"To raise the urban competitiveness of Korea, we need to shift to compact city (Compact City) development that densely concentrates housing, workplaces, culture, and public services in downtown areas where social infrastructure is well established."
Moon Joo-hyun, chair of MDM Group and a leading figure in the domestic real estate developer industry, said this at the 20th anniversary event of the Korea Developer Association (Korea Developer Association) held at 9:30 a.m. on the 5th floor Grand Ballroom of the InterContinental Parnas in Gangnam, Seoul, on the 20th.
Chair Moon said, "The key strategy to strengthen Korea's urban competitiveness is to shift to 'compressed development,'" and explained, "By concentrating supply in downtown areas with high demand, it reduces resource waste such as unnecessary transportation and infrastructure construction and maximizes urban functions."
Chair Moon said the domestic real estate developer industry is currently facing a complex crisis, including high interest rates, rising construction costs, and a freeze in the project financing (PF) market.
He also noted that a variety of problems are emerging due to overcrowding in the greater Seoul area, including Seoul.
With 20% of the total population and 50% of gross domestic product (GDP) concentrated in Seoul, transportation, environment, and dwellings problems are intensifying, according to the analysis. Chair Moon also said conflicts are growing due to polarization between regions and classes.
He emphasized, "In the 1970s, urban expansion through building new towns contributed to the rapid growth of the domestic economy, but now that it has reached its limits, urban development must also change direction," adding, "We need to switch to high-density compressed development in downtown areas with well-established infrastructure, turning toward vertical mixed-use cities, in other words, compact cities."
Chair Moon added, "A developer can be compared to the conductor of an orchestra who takes responsibility from the start to the finish of a development project and creates the best work by maximizing the strengths of each stage," and "Going forward, with creativity, innovation, and strong execution, we will help make Korea the No. 1 country in urban competitiveness."
Executives from global real estate development companies, including Kushner Companies of the United States, Mori Building of Japan, and Edge of the Netherlands, participated as speakers at the event.
Nicole Kushner Meyer of Kushner Companies, who took the stage as the first speaker, said the company is focusing on the multifamily rental housing business.
Kushner Meyer said, "We are expanding the multifamily rental housing business as an industry with long-term growth potential because it is favorable for stable cash flow and hedging against inflation," adding, "The core principles the company adheres to are location, community integration, and premium lifestyle."
Next, Vice President Mori Hiroo of Mori Building cited safety and security, eco-friendliness, and culture and art as Mori Building's urban development philosophy. As a representative example applying this philosophy, he introduced the "compact garden city" (Vertical Garden City). He explained that they carried out integrated urban development that includes workplaces, housing, and leisure within the residential area.
Vice President Mori Hiroo said, "Representative urban development projects of the Mori Group completed through long-term agreements with land owners include Roppongi Hills and Azabudai Hills," adding, "Based on the understanding of current residents, we proceed with projects, and the ultimate goal is to turn poor locations into better ones through redevelopment."