Seoul Mayor Oh Se-hoon said the city and the Ministry of Land, Infrastructure and Transport (MOLIT) are narrowing their differences on housing supply, adding that the ministry has agreed to give favorable consideration to the city's request to ease the density cap for redevelopment projects by up to 1.2 times. Seoul estimates that easing the rule would raise the net increase in housing supplied through redevelopment and reconstruction projects by 2031 to about 130,000 units, up 43,000 from the current 87,000.
Speaking at a background briefing after meeting Land Minister Kim Yun-duk near Seoul City Hall on the 26th, Oh said the two sides had not reached a conclusion but had made significant progress on the city's proposal to ease density rules for redevelopment. "We asked to ease the density cap for redevelopment projects by up to 1.2 times, and we confirmed that MOLIT will give this favorable consideration," Oh said.
According to the city, easing the density cap by up to 1.2 times at redevelopment sites now underway would secure an additional net increase of about 43,000 units by 2031. Under the earlier plan to break ground on 310,000 units through redevelopment and reconstruction projects by 2031, the net increase stood at 87,000 units; easing the redevelopment density rule would raise that net increase to about 130,000 units.
Oh stressed that the added supply was "as large as the combined volume being discussed for both Yongsan and the Tancheon water recycling center site," adding that it "will go on record as the most effective and visible construction volume among the results of these talks." The city said the share of rental housing among the units added under the higher density cap remains open to further discussion with the government.
Seoul, however, reaffirmed its opposition to using the main site of Yongsan Park for housing. "I once again emphasized that the entire main site of Yongsan Park must absolutely be preserved," Oh said. "Given its historical context, ecological value and role in the city's spatial structure, Seoul cannot make any concessions on why a green park of this size is essential in the heart of the city."
Instead, the city formally proposed a "southeastern youth-focused industrial complex" using the area around the Tancheon water recycling center as an official alternative to the government. "I made a formal proposal today," Oh said. "The minister listened and said he would review it."
The city plans to relocate the Tancheon water recycling center and turn the site and its surroundings into a mixed-use hub combining the physical artificial intelligence (AI) industry with youth housing. In May last year, the city completed a study to draw up a master plan for the confluence of the Yangjae and Tancheon streams, including the site of the adjacent Eastern Road Works Office and the SETEC complex. It is now conducting a feasibility review for a private investment project to relocate the water recycling center, aiming to finish by the end of the year.
The city plans to fund the project using nearby assets it holds. Seoul estimates the value of the Eastern Road Works Office site at about 3.3 trillion won ($2.4 billion) and the SETEC site at about 2.3 trillion won ($1.7 billion). Selling the two sites would raise about 5.5 trillion won ($4 billion), the city said. It plans to use that as seed money to attract private capital to cover the roughly 500 billion won ($363 million) cost of relocating the water recycling center, and to build a physical AI complex and youth housing on the vacated site.
Responding to residents' complaints that the odor from the recycling center and a high proportion of rental housing make the area unsuitable for living, Oh said the concern was not logical because the plan is premised on relocating the center. "Once it is relocated, it will actually become a desirable residential environment," he said.
Oh argued that using the Tancheon area instead of Yongsan Park is also more realistic in terms of supply speed within the current administration's term. "Would it be possible to break ground within this administration if we were to build housing on Yongsan Park?" he said. "The idea for the southeastern youth-focused district also came from the judgment that breaking ground within this administration would not be easy even if it used part of Yongsan Park." He added, "I hope the government's proposal for Yongsan Park will be withdrawn and the southeastern youth-focused complex will be adopted as an alternative for further discussion."
The government and the city plan to meet again in a week to continue talks on easing regulations for redevelopment and reconstruction projects and on alternative supply sites. "MOLIT does not fully agree with my position on Yongsan Park, so there is much to watch on how things change," Oh said. "But favorable consideration also appears possible on our other requests, so I am hopeful that several issues can move forward together as a package."
