Ruling Party: "Reclaim Approval Authority" vs. Seoul: "Passing the Buck for Uncontrolled Development"... Urban Public Housing Complex Project Dispute Escalates

The government and ruling party have clashed head-on with the Seoul Metropolitan Government over who is responsible for delays to the Urban Public Housing Complex Project. After the Democratic Party of Korea threatened to take back Seoul’s authority to approve project plans, citing delays to the supply of 30,000 homes, the Seoul Metropolitan Government countered that the delays stemmed from declining public trust in the Korea Land and Housing Corporation (LH) and the Ministry of Land, Infrastructure and Transport’s unilateral push to move the projects forward.

The Urban Public Housing Complex Project is designed to ease regulations under public-sector leadership when private redevelopment projects meet certain requirements but are not progressing smoothly. Concerns are growing that conflicts between the government, the ruling party and local governments could leave the projects stalled.

Minister of Land, Infrastructure and Transport Ji Seon speaks as she listens to a briefing on the Yaksu Station public urban complex project alongside Democratic Party lawmaker Jeon Hyun-hee and others at the observatory in Eungbong Neighborhood Park in Seongdong-gu, Seoul, on the 11th. Yonhap News Agency

Ruling Party: "Move Seoul's Approval Authority to the Ministry"
Land Minister: "Concerned About Excessive Project Delays"

The issue was raised by Minister of Land, Infrastructure and Transport Hong Jiseon. At a meeting held the previous day, on the 11th, at the Yaksu Station Urban Public Housing Complex Project site in Seongdong-gu, Seoul, Minister Hong said, "The Seoul Metropolitan Government is grouping multiple project sites together to apply a preliminary planning council, which is not part of the procedures stipulated by law," adding, "Supply needs to move forward quickly, but the process is being delayed excessively."

She went on to say that Seoul’s delays in convening the preliminary planning council ran counter to the intent of the law, which delegates permitting and approval authority to local governments. Minister Hong said, "The original intent of the law in delegating authority was to give local governments, which directly administer affairs on the ground, the authority to approve and permit projects, because they can move projects forward more quickly and respond more promptly to residents’ voices. From the residents’ perspective, Seoul’s decision to group multiple project sites together to apply a preliminary planning council that is not part of the legal procedures is unreasonable because it prevents projects from progressing."

The ruling party said it would consider amending the Enforcement Decree of the Special Act on Public Housing to return Seoul’s authority to approve project plans to the Minister of Land, Infrastructure and Transport. Under the Special Act on Public Housing, the authority to approve project plans originally held by the minister was delegated to Seoul through an amendment to the enforcement decree.

Kim Nam-geun, a Democratic Party of Korea lawmaker, said, "The Seoul Metropolitan Government is using its authority to approve projects as a reason to create a discretionary preliminary planning council that is not provided for by law, thereby blocking projects from moving forward." He added, "If the issue is not resolved by the end of this year, the National Assembly’s Land, Infrastructure and Transport Committee will consider returning the authority to approve project plans to the minister, in line with the law’s original intent, and moving the projects forward swiftly."

The preliminary planning council is a process in which the Seoul Metropolitan Government, the Ministry of Land, Infrastructure and Transport, the Korea Land and Housing Corporation (LH) and the relevant district office discuss specific project plans, including floor-area ratios and building heights, after a district designation is announced. It is not a legally required procedure. However, because local governments hold the authority to approve project plans, prior coordination is effectively necessary to ensure projects proceed smoothly.

According to the redevelopment industry, meetings of the preliminary planning councils for six districts (9,958 homes) have been delayed for six months: ▲Suyu 12 District in Gangbuk-gu ▲Sangbong Terminal in Jungnang-gu ▲Bulgwang Neighborhood Park in Eunpyeong-gu ▲Jangwi 12 District in Seongbuk-gu ▲the area near Yaksu Station in Jung-gu ▲and the area near Godeok Station. Including 11 additional project sites where council meetings are scheduled to be held in the future, the supply volume affected will amount to approximately 30,000 homes.

Seoul: "Need to Review Side Effects of High-Density Development"
Introduction of Council Also Coordinated in Advance With Ministry

The Seoul Metropolitan Government also hit back at criticism from the government and ruling party. In a statement issued the same day, it said, "The fundamental causes of delays to the Urban Public Housing Complex Project are declining public trust in LH and the Ministry of Land, Infrastructure and Transport’s unilateral push to move the projects forward without prior consultation with the Seoul Metropolitan Government."

It added, "Of the 55 candidate sites selected by the ministry in 2021 and 2022, 21 were withdrawn due to resident opposition and other reasons, while 34 are currently proceeding." It also said, "The statutory sunset deadline was extended through an amendment to the Special Act on Public Housing, first from September 2024 to December 2026, and then again to December 2029."

Seoul had initially planned to convene the preliminary planning council in May, but has postponed the meeting, saying that the additional benefit of a 1.4-fold increase in the floor-area ratio would be excessive. The reasons include concerns about fairness compared with private redevelopment projects and haphazard urban development.

A Seoul Metropolitan Government official said, "If the floor-area ratio is increased by 1.4 times, it would rise from the existing 300% to 420%, making it difficult to address density-related issues." The official added, "If traffic congestion and sunlight access issues arise later, the Seoul Metropolitan Government would be held responsible." The official also said, "Given these concerns, our position is that clear standards must be established on whether the floor-area ratio should be relaxed by as much as 1.4 times or by a smaller amount."

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