Gwangju Jeonbang and Ilbang Site Complex Shopping Mall Development Procedures Kick Off

Discussion on Urban Planning Change Completed with Humans Holdings 1st PFV Co., Ltd.

Public Contribution Confirmed at 589.9 Billion KRW; Zoning Changed from General Industrial to General Commercial Area

Attracting Luxury Hotels... Preservati

Negotiations for the redevelopment of the former Jeonbang and Ilsin Textile sites into a complex shopping mall and other facilities in the Gwangju area have been finalized, and the development process will now proceed in earnest.

The Gwangju Metropolitan City (Mayor Kang Ki-jung) announced on the 28th that it has completed preliminary urban planning change negotiations with Humans Holdings 1st PFV Co., Ltd. (hereinafter referred to as the developer) regarding the former Jeonbang and Ilsin Textile sites.

The former Jeonbang and Ilsin Textile sites cover an area of 296,000㎡ in a general industrial zone. After Jeonbang Co., Ltd. and Ilsin Textile Co., Ltd. relocated to the Pyeongdong Industrial Complex in 2020, the land remained idle.

Through this negotiation, the developer will provide Gwangju City with 589.9 billion KRW as a public contribution in exchange for changing the land use from a general industrial zone to a general commercial zone and others.

Specifically, the current factory site will be changed to ▲strategic facilities such as a complex shopping mall, luxury hotel, and office facilities ▲business viability facilities such as commercial and residential complex facilities ▲infrastructure including a historical and cultural park (preserving factory buildings), schools, public land, and roads.

Gwangju City will secure 589.9 billion KRW, approximately 54.45% of the land value increase, through public contributions and use it for long-delayed urban planning facility installation projects and citizen-oriented projects.

So far, Gwangju City has conducted a series of negotiation procedures, including selecting the negotiation target site, holding 11 negotiation meetings with the developer, an international master plan design competition, land appraisal before and after the urban planning change, and consultation with the Urban Planning Committee.

The preliminary urban planning change negotiation is the second case since the Honam University Ssangchon Campus site in 2019.

The ‘Preliminary Urban Planning Change Negotiation System’ is a system where the public and private sectors jointly discuss and coordinate urban planning, architectural plans, and public contribution plans based on guidelines broadly proposed by the public. This aims to promote rational land use and secure the public nature of development plans.

Gwangju City plans to finalize the district unit plan reflecting the negotiation results by June next year, proceed with building permit procedures, and begin construction in the first half of 2025.

Kim Jong-ho, Director of the Urban Space Bureau, said, “Through this negotiation, we have secured public interests including attracting urban strategic facilities such as a complex shopping mall and luxury hotel, preserving modern industrial heritage, and rationally recovering planning gains. We will strive to ensure that subsequent administrative procedures proceed smoothly based on citizen convenience, transparency, and fairness.”