The area north of Hyochang Park Front Station in Yongsan, Seoul, has been selected as a candidate site for an urban public housing complex, leading to mixed reactions among residents. Owners of aging villas are hopeful for improved living conditions and increased property values, while owners of multi-family homes and commercial properties are worried about compensation and additional costs. Some have even suggested forming an emergency response committee to address the differing interests as the process of securing resident consent unfolds.
According to the Ministry of Land, Infrastructure and Transport on October 5, the area north of Hyochang Park Front Station was recently chosen as one of 11 new candidate sites for urban complex projects. The initiative aims to provide approximately 4,040 housing units across 93,262 square meters in Hyochang-dong, with plans to designate the area in the first half of 2027 and begin construction in the second half of 2030.
The urban complex project involves the government acquiring land and compensating landowners either financially or through in-kind benefits. Unlike traditional cooperative redevelopment projects, the structure of this initiative may lead to varying interests among property owners based on the existing types and uses of real estate.
A real estate agent in Hyochang-dong noted, "Those with aging villas have high expectations for improved living conditions and increased property values due to the development, while those owning multi-family homes or commercial buildings have a very different perspective, as their rental income and livelihoods are at stake."
Another real estate agent from the nearby Yongmun-dong mentioned that while many residents welcome the site selection, it is crucial to minimize the impact on long-term residents and secure a high approval rate.
Concerns among commercial property owners center on their ability to continue their businesses. A business owner who has held a commercial property in the area for 15 years stated, "I don’t want an apartment; I have built my wealth through this business over many years. Many individuals here run their own businesses, so development is directly tied to our livelihoods."
He added that most owners of roadside commercial properties are strongly opposed to the project, having previously filed complaints with the Ministry of Land, Infrastructure and Transport, the Seoul Metropolitan Government, and the Korea Land and Housing Corporation (LH). With the official selection of the site, discussions about forming an emergency response committee are emerging.
Multi-family home owners are also deeply concerned. Those relying on rental income for living expenses must consider not only the level of compensation and additional costs but also the potential loss of income during the development process. Some residents have expressed dissatisfaction regarding the inclusion of relatively new villas, studios, and currently operating commercial properties in the project area.
The urban complex project is structured to allow the government to acquire land and develop it while compensating owners either financially or through in-kind benefits. For property owners, the level of compensation for existing assets, the conditions for in-kind benefits, and the potential income loss during the development period will be key factors in their decision to consent.
Seojin Hyung, a professor of real estate law at Kwangwoon University, explained, "Owning a commercial property generates current rental income, but if it is developed into apartments, that income could disappear. Property owners are understandably concerned about whether they will receive apartments and how much compensation they will get."
These differing interests may impact the process of securing resident consent. During the initial proposal, the resident approval rate was about 37.5%, but to designate the complex, consent from at least two-thirds of landowners is required, along with securing more than half of the land area through ownership or usage agreements. The process of converting initial interest into legal consent remains.
The Ministry of Land, Infrastructure and Transport stated that it comprehensively reviewed legal requirements, including the level of deterioration, project viability, and resident interest. A ministry official remarked, "Given that there have been cases where projects were canceled or withdrawn, we conducted a preliminary survey of resident interest to reduce the likelihood of falling short of the required consent rate this time."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.