Oh Sehoon Visits Sewoon District: "Preservation and Development Can Coexist"... Many Hurdles Remain Before Groundbreaking [Real Estate AtoZ] (Comprehensive)

Oh Sehoon Holds Resident Meeting in Sewoon District
Reviews Bottlenecks and Details Project Timeline

Seoul Mayor Oh Sehoon is making a speech during his visit to Sewoon Shopping Center on the 4th. Photo by Lee Jungyoon

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

On the 4th, Mayor Oh announced in District 4 that the city would continue to pursue the redevelopment project, as it would allow for the revitalization of aging areas and the provision of green spaces. The event was held to hear residents' opinions and to clarify the project timeline.

During the meeting, Mayor Oh stated, "Green spaces offer comfort and solace in the midst of a demanding urban life," adding, "It is certainly possible to preserve and highlight the value of national heritage and cultural assets while also developing and harmoniously advancing the city."

A resident attending the meeting commented, "Currently, the roughly 130 remaining landowners have lost their rental income, and the interest on relocation loans is now nearly equal to the principal, threatening our very livelihoods. There is no time left to delay, yet the government is ignoring the real-life struggles of landowners and focusing solely on political disputes, which is deeply regrettable." The resident also said, "Sewoon District 4 is not subject to the World Heritage Impact Assessment, so please do not try to persuade us residents."

In response, Mayor Oh explained, "While Seoul Housing & Communities Corporation (SH Corporation) is the entity that applies for the World Heritage Impact Assessment, it cannot do so unilaterally; resident consent is required. If residents are unwilling to consent, the city has no legal grounds to request it."

He further stated, "Some people are inciting fears that if the city develops this area according to its plans, it will be delisted as a World Heritage Site. In reality, it is the responsibility of government officials to find ways to balance development and heritage preservation."

The city plans to ease regulations on building height and floor area ratio in the Sewoon District and to expand parks through public contributions, creating a 'green ecological downtown' three times the size of Gwanghwamun Square. For District 4, the maximum height limits have been changed from 55 meters along Jongno and 71.9 meters along Cheonggyecheon to 101 meters along Jongno and 145 meters along Cheonggyecheon. This will allow for the creation of approximately 13,100 square meters of open green space on private land.

However, the National Heritage Administration has pushed back, expressing concerns that the project could negatively impact Jongmyo's "Outstanding Universal Value (OUV)." There are worries it could damage the view in front of Jongmyo. 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 National Heritage Administration is seeking to newly designate the Jongmyo area as a World Heritage District 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, are supporting the call for such an assessment.

Additionally, the issue of land disposal by Hanho Construction, which owns about 10% of the project site, must be resolved. There are suspicions that the city did not establish a mechanism to recoup excess profits when it significantly relaxed the floor area ratio for District 4 due to Hanho Construction's lobbying, prompting the company to announce its intention to sell its land. To avoid misunderstandings and controversy, Hanho Construction decided to sell its entire stake to SH Corporation.

SH Corporation has stated that it is "reviewing" the purchase request, but last year its debt alone amounted to 20.0236 trillion won. There are projections that its debt will rise to 22 trillion won this year. With SH Corporation also needing to invest funds in the Yongsan International Business District and Guryong Village, it is expected to be difficult for the company to readily acquire Hanho Construction's stake.

Hanho Construction has indicated that if SH Corporation cannot purchase its land, it will sell it to the private sector. However, with fierce political disputes surrounding District 4, any construction company would be hesitant to proceed with the acquisition. Risks such as project delays and rising financing costs could also have negative repercussions.

In the video "Mayor Oh Sehoon: All About Jongmyo and Sewoon District 4 Issues," released the previous day, Mayor Oh emphasized, "For residents of the Sewoon District, who have already experienced more than 20 years of delays, being told to undergo an impact assessment that could take more than four years is, in effect, telling them to abandon the project." He stressed that a World Heritage Impact Assessment cannot be forced.

Nam Jin, a professor of urban engineering at the University of Seoul, explained, "We need to enhance the competitiveness of our city center and ensure it becomes a valuable asset for the future, but if the issue becomes politicized without alternatives, it will be difficult to move the project forward. Architectural design can sufficiently indicate which spaces must be historically preserved, so it would be desirable to proceed with discussions based on such approaches."