SH Corporation, Proactive Advancement of Transit-Oriented High-Density Mixed-Use Development Projects

by Kwak Minjae

Published 20 Dec.2023 14:42(KST)

Seoul Housing and Communities Corporation (SH Corporation) announced on the 20th that it will establish a comprehensive redevelopment plan and business strategy for areas around transit stations, reflecting local characteristics led by local governments and regional corporations.

Example of creating a pedestrian daily zone in a high-density mixed-use development near a station area. [Image provided by SH Corporation]

Existing transit station area projects have had limitations due to being carried out on a parcel-by-parcel basis relying on private autonomy under different laws, ordinances, and systems, resulting in a lack of systematic approach and insufficient consideration of surrounding areas. Accordingly, SH Corporation decided to establish a comprehensive redevelopment plan and business strategy that can integrally manage all development processes, enabling local governments or regional corporations to lead transit station area development, activate urban functions suited to local characteristics, and reinvest development profits back into the community.

Through mixed-use development around transit stations, the plan aims to create a ‘walking daily life zone,’ one of the seven goals of the ‘2040 Seoul Urban Basic Plan,’ allowing residents to enjoy a variety of daily activities such as housing, jobs, leisure culture, and commerce within a 30-minute walking radius, thereby contributing to the improvement of citizens’ quality of life.

Additionally, SH Corporation plans to identify pilot project sites where the floor area transfer system, which Seoul City is scheduled to consider introducing, can be applied, and prepare measures to link these with high-density mixed-use development projects around transit stations for proactive response.

The floor area transfer system is a mechanism that allows the sale or transfer of floor area ratios from areas where development is restricted by relevant laws or regulations to areas where high-density development is possible. With the introduction of this system, areas with preservation value such as historical resources or natural landscapes can be conserved, while areas with development demand like transit station zones can secure project feasibility through high-density development.

In particular, development profits from transit station area projects can be reinvested or returned as resources for upgrading facilities by newly redeveloping aging low-rise residential areas that have long been neglected due to lack of profitability, or by improving or expanding underutilized urban planning facilities such as parking lots and sports facilities, thereby contributing to housing stability for low-income residents and resolving local issues.

To this end, SH Corporation issued a request for proposals on the 19th for the ‘Development of Transit Station Area Mixed-Use Development Models and Establishment of Commercialization Plans.’ The main objective is to analyze all transit station areas in Seoul, develop mixed-use development models by type, select pilot project sites, and discover new projects in which SH Corporation can participate through establishing basic concepts (three-dimensional land use plans, architectural plans, transportation plans, etc.) and commercialization plans.

SH Corporation will explain the direction and scope of the project at a proposal briefing session on the 27th, receive proposals by February 2024, conduct evaluations, and commence the project by the end of February.

Kim Heon-dong, President of SH Corporation, stated, “We will establish a comprehensive redevelopment plan and business strategy for transit station areas and proactively promote high-density mixed-use development projects reflecting local characteristics in connection with the floor area transfer system. In particular, we will promote regional development through reinvestment of development profits generated from transit station area projects and contribute to realizing a three-dimensional urban spatial structure centered on transit stations.” He added, “Through systematic development of transit station areas, we will enhance citizens’ quality of life and take the lead in boosting the urban competitiveness of Seoul, a millennium city.”