Property-based redevelopment and gentrification: The case of Seoul, South Korea

What is it about?

The urban experiences of South Korea in times of its rapid urbanisation and economic growth show that wholesale redevelopment had been a dominant approach to urban renewal, leading to redevelopment-induced gentrification. This was led by a programme known as the Joint Redevelopment Programme, transforming urban space that was once dominated by informal settlements into high-rise commercial housing estates. This paper tries to explain how this approach was possible at city-wide scale in its capital city, Seoul. Through the examination of redevelopment processes in a case study neighbourhood, it puts forward three arguments. First, the development potential arising from the rent gap expansion through under-utilisation of dilapidated neighbourhoods provided material conditions for the sustained implementation of property-based redevelopment projects. Second, this paper critically examines the dynamics of socio-political relations among various property-based interests embedded in redevelopment neighbourhoods, and argues that external property-based interests have enabled the full exploitation of development opportunities at the expense of poor owner-occupiers and tenants. Third, South Korea had been noted for its strong developmental state with minimum attention to redistributive social policies. The Joint Redevelopment Programme in Seoul was effectively a market-oriented, profit-led renewal approach, in line with a national housing strategy that favoured increased housing production and home-ownership at the expense of local poor residents’ housing needs.

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Why is it important?

Applies the rent gap theory to the Korean case of new-build gentrification targeting a substandard settlement. Also highlights the struggles of local residents.