The compensation for the 'Godeok Sangnok Jugong Complex 8' (hereinafter referred to as Sangnok Apartment), which had been left as an eyesore in the city center due to land compensation issues for several years, is now in the final stages. Although the public land price exceeds 500 billion won and the market price exceeds 1 trillion won, the area was unable to proceed with demolition after relocation due to unresolved land compensation issues. Once the compensation is completed, this prime location is expected to be developed into a mixed-use facility, assessed to be more valuable than the nearby 'Godeok Gracium'.
According to the Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH) on the 14th, the outline of the land compensation plan for the Sangnok Apartment near Godeok Station, which is being developed as part of an urban public housing complex project, has recently emerged. This apartment complex, which was completed in 1984, consists of 700 rental units for public officials. It is owned by the Government Employees Pension Service and has a land area of 57,723.5 square meters at 307 Godeok-dong. It is located adjacent to Godeok Station, which is on the extended routes of Seoul Subway Lines 5 and 9, benefiting from a double transit station, with Paichai High School directly across the main road.
Although the relocation from this apartment complex has been completed, it was left as an eyesore in the middle of Gangdong-gu for several years because the land compensation issue has not been resolved, preventing demolition. The public land price alone is estimated to be 580 billion won, and the actual market value is believed to exceed 1 trillion won.
In 2022, the government designated this apartment complex as a candidate site for urban public housing complexes. The urban public housing complex project aims to supply housing by redeveloping old urban areas through public-led high-density development.
In response, LH has planned to construct ordinary sale dwellings and commercial facilities on the southern 13,000 square meters of the site. They intended to increase the existing 700 units to about 1,800 units through increases in the floor area ratio, with plans to also carry out general sales for about 400 units. At that time, the estimated value of the site was around 230 billion won. However, LH was unable to reach an agreement on compensation for land and other matters with the Government Employees Pension Service, leaving the project in a state of limbo.
To facilitate the mixed development in this area, LH plans to provide a piece of land of the same size located in the metropolitan area, which it owns, to the Government Employees Pension Service. However, as the land provided by LH has a lower value compared to land near Godeok Station, they plan to pay the difference in cash after comparing the site valuations.
A Ministry of Land, Infrastructure and Transport official noted that 'the land compensation plan between LH and the Government Employees Pension Service has been outlined' and added, 'LH will provide a piece of land of similar size from its existing properties to the Government Employees Pension Service; because the land values differ, the difference will be compensated in cash.'
It is reported that the alternative land offered by LH is located in the metropolitan area. An LH official stated, 'We are at the discussion stage with the Service' and added, 'Nothing has been specifically decided yet.'
The Godeok Station mixed-use project is set to proceed to full-scale maintenance after passing through the proposed district designation stage shortly. According to the government's information disclosure system, the Government Employees Pension Service processed a document titled 'Proposal for Designating the Urban Public Housing Complex Near Godeok Station' the previous day. Once designated as a candidate site by the Ministry of Land, Infrastructure and Transport, the urban public housing complex project undergoes processes such as district designation proposals and complex project plan approvals before being marketed. In the case of the Godeok Station complex project, once it surpasses the district designation proposal stage, it is expected to accelerate because the land compensation and relocation issues have already been resolved. Mixed-use projects typically take 4 to 5 years.
Another official from the Ministry of Land, Infrastructure and Transport stated, 'The project is now in a position to move forward quickly' and said, 'It will proceed according to the procedures for the urban public housing complex project.'
As the Godeok Station mixed-use development project progresses, it is expected that large-scale maintenance in the Gangdong-gu area will also be completed. In particular, as the supply of dwellings such as public housing increases, it is anticipated that the supply shortage issue in Seoul will be partially alleviated. A resident of Gangdong-gu said, 'This location is more valuable than the nearby Godeok Gracium, but it had been left as an eyesore.' He added, 'I hope the compensation negotiations will be concluded quickly.'