Seoul to lift greenbelt to build 10,000 new homes

The South Korean government is pushing for the enactment of a special law to accelerate reconstruction and redevelopment projects. It is also planning to lift greenbelt restrictions in the metropolitan region to designate new housing sites for 80,000 new housing units, including at least 10,000 in Seoul.

On Thursday, the government held a meeting with real estate-related ministers and announced a plan to expand the housing supply to stabilize the housing market. As part of this plan, the government intends to establish a "Reconstruction and Redevelopment Promotion Act" (tentative name) to streamline the project stages from safety inspections to completion, reducing the typical project duration from 15 years to nine years. Additionally, the maximum floor area ratio for redevelopment projects will be temporarily increased by up to 30 percentage points for three years. This is the fourth housing supply measure introduced under the Yoon Suk Yeol administration. Despite previous regulatory relaxations, the supply of urban housing has not progressed swiftly, prompting the government to introduce this special law.

The government also plans to lift greenbelt restrictions in the metropolitan area, designating new housing sites for 50,000 units in November this year and another 30,000 units next year. This move to release greenbelt areas in Seoul for large-scale housing construction marks the first time in 12 years since the Lee Myeong-bak administration in 2012.

However, there is uncertainty about whether the promotion law and related measures will pass through the National Assembly, where the ruling party does not have a majority. A key official from the main opposition Democratic Party said in a phone call with The Dong-A Ilbo, "Although no party stance has been decided yet, it will be difficult to agree to easing regulations on reconstruction and redevelopment." Nevertheless, some analysts suggest that Lee Jae-myung, a strong candidate for the next party leader, might consider policies targeting the middle class, which could open the door to more favorable discussions.


Ho-Kyeong Kim kimhk@donga.com