Seoul Designates Third New Town Candidates

The Seoul city government has chosen nine candidate villages for its third New Town Development Project: Sungin-dong in Jongno-gu, Sanggye-dong in Nowon-gu, Susaek-dong in Eunpyeong-gu, Bukahyeon-dong in Seodaemun-gu, Siheungdong in Geumchon-gu, Shingil-dong in Yeongdeungpo-gu, Heukseok-dong in Dongjak-gu, Shinrim-dong in Gwanak-gu, and Geoyeo-dong & Macheon-dong in Songpa-gu.

In addition, three new areas were added to the list of balanced development promotion zones: Gueui & Jayang-dong in Gwangjin-gu, Mangu-dong and Sangbong-dong in Jungrang-gu, Cheonho-dong in Gangdong-gu.

As the Seoul City Office announced on Monday the candidacy for the third New Town Development plan, New Town construction zones have increased from the current 15 (three for first project and twelve for second) to 26 (including two districts that have not chosen their own candidate village yet), and balanced development promotion zones have increased from five to eight.

Dongdaemun-gu and Seongbuk-gu, which both applied for New Town candidacy with more than two runners, will narrow down their choices shortly.

The Seoul city office will make a final decision on the third new town areas based on development outline reports that are to be submitted by the end of this year by each district. After basic development plans devised in the first half of 2006, the third new towns will be constructed with completion set for 2014.

To deter real estate speculation in new towns, the city office is going to recommend to the central government that every land transaction in these areas be first approved by the government, and the new town areas be designated housing transaction declaration zones and speculation zones.

To withdraw excess capital gains by new town development, the city office will estimate profits from development in each zone. The city office will make developers donate more land for public use in a zone where profits exceed the anticipated level, and will expand subsidies for less profitable zones.

Tae-Hun Hwang Chin-Ku Lee beetlez@donga.com sys1201@donga.com