Ministry of Land, Infrastructure and Transport Selects 8 Candidate Sites Including Heukseok 2
LH to Fully Support for Project Success
Eight redevelopment areas, including Heukseok 2 District in Dongjak-gu, Seoul, have been selected as pilot sites for public redevelopment projects. The pilot sites are Heukseok 2 in Dongjak-gu, Yangpyeong 13 and 14 in Yeongdeungpo-gu, Yongdu 1-6 and Sinseol 1 in Dongdaemun-gu, Bongcheon 13 in Gwanak-gu, Sinmunno 2-12 in Jongno-gu, and Gangbuk 5 in Gangbuk-gu. Photo on the 15th shows Heukseok 2 District in Dongjak-gu. Photo by Moon Honam munonam@
[Asia Economy Reporter Moon Jiwon] Korea Land and Housing Corporation (LH) announced on the 18th that it plans to designate the public redevelopment pilot project sites recently announced by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government as 'public redevelopment maintenance districts' by the end of the year.
The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government selected and announced 8 sites as pilot project candidates out of 70 sites that participated in the public redevelopment candidate site contest on the 15th.
The pilot project sites are Heukseok 2 in Dongjak-gu, Yangpyeong 13 and 14 in Yeongdeungpo-gu, Yongdu 1-6 and Sinseol 1 in Dongdaemun-gu, Bongcheon 13 in Gwanak-gu, Sinmunno 2-12 in Jongno-gu, and Gangbuk 5 in Gangbuk-gu, Seoul. All are existing maintenance districts located in station areas, where projects have stagnated due to lack of profitability and severe conflicts among residents after designation as maintenance districts.
Public redevelopment is an alternative project that supports stable promotion by involving public developers such as LH in redevelopment projects that have been stagnant for a long time, promoting improvement of residential environments and housing supply.
LH plans to actively support the successful promotion of projects in the areas selected this time.
In the designated project areas, various regulations will be eased, such as increasing the floor area ratio up to 120% of the legal limit. Also, the price ceiling system will not be applied to enhance profitability, and public support such as project cost loans and simplification of permit procedures will be provided.
Even with the participation of public developers like LH, residents can select their preferred construction companies. Experts in each field will support the entire project process including design, approval, and construction, and stability can be enhanced through fund management and purchase commitments secured by public credit.
In return, half of the newly constructed housing units, excluding those allocated to union members, will be supplied for public rental housing, profit-sharing jeonse (long-term lease), and other forms to ensure housing stability for original residents and vulnerable groups.
LH will also prepare customized supply methods such as equity-type housing and various relocation measures to help original residents resettle.
The 8 sites selected as candidates this time will be confirmed as public redevelopment maintenance districts by the end of this year at the earliest, following the establishment of maintenance plans by the Seoul Metropolitan Government.
Kim Baek-yong, head of LH's Urban Regeneration Headquarters, said, "We will do our best to promote the expansion of public redevelopment in the future through the successful execution of this pilot project and contribute to increasing housing supply in urban areas."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
