Ministry of Economy and Finance vs. Ministry of Land, Infrastructure and Transport: Who Is Right on the 'Greenbelt Release'?

Hong Nam-ki Deputy Prime Minister "Keeping Possibilities Open"
Park Sun-ho First Vice Minister of Land, Infrastructure and Transport "Negotiations Haven't Started Yet"

Effective Supply Expansion in Major Areas like Seoul is Key
Priority Discussions on High-Density Urban Development and Public Reconstruction
First Working Planning Team Meeting Held After July 10 Measures Announcement

[Asia Economy Reporter Kim Yuri] The Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport are clashing head-on over the release of the greenbelt areas in Seoul. While the Ministry of Economy and Finance has expressed a willingness to lift greenbelt restrictions if necessary to expand supply, the Ministry of Land, Infrastructure and Transport, the competent authority, has effectively opposed the idea, resulting in conflicting voices between the two ministries. This conflict over supply expansion measures is emerging even before the government's "Housing Supply Expansion Task Force (TF)," which will be fully operational from the 15th, begins its work.

According to the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport on the day, the possibility of lifting the greenbelt was raised by Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, who is also the head of the TF. Appearing on MBC Newsdesk the previous day, he said that five to six supply expansion measures are currently under review and stated, "After reviewing these tasks, if necessary, we are open to examining the greenbelt issue." He directly mentioned the possibility of lifting the greenbelt if supply expansion through measures announced in the July 10 plan?such as ▲high-density development in urban areas ▲increasing floor area ratios in the 3rd new towns ▲discovering idle land and national facility sites around cities ▲public redevelopment and reconstruction ▲utilizing vacant commercial and office spaces in urban areas?proves insufficient.

According to Seoul city, the greenbelt currently covers 149㎢ across 19 of the 25 autonomous districts in Seoul, accounting for about 25% of the city's area. The market expects that if greenbelt release is included in the supply plan, greenbelt areas in Seocho-gu and Gangnam-gu, such as the residential complex area in Naegok-dong, Seocho-gu, and the automobile license test site area in Segok-dong, Gangnam-gu, are likely candidates. The greenbelt areas in Seocho-gu and Gangnam-gu are 23.89㎢ and 6.09㎢, respectively. It is analyzed that the review will focus on grade 3 to 5 areas, which have lower preservation value compared to grade 1 to 2 areas.

However, the Ministry of Land, Infrastructure and Transport, the competent authority, expressed a cautious stance the next day. Park Seon-ho, 1st Vice Minister of the Ministry of Land, Infrastructure and Transport, appeared on CBS Radio's Kim Hyun-jung's News Show on the 15th and said, "Simply thinking about using the greenbelt to build houses is a matter that needs careful consideration." This was effectively a direct rebuttal of Deputy Prime Minister Hong's remarks. Vice Minister Park said, "The greenbelt serves not only to preserve natural environments such as green spaces but also to prevent indiscriminate outward urban sprawl. It is also important to keep in mind the argument that damaged areas within the greenbelt should be preserved for useful purposes for future generations."

Vice Minister Park mentioned the possibility of easing reconstruction regulations through public initiatives. He said, "The issue is how much to increase the floor area ratio for the remaining reconstruction projects," adding, "It is a process of finding an appropriate development density that can increase housing supply while maintaining a pleasant residential and urban environment." He also added, "If the floor area ratio is increased, the corresponding benefits should also be recouped."

Meanwhile, the government plans to intensify practical discussions to determine whether to include the greenbelt and aims to announce additional supply measures within a month, possibly as early as this month. To this end, the government will hold the first practical planning team meeting at Seoul City Hall in the afternoon.