Seoul City Government Opposing Development of Pangyo

Seoul city government officially announced to oppose the government`s development plan of Pangyo new urban town. The Seoul city government`s stiff opposition is likely to generate a considerable controversy between the central government and the local government.

Seoul city government maintained that ``if the new city is to be established on the area only 4 km distant from the city boundary, Pangyo will be a bed town of Seoul at last. Because the commuting rate to Seoul is estimate to 70 percent (Ilsan 65 percent, Pundang 60 percent), the traffic congestion would be dreadful within the downtown of Seoul``.

In case that the central government will insist on the development of the new city, Seoul city government will take a hard-line approach to collect the traffic congestion fee.

Yesterday, the Seoul city government declared the resolution to oppose the development plan of Pangyo in the meeting, in which the members of the `urban policy committee` and the `consultative standing meeting for the city traffic policy` participated, and demanded the Ministry of Construction & Transportation (MCT) to review the whole plan to construct Pangyo new urban town.

The MCT decided to confirm the development plan of Pangyo new urban area through the consultation with the party government. The MCT told that ``even if Pangyo is not developed as new urban town, the buildings will be constructed and thus the population will increase since the regulation on the construction will be eased. Because the population increase is anticipated to be inevitable, the government will develop the new urban town in which the traffic measures will have to be certainly established``.

Choi Jae-Duk, the director of the Housing and Urban Affairs Bureau of the MCT, told that ``it is the realistic alternative to pursue the plan to build the new Pundang railway line, and to absorb the auto drivers as many as possible by extending the South and North sections of the existing Pundang railway line.

Meanwhile, Daishin Securities Co. evaluated yesterday that the MCT`s plan would contribute for the recovery of the domestic construction industry. It anticipated that ``the construction cost of the new town amounting to 8-9 trillion won will boost the construction industry, but its effect will be realized from 2003``.

Park Yun-Chul yc97@donga.com