South Korea: Post-election housing plans face local resistance

With the local elections concluded, the South Korean government aims to accelerate housing supply initiatives, including contentious plans for new public housing developments. However, the resumption of negotiations with local governments is complicated by the re-election of opposition mayors in several key areas where these plans have faced significant pushback.

A central project under the government's January 29th supply plan involves developing the Korea Racing Authority's Gwacheon Racetrack into a "mini-new town" with 9,800 homes. This proposal has encountered strong resistance from Gwacheon City and its residents. The re-elected mayor, Shin Gye-yong of the People Power Party, had made opposing the racetrack relocation a key campaign promise. Residents cite already saturated infrastructure, including roads and public transport, as reasons why further development is unfeasible.

In Seoul, a similar conflict is brewing over the development of the Yongsan International Business District. While the Ministry of Land, Infrastructure and Transport proposed increasing housing units from the initially planned 6,000 to 10,000, Seoul Mayor Oh Se-hoon insists that more than 8,000 units are unrealistic. He argues that an excessive increase could delay the entire project. Yongsan residents also oppose the plan, fearing a rise in smaller housing units and a decrease in market value. Additionally, the city is in conflict with the Office of Education regarding the placement of school-aged children resulting from increased housing density.

Mayor Oh has also expressed reservations about the government's plan to develop the Taereung Golf Course in Seoul's Nowon District, citing potential traffic congestion. This golf course development faced similar local opposition and was shelved during the previous Moon Jae-in administration.

The Ministry of Land, Infrastructure and Transport maintains its commitment to swiftly engaging with local governments and residents to resolve these issues. A ministry official expressed optimism that the post-election period might facilitate more practical discussions and help bridge existing divides, aiming to expedite progress on the housing supply plans.

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Rather, now that the election is over, realistic discussions may take place and differences may be narrowed. We will speed up the process through discussions with local governments and residents.