Securing 600 Billion Won in Public Contributions Through the Advance Negotiation System
Expansion of Transportation, Green Spaces, and Start-up Infrastructure
The Sampyo Remicon site in Seongsu-dong, Seongdong District, Seoul, has completed demolition nearly 50 years after the plant was established and will be developed into a mixed-use district for work and residential purposes in the Seoul Forest area. The Seoul Metropolitan Government plans to invest approximately 600 billion won in public contributions, secured through the advance negotiation system, into expanding transportation, green spaces, and start-up infrastructure.
Oh Sehoon, Mayor of Seoul, visited the Sampyo Remicon site on Tuesday the 3rd and is receiving a briefing on the status of the project under preliminary negotiations. Provided by the Seoul Metropolitan Government.
On Tuesday the 3rd, Oh Sehoon, Mayor of Seoul, visited the Sampyo Remicon site located at 683 Seongsu-dong 1-ga in Seongdong District and stated, "Just like the Yongsan International Business District, this will become a space where global companies can move in and make it their home," expressing his vision to complete it as the "Silicon Valley of Korea."
The Seoul Metropolitan Government plans to finalize and announce on the 5th the "Detailed Development Plan for the Seoul Forest District Unit Planning Zone and the Sampyo Remicon Special Planning Zone." Once it is designated as a district unit planning zone, detailed standards for building use, height, and facility layout will be specified.
This decision and announcement are based on the development plan prepared through advance negotiations between the Seoul Metropolitan Government and the project operator following the demolition of the Sampyo Remicon plant in 2022. The site will be developed into a mixed-use complex with a maximum height of 79 stories, combining work, residential, commercial, and cultural functions. To strengthen the work function of the Seongsu area, the proportion of work facilities has been mandated at 35% or more, while the proportion of residential facilities is capped at 40%. Commercial and cultural facilities will also be created.
The Sampyo Remicon site has a land area of approximately 28,000 square meters. Sampyo Group began operating the ready-mix concrete plant in 1977 and has supplied ready-mix concrete to apartment complexes, bridges, and subway construction sites throughout Seoul. Relocation of the ready-mix concrete plant was decided in 2021, and demolition was completed in August 2022. Since then, while related administrative procedures were underway, the site has been used as a temporary space, including as a performance venue and a public parking lot.
The site was previously reviewed as a candidate location for Hyundai Motor Group's Global Business Center (GBC), but development was scrapped when a 35-story height limit was applied during the tenure of former Seoul Mayor Park Wonsoon. Hyundai Motor Group shifted its plan to the Korea Electric Power Corporation site in Gangnam District, Seoul, and afterward there was no significant progress for a long time in developing the Sampyo Remicon site either.
On this day, Mayor Oh emphasized the advance negotiation system as the key to the development of the Sampyo Remicon site. The advance negotiation system is a method whereby, when developing large idle sites or outdated facilities, the private sector proposes a development plan, and the Seoul Metropolitan Government determines the development scale and level of public contributions in advance through negotiations. The system was introduced in 2006 during Mayor Oh's first term. Mayor Oh said, "Instead of deciding whether to grant permits and approvals on a case-by-case complaint basis, this is a system that sets fair standards and negotiates openly," adding, "Among the policies I have created, this is the one I feel most proud of."
The scale of public contributions to be secured through the development of the Sampyo Remicon site is expected to reach approximately 600 billion won. These funds will be invested in projects such as building new ramps to improve traffic around the Seongsu Interchange and the northern end of Seongsu Bridge, creating a green axis linked with Seoul Forest, and establishing a start-up hub worth about 200 billion won. He explained, "When we allow sites like the Sampyo Remicon site, which were bound by the 35-story regulation, to be developed up to 79 stories, enormous development profits are generated, and instead of allowing the project operator to take all of them, the Seoul Metropolitan Government recoups up to 60% as public contributions and utilizes them in the form of cash or everyday infrastructure."
A representative case of a project completed through the advance negotiation system is the Yongsan Dragon City hotel. Recently, Hyundai Motor Group's GBC project has also concluded negotiations, and the development of the northern area of Seoul Station has begun construction after going through the advance negotiation system.
In closing, Mayor Oh said, "A portion of the public contributions secured through large-scale developments in Gangnam or Seocho can be used in those areas, and a portion can be received in cash and invested in other areas," adding, "It can also play an important role in narrowing the gap between Gangnam and Gangbuk."
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