Compare 'Existing Reconstruction vs Public Direct Implementation'... Recruiting Consulting Complexes

Public Direct Implementation Redevelopment Project Announced in 2·4 Measures
Consulting to Promote Policy and Assist in Comparing Associations
Applications Open to Representatives Including Association Heads... Until Next Month

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government announced on the 22nd that they will conduct consulting for associations and others from the 23rd of this month until the 31st of next month to recruit complexes participating in the 'Public Direct Implementation Redevelopment Project' announced in the 2.4 measures.

The purpose of this consulting is to actively inform associations and others about the advantages of the Public Direct Implementation Redevelopment Project and to compare it with existing redevelopment projects.

The consulting will be conducted at the 'Public-led 3080+ Integrated Support Center (hereinafter referred to as the Integrated Support Center)' located in Yongsan-gu, Seoul, which opened on the 17th. In addition to Seoul, Integrated Support Centers will be opened in the metropolitan areas of Gyeonggi, Incheon, and other local major cities to provide preliminary consulting support.

The consulting targets existing redevelopment zones or planned redevelopment zones, and the chairman of the promotion committee or the head of the association representing the zone can apply. For early-stage projects where the representative is unclear before the formation of the promotion committee, a person who can represent the residents, such as the representative of the promotion committee preparation committee or the owners' council, can apply.

Through the consulting, the government will explain the structure and procedures of the Public Direct Implementation Redevelopment Project. If the applicant wishes, a comparison and analysis of the business feasibility and architectural plans between the Public Direct Implementation Redevelopment Project and public redevelopment or public reconstruction will be provided to help determine which method is most advantageous.

Considering the expected floor area ratio and height in the case of public direct implementation, support will be provided for establishing a rough project plan including complex layout and household composition, and architectural concepts can be reviewed in advance. The architectural concepts will sufficiently reflect the residents' demands.

Subsequently, the Integrated Support Center will sequentially respond to applicants with the consulting results from mid-April. Complexes participating in the consulting will propose changes to the redevelopment plan (or establishment of the redevelopment plan for planned zones) to the public implementer after obtaining consent from more than half of the residents based on the consulting results.

In this regard, local governments and public implementers plan to hold resident briefing sessions on the consulting results in the second quarter to secure resident consent for project promotion after the consulting is completed.

The public implementer receiving the proposal for redevelopment plan changes will prepare a detailed redevelopment plan reflecting location conditions and resident preferences. If more than two-thirds of the residents agree to the redevelopment plan, the local government, as the planning authority, will finalize the redevelopment plan proposed by the public implementer after review by the urban planning committee.

Earlier, on the 4th, the government announced a plan to increase urban housing supply by introducing the Public Direct Implementation Redevelopment Project method. In this method, public implementers such as the Korea Land and Housing Corporation (LH) become the implementers of redevelopment and reconstruction projects after obtaining resident consent and lead the project planning.

By promoting redevelopment projects through this method, administrative procedures can be simplified through integrated project plan reviews, reducing the period from redevelopment zone designation to relocation from the existing 13 years to within 5 years.

Additionally, public implementers guarantee a 10 to 30 percentage point higher rate of return compared to private redevelopment projects based on urban regulation relaxations such as a one-step increase in floor area ratio or a 120% increase of the legal maximum floor area ratio, and special exemptions from reconstruction charges.

Kim Younghan, Director of Housing Policy at the Ministry of Land, Infrastructure and Transport, said, "The Public Direct Implementation Redevelopment Project not only guarantees better returns compared to private redevelopment projects but is also advantageous for protecting owners' property rights considering public transparency and fairness compared to previous methods," adding, "We will support many residents to have a proper approach to the Public Direct Implementation Redevelopment Project through preliminary consulting."