180 Billion Won to Buy, 600 Billion to Lease... 14 'Integrated Government Complexes' to Be Built in New York, London, and More

Promoting the Five-Year Overseas Public Complex Government Building Plan
Accelerating Supply of 28,000 Public Housing Units in the Seoul Metropolitan Area

The government is launching a large-scale "Overseas Complex Government Building Development" project to consolidate embassies, cultural centers, and public agency offices scattered across major strategic locations abroad. This initiative is aimed at preventing the outflow of large rental costs and maximizing the asset value of state-owned properties. In addition, to accelerate urban housing supply, the government will begin early construction of 28,000 public housing units on state-owned land, starting with former military sites in Gangseo-gu, Seoul, and will also conduct a comprehensive survey of state-owned assets valued at approximately 1,400 trillion won.

Blocking Astronomical Rent Costs... 14 'K-Complex Government Buildings' Set for Cities Including New York

Heo Jang, Deputy Minister of Finance and Economy, visited the public housing development site on a military base in Gangseo-gu, Seoul, on April 8, receiving a briefing on the onsite situation from officials. Ministry of Finance and Economy.

On August 20, at the Government Complex Seoul, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol presided over the 29th State-Owned Asset Policy Review Committee, where the '2027 Comprehensive State-Owned Asset Plan (Draft)' containing these details was reviewed. The government plans to finalize the "Overseas Public Complex Government Building Five-Year Development Plan" this November and will unify various overseas development projects that have previously been fragmented by ministry. This includes consolidating the Ministry of Foreign Affairs' "Integrated Overseas Mission Complex," the Ministry of Culture, Sports and Tourism's "Korea Center," and the Ministry of Economy and Finance's public agency complex space project "K-Maru" into one.

In addition to the three ongoing development projects in New York City (USA), Hanoi (Vietnam), and Mexico City (Mexico), the scope will expand to a total of 14 major global cities, including London (UK), for complex government building development. By purchasing or constructing new buildings to house embassies, cultural centers, and public institutions together, the government aims to improve accessibility for local residents and foreigners as well as enhance national symbolism.

The core rationale is massive savings on expenditures. A government official explained, "For the pilot project in Mexico, constructing a complex building with an investment of 180 billion won will prevent a capital outflow of about 400 billion won compared to the long-term costs (around 600 billion won) of continued leasing." The developments will be designed to physically separate embassy areas (which require high-level security) from cultural and public institution zones.

More Than 200 Outdated Government Buildings Older Than 30 Years to Undergo Complex Development... CAMCO Investments to Revitalize Regional Construction

The government will also embark on large-scale redevelopment of neglected or aging government properties in provincial areas to stimulate local economies. Currently, approximately 2,100 government buildings nationwide are over 30 years old. Of these, 200 will be redeveloped or reconstructed sequentially starting from 2027.

So far, redevelopment of old government buildings has relied solely on the State-Owned Property Management Fund, limiting projects to about 100 per year. To overcome fiscal constraints, the government will combine equity investments and delegated development through Korea Asset Management Corporation (KAMCO). By contributing part of its holdings in public institutions (such as Korea Expressway Corporation) in kind to KAMCO, the government will increase KAMCO's leverage, enabling it to raise funds through its own debt for delegated development.

The expanded development space will include not only simple government offices but also infrastructure such as local public facilities (SOC), libraries, and neighborhood amenities desired by residents. An official from the Ministry of Economy and Finance stated, "By adding KAMCO's delegated development (100 projects) to the existing fund projects (100 projects), the capacity will be dramatically expanded to 200 projects in total," emphasizing that, "This will expand the infrastructure needed by local communities and serve as a catalyst for reviving the recently stagnant regional construction market."

918 Units on Gangseo Military Site to Break Ground Next Year... Accelerating Urban Housing Supply

The plan to supply 28,000 public housing units using state-owned properties, announced in the government's "January 29 Measures," is now on track. The time required for reviewing project viability, which usually takes over six months, will be cut to around three months, and consultation requirements for city planning amendments will be significantly reduced to speed up execution.

The first construction site has been confirmed as the "Gangseo-gu Military Site" in Seoul, where construction will begin next year to provide a total of 918 public housing units. The former site of the mounted police unit of the old Seoul Metropolitan Police Agency in Seongsu-dong, Seoul, will be developed through a "long-term lease" model to attract private capital. A mixed-use complex consisting of 260 youth housing units, as well as offices and neighborhood facilities, will be built to ensure business profitability without additional fiscal burden.

Idle state-owned sites outside the capital region, such as the Busan Yeongdo Reserve Forces Training Center, the government housing site of the Busan Ministry of Oceans and Fisheries, and the former Wonju Prison site in Gangwon Province, will be transformed into "senior residences" through long-term private leases. Vacant sites like the Guro Center of the Korea Customs Service, the Hagdang-dong property of the Ministry of Education, the Nasong-dong site in Sejong, and the former Seoul National University of Agriculture site in Suwon will accommodate 2,000 youth dormitory units for students and workers.

'Development Issue' Yongsan Park Also State-Owned Asset... Centralized Authority Strengthened

Over the next three years, the government will conduct a comprehensive survey of 5.9 million state-owned land parcels and promote the enactment of the "National Asset Basic Act" to expand the scope of state assets to include previously unmanaged intangible assets.

The Yongsan Park site, often mentioned recently as a potential urban housing supply location by the ruling party, government officials, and the market, is also state-owned. A Ministry of Economy and Finance official said, "Although the Ministry of Land, Infrastructure, and Transport currently manages the Yongsan Park site under the Special Act on the Creation of Yongsan Park, it is naturally included among state assets amounting to 1,400 trillion won," adding, "If there is a necessary role beyond the projects stipulated in the special law, we as the central asset management agency are ready to act actively."

Additionally, the government plans to increase the ratio of risky assets (equities, alternative investments) in the State-Owned Property Management Fund from the current 28.9% to over 40% by 2030, utilizing the fund as a source for investments in national strategic industries. This includes new investments in innovative venture capital and participation in the sub-funds of the National Growth Fund.

This content was produced with the assistance of AI translation services.