Seoul Opposes Using Greenbelts for Housing Measures, Expresses Regret Over Lack of Prior Consultation

Regarding the government's housing supply measures, the Seoul Metropolitan Government reaffirmed its existing stance against using greenbelts for housing supply.

The city also expressed regret that policies exerting a significant impact on citizens' lives and the housing market were formulated and announced without sufficient prior consultation with Seoul.

Seoul announced this position through a press release following the government's unveiling of the "Swift Housing Supply Measures to Stabilize Jeonse, Monthly Rent, and Sales Markets."

First, regarding the use of greenbelts in the Seoul area under government review, the city maintained its existing policy that "releasing greenbelts is difficult to accept in principle."

Seoul emphasized that utilizing green spaces—which are assets for future generations—for housing supply should be a last resort, and that revitalizing redevelopment and reconstruction in downtown areas equipped with jobs, transportation, and living infrastructure represents the most direct and effective supply measure to meet housing demand in Seoul.

Seoul also stated that while it agrees with the direction of the government's measures to expand public housing supply, additional consultation is required regarding specific project methods and site selection.

Regarding the public housing complex redevelopment project, the city pointed out that it remains unclear whether areas Seoul suggested excluding from candidate sites have been reflected, demanding that thorough consultations take place with Seoul before finalizing candidate sites.

The city's position on the Yongsan International Business District is that an appropriate volume of housing should be determined within a range that does not compromise international business functions, and that the expansion of infrastructure such as schools and the securing of community acceptance must precede.

Seoul gave a positive evaluation to the partial acceptance of regulatory improvement proposals it has continuously raised in the urban maintenance project sector.

The government measures included lowering the consent rate for establishing redevelopment associations from 75 percent to 70 percent and improving the method for calculating the Loan-to-Value (LTV) ratio for relocation cost loans in maintenance projects.

Requirements for private contracts and standards for mandatory securing of parks and green spaces during builder selection were also partially eased.

All of these contents are proposals that Seoul has continuously recommended to the government.

Seoul assessed that the realistic pricing of acquisition costs for public contribution rental housing and the expansion of project financing (PF) financial support will also help lower project cost burdens and accelerate maintenance projects.

However, the city pointed out that core tasks directly affecting project profitability and transaction conditions—such as easing restrictions on the transfer of association member status, raising the floor area ratio for private maintenance projects, and adjusting mandatory ratios for redevelopment rental housing—were omitted, necessitating additional improvements.

Regarding relocation cost loans, the city requested the prompt establishment of specific application criteria that can lower actual resident burdens, going beyond merely improving the LTV calculation method.

In the private rental and financial sectors, the city viewed that the expansion of PF guarantees and the easing of LTV for new housing sales and rental businesses will help increase private housing supply capacity.

However, noting that easing financial regulations alone while maintaining tax systems and actual residence requirements as they are could limit the effects of supplying rental housing and stabilizingjeonse and monthly rent markets, the city demanded a comprehensive review of related regulations, including the tax reform bill announced on the 3rd.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.