Seoul to Break Ground on 310,000 Units by 2031... 'Fast-Track Integrated Planning 2.0' to Streamline Urban Renewal Approvals

Push to Break Ground on 198,000 Units in the Hangang Belt by 2031
Eight Regulatory Reforms Including Project Approval, Management, Relocation, and Demolition
Aiming to Shorten Urban Renewal Project Timelines by an Additional Year

The Seoul Metropolitan Government is accelerating its urban renewal projects by streamlining approval procedures and promoting resident relocation, aiming to break ground on 310,000 housing units by 2031. The city has set a goal of supplying 198,000 units in high-demand areas such as the Hangang Belt, which are driving up housing prices. To expedite the process and eliminate unnecessary approval steps, Seoul will implement the second season of its "Fast-Track Integrated Planning" initiative.

On September 29, the Seoul Metropolitan Government announced its plan to implement "Fast-Track Integrated Planning 2.0," designed to accelerate private sector-led urban renewal projects by innovating approval and permitting regulations. The Fast-Track Integrated Planning initiative refers to Seoul’s public support plan for expediting urban renewal projects. In July, the city proposed reducing the current average project duration from 18.5 years to 13 years. With the latest regulatory improvements, Seoul aims to shorten the timeline by an additional year, completing projects within 12 years.

310,000 Units to Break Ground by 2031, 198,000 Units in the Hangang Belt

Seoul plans to break ground on 310,000 units over the next six years. The annual targets are: 23,000 units in 2026; 34,000 units in 2027; 22,000 units in 2028; 46,000 units in 2029; 73,000 units in 2030; and 112,000 units in 2031. The city has estimated the 2026 supply based on complexes scheduled for resident relocation and demolition by project stage, projected the 2027-2030 supply from projects in the implementation and management approval stages, and expects sites currently in the district designation stage to be supplied in 2031. The 23,000 units slated for groundbreaking next year include Bangbae Sindonga, Bangbae District 13, Hannam District 3, Noryangjin Districts 5 and 7, Geumho District 16, Macheon District 4, and Sindang District 8.

The city also plans to supply 198,000 units in the Hangang Belt over the next six years, with annual projections of 12,000 units in 2026; 15,000 in 2027; 11,000 in 2028; 30,000 in 2029; 38,000 in 2030; and 92,000 in 2031.

Fast-Track Integrated Planning 2.0 Focuses on Accelerating Post-Implementation Approvals

The city will eliminate and simplify various procedures to shorten the timeline from the middle to later stages of the project. The urban renewal process proceeds in the following order: district designation, promotion committee and association establishment, project implementation approval, management and disposal approval, resident relocation and demolition, and groundbreaking. This regulatory reform focuses on improving the speed from project implementation approval to the relocation stage. For example, the preliminary environmental impact assessment review meeting, which was previously held before the integrated review, will be omitted. By conducting a comprehensive review during the integrated review, the project timeline can be shortened by about two months.

The redundant "qualification check for redevelopment rental housing tenants," which was previously conducted at both the project implementation and management approval stages, will now be performed only once at the management approval stage. The "estimated contribution verification process" required before the association’s sales announcement will be reduced from four times to three. Previously, the process occurred before association establishment, before project implementation approval, before the management and disposal plan, and twice during the plan stage. The city will immediately abolish the duplicate verification during the management and disposal stage.

The responsibility for coordinating interdepartmental differences, which was the most time-consuming part of the project implementation approval process, will shift from the project implementer (association) to the Seoul Metropolitan Government, reducing the timeline by two months. Currently, the Korea Real Estate Board is solely responsible for the "management and disposal plan feasibility review," but starting in the first half of next year, Seoul Housing & Communities Corporation (SH) will also participate. This process currently takes up to nine months; with SH’s involvement, it can be shortened by two months, and delays due to a surge in project volume can be prevented.

New Tenant Support Criteria for Relocation, Streamlined Building Demolition Review

As a measure to promote relocation, the city will introduce additional compensation criteria allowing associations to compensate tenants in redevelopment zones who were previously excluded from compensation. Redevelopment project implementers are required to compensate tenants, but if tenants change, they are excluded from compensation, often leading to conflict during relocation. The city will allow for a relaxation of the floor area ratio by around 4% if additional compensation is paid.

The comprehensive demolition plan, which was previously required for all buildings in a redevelopment zone, will also be simplified. Only areas requiring actual demolition will need to submit a demolition plan for review, which is expected to shorten the review process by about two months.

For minor changes such as floor area ratio or redevelopment zone size, the authority of district mayors will be significantly expanded, reducing the project duration by one month. Currently, district mayors can only process changes of less than 5% in zone area, infrastructure size, floor area ratio, or building coverage ratio. Going forward, they will be able to process changes of less than 10%.

Seoul Mayor Oh Sehoon stated, "The key to solving Seoul’s housing supply problem is private sector-led urban renewal, especially ensuring sufficient housing in major areas such as the three Gangnam districts. By fully launching Fast-Track Integrated Planning Season 2, we will dramatically accelerate the supply process and achieve tangible housing supply and real estate market stabilization across Seoul."

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