Ruling and Opposition Parties Agree to Pass Revised Yongsan Park Act Next Week; Easing Green Space Standards to Expand Supply in Central Seoul

The ruling and opposition parties have agreed to pass a revision to the Yongsan Park Special Act next week, after hearing opinions from the Ministry of Land, Infrastructure and Transport (MOLIT) and the Seoul Metropolitan Government, which eases the park and green space requirements for the Camp Kim site. If the revision passes, it is expected to increase the supply of large-scale real estate in central Seoul, influencing housing demand and the local real estate market.

Background and Key Issues of the Bill

The Yongsan Park Special Act governs land use for the creation of a park in the Yongsan area, formerly a U.S. military base. The current law mandates that a certain percentage or more of the land be secured as park green space during development. Criticisms have long been raised that these relatively strict standards make it difficult to ensure business feasibility. The argument is that from the developer's perspective, if the saleable area decreases, profitability drops, ultimately causing the project itself to be delayed.

The Camp Kim site is a zone within the Yongsan Park creation area with strong commercial and business characteristics. The government and Seoul City have envisioned a mixed-use development combining housing and business facilities. However, due to the binding green space standards, design and feasibility studies have made little progress. If the standards are eased, the buildable area will increase, leading directly to an expansion in supply.

Core Contents and Expected Impact of the Revision

The essence of the revision is to lower the park and green space ratio applied to the Camp Kim site. Discussions have suggested a plan to make standards more flexible by calculating green space not only within the site but also in conjunction with the nearby Yongsan Park. Following previous discussions, the ruling and opposition parties requested MOLIT and Seoul City's opinions on application standards for each site and plan to process the bill at the National Assembly next week, reflecting these views.

The impact on the market is twofold. First, in terms of supply, if a large-scale complex is built in central Seoul, it could absorb some of the housing demand in the metropolitan area. Conversely, there are observations that existing apartment prices in the Yongsan area may face the burden of new supply. Given the size of the site, price volatility could increase at the point when a large volume of move-in units is released at once.

Pros and Cons

Proponents emphasize the practical effects of expanding supply and regenerating the city center. They argue that if high standards are maintained, the project will drift and the site will remain neglected for a long period. The parties' agreement on a timeline demonstrates that the political circle as a whole recognizes the need to expand supply.

There are also opposing voices. Environmental groups and some civil society organizations point out that reducing park green space could lead to the urban heat island effect and ecological destruction. The historical context that Yongsan Park itself was secured through a long citizens' movement is also cited. How the Seoul City government's opinion is reflected in the revision content is likely to be a decisive variable in future debates.

Legislative Procedure and Outlook

If the revision passes the National Assembly, follow-up procedures such as the enforcement decree and amendments to Seoul City ordinances will ensue. It is expected to take considerable time after that to select a project operator, proceed with design, obtain permits, and finally break ground. It is premature to define the actual supply scale before the specific standards proposed by MOLIT and Seoul City are released.

However, given the political momentum of the inter-party agreement, the processing of the bill itself is likely to proceed smoothly. The key is finding a balance point where the relaxed standards sufficiently guarantee business feasibility while preserving green space value. The schedule for the plenary session next week and the content of opinions from MOLIT and Seoul City are expected to serve as benchmarks for gauging the speed of future site development.