Four National Lands Including Daebang-dong, Seoul to Be Newly Developed for Public Housing and More

The 22nd National Property Policy Deliberation Committee Meeting Held

[Asia Economy Reporter Jang Sehee] Four state-owned lands, including the military site in Daebang-dong, Seoul, will be newly developed as housing sites for public housing supply.

On the 18th, the government held the '22nd State Property Policy Deliberation Committee' chaired by Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki, and approved the 'State Property Land Development Project Site Selection Plan' containing these details.

In his opening remarks, Minister Hong said, "To develop idle and unused state-owned lands as regional development hubs, the land development system was introduced in 2018, and last year, 11 pilot projects were selected. Among them, the project plans for four sites?Uijeongbu Correctional Facility, Wonju military site, Gwangju Correctional Facility, and Busan Horticultural Experiment Station?were approved." The newly selected land development project sites include the military site in Daebang-dong, the former Samsong Elementary School site in Goyang-si, Gyeonggi-do, the former Seoul National University College of Agriculture site in Suwon, and the closed Deokha Station railway site in Ulsan.

The four newly selected state-owned lands are planned to be developed into 1,200 public housing units, 18,000㎡ of venture startup spaces, and 36,000㎡ of smart factory sites.

The development directions by site are as follows: the military site in Daebang-dong and the closed Deokha Station railway site will supply public housing in downtown Seoul and newlywed hope housing near stations, respectively.

The former Samsong Elementary School site will be developed into a complex space supporting innovative industries such as ICT and youth startups.

Additionally, the former Seoul National University College of Agriculture site will be developed into logistics centers, startup support centers, and R&D facility sites.

The government plans to establish entrusted development project plans for each site by the first half of next year, complete local government permits and approvals by 2023, and finish land preparation by 2026.

The Korea Land and Housing Corporation (LH) will be responsible for developing the military site in Daebang-dong, the former Samsong Elementary School site, and the closed Deokha Station railway site, while the Korea Asset Management Corporation (KAMCO) will handle the development of the former Seoul National University College of Agriculture site.

The government expects that through a total investment of 1.9 trillion KRW, including 1 trillion KRW from the public sector and 900 billion KRW from the private sector, a production inducement effect of 3.2 trillion KRW and 19,000 jobs will be created.

Accordingly, the government decided to introduce a 'long-term land lease development method' that combines private creativity and capital in this state-owned land development. Some of the land developed through entrusted land development will be leased to the private sector for a long term (50 years) to build and operate facilities, and rent will be collected during the operation period.