Seocho Town Complex Development (Seocho District Office) Preliminary Feasibility Study Passed

· Ministry of Strategy and Finance Preliminary Feasibility Study Results? Financial Profitability Index (P/I) 1.03, Comprehensive Evaluation (AHP) 0.516
· Seoul's First Complex Development on Former District Office Site with Diverse Resident Convenience Facilities
· Nationwide First Selection of LH and SH as Joint Trustees, Promoting Consignment Development to Minimize District Budget

Bird's-eye View (Draft)

[Asia Economy Reporter Jong-il Park] Seocho-gu (Mayor Jo Eun-hee) announced that the '(tentative name) Seocho Town Complex Development Project' (hereinafter referred to as the 'Seocho Town Project') has finally passed the preliminary feasibility study conducted by the Ministry of Economy and Finance.

According to the preliminary feasibility study on the 'Seocho Town Project' conducted by the Korea Development Institute (KDI) since October last year, the financial feasibility (Profitability Index, P/I) was 1.03, and the comprehensive evaluation (AHP) was 0.516, exceeding the standard value of 0.5, indicating sufficient project feasibility.

The 'Seocho Town Project' involves an investment of approximately 523 billion KRW, developing a complex on the current government office site of 16,618㎡ with a total floor area of 198,700㎡, consisting of 34 floors above ground and 6 floors underground. It will include various resident convenience facilities and living SOC facilities along with a public office, creating an administrative and cultural hub to lead Seocho’s future for the next 100 years.

Since acquiring the Seocho-gu Office site, previously owned by Seoul City, in 2015, the district applied in December of the same year for the 'Public Building Renewal Leading Project' hosted by the Ministry of Land, Infrastructure and Transport, was selected as the first leading project site, and proceeded with a complex development project through a consignment development method to minimize the district’s financial burden while incorporating resident convenience facilities.

Subsequently, at the end of 2017, a self-feasibility study and a detailed safety diagnosis were conducted, and in December 2018, the selection of the entrusted institution was completed through a joint implementation by LH (Korea Land and Housing Corporation) and SH (Seoul Housing Corporation), the first nationwide case of such collaboration.

Going forward, the project plans to complete preliminary administrative procedures through the Ministry of the Interior and Safety’s central investment review and the Seocho-gu Council’s shared property management plan resolution in 2021. From 2022, the entrusted institutions (LH·SH) will carry out design and construction, aiming for completion and occupancy in 2026.

The Seocho Town Project will proceed as a complex development including public facilities, resident convenience facilities, and revenue-generating facilities through the consignment development method. This approach minimizes local government budget input while providing comfortable and high-quality public services.

Additionally, by repaying the project costs over 20 to 30 years with rental income generated from revenue facilities, the project aims to expand various resident convenience facilities and enhance residents’ quality of life without depleting the precious taxpayers’ money.

In particular, public facilities will be developed as diverse spaces covering all age groups, reflecting the majority opinions from the analysis of 437 resident-desired facilities derived from the 2019 neighborhood roundtable discussions. These include daycare centers, libraries, indoor sports facilities, complex cultural facilities, senior welfare facilities, startup support facilities, youth counseling facilities, and public housing facilities.

Sunken Plaza Development Example (Draft)

Moreover, Seocho Town, equipped with various living SOC facilities, along with the development of the metropolitan express railway GTX-C line and the expansion of the Wirye-Gwacheon metropolitan railway, is located around Yangjae Station, where active metropolitan connectivity is underway. This area is expected to rapidly emerge as an attractive hot spot.

Mayor Jo Eun-hee stated, “With the preliminary feasibility study passing for the Seocho Town Project, we have taken a step closer to establishing Seocho Town, which will lead the new future of public buildings. The consignment development of the district office complex, which covers project costs through rental income, is a frugal example of ‘mom administration’ that minimizes the district’s financial burden. We expect the area around Yangjae Station to become a new center in Seoul’s Gangnam area.”