Public Housing Project for Daejeon Station Shantytown to Break Ground Next Year

Public Housing Project Bird's-eye View of Daejeon Station Shantytown (Provided by LH)

[Asia Economy Reporter Lee Chun-hee] A public housing project to transform the aging downtown area around Daejeon Station in Dong-gu, Daejeon into a residential, commercial, and welfare town will break ground next year. On the site where the shantytown was completely demolished, 1,400 housing units including public rental housing and mixed-use office land will be developed, and the surrounding old downtown area will see environmental improvements through an urban regeneration New Deal project.

Korea Land and Housing Corporation (LH) announced on the 10th that it will actively promote the project following the official announcement of the urban regeneration activation plan for the 'Daejeon Station Shantytown Urban Regeneration Project' on January 8. By combining the public housing project with the urban regeneration New Deal project, the plan is to redevelop approximately 27,000㎡ near Daejeon Station to supply 1,400 housing units, supporting vulnerable residential groups and revitalizing the old downtown area.

This project is a follow-up measure to the 'Daejeon Station Shantytown Urban Regeneration Plan' jointly announced in April last year by the Ministry of Land, Infrastructure and Transport, Daejeon City, and Dong-gu, Daejeon. After public viewing by residents, consultations with related agencies, and disaster impact reviews, the area was designated as a public housing district in December last year. With the urban regeneration New Deal project now officially confirmed, all administrative procedures for project commencement have been completed.

This redevelopment project will incorporate not only the current 15,495㎡ shantytown area but also approximately 12,000㎡ of adjacent railway land, totaling about 27,000㎡. The public housing project will be jointly implemented by Dong-gu Office, LH, and Daejeon Urban Corporation as project operators.

The plan envisions a complex including residential units, commercial facilities, and officetels. It will supply 700 public rental housing units, including 250 permanent rental units for shantytown residents and 450 happy housing units for young adults starting their careers, as well as 700 sale housing units for building owners and residents within the district, totaling 1,400 housing units.

The 250 permanent rental housing units for shantytown residents will be approximately 16㎡ in size and offered at an affordable monthly rent of about 31,000 KRW. This capacity is sufficient to accommodate all current residents of the shantytown in the area. Additionally, within the housing complex where shantytown residents will be resettled, a living support center will operate to provide psychological counseling, vocational training, and self-sufficiency support to ensure successful resettlement. Care facilities such as 'Bethel House,' which has provided free meals and medical services to residents, will also be included.

Social welfare facilities and a public library, among other social overhead capital (SOC), will be established to enhance the welfare of local residents. To prevent gentrification and displacement of commercial tenants within the project site, LH will operate the LH Hope Shopping Center. This commercial building rents to youth and small business owners in LH rental housing at rents below 80% of the local market rate. More than 40 such units will be created in the Daejeon Station project.

Conceptual Diagram of Early Relocation and Virtuous Cycle for Public Housing Project to Improve Residential Environment and Urban Maintenance in Daejeon Station Shantytown (Provided by LH)

The Ministry of Land, Infrastructure and Transport plans to proceed with the project using a 'prior relocation and virtuous cycle' approach, sequentially providing housing supply. After securing relocation housing for existing residents by renting nearby accommodations, residents will move into permanent rental housing once construction is completed. Welfare services such as care and self-sufficiency support will continue until residents move into public rental housing.

In addition to the shantytown redevelopment, an urban regeneration New Deal project will be promoted to revitalize the old downtown area around Daejeon Station. Since the opening of the Gyeongbu Line in 1905 and the establishment of Daejeon Station, the old downtown area has developed continuously. However, with the development of new downtown areas such as Dunsan and Wolpyeong-dong in Seo-gu and the emergence of Doan New Town, commercial districts have declined, major public facilities have relocated, and the area has lost its central functions, becoming a densely populated area of aging low-rise residential buildings.

Accordingly, LH will participate as the overall project manager to promote the urban regeneration New Deal project until 2025. Key initiatives include the 'Economic Ecosystem Restoration Project' featuring the Local Business Platform (D-Bright), Harmony Green Center (D-Cube), and Regional Culture and Tourism Hub (D-Tower) to revitalize local commerce; the 'Social Safety Net Restoration Project' to support vulnerable residential groups; and the 'Residential Hub and Community Restoration Project' including temporary relocation measures.

Additionally, private investment attraction will be pursued through the development of mixed-use residential, commercial, and office facility sites, alongside Korea Railroad Corporation (KORAIL)'s railway industry complex cluster development project.

Public Housing Project Development Plan for Daejeon Station Shantytown (Provided by LH)

LH plans to start survey and design services in March, aiming for occupancy in 2025. Following this, a three-dimensional urban space master plan will be established, and architectural design competitions will be held. Construction of infrastructure and housing will commence in 2022.

An LH official stated, "We will work with local governments to discover additional projects to expand this 'warm redevelopment project' that improves residential environments through shantytown redevelopment and surrounding area regeneration, supporting the resettlement of shantytown residents, fulfilling our role as a public developer."