Residents to Propose Development Directly... MOLIT Invites Candidates for "Urban Complex Project Season 2"

Resident Proposals Invited for Seoul Area Sites
Higher Resident Participation Means More Points
Final Candidate Sites to Be Selected in June

The Ministry of Land, Infrastructure and Transport has launched a new call for candidate sites for the "Public Urban Complex Housing Project," an initiative to supply housing in low-rise, aging residential areas under public leadership. The plan is to accelerate the pace of housing supply by introducing a system in which residents can directly propose project sites and receive additional points the stronger their commitment to development.

The Ministry announced on the 10th that it will begin accepting applications for new candidate sites for the Urban Public Housing Complex Project (Urban Complex Project) starting from the 11th. The current call targets areas in Seoul, while additional recruitment for other regions within the Seoul metropolitan area and major cities will take place in the second half of the year. Applications will be accepted until May 8, and the final candidate sites will be selected in June.

The Urban Complex Project is a program designed to quickly supply housing in deteriorated urban areas where private redevelopment is difficult and development has stagnated. It does so by adopting a public-led expropriation method (compensation in kind). The project can be carried out swiftly as it allows the omission of steps such as forming an association and establishing a management and disposition plan.

This is the first new recruitment in three years since 2023. Previously, from 2021 to 2023, the Ministry designated a total of 49 candidate sites (87,000 housing units) over 10 rounds, and 29 of these (48,000 units) were selected as complex zones. Among the 29, nine sites (13,000 units) have received project approval. Starting with the Jemulpo Station project, which will provide 3,497 units this year, a total of 50,000 units are scheduled to break ground sequentially in the Seoul metropolitan area by 2030.

The Ministry has decided to introduce a direct resident proposal system for candidate site selection this time. Residents of areas that meet the criteria for building age and size, based on project types such as areas near subway stations, quasi-industrial zones, and low-rise residential neighborhoods, can participate in the call through their district office. The district office will review the resident-submitted candidate sites, considering resident participation rates and the status of nearby development, and recommend suitable sites to the Ministry. The higher the rate of resident participation, the greater the likelihood of selection. A Ministry official explained, "We are considering a system that awards additional points for participation rates above 10% and gives full points for rates above 30%."

The Ministry plans to conduct a business feasibility analysis on the recommended candidate sites before making the final selection. In addition, to provide detailed explanations of the candidate sites, it will hold on-site briefings in four regions of Seoul on two occasions starting from the 24th of this month.

At the same time, various regulations previously imposed to curb speculation on existing and new candidate sites have been relaxed. First, the priority supply base date has been adjusted from the previous legal decision date (June 29, 2021) to the selection date for each candidate site, thereby easing the standards for compensation in kind. This change was made considering that excluding people who purchased housing or land in candidate sites after a certain date from being eligible for residency rights and only offering cash compensation at the appraised value led to resistance from landowners and hindered the project.

Furthermore, if the first transaction of a house or land in a project area after the new priority supply base date is made by a person without a home, that person will now be eligible for pre-sale rights. The Ministry also decided not to apply the mandatory price ceiling system that was in effect when previous sites were selected.

To facilitate project implementation, the Ministry is also pushing for legal revisions. It aims to amend the Enforcement Decree of the Special Act on Public Housing within this month to allow the floor area ratio of project sites to be relaxed up to 1.4 times the legal maximum. The Ministry will also make every effort to ensure that the revision of the Special Act on Public Housing, which would abolish the sunset provision for the Urban Complex Project, passes the plenary session. Currently, the Special Act on Public Housing is under review by the National Land Committee’s legislative subcommittee.

Kim Youngguk, head of the Housing Supply Promotion Headquarters at the Ministry of Land, Infrastructure and Transport, emphasized, "We hope residents and district offices will actively participate in this call for new candidate sites for the Urban Complex Project, which is being promoted for the first time in three years." He added, "After selecting the new candidate sites, we will work closely with relevant agencies to ensure that follow-up procedures such as zone designation can proceed swiftly."

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