Seoul Southwest Redevelopment: Transforming Neglected Areas for Growth

Seoul's neglected southwestern area faces a comprehensive transformation plan, including increased building density, green space expansion, and commercial development.

### Development Plans and Investment Strategies for Seoul's Last Remaining Southwest Area
* 🏗 ️ Mayor Oh Se-hoon has announced plans to develop Seoul's underdeveloped southwest area, which is currently **somewhat neglected** compared to other regions.
* 📈 The general redevelopment plan for the southwestern area involves **increasing the floor area ratio by 400%**, addressing the **shortage of green spaces**, and expanding the area by renaming it **Seoul Gimpo Airport**.
* 🏙 The Seoul City Master Plan 2040 aims to create a **city center, suburban areas, and metropolitan centers**, with **Gimpo Airport included in this vision**.
* 🏭 Guro Industrial Complex, established in 1967 as Korea's **first export industrial complex**, played a **significant role in the region's development**.
* 📈 The area is currently attracting young residents due to **relatively low land prices** and **stable job opportunities**.
* 🛤 The region's transportation infrastructure, with **multiple subway lines passing through**, is a **key strength for development**.
* 🏢 There are plans to increase commercial areas in the **southwest and northeast regions**, making it a potentially **lucrative long-term investment** to consider investing in commercial real estate.
* 🗓 The development schedule includes establishing the plan in **2024**, design in **2025**, completion in **2026**, and groundbreaking in **2027**.

Let me talk about how the last remaining Seoul area, the southwest area, will completely change. Recently, in the southwest area, which is somewhat isolated from the perspective of Seoul residents, there is a feeling of being a bit excluded. Compared to the northeast and west areas, the southwest area is considered somewhat more neglected. People living in this area may not think so, but in reality, this area is somewhat neglected. Why is that? You can see it in terms of prices. Now, in the southwest area, there are Yangcheon-gu, Yeongdeungpo-gu, Dongjak-gu, Guro-gu, Geumcheon-gu, and Gwanak-gu. Of course, Yeongdeungpo-gu and Yangcheon-gu are expensive because there is Mok-dong and Yeouido, so it's expensive. Although Dongjak-gu has also increased a lot these days, overall, including Gangseo-gu, it is relatively a bit cheaper in Seoul.

You could consider it as a region. However, now, Mayor Oh Se-hoon has thrown down the gauntlet by saying, I will try developing this area. So, you could see this as a crucial move. Then, why on earth would we develop the southwestern part of Seoul? I will talk about this today. First of all, we have a general plan for the redevelopment of the southwestern part. Since the southwestern part is now somewhat old and underdeveloped, we will increase the floor area ratio here. We will raise it by 400%. In other words, we will give 400% more so that buildings can be built as high and large as possible. Currently, there is a bit of a shortage of green spaces here. We will take care of these aspects as much as possible. Also, by changing the name to Seoul Gimpo Airport, we plan to expand this area a bit. Additionally, we will create more green spaces.

And now, there are many industrial complexes here, so the plan is to develop things like industrial complexes. In other words, it's like saying we will completely change the slightly outdated and aging things in the neighborhood. However, there is the Seoul City Master Plan 2040. So, for those of you who have time, it's good to take a look at it. For those who are interested in real estate investment, it's good to take a look at Seoul 2040. You can consider this as an extension. So, originally, with Yongsan Habi, leading the international competition and innovation, they planned to create a belt with the city center, suburban areas, and metropolitan centers. This plan also applies to Gimpo Airport. You can think of it as adding a little more vitality here. In a broad sense, in this southwestern area, there are Yeouido, Yeongdeungpo, Gasan, Daelim, and now Magok. There are three major workplaces, and

Now, you can think of the areas where commuting is done as having backgrounds. So, this place is not enviable. It has a big downtown area called Yeouido, but the rest of the areas are quite different. However, there is a reason why this place has been neglected. Basically, when you think of the southwestern region, you can mention Guro Industrial Complex. Nowadays, young people may not know much about Guro Industrial Complex, but back then, it was the first export industrial complex in Korea. It was established in 1967, right after the Korean War. It was a difficult time for Korea, but they built an industrial complex and worked hard in manufacturing and exporting.

