The government has expressed its intention to designate first-phase new towns as leading districts and accelerate reconstruction, but the schedule for designating preliminary project implementers for the first-phase new towns has been postponed from the original plan. Additionally, with the rise in various expenses, there is growing concern among the group members of designated districts about the increased contributions.
According to the maintenance industry on the 17th, the Ministry of Land, Infrastructure and Transport's guidelines regarding the designation of preliminary project implementers, which were initially expected to be released earlier last month, have been delayed due to the impeachment political situation and are now expected to be released by the end of this month or early next month. This is approximately 1 to 2 months later than the original schedule.
The designation of preliminary project implementers is a pre-review process conducted prior to the promotion of reconstruction projects, including guidelines for selecting trustees as the implementing entity when pursuing reconstruction not through the cooperative method but through the trust method, as well as procedures and methods for establishing special maintenance plans. This stage involves the local government head, who becomes the main body of the urban maintenance project, presenting the maintenance project plan to residents before drafting the maintenance plan and entering the review by the Urban Planning Committee.
Previously, the Ministry of Land, Infrastructure and Transport designated 13 zones, totaling 35,987 housing units, as leading districts for the reconstruction of the first-phase new towns in November last year. Following the approval of the project implementation plan in 2026, construction is set to commence after the relocation of residents from the 13 zones, aiming for occupancy by 2030.
Concerns are emerging among members of designated districts that recorded high consent rates, as substantial additional contributions are expected in some areas designated as leading districts, and the possibility of project delays due to the impeachment political situation continues to be raised.
A representative from real estate agency A near Woosung Apartments, designated as a leading district in Bundang, said, "Since the beginning of the selection process, the burden of contributions and the lack of adequate relocation measures proposed by the government have been ongoing issues. As concerns about project delays grow, residents are worried that if construction is delayed, the cost of construction will rise, leading to even higher contributions."
A representative from real estate agency B near Hukhok Village, designated as a leading district in Ilsan, stated, "The high consent rate among residents during the application process was based on agreement with the application and reconstruction itself, but the crucial factor is the scale of contributions since the process proceeded with a mindset of 'let's see how it goes' after designation. It remains to be seen whether members will agree if additional contributions worth billions of won arise, as some residents may not have the capacity to bear such burdens. Especially since housing prices in the first-phase new towns have already risen, considering contributions, the capital gains after reconstruction may not be significant."
Meanwhile, there are residents waiting for the Ministry of Land, Infrastructure and Transport to provide guidance to prevent further confusion. A resident from Yangji Village in Bundang, identified as C, said, "We are aware that the schedule related to the first-phase new town leading districts is somewhat delayed due to governmental circumstances, and the residents are not expressing any particular complaints or grievances, hoping that the Ministry of Land, Infrastructure and Transport will handle these tasks."
However, the Ministry of Land, Infrastructure and Transport stated that there would not be significant obstacles, noting that even if they face opposition from residents, the promotion of the leading district projects will proceed as planned. A representative from the Ministry noted, "Guidelines related to the designation of preliminary project implementers are expected to be announced within the first quarter," adding, "There will be no delays to the overall projects."
Regarding concerns about contributions, it was noted that "maintenance projects may encounter conflicts within the cooperative, and the objective of the reconstruction project for the first-phase new town leading districts is to prevent such conflicts in advance and to push the project forward. Even if residents oppose due to contribution issues, the effectiveness of the designation as a leading district will not disappear and will be pursued as planned. However, if conflicts intensify, there is a possibility of some delays."
Experts pointed out that if contributions increase significantly, it may be difficult to expect profits from reconstruction. Song Seung-hyun, representative of Urban and Economy, said, "Recent surges in prices and construction costs are steep, and if projects are delayed, there is a high likelihood that construction costs will rise. If construction costs rise, the burden of contributions may increase. Furthermore, since prices of APT.s in first-phase new towns have recently been established at high levels, if contributions increase, the capital gains may fall below expectations. Especially due to the rise in real estate prices in first-phase new towns, there is a growing demand for entry into the Seoul metropolitan area."