The racetrack (Let's Run Park, 1.15 million square meters) owned by the Korea Racing Authority, which the government has designated for new public housing development. [Yonhap]
The racetrack (Let's Run Park, 1.15 million square meters) owned by the Korea Racing Authority, which the government has designated for new public housing development. [Yonhap]

With President Lee Jae Myung chairing a marathon seven-and-a-half-hour housing review meeting immediately after returning from trips to the United States and South America, attention in the real estate market is turning to whether key sites under the government's Jan. 29 housing supply plan — including the Yongsan Camp Kim site, Taereung Country Club and the Gwacheon racetrack — can finally pick up pace. Progress on those sites has stalled since the plan was announced in January amid disagreements with local governments and related agencies, but with the president personally weighing in, inter-ministry consultations are expected to accelerate.

The government also plans to secure as much new land as possible — including greenbelt zones and military sites — to ease the housing supply crunch in the greater Seoul area. Some in the industry are skeptical, however, warning that the pattern seen under the Moon Jae-in administration — where high-profile urban site announcements never translated into actual ground-breaking — could repeat itself.

According to real estate industry sources and Cheong Wa Dae, President Lee focused Monday's real estate and stock market review meeting on the progress of sites under the Jan. 29 greater Seoul housing supply plan. The Ministry of Land, Infrastructure and Transport announced through that plan that it would break ground on 43,500 units of urban public housing by 2030, drawing on sites including the Yongsan International Business District and Camp Kim site for 12,600 units, the Gwacheon racetrack and Defense Counterintelligence Command site for 9,800 units, Taereung CC for 6,800 units, and a Namyangju military base for 4,200 units.

Despite the ambitious supply blueprint for prime locations, friction with local governments and public institutions emerged almost immediately after the announcement, and progress has remained slow. The ministry and the Seoul Metropolitan Government continue to disagree over plans to build 10,000 units in the Yongsan International Business District, while the Korea Racing Authority, which owns the racetrack site, has expressed opposition citing the cost of acquiring a new site and construction expenses. Taereung CC — which was also included as a supply site under the Moon administration — still faces resident opposition over traffic congestion concerns.

Funeral wreaths line the fence outside the Ministry of Land, Infrastructure and Transport at Government Complex Sejong in February, placed in protest against the government's plan to relocate the Gwacheon racetrack as part of its urban housing supply expansion initiative. [Yonhap]
Funeral wreaths line the fence outside the Ministry of Land, Infrastructure and Transport at Government Complex Sejong in February, placed in protest against the government's plan to relocate the Gwacheon racetrack as part of its urban housing supply expansion initiative. [Yonhap]

Against this backdrop, President Lee pressed the Ministry of Land, Infrastructure and Transport and related ministries at Monday's meeting on the status of new sites under the Jan. 29 plan, emphasizing the need for faster execution. With housing market instability mounting and the president's resolve clear, the ministry and other agencies are expected to pour their efforts into finding ways to bring forward ground-breaking dates.

Kim Yong-beom, the presidential chief of staff for policy, is also set to hold a private meeting with Seoul Mayor Oh Se-hoon in the near future to work through differences on key issues, including the housing supply volume for the Yongsan International Business District. The two sides remain far apart on supply approach, however, with disagreements persisting over revitalizing private redevelopment projects, easing loan regulations on relocation costs, and expanding floor-area-ratio incentives.

Land Minister Kim Yun-deok had also met with Mayor Oh on July 24 to exchange views on the housing market situation and supply expansion. At that meeting, Oh proposed institutional reforms to boost private-sector supply. On the Yongsan International Business District, however, the two sides confirmed only that their positions remain apart, without reaching any agreement.

While working to resolve the obstacles holding back existing sites under the Sept. 7 and Jan. 29 plans, the government intends to unveil new supply measures as soon as possible to maximize available housing stock. Greenbelt areas under consideration for new sites include the reserve forces training ground in Seocho-gu's Naegok-dong, land near the Olympic Athletes' Village in Songpa-gu's Bangi-dong, and greenbelt zones in Gangnam-gu's Segok and Jagok neighborhoods.

Minister Kim said at a public forum on real estate policy Sunday that since taking office he had developed "a strong desire to build homes even if it means releasing greenbelt land." Deputy Prime Minister and Finance Minister Koo Yun-cheol echoed that sentiment in a broadcast interview Monday, saying the government was "preparing supply measures that include partially releasing greenbelt land and incorporating subway-adjacent areas and various military facilities owned by the state, all to maximize supply."

Industry experts warn, however, that given the considerable time required to release greenbelt land and relocate military facilities, more immediate and effective supply measures are needed to address the current supply-demand imbalance. They also note that the Jan. 29 plan is heavily weighted toward sites that were announced but never built under the Moon administration, making it difficult to move quickly.

"Even when the Jan. 29 plan was announced, there was no small amount of skepticism in the industry because these were sites that previous governments had already tried and failed to turn into actual supply," one housing industry official said. "The greenbelt situation is the same — even if it is properly pursued, there are many hurdles to clear, like compensation, before anything gets built."


hwshin@heraldcorp.com