Foreign Ministry Acknowledges Support for China’s Sensitive Land Purchase in Central Seoul
The Korean Foreign Ministry has confirmed its role in facilitating the Chinese government’s acquisition of land in a highly sensitive area of Seoul’s Itaewon district. This revelation comes on the heels of reports detailing China’s purchase of 11 plots totaling 4,162 square meters (about 44,799 square feet) for approximately 29.92 billion won (or $21.4 million).
Initial Findings: The Land Acquisition
The transaction, revealed by a local newspaper, indicates that the buyer is officially recorded as the "People’s Republic of China." This acquisition has sparked a flurry of questions regarding foreign governments’ rights to purchase land near significant security zones.
Ministry’s Clarification on Legal Procedures
A ministry official addressed queries, confirming that foreign diplomatic missions are not legally required to obtain prior approval from the Korean government for land purchases. “There is no legal requirement for such notifications,” the official stated.
Moreover, the ministry facilitated administrative procedures tied to acquisition tax exemptions in accordance with the Vienna Convention. This provision grants diplomatic missions tax relief on property transactions as part of their privileges.
Diplomatic Privileges Under the Vienna Convention
According to the Vienna Convention on Diplomatic Relations, diplomatic missions are exempt from many property-related taxes, provided the properties are utilized for official purposes. The implications of this exemption undergird the complexities surrounding the China-Korea land transaction.
Location and Strategic Implications of the Purchase
The newly acquired land is perched on the southern slope of Namsan Mountain, nestled between Noksapyeong-daero and the Namsan No. 2 and 3 tunnels. Previously, this location served as an outdoor golf driving range for nearly five decades before its closure following the sale.
Proximity to Key Government Facilities
The site lies a mere 1 to 1.5 kilometers from critical government installations, such as:
- The Yongsan presidential office
- The Hannam-dong presidential residence
- Camp Coiner, formerly part of the U.S. Army’s Yongsan Garrison and designated for the upcoming U.S. Embassy complex
This close proximity has raised significant concerns regarding national security and foreign influence in critical areas.
No Plans Disclosed by Chinese Embassy
The Chinese Embassy in Seoul described the land as intended for official use, although specifics remain undisclosed due to internal policy. Queries submitted by the Korea JoongAng Daily went unanswered, leaving many to speculate on the future development of this prime real estate.
Since the purchase, the embassy has yet to utilize the property, attributing the hold-up to the COVID-19 pandemic.
Market Value Surge
As of January 1, the government-assessed value of the land hovered around 32 billion won. However, local media suggests that the market value has tripled, now exceeding 100 billion won based on evaluations of neighboring properties.
Should the embassy elect to develop new facilities on this land, it will be mandated to consult with the Korean government for approval of the intended use and purpose for any new structures.
Foreign and Domestic Land Ownership
While Korea allows foreign entities to purchase land with relative ease, Korean citizens face stricter regulations when eyeing property abroad. For instance, in China, foreign nationals must reside in the country for at least one year to buy residential property, which typically results in long-term lease rights rather than full ownership.
As of 2022, Chinese nationals owned approximately 20.66 square kilometers of land in South Korea, a figure that continues to grow. In 2024, they constituted 64.9% of all foreign buyers in Korea’s real estate market, highlighting an escalating trend in foreign investment in the country.
Conclusion
This transaction not only underscores the complexities of international diplomacy and land ownership but also reflects the delicate balance of security and foreign influence. As the situation evolves, it will undoubtedly remain a focal point in discussions surrounding foreign relations and property rights in Korea.
For further insights into international property laws and their implications, you might explore resources from the Vienna Convention and related international law frameworks.
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