LH Begins Urban Public Housing Complex Project Near Station in Dobong-gu, Seoul

Dobong-gu Ssangmun Station East and West sides, 3 locations near Banghak Station, resident consent completed for designation proposal
First among 20 Seoul transit-oriented development candidate sites to request project promotion to LH

On the 9th, LH submitted resident consent forms at Dobong-gu Office for the designation proposal of the 'Transit-Oriented Urban Public Housing Complex Project' districts in three areas within Dobong-gu.

[Asia Economy Reporter Jo Gang-wook] Korea Land and Housing Corporation (LH) is set to commence the transit station area urban public housing complex project in Dobong-gu, Seoul.

On the 10th, LH announced that it has received resident consent documents for the designation of districts under the ‘Transit Station Area Urban Public Housing Complex Project’ for three zones within Dobong-gu.

The three candidate sites in Dobong-gu are the east side of Ssangmun Station, the west side of Ssangmun Station, and the vicinity of Banghak Station. Through a local government proposal process, these sites were selected on March 31 as the first pilot project candidates for the core ‘Urban Public Housing Complex Project (Transit Station Area)’ under the 2.4 Plan. Subsequently, to propose district designation, landowners in the respective areas collected consent forms, and as of the 8th, they secured 70% resident consent on the east side of Ssangmun Station, 58% on the west side of Ssangmun Station, and 55% near Banghak Station. Among the 20 candidate sites for Seoul’s transit station area pilot projects, these were the first to request LH to proceed with the project.

The government selected a total of 23 candidate sites for transit station area pilot projects, including 20 in Seoul and 3 in Incheon. For projects commencing this year (district designation), a 30 percentage point higher profit rate compared to private redevelopment projects is guaranteed, along with promises of expedited project implementation through urban and architectural regulation relaxations.

The ‘Urban Public Housing Complex Project’ is a project where public entities such as LH promote development in aging areas that are difficult to develop through private projects, supplying new housing and restructuring urban functions. District designation is possible in transit station areas, semi-industrial zones, and low-rise residential areas. Among these, the ‘transit station area project’ allows for a floor area ratio relaxation up to 700% for areas of 5,000㎡ or more within a 350m radius of a transit station, enabling high-density mixed-use development including residential, commercial, and office facilities.

After proposals from landowners, private companies, and local governments, district designation proposals are made if more than 10% of landowners consent. Following the announcement of the planned district designation, if two-thirds or more of landowners (covering half the area) agree, the district is officially designated. After designation, the project proceeds in the order of approval of the complex project plan, commencement of construction, housing supply (including priority supply to landowners and general supply), and occupancy.

When promoting transit station area projects, various incentives are available, including △introduction of an integrated review committee and shortening the project period to within five years under public leadership △guaranteeing an additional 10 to 30 percentage points of profit to landowners compared to previous self-led project methods △granting authority to select contractors such as private brands △deferral of capital gains tax upon in-kind prepayment △relaxation of building regulations.

Lee Dong-jin, Mayor of Dobong-gu, requested, "Since the three candidate sites in Dobong-gu reflect the strong desire of residents for the prompt implementation of the transit station area project, we ask LH to actively strive for a project that improves the living conditions of Dobong-gu residents."

Park Cheol-heung, Head of LH Headquarters, said, "As the first case of a public-led transit station area complex development project, we will make every effort to reflect residents’ opinions as much as possible throughout the project, including the selection of contractors and appraisers, and to secure the highest quality along with the incentives guaranteed by the government."