Hanam City Introduces Pre-Negotiation System for Urban Planning Changes... "Public Return of Private Development Profits"

Hanam City, Gyeonggi Province (Mayor Lee Hyun-jae) announced that it will introduce the 'Urban Planning Change Pre-Negotiation System' to return private development profits generated from urban planning changes to the public.

A view of Hanam City Hall. Provided by Hanam City

According to Hanam City on the 22nd, the city established and announced the 'Hanam City Urban Planning Change Pre-Negotiation Operation Guidelines' to provide a basis for returning private benefits arising from changes in urban management plans to the public, thereby ensuring transparency in urban administration and securing insufficient infrastructure within the region.

The pre-negotiation system applies when regulations are relaxed in cases such as △ land use zones proposed by the private sector (establishment of district unit plans for areas of 5,000㎡ or more) △ decisions, changes, abolition, or complexification of urban planning facilities △ relaxation of permitted building uses within district unit zones (allowing building uses not permitted in the relevant land use zone) △ and when the mayor deems it necessary considering Hanam City's policy direction and development impact.

The amount of public contribution, including the recovery of profits generated from urban planning changes, is determined through negotiation within the range of the increase in land value appraised before and after the urban planning change.

The timing for fulfilling public contributions requires that for land, ownership must be transferred to Hanam City before completion, and for buildings and facilities, ownership must be transferred to Hanam City simultaneously with completion.

A Hanam City official stated, “Through flexible urban planning utilizing the pre-negotiation system, we aim to encourage creative development of idle spaces within the city, and the appropriately sized development profits returned as public contributions will be used for balanced regional development.”