areas, as well as easing regulations on redevelopment projects, but ultimately reaffirmed their respective positions.
The primary issue continues to be Yongsan Park itself. The Ministry of Land argues that while the entire park cannot be used, limited housing can be supplied on certain areas that have already been damaged or previously used for residential purposes, targeting young couples and families with multiple children.
Minister Kim stated, "I strongly agree with the principle that Yongsan Park must be preserved," indicating that discussions on potential supply areas could occur through forums or public deliberation processes.
In contrast, Mayor Oh is drawing a line against using the main park for housing. He argues that areas like the former military housing, which the government considers damaged, were originally designated as 'planned park areas' and should remain protected.
As a compromise, Seoul City has proposed alternative sites, including Camp Kim, the National Military Finance Management Agency site, the Ministry of Foreign Affairs parking lot, and the Bank of Korea's staff housing in Huam-dong, to be utilized around Yongsan Park. They also suggest exploring other areas, such as the Tancheon Water Recycling Center, for potential alternative sites.
However, the currently discussed alternative sites may not meet the government's desired supply scale. The area around the children's garden within Yongsan Park alone spans approximately 300,000 square meters, making it uncertain how much additional land can be secured if the main park is preserved.
Another point of negotiation is the regulations surrounding private redevelopment and reconstruction. Seoul City argues that the quickest way to effectively increase housing supply is to enhance the viability of existing redevelopment projects rather than seeking new land. Key demands include expanding floor area ratio incentives, easing loan regulations for relocation costs, and relaxing restrictions on the transfer of membership status in redevelopment projects.
The government also acknowledges the need to revitalize redevelopment projects, as indicated in the August 13 measures, which included lowering the agreement rate for establishing redevelopment associations. However, they remain cautious about significantly relaxing floor area ratios or financial and transaction regulations, fearing it could once again stimulate housing prices in Seoul.
Recently, the government and ruling party have proposed transferring the authority to designate redevelopment and reconstruction zones for projects with fewer than 500 units to local districts, leading to new disagreements surrounding redevelopment projects. Seoul City contends that many of these smaller projects are already at the local approval stage, so transferring authority will not significantly increase supply or shorten project timelines. They argue that regulations limiting relocation loans and membership transfers must be eased to enhance project viability.
Ultimately, given the difficulty of reaching an immediate agreement on the main Yongsan Park issue, the focus of the August 26 meeting is likely to be on confirming the potential for expanding alternative sites and easing regulations on redevelopment projects.
An industry insider remarked, "It will be challenging to reach a conclusion on the main Yongsan Park issue in this meeting. Given that Mayor Oh has effectively set preservation of the main park as a red line, the government will need to go through legal amendments and public deliberation processes to enforce this."
* This article has been translated by AI.
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