Halt on State Asset Sales?…Yongsan International Business District to Proceed with Land Sales Next Year [Real Estate AtoZ]

Seoul to Proceed with Land Sales Schedule as Planned
Orders Placed for Promotional Center Construction and Related Services

Regardless of the Ministry of Land, Infrastructure and Transport's position that the Yongsan International Business District should be included among properties prohibited from being sold as state-owned assets, the Seoul Metropolitan Government will proceed with its planned sales schedule next year as originally intended.

Yonhap News Agency

According to the Seoul Metropolitan Government and other sources on December 9, Seoul Housing & Communities Corporation (SH) issued a construction project management service order the previous day to oversee whether the construction of the Yongsan International Business District promotional center is proceeding as designed. This follows the service order for the promotional center’s construction issued at the end of last month, marking the start of full-scale promotional activities necessary for land sales. A groundbreaking ceremony was also held in the same month.

The promotional center will be built as a single three-story building on Block B3 of the business complex zone, adjacent to Yongsan Electronics Market. The total floor area will be 1,991.37 square meters. If a contractor is selected without delay, construction will begin this month and be completed by March next year.

Despite the Ministry of Land, Infrastructure and Transport's claim that the Yongsan Maintenance Depot site, where the international business district will be located, is subject to the President’s directive to "completely halt the sale of government assets," the sales schedule is moving forward. An official from the city government stated, "The Ministry of Economy and Finance needs to establish guidelines for the sale of state-owned assets, but since there are no guidelines yet, we do not intend to change the land sales schedule." The official added, "KORAIL has not received any notice either, and once a policy is announced, we will organize the sales direction and request land sales approval accordingly."

The city government, SH, and KORAIL began construction of the basic infrastructure last month. They had planned to begin land sales starting next year. Once the infrastructure construction is completed in the second half of 2028, private developers who have purchased the land are expected to start their projects as well.

There are also voices expressing confusion over the sudden government directive. An industry expert commented, "It does not make sense to suddenly call for a halt to land sales at this stage," adding, "If the number of housing units increases too much, more schools will need to be built, so the Ministry of Land, Infrastructure and Transport should take a more systematic and long-term approach."

Meanwhile, disagreements between the Ministry of Land, Infrastructure and Transport and the city government regarding the international business district are becoming more frequent. The central government recently requested that the housing supply be expanded to 10,000 units. The city government, SH, and KORAIL had originally planned to supply 6,000 units. The city government believes that if the number of housing units is significantly increased, the project timeline could be further delayed due to changes in basic infrastructure. A city official said, "Nothing has been finalized regarding the housing supply, and the Ministry of Land, Infrastructure and Transport will announce the details."