The Ministry of Land, Infrastructure and Transport and the ruling party have clashed with the Seoul Metropolitan Government over who is responsible for delays in the downtown Seoul public housing complex projects. Some in the ruling party even argued that project approval authority should be handed to the transport minister. Seoul countered that the government is loosening floor area ratios without consultation and shifting the burden of overcrowded development onto the city.
Transport Minister Hong Ji-seon on the 11th toured the site of a downtown Seoul public housing complex district being developed around Yaksu Station. Hong pointed out that Seoul is demanding a pre-planning consultation, which is not stipulated by law, on the grounds of urban planning. He also said that excessive delays to the projects must be prevented at a time when rapid housing supply is needed.
The pre-planning consultative body is a procedure for coordinating key issues in advance of project plan approval. The subjects of discussion include the extent of floor area ratio increases, the number of units supplied and the public contribution ratio. It was originally scheduled to meet in June, but Seoul canceled it and it fell through. Consultations have been at a standstill since.
In the ruling party, calls were raised to reclaim approval authority. Rep. Kim Nam-geun of the Democratic Party of Korea said, “I suspect that (Seoul) is delaying on purpose.” He said that the option of amending the enforcement decree of the Special Act on Public Housing so that the transport minister holds approval authority and speeds up the projects should also be reviewed.
The projects are on a scale of supplying about 59,000 units across 34 sites in Seoul. Kim argued that if the projects had proceeded properly, they would have contributed greatly to easing Seoul’s housing shortage and the jeonse and monthly rent crunch.
Hong was cautious about shifting approval authority right away. He explained that the original intent of the law was that projects would go faster and residents’ opinions would be reflected quickly if local governments handling on-site administration held permitting authority. However, he asked for cooperation, saying he would speed up working-level consultations with Seoul as much as possible.
At the briefing, too, it was noted that the pre-planning consultative body is being excessively delayed even though it is not a statutory procedure. A caveat was added that it is probably not intentional.
Consultative body meetings have been delayed in several places. The redevelopment industry said they include Suyu District 12 (Gangbuk-gu), Sangbong Terminal (Jungnang-gu), Bulgwang Neighborhood Park (Eunpyeong-gu), Jangwi District 12 (Seongbuk-gu), the area near Yaksu Station (Jung-gu) and the west side of Goeunsan.
The crux of the conflict is the 1.4-fold relaxation of the floor area ratio. Seoul is coordinating with the National Assembly on a plan to raise the floor area ratio for private redevelopment projects by up to 1.2 times. But Seoul’s view is that excessive benefits are being given only to downtown public housing complex projects. Its position is that pushing ahead with projects applying the 1.4-fold relaxation is impossible without a review of infrastructure and appropriate density.
Seoul criticized the government for being preoccupied only with increasing supply and leaving one side to bear the burden of urban management that high-density development would bring. “The urban burden from overcrowded development will ultimately be passed on to future generations,” a Seoul official said. The official stressed that Seoul has a duty to manage the density of all development projects in line with the urban environment. The official also asked rhetorically whether it is right to raise the floor area ratio to 420% and build “chicken coop apartments.”
Seoul also drew a line against the argument for transferring approval authority. The official said the city must consider adverse effects on the entire city, such as insufficient infrastructure, weigh appropriate density and hear expert opinions. The official said it is unreasonable to blame Seoul for delays and raise the idea of a transfer while ignoring this essence.
Kim Jun-hyeong, a professor of real estate at Myongji University, pointed out, “No matter how important supply is, it has to move within the larger framework of urban planning.” He also raised the question of whether the transport ministry is trying to take away all of the city’s authority.
The differences between the two sides have spread to other issues as well. They include housing supply on the Yongsan Park site, the transfer of redevelopment and reconstruction permitting authority and the push for the Namsan gondola project. For this reason, a meeting between Hong and Seoul Mayor Oh Se-hoon is unlikely to materialize for the time being.
Regarding the meeting Seoul requested, Hong indicated that working-level resolution should come first. “If we meet without solving the problem, we will just be back to square one,” he said. A Seoul official also said that little has improved at the working level.