Korea to Mandate Mixed-Use Redevelopment Reviews for Aging Government Buildings

The Ministry of Land, Infrastructure and Transport has conducted a comprehensive survey of all local governments and ministries nationwide to gauge interest in mixed-use redevelopment projects for aging public buildings.

The survey follows the government's pledge to supply 28,000 housing units by 2030 through redevelopment of aging government buildings and state-owned land. However, concerns are mounting that the supply target may be difficult to achieve due to limited precedents, construction cