Apartment for US Embassy employees on Yongsan

The government is planning to build long-term renting apartment for employees of the US Embassy near Capital Hotel at Itaewon, Seoul.

Korea National Housing Corporation announced on September 29 that, with the request from the Defense Ministry and Culture and Tourism Ministry, they would construct renting apartments for 120 households of employees of the American Embassy on the 13,891-pyong land in Yongsan owned by the Defense Ministry.

The Ministry of Defense is to lend the right of land use to KNHC, and KNHC will establish 2 apartment buildings, ranging from 30 to 80 pyong.

The US Embassy asked for the apartment to accommodate 152 households, but it was reduced after reviewing the business procedure. The cost is estimated to be around 37.544 billion won.

The rent for a 70 pyong-apartment is set at around 48 million won per year but the US is said to be demanding for 20 million won range.

The apartment construction plan came out as the 8th US Army`s helipad is to be moved to the US Embassy residential area within the Yongsan base, due to the reconstruction of the National Museum of Korea in Yongsan

The KNHC is anticipating for the construction to begin soon, considering the expected opening time (mid-2005) of the museum, for the construction would take about 2 years.

Related to the plan, Lee Sang-pil, an official of the National Museum of Korea construction promotion and planning team under the Culture Ministry who is in charge of negotiating with the US, said that they are ˝currently negotiating with the US on the apartment rent,˝ and that, ˝due to the big gap between the two parties, the worst scenario, in which apartment construction is given up and the helipad is moved to a third location, is being reviewed.˝

According to some analysis as to why the US is refusing to finalize the rent negotiations that began in March, the reason is because the US is trying to pressure the Korean government to certify the Embassy employee apartment construction plan in the official residential area of the Ambassador, on which Duksu Palace used to stand.

Since last year, the US Embassy has been promoting plans to construct 8-story employee apartment that holds 54 households and to newly establish a 15-story building on the site where Kyongki Girls` High School used to stand. However, due to the opposition of civic groups, the plans are currently suspended.

Jae-Seong Hwang Chang-Won Kim jsonhng@donga.com changkim@donga.com