Busan UN Park Area's 'Last Puzzle' Daeyeon 8 District, Union Established After 12 Years

Escaping the Sunset Clause of the Maintenance Zone Regulation

[Asia Economy Reporter Choi Dong-hyun] Daeyeon 8 District, the final piece of the redevelopment project encompassing 16,000 households around the UN Memorial Park in Nam-gu, Busan, has succeeded in establishing a union 12 years after being designated as a maintenance district.

According to the industry on the 13th, the Nam-gu Office of Busan recently approved the union establishment authorization plan submitted by the Daeyeon 8 District Redevelopment Union Establishment Promotion Committee. It has been 12 years since it was designated as a maintenance district in 2008. With this approval, it has also been exempted from the maintenance district sunset clause. A representative of the Daeyeon 8 District Promotion Committee said, "It feels like our long efforts have borne fruit," adding, "We plan to select a construction company this year and obtain project implementation approval around next year."

Daeyeon 8 District is a single-family housing dense area in Daeyeon-dong, Nam-gu, Busan, where 13 public institutions including the Korea Housing Finance Corporation relocated to Busan are located. Daeyeon-dong was divided into eight districts early on for redevelopment. The total construction scale reaches about 16,000 households. So far, five projects have been completed, and three are underway. Districts 3 and 4 are currently undergoing relocation and demolition, but only Daeyeon 8 District had been stagnant without even establishing a union. The promotion committee was first established in 2006, and the construction company was selected that year, so the start was smooth, but the project was once canceled due to conflicts with commercial property owners opposing the development. Since the project resumed in 2015, the speed of the project has accelerated due to issues such as the sunset clause.

The Daeyeon 8 District union plans to build 33 buildings of 35 floors with 3,540 apartment units. The union member sale price is expected to be set at about 323 million KRW based on 84㎡ (exclusive area). A representative of A Real Estate in Daeyeon-dong explained, "Although it varies depending on location and site conditions, for single-family houses, a premium of about 100 to 150 million KRW was already added from the promotion committee establishment stage," adding, "The price will rise further with union approval." In the nearby Daeyeon 3 District, the premium for an 84㎡ union member occupancy right is currently about 300 million KRW.

Currently, many large construction companies are showing interest in winning the Daeyeon 8 District project. It has been identified that Daelim Industrial, HDC Hyundai Development Company, GS Construction, and Samsung C&T, which has entered the maintenance project bidding competition for the first time in five years, are also eyeing the project.