Busan Construction Companies' Subcontracting Benefits Increased Up to 15%

Busan City Implements Revised 'Urban Maintenance Master Plan' for the New Year

Busan City will implement a groundbreaking urban renewal plan starting in the new year that raises subcontracting incentives for local construction companies to a maximum of 15%, more than double the previous rate.

Busan City announced that it has prepared and will enforce from the 1st the revised “2030 Busan Metropolitan City Urban and Residential Environment Renewal Basic Plan,” which sets a new direction for urban and residential environment renewal projects.

The revised “Basic Renewal Plan” is a comprehensive plan for the maintenance, preservation, and management of residential areas that aligns with the policy direction of the 8th elected administration by reviewing the validity of the previously established basic renewal plan under Article 4 of the Urban and Residential Environment Renewal Act and reflecting changes in related laws and social conditions.

Since initiating a service project for the basic renewal plan in July 2023, Busan City prepared the plan through expert consultations and interim reports. After completing administrative procedures and the review by the Urban Planning Committee, the revised “2030 Busan Metropolitan City Urban and Residential Environment Renewal Basic Plan” was finalized.

This plan adopts the vision of “A livable city, Busan, created together by citizens and the public,” with policy goals including the realization of a “15-minute city,” balanced urban development, and enhancement of urban competitiveness. To achieve this, it focuses on ▲ revitalizing the local economy ▲ promoting design innovation ▲ adjusting density plans ▲ and encouraging the supply of diverse living social overhead capital (SOC) facilities.

Key elements of the plan include expanding subcontracting incentives for local construction companies from the existing 6% to up to 15%, more than doubling the previous rate, to encourage participation by local construction firms and prevent capital outflow, thereby invigorating the local economy.

Additionally, considering balanced urban development and design innovation, the plan adjusts density by raising the standard floor area ratio to a maximum of 220% and 230% respectively for landscape and residential management zones during design innovation, and allows up to 250% and 270% respectively for residential renewal zones and development inducement zones with favorable local conditions.

The living area plan is also improved by expanding the scope of infrastructure centered on roads and parks to include cultural and sports facilities, and by creating green streets and living area connecting streets to enhance the pedestrian-friendly urban environment.

Ha Sung-tae, Director of the Housing and Architecture Bureau, stated, “By specifying the basic direction of renewal projects, we expect to contribute to revitalizing the local construction industry and improving residents’ living environments.” He added, “In particular, to realize the ‘15-minute city,’ we plan to strengthen the expansion of living SOC and the creation of pedestrian-friendly street environments, and enhance urban competitiveness through architectural design innovation.”