Minister Park Sang-woo orders that management must be thorough for the stability of people's livelihoods and national safety during the meeting held at the Sejong Government Complex in Eojin-dong, Sejong City on the morning of Nov. 9. /Courtesy of Ministry of Land, Infrastructure and Transport

Minister of Land, Infrastructure and Transport Park Sang-woo stated on the 18th that there are plans to supply a total of 7,700 dwellings to support relocation during the reconstruction of the first-generation new towns, including Bundang, Ilsan, Pyeongchon, Jungdong, and Sanbon. As concerns grew that the real estate policies of the Yoon Seok-youl government would falter amid the impeachment political situation, the relocation measures for the first-generation new town maintenance project were disclosed in advance. In particular, Minister Park assessed that the first-generation new town project is "not a special policy of the Yoon Seok-youl government, but a promise made by all past ruling and opposition parties," and emphasized that the project would not be halted regardless of the current government's situation.

During a press briefing held at the Government Sejong Complex in the Jeong-dong district of Sejong City, Minister Park noted, "We will consistently push forward with the policies currently being pursued as originally planned," while announcing some of the relocation measures for the first-generation new town maintenance leading districts.

To support relocation for the first-generation new town, the Ministry of Land, Infrastructure and Transport plans to utilize vacant land such as the health center site near the Central Library in Seongnam City (1,500 dwellings) to supply a total of 7,700 dwellings. The Korea Land and Housing Corporation (LH) will build public sale dwellings and provide them for relocation to residents of the first-generation new town leading districts before proceeding with public sales. This decision takes into account the total housing supply (occupancy) within and outside the living quarters of first-generation new towns from 2027 to 2031 and the total relocation demand during the same period. Housing supply will primarily be concentrated in Bundang, Pyeongchon, and Sanbon.

Minister Park explained, "We have identified that the total housing supply capacity to accommodate relocating households in each first-generation new town living area is sufficient." However, he assessed that "some adjustments will be necessary depending on the region and timing." He further stated, "In the cases of Ilsan and Jungdong, there are many other development projects, so we are not in a situation to discuss separate relocation housing," while noting that "there are some points where supply is insufficient in Bundang, Pyeongchon, and Sanbon, so supplying 7,700 dwellings would be more than enough for over 10% of the total relocation amount."

Minister Park remarked, "(The housing for relocation support) will be constructed by LH in a public sale format," adding that, "We will not sell them immediately but rather hold onto the housing quantity for relocation purposes before proceeding with public sales later."

Minister Park observed that there would likely be no need for separate relocation measures for the reconstruction of the first-generation new towns following the relocation of the leading districts. He mentioned, "If the leading districts proceed normally, I believe that even without supplying separate housing for relocation, the amount of housing will increase, allowing us to absorb the demand for the second and third relocations."

Minister Park dismissed the possibility that the first-generation new town leading district project would derail. He explained, "The special law related to the first-generation new towns was part of the promises made by candidates from both ruling and opposition parties during the last presidential election," and noted that "the bill also passed with mutual agreement between the parties." He continued, "I ask you to think that the reconstruction of the first-generation new towns is not something created specifically by the Yoon Seok-youl government, and it will proceed as originally scheduled regardless of the current situation, since it originated from the promises made by both parties. It is appropriate to move forward with the project regardless of the political situation."

The view of the Wuseong and Hyundai Apartments in the Seongnam Bundang District on the afternoon of Oct. 27. /Courtesy of Yonhap News

On that day, Minister Park also stated that in addition to the first-generation new town maintenance leading district project, he would push forward with housing supply measures that activate reconstruction and redevelopment, as well as lifting development restrictions (green belts) without any setbacks. He mentioned, "The Ministry of Land, Infrastructure and Transport is an important department for stabilizing housing supply and demand" and added, "We will ensure that the matters announced in the 8.8 measures are implemented without any setbacks." Furthermore, he noted, "Half of the legislative measures aimed at revitalizing reconstruction and redevelopment projects, such as early safety inspections and the introduction of electronic voting for union general meetings, have passed through the National Assembly," stating that "the fast track law for reconstruction and the amendment of the urban maintenance law are under review, where intense discussions are occurring between the parties, and all members have a high understanding, which raises the likelihood of passing other bills."

Through these measures, Minister Park dismissed concerns regarding housing supply shortages in the market. He explained, "Many people are worried about housing supply after 2026, but upon precise estimation of the data, it seems that the amount of construction starting in the second half of this year has increased," adding, "We believe we can agree on nearly 50,000 new purchase agreements within this year." He further added, "The supply amount through new purchase agreements includes quantities that are not accounted for under the current system, and if we hurry, we believe the situation will be stable enough by the year after next."

At the same time, Minister Park described the current real estate market as "very quiet," stating, "In Seoul, the price increase has almost come to a halt, and while there is a downward trend in the provinces, it is not a significant drop." He further remarked, "During the past impeachment political situation, the housing market was also retracted for about three months, and I believe it will be the same now," adding, "After this period, I believe the market will move according to the supply and demand situation."