In order to maximize the effect of the urban regeneration project, the government will reorganize the project system based on performance. To this end, the five existing business types will be integrated and abolished into two types: ‘economic regeneration’ and ‘regional specialized regeneration’.
In addition, it was decided to actively promote the innovative district project to create a base facility with a large economic ripple effect in the decaying original downtown for economic revitalization.
On the 27th, the Ministry of Land, Infrastructure and Transport prepared and announced the ‘New Government’s Urban Regeneration Promotion Plan’, which included these contents, and focused on the creation of an economic base and specialized regional regeneration.
As the basic direction of the urban regeneration project, the government suggested ▲promoting urban space innovation through the creation of economic hubs in declining areas, ▲reinforcing urban competitiveness through regional regeneration projects, and ▲leading balanced regional development through active participation of the local and private sector.
First, the business system will be reorganized based on performance to maximize business effects. The existing five business types, which are economic base type, central city area type, general neighborhood type, residential support type, and innovative district, will be integrated and abolished into two types: economic regeneration and regional specialized regeneration.
The Ministry of Land, Infrastructure and Transport plans to select around 40 new projects every year to support large-scale projects through selection and concentration.
In addition, it plans to directly evaluate the ‘project’ instead of the urban regeneration revitalization plan to support high-quality projects and maximize the business effects such as economic revitalization and job creation. For existing projects, the amount of government subsidy is determined annually by reflecting the evaluation of the implementation performance, and the support budget for sluggish projects is reduced.
At the same time, it was decided to promote the innovative district project to create a base facility with a large economic ripple effect in the decaying original downtown for economic revitalization.
The innovation district is a project for complex development of urban functions such as residential, business, and commerce in declining areas.
In addition, the Ministry of Land, Infrastructure and Transport promotes urban branding using regional resources for regional specialized regeneration, and promotes regionally tailored projects such as creation of startup spaces and revitalization of central and alley commercial areas.
To this end, we will promote city branding by strengthening storytelling using local history and culture resources, creating tourism and cultural bases, and developing visiting courses.
It will also revitalize central and alley commercial districts by providing integrated support for space creation and programs such as store brand development using local resources, specialized street creation, and commercial district consulting.
In addition, to revitalize private participation, from the project conception stage, the public and privateReits)’ business expansion.
To this end, we support project planning and design and financial structuring consulting, and institutionalize construction cost verification procedures suggested by the private sector. We also plan to actively discover REITs proposed by the private sector in which the private sector plans a project in a specific location and offers it to the public first.
In order to alleviate project risks and promote private participation, government support and pre-purchase through space support REITs are also supported when combined with urban regeneration projects.
In old residential areas where housing maintenance is difficult, use vacant houses from urgent places to expand urban regeneration infrastructure such as parking lots and welfare facilities. The plan is to link and support house repairs and alleyway maintenance to effectively improve the village landscape.
At the same time, the Ministry of Land, Infrastructure and Transport decided to strengthen the autonomy of local governments so that local governments can select various project promotion systems by utilizing local expertise.
The procedures will be simplified so that the urban regeneration support center, consultative body, and advisory body can be flexibly configured and operated if necessary according to the characteristics of the project and local conditions.
Program projects to strengthen residents’ capacity are switched to local governments autonomously, and the central government focuses on training experts and local government officials, and nurturing professional manpower at base universities.
The Ministry of Land, Infrastructure and Transport also rearranged the organization of the Urban Regeneration Project Planning Team. The Urban Regeneration Policy Division was renamed the Urban Renewal Policy Division, the Urban Regeneration Capability Division was renamed the Urban Renewal Economy Division, and the Urban Regeneration Economy Division was renamed the Urban Reorganization Industry Division.
In addition, the Ministry of Land, Infrastructure and Transport plans to select 10 innovative districts and accredited projects out of 40 new projects this year through a central public contest, and 30 cities/provinces for regionally specialized regeneration and revitalization of our neighborhoods.
Depending on the type of business consolidation or abolition, the amount of government subsidy per project will increase compared to the previous one.
The innovative district project selected through the central public offering will receive KRW 25 billion over 5 years, KRW 5 billion will be provided for 3 years for the accredited project, and KRW 15 billion will be provided for 4 years for the specialized regeneration project selected through the city/province public offering, and KRW 5 billion for the 4 years project. Support.
In the case of a city/province public offering project, the city/province can autonomously select the project within the total budget of the city/province. Considering business characteristics, etc., 130% is subsidized by the state.
The central public offering has the same procedure as before. 8~9Pre-consulting in month, business application in September, 9~11feasibility and feasibility assessment in the month; 11Monthly consultation with relevant ministries, 12Monthly Urban Regeneration Special Committee deliberation and project selection are conducted.
The city/province public contest is promoted by integrating the existing city/province selection evaluation with the central feasibility and feasibility evaluation for rapid project selection and simplification of procedures. 8~9Monthly pre-consulting, business registration in September, 9~11monthly selection evaluation, 12Monthly special committee deliberation and project selection will be conducted in the following order.
Local governments wishing to apply for the project must submit related documents and drawings to the Urban Regeneration Comprehensive Information System (www.city.go.kr) within the application deadline.
It must be submitted through the website.
Kim Sang-seok, head of the Urban Regeneration Project Planning Division of the Ministry of Land, Infrastructure and Transport, said, “According to the new urban regeneration promotion direction, the original purpose of urban regeneration is revitalization of the local economy and job creation by intensively supporting large-scale projects such as the creation of an economic base from the existing projects centered on supply of living SOC. is expected to be maximized.”
Inquiries: Urban Redevelopment Policy Division, Urban Regeneration Project Planning Team, Ministry of Land, Infrastructure and Transport 044-201-4151
