Ulsan City to Promote Regional Win-Win Urban Renewal Project

Partial Revision of the '2030 Ulsan Urban and Residential Environment Maintenance Master Plan'

Maximum Floor Area Ratio for Redevelopment and Reconstruction Projects Eased by Up to 20%

In Ulsan, when local construction companies participate in urban redevelopment and reconstruction projects, the floor area ratio may be relaxed by up to 20%.

The Ulsan city government announced on the 8th that it had promulgated and implemented a partial amendment to the "2030 Ulsan Urban and Residential Environment Improvement Master Plan" containing these details on the 1st of this month.

The floor area ratio relaxation items for redevelopment and reconstruction projects cover a total of nine areas: provision of land for public facilities, securing public-use facilities, securing open spaces, remodeling structures, creating green buildings, revitalizing the local economy, preserving history and culture, safety and disaster management, and housing stability.

Among these, the local economy revitalization category is applied in the same way as the "Detailed Operational Standards for Local Construction Industry Revitalization Incentives" announced on January 11.

Previously, when carrying out redevelopment or reconstruction projects in the region, incentives for floor area ratio were granted by up to 7% each (maximum 14%) only if the participation rate of local companies in joint contracts was at least 30% and the subcontracting rate for local companies was at least 50%.

With this amendment, if the participation rate of local companies in joint contracts is at least 5% and the subcontracting rate for local companies is at least 17%, a minimum incentive of 1% each will be granted.

At the maximum incentive level, joint contracts will receive up to 5% if the local company participation rate is 30%, and subcontracts will receive up to 7% if the local company participation rate is 53%.

Additionally, the maximum incentives for electrical, fire safety, and information and communication construction are 3.8%, for design services 1.8%, for local materials 1.2%, and for local equipment and other items 0.6% each, raising the floor area ratio by up to 20% in total.

An official from Ulsan city said, "Due to reasons such as residents preferring first-tier companies to undertake construction alone rather than in joint contracts with local companies, the subcontracting participation rate of local companies has remained around 30%, making it difficult to receive incentives. With this amendment expanding incentives, participation of local construction companies in redevelopment and reconstruction projects is expected to increase, which will help revitalize the local construction economy."

There are currently a total of 26 redevelopment and reconstruction project sites underway in the Ulsan area.