Transition Team: "First Phase New Town Redevelopment Can Be Shortened"... Twice Daily Clarifications

Announcement of 'Review as Mid- to Long-Term Task' the Day Before
Interpreted as Speed Adjustment, Causing Backlash in the Area

Morning Statement "Proceeding According to Pledge Plan" Followed by Afternoon Clarification
Speculation of 'Crisis Management' Ahead of Election

Shim Gyo-eon, head of the Real Estate Task Force (TF) of the Presidential Transition Committee, is briefing on the reconstruction projects of the first-generation new towns such as Bundang and Ilsan in Gyeonggi-do at the Transition Committee press conference hall in Tongui-dong, Jongno-gu, Seoul on the 26th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Moon Chaeseok] The Presidential Transition Committee stated twice on the 26th that the redevelopment projects of the first-generation new towns in Gyeonggi-do’s Bundang and Ilsan are "proceeding as per President-elect Yoon Seok-yeol’s campaign promises." This clarification came after the committee announced the previous day that the "first-generation new town reconstruction projects are being reviewed as mid- to long-term national agenda items," which was interpreted in the market as a call for slowing down the projects, sparking controversy over a perceived change in stance. Analysts suggest that the committee sought to manage the situation as local public opinion worsened ahead of the June 1 local elections and the Bundang parliamentary by-election.

In an evening press release, the committee explained, "While general redevelopment projects typically take a considerable amount of time, the first-generation new towns can significantly shorten the required period through special legislation." The committee added, "Preparations to fulfill the President-elect’s campaign promises regarding the redevelopment of the first-generation new towns are proceeding as planned," and "various opinions from residents will be actively collected during the process."

Earlier that morning, Shim Gyo-eon, head of the real estate task force (TF), voluntarily held an unscheduled briefing at the Transition Committee office in Jongno-gu, stating, "There was a misunderstanding regarding the expression that the first-generation new towns are a mid- to long-term review task, so we would like to correct that." He emphasized, "The President-elect’s campaign promises are proceeding as planned, and efforts are underway to expedite the redevelopment projects."

Shim added, "However, redevelopment plans must be established to prevent chaos in the rental market caused by large-scale relocations," and "especially, securing exclusive complexes for relocation from the third-generation new towns is being reviewed from multiple angles." He further promised, "We will continue to gather diverse resident opinions throughout the planning process," and noted, "The first-generation new towns were proposed as a common campaign promise by both ruling and opposition parties, and related bills have been submitted to the National Assembly, so we expect no disagreements."

The previous day, the real estate TF of the Transition Committee, through Chief Deputy Spokesperson Won Il-hee, stated that the first-generation new town reconstruction projects are "being reviewed as mid- to long-term national agenda items." This cautious stance, interpreted as a call for slowing down, sparked strong backlash in first-generation new town areas such as Bundang and Ilsan. In Bundang, a first-generation new town area, Kim Eun-hye of the People Power Party is running as a candidate for Gyeonggi Province governor, and accordingly, a by-election for the Bundang-gap parliamentary seat is scheduled.

In political circles, it is interpreted that the Transition Committee issued additional clarifications to manage the situation as local sentiment worsened over the first-generation new town issue ahead of the June elections and as the Democratic Party of Korea seized the opportunity to attack. Notably, Kim Eun-hye, the candidate, was the one who proposed the special law in the National Assembly to shorten the required period by simplifying the approval procedures for the first-generation new town reconstruction projects.