Seoul's Dongja-dong jjokbang district to become public housing zone, 2,150 homes planned
In short
South Korea's land ministry said on 20 October that the Dongja-dong jjokbang district (쪽방촌) in Seoul's Yongsan District will be designated a public housing district, with notice due on 21 October. The Korea Land and Housing Corporation (LH) is to supply 2,150 homes, with construction targeted for 2029 and completion and move-in for 2032.
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The Ministry of Land, Infrastructure and Transport said on 20 October that it will designate and notify 47,573.9 square meters around the Dongja-dong jjokbang district in Seoul's Yongsan District as a public housing district on 21 October, according to Seoul Shinmun, Newsis and Yonhap. LH is to carry out the project, supplying 1,000 public rental homes and 1,150 for-sale homes, 2,150 in all. After district planning, compensation and relocation, the ministry is aiming for construction to start in 2029 and for completion and move-in in 2032. [ 1 , 4 , 5 ]
Existing jjokbang residents are to get priority for public rental homes of at least 21 square meters, each with its own cooking facilities, bathroom and toilet, and heating and cooling. Temporary housing is to be provided during construction, and the ministry plans to support residents from relocation through resettlement. Newsis and Yonhap said the ministry expects the area, which is next to Seoul Station and has dense office and commercial facilities, to be reorganised as a high-density mixed-use space. [ 2 , 4 , 5 ]
The government is also changing compensation rules and widening private participation. Private builders may join public housing projects as co-operators; Seoul Shinmun said this has been allowed since September, and Newsis said the relevant guidelines were revised. A household holding a single in-kind compensation sale right is to receive a long-term residence deduction if it transfers the right, and the in-kind compensation status can be passed on once. Newsis put the tax relief at no tax on transfer values up to 1.2 billion won and up to an 80 percent deduction above that. [ 1 , 2 , 3 , 4 , 7 ]
Residents who cannot afford the contribution will be able to choose profit-sharing housing, sold at 50 to 80 percent of the standard in-kind compensation sale price, under a scheme to be introduced in November, according to Yonhap and other outlets. Hankook Ilbo described it as housing that shares future price rises with the public. [ 2 , 3 , 4 , 5 , 6 , 7 ]
Seoul Shinmun said the ministry announced the project in February 2021, then planning construction in 2023 and public rental move-ins from 2026. It said landowners objected to compulsory acquisition and the level of compensation, and the project stalled. Owners wanted private redevelopment, while jjokbang residents urged public development so they could resettle stably. Asia Economy reported that no district designation took place for five years, and described the area as designated. [ 1 , 3 ]
Hankook Ilbo said opposition among residents remains and that gathering views during compensation and relocation is the key issue. It said a residents' private redevelopment committee has opposed the public project and wants private-led redevelopment, and that protests at a ministry meeting with residents in April confirmed the conflict. Housing supply policy director Lee Jae-pyeong (이재평) said that with the designation the project has reached a concrete implementation stage, and that the ministry will support residents' stable resettlement and fully gather the views of the residents' council. [ 3 , 4 , 6 , 7 ]
Why it matters
The designation moves a project announced in 2021 into its implementation stage, according to the ministry. Hankook Ilbo said that gathering residents' views during compensation and relocation is the key test, as residents and landowners have not been reconciled over the past five years.
Key facts
- The Ministry of Land, Infrastructure and Transport said on 20 October that about 47,573 square meters around the Dongja-dong jjokbang district in Seoul's Yongsan District will be designated a public housing district. [ 2 , 3 , 4 , 5 , 7 ]
- Several outlets say the designation notice is due on 21 October. [ 1 , 4 , 5 , 6 ]
- Plans call for 2,150 homes: 1,000 public rental homes and 1,150 for-sale homes. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- LH is the project operator. [ 1 , 4 , 5 , 7 ]
- After district planning, compensation and relocation, the target is construction in 2029 and completion and move-in in 2032. [ 1 , 2 , 3 , 4 , 5 , 6 , 7 ]
- Existing jjokbang residents are to get priority for public rental homes of at least 21 square meters, each with its own cooking facilities, bathroom and toilet, and heating and cooling, plus temporary housing during construction. [ 2 , 3 , 4 , 5 , 7 ]
- A scheme letting residents who cannot afford the contribution choose profit-sharing housing at 50 to 80 percent of the standard in-kind compensation sale price is to be introduced in November. [ 2 , 3 , 4 , 5 , 6 , 7 ]
Confirmed by several sources
- The ministry said it is designating the Dongja-dong jjokbang district a public housing district, with 1,000 public rental and 1,150 for-sale homes, a 2029 construction start and 2032 completion and move-in as targets. [ 2 , 3 , 4 , 5 , 7 ]
- Existing residents are to receive priority for public rental homes of at least 21 square meters with their own cooking, bathroom, toilet and heating and cooling facilities, and temporary housing is to be provided during construction. [ 2 , 3 , 4 , 5 , 7 ]
- Private builders may take part as co-operators in public housing projects. [ 1 , 2 , 3 , 4 , 7 ]
- Profit-sharing housing at 50 to 80 percent of the standard in-kind compensation sale price is to be introduced next month for owners who struggle to pay the contribution. [ 2 , 3 , 4 , 5 , 7 ]
Still unclear
- Whether residents and landowners will accept the project Hankook Ilbo said opposition among residents remains, and that a residents' private redevelopment committee has opposed the public project and wants private-led redevelopment; other outlets do not mention current opposition.
- The exact date of designation Seoul Shinmun, Newsis, Yonhap and Hankook Ilbo say it will be designated and notified on 21 October; Asia Economy says the ministry announced on 20 October that it had designated the area.
- Details of the tax relief for in-kind compensation rights Only Newsis gives figures: no tax on transfer values up to 1.2 billion won and up to 80 percent long-term residence deduction above that. Other outlets describe the relief only in general terms.
What local media are saying
Timeline, local time
- Seoul Shinmun reports the ministry said it will designate and notify the district on 21 October. [ 1 ]
- Yonhap, Newsis, Chosun Ilbo, Asia Economy and Hankook Ilbo publish the ministry's announcement of the designation and the 2,150-home plan. [ 2 , 3 , 4 , 5 , 6 ]
- Maeil Business reports the ministry's designation announcement and LH's role as project operator. [ 7 ]