Ministry of Land and Seoul City Launch 'Semi-Industrial Area Circulation Maintenance Project'... Call for Pilot Project Sites on the 7th

Final Selection Target of 3-4 Locations by the End of March

[Asia Economy Reporter Yuri Kim] The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government will launch a public-private joint call for proposals for the circular maintenance project in semi-industrial areas starting from the 7th.

This call aims to identify pilot project sites for the public-private joint circular maintenance project in semi-industrial areas, which was announced in May last year as part of the "Measures to Strengthen the Housing Supply Base in the Metropolitan Area." The goal is to select about 3 to 4 candidate sites as announced in the "Plan to Expand Housing Supply in the Seoul Area" in August last year.

The public-private joint circular maintenance project in semi-industrial areas involves transforming aging factory sites within semi-industrial zones into spaces where industrial facilities and residential facilities coexist, under the participation of Korea Land and Housing Corporation (LH) and Seoul Housing and Communities Corporation (SH). This project aims to regenerate industrial functions and expand housing supply within the city. When LH and SH participate to secure public facilities such as public rental housing, various supports will be provided, including increasing the housing ratio on the site and project fund loans linked to urban regeneration (50% of the total amount, 1.8% annual interest, etc.).

In this regard, legal grounds to revitalize maintenance in semi-industrial areas are also being established, such as the amendment to the Seoul City Urban Planning Ordinance passed at the plenary session at the end of last year, which lowers the mandatory industrial facility ratio from 50% to 40% for development projects in semi-industrial areas involving public participation.

Some of the newly constructed industrial facilities will be used as alternative business facilities for surrounding factories wishing to undergo maintenance, thereby promoting the maintenance of semi-industrial areas.

The target sites for the call for pilot projects for circular maintenance in semi-industrial areas are factory sites of 3,000㎡ or more within Seoul (with a factory ratio of 50% or more on the site). Landowners wishing to participate in the project can submit their application forms to the Seoul Metropolitan Government by February 25 to join the call. LH and SH will preliminarily review whether the sites are suitable for project promotion, and the joint candidate selection committee of the Ministry of Land, Infrastructure and Transport and Seoul Metropolitan Government will comprehensively evaluate site suitability, facility aging, and project effectiveness to finalize the candidate sites by the end of March.

Once selected as candidate sites, LH, SH, and the landowners will discuss the implementation method and project plans and sign a memorandum of understanding to officially proceed with the project. To raise awareness of the project during the call period, the Ministry of Land, Infrastructure and Transport and Seoul Metropolitan Government will hold policy briefing sessions in January for Seoul district officials and landowners. For landowners who submit a preliminary intention to participate by the end of January, separate written Q&A sessions will be conducted to enhance understanding of the project and encourage participation.

The Ministry of Land, Infrastructure and Transport expects this call to serve as an opportunity to expand housing supply within Seoul by utilizing aging factory areas in the city center. The ministry plans to closely cooperate with the Seoul Metropolitan Government, LH, and SH to secure as many suitable candidate sites as possible for project promotion through this call. Seoul Metropolitan Government anticipates that this circular maintenance project in semi-industrial areas will provide a chance for aging factory areas to be reborn as complex industrial spaces where job-centered industries, residential, and cultural facilities coexist.

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