"2 Million Won per Pyeong, 2-Year Grace Period for Interim Payments"... A Look at Saemangeum's First Residential Land [Real Estate AtoZ]

Smart Waterfront City, Saemangeum's First Urban Residential Space
International School and Hospital First... "Infrastructure Before Housing" Strategy
Real Estate Industry Divided Between Expectations and Concerns... Exceptional Terms Viewed Posi

Saemangeum Development Corporation will begin the first sale of residential land in the "Smart Waterfront City," which was created by reclaiming land near Saemangeum New Port in Gimje, Jeonbuk, this December. The company will offer land for detached houses and neighborhood living facilities. Unlike previous public development projects, which typically followed a "build houses first, infrastructure later" approach, this time the strategy is to establish the city’s foundation by prioritizing settlement conditions such as international schools and hospitals. The company has also proposed attractive terms, including a price of about 2 million won per pyeong and a two-year grace period for interim payments.

Kwon In-taek, Director of Investment Projects at Saemangeum Development Corporation, said during an on-site briefing for Ministry of Land, Infrastructure and Transport reporters held at the Wind Shelter near the waterfront city in Gimje on September 11, "The land development cost is just over 2 million won per pyeong," adding, "We expect the appraised value to be at a similar level." This is comparable to the price of detached housing sites in the Geomsan residential district, a prime location in Gimje, which also stands at around 2 million won per pyeong.

International School and Medical Infrastructure to Come First... Settlement Conditions Prioritized

Aerial view of Saemangeum Smart Waterfront City in Gimje, Jeonbuk, photographed on June 3 last year. Saemangeum Development Corporation

The detached housing sites will comprise 67 lots, each measuring 302 square meters (92 pyeong), and will be allocated through a general lottery. As this is the first sale, exceptional conditions will be applied. For example, for a site priced at 200 million won, buyers only need to pay a 20 million won (10%) down payment, with the interim payment due two years later. Director Kwon said, "Once the approval procedures for the development are completed, we plan to finalize the details through a board resolution," adding, "The interest-free terms commonly applied to public institution land supply will also be included."

The corporation plans to build living infrastructure first. Director Kwon explained, "Building only detached houses on a barren field will not be attractive," and added, "Unlike previous public development methods, we will first establish international schools and medical and living infrastructure to create settlement conditions, and then expand to multi-family housing." He cited his experience at Jeju Free International City Development Center (JDC), where he attracted an international school to Jeju, saying, "Initially, there were significant concerns about unsold lots, but once educational infrastructure was established, the city’s value increased dozens of times."

The corporation will announce a detailed roadmap for the international school in cooperation with North Jeolla Province within the year. Medical infrastructure will be expanded in stages, starting with both Western and Korean medicine hospitals in partnership with Wonkwang University. The neighborhood living facilities will cover a total of 8,820 square meters (about 2,600 pyeong) and will be supplied as two combined lots through competitive bidding. The company is currently in discussions with businesses to attract lifestyle convenience sectors.

Im Mihwa, Professor of Real Estate and Land Information at Jeonju University and head advisor for changes to the waterfront city’s integrated development plan, said, "Families looking for a place to live consider schools, hospitals, and living infrastructure first," adding, "If the waterfront city is to become a place for long-term residence rather than just an investment destination, it is essential to establish educational, medical, and cultural facilities before housing." Professor Im also noted, "Currently, many workers at Saemangeum Industrial Complex in Gunsan live in downtown Gunsan, but if the waterfront city provides new living infrastructure, it could absorb demand for relocation from the old city center of Gunsan."

Mixed Expectations and Concerns

Detached housing sites and neighborhood living sites within the Saemangeum Smart Waterfront City, which are being offered for the first time. Educational specialized facilities such as an international school are scheduled to be built opposite the detached housing sites. Saemangeum Development Corporation

The local real estate industry has mixed expectations and concerns about the success of the sale. A real estate agent in Gimje said, "It is difficult to guarantee the success of the sale due to the lack of infrastructure and the downturn in the real estate market," but added, "The situation could change if an international school and hospital are established." The agent also commented, "Since Saemangeum Industrial Complex successfully attracted companies worth 10 trillion won two years ago, over time, housing demand could come from workers, their families, and foreigners from various backgrounds."

Another agent observed, "Interest in the Saemangeum project among residents of North Jeolla Province is very high, so if settlement conditions are established, demand could increase," adding, "The project must proceed quickly for this to translate into actual settlement demand."

There are also predictions that initial demand for the sale will be driven by investors. The head of another real estate agency said, "There are inquiries about the waterfront city sale, but since it will take time to develop the infrastructure, people are hesitant to jump in," adding, "Those with ample resources are likely to bid for second homes or investment purposes, seeing the future value." Reactions to the sale conditions have generally been positive. Another agent explained, "Not requiring any interim payment at all means there is almost no initial capital burden," and added, "Such exceptional terms, rather than the sale price itself, will attract buyers’ attention."

First Urban Settlement Area in Saemangeum District... Targeting Completion in 2028

Aerial view of Saemangeum Smart Waterfront City in Gimje-si, Jeonbuk. Saemangeum Development Corporation

The Smart Waterfront City, located in the second zone of Saemangeum, covers 6.25 million square meters (2 million pyeong) and is a new city designed to accommodate over 10,000 households and 21,000 residents. The corporation completed land reclamation in June 2023 and began developing infrastructure, with a target completion date of December 2028.

According to the corporation, 21.5% of the total area will be residential land, and parks and green spaces will account for 27.3%. Inside the city, more than 5 kilometers of smart infrastructure circulation networks will be installed, enabling real-time operation of advanced services such as autonomous vehicles, unmanned delivery, and priority passage for emergency vehicles.

Na Kyunggyun, President of Saemangeum Development Corporation, emphasized, "This is the first sale promoted since the establishment of the corporation, and it is highly significant as it marks the first supply of an urban settlement area in Saemangeum," adding, "We will develop the waterfront city, which is on a scale comparable to Wirye New Town, into a self-sustaining city by incorporating residential, educational, medical, and industrial functions."