The Seoul city government said on the 8th that the cumulative scale of public contributions secured through the "pre-negotiation system for urban planning changes," introduced in 2009 as the first in the country, has exceeded 10 trillion won. The pre-negotiation system is a scheme in which, when developing a large site of 5,000 square meters or more, the private sector and the public sector negotiate to change the urban plan and recoup part of the development gains as public contributions.
The Seoul city government plans to ease regulations and increase the share of cash in public contributions to support regions where the pre-negotiation system is inactive, in order to use the public contributions secured through the system as "priming water" for the "heyday of Gangbuk."
According to the Seoul city government, there are 25 sites subject to pre-negotiation, and as of the end of last year, 10.0708 trillion won in public contributions had been secured. In areas with sufficient infrastructure such as Gangnam, the city will minimize contributed acceptance and expand the share of cash public contributions from the current 30% to up to 70%, then reinvest them in Gangbuk.
Of the public contributions already secured, cash accounts for 2.494 trillion won (25%), while "installation provision" in the form of contributed acceptance—such as roads, buildings, and facility improvements—amounts to 7.5768 trillion won (75%).
Among the 25 project sites, three have been completed, two have broken ground, seven have finalized decision notices, six have completed negotiations, three are in negotiations, and four have been selected as target sites. The three-dimensional mixed-use development of the East Seoul Terminal and the development of the Sampyo Remicon site have completed their decision notices and are being pushed with the goal of breaking ground within the year.
To use the public contributions secured through the pre-negotiation system as priming water for the "heyday of Gangbuk" project, the Seoul city government will ease regulations to support regions where the pre-negotiation system is inactive. The aim is to address the issue of concentration in the city center and the Gangnam area.
Sixteen of the 25 project sites are concentrated in the city center and the southeastern region, and the scale of public contributions there accounts for 74% of the total, showing a clear regional gap.
The city will allow flexible adjustments of the public contribution rate in inactive regions of the pre-negotiation system up to a maximum of 50%, and improve the system so the nonresidential ratio can also be eased within the scope of the local government ordinance. The eligibility criteria for pre-negotiation participants, previously limited to single owners, will be expanded to include "multiple ownership," and the system will be operated flexibly through a negotiation coordination council.
To strengthen the execution of the system improvements, the Seoul city government will conduct a pilot project for inactive regions in the first half of the year through an open call. If selected, the city will ease the selection requirements for pre-negotiation target sites and rationally adjust the burden of public contributions.
To resolve issues where public contributions lose effectiveness—such as public walkways being closed as management responsibilities become fragmented after completion—the city will also institutionalize a "pre-negotiation-type town management" that guarantees the substantive execution and operational quality of public contributions. Lodging and senior infrastructure will also be expanded through the pre-negotiation approach.
When introducing tourist lodging facilities, the city will apply the district unit plan standards and ease the floor area ratio by up to 1.3 times, and lower the public contribution rate from 60% to as low as 40% of the increased floor area ratio, depending on the introduction ratios of tourist lodging and senior welfare facilities.
The Seoul city government said that if the share of cash public contributions increases at key target sites now under development, including the Seoul Express Bus Terminal, Lotte Chilsung, and the LG Electronics research center, it will be able to secure funding stably, averaging about 160 billion won per year through 2037. The secured funds will be invested in infrastructure such as roads, parks, and public transit, as well as in expanding everyday social overhead capital.
Kim Yong-hak, the Seoul city government's future space planning director, said, "We will refine the pre-negotiation system to provide stable support for balanced development between the north and south of the river."