Seoul to Ease FAR for Tourist Accommodation Facilities by Up to 1.3 Times... "Boosting Tourism Competitiveness" [Real Estate AtoZ]

Expanding Supply of Tourist Accommodation Facilities in Commercial Areas
Additional Incentives for Building Coverage Ratio and Height
Permanent Relaxation in 9 Districts, Three-Year Temporary Measures in 54 Districts

A Christmas installation is set up in front of a department store in Myeongdong, Jung-gu, Seoul. Photo by Yonhap News

The Seoul Metropolitan Government has decided to relax the floor area ratio (FAR) by up to 1.3 times in order to expand the supply of tourist accommodation facilities.

On December 14, the city announced that it had revised and approved the proposed amendment to the "Urban Management Plan Decision" to expand the supply of tourist accommodation facilities in commercial areas through the 6th Urban and Architecture Joint Committee's delegated subcommittee.

The core of this plan is to increase business viability by allowing the FAR for tourist accommodation facilities in commercial areas to be relaxed up to 1.3 times the statutory limit, while also providing additional incentives such as increased building coverage ratio and building height.

To benefit from this decision, facilities must meet the standards for a three-star or higher rating according to the hotel industry grading criteria, which include requirements for guest rooms and amenities. The degree of relaxation will be applied differently depending on the proportion of guest rooms. If it is difficult to secure an appropriate FAR due to height restrictions, the city will consider the surrounding conditions and may relax the building coverage ratio and maximum height accordingly.

In addition, the city plans to expand the scope of the policy to include not only tourist hotels but also various types of accommodation such as family hotels and hostels, thereby enhancing the usability of the system.

The tourist accommodation-specialized district unit plan will provide ongoing support for accommodation supply by permanently relaxing regulations in nine areas, including Myeongdong, Teheran-ro in Gangnam, and the Yeouido financial district. In 54 areas with active commercial districts, such as Sinchon, the FAR relaxation will be applied temporarily for three years to allow flexible response to changes in market demand.

The city will also streamline administrative procedures through this specialized plan. The city will handle the previously complex steps-such as district unit plan proposals, public review, interdepartmental consultations, and committee deliberations-in advance. Subsequently, only a preliminary consultation process will be required during the permitting stage. The city expects this will encourage private sector participation and enable a more rapid expansion of accommodation supply.

Cho Namjun, Director of the Seoul Urban Space Headquarters, stated, "The implementation of this policy is expected to not only accelerate the supply of accommodation facilities but also serve as an important turning point for the creation of high-quality lodging, further strengthening Seoul's tourism competitiveness."