A view of an apartment in Seoul from the Namsan Observatory in Seoul, South Korea. (Image courtesy of Yonhap)
SEJONG, Dec. 21 (Korea Bizwire) – A recent study has revealed a significant degree of residential segregation in Seoul, characterized by distinct divisions between high-priced and low-priced housing areas.
The Korea Research Institute for Human Settlements released these findings in its report titled ‘Residential Segregation by Housing Prices and Policy Implications,’ which utilized publicly announced housing price data from major cities such as Seoul, Busan, Daegu, Incheon, and Daejeon.
The study measured the level of residential segregation using the spatial Gini coefficient, a statistical measure often employed to assess inequality. Among the five cities analyzed, Seoul registered the highest coefficient at 0.38, followed by Incheon (0.34), Daejeon (0.33), Busan (0.32), and Daegu (0.30).
In the context of income inequality, a Gini coefficient above 0.4 is generally considered to indicate severe inequality, while a range between 0.3 and 0.4 suggests the presence of inequality.
Researchers noted that from 2016 to 2021, the spatial Gini coefficient increased across all five cities, with Seoul approaching a critical level of residential segregation. The study highlighted that residential segregation based on housing prices leads to disparities in the quality of living environments, contingent upon an individual’s capacity to purchase housing.
A recent study has revealed a significant degree of residential segregation in Seoul, characterized by distinct divisions between high-priced and low-priced housing areas. (Image courtesy of the Korea Research Institute for Human Settlements)
To address the issue of residential segregation, the research team suggested that the government and local authorities should support the construction of large-scale new apartment complexes in low-priced housing areas through redevelopment and reconstruction.
The creation of new apartment complexes is expected to attract younger populations and stimulate the entry of shopping and convenience facilities, thereby improving the living environment.
Additionally, the study recommended indirect measures such as the construction of light rail transit to improve regional environments and encourage private sector involvement in redevelopment and reconstruction.
The researchers emphasized the need to implement housing welfare policies in tandem with redevelopment and reconstruction. These policies should focus on providing affordable housing and public rental housing for low-income tenants and include housing allowances.
M. H. Lee (mhlee@koreabizwire.com)
