Compensation paid by the Korea Land and Housing Corporation (LH) for the development of the Third New Towns has exceeded initial estimates by more than 1 trillion won. The number of eviction lawsuits filed due to delays in land and building handovers has also surpassed 2,700, raising concerns about delays in housing supply.
According to data submitted to the National Assembly's Land, Infrastructure and Transport Committee by Kim Jong-yang, a lawmaker from the ruling People Power Party, the total estimated compensation for the five Third New Towns—Goyang Changneung, Namyangju Wangsuk, Bucheon Daejang, Incheon Gyeyang, and Hanam Gyosan—was 12.145 trillion won.
However, the actual compensation disbursed has been recorded at 13.1726 trillion won, an increase of 1.0276 trillion won, or 8.5 percent, compared to initial estimates.
The largest increase in compensation was seen in Hanam Gyosan, where the estimated compensation was 2.9279 trillion won, but the actual amount disbursed reached 3.2684 trillion won, an increase of 340.5 billion won, or 11.6 percent. Namyangju Wangsuk also saw a rise, with actual compensation of 3.8915 trillion won, exceeding the estimated 3.5911 trillion won by 300.4 billion won. Goyang Changneung's compensation increased from 3.4269 trillion won to 3.6019 trillion won, a rise of 175 billion won. Bucheon Daejang's compensation grew from 1.3057 trillion won to 1.4724 trillion won, and Incheon Gyeyang's increased from 893.4 billion won to 938.4 billion won.
The increase in compensation is attributed to rising land prices over time since the designation of the new towns, as well as adjustments made during the compensation calculation process.
Eviction lawsuits related to the relocation and demolition processes have also reached thousands. A total of 2,718 eviction lawsuits have been filed across the five districts. Notably, 2,031 of these lawsuits, or 74.7 percent, were filed in Goyang Changneung. Following that were Hanam Gyosan with 419 lawsuits, Namyangju Wangsuk with 239, Incheon Gyeyang with 26, and Bucheon Daejang with 3.
Eviction lawsuits are filed by LH to secure the legal basis for forced execution when land or buildings are not handed over to the project implementer after the compensation process is completed. Prolonged lawsuits can delay subsequent procedures such as demolition and push back housing construction schedules.
In fact, some Third New Towns are already experiencing delays in their occupancy schedules compared to initial plans. The occupancy date for Namyangju Wangsuk 2 has been pushed back from 2026 to February 2029, while Hanam Gyosan's has been delayed from 2027 to June 2029.
In response to these bottlenecks, the government has decided to shorten the compensation period for new public housing sites from the previous 44 months to 24 months.
To accelerate the supply of Third New Towns, experts emphasize the need to manage not only the designation of land and approval of district plans but also the increase in compensation, relocation negotiations, and the prevention of prolonged eviction lawsuits.
Kim stated, “While the government is pushing for rapid progress, the lack of preparation for compensation and relocation is causing delays in housing supply schedules across the board. The government must prioritize fair compensation and well-designed relocation measures to resolve the bottlenecks it has created.”
* This article has been translated by AI.
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