The urban regeneration project in Seoul, which was launched in 2012, is now in its mature stage of growth. It is time to diagnose the major achievements of the projects approved previously.
The main issues targeted in the assessment of previous projects are as follows: Differentiation of city regeneration projects that did not reflect the location characteristics; insufficient research into the appropriate use of central facilities to promote changes in the area; and lack of systematic management of commercial districts in response to gentrification challenges and vacancy management. In addition, the limits of regeneration via sustainable management have been exposed within areas completing legal urban regeneration projects.
The purpose of this study has been to ensure the performance and sustainability of urban regeneration projects by securing ‘Public Rental Facilities’ as one of the methodologies to resolve the following major issues.
① To study various types of urban regeneration projects, and to meet local demands via supply of facilities (uses) appropriate to the sites.
② To introduce ‘Public Rental Facilities’ that are less expensive than the local market prices in order to effectively regenerate the urban revitalization area, in order to maintain appropriate rental rates and prevent gentrification.
③ To lay the foundation for a sustainable operating system to promote specialized administrative organization in the urban regeneration area by managing rental revenues from ‘Public Rental Facilities’.
This study has been conducted as follows.
First, ‘Public Rental Facilities’ have been defined as ‘Public-Benefit Rental Facilities’, which are profitable entities with a self-rehabilitation system in areas of urban regeneration, which can be used not only to represent inexpensive rental stores leased by the public, but also as a facility to accommodate the needs of the city flexibly.
Second, to raise the initial project funding for ‘Public Rental Facilities’, we evaluated the residential revitalization fund that can be shared with the public or private sector, in addition to the municipal revitalization project budget.
Third, in order to improve the legal system, the Special Act on Promotion of and Support for Urban Regeneration has been reviewed to secure facilities for public contribution by linking them with the Innovation District and revising the criteria for establishing the Urban Management Plan of the National Land Planning and Utilization Act.
Fourth, to facilitate continuous operation and management, we proposed an organization specializing in market economy to operate independent facilities after the completion of the urban regeneration project, and presented a framework for an overall virtuous cycle structure.
Based on this study, the Yong-San Electronic Complex has been selected as the site for a case study, and ‘Public Rental Facilities’ have been administered through a consigned development project on the public land, and a business structure for operation and management has been verified via simulation.