'General Election Real Estate War' Ignited in Gangnam 3 Districts

Jamsil Jugong 5 Complex Reconstruction
"Resolve Issues to the Maximum" Response
Wirye New Town Transportation Network Pledge
Competition Over Tax Issues in Gangnam District

[Asia Economy Reporter Donghyun Choi] About two weeks before the April 15 general election, real estate pledges between ruling and opposition candidates are becoming a key issue in the 'Gangnam 3 Districts (Seocho, Gangnam, Songpa-gu).' This area is highly influential and closely watched as it is considered the eye of the storm in Seoul's real estate market, with many large-scale complexes stuck in reconstruction due to government regulations for years, making voter sentiment highly susceptible to policy directions.

According to industry sources on the 30th, the Jamsil Jugong 5 Complex union, a representative reconstruction complex in Jamsil-dong, Songpa-gu, recently sent official letters to Choi Jae-sung of the Democratic Party of Korea, the incumbent running in Songpa Eul, and Bae Hyun-jin of the United Future Party. The main content was a request for answers on how they would enable the long-stalled reconstruction projects if elected as the 21st National Assembly members. Jamsil Jugong 5 Complex is the second largest reconstruction project in the Songpa Eul area, with 3,930 households, following the Olympic Family Town (4,494 households).

Choi recently responded to the Jamsil Jugong 5 Complex union regarding the resumption of reconstruction projects as part of his legislative report. He stated, "Except for the issue of relocating Sincheon Elementary School, almost everything is ready for the reconstruction of Jamsil Jugong 5 Complex," and promised, "If the union agrees on the relocation of Sincheon Elementary School, the issue will be resolved within six months."

Bae did not provide a specific response to this issue. However, considering the real estate-related pledge in the recently announced United Future Party general election manifesto, which states 'significantly expanding the supply of quality housing through deregulation of reconstruction and redevelopment,' it is expected that he will express a similar stance.

In Songpa Byeong, Nam In-soon of the Democratic Party and Kim Geun-sik of the United Future Party are running. Songpa Byeong is regarded as a relatively balanced neutral zone between conservatives and progressives. It has many residents from Honam, redevelopment projects are underway in areas like Geoyeodong and Macheondong, and the young population is increasing due to places like Wirye New Town.

Both Nam and Kim have pledged to secure public transportation networks that are still underdeveloped around the new towns. Nam said, "We will steadily implement the wide-area transportation measures for Wirye New Town and resolve public transportation blind spots by establishing new village bus routes in Songpa-gu." Kim also pledged, "Early commencement and completion of the Wirye New Line is the wish of residents in Wirye New Town and Songpa Byeong," adding, "Along with this, I will relocate the Jangji public garage and build a complex cultural facility."

In Gangnam-gu, Kim Seong-gon of the Democratic Party and Tae Young-ho (registered name Tae Gu-min) of the United Future Party, both running in Gangnam Gap, have already clashed over real estate tax issues. Kim argued that comprehensive real estate tax should be eased for single-homeowners, long-term holders, and actual residents. Tae agreed but went further, suggesting raising the official price threshold for comprehensive real estate tax from the current 900 million KRW to 1.2 billion KRW, providing more detailed proposals.

Gangnam Gap, part of the Gangnam riverside living area, has many elderly residents who own expensive apartments for a long time without steady income, so both candidates are tailoring their pledges to reduce tax burdens. However, this direction conflicts with the current government's policy to increase tax burdens on owners of high-priced homes, which may put Kim at a disadvantage. Even looking at the manifestos officially published by their parties, the United Future Party opposes the current government's predatory real estate tax hikes, while the Democratic Party does not include any content related to easing real estate taxes.