The Seoul metropolitan government said on the 23rd that it planned the redevelopment project for the Sewoon District in front of Jongmyo to recoup 216.4 billion won in development gains. It rebutted allegations that the Sewoon District 4 redevelopment is concentrated in a specific private developer and lacks a mechanism to recoup those gains.
That day, the Seoul metropolitan government, through an explanatory document, said, "It is not true that while raising the floor area ratio of the redevelopment zone, we did not create a mechanism to recoup excess gains," and stated accordingly.
The Seoul metropolitan government explained, "In Sewoon District 4, the planned architectural floor area ratio improved about 1.5 times, from 660% to 1,008%, but we also expanded the burden rate for infrastructure from the previous 3% to 16.5%, and we plan to recoup development gains 12 times higher than before."
Specifically, the previous recoupment plan, which was limited to public rental storefronts (total floor area of 4,190 square meters), will be changed to include public rental storefronts (total floor area of 18,539 square meters), the Jongmyo History Museum (total floor area of 8,646 square meters), and the purchase of the Unsangga buildings.
On allegations that profits in the 100 billion won range would go to a specific private developer, the Seoul metropolitan government also said the amount would be only 3.4 billion won. The allegation estimated that private landowners' gains from the increased floor area ratio would be about 390 billion won, but the city said that is not true.
The Seoul metropolitan government said, "The net profit going to private landowners is 11.2 billion won, and the profit allocated to a specific private developer that owns 30% of the current land-and-building owners' land area is estimated at 3.4 billion won."
The Seoul metropolitan government said, "The 'Green Ecological Downtown Re-creation Strategy' is not a policy for a particular project, but was intended to drive change across the entire downtown area into a citizen-centered urban space."