[Yeouido Renaissance] Half-Century Matchbox Apartment, Drawing Up to 70-Story Skyline

Relaxation of Regulations by Oh Eases Gridlock in Reconstruction
Underground Competition Among Construction Companies to Select Contractor for First Reconstruction Project
Likely Diversification of Uniform Skyline

"Rusty water is a daily occurrence, and concrete is falling off the walls, so we can't afford to waste time again."

Entering the pilot apartment complex, the oldest in Yeouido, completed in 1971, countless cracks on the building's exterior walls hinted at its age. A resident met on the 1st emphasized, "We don't know who the next mayor will be, so we must proceed with the reconstruction procedures as much as possible during Mayor Oh Se-hoon's term, who supports reconstruction."

Shibeom, Jangmi, Sambu, Mokhwa, Seoul... As I climbed Wonhyo Bridge, the compact outlines of Yeouido's 'half-century-old' mid-rise apartments came into view at a glance. The monotonous riverside skyline, often called 'matchbox' because of its uniformity, did not quite fit Yeouido, which aims to be the 'Northeast Asia financial hub.' The 250m tall 63 Building right next to Shibeom Apartment and the high-rise buildings like Park One and IFC Mall behind Sambu and Mokhwa created an awkward scene.

However, the days when Yeouido's riverside apartments will draw a super high-rise skyline are not far off. Those who endured a 'decade of frustration' during former Seoul Mayor Park Won-soon's administration, when development was blocked, are now growing expectations for reconstruction under Mayor Oh Se-hoon's various deregulations allowing heights up to 200m (approximately 70 floors).

'Yeouido's First Reconstruction' Hanyang or Shibeom... Intense Behind-the-Scenes Competition Among Major Construction Companies to Secure the Title

The oldest pilot apartment built in Yeouido. Due to aging, there are numerous cracks on the walls. Photo by Onyu Lim ioy@

Shibeom reconstruction, which had been completely stalled for over 50 years, is recently gaining momentum. Last November, Seoul City's new planning proposal was finalized, transforming the existing 1,584 households into 2,500. The east side near the 63 Building can be rebuilt up to 65 floors, promising a dazzling skyline.

Additionally, 16 complexes built in the 1970s, including Hanyang, Sambu, and Daegyo, are pushing for reconstruction in Yeouido. The most likely candidate for 'Yeouido's first reconstruction' is the Hanyang Apartment, built in 1975. Seoul City has drafted a blueprint through the new planning proposal to develop it as a residential complex specialized for the financial hub. It is planned to be reconstructed from the existing 599 households to four buildings with up to 56 floors and 956 households.

Hanyang Apartment recently began the contractor selection process. On the 1st, a site briefing was held, attended by 10 major companies including Samsung C&T, Hyundai Construction, Daewoo Construction, GS Construction, DL E&C, POSCO E&C, Lotte Construction, Hoban Construction, HDC Hyundai Development Company, and Hyosung Heavy Industries, showing high interest.

A representative from a major construction company explained, "Because Yeouido holds significant regional symbolism, the rarity of being the first reconstruction means construction companies will compete with their company names on the line in the Hanyang Apartment bidding." He added, "Since nearby reconstruction complexes like Shibeom and Sambu are clustered, the outcome of this competition could influence future bids."

View of Yeouido apartments from the 63 Building observatory. Photo by Hyunmin Kim kimhyun81@

As Yeouido reconstruction becomes visible, prices, which had sharply declined during the real estate downturn, are rebounding. A 149.59㎡ unit in Hanyang Apartment changed hands on the 26th of last month for a record high of 2.63 billion KRW. It had plunged from 2.58 billion KRW in August 2021 to 2.1 billion KRW in April this year but was traded at 2.4 billion KRW in May before breaking the record. Similarly, a 135.8㎡ unit in Sambu Apartment was traded on the 10th at the highest price of 2.8 billion KRW. After recording 2.625 billion KRW in April 2021, it dropped to 2.3 billion KRW in March this year but surged to 2.7 billion KRW in June, setting a new high.

A 118.12㎡ unit in Shibeom Apartment was contracted last month for 2.33 billion KRW. Although not a record price, it rose more than 300 million KRW in seven months from the 2 billion KRW transaction in December last year. Tracing back to 1971, the initial sale price for that size in Shibeom Apartment was 4.22 million KRW. The price has increased more than 50 times in about 50 years.

Yeouido's educational facilities include six schools: Yeouido Elementary, Yoonjung Elementary, Yeouido Middle, Yoonjung Middle, Yeouido High, and Yeouido Girls' High. Yeouido Elementary, Middle, and High Schools all boast histories of over 50 years, while Yoonjung Elementary and Middle Schools were established over 40 years ago. Yeouido Girls' High also marks its 40th anniversary this year.

Yeouido Apartments, Neglected and Aged Since the 1970s... Facing a Turning Point

Yeouido has risen as a financial hub, but 16 complexes including Hanyang have aged and been neglected since the area was designated as an apartment district in 1976. Several reconstruction attempts were made but repeatedly failed.

Professor Park Hap-su, adjunct professor at Konkuk University's Graduate School of Real Estate, explained, "During Mayor Oh Se-hoon's term in 2011, as part of the Hangang Renaissance, reconstruction was promoted by upgrading the entire area to commercial zones, but up to 40% donation in kind caused conflicts with residents and failed. Later, Mayor Park Won-soon pushed for integrated development, but the district unit plan was delayed due to rising housing prices, and the will was broken again."

However, Mayor Oh's district unit plan, which abolished the 35-floor limit and allows up to 200m height and 800% floor area ratio, brought a turnaround. According to the district unit plan decision for Yeouido apartment district, reconstruction can build up to 70 floors by upgrading land use.

Mokhwa, Sambu, Hanyang, Samik, Eunha, Gwangjang Blocks 3-11, Gwangjang Blocks 1-2, and Miseong's eight complexes are upgraded to general commercial zones with a maximum floor area ratio of 800%. Four complexes?Jangmi, Hwarang, Daegyo, and Shibeom?adjacent to Yeouido High School, Yeouido Middle School, and Yeouido Girls' High School are upgraded to semi-residential zones with a maximum floor area ratio of 500%, considering sunlight rights and other issues.

Additionally, Mayor Oh supported the reconstruction through the new planning proposal. This plan can reduce the usual period for designating maintenance districts in general redevelopment projects from five years to less than two years, cutting the time by more than half.

However, to enjoy such deregulations, guidelines such as donation in kind set by Seoul City must be followed. Professor Park said, "The new planning proposal emphasizes improving citizens' access to the Hangang riverside. Such guidelines can rather increase the value of complexes, so if a proper balance of incentives and regulations is achieved, Yeouido reconstruction is expected to proceed smoothly." He added, "However, the reconstruction contribution refund system remains a significant obstacle."

Experts emphasize that a balance between public and private sectors is necessary for Yeouido reconstruction, which has faced repeated setbacks, to get on track.

Lee Seung-woo, a research fellow at the Korea Construction Industry Research Institute, said, "For Yeouido to be successfully developed, an appropriate division of roles between public and private sectors is essential. As seen in large-scale urban redevelopment cases in major cities like Hudson Yards in New York, Docklands in London, and Marunouchi in Japan, active public will accompanied by various incentives and deregulations is necessary."

Song Seung-hyun, CEO of City and Economy, also said, "As reconstruction shifts from low-rise to mid-rise and various project costs are increasing recently, securing project feasibility through public support is crucial from the private sector's perspective. Although there may be disagreements, if project feasibility is secured through donations such as opening the first floor, Yeouido reconstruction can proceed smoothly."