Challenges Persist in Housing Development at Yongsan Park and Camp Kim

The South Korean government has officially opened the door to the possibility of housing development at Yongsan Park, but analysts warn that significant obstacles remain before any actual supply can be realized. Even the nearby Camp Kim, a site returned by the U.S. military, has been stalled for nearly a decade due to soil contamination and cultural heritage investigations, preventing any construction from starting.

To build housing in Yongsan Park, which is designated as a national park by law, amendments to special legislation are required, along with the return of U.S. military bases, soil remediation, and consultations with Seoul city regarding infrastructure. This indicates that the complexity of the development process will increase significantly from the outset.

According to the Ministry of Land, Infrastructure and Transport and the real estate industry, Minister Kim Yoon-deok stated during a press conference on August 14, marking his first anniversary in office, that the government would consider the suitability of housing supply across the entire Yongsan Park, not just the Yongsan Children's Garden.

As the government has publicly discussed the development of Yongsan Park for the first time in over 20 years, there are calls to explore the option of utilizing part of the area for housing. However, given the prolonged delays in the Camp Kim project, which has already been approved for development and returned, there are concerns that Yongsan Park cannot be quickly leveraged to address Seoul's housing shortage.

Camp Kim, located in the Yongsan district of Seoul and covering approximately 48,400 square meters, was returned by the U.S. military in December 2020. The government initially announced plans to supply around 3,100 public housing units but later adjusted the figure to about 1,400 units. In this year's '1·29 Supply Plan,' the green space criteria were relaxed to allow for an increase to 2,500 units, but the earliest construction start date is now set for 2029, meaning it will take nine years from the return of the site to the beginning of construction.

Notably, Camp Kim is designated as a 'mixed-use development zone,' which allows for more flexible development compared to the main Yongsan Park site. Despite the legal hurdles being lower and the site already returned, the project has still faced delays due to soil contamination and cultural heritage investigations. The complexity of the conditions for Yongsan Park development is much greater, requiring amendments to special laws and changes to the comprehensive master plan for the Yongsan Park maintenance area.

The return of the site and soil remediation also present variables. The primary reason for the prolonged delays at Camp Kim has been the discovery of soil and groundwater contamination across most of the site. Approximately 97% of the area exceeded residential land standards, necessitating remediation, and the discovery of cultural heritage during the cleanup process halted work for an additional year. Furthermore, delays in consultations with relevant agencies regarding development density and green space requirements, as well as the amendment of special laws, have pushed the construction timeline for the site returned in 2020 to 2029.

Experts emphasize that considering the unique circumstances of Yongsan, close cooperation with local governments and relevant agencies must precede discussions about supply volume and speed.

Seojin Hyung, a professor at Kwangwoon University, stated, "Given the numerous core issues such as soil contamination and negotiations with the U.S. military, it is essential to fully gather opinions from Seoul and Yongsan and collaborate closely." He added, "There are limits to simply increasing supply speed administratively without considering the interests of stakeholders."

Seoul city and Yongsan district oppose housing supply in Yongsan Park, citing it as the last large green space remaining in the city center. Even if the national government exercises its authority to designate public housing districts and approve projects, consultations with Seoul city will be unavoidable to expand infrastructure such as roads, schools, and water supply systems.

Minister Kim Yoon-deok is scheduled to meet with Seoul Mayor Oh Se-hoon on August 20 to discuss expanding housing supply in the city. Given the differing views on utilizing Yongsan Park, this meeting is expected to address related issues as a key point of contention.

There are also calls for caution regarding the development of Yongsan Park itself. Lee Eun-hyung, a researcher at the Korea Construction Policy Institute, remarked, "Even if a large number of housing units are supplied in a prime location like Yongsan, it is unlikely to stabilize housing prices across Seoul, and there is a high possibility that the premium location will be reflected in the prices of new housing." He added, "As large green spaces in central Seoul enhance urban competitiveness, it is a priority to continue advancing ongoing maintenance projects and the supply of third-generation new towns."