After the Seoul city government eased the floor area ratio for multifamily housing in quasi-industrial zones to up to 400%, it has been accelerating the supply of about 27,000 dwellings across 32 related renewal projects. As a representative application, the Yangpyeong Shindonga apartment complex in Yeongdeungpo District increased its planned reconstruction units by 199, from 563 to 762. The city said it will manage the schedule with a goal of starting construction in Oct. 2029 by shortening the project procedures by one year.
On the 16th, Seoul Mayor Oh Se-hoon visited the Yangpyeong Shindonga reconstruction site in Yangpyeong-dong 1-ga, Yeongdeungpo District, to check the project's progress and hear opinions from association members and nearby renewal project officials. The visit aimed to examine the actual impact of the quasi-industrial zone system improvements under the "southwestern region grand overhaul" released in 2024 on renewal projects.
Following the announcement of the "southwestern region grand overhaul," the Seoul city government revised the relevant standards to allow application of a floor area ratio of up to 400% for multifamily housing when promoting reconstruction or redevelopment in quasi-industrial zones that have already been converted to residential areas. Quasi-industrial zones were once concentrated with factories and manufacturing facilities, but as the industrial structure changed, multifamily housing and Knowledge Industry Complex facilities increased. However, due to low floor area ratios, it was difficult to secure sufficient general pre-sale supply, leading to many cases of long delays in renewal projects.
Completed in 1982, Yangpyeong Shindonga established a reconstruction promotion committee in 2009 and was designated as a renewal zone in 2011, but the project did not gain momentum due to a lack of profitability. After the city's system improvements, it passed the integrated review for renewal projects in March this year, which jointly examines urban planning, architecture, landscape, traffic, and education. Once reconstruction is completed, it will be transformed into a complex with 4 underground floors and up to 49 above-ground floors, totaling 762 units.
Before applying the 400% floor area ratio, the planned reconstruction volume was 563 units. This is not the current complex size but the planned reconstruction volume calculated on the premise of the former floor area ratio. With the relaxed ratio adding 199 units, general pre-sale volume and project revenue are also expected to increase. The city estimated that the additional burden per association member household would decrease by about 1 billion won.
The Seoul city government also decided to reduce the period from project implementation plan approval to groundbreaking from the current five years to four. By applying the standard processing time system of the Fast-Track Integrated Planning 2.0, it plans to cut four months each at the stages of project implementation plan approval, management and disposition plan approval, and relocation and demolition. The second vice mayor for administration will manage overall project progress, and the city's lead department will directly coordinate with related agencies. The Seoul Housing and Urban Development Corporation (SH) will also conduct preliminary feasibility verification early.
In quasi-industrial zones, 32 sites are currently pushing renewal and development projects, totaling about 27,000 units. Twenty-four reconstruction and redevelopment projects, including Munrae Gukwha Apartments, Yangpyeong Shindonga, Seongsu District 1, and Samhwan Dobong Apartments, will supply 19,122 units. Eight urban renewal-type redevelopment and district unit plan projects, including Yangpyeong District 13, Munrae-dong 4-ga, the former PangRim site, and the Kyohaksa site, have planned volumes of 8,053 units.
At the roundtable that day, residents positively assessed the city's floor area ratio easing and project support, and proposed reviewing the ratio of rental housing to reduce the burden from rising construction costs and further shortening the renewal plan decision and review procedures.
Mayor Oh, regarding Policy Chief Kim Yong-beom of the Presidential Office recently noting the need to utilize quasi-industrial zones in Yeongdeungpo and Guro, said, "It doesn't seem like he knew exactly what the Seoul city government is doing." He said, "Since 2024, the Seoul city government has been pursuing system improvements to colocate industrial, residential, and leisure functions in quasi-industrial zones."
Residents demanded that the ratio of rental housing be adjusted to reduce the burden from rising construction costs and that the renewal plan decision and review procedures be further shortened. Mayor Oh said, "It's difficult to give an immediate answer because we must consider the law, the local government ordinance, and fairness with other business sites," adding, "We will continue to work to lower residents' burdens and ensure the project proceeds smoothly."