Half-Price Apartments Proposed by Kim Heon-dong... Possible at SETEC and Seoul Medical Center?

Conflict Rekindled Between Seoul City and Gangnam-gu Over Utilization of Setec and Seoul Medical Center Sites

[Asia Economy Reporter Kim Min-young] Kim Heon-dong, the nominee for president of the Seoul Housing and Communities Corporation (SH), mentioned Seoul Medical Center and SETEC as candidate sites for half-price apartments, which is expected to reignite conflicts between the Seoul Metropolitan Government and Gangnam District. The SETEC site was also planned by the Seoul Metropolitan Government in 2015 to build a second citizen hall, but faced opposition from Gangnam District and local residents. Gangnam District has stated that "no coordination has taken place," so a tug-of-war between the two sides is anticipated during the future promotion process.

According to the Seoul Metropolitan Government on the 11th, at a confirmation hearing held at the Seoul Metropolitan Council the previous day, nominee Kim expressed his determination to supply half-price apartments and identified candidate sites including △ Seoul Medical Center △ SETEC △ Suseo Station public parking lot. Half-price apartments are land leasehold housing where the developer owns the land and only sells the buildings.

The problem is that these sites have already been the source of serious conflicts with Gangnam District over utilization plans multiple times. Previously, the Seoul Metropolitan Government clashed with Gangnam District over the use of the former Seoul Medical Center site in Samseong-dong, Gangnam. When the Seoul Metropolitan Government announced plans to supply 3,000 public rental housing units on the southern site of Seoul Medical Center, Gangnam District strongly opposed it, even threatening litigation. Jung Soon-gyun, Mayor of Gangnam District, held an online press conference last month stating, "If the Seoul Metropolitan Government unilaterally changes the district unit plan, we will use all possible means, including administrative lawsuits, to block it." The Seoul Metropolitan Government has also stated it will not withdraw the plan, so the conflict remains ongoing.

The SETEC site in Daechi-dong is another location where the Seoul Metropolitan Government and Gangnam District previously clashed over site utilization. In 2015, when former Seoul Mayor Park Won-soon attempted to promote the construction of a second citizen hall on the SETEC site, Gangnam District issued a construction stop order on the SETEC site to halt the project. The SETEC site, along with the former Korea Electric Power Corporation site where Hyundai Motor Group’s Samsung-dong Global Business Center (GBC) is under construction, is considered a large-scale prime land in Gangnam.

Some interpret nominee Kim’s repeated expression of determination to supply half-price apartments and his public announcement of candidate sites as reflecting the Seoul Metropolitan Government’s intentions. The ‘SH 5 Major Innovation Plans’ jointly announced by the Seoul Metropolitan Government and SH on the 9th include a plan to actively supply land leasehold sale housing, known as half-price apartments. An SH official said, "We understand that a review has begun on converting sites originally intended for general sale by the Seoul Metropolitan Government into land leasehold sale housing."

Gangnam District stated that there was no prior coordination with the Seoul Metropolitan Government regarding the candidate sites for half-price apartments. A Gangnam District Urban Planning Department official said, "There has been no coordination with Gangnam District, and it appears to be a declaration of intent by the Seoul Metropolitan Government," adding, "Gangnam District’s position remains unchanged, and prior consultation and procedures must be followed."