Proposal Submission for Designation of 495,000㎡ Yongsan Railroad Maintenance Depot Site by Project Operator on the 14th
Rapid Implementation of Resident Inspection - Relevant Agency Department Consultation - Urban Planning Committee Advisory Procedures
Yongsan-gu, Seoul (District Mayor Park Hee-young) received a proposal for the designation of the International Business District on the 14th and is accelerating administrative procedures to complete the district designation within the first half of this year.
The administrative procedures for urban development projects are broadly divided into three stages: ▲designation of the urban development project district (including development plans) ▲approval of implementation plans ▲commencement and completion of construction.
Currently, at the ‘urban development project district designation’ stage, Yongsan-gu, which holds the authority to initiate urban development projects, will conduct a public inspection notice of the development plan (draft) for residents in March and consult with related departments following the receipt of the proposal. It will then comprehensively review opinions from residents and related organizations. The district plans to promptly seek advice from the district urban planning committee and submit the district designation document to Seoul City.
Once the Yongsan International Business District is established, the Yongsan area will be transformed into a new business district. Currently, Seoul’s three major business districts?Gwanghwamun, Gangnam, and Yeouido?form a triangular axis.
As of December 2023, Gangnam-gu has the highest number of jobs in South Korea, with approximately 710,000. After the completion of the Yongsan International Business District project, an additional employment effect of 140,600 jobs will increase the total number of jobs in Yongsan-gu to around 300,000.
The number of housing units will also increase by 6,000. Approximately 3,500 units of general apartment-style multi-family housing (including 875 rental units) and 2,500 officetel units are planned to be supplied.
Since last year, the district has been preparing a ‘Comprehensive Transportation System Improvement Plan,’ including traffic plans related to the development of the International Business District. The district will review and coordinate with Seoul City on ways to effectively accommodate the expected increase in floating population and logistics, aiming for a smart eco-city based on public transportation.
District Mayor Park Hee-young stated, “For the Yongsan International Business District to lead new industries, it must harmonize with the surrounding areas,” adding, “The development of surrounding areas such as aging apartments and Yongsan Electronics Market should be considered together with the skyline of the International Business District.”
The location of the Yongsan International Business District urban development project is in Hangang-ro 3-ga 40-1 area, Yongsan-gu. Covering an area of 495,000 square meters, it will be transformed into a city within a city where activities necessary for work, residence, and leisure culture can be resolved within walking distance.
Seventy-three percent of the project site is owned by Korail, and 27% by the Ministry of Land, Infrastructure and Transport and others. The project is jointly implemented by Korail and SH Corporation at a 7:3 equity ratio. Public infrastructure will be developed first, followed by private entities purchasing individual lots for development.
According to the draft development plan, the area for infrastructure such as roads and green spaces is 198,266 square meters (40.1%), and the complex land to be sold to the private sector for buildings is 296,335 square meters (59.9%).
The complex land is divided into four zones according to the main use of the district: ▲International Business ▲Business Complex ▲Business Support ▲Complex Culture.
The International Business Zone covers 88,557 square meters (17.9%) and is divided into four blocks. The existing land use designation of third-class general residential area will be upgraded to ‘central commercial area,’ with a maximum floor area ratio of up to 1700%.
The Business Complex Zone surrounds the International Business Zone, consisting of 10 blocks covering 104,905 square meters (21.2%). The Business Support Zone consists of 5 blocks covering 95,239 square meters (19.3%) and is located in a linear form surrounding the Business Complex Zone.
The Business Complex and Support Zones are planned to be upgraded to ‘general commercial area’ or similar, with an average floor area ratio of about 900% for the entire project district. The Complex Culture Zone consists of one block of 7,634 square meters (1.5%) and is located closest to Yongsan Station.
Once the district is designated in the first half of this year, infrastructure construction is expected to begin in the second half of 2025, with occupancy starting in the early 2030s. The total project cost is approximately 51 trillion KRW, with Korail and SH Corporation investing 16 trillion KRW in the first phase of infrastructure development.
The land cost for the Yongsan Maintenance Depot project site is currently estimated at about 8 to 10 trillion KRW, and infrastructure construction costs are expected to be around 4 to 5 trillion KRW. Including the project costs of private developers who purchase land in the second phase, the total reaches 51 trillion KRW.
Park Hee-young, Mayor of Yongsan-gu, emphasized, “I am pleased to be part of this historic moment as Yongsan transforms into a leading innovative city in Asia,” and added, “We will devote all efforts to ensure the successful promotion of the development.”
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