[Asia Economy Reporter Kim Hyemin] The conflict between Seoul City, the owner Harim, and Seocho District Office is intensifying over the site of the former Korea Cargo Terminal located in Yangjae-dong, Seocho-gu, Seoul.
As Harim and Seoul City, who have signaled a lawsuit battle, confront each other, Seocho District claims that the city unilaterally proceeded with the partial amendment of the district unit plan. Seoul City expressed strong regret toward Seocho District, stating that the city exercised its authority considering the severe traffic congestion in the area.
On the 5th, Seoul City issued a statement urging Seocho District to "stop unilateral claims based on distorted facts." The previous day, Seocho District criticized the city for designating the site as a special planning zone and partially amending the district unit plan to limit the floor area ratio to a maximum of 400%, unilaterally announcing the public inspection. They argued that the city excessively abused its discretionary power.
In response, Seoul City said, "While the mayor delegates authority to autonomous districts familiar with local conditions, the initiator of the district unit plan is the Mayor of Seoul," adding, "The mayor can directly initiate and decide on plans necessary to realize city-level policies." The city further stated, "This initiation was also carried out within the authorized scope to smoothly promote the creation of the Yangjae R&D Innovation District, which is Seoul City's policy direction."
Seoul City continued, "We have urged Seocho District to promptly carry out the revision procedure of the Yangjae residential district unit plan, but the district has continuously made unreasonable demands such as relaxing the floor area ratio for residential areas in Yangjae 2-dong, delaying the procedure for more than two years," and added, "We strongly regret that Seocho District, which should manage urban space together with Seoul City based on urban planning standards and principles, is taking a stance representing a specific company."
The site was purchased by Harim Group in 2016, and in the same year, the Ministry of Land, Infrastructure and Transport selected it as a pilot site for an urban high-tech logistics complex.
The reason for the conflict between Seoul City and Seocho District lies in their sharply divided positions on the floor area ratio. Harim and Seocho District argue that since the site was selected as a pilot site for the national urban high-tech logistics complex plan, the maximum floor area ratio of 800% should be applied. They submitted a letter of intent to invest to Seoul City based on this, but the city insists on maintaining the maximum floor area ratio at 400%, calling the claim a distortion of facts.
Seoul City claims that "when the Ministry of Land, Infrastructure and Transport selected the site as a pilot complex, it was clearly stated that 'individual project promotion is decided by the designation authority considering changes in local conditions,'" accusing Seocho District of distorting the facts. This means that the floor area ratio can be determined according to the city's judgment.
Seoul City emphasized, "Large-scale sites around Yangjae IC, including the site in question, are located within the 'Yangjae Residential District Unit Planning Zone' established in 2004 and have been consistently managed with a permitted floor area ratio of 400% or less for over 15 years," adding, "Nevertheless, if development proceeds with a floor area ratio of 800%, traffic congestion will inevitably worsen." The city also stated, "In this situation, we need to reconsider whether advocating for preferential high-density development on a specific site is desirable administration for local residents."
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