High Inflation and Redevelopment... Residents of Ssokbangchon Facing a 'Gloomy Lunar New Year'

Last Year Consumer Prices Rose 5.1%
Residents of Ssokbangchon Feeling High Inflation
Redevelopment Issues Also a Concern for Ssokbangchon Residents
"Afraid Another Incident Like Yongsan Tragedy Might Occur"

On the 17th, the narrow alley stream in Dongja-dong, Yongsan-gu, Seoul was swept by cold winds. Jeon In-hwa crossed the park heading toward the small room where she lives.
Photo by Gong Byung-sun mydillon@

"My head hurts." On the 17th, Jeon In-hwa (67) was limping as she walked through the empty park in the Dongja-dong gosiwon village in Yongsan-gu, Seoul. She said she was unable to pay this month's rent for her gosiwon room. Recently, with diabetes and spinal stenosis hitting her at the same time, her sudden expenses have increased.Jeon barely managed to get by by paying 310,000 won out of her 900,000 won basic living allowance for rent, using the rest to survive. She explained that despite reducing the amount she eats due to rising prices and sudden medical expenses, her spending still increased. Jeon said, "There is a chocolate-flavored snack I like, but recently its price went up from 3,000 won to 3,500 won," adding, "As prices rose, I held back on things I wanted to eat, but now my health is failing and I have reached a point where I cannot pay rent." The high inflation hit Jeon and other gosiwon village residents directly.

According to Statistics Korea on the 20th, consumer prices rose by 5.1% last year compared to the previous year. This is the highest figure since the 1998 foreign exchange crisis (7.5%). This year is not any easier. The government projected a 3.5% inflation rate for this year, but it expects the pressure on public utility fees such as electricity and gas bills, which directly affect the wallets of ordinary people, to increase.

Besides Jeon, other gosiwon village residents are also feeling the impact of rising prices. Kang Myung-ja (71) said, "The price of essential items like toilet paper has gone up by about 15,000 won in a year. Not to mention premium toilet paper," adding, "Every time I go shopping, things are expensive, so I am reducing the amount I eat. I live in a gosiwon with my husband, and it’s just depressing."

High Inflation and Redevelopment Issues... "If We Are Forced Out, We Are Helpless"

On the 17th, the building where Jeon In-hwa resides only had cold air and cold water coming out.
Photo by Gong Byung-sun mydillon@

What weighs down the gosiwon village residents is not only inflation. The redevelopment issue, which will determine where they can live, also gives them headaches. When Jeon met an acquaintance near the park, the gosiwon residents naturally brought up redevelopment. When Jeon said, "An elderly woman living in the yellow building next to the park said that a Seoul City Hall employee came one day and asked if she would stay after redevelopment," the acquaintance replied, "As always, only rumors spread, and redevelopment will be delayed again," and they argued back and forth.

The Dongja-dong redevelopment, discussed mainly by the Ministry of Land, Infrastructure and Transport since 2020, is expected to be in full swing this year. However, redevelopment is blocked by strong opposition from building owners. This is because it is proceeding as a public development project. The gosiwon building owners demand private development rather than public development, which cannot accommodate gosiwon residents and generate large profits. Furthermore, the building owners argue that public development infringes on private property rights.

The gosiwon residents expressed anxiety that they could be forced out at any time. Jeon said, "I know the gosiwon environment is not good, but it is also our space," adding, "If we are forced out from here, I have no idea where to go." She also added, "If Seoul City or the government forcibly demolishes and evicts us, I am afraid that something like the Yongsan Tragedy might happen here." The Yongsan Tragedy refers to the 2009 incident where a fire broke out during police suppression of evictees protesting redevelopment compensation issues. Six people died in that incident.

Ahead of Seollal, Jjokbang Counseling Center recruited residents of the jjokbangchon who would wear hanbok and take photos.
Photo by Gong Byung-sun mydillon@

While Jeon was arguing with her acquaintance, a government official posted a notice on the neighborhood bulletin board. It said that if gosiwon residents visit the gosiwon counseling center, they would have an opportunity to take photos wearing hanbok (traditional Korean clothing). Only then did Jeon realize that Lunar New Year was just around the corner.

Jeon limped back into her gosiwon room. Even in the middle of winter, the landlord does not install a boiler, so only cold water comes out, and cold air blows in through the loose window frames, but it is still a precious space for her. Jeon said, "I have spent Lunar New Year alone in a house with only cold water until now, but I have never felt as mentally exhausted as this year. I hope the worries caused by high inflation and redevelopment issues will disappear soon."