Hwang Sang-ha, President of SH Corporation, "Expanding Mirinae House Supply, Also Converting Planned Land Lease Volume"

Some Land Leasehold Units to Be Converted to Mirinae Houses
Considering Use of Reserved Land in Magok for Mirinae House Supply
Actively Promoting Land Sales... Emphasizing the Need for Marketing

Hwang Sang-ha, president of Seoul Housing and Communities Corporation (SH Corporation), identified the expansion of long-term rental housing 2 'Mirinae House supply' as his top priority since taking office. He plans to actively utilize SH Corporation's existing resources by converting land leasehold housing supply volumes into Mirinae Houses. As the first internally promoted president and a financial expert, Hwang also presented a blueprint to expand the sale of land owned by the corporation through marketing and deregulation to resolve the corporation's debt.

Hwang Sang-ha, President of SH Corporation, is answering reporters' questions at a luncheon meeting. Photo by Han Jin-joo

On the 11th, President Hwang met with reporters at a restaurant near Seoul City Hall in Jung-gu, Seoul, and said, "Mirinae House is one of the direct support measures for low birthrate policies. If Mirinae Houses are supplied in areas such as Seongdui Village and Guryong Village located in Gangnam, Seoul, it will have a significant impact," adding, "We plan to supply many Mirinae Houses while aiming to break even."

Maximizing 'Mirinae House' Supply... Considering Use of Land Leasehold and Reserved Land

President Hwang plans to convert some of the housing originally planned as 'land leasehold housing,' a key project of the previous president, into Mirinae Houses. He explained, "The previous president did not specify where more would be done because the designs were not finalized at that time. We intend to proceed well with the housing under the main subscription, and for those sites where designs were finalized at the end of last year but supply plans were not announced, we will supply them as Mirinae Houses."

He is also considering utilizing reserved land within the Magok complex for Mirinae House supply. Hwang said, "There is reserved land in the Magok Industrial Complex, which is oversupplied, and many commercial spaces are vacant. We plan to discuss with the city whether part of the reserved land can be converted into Mirinae House sites and equipped with commercial and convenience facilities. This is still in the planning stage."

Seoul City and SH Corporation have announced plans to use some of the purchased rental housing units as a kind of stepping-stone housing for Mirinae House tenants. Hwang explained, "Among the purchased rental units, 2,400 households will be supplied in connection with Mirinae Houses. Tenants will move in first, and if they have children, they can move to Mirinae Houses. We plan to supply about 5,500 units as purchased rental housing this year, and expect to achieve the target in the third to fourth quarter."

Pricing in preparation for the sale conversion of Mirinae Houses after 10 years is also a long-term task. Mirinae Houses can be occupied for at least 10 years and up to 20 years if children are born. Unlike existing long-term rental housing, a priority purchase right is granted as a childbirth incentive. Seoul City plans to grant priority purchase rights to tenants who have two or more children after moving into Mirinae Houses. On the 6th, the city also announced plans to relax conditions so that households with three or more children after moving into Mirinae Houses can purchase returned units of existing long-term rental housing (units past their lease expiration) after 10 years of residence.

President Hwang said, "When granting priority purchase rights after tenants have two or three children, the price is important, so I instructed research on this," adding, "There will be rental housing in redevelopment complexes such as Apgujeong, and while childbirth incentives should naturally be granted, we want to consider in advance the criteria for who should receive them."

He also said, "Analyzing the cost-benefit (B/C) of long-term rental housing shows that it amounts to 12 million KRW per year, or 240 million KRW over two years. While institutional rental housing supply cannot be neglected, I hope to secure and provide half to newlyweds and half to existing eligible groups."

SH Corporation Headquarters Building

"Land Sales and Marketing Are Crucial... Monthly Promotion Planned"

President Hwang emphasized that land sales are important to resolve SH Corporation's debt. The solution he proposed is 'marketing.' He said, "There is still about 5 trillion KRW worth of land left in SH Corporation, so I called the head of the sales division and instructed him to continuously promote the land for sale," adding, "Public development sites have designated allowed and disallowed uses, but I told them to listen to market opinions."

Hwang said, "From the land use planning stage, the marketing team participates so that even if development plans need to be changed to match trends, market opinions are heard when determining land use from the start," emphasizing, "We will provide information monthly to asset management companies and construction firms so that land can be sold reliably."

Regarding Seoul City's flagship development projects, Han River Riverside and Yongsan International Business District, he emphasized 'public interest.' Hwang said, "Since 1988, those who occupied the Han River area have maintained it, but it has been developed indiscriminately. I believe the river should be developed to match Seoul's dignity," adding, "SH Corporation participates to secure public interest and plans to structure this well. For the Yongsan International Business District, we will introduce a profit-type real estate system to set affordable rents and enable operations."

Furthermore, President Hwang clearly stated his intention to focus on development projects within Seoul in line with SH Corporation's mission. He said, "I am a Seoul expert. I have no intention of creating conflicts in other regions," explaining, "Although the Local Public Enterprises Act has been amended to allow business in other cities and provinces, this stems from concerns about regional extinction, not development policy. I have never considered developing the 3rd New Town."