Seoul Secures Funding for “Gangbuk Renaissance Era”... Gangbuk Development Accelerates

The Seoul Metropolitan Government has secured a financial foundation necessary for the development of the “Gangbuk Renaissance Era” project. This project aims to transform the Gangbuk and southwestern districts from bedroom communities into industrial hubs. The city plans to invest a total of 16 trillion won in this initiative.

On April 29, the Seoul Metropolitan Government announced that an ordinance bill to newly establish a separate “Gangbuk and Other Districts Development Account” within the “Public Facilities Installation Fund” had passed the plenary session of the Seoul Metropolitan Council on April 28. The ordinance will take effect on May 18 after review by the Seoul Metropolitan Ordinance and Rules Deliberation Committee.

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The “Seoul Public Facilities Installation Fund” was established in 2020 in accordance with the National Land Planning Act. The fund is created by accepting a portion of public contributions, such as changes to land-use zones in large-scale urban redevelopment or mixed-use development around subway stations, in the form of cash donations. Cash contributions are allowed only when sufficient public facilities have already been secured within the relevant district unit planning area. The resources accumulated in the fund can be widely used wherever public infrastructure such as roads and regional facilities is needed, rather than being limited to any specific development district.

Previously, the fund operated as a single account without any subdivisions, but with this ordinance revision, it will now be divided into a “General Account” and the newly established “Gangbuk and Other Districts Development Account.” The resources in the “Gangbuk and Other Districts Development Account” will be used as the financial base for the “Again, Gangbuk Renaissance Era” initiative announced by the city in February this year. The city explained that the significance of this ordinance revision lies in establishing a more systematic and stable foundation for allocating resources to development projects in the Gangbuk and southwestern areas.

In February, the Seoul Metropolitan Government announced the “Again, Gangbuk Renaissance Era 2.0” project, which involves investing a total of 16 trillion won to create economic centers outside the Gangnam area and promote balanced development between Gangnam and Gangbuk. The key components include establishing a 4.8 trillion won Gangbuk Renaissance Fund and promoting “growth hub-type mixed-use development projects” in major Gangbuk areas. The budget allocations include approximately 3.4 trillion won for the undergrounding of the Inner Ring Road and Northern Arterial Road, 3.3 trillion won for undergrounding the Eastern Arterial Road, 2.6 trillion won for constructing the Gangbuk Cross Line, 2 trillion won for the Western Line, 1.7 trillion won for the Northeastern Line, and 1.1 trillion won for the Myeonmok Line.

The creation of industrial hubs in each region is also accelerating. In the northeastern area, the Chang-dong and Sanggye districts will be transformed into a new growth axis through the Seoul-style industrial complex “S-DBC,” focused on advanced research and development (R&D), and the dedicated K-pop concert venue Seoul Arena. In the northwestern area, the Digital Media City (DMC) landmark site and the land vacated by the relocation of the Western Driver’s License Test Center will be developed together to create an international exchange space for advanced industries. In the city center, areas such as the Sewoon District and the northern area of Seoul Station will be transformed into landmarks.

Ahn Daehee, Director General of Urban Space Planning at the Seoul Metropolitan Government, stated, “The establishment of the ‘Gangbuk and Other Districts Development Account’ is a meaningful measure that provides a crucial financial foundation for realizing the Gangbuk Renaissance Era. We will actively seek out and systematically manage resources to ensure that the fund serves as a catalyst for the development of Gangbuk and the southwestern areas.”

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