The Seoul Metropolitan government has embarked on the reviewing process of a long-awaited development project at the former site of United Nations Command in Yongsan district.

The Seoul Metropolitan government on Tuesday said it held a review meeting for an initial report on environmental impact study for the development project at the former site of United Nations Command in Yongsan district submitted by Yongsan Eleven, a special purpose company set up by the local developer Eleven Construction Co.

Yongsan Eleven revealed a plan to transform the wasteland into Korean-type Roppongi Hills, a mega-complex in Tokyo, Japan, incorporating offices, apartments, shops and restaurants. It aims to get approval for its final report by early next year to kick off the construction in March and complete it by December 2022, said an official at the city government.

The vacant area formerly used by the U.N. Command conquers a space of 51,762 square meters, seven-times larger than a soccer field, in Yongsan, central Seoul. Eleven Construction purchased the land from state-run Korea Land & Housing Corp. at 1.06 trillion won ($933 million) in June last year and established a special purpose company for its 2-trillion-won project.

The latest development may unsettle the housing market at a time when the overall housing market in the capital has calmed following a slew of strong government measures to crack down speculative housing purchases.

In August, the Seoul Metropolitan Government was forced to call off its ambitious plan to redesign Yongsan district after learning that the plan had hiked the property prices in the district by 100 million won ($88,121.25) on average in less than a month. This upset the central government’s year-long real estate measures to calm down the heat in the housing market and finally led the Seoul government to cancel the plan.

Following the latest regulations announced in September, the house trading has slowed down in Seoul, leading the apartment prices in some areas to retreat.

By Choi Jae-won and Lee Ha-yeon

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