Seoul Surpasses 10 Trillion Won in Pre-Negotiation Public Contributions... To Boost “Gangbuk Prosperity Era”

17 Years Since Initial Introduction in 2009
Secured Public Contributions to Be Invested in Gangbuk Infrastructure

Seoul Mayor Oh Se-hoon is speaking at the Gangbuk Flourishing Era 2.0 press briefing held on the 19th of last month. Provided by Seoul City.

The Seoul Metropolitan Government announced on March 8 that the total amount of public contributions secured through the pre-negotiation system for urban planning changes has surpassed 10 trillion won in cumulative value, 17 years after its introduction.

The pre-negotiation system is a framework in which, when developing large sites of 5,000 square meters or more, the private and public sectors negotiate urban planning changes and the city recoups a portion of the development profits as public contributions.

Seoul plans to utilize these secured public contributions as a catalyst for the “Gangbuk Prosperity Era.” To this end, the city will push for regulatory easing and expand the proportion of cash contributions in regions where the pre-negotiation system remains inactive.

First, in inactive regions, the city will allow the public contribution rate to be flexibly adjusted up to a maximum of 50%. The ratio of non-residential uses will also be relaxed within the limits set by ordinance. In addition, the eligibility for pre-negotiation, previously limited to single landowners, will be expanded to include sites with multiple owners.

During the first half of the year, Seoul will conduct a public contest to select pilot projects in inactive areas. Once selected, the city will ease the requirements for designating pre-negotiation sites and adjust the burden of public contributions, thereby lowering the initial entry barriers.

The city will also expand accommodation and senior infrastructure through the pre-negotiation system. For developments that introduce tourist accommodation facilities, the city will relax the floor area ratio by up to 1.3 times. Furthermore, depending on the proportion of tourist accommodation and senior welfare facilities introduced, both the public contribution rate and the allowable floor area ratio increase will be flexibly adjusted.

The city will also accelerate efforts to expand the proportion of cash in public contributions. While approximately 10.07 trillion won is projected to be secured from 25 sites covered by the pre-negotiation system, the city plans to minimize in-kind contributions, except for essential facilities, in areas like the southeastern region where sufficient infrastructure already exists. The proportion of public contributions in cash will be increased from the current 30% to up to 70%, with the goal of strategically reallocating these funds to the Gangbuk region.

The pre-negotiation system is currently being implemented at 25 sites across Seoul. If cash contributions at core sites such as Seoul Express Bus Terminal, Lotte Chilsung, and LG Electronics Research Center are expanded, the city expects to secure a stable annual average funding of about 160 billion won through 2037. These funds will be prioritized for the expansion of infrastructure such as roads, parks, and public transportation.

Kim Yonghak, Director of Future Spatial Planning at the Seoul Metropolitan Government, stated, "By refining the pre-negotiation system, we expect to stably support balanced development between the north and south of the city and accelerate ongoing projects. We will continue to upgrade the pre-negotiation system moving forward."

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