Since the late 2000s, the urban regeneration paradigm has shifted from redevelopment projects that involved large-scale demolition of old low-rise residential areas to multiple small-scale residential regeneration programs that focus on small parcels of land. Since 2013, regeneration programs have been diversified by introducing policies and regulations to promote small-scale residential regeneration programs such as the facilitated urban regeneration program. The facilitated urban regeneration program launched in 2015 and since its inception has focused first and foremost on developing the region’s public infrastructure and as a secondary aim has facilitated the private sector to restore residential areas. However, the investment from the private sector is at a low ebb.

Although the Urban Regeneration Act includes mitigation provisions for floor area ratio, building to land ratio, maximum height by block-unit, and parking lot requirements, it has been pointed out that these mitigation provisions are vague and ineffective.

This research aims to figure out whether the mitigation provisions of the Urban Regeneration Act works as designed and facilitate private sector development, we also wish to quantify the effectiveness of these provisions. Examining the public records shows that there have been no deregulation cases based on the Urban Regeneration Act and therefore the deregulation of factors like floor area ratio, building to land ratio, maximum height by block-unit, and parking lot requirements for each parcels have, to this point in time, not worked in practice. In addition, a simulation on the impact of deregulation of floor area ratio in Jangwi-dong, one of the facilitated urban regeneration area, showed that around 36.1% of the area could not even maintain the current floor area ratio because of poor road conditions, area parcel scale, and topographic features. Only 37.8% of area is able to secure the additional 50% floor area ratio available when applying to take advantage of the deregulation of floor area ratio.

Further consideration of meaningful deregulation of the building code in addition to deregulation of the floor area ratio, building to land ratio, maximum height by block-unit, and parking lot requirements is required in order to facilitate the private sector in restoring small scale residential areas in the facilitated urban Area. In addition, a specialized approach is required for areas where the road conditions, area parcel scale, and topographic features are not attractive to private developers. Finally, parcel scale planning and management is required in the facilitated urban area regeneration programs and the public role in areas with poor infrastructure and more difficulty for parcel improvement should be given special attention.