Reducing Types and Increasing Support Amounts... 'Selection and Concentration' in Yoon Administration's Urban Regeneration

Status of the Seoul Gangseo (Gimpo Airport) Innovation District Project Selected in 2021
＜Source: Ministry of Land, Infrastructure and Transport＞

The types of urban regeneration projects will be reduced from the existing five to two, while the support funds will increase. The strategy is to accelerate project progress and maximize effectiveness through selection and concentration.

On the 27th, the Ministry of Land, Infrastructure and Transport announced that it will apply the "New Government Urban Regeneration Promotion Plan," which was prepared by thoroughly analyzing and evaluating the achievements and limitations of urban regeneration projects carried out over the past five years through four expert advisory meetings and discussions, and considering the changed policy environment, starting with new projects this year.

The new government's urban regeneration projects will be promoted based on three basic directions: ① promoting urban space innovation through the creation of economic hubs in declining areas, ② strengthening urban competitiveness through region-specific customized regeneration projects, and ③ leading balanced regional development through active participation of local communities and the private sector.

First, to maximize project effects, the project system will be reorganized to be performance-centered. The existing five project types will be consolidated into two types: "economic regeneration" and "regional specialized regeneration," and about 40 new projects will be selected annually to support substantial projects through selection and concentration.

Additionally, to promote economic regeneration, the innovative district project, which creates hub facilities with significant economic ripple effects in declining old downtown areas, will be actively pursued. The innovative district project involves mixed development of urban functions such as residential, office, and commercial in declining areas, supported by finances and funds, and expedited through urban and architectural special measures such as floor area ratio relaxation.

Alongside this, for regional specialized regeneration, urban branding utilizing unique local resources will be promoted, and region-customized projects such as creating startup spaces and revitalizing central and alleyway commercial districts will be pursued. The Housing and Urban Fund will support rental shops and startup space creation, and investment in the mother fund will be expanded to nurture economic entities such as startups and venture companies.

To activate private participation, the "public-private cooperative REITs (Real Estate Investment Trusts)" projects, where public and private sectors collaborate from the project planning stage, will also be expanded. To this end, support will be provided for project planning, design, and financial structuring consulting, and the verification process for construction costs proposed by the private sector will be institutionalized. The "private proposal-type REITs," where the private sector plans projects in specific locations and gives priority proposals to the public, will also be actively discovered.

To revitalize housing maintenance, high-quality housing will be supplied through urban regeneration projects implemented by the public sector with support such as finances and special measures, and infrastructure installation will be supported in connection with various maintenance projects. For aging residential areas where housing maintenance projects are difficult, urban regeneration infrastructure such as parking lots and welfare facilities will be expanded by utilizing vacant houses in urgent areas, and support will be linked for house repairs and alleyway maintenance to improve village landscapes effectively, while expanding the integration of smart technologies.

Among about 40 new projects this year, about 10 innovative district and recognized projects will be selected through central public contests, and about 30 regional specialized regeneration and Our Neighborhood Revival projects will be selected through city and provincial public contests.

Due to the consolidation of project types, the national government support per project will increase compared to before. In particular, for city and provincial public contest projects, cities and provinces can autonomously select projects within their total budget, and considering project characteristics, national government support will be provided up to 130% of the standard support amount.

National Funding Amount and Execution Period

The central public contest will follow the same procedures as before, proceeding with pre-consultation in August to September, project submission in September, feasibility and validity evaluation from September to November, inter-ministerial consultation in November, and review and project selection by the Urban Regeneration Special Committee in December. Local governments wishing to apply for projects must submit related documents and drawings through the Urban Regeneration Comprehensive Information System website within the submission deadline.

As the first step for the new project contest, the Ministry of Land, Infrastructure and Transport will hold a local government briefing session on July 28, attended by local government officials nationwide, to discuss urban regeneration promotion directions and contest schedules.

Kim Sang-seok, head of the Urban Regeneration Project Planning Division at the Ministry of Land, Infrastructure and Transport, said, "By focusing support on substantial projects such as the creation of economic hubs rather than the existing lifestyle SOC supply-oriented projects, we expect to maximize the original goals of urban regeneration, such as revitalizing the local economy and creating jobs. We will strive to select only projects with promising outcomes and high plan completeness in the future."

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