Category: Seoul

Here is what the Korean government plans to do to try and drop real estate prices in Seoul:

The government is facing a severe public backlash following the announcement of its latest measures to curb rising real estate prices in Seoul, which many experts claim skew toward demand-side regulations.

The experts said the government should consider supplying more homes in Seoul’s affluent areas, describing the lopsided policies focusing on taxes and loan control as a violation of free market principles. 

The set of rules announced Monday includes raising property taxes on multiple homeowners, banning mortgage lending on properties worth over 1.5 billion won ($1.3 million) and driving down the requirement for the loan-to-value ratio from 40 percent to 20 percent on those valued at 900 million won or higher but less than 1.5 billion won.

While legal and economic experts defined the regulations as unconstitutional and anti-market approaches, progressive civic groups claimed the policies are not effective enough to achieve their intended goals.

Korea Times

You can read more at the link, but as long as supply of housing is low in the central Seoul area and demand is high, the prices will continue to increase. Here is what the Seoul Mayor wants to do:

He also criticized Seoul Mayor Park Won-soon for his remarks that the government should triple the comprehensive real estate holding tax and the ownership of real estate should be shared among citizens.

So if real estate is shared among citizens does that mean that people can just walk into Lee Myung-hee’s home, that is considered the most expensive in Seoul, and hang out?

This is a neat idea:

Mini-gardens have become synonymous with urban regeneration projects in Seoul. Some, like the new solar garden at Jonggak Station on Seoul Metro Line 1, are popping up underground.

The solar garden ― small but claimed to be the world’s first solar-powered subterranean park ― opened in an underground passageway at Jonggak Station last Friday, placed right in front of the Jongno Book Store and a row of booths selling handcrafted goods made by young artists. 

Mandarin trees and verdant bushes grow under natural sunlight, emitted from eight ceiling apertures connected to light-collecting dishes installed directly above at Jongno Tower Square on the ground. The ceiling is dotted with backup LED lights used at night or on cloudy days. 

Korea Times

You can read more at the link.

Another huge building is coming to the ROK:

The Seoul city government said on Tuesday that it has approved the long-delayed construction of Hyundai Motor Group’s new headquarters in the affluent district of Gangnam, which is set to be South Korea’s tallest skyscraper when completed in 2026. 

The 569-meter building will break ground in the first half of 2020, Seoul city said in a statement. 

The approval came more than four years after Hyundai Motor Group, South Korea’s second-largest conglomerate, offered to purchase the site with $10 billion in 2014, more than triple its market price, outbidding Samsung Electronics Co Ltd and sparking a stock sell-off.

The construction, originally scheduled to commence in 2016, was delayed partly due to security concerns raised by South Korea’s air force, which said the building would interfere with radar and military operations, a Seoul city official said.

Reuters

You can read more at the link.

Via a reader tip comes this news that Itaewon is experiencing major economic problems in the aftermath of the relocation of Yongsan Garrison:

Retail businesses in Itaewon area are struggling due to soaring rent and the economic slowdown. Youngsters and foreigners still visit the area for drinks and partying at night, but activity is completely different during the daytime. 

“A tenant store owner asked for the rent to be lowered several months ago. He said his brunch store was losing customers so he couldn’t pay the current rent,” said a Gyeongnidan building landlord surnamed Lee. Gyeongnidan is one of Itaewon’s neighborhoods, known for its cafes, bakeries and restaurants.

“He and I agreed to keep the rent at the current level for now. However, he is likely to shut down his business soon if it fails to attract more customers.”

According to the Korea Appraisal Board, the vacancy rate of medium- and large-sized stores in Itaewon area stood at 26.5 percent as of the second quarter of this year. 

Medium- and large-sized stores here refer to business venues with a gross floor area larger than 330 square meters, and the vacancy rate in Itaewon is the highest among Seoul’s major business districts.

Experts said the Yongsan Relocation Plan to redeploy U.S. Forces Korea (USFK) personnel south to Camp Humphreys in Pyeongtaek, Gyeonggi Province, was another reason behind the soaring vacancies in the area.

Korea Times

You can read more at the link, but first of all USFK has nothing to do with the poor economic conditions overall in South Korea. Additionally the way I look at this is that the local government and shop owners in Itaewon have known for years the relocation was coming. If they did not adjust their business models and practices to prepare for that day that is their problem, not USFK’s.

I can understand why people would want to have days where the public can enjoy the Gwanghwamun area without protesters everywhere. However, it is interesting that this idea comes up when it is conservative groups busy rallying against the liberal Korean president. When the liberal groups were rallying against the former conservative President Park Geun-hye the city government did not consider doing this:

Squares and plazas in Seoul, open to all including protests and sit-ins, may get a “break” day.

Citizens have been calling for a “break” from rallies at Gwanghwamun Square, Cheonggye Plaza, Seoul Plaza and other public spaces in downtown Seoul, and the city government is seriously considering this.

Seoul Metropolitan Government said Tuesday it is considering designating a “no-rally day” regularly, a day without any protests, rallies, or other events at the locations so that the public can use them. 

Korea Times

You can read more at the link.

Here is some information to keep in mind when traveling on public transit in Seoul:

Seoul’s subway Line 2 is the most sexual crime-prone public area with 2,069 cases over the past five years. Among stations, Express Bus Terminal on Line 3 topped the list with 56 cases in the January-July period.

Rep. Han Sun-gyo of the main opposition Liberty Party of Korea revealed the figures on Sunday, citing National Police Agency data. 

Subway Line 9 was the second most prone with 1,479 cases since 2015, followed by Line 1 (848 cases), Line 4 (756 cases), Line 3 (407 cases), Line 5 (288 cases), Line 6 (163 cases) and Line 8 (41 cases). 

Noryangjin Station was the second most sexual crime-prone subway station (24 cases since July) after the Express Bus Terminal. Third was Yeouido (23 cases), followed by Sadang (21 cases), Seoul Station (20 cases), Gangnam (19 cases), Dongjak (18 cases) and Sindorim (17 cases).

Korea Times

You can read more at the link.