President Lee Jae-myung has set a goal to reduce the duration of the 3rd New Town project to less than half, drawing attention to how this can be achieved. The government plans to streamline procedures and revise related systems to accelerate progress, but land compensation and resident relocation processes continue to pose significant challenges.
During a national discussion on real estate policy held on July 23, President Lee stated, "The delays in the commencement of the previously announced areas for the 3rd New Town are a serious issue," adding that the administration is reviewing ways to reduce the project timeline. He mentioned, "If necessary, we will change regulations or conduct procedures concurrently to save time."
Earlier, on July 16, the Ministry of Land, Infrastructure and Transport presented a plan during a presidential briefing to expedite land development procedures, aiming to advance the start of construction for major public housing districts, including the 3rd New Town, by one to two years.
Meanwhile, areas added as candidates for the 3rd New Town during the Moon Jae-in administration in 2021, such as Gwangmyeong-Siheung (67,000 households), Uiwang-Gunpo-Ansan (41,500 households), and Hwaseong Jin-an (34,000 households), are now entering the compensation phase.
The largest Gwangmyeong-Siheung district has completed property appraisals for compensation in the first half of this year and has begun negotiations with land and property owners this month, a schedule accelerated by about four months compared to the original plan.
The project implementer, the Korea Land and Housing Corporation (LH), aims to complete compensation payments by the end of this year, with construction expected to start by the end of next year and the first residents moving in by 2031. Uiwang-Gunpo-Ansan and Hwaseong Jin-an are also expected to follow suit in their compensation processes.
However, it remains uncertain whether the compensation procedures will proceed smoothly. Public housing districts must complete compensation before residents can relocate and demolition can begin. Disputes over compensation amounts or refusals to relocate can lead to significant delays. If the process escalates to eviction lawsuits and enforcement actions, projects could be delayed by several months to over a year.
The government is also working on system improvements to reduce compensation delays. The '9.7 Supply Plan' announced last year includes a 'cooperation incentive' program that offers additional payments to residents who assist with compensation within a specified timeframe.
Additionally, if land or buildings are not surrendered and residents refuse to vacate after compensation is completed, local government officials can impose enforcement fees of up to 10 million won. However, while the cooperation incentive was included in a proposed amendment to the Special Act on Public Housing last year, it has yet to pass through the National Assembly. The enforcement fee system is expected to be implemented on December 17 of this year through amendments to the Land Compensation Act.
Beyond compensation, factors such as inter-agency discussions on regional transportation plans, archaeological excavations, and the creation of alternative habitats due to the discovery of protected species like the Korean brown frog are also cited as variables that could slow project timelines.
* This article has been translated by AI.
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