Seoul Speeds Up Reconstruction and Redevelopment... "85,000 Housing Units to Break Ground in 3 Years" (Comprehensive)

Six-Item Rapid Groundbreaking Package... KRW 50 Billion in Relocation Loan Support
Reviewing Application of 4-5% Interest Rates
Groundbreaking Volume for 2026-2028: Eunpyeong Has the Most, Hangang Belt Remains Strong
30,000 Units to Break Ground This Year

Oh Sehoon, Mayor of Seoul, is speaking at the "Rapid Groundbreaking for 85,000 Housing Units" core supply strategy announcement for the housing project held at Seoul City Hall on the 26th. Photo by Yonhap News

The Seoul Metropolitan Government will shorten administrative procedures such as reconstruction and redevelopment reviews for the Hangang Belt areas including Yongsan and Dongjak, and will break ground on 85,000 housing units within the next three years. It has decided to newly introduce a "Six-Item Rapid Groundbreaking Package," which includes electronic general meetings, the involvement of experts in demolition plans, and integrated reviews. The city also plans to specify deadlines for each phase in the standard construction contract in order to accelerate urban renewal projects.

Mayor Oh Sehoon of Seoul said at the announcement meeting held at City Hall on the 26th, "We will concentrate administrative resources on projects that are in the project implementation approval, relocation, and deregistration phases." This figure represents an additional 6,000 units on top of the original target of 79,000 units. The city also plans to raise this year's groundbreaking volume from the existing 23,000 units to 30,000 units to break through the current supply drought.

Eunpyeong Has the Largest Groundbreaking Volume Within 3 Years... Hangang Belt Shows Strong Performance

Among the 85 districts that the Seoul Metropolitan Government made public on this day, Eunpyeong District has the largest number of units. Including Galhyeon District 1 (4,116 units), Bulgwang District 5 (2,387 units), Jeungsan District 5 (1,775 units), and Susaek District 8 (621 units), the total reaches 9,398 units.

Groundbreaking volumes are also concentrated in the Hangang Belt, including Yongsan, Dongjak, Dongdaemun, and Seongdong. Yongsan District has a total of 8,154 units, including Hannam District 3 (5,970 units), which aims to break ground in 2026, as well as Hannam District 2 (1,537 units) and Sanho Apartment (647 units). The Hannam New Town area is regarded as a prime high-end residential district that offers both views of the Han River and convenient access to Gangnam.

Dongjak District (7,657 units) is also a key axis of the Hangang Belt. Large-scale urban renewal sites such as Noryangjin District 1 (2,992 units), Heukseok District 11 (1,515 units), and Noryangjin Districts 3, 4, 5, and 7 are included. When Seongdong District (1,113 units) and Mapo District (1,652 units) are also included, the total groundbreaking volume in districts adjacent to the Han River exceeds 20,000 units.

Among the three Gangnam districts, Songpa District has the largest groundbreaking volume, with 7,305 units. This includes Garak Samik Mansion (1,531 units), Macheon District 4 (1,254 units), Samhwan Garak Apartment (1,101 units), and Garak Plaza Apartment (1,068 units). In addition, the reconstruction of Gaepo Jugong Complex 5 in Gangnam District (1,279 units) has been moved forward by 12 months compared with the previous schedule.

Six-Item Rapid Groundbreaking Package to Be Applied to 85 Districts

The six-item package focuses on significantly simplifying administrative procedures up to the groundbreaking stage. The Seoul Metropolitan Government will fully subsidize the costs of activating electronic general meetings, thereby shortening each meeting by two weeks to one month. To conduct dissolution reviews for associations that have begun relocation, the city will support expert advisory services during the drafting of demolition plans to shorten the process by one month, and it also plans to "integrate" structural reviews and excavation reviews, which were previously conducted separately before groundbreaking, to bring those forward by one month.

In addition, to prevent conflicts between associations and contractors, the city has mandated that deadlines for each phase of relocation, deregistration, and groundbreaking be clearly stipulated in the standard construction contract. It will also provide consulting services on construction change contracts before groundbreaking for projects that have completed project implementation approval. Next year, the city plans to develop a "Urban Renewal Project Schedule Management Calendar" application (app) to encourage meticulous schedule management.

KRW 50 Billion Housing Promotion Fund Allocated for Relocation Loans

The Seoul Metropolitan Government will allocate 50 billion won from the Housing Promotion Fund this year to provide relocation loan support for project sites that are facing difficulties at the final pre-groundbreaking stage, namely the "relocation phase," due to regulations on relocation loans. According to the Act on the Improvement of Urban Areas and Residential Environments, the state or a metropolitan city or province may subsidize or provide loans for costs necessary for urban renewal projects to ensure their smooth implementation. Applications will begin in March, with reviews to be conducted in April and funds to be disbursed by May. The city explained that it expects to support around three complexes this year. It is reviewing a plan to apply an annual interest rate of 4 to 5 percent. Housing Bureau Chief Choi Jinseok said, "Relocation loans basically fall under the private sector, but based on the Urban Renewal Act, we intend to provide partial loans for residents' relocation costs."

However, the city noted that with a scale of 50 billion won, there are limitations to supporting all 253 urban renewal project districts across Seoul, and it therefore plans to continuously request regulatory easing from the central government going forward. At the announcement venue on this day, association heads of the 85 core supply strategic projects attended and submitted petitions to the city of Seoul detailing the difficulties caused by current central government regulations, including relocation loans and restrictions on the transfer of association member status. Mayor Oh stated, "We will secure the Housing Promotion Fund even if we have to adjust our budget plans, and if necessary, we will further expand it," adding, "We will strongly urge the central government to ease regulations."