The government said on the 20th that under the "Comprehensive Plan for Government Property" for 2027, it will push a project to build "senior residences" on vacant state-owned land, including the reserve forces training ground site in Yeongdo, Busan. A senior residence is a building where housing, medical institutions, and nursing facilities are located together. In recent years, major builders have mainly built and supplied them in the greater Seoul area.
On the day, Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Strategy and Finance, chaired the 29th State Property Policy Review Committee and said, "We will raise the value of state property, worth 1,400 trillion won, to create national wealth, and build a virtuous cycle in which the gains are returned to the people." Since 2012, the government has drawn up a comprehensive plan under the State Property Act and submitted it to the National Assembly after approval by the Cabinet.
◇ 2,000 youth dorm rooms on Seoul land owned by private schools and scholarship foundations
The Ministry of Strategy and Finance said it will use state property for housing support by supplying senior residences on idle state-owned land outside the greater Seoul area. Candidate sites mentioned include the Ministry of Oceans and Fisheries (MOF) housing site in Busan and the Wonju Prison site in Gangwon. The plan is to supply housing by "long-term lend," under which the land is leased to the private sector for up to 50 years at low rent. A Ministry of Strategy and Finance official said, "We will select candidate sites and carry out pilot projects in consultation with related ministries, including the Ministry of National Defense, and local governments."
The government is also pushing a project to supply 2,000 youth dorm rooms at the Korea Customs Service's Guro Center and the Ministry of Education's Haengdang-dong site. A project to establish a dorm on the Haengdang-dong site was pursued in 2016 but fell through when the local government did not cooperate. To build a dorm on the site, the land-use designation must be changed to "land for multi-unit housing," but the authority-holding Seongdong District Office did not grant approval due to concerns about a drop in nearby apartment prices.
The government expects that if the "special act on complex development of old public office buildings and residences," which is pending in the National Assembly, passes, permitting issues will be resolved. The bill would delegate to the Ministry of Land, Infrastructure and Transport the permitting authority for development of idle sites owned by the state.
In addition, a project to repair and renovate idle buildings such as closed police substations and rent them at low cost to older adults, youth, and social enterprises will proceed with 12 this year and 15 next year. The government also decided to expand the number of public truck parking depots on idle sites managed by Korea Expressway Corporation (KEC) from the current 12 to 72. Under the plan, KEC will lease the land to local governments, and the government will grant special provisions to reduce usage fees and extend usage periods.
◇ 200 old government offices and residences to be redeveloped... push to enact the Basic Act on National Assets
Starting next year, a project to rebuild 200 old government offices and residences nationwide will begin. Of all government offices and residences nationwide, 2,119 buildings (28%) are 30 years old or more. As the Government Properties Management Fund, the development financing source, amounts to only about 3 trillion won, the government will pursue a plan to expand capital by contributing in-kind equity in public institutions held by Korea Asset Management Corporation (KAMCO) and having it carry out the development under mandate. In addition, a project to carry out complex development of 14 overseas public office buildings, including those in New York, Hanoi, and Mexico City, will proceed.
Meanwhile, the government said it will newly name as "national assets" and integrate management of items such as virtual assets, which are currently excluded from the concept of state property, by enacting the "Basic Act on National Assets." It will also build a dedicated database (DB) for national assets. In addition, the Ministry of Strategy and Finance plans to allow itself to directly request abolition of land-use designations from local governments that fail to make good use of state property. The surcharge for unauthorized occupation of state property will also be raised from 120% to 200% of the usage fee or lend fee originally due.