Specialized Schools to Stabilize Real Estate Prices in Gangnam Area

The Ministry of Finance and Economy decided to push ahead with a plan to set up specialized high schools such as foreign language high schools and science high schools in areas other than Gangnam in order to stabilize real estate prices in the area.

The Ministry also plans to push up the designated year, 2007 for residence of the new city, Pankyo.

Vice Minister of Finance and Economy Kim Kwang-rim said at a radio program on May 28, “Educational conditions formed in the Gangnam area have become one of the main reasons for higher housing prices in the area. We are trying to build specialized high schools in other areas and are discussing the possibility with related ministries.”

The fact is that the survey on the price hike for Gangnam apartments conducted last year, right after the September 4th real estate price-stabilizing policy on 615 Gangnam residents was released, shows that 44.4 percent of respondents prefer the area due to better educational advantages.”

“We are having discussions with the Ministry of Construction and Transportation to accelerate the move-in time for Pankyo originally planned for 2007. The new city will serve as the second Gangnam,” Vice Minister Kim also said.

“Additional budgets will go into basic social facilities in Busan, Kwang-yang and Inchon International Airport, new computer labs at each school, as well as youth employment measures and venture and small business creators,” he said.

Meanwhile, the Kyunggi Province Education Office and the Ministry of Construction and Transportation have both expressed their reluctance concerning implementation of the two measures of building more specialized schools in non-Gangnam areas and creating the residence area in Pankyo. This is expected to face some difficulties in the coming months.

Director at Kyunggi Educational Office Lee Sung-hee said, “We are going to build a science high school in Yijeongbu and a foreign language high school in Suwon, Sungnam and Dongduchon, respectively. However, this has nothing to do with real estate price stabilization measures. We don`t have any intentions to set up specialized high schools for that purpose.”

A final decision whether to build a specialized high school will be made by each city and provincial education office.

An official at the Ministry of Construction and Transportation said that “unless the government gives up its absurd policy of “First transportation measures and then residents` acceptance, it would be impossible to move up the time for residence to 2006 under the current situation.”

Kwang-Hyun Kim kkh@donga.com