[비즈한국] The Yongsan International Business District development project in Seoul declared its revival with a groundbreaking ceremony late last month, only to hit a roadblock just days later. This follows the Ministry of Land, Infrastructure and Transport’s official denial that the Yongsan International Business District site is exempt from the government's suspension of asset sales. After unveiling the local development plan in February last year, the Seoul Metropolitan Government selected the Korea Railroad Corporation (KORAIL) and Seoul Housing & Communities Corporation (SH) as project executors, completing preparations for construction on the 20th of last month. However, the project has faced criticism for adopting a development method that involves selling public land to the private sector.
On the 5th, the Ministry of Land, Infrastructure and Transport released a press statement clarifying that reports claiming the Yongsan International Business District development site had been granted an exemption from the government's asset sale ban were untrue. The Ministry explained, "Following the President's recent directive to 'completely halt the sale of government assets,' the Yongsan International Business District development site owned by the Korea Railroad Corporation (KORAIL) is also subject to the President's directive." The previous day, a media outlet reported that the government had decided to exclude the KORAIL-owned Yongsan development site from President Lee Jae-myung’s directive to suspend government asset sales.
The Yongsan International Business District project involves the development of the former Yongsan Maintenance Depot site. The plan aims to transform the 460,000-square-meter railway maintenance facility site west of Yongsan Station into a space that integrates international business, smart industries, housing, culture, and leisure. The project is being pursued by establishing infrastructure and then selling the land to the private sector for development. After announcing the development plan in February last year, the Seoul Metropolitan Government selected KORAIL (70% stake) and SH (30% stake) as executors and completed preparations for construction with the approval of the implementation plan on the 20th of last month. On the 27th, a groundbreaking ceremony was held to declare the project's revival.
Some have criticized the method of selling public land to private entities for development. The Joint Committee for Strengthening the Public Nature of Yongsan Maintenance Depot Development held a press conference in front of the groundbreaking ceremony site on the 27th of last month, arguing, "Developing the Yongsan Maintenance Depot, a large-scale public site in the heart of Seoul, by selling it to the private sector means that multinational corporations will monopolize land in downtown Seoul and privatize public land." They added, "The Seoul Metropolitan Government and KORAIL must withdraw the plan to sell the Yongsan public land and seek ways to expand the supply of public rental housing and utilize the land for the benefit of citizens."
Previously, President Lee Jae-myung issued a directive on the 3rd of last month to completely suspend government asset sales. The order requires a total review of all ongoing and pending asset sales before deciding whether to proceed. President Lee instructed that while sales of non-essential assets should be refrained from, any unavoidable sales must receive prior approval from the Prime Minister. Analysts suggest this action was taken in response to mounting criticism that state-owned properties were sold off at "bargain-basement prices" during the Yoon Suk-yeol administration. The former Yongsan Maintenance Depot site was also mentioned as a candidate for the sales suspension.
In August 2022, the Yoon Suk-yeol administration announced its "Plan for the Sale and Activation of State-Owned Property" at an Emergency Economic Ministers' Meeting, pledging to sell over 16 trillion won worth of assets over the next five years. In reality, while the total sales of state-owned property by the Korea Asset Management Corporation amounted to approximately 65.6 billion won between 2020 and 2022, the figure jumped 7.3 times to 478.7 billion won from 2023, after the launch of the Yoon Suk-yeol administration, through this year (as of the end of October). The winning bid rate for state-owned property—which exceeded appraisal values at 110% in 2020, 102% in 2021, and 104% in 2022—dropped to 91% in 2023, 78% in 2024, and 74% in 2025.