A New City for Seoul Retirees to Be Built in Samcheok, Gangwon... Focused on Medical Care and Leisure

Gold City in Provinces, Gold Town in the Capital Area
Seoul Vacant Houses Purchased for Young Residents' Housing Use
Ministry of Land and SH Under Legal Review for 3rd New Town Development

Facing a super-aged society, the Seoul Metropolitan Government is set to actively develop Gold Cities for retirees in their 50s and 60s in collaboration with the Seoul Housing and Communities Corporation (SH). Starting with Gangwon Province, the plan is to build new towns nationwide equipped with jobs, medical services, and leisure facilities to alleviate Seoul's housing issues while revitalizing local cities at risk of extinction. Additionally, the concept will be expanded to the 3rd phase of new towns, promoting the development of Gold Towns. However, since SH is a public corporation under the Seoul Metropolitan Government, legal review remains a significant hurdle.

Seoul, approaching a super-aged society, is set to actively develop a Gold City for retirees in their 50s and 60s in collaboration with Seoul Housing and Communities Corporation (SH). The photo shows Florida, a state in the U.S. recognized as a retirement city. [Image source=Getty Images]

On the 8th, the Seoul Metropolitan Government and SH signed a memorandum of understanding with Gangwon Province, Samcheok City, and Gangwon Development Corporation to promote the Gold City project. Gold City is a project that supports the relocation of Seoul retirees who wish to live comfortably at a lower housing cost compared to Seoul by building new towns with jobs, medical, and leisure facilities in regions with pristine natural environments. The existing homes owned by migrants in Seoul will be purchased or leased by the public sector to be used as retirement funds, and plans are being considered to re-supply these homes to workers and newlyweds. This initiative was devised to address Seoul's urban housing problems and to revitalize regions facing extinction.

Under this agreement, the Seoul Metropolitan Government and SH will collaborate with partner organizations to implement a pilot Gold City project. Specifically, they will cooperate in areas such as ▲investigating and selecting pilot project sites for Gold Cities in Gangwon Province, including Samcheok ▲dividing roles among partner organizations and forming and operating a working-level consultative body for the pilot project ▲joint research on analyzing the effects of Gold Cities.

SH is also promoting the creation of 'Gold Towns' in the Seoul metropolitan area adjacent to Seoul, including the 3rd phase of new towns. Kim Heon-dong, president of SH, recently revealed the Gold Town concept in an interview with Asia Economy, stating, "While the Korea Land and Housing Corporation (LH) has been unable to take action, SH, with its financial strength, will step up to create 'premium new towns'." At that time, President Kim emphasized that Gold Towns are "a nationally necessary policy for the circulation between younger and retired generations."

Seoul Mayor Oh Se-hoon and Gangwon Governor Kim Jin-tae are signing a "Friendship Exchange Agreement for Mutual Development" at the Gangwon Provincial Office on the 8th.
[Photo by Gangwon Province] [Image source=Yonhap News]

In response, the Ministry of Land, Infrastructure and Transport has requested an official interpretation from the Ministry of the Interior and Safety regarding whether SH can develop the 3rd phase of new towns. A ministry official explained, "Since SH is a company funded by the Seoul Metropolitan Government, we are verifying whether it is legally permissible for SH to conduct projects in Gyeonggi Province, which is outside its jurisdiction."

However, even if there are no legal issues, considering that new town development projects involve trillions of won in costs and take decades to recover investments, discussions with the Seoul Metropolitan Government and the Seoul Metropolitan Council are expected to be necessary. If SH proceeds with developing the 3rd phase of new towns, areas such as Gwangmyeong-Siheung, Uiwang-Gunpo-Ansan, and Hwaseong Bongdam 3, where resident compensation has been delayed, are likely to be targeted.