The government has established an institutional foundation to systematically develop the above-ground space and surrounding areas secured through the railway underground project. It is expected that high-density, mixed-use city development centered around transportation hubs will be activated through special measures such as relaxation of the floor area ratio.
On the 31st, the Ministry of Land, Infrastructure and Transport announced that the enforcement regulations and rules for the ‘Special Act on Underground Railway and Integrated Development of Railway Sites (Railway Underground Integrated Development Act)’ will be implemented starting today. The revised subordinate regulations include various special measures to promote the development of railway sites and contain provisions to reorganize the financial support from local governments and the project promotion system.
Through this amendment, the scope of railway site development projects has expanded from the existing three projects (public housing projects, urban development projects, and transit-oriented development projects) to 16 types, including complex transfer centers and urban regeneration projects. This allows for the implementation of various development projects tailored to the characteristics of each region.
In particular, to promote high-density and mixed development centered around transportation hubs, the special measures regarding floor area ratio and building coverage ratio have been expanded. The level of relaxation for the floor area ratio will be increased by up to 150% compared to existing regulations. Additionally, the artificial ground (land above ground structures) created on top of the railway will be excluded from the calculation of floor area ratio and building coverage ratio. The installation standards for parking lots will also be relaxed to 50% of the existing regulations.
To reduce the burden of installation costs for infrastructure arising from railway site development, it has been arranged for city and provincial governors to prioritize support for the installation costs of public facilities such as roads and parks. Furthermore, when local governments support the finances needed for the railway underground project, they will be allowed to consider the economic ripple effects of the project and future increases in local government tax revenue.
When project implementers issue bonds to secure funding for development projects, the procedures and methods for issuance have been clearly specified to ensure transparency in financial management. This is expected to facilitate the inflow of private capital and enhance the stability of large-scale project implementation.
Yoon Jin-hwan, director of the Railway Bureau at the Ministry of Land, Infrastructure and Transport, noted, “With the implementation of this regulation, the institutional foundation for underground railway integrated development projects has been strengthened, and we will actively support the successful promotion of these projects.”