Creating a Landmark with 'Upglettang'... Spotlight on 'Town Management'

Local Governments and Public Institutions Focus on New Urban Regeneration Concept 'Town Management'
Upgrading from Real Estate to Residents' Quality of Life to Create Regional Landmarks

[Asia Economy Reporter Kangwook Cho] What do Tokyo’s ‘Roppongi Hills’ and New York’s ‘Times Square’ have in common? They are representative examples of town management where the building itself becomes a symbol of the city by adding residential facilities to various cultural infrastructures such as commercial facilities, cultural facilities, hotels, and parks.

Recently, town management has been gaining attention in the real estate market. Also called ‘Upglettang’ (meaning ‘upgraded land’), town management is already an active urban policy mainly in developed countries overseas.

According to industry sources on the 21st, not only in developed countries but also domestically, mixed-use commercial facilities that have emerged as regional landmarks through town management are attracting attention.

It is an urban regeneration development method that revitalizes old and lifeless old downtown areas through private-led or joint ventures between local governments and public institutions, characterized by branding the entire area as a landmark that people ‘must visit.’

Domestic First Successful Town Management Case: ‘Alleyway Gwanggyo’

‘Alleyway Gwanggyo,’ a mixed cultural space developed by lifestyle developer ‘NeoValue,’ has become a local lifestyle landmark representing the region and is regarded as the first successful case of private-led town management.

Opened in May 2019, ‘Alleyway Gwanggyo’ was born with the concept of ‘Our Neighborhood Cultural Alley,’ aiming to provide shopping, entertainment, culture, relaxation, and popular restaurants?content needed by local residents?as a lifestyle village. NeoValue, unusually in the industry, owns the entire commercial facility of Alleyway Gwanggyo and introduced an integrated operation management model. As a result, within one year of opening, Alleyway Gwanggyo became a landmark in Gwanggyo visited not only by local residents but also tourists.

Aerial view of 'Alleyway Gwanggyo' in Gwanggyo New Town.

Alleyway Gwanggyo is composed of four specialized zones tailored to the characteristics of the region: ‘Around Life,’ proposing new lifestyles and tastes locally; ‘Allykids,’ a kids’ specialty building offering happy experiences for the whole family; and ‘Masle Market,’ a local market with a healthy culture. Instead of common franchise stores, tenants include NeoValue’s own direct-operated brands such as ‘Mildo,’ ‘Dusugobang,’ and ‘Stroll,’ as well as trendy F&B stores popular in Seoul and the metropolitan area. The building, designed low and wide with an open view overlooking Gwanggyo Lake Park and narrow streets where neighbors can meet, evokes the charm of alleys rarely experienced in urban areas. In the central lawn plaza, the world-renowned artist Janet Echelman’s ‘Earthtime Korea’ is installed, and various cultural contents such as busking performances and flea markets are provided, serving as a resting place for residents and a role for the local community.

'Alleyway Incheon' opened in Dohwa District, Incheon.

Based on the operational know-how from Alleyway Gwanggyo, NeoValue launched ‘Alleyway Incheon’ in the old downtown area of Dohwa, Incheon, last April. With the concept of ‘Civic Pride Town,’ it plans to provide shopping, entertainment, culture, relaxation, and popular restaurants to the old downtown area of Dohwa, which lacks convenience facilities, and develop it into a beloved landmark for Incheon residents.

Furthermore, NeoValue plans to expand its business areas to Seoul districts such as Seongsu-dong, Seogyo-dong, and Ikseon-dong, transforming neighborhoods by preserving their unique characteristics through town management. To this end, it established a separate real estate asset management company, ‘NeoValue Partner Asset Management,’ and raised a blind fund worth 35 billion KRW in March. NeoValue and NeoValue Partner Asset Management intend to focus on investing in development projects in regional hubs where asset values are expected to continuously rise, aiming to create new added value.

Successful Transformation of an Abandoned Factory into a Landmark through Public-Private Partnership: Busan’s Mixed Cultural Space ‘F1963’

‘F1963,’ a mixed cultural space that has emerged as a hot place in Busan, is regarded as a successful case of urban regeneration. Originally built as a wire rope factory for Korea Steel, it was reborn as a mixed cultural space in 2016 with support from the Ministry of Culture, Sports and Tourism’s ‘Industrial Complex and Abandoned Industrial Facilities Cultural Regeneration Project.’

Although 22 spaces were reborn with support from this project, the reason F1963 succeeded more than other regeneration spaces is the public-private partnership led by a company. It laid the foundation for space regeneration through an agreement with Busan City and filled the space with cultural and artistic venues and trendy commercial spaces based on private company participation.

F1963 is a mixed cultural space of about 60,000 square meters equipped with exhibition halls, performance halls, restaurants, cafes, libraries, and bookstores, where visitors can experience various brands such as Hyundai Motor Studio, Terarosa, Boksundoga, and YES24 Used Bookstore. Additionally, it provides spaces to enjoy culture such as the International Gallery, F1963 Art Library, GMC, and Seokcheon Hall, establishing itself as a new landmark of Busan.

An industry official said, “Unlike existing urban regeneration projects mainly led by public institutions and local governments, town management differs in that the public sector organizes the area while the private sector leads efforts to increase the value of the region. Based on the know-how of successful town management, the role of private companies capable of real estate operation and management is more important than anything else.”

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