Seongnam City: “Only Bundang Faces Reverse Discrimination”... Direct Confrontation with MOLIT’s Reconstruction Restrictions
“You Ignored Our Greenbelt Release Proposal, and Now You Blame Relocation Capacity?”
Strong Response: “Fact Distortion by Politicians Is Defamation of Public Officials”
Seongnam City in Gyeonggi Province (Mayor Shin Sangjin) has launched a direct criticism at the central government over the “Phase-1 New Town Redevelopment,” a key task in the national housing policy. On February 20, Seongnam City issued an official statement arguing that the government’s decision to freeze the reconstruction supply in Bundang is the result of a policy misjudgment, and strongly called for the immediate withdrawal of the supply cap.
Seongnam City stated, “In December 2024, the Ministry of Land, Infrastructure and Transport declared its policy to support reconstruction without creating separate relocation complexes, instead managing relocation demand,” adding, “Based on the judgment that there is sufficient capacity to supply 70,000 housing units over five years in the Phase-1 new towns, the ministry took the position that separate relocation complexes were unnecessary.”
The city continued, “However, in the housing supply measures announced in September 2025, while the 2026 reconstruction supply was expanded to 43,200 units, only Bundang was subjected to reverse discrimination, with its supply frozen and even the carry-over capped on the grounds of ‘relocation capacity.’”
It further stated, “This is the result of a policy miscalculation that overestimates reconstruction demand in other Phase-1 new towns and underestimates demand in Bundang,” and emphasized, “In the case of Ilsan and Jungdong, the number of units designated as leading districts is zero, and at this rate there is a high possibility that a large-scale non-designation situation will be repeated in 2026.”
Seongnam City said, “The total volume of reconstruction in the Seoul metropolitan area planned by the government for 2026 is 69,600 units,” and added, “Expecting to achieve this target while restricting supply in Bundang, where demand is high, is a calculation detached from reality.”
The city went on to say, “Only by immediately lifting the supply restrictions can Bundang substantively support the government’s supply targets and contribute to stabilizing the housing market in the metropolitan area,” adding, “Seongnam City already has sufficient administrative capacity and a strong foundation of resident participation, and is prepared to absorb the planned supply.”
It also stated, “We officially request the removal of the carry-over restriction on supply,” and added, “We cannot help but question whether it is truly a rational supply policy to tie up supply in the area with the highest demand.”
Regarding the Ministry’s plan to manage relocation demand, Seongnam City said, “The Ministry of Land, Infrastructure and Transport announced that, under the principle of ‘expanding supply first, then managing relocation demand,’ it would use the reconstruction of old public rental housing as a relocation measure and adjust the volume of projects approved for management and disposal plans, but in reality this has not been implemented.”
The city further pointed out, “Since January 2025, Seongnam City has consistently proposed the release of greenbelt zones and the utilization of national and public land to stabilize the real estate market and secure relocation capacity for the Phase-1 new towns, but the Ministry has not accepted these proposals,” and added, “We cannot help but question whether the government truly has the will to practically resolve the housing shortage in the metropolitan area.”
Along with this, Seongnam City also expressed strong regret over certain claims raised within political circles.
Seongnam City stated, “The distortion of facts being raised by some in the political sphere disparages the efforts of Seongnam City public officials and damages their reputation,” and stressed, “Attempts to shake the administration with baseless assertions must stop.”
Seongnam City concluded, “We once again strongly urge the withdrawal of the reconstruction supply restrictions in Bundang,” and added, “Regardless of political gains or losses, a responsible decision is needed that squarely faces the will of residents and the realities of the market.”
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