"Landowners Save on Taxes, District Secures Parking Spaces"... Gangnam-gu Turns Private Land into Public Parking Lot

Temporary Public Parking Lot with 2-Year Agreement
45 Spaces in Nonhyeon-dong to Begin Operation Next Month

Seoul's Gangnam-gu (District Mayor Cho Sungmyung) has established a temporary public parking lot with 45 spaces on privately owned vacant land at 277-23 and 24 Nonhyeon-dong (covering an area of 1,752 square meters), and will begin full-scale operation starting in May.

Temporary parking lot on private land in Nonhyeon-dong created by Gangnam-gu. Provided by Gangnam-gu.

This project utilized land provided free of charge after negotiations with owners burdened by property taxes. It marks the first time Gangnam-gu has created a public parking lot on private land. It is considered a successful example of public-private cooperation, as parking space was secured without requiring a large budget.

This land was classified as vacant after a building was demolished and new construction was delayed. Vacant land is subject to comprehensive land taxation, resulting in high property and comprehensive real estate taxes for owners. Owners who were unable to begin construction immediately due to unavoidable circumstances faced a heavy tax burden and continuously filed complaints.

The district addressed this issue by proposing the idea of utilizing the land as a public parking lot. By applying a non-taxation provision in the Local Tax Act for "free use for public purposes," Gangnam-gu reached an agreement with the landowners for free use of the land. As a result, the owners benefit from property tax exemptions and reductions in comprehensive real estate taxes during the parking lot operation period, while the district achieves increased public convenience. Both parties gain these advantages simultaneously.

The parking lot will be operated for two years, from May this year until June 2027, and the allocation of resident-priority parking spaces will begin in May. Considering that creating a single parking space typically costs between 100 million and 200 million KRW, this case is recognized as an excellent example that not only alleviates parking shortages but also improves administrative efficiency and reduces budget expenditures.

Building on this case, the district is also pursuing institutional improvements. Under the current Local Tax Act, if construction does not begin within six months after demolition, the land is classified as vacant and subject to high tax rates. However, in practice, it often takes more than six months to prepare for construction. To address this, Gangnam-gu has drafted an amendment to the Local Tax Act to extend the grace period for starting construction from six months to one year, and has officially submitted this proposal to the Seoul Metropolitan Government as a task for local tax system reform.

District Mayor Cho Sungmyung stated, "This project is a model case in which both the public and private sectors benefit through the public use of private land. We will continue to listen to residents' concerns and pursue creative administration that actively seeks solutions to problems."