Seoul Lowers Public Contribution Requirements by 50%, Raises Residential Ratio to 90% as OECD Reports Affordability Crisis

According to Seoul Economic Daily, on July 4 Seoul lowered the public contribution rate by half and raised the residential ratio cap to a maximum of 90% for pre-negotiated development sites in northern and southwestern Seoul. This is expected to accelerate large-scale development of stalled vacant properties in underdeveloped areas that have faced decades of profitability challenges. The measure directly benefits the former National Institute of Health site in Eunpyeong District, valued at approximately 454.5 billion Korean won and spanning 48,000 square meters, which could accommodate at least 4,000 residential units.

Meanwhile, according to the OECD's 2026 Korea Economic Report, the proportion of housing affordable to Seoul's median-income households through mortgages collapsed from 32% in 2012 to 7% in 2025, a 25 percentage-point decline. The OECD attributed this to Seoul apartment prices nearly doubling between 2013 and 2026, far outpacing wage growth, combined with chronic housing supply shortages—the city supplied fewer than 94 units per 100 households in 2024.