Daegu City Council Urges Expansion of Urban Regeneration Project Site Purchase Costs to 50%

Proposal Submitted by Chairman Jang Sang-su Adopted by the Council of Chairpersons of City and Provincial Councils of the Republic of Korea

Jang Sang-su, Chairman of Daegu City Council.

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] The proposal for the "Improvement of National Subsidy Support System for Urban Regeneration Recognition Projects," suggested by Jang Sang-su, chairman of the Daegu City Council, was adopted as originally proposed at the first extraordinary meeting of the Korea City and Provincial Council Chairpersons' Association held on the 18th.

The proposal, officially adopted as an agenda item by the association, is scheduled to be forwarded to the Ministry of Land, Infrastructure and Transport, the relevant department.

The proposal includes expanding the support scope for land and building purchase costs to up to 50% of the total project cost for urban regeneration recognition projects.

Urban regeneration recognition projects are projects that support national subsidies and housing and urban funds for small-scale "point unit" development projects that align with the regional regeneration directions in the urban regeneration strategic plan.

They involve purchasing and reconstructing existing sites or buildings such as modern architectural structures, abandoned factories, and vacant stores to utilize them as facilities necessary for urban regeneration projects.

Since 2019, these projects have been implemented to promote urban regeneration projects such as living convenience facilities, safety facilities, and other living SOC, as well as the supply of rental housing and commercial spaces, in areas where basic living infrastructure falls below the national minimum standards or in declining areas without an urban regeneration activation plan.

The project costs are supported at a 5:5 ratio between national and local governments, with national subsidies up to 5 billion KRW, and land purchase costs supported within 30% of the total project cost.

The Daegu City Council argued that for urban regeneration recognition projects involving the purchase or reuse of existing sites or buildings, since land and building purchase costs constitute a large portion of the project costs, the support ratio for purchase costs should be expanded to 50%.

Chairman Jang Sang-su said, "If the ratio increases, the willingness to promote urban regeneration projects in each region will rise, and creative projects tailored to regional characteristics will be discovered," adding, "We will focus on and support the active promotion of regeneration projects that will breathe new life into the city center."

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