Seoul said it will lower the public contribution rate to around 30% to spur private development in 11 districts, including northern Seoul, where projects have lagged because of relatively weak profitability.
The city said on the 3rd it will introduce the "win-win development preliminary negotiation+" system, which offers tailored incentives for areas with poor development conditions.
The target areas are districts where development has been slow due to relatively low profitability among those with official land prices at 60% or less of Seoul's average. Districts that meet this condition are Gangseo, Gangbuk, Guro, Geumcheon, Dobong, Seodaemun, Seongbuk, Eunpyeong, Jungnang, Nowon, and Dongdaemun, totaling 11.
Seoul will apply a tailored negotiation framework that reflects local characteristics to these areas. It will ease the public contribution rate from the current 60% to 30%. The residential share will be set through negotiations, taking into account location characteristics, development conditions, and public interest.
The aim is to reduce the public contribution burden and allow flexible application of the residential share to improve profitability and draw private investment. While Seoul has pursued narrowing regional development gaps through measures such as balanced development preliminary negotiations, some areas failed to secure profitability due to standards on the residential share, making it hard to attract private investment.
This system is the first case of institutionalizing the core pledge of the ninth popularly elected administration, "super-strong incentives to improve housing in northern Seoul."
Seoul will then identify promising candidate sites and push ahead with pilot projects.
Kim Yong-hak, Seoul's director of future space planning, said, "The win-win development preliminary negotiation+ is a system that specifically carries out the core pledge of the ninth popularly elected administration to provide super-strong incentives to improve housing in northern Seoul," adding, "We will provide reasonable incentives to areas where development was delayed due to a lack of profitability to revitalize private investment and accelerate balanced development across the city."