Compensation Fees for Slum Residents Surge More Than Two-fold Amid Spike in Yongsan Land Prices

As land prices in the Yongsan district of Seoul have surged, the burden of compensation fees for residents living in 'jjokbang' (slum housing) villages has more than doubled compared to last year. About 60 residents have built makeshift structures on effectively abandoned railway land and have lived there for decades while paying compensation fees to the government.

Following the commencement of a construction project for a university dormitory nearby, the officially assessed land price for the jjokbang site jumped from 2.1 million won to 6.1 million won per square meter. This occurred because the development of the adjacent site into a dormitory merged the slum area into the same land plot, and land prices reflect the official assessed value once construction breaks ground. Consequently, the compensation fee required from resident Lee In-geun rose from 610,000 won last year to 1.77 million won this year.

The Ministry of Land, Infrastructure and Transport and the Yongsan District Office are currently listening to residents' opinions and re-investigating land characteristics and officially assessed land prices.