The disagreement between the government and Seoul City over housing supply at Yongsan Park remains unresolved after a second meeting. Minister of Land, Infrastructure and Transport Kim Yoon-deok and Seoul Mayor Oh Se-hoon met again on August 26, but both sides maintained their previous positions regarding the use of Yongsan Park.
However, the Seoul City government formally proposed developing the area around the Tancheon Water Recycling Center into a physical AI and youth housing complex, which the Ministry of Land, Infrastructure and Transport agreed to review. Experts advise focusing on viable alternative sites and revitalizing redevelopment and reconstruction efforts rather than engaging in a protracted debate over the historically and ecologically significant Yongsan Park.
According to the Ministry of Land, Infrastructure and Transport and Seoul City, Kim and Oh met at the Conference House Dalgaebi in Jung-gu, Seoul, to discuss expanding housing supply in the city. However, the core issue regarding the main body of Yongsan Park remains unchanged.
After the meeting, Mayor Oh stated in a background briefing, "We were unable to reach a conclusion today as well," emphasizing that "the main body of Yongsan Park must be preserved at all costs." He added, "The hopeful aspect is that I feel we are narrowing our opinions in various areas, and I expect that we can reach agreements on several issues in about a week."
The Ministry of Land, Infrastructure and Transport did not change its stance. Minister Kim remarked, "I believe we are not reaching a consensus on Yongsan Park." The government maintains that it is not looking to develop the entire Yongsan Park but is open to limited use of some damaged areas previously used for accommodations or hospitals for housing targeted at youth and newlyweds.
However, Kim noted, "There was never a requirement that it must be Yongsan Park," emphasizing that the search for housing for youth and newlyweds in Seoul includes Yongsan as one of the options, but it is not the goal of the government's supply policy.
Nonetheless, there are indications that discussions regarding alternative sites to replace Yongsan Park have progressed. On the same day, Seoul City formally proposed to the Ministry of Land, Infrastructure and Transport the development of a youth housing complex with 10,000 to 13,000 units in the area surrounding the Tancheon Water Recycling Center. The proposed site covers approximately 393,000 square meters.
Mayor Oh explained that a master plan for the area adjacent to the Tancheon Water Recycling Center and the Yangjae Stream is being pursued with a target completion by the end of this year. Seoul City aims to secure about 5.5 trillion won in funding by adjusting the functions of the water recycling center and linking it with nearby city-owned land, envisioning a southeastern hub combining physical AI industry and youth housing. The city argues that more housing units can be secured in the Tancheon area than by developing parts of Yongsan Park and is open to proposing additional alternative sites in the future.
Oh stated, "If Seoul City creates a catalyst, the private sector can come in, and a new youth housing complex can emerge in the southeastern region. I hope the supply from Yongsan Park is withdrawn and that the southeastern youth complex is adopted, leading to progress in discussions." He further emphasized the efficiency of supply from alternative sites, stating, "Even if we supply from Yongsan Park, we cannot achieve this level of quantity."
The Ministry of Land, Infrastructure and Transport also expressed its willingness to review the proposal. Minister Kim said, "We need to receive and analyze the data on the site proposed by Seoul City before we can make any statements. Our basic position is to actively review any sites that can supply housing."
Experts believe that as discussions about Yongsan Park are likely to prolong, it is practical to focus on alternative sites with a higher potential for supply and feasibility. Kwon Dae-jung, a professor of real estate economics at Hansung University, stated, "The value of a natural park on the outskirts of the city is significantly different from that of an urban park in the city center. Yongsan Park has great historical significance and value as an urban park, so it should be preserved."
Kwon further questioned, "If housing supply is necessary, there are alternative sites proposed by Seoul City, so is there really a need to develop Yongsan Park?" He cautioned that piecemeal development of the park could lead to issues such as haphazard development and additional costs for soil contamination cleanup. He emphasized, "We should preserve the park, but if housing supply is needed, we must find ways to utilize alternative sites."
Seo Jin-hyung, a professor of real estate law at Kwangwoon University, also noted, "It is desirable for the central and local governments to each make concessions and adopt a strategy for expanding supply. It is necessary to reflect the opinions of local governments to revitalize redevelopment and reconstruction and to release idle land held by Seoul City."
Meanwhile, the Ministry of Land, Infrastructure and Transport has decided to positively review the proposal to relax the legal upper limit of floor area ratio by 1.2 times for private redevelopment, which Seoul City has requested. Excluding the existing housing demolition figures, about 87,000 new units are expected from 253 maintenance projects planned to start construction by 2031. If the 1.2 times floor area ratio is applied, an additional 43,000 units could be added, raising the total to an estimated 130,000 units.
Under current law, public redevelopment can allow for a floor area ratio of up to 1.2 times, but expanding this to private redevelopment would require amendments to the Urban Redevelopment Act. The two sides must also negotiate the mandatory ratio of rental housing associated with the additional floor area ratio.
* This article has been translated by AI.
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