So, a huge number of people came from various regions and worked at the industrial complex here. If you look at this picture, you can see that this place used to be just fields. It was transformed from a vast field into a large-scale industrial complex. For those who are familiar with Magok now, it may seem natural that Magok has developed this way. However, when I was young, Magok was simply fields with vinyl greenhouses. Even in the 1960s, when I was even younger, you could say that even Guro Industrial Complex was just fields. Now, many people may still not understand. Some may question if there were factories in the middle of Seoul, even in Guro. The reality is, to show how rapidly Seoul as a city developed, every ten years, the population doubled. In the 1960s, the population doubled every 10 years.

When it was 2.4 million, it became 5.4 million, then 8 million, and now it's 10 million. So, it's increasing by 200,000 right now. Seoul was originally a smaller city than people thought, but as people from all over the country started to flock in, it quickly grew into a huge metropolis. As a result, what happens is Seoul keeps getting bigger. In the old days, maybe it was just Yongsan at the main gate, but now Seoul has been expanding gradually since '36, '49. So, in '63, they started developing Gangnam, and then Yeongdeungpo, and now Gangnam has become Yeongdong. Yeongdong was named because it's on the east side of Yeongdeungpo. So, when Gangnam and Gangdong were developed, you could say it started. So, even in the early '60s, places like Guro were basically rural countryside areas, or something like that.

So, in the past, even in the era of our mothers' generation, they had to move to Seoul for jobs. It was the time of Ichondong when many people worked in factories, did various jobs, or ran small businesses to earn money. It was around 40 to 50 years ago. In this photo from the 1980s at Guro Industrial Complex, you can see that the factories were densely packed, but there were no high-rise buildings. They were mainly engaged in manufacturing, starting with simple tasks like sewing factories and later producing various goods. However, times have changed. As we entered the 1990s and 2000s, the strength of factories and industrial complexes started to decline. Urbanization began, leading to transformations. If you visit now, in fact,

We have developed more than pictures. But as we entered the 2000s, we changed the name to a digital complex. It's no longer an industrial complex. It's now a place for nurturing digital complex venture companies. So it has changed significantly. Therefore, various tax benefits are provided here to foster these ventures. So, until the 1990s, we used to produce a lot of machinery, electricity, and electronics, but since the 2000s, the Guro Industrial Complex has been steadily decreasing. Since around 2010, non-manufacturing companies, such as IT ventures and information communication companies, have entered a lot. So now, practically speaking, you can hardly feel the atmosphere of an industrial complex. Oh, something else came out here. That is, Pororo. Pororo, the president of children, started a company here.

So, Pororo was born in the Guro Digital Complex. Over the past 60 years, there have been many changes here. Some areas were considered neglected with relatively low land prices and affordable prices in general. The overall rent is also cheap, and there are quite stable job opportunities. Therefore, many young people live around here. Among the one-person households, young people aged 25 to 34 are concentrated in the southwest. This area is relatively affordable, with Line 2 passing through, attracting many young people. Some industrial complexes are also a bit neglected. So, the idea of developing this area to enhance Seoul's competitiveness comes up. There are still many places here where past regulations are hindering progress. Why is that?

This is now an area for intellectual editing, right? If you see the blue color here, it's a quasi-industrial area or an industrial area. So, because this place originally started as an industrial complex, oh, there are still many factory sites remaining here. So, although it is changing, it is still underdeveloped. Also, industrial areas are heavily regulated. Moreover, since it was relatively undervalued, it's better to develop elsewhere rather than investing heavily here. That's why the development momentum is a bit weak. Therefore, now the Seoul Metropolitan Government is planning to inject some energy here. Because the location is good, you can go to downtown Seoul, Gwanghwamun, Yeouido, and even Gangnam because Line 2, Line 7, and Line 9 are all connected. So, the transportation is good.

