23 Urban Regeneration New Deal Projects Including Seoul Seongbuk to Receive 1.2 Trillion Won Investment by 2024

[Asia Economy Reporter Yoo In-ho] A total of 23 locations, including Seongbuk in Seoul, Bupyeong in Incheon, Iksan in Jeonbuk, and Chilgok in Gyeongbuk, have been designated as new Urban Regeneration New Deal projects, with a total investment of 1.2 trillion KRW by 2024.

The government selected a total of 23 new Urban Regeneration New Deal project sites in the first round this year at the 23rd Urban Regeneration Special Committee meeting.

The 23 selected projects will receive a total investment of 1.2 trillion KRW by 2024, including 220 billion KRW in national funds (including other ministries' projects), 250 billion KRW in local government funds, 390 billion KRW in public enterprise investments, 50 billion KRW from the Housing and Urban Fund, and 250 billion KRW in private investment. Urban regeneration will be promoted over a total of 1.5 million square meters of declining areas.

A total of 3,000 housing units, including 1,820 public rental units, will be newly supplied. About 70 living SOC facilities such as care and cultural facilities, and 20 industrial and startup support facilities such as knowledge industry centers and public rental commercial spaces will be constructed, expected to contribute to revitalizing the declining areas.

The selected projects have sufficiently secured project sites in advance (an average of 84% for comprehensive manager projects and 100% for recognized projects) and have high plan completeness, so early project implementation is expected. In addition, to ensure environmentally friendly urban regeneration, all 23 projects apply zero-energy buildings and green remodeling.

Among them, eight locations including Seoul Seongbuk and Jeonbuk Iksan will adopt the comprehensive project manager method, led by public enterprises such as Korea Land and Housing Corporation (LH), linking urban regeneration hub projects with surrounding projects to enhance effectiveness.

The promotion of urban regeneration projects using the comprehensive project manager method has significantly increased public enterprise investment and housing supply. In addition to LH, four local public enterprises including Seoul Housing and Communities Corporation (SH), Gyeonggi Urban Innovation Corporation, Chungbuk Development Corporation, and Gyeongbuk Development Corporation will participate.

Public enterprise investment increased from an average of 6.81 billion KRW in projects selected from 2017 to 2019 to 48.05 billion KRW in 2020 projects. Housing supply also increased from an average of 44.3 units in projects selected from 2017 to 2019 to 370.9 units in 2020 projects.

These projects will renovate declining old downtown areas around station zones and public offices into complex hub facilities, and in connection with this, promote commercial district revitalization and residential area maintenance such as rental housing supply.

In the case of the Seoul Seongbuk project, SH acts as the implementer to create spaces for a step-by-step startup ecosystem for win-win growth among youth, universities, and the local community, and improve residential conditions to create future value.

A total of 15 locations, including Bupyeong in Incheon and Geumsan in Chungnam, were selected for the recognized project method, which quickly spreads urban regeneration effects through small-scale point projects utilizing idle assets within the region to solve urban problems.

Through these projects, various materials such as dangerous buildings that impair urban aesthetics and threaten residents' safety (3 locations including Bupyeong, Incheon), abandoned buildings (2 locations including Geumsan, Chungnam), old and unused public facilities (4 locations including Chungju, Chungbuk), and idle sites (6 locations including Yeongdong, Chungbuk) will be utilized to supply living SOC.

The government plans to select additional urban regeneration projects twice more in October and December following this first round of selection.

Baek Won-guk, head of the Urban Regeneration Project Planning Group at the Ministry of Land, Infrastructure and Transport, said, “Since the newly selected projects have improved plan completeness through prior consulting, they are expected to get on track early,” and added, “We will work closely with local governments to ensure that residents can quickly feel the benefits of urban regeneration.”

This content was produced with the assistance of AI translation services.