A controversial government proposal to build public housing inside Seoul’s historic Yongsan Park has triggered intense public backlash and caused South Korean President Lee Jae-myung’s approval ratings to plummet. The plan, which aims to address the country's long-standing real estate crisis, has instead alienated residents and sparked a fierce confrontation between the national government and Seoul’s municipal leadership.
The political fallout became clear in mid-August polling, which showed President Lee’s approval rating dropping below the 50 percent threshold for the first time since his term began. The survey identified the escalating housing crisis and ongoing prosecutorial reform as the primary drivers of the decline. Discontent is particularly severe among young Seoul residents, where Lee's performance rating has plunged to just 31 percent.
This political slide follows a series of unpopular real estate policies implemented by the Lee administration to cool down decades of frenetic property speculation. Two measures in particular have drawn widespread public anger. First, the administration reduced the loan-to-value ratio, shrinking the proportion of a mortgage that homebuyers can secure. This forced many prospective buyers to seek leases instead, driving up rental demand, premiums, and lease rents while creating a severe shortage of available lease properties. Second, the government proposed raising the cap on the real estate holding tax and increasing the market valuation rates used to assess property taxes. Together, these policies have frustrated both tenants and homeowners across the capital.
In an attempt to resolve the shortage, the government pledged to lay the groundwork for approximately 1.5 million new publicly funded apartments during Lee’s term. On August 13, President Lee exhorted his aides to "devote all available resources and capabilities to solving housing problems that threaten people’s livelihood and the state’s future." South Korea's real estate market has long been a major social hurdle, with high property prices acting as a key deterrent to marriage and a primary driver of the country’s declining birthrate.
However, the administration’s search for available land quickly generated controversy. In mid-August, the administration’s economic development guru suggested during a radio appearance that apartment complexes could be built within the children's garden section of Yongsan Park, stating, "Yongsan is so huge … There are places where I think we can build housing." Shortly after, the Ministry of Land, Infrastructure and Transport announced it would conduct a survey to identify potential housing sites within the park, focusing on areas previously razed by the military.
The proposal has met with immediate resistance due to the deep historical and symbolic importance of the 630-acre site. Yongsan Park, which is home to the National Museum of Korea—the world's third most visited museum annually—is highly valued by residents as a natural sanctuary from Seoul's urban noise. The land served as the Yongsan Garrison for decades, housing the United States 8th Army starting in 1953 and the United Nations Command, which relocated there from Tokyo in 1957. The base remained closed to the public until 1989, when South Korean President Roh Tae-woo and U.S. President George H. W. Bush toured the site by helicopter. The view reportedly prompted Bush to agree that "there shouldn’t be foreign troops in the middle of a state’s capital."
Although a relocation agreement was signed in 1990, it was not until 2004 that officials decided to transfer the Yongsan forces to Camp Humphreys, located an hour south of Seoul. To protect the vacated land, the Roh Moo-hyun administration passed the 2007 Special Act on the Creation of Yongsan Park, which legally bound the government to develop the returned territory "into a place for leisure and relaxation as well as a natural and ecological space," while strictly prohibiting non-park developments. The physical transfer of the land remains slow, with Washington handing over only about 30 percent of the site so far, while the remainder awaits negotiations over compensation, environmental inspections, and soil cleanup.
The historical weight of the land extends far back into Korea's past. The area was occupied by Mongol forces in the 13th century and quartered Chinese Qing Dynasty soldiers in the 17th century, during which five percent of the Korean population was trafficked. Imperial Japanese forces occupied the site during the first half of the 20th century to conscript and train Koreans for foreign wars, before the U.S. military took control of the base in 1945. Conversely, the area near the Han River and Namsan Mountain also served as Korea's historic gateway for trade, multiculturalism, and modern innovations like trams and steamboats.
Opponents argue that carving up the park for housing would destroy its ecological and historical value. Seoul Mayor Oh Se-hoon has openly challenged the national government's plan. In a video recorded at the park, Oh declared, "History won’t forgive me for allowing even a small portion of the park to be turned into apartment sites," adding, "We need to preserve Yongsan’s history and nature for the future generations."
Public sentiment strongly supports the mayor's position. A survey released on August 24 revealed that two out of three Seoul residents oppose the government's housing proposal. In response, the Seoul Metropolitan Government has initiated talks with national officials to present alternative urban planning solutions. Observers note that the public reaction mirrors a 2016 incident where the Park Geun-hye administration attempted to build museums in the park, only to back down after facing intense public outrage over pouring concrete on the historical site.
Critics suggest that instead of building high-rises in Yongsan Park, Seoul needs a comprehensive urban regeneration plan. This approach would integrate residential, commercial, and recreational spaces by incorporating run-down, low-density residential areas into large-scale, mixed-use developments, moving some commercial needs underground, and improving transportation infrastructure. In the meantime, critics argue the government should focus on expediting negotiations with Washington to secure the remaining land transfer promised more than three decades ago.
