‘The Old Mi World...’ Taking Steps to Convert into a Residential Accommodation Facility for Emergency Use

- Will the 'Old Miworld Site' Leap to a Six-Star Hotel-Standard Residential Accommodation?
- Project Operation Announced to Comply with the Enforcement Decree of the Building Act, Raising Expectations for Revitalizing Busan's Regional Economy

The long-awaited development project of the former ‘Mi World’ site in Suyeong-gu, Busan, is undergoing architectural review again to be transformed into a residential-type lodging facility.

‘Mi World’ in Millak-dong, Suyeong-gu, Busan, has been left abandoned as ruins for 10 years since its closure in 2013, causing frustration among Busan citizens. There was strong criticism in the area for leaving a prime tourist location with views of Gwangandaegyo Bridge unused for so long. Expectations for the restoration of its tourism function arose when the project operator TI Busan PFV (hereafter TI Busan) purchased the site in 2019.

TI Busan announced plans to revitalize tourism by transforming the site into a tranquil resort space blended with upscale lodging facilities, considering that the former Mi World had many complaints due to noise from amusement facilities. Accordingly, they initially submitted a construction plan including three residential-type lodging buildings, but after addressing complaints from nearby residents about obstructed views, they decided to remove one building closest to the apartment complex. Additionally, the setback distance requested by the apartment side was increased by 27 meters from the original plan.

Despite these adjustments, Busan City held an architectural committee meeting in November last year and approved the plan on the condition that general lodging facilities be constructed. The city’s position is that residential-type lodging facilities allow cooking facilities under the Public Health Control Act, so they want to exclude the possibility of the building being used as a residence.

However, the project operator explains that this decision reflects a misunderstanding of the law. The Enforcement Decree of the Building Act was revised in 2021, stipulating that residential-type lodging facilities cannot be used for residential purposes. New residential-type lodging facilities must be registered as lodging businesses, and if pre-sold residential-type lodging units are used as housing, a compliance penalty under the Building Act is imposed. To avoid this penalty, the use must be changed to officetel or housing.

A TI Busan official stated, “We are following the proper procedures to obtain approval for the residential-type lodging facility on the former Mi World site,” emphasizing, “Since the Enforcement Decree regarding lodging facilities has been improved, the possibility of the project site being misused as an illegal residential area is zero.”

In fact, ‘LCT,’ a representative residential-type lodging facility in Busan that entered a legal gap period, is subject to compliance penalties due to the Enforcement Decree revision. It is known that if lodging business registration is not completed by November this year, when the decree is fully enforced, a compliance penalty of at least 10 million KRW will be imposed.

The TI Busan official added, “We will revise the construction plan once again to better suit the convenience of nearby residents and further expand public benefits,” and said, “We plan to accept additional proposals such as apartment painting, renovation of the main and rear gates, and community facility construction.” They also stated, “By attracting upscale residential-type lodging facilities, we will revitalize tourism in the Suyeong-gu area and contribute to the local economy.”

In fact, TI Busan plans to apply a 6-star internationally renowned hotel brand to the project site. Their strategy is to attract domestic and international tourists to Busan by building luxury hotels and resorts, following the global trend of creating tourism booms.

Additionally, the rooms will be designed with 2-3 room types optimized for family vacations, and facilities for family tourists such as a kids’ library and kids’ caf? will be established. Furthermore, they expressed their ambition to actively introduce facilities that enhance convenience for long-term guests, securing a favorable position for Busan in attracting expos and gaining a reputation befitting an international city.