Oh Sehoon Stresses Commitment to Sewoon District 4 Redevelopment... Multiple Hurdles Remain Before Groundbreaking [Real Estate AtoZ]

Oh Sehoon Visits Sewoon District for Resident Meeting
Bottlenecks Reviewed, Timeline Detailed
Challenges Remain Despite Determination, Including Hanho Construction Land Sale

Seoul Jongmyo Shrine and Sewoon District 4 area. Photo by Yonhap News

Oh Sehoon, the Mayor of Seoul, visited Sewoon District 4 in front of Jongmyo Shrine, once again expressing his determination to push forward with the redevelopment project. He stated that the city would review obstacles to the project through a resident meeting and specify the implementation schedule. However, several conflicts must be resolved before groundbreaking can begin.

On the morning of December 4, Mayor Oh announced at District 4 that the city would continue to pursue the redevelopment project, as it would allow for the renewal of the aging area and the provision of green spaces. The event was organized to listen to residents' opinions and to detail the project timeline.

The city plans to ease regulations such as building height and floor area ratio in the Sewoon District and expand parks as a public contribution, aiming to create a "green ecological downtown" three times the size of Gwanghwamun Square. In line with this policy, the maximum building heights in District 4 have been changed from the original 55 meters along Jongno and 71.9 meters along Cheonggyecheon to 101 meters and 145 meters, respectively. Through this, approximately 13,100 square meters of open green space will be created on private land.

However, the Cultural Heritage Administration has opposed the plan, stating that it is concerned about the potential negative impact on the "Outstanding Universal Value" (OUV) of Jongmyo Shrine. There are concerns that the project could damage the landscape in front of the shrine. Last month, UNESCO also recommended a World Heritage Impact Assessment. This system requires notification to UNESCO and an impact assessment when development projects are planned near World Heritage sites. The Cultural Heritage Administration is seeking to newly designate the Jongmyo area as a World Heritage site and is demanding a World Heritage Impact Assessment. Not only the ruling party but also Lazare Eloundou Assomo, Director of the UNESCO World Heritage Centre, is supporting the call for an impact assessment.

In addition, the issue of land disposal by Hanho Construction, which owns about 10% of the project site, must also be resolved. There have been suspicions that the city's decision to significantly relax the floor area ratio in District 4 without establishing a mechanism to recoup excess profits was influenced by Hanho Construction's input, prompting the company to announce its intention to sell the land. To avoid misunderstanding and controversy, Hanho Construction has decided to sell its entire stake to Seoul Housing and Communities Corporation (SH).

SH has stated that it will "review" the acquisition request, but its debt amounted to 20.236 trillion won as of last year. This year, debt is expected to increase further, possibly reaching 22 trillion won. With SH also needing to allocate funds to the Yongsan International Business District and Guryong Village, it is expected to be difficult for the corporation to readily acquire Hanho Construction's stake.

Hanho Construction has said that if SH cannot purchase the land, it will sell to the private sector. However, given the intense political debate surrounding District 4, any construction company would be hesitant to make the purchase. Risks such as project delays and rising financing costs may also have a negative impact.

In a video titled "One-Shot Mayor Oh Sehoon - Comprehensive Review of Jongmyo and Sewoon District 4 Issues" released the previous day, Mayor Oh stressed, "Telling residents of the Sewoon District, who have already faced delays of more than 20 years, to undergo an impact assessment that could take more than four years is essentially telling them to abandon the project," emphasizing that a World Heritage Impact Assessment cannot be forced.

Nam Jin, Professor of Urban Engineering at the University of Seoul, explained, "We need to enhance the competitiveness of our downtown area and ensure it becomes a future asset, but if the issue becomes politicized without alternatives, it will be difficult to move the project forward. Architectural design can sufficiently imply that certain spaces should be preserved for historical reasons, so it seems desirable to proceed with discussions based on such proposals."