The Ministry of Land, Infrastructure and Transport is seeking ways to activate the combined construction system, which allows the transfer of unused floor area ratio due to regulations to other areas or buildings. The combined construction system is an initial model of the "floor area ratio transaction system (TDR)."
According to the government on the 2nd, the Ministry of Land, Infrastructure and Transport is considering easing the application requirements for the combined construction system to promote floor area ratio transactions. This review is reported to be in response to a request from the Ministry of Strategy and Finance.
Combined construction is a system that combines two or more separate plots into a single maintenance area for reconstruction. For example, if there are floor area ratio restrictions due to the discovery of cultural assets, it would allow the remaining floor area ratio to be sold to other areas.
A Ministry of Land, Infrastructure and Transport official noted, "The combined construction system has been introduced since 2016, but it has not been activated to the extent that there are no cases so far," adding, "We plan to examine what the problems are in this area and consider overall system improvements."
The Seoul government is also considering introducing a pilot project for the floor area ratio transaction system in the first half of this year. If strong urban regulations are applied in a certain area, it aims to allow the unused development rights to be sold to other buildings or areas as compensation. The Seoul government plans to proceed with the pilot project to verify the system's effectiveness before establishing a legal basis.