The location is great, except for one neglected aspect. So, if we consider it as an investment, the perspective might differ. Ultimately, looking at the Seonam District redevelopment project from a long-term investment point of view for over 10 years doesn't seem bad. In the end, it is likely to be developed here. I also think so. Rather than investing in housing now, it seems more advantageous to invest in commercial properties. Buying a building or purchasing land where buildings can be constructed based on favorable transportation conditions. Basically, there are plans to expand the Seoul Ogae living zone and develop new commercial areas. This is because there are not many commercial areas in Seoul as expected. This means that the city does not develop high-density development well, like in Tokyo or other places.

In areas like Myeongdong, there are quite a few commercial areas, but not as many as you might think. Especially, there are none in the southwest or northeast. Therefore, there is another plan to increase commercial areas in the southwest and northeast regions. In other words, currently, there is a high possibility that general residential areas or industrial areas will be transformed into commercial areas. So, in the long run, it may not be a bad idea to invest in commercial real estate in these areas. So, now there are various plans, and one of them is here at Onsu Station. Those who take line 7 or line 1 might know Onsu Station. When you get off at Onsu Station, this is Seoul. Half of the Onsu Industrial Complex is in Seoul, and the rest will be in Bucheon. However, they are also planning some development in the industrial complex. Therefore, there are height restrictions at the moment, so because of these height restrictions.

In this low factory area, there are plans to relax height restrictions and densify office buildings. In other words, if the current regulations are eased, there are many development possibilities. The surrounding areas of this station are not very expensive, with old 30-square-meter apartments priced around 600 million won. Therefore, there is potential for development here, which could improve the surrounding conditions. Additionally, in the Geumcheon area, there is an air force base that has not been visible on Naver maps. There have been many attempts to develop this air force base in the past, but they have not been successful. However, there are plans to try developing it now.

So, a preliminary drawing has been released. They plan to concentrate military facilities in some buildings here, and the rest will be used for office buildings and residential complexes. It seems like this is the plan, but in reality, it needs to be well coordinated with the Ministry of National Defense. There must be reasons why public facilities haven't been established until now, so it might not be easy to proceed with these plans. Anyway, rather than the district office, if we were to do something at the city level, we might be able to make a big deal elsewhere. We need to keep an eye on this. For those of you who know, it's called Munrae-dong. Munrae-dong is somewhat like Seongsu-dong in the southwest region. There are quite a few people who have bought buildings in that area, and as it is an industrial zone, similar to the neglected industrial areas in Seongsu-dong, coffee shops and trendy places are starting to emerge, turning it into a hip hot spot.

It's like it has changed a bit, and this is what's happening in Yeongdeungpo. Although places like Yeongdeungpo Mullae-dong, where you can enjoy a cup of coffee, have become somewhat hip, many still view it as a quite underdeveloped area even now. So, even in Seoul, there are many places that are seen as quite underdeveloped, to the extent that people wonder if neighborhoods like this still exist. By increasing the floor area ratio of Yeongdeungpo Ghost Town to about 250% to 400%, even though this is a photo of Yeouido, if we raise the density to high levels and create the remaining space as green areas, we will try to increase the greenery ratio as much as possible within the city. However, these things are probably going to focus more on the areas near subway stations. Of course, there are many near subway stations, such as Line 9 passing through, Line 7 passing through, and Line 1 passing through a lot, and there's also Line 2, so there are golden lines.

You can think of it as a passing place, so here, focusing on the area near the station, we are planning to develop high-density buildings. By doing this, you can also enjoy a drive. Additionally, there are plans to create things like a venture startup cluster in front of Seoul National University. As mentioned earlier, Kimpo Airport will also be renamed Seoul Kimpo Airport. They plan to expand the routes and improve the infrastructure slightly. The schedule for this project is as follows: in 2024, the plan will be established, in 2025, the design will be carried out, and in 2026, the plan will be completed, followed by groundbreaking in 2027. Mayor Oh Se-hoon's term is until 2026, so the goal is to set up as much as possible by then, and then it will depend on who will be the next successor.

