99% of Military Facility Protection Zones Released in the Seoul Metropolitan Area... Development Projects Gain Momentum

Most of Gyeonggi including Gimpo and Paju, plus Seocho Umyeon-dong in Gangnam area included... Positive Impact on Land Supply Market
Many Regulations Like Land Transaction Permits and Time Needed for Detailed Plans... Market Impact Expected to Be Limited

The Democratic Party of Korea and the government have decided to lift military facility protection zones covering an area 3.1 times the size of Yeouido, raising expectations that various development projects in the Seoul metropolitan area will gain momentum. Most of the areas where the restricted protection zones are being lifted are located in Seoul, Gyeonggi, and Incheon, which are part of the metropolitan area, and this is interpreted as a signal to increase the insufficient supply in the metropolitan area. However, despite being a positive factor for regional development and residents' property rights, many parts of the metropolitan area are still designated as land transaction permission zones, so the impact on the market is expected to be limited. Some critics argue that this is a populist policy emerging ahead of the presidential election.

◇ 99% of the lifted areas are in the metropolitan area, including Gangnam district = The area attracting the most attention is the region being lifted from the 'restricted protection zone.' Once lifted from the restricted protection zone, construction activities can proceed without military consultation. Among the total 9,053,894㎡ of protection zone areas being lifted, Gyeonggi Province accounts for the majority. In Gyeonggi, the lifted areas include △Gimpo City 250,702㎡ △Paju City 4,979,153㎡ △Goyang City 2,626,888㎡, totaling 7,856,743㎡.

Additionally, Seocho-gu's Umyeon-dong in Seoul (53,466㎡) and Majon and Bullo-dong in Seo-gu, Incheon (1,111,610㎡) are also included in the lifted areas. Outside the metropolitan area, the only place being lifted from the restricted protection zone is Taejang-dong, Wonju City, Gangwon Province (32,075㎡). These areas are located near border regions where new towns, villages, and industrial complexes have been established, and local governments requested the lifting. According to the Ministry of National Defense, lifting the protection zones now allows local residents to exercise their property rights.

The areas relaxed from controlled protection zones to restricted protection zones total 3,699,026㎡. This includes parts of Jung-gu, Michuhol-gu, and Yeonsu-gu in Incheon, as well as Ganghwa-gun, Yangju-si, Gwangju-si, and Seongnam-si in Gyeonggi Province. The area around Cheorwon-gun in Gangwon Province, where military units are concentrated, is also included. While new construction was generally prohibited in controlled protection zones, relaxation to restricted protection zones allows new construction after military consultation.

◇ Positive supply signal but limited market impact = The lifting of military facility protection zones is expected to invigorate the real estate market in areas where development was previously restricted. In particular, large-scale development projects in Gyeonggi Province are anticipated to gain momentum.

Seo Jin-hyung, president of the Korea Real Estate Society and professor at Gyeongin Women's University, said, "Lifting military facility protection zones in the metropolitan area can have a positive impact on the land supply market. Especially, the Seocho Umyeon-dong area appears to be a forward area to increase supply in regions desired by demanders. Given the shortage of land in Gangnam, lifting the protection zone can be interpreted as a signal to increase supply."

However, the impact of this measure on the real estate market is expected to be limited. Although it is undoubtedly a positive factor for regional development and residents' property rights, other regulations such as land transaction permissions still apply, and it is expected to take considerable time to establish concrete plans. For this reason, some real estate communities criticize the policy as populist, emerging ahead of the presidential election.

Song Seung-hyun, CEO of City and Economy, said, "It appears to be a will to develop areas that were previously undevelopable in various ways, which is expected to affect supply," but added, "However, it will take considerable time to establish concrete plans after the lifting, so it does not seem easy to start projects immediately."