[The Future of Yongsan] Redevelopment Accelerates in Seobuichon-dong, Excluded from Integrated Development

Jungsan Model Apartment Completed in 1970
High Location Value Due to Proximity to International Business District

Ichon 1 District, Dense with Old and Row Houses,
Also Undergoing Redevelopment Plan Change to 49 Floors

"How can it compare when looking down on Seobu Ichon-dong from a 100-story building in the Yongsan International Business District? We need to push forward quickly to take advantage of the halo effect."

A faded perspective drawing of the Yongsan International Business District 'Dream Hub' project was hanging in a real estate office in Seobu Ichon-dong. Seobu Ichon-dong was included in the international business district development zone in 2007 but suffered through a "painful seven years" after the development was canceled in 2013. Housing prices repeatedly soared and plummeted, and residents were divided over the pros and cons of integrated development. Aging residential areas in Seobu Ichon-dong, such as Jungsan Sibeom Apartments, Ichon Sibeom Apartments, and Ichon 1 District, which are over 50 years old, are accelerating redevelopment projects triggered by the international business district development.

The Jungsan Model Apartment, completed in 1970, consists of 6 buildings and 228 households. The land is owned by the Seoul Metropolitan Government, while the buildings are privately owned. The owners plan to purchase the land from the Seoul Metropolitan Government and proceed with reconstruction. (Photo by Hanjinju)

Walking with the international business district site at your back, you can see a seven-story old apartment building. Although it has been repainted pink, the paint is peeling in many places, and a warning sign labeled "Disaster Risk Facility (Grade D) Designation Notice" is posted on one side of the building. Jungsan Sibeom Apartments, completed in 1970, consist of six buildings with 228 households and are land leasehold housing. The land is owned by Seoul City, while only the buildings are privately owned. The reconstruction promotion committee has decided to purchase the land from Seoul City, and land appraisal is underway. Among the 266 building owners, 223 households (94%) have applied to purchase the land. A Yongsan District Office official said, "Building owners are conducting preliminary work to secure landowners as a pre-reconstruction procedure, and if necessary, after a safety inspection, the district designation process will proceed."

Jungsan Sibeom Apartments are the closest to the international business district within Seobu Ichon-dong, making their location highly valuable. Currently zoned as a Category 3 General Residential Area, if a maintenance zone is established, it can be upgraded to a quasi-residential area, significantly increasing the floor area ratio. However, there have been no transactions since 2017. Since the announcement of the international business district development plan, inquiries for investment purposes have slightly increased. Nevertheless, many hurdles remain, so the atmosphere is not conducive to actual transactions.

The representative of S Real Estate in Seobu Ichon-dong said, "The land appraisal price is expected to be about 1.5 to 2 times the publicly announced price, so owners need to prepare around 500 million KRW. Compared to other apartment prices, this is indeed a low price," adding, "If reconstruction proceeds well, it would be easy to reach 10 million KRW per pyeong (3.3㎡). I still believe there is profit margin."

Aged houses in Ichon 1 District and the panorama of Ichon Sibeom 1-dong (Photo by Han Jinju)

Walking with the international business district site on your left, you come across Ichon 1 District, where old houses and row houses are densely packed. With the relaxation of floor height restrictions along the Han River, the redevelopment plan, which initially aimed for a maximum of 35 floors, is being revised to 49 floors. The reconstruction promotion committee has been established for Ichon 1 District, and the project will proceed using the rapid integrated planning method. Changing the redevelopment plan to 49 floors will transform the area into four buildings with 800 households.

An official from the Ichon 1 District association said, "We are promoting the designation of the maintenance zone through the rapid integrated planning advisory method and plan to apply for the maintenance zone designation by the end of this month. First-tier construction companies have also shown interest and visited us." However, Ichon 1 District includes Ichon Sibeom Building 1, completed in 1970, which requires land purchase. Ichon Sibeom Apartments also have land owned by Seoul City and buildings privately owned, so procedures such as land purchase must be followed. Recently, Ichon Sibeom owners have been collecting consent forms for purchasing city-owned land.

Aged houses and row houses in Ichon 1 District (Photo by Hanjinju)

Although reconstruction is proceeding individually like this after the failure of integrated development of the international business district, some residents still desire integrated development. This is because the Han River view is blocked by high-rise apartments such as Daerim, Seongwon, and Bukhangang Apartments, and traffic congestion is expected if individual reconstruction is pursued. The representative of D Real Estate in Ichon-dong said, "If Ichon 1 District or Jungsan Sibeom develop in a piecemeal way and high-density apartments like Daerim remain, it won't be harmonious," adding, "It might be difficult to get a fair price when selling land to the international business district. This is a project to create the largest central area in Korea, so I hope they consider building it harmoniously through integration."

However, Seoul City maintains that integrated development in the previous manner is impossible. A Seoul City official said, "In 2007, integrated development was pursued to create waterways connecting to the Han River, but the situation is different now. If conflicts over integrated development recur, it will cause difficulties in the overall development plan," adding, "If redevelopment plans related to the international business district are submitted from nearby redevelopment complexes, we intend to actively cooperate."