I'm not sure if I will be re-elected, but I will try to set things up as much as possible until the end of my term, and then start the construction. Anyway, if I have strong willpower, to some extent, deregulation is possible through market authority, so I think we need to keep an eye on it. Therefore, in addition to the development plans I mentioned earlier, there are also projects like green projects. For example, if you look in front of the Bongcheoncheon in Borla Park, there is a large road here, and there is a Lotte building here. Here, like Cheonggyecheon, there are also projects to restore and revitalize this area. By creating a somewhat hot place in this area, improving the overall residential environment, and making it a desirable place to live, we will make it accessible as a kind of third downtown area.

I'm trying to change it to my preferred area, so you can think of it as a plan to do now. Please do not misunderstand that it will be done right away in the short term. If you think like that, you might make a mistake. So, consider this as a long-term project, maybe about 10 years. If you have a lot of flexibility, you can think of it as burying it for about 10 years. If I don't have that much flexibility, then I think I can observe the development to some extent and when it's actually ready to start construction, I won't be too late to get in.

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Redevelopment Plans for Seoul's Southwest Area

The southwest area of Seoul is currently considered neglected and excluded, with lower property prices compared to other parts of the city.

Mayor Oh Se-hoon has announced a redevelopment plan, including a 400% increase in the floor area ratio, the expansion of green spaces, and the development of the Seoul Gimpo Airport area.

The plan is in line with the Seoul City Master Plan 2040, aiming to revitalize the area and create a vibrant belt with the city center and metropolitan centers.

The Transformation of Guro: From Rural Countryside to Industrial Complex

Guro Industrial Complex was the first export industrial complex in Korea, established in 1967 after the Korean War, attracting a large number of workers from various regions.

The rapid development and population growth of Seoul led to the transformation of rural areas like Guro into a large-scale industrial complex.

Seoul's expansion gradually turned countryside areas like Guro into significant industrial hubs, in contrast to their previous rural landscapes.

Transformation of the Guro Industrial Complex

The Guro Industrial Complex in Seoul has transformed from a manufacturing hub to a center for nurturing digital venture companies.

The complex has seen a decline in manufacturing and a rise in non-manufacturing companies, such as IT ventures and information communication companies, leading to significant changes in the area.

The transformation has made the complex an affordable and stable job opportunity hub, attracting many young people, and there are discussions about developing the area further to enhance Seoul's competitiveness.

Redevelopment Plans for the Seonam District and Onsu Station

The Seonam District, originally an industrial area, is now underdeveloped but has great transportation access to key areas in Seoul.

The Seoul Metropolitan Government is planning to inject energy into the area and the long-term investment potential looks promising, especially for commercial properties.

The redevelopment plans also include expanding the commercial areas in the southwest and northeast regions, with a focus on transforming general residential and industrial areas into commercial spaces.

Onsu Station, located in the Onsu Industrial Complex, is also targeted for development, despite current height restrictions.

Development Plans for Low Factory Areas and Air Force Bases in Seoul

Plans are in place to relax height restrictions and densify office buildings in the low factory areas of Munrae-dong, with potential for development due to the area's current affordability.

There are also efforts to develop the air force base in the Geumcheon area, with a preliminary plan to repurpose the space for military facilities, office buildings, and residential complexes.

The focus is on increasing the floor area ratio and greenery ratio near subway stations, particularly those along Line 9, Line 7, Line 1, and Line 2 in Seoul.

Seoul is planning to develop high-density buildings near the station and rebrand Kimpo Airport to Seoul Kimpo Airport.

The development project is scheduled to start in 2027, aiming to make the area a third downtown area.

The mayor's term until 2026 will be crucial in pushing the project forward, which also includes green initiatives and revitalization projects.