The city of Seoul will abolish and reduce the non-residential facility (commercial space) ratio in mixed-use residential buildings within commercial and semi-residential areas. The exemption criteria for environmental impact assessment will also be expanded by about twofold.
Seoul announced on the 5th that it has prepared regulatory reform proposals No. 1 and 2. This follows a special economic meeting headed by Mayor Oh Se-hoon on Dec. 19 of last year, where ‘regulatory reform’ was discussed as a key agenda item and the first improvement plan was established.
The regulatory reform proposals include two items: relaxing the non-residential use ratio in mixed-use residential buildings and improving the environmental impact assessment system.
The first task is to relax the non-residential facility ratio. Currently, the non-residential facility ratio in mixed-use residential buildings in Seoul's urban commercial areas is over 20% of the total floor area according to urban planning regulations. In semi-residential areas, it is set to be more than 10% of the floor area ratio based on district unit planning guidelines.
However, with the recent increase in the use of large complex shopping malls and online shopping malls, vacancies in commercial spaces have sharply risen, creating a need for institutional reform. Meanwhile, the demand for dwellings in the city center continues to persist.
Seoul plans to amend the urban planning ordinance during the first half of this year to lower the commercial space ratio in mixed-use residential buildings from 20% to 10% within commercial areas. When introducing rental housing or public dormitories in general or neighborhood commercial areas, 100% single dwelling units will also be permitted instead of mixed-use residential buildings.
The regulations on the floor area ratio of non-residential facilities in mixed-use residential buildings in semi-residential areas not affected by the ordinance will be abolished immediately by revising the city's district unit planning criteria this month.
This will lead to an expansion in the supply of necessary uses such as residential and business facilities corresponding to the reduced area of commercial space, which may also invigorate development projects. For example, approximately 50 residential units can be converted in semi-residential areas and about 100 residential units in commercial areas on a 10,000 square meter site. The city explained that it would enable the establishment of building plans tailored to regional characteristics and demand.
The second task is to expand the exemption criteria for the main environmental impact assessment and streamline the procedures. The environmental impact assessment is effective in preventing noise, vibration, and dust damage, but there have been many calls for regulatory improvements due to project delays.
The city will revive the previously invalidated 'exemption from consultation procedures' system and will skip the main review for projects complying with the review criteria. This exemption system allows for skipping the main review for projects that comply with the environmental impact assessment review standards upon draft submission.
As a result, the consultation period for the environmental impact assessment will be significantly reduced from the previous 48 days (20 days for the draft and 28 days for the main review) to below 20 days.
Through the ordinance revision in the first half of this year, the categories eligible for exemptions will also be expanded from 'buildings with a total floor area of 200,000 square meters or less' and 'redevelopment project areas of 180,000 square meters or less' to include all projects. This will approximately double the number of projects eligible for exemptions. The review criteria will also be completely revised to unify evaluation items that overlapped with other reviews.
The city plans to continue holding the 'Construction Industry Regulatory Reform Task Force' to gather various opinions from the construction industry while going beyond regulatory reforms to implement minimal regulations. The first meeting of the task force was held on the 26th of last month.
Meanwhile, the city will hold a 'Regulatory Relief to Revitalize Livelihoods Forum' to incorporate citizens' ideas for regulatory reforms into policy. The forum will take place on the 14th at 2 p.m. in the main conference room of Seoul City Hall. Applications for participation can be made by the 8th via the Seoul City website or through 'Imagining Seoul.'