Seoul to ease regulations to promote residential redevelopment

Jamsil Jugong 5 Danji apartment complex in southern Seoul. The complex, constructed in 1978, is set to be demolished and built as high as 70 stories. [YONHAP]

The Seoul Metropolitan Government on Thursday unveiled proposed changes to the city's basic development plan, which would boost housing supplies by encouraging the redevelopment of apartment complexes and residential areas.

The city government's 2030 basic development plan, which includes raising the floor-area ratio to motivate redevelopment, comes about nine years after the plan was finalized in 2015.

According to the plan, the ratio for class 1 exclusive general residential areas, which include detached houses, will be increased from the current 150 percent to 200 percent. Height limits will also be relaxed, allowing homes to be built up to six stories high instead of four.

The floor-area ratio for semi-industrial areas will also increase from 250 percent to 400 percent. Semi-industrial areas refer to sites that host factories for light industries.

Floor-to-area ratio bonuses — an allowed increase in the amount of space that permits buildings to cover more of the land — will be raised from the current 20 percent to 40 percent.

The categories for these bonuses will also be expanded from 6 to 12. This will now include offering a higher ratio if the redeveloped complexes feature facilities for children and those with disabilities. Such bonuses will also be provided for environmentally friendly construction.

The metropolitan government also said it would incentivize redevelopment where it has proven difficult due to restrictions and resident opposition, such as through financial benefits like tax exemptions.

To encourage redevelopment, the portion of profits from reconstruction collected by the public sector, including the central and local governments, will be reduced from 15 percent to 10 percent. The rate applies when the class of a residential area is increased by one notch, such as from class 3 exclusive general residential areas to semi-industrial areas.

The city's basic development plan will be finalized in September after going through a review by its urban planning committee and residents.

Feedback on the proposal will be open to residents through June 13.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]