Rental Units with Han River Views?
Seoul City to Respond Flexibly, Maintaining Supply Volume
Possible Substitution with In-Kind Contributions or Cash Payments, as in The H Daechi Case
Seoul Mayor Oh Sehun has reportedly issued an internal directive to consider more flexible application of the social mix (mixed-sale and rental housing) policy. As conflicts with housing associations over the placement of rental units in Han River reconstruction complexes have continued, it appears that the city is shifting its stance from strictly adhering to principles to seeking practical alternatives.
Seoul Mayor Oh Sehun is attending the '10th Anniversary National Report Meeting of Unification and Sharing' held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the 26th. 2025.5.26. Photo by Kang Jinhyung
At a recent executive meeting, Mayor Oh instructed, "Review various operational measures that can maintain or even expand the supply of rental housing, as long as the fundamental philosophy of social mix is not undermined." The basic principle of evenly distributing rental housing across all buildings will be maintained, but in cases where it is structurally difficult to place rental units in certain buildings, such as those along the Han River, the city will allow for compensation through in-kind contributions.
Until now, the Seoul Metropolitan Government has enforced a strong social mix policy by mandating 'open lotteries' for all units without distinguishing between association and rental residents, and by encouraging the allocation of Han River views to rental units. However, recently, there have been a series of setbacks in projects such as Jamsil Jugong Complex 5 in Songpa-gu and Gongjak Apartment in Yeouido, as resistance from housing associations has intensified.
Recently, in Daechi-dong, Gangnam-gu, 'The H Daechi Edelweiss' conducted separate lotteries for sale and rental units, effectively violating the social mix policy. Nevertheless, the Seoul Metropolitan Government approved the project after requiring the association to make an in-kind contribution equivalent to 2 billion won, based on an appraisal. Regarding this, the city explained, "The relevant district office did not reflect the city’s guidelines in the management and disposition plan, so the lottery was completed, and we were concerned about potential harm to good-faith participants if it were invalidated."
To prevent such incidents from recurring, the Seoul Metropolitan Government plans to strengthen prior consultations with district offices and to introduce new penalty provisions for violations of the open lottery system. A city official stated, "We are reviewing flexible policy operations for the social mix policy to ensure rapid housing supply, but nothing has been finalized yet."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
