[Exclusive] Seoul Cuts Budget for Eliminating Semi-Basement Homes, Citing Poor Performance Despite Promise

From 536.8 Billion Won in 2023 to 208.5 Billion Won This Year
Seoul City: "Budget Cut Due to Poor Performance"
Lee Yeonhee: "Measures Needed to Improve Execution Rate"

Since the basement flooding accident in Sillim-dong, Seoul in 2022, the Seoul Metropolitan Government has implemented measures to gradually eliminate semi-basement homes. However, it has been confirmed that the budget for this initiative has decreased each year. The city government explained that the budget was reduced due to a low execution rate of the project, but there are criticisms that, in order to achieve the goal of reducing semi-basement residences, measures to improve the execution rate within the given budget must be found.

According to data on the "Required Budget for Reducing Underground Residences" submitted by the Seoul Metropolitan Government to Assemblywoman Lee Yeonhee of the National Assembly's Land, Infrastructure and Transport Committee on the 21st, the budget related to the purchase of semi-basement homes and similar projects was 536.8 billion won in 2023, 418.8 billion won last year, and has been halved to 208.5 billion won this year.

Heavy monsoon rain is forecasted on the 8th, and a flood prevention water barrier panel has been installed on the basement window near Namseong Sagye Market in Dongjak-gu, Seoul. 2024.07.08 Photo by Kang Jin-hyung

The project that saw the largest budget reduction was the semi-basement purchase project, which decreased from 446.6 billion won in 2023, to 360.9 billion won last year, and to 159.3 billion won this year. The semi-basement purchase project involves the Seoul Metropolitan Government, through the Seoul Housing & Communities Corporation (SH), prioritizing the purchase of semi-basement homes in flood-prone areas, then either closing them or converting the underground floors to non-residential use. The city government explained the budget cut by stating, "Due to underperformance compared to the target, we reduced the target volume for more efficient budget management." The low execution rate was attributed to "the actual appraised value being lower than sellers' expected prices, and limited budget support from the government, resulting in financial constraints."

The budget for housing upgrades for vulnerable groups decreased from 7.8 billion won in 2023 to 7.4 billion won last year and this year. The housing upgrade project provides support for moving into rental housing and settling in for housing-vulnerable groups who have lived in semi-basement residences for more than three months. The reason for the budget reduction is the same as for the semi-basement purchase project. The city government explained, "The budget was reduced considering the actual relocation performance," and added, "Due to insufficient results compared to the targets, the budget was not fully executed." The budget execution rates for housing upgrades were 76% in 2023, 82% last year, and 58% as of September this year.

Assemblywoman Lee stated, "The Seoul Metropolitan Government has continuously promised to resolve the semi-basement housing issue, but in reality, the project performance is extremely poor due to low execution and relocation rates. Neglecting this outdated housing type, which threatens citizens' safety, is a serious administrative failure. Now, it is imperative to establish practical measures to increase the execution rate and ensure responsible policy implementation."