Seoul City "Songhyeon-dong Site Compensation Cost Set at 467 Billion Won... Specific Amount to Be Decided After Appraisal"

Seoul City is promoting a plan to change the Korean Air site, currently an empty lot in Songhyeon-dong, Jongno-gu, into a 'cultural park' under urban planning facilities. On the 28th, the city announced that it submitted the 'Songhyeon-dong Korean Air Site Park Decision Plan' for consultation at the Urban and Architecture Joint Committee held on the 27th. The decision plan includes changing the site, currently designated as a special planning zone within the Bukchon district unit plan, into a cultural park. The photo shows the Korean Air site in Songhyeon-dong, Jongno-gu, Seoul, which Korean Air is currently promoting for asset sale. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government has set a compensation amount of 467 billion KRW for the Korean Air site in Songhyeon-dong, Jongno-gu.

On the 5th, Seoul announced that it is currently conducting a public inspection notice for the Urban Management Plan (Bukchon District Unit Plan) decision (amendment) proposal. The public inspection notice is being conducted to abolish the area of 48-9 Songhyeon-dong, which is a 'former US Embassy staff residence site special planning zone' within the Bukchon District Unit Plan area, from the special planning zone and designate it as a cultural park.

The city explained, "This public inspection notice is a procedure carried out in accordance with the 'National Land Planning and Utilization Act' and the 'Seoul Metropolitan Urban Planning Ordinance' to hear residents' opinions before drafting the urban management plan decision proposal," adding, "Considering Korean Air's situation, which requires securing funds as soon as possible, we intend to promptly carry out the related procedures and prepare the budget for land acquisition."

According to the funding plan included in the inspection documents, the compensation amount was estimated at approximately 467 billion KRW based on the 'Preliminary Feasibility Study Execution General Guidelines.' The compensation amount is calculated by applying a compensation multiplier to the publicly announced land price, and the appraisal value is usually set higher than this amount.

A Seoul city official stated, "The specific purchase amount will be decided through negotiations based on the appraisal results from two appraisal institutions appointed separately by the city and the landowners," and explained, "In accordance with the 'Land Compensation Act,' the land value before the park designation will be evaluated by commissioning two or more appraisal companies to determine the price."

Regarding the plan to pay the compensation in installments over 2021-2022, the official said, "This is the budgeting method based on the financial plan," adding, "Depending on the progress of negotiations, the budget may be allocated earlier." The city's plan is to complete compensation by 2022, start construction expenditure from 2023, and finish by 2024.

After the public inspection notice, Seoul plans to complete the urban management plan decision within this year through the Urban and Architecture Joint Committee review next month. The related documents are available for inspection at the Public Development Planning Division of Seoul City Hall and the Architecture Division of Jongno-gu Office. The inspection period is 14 days starting from the day after the announcement date (June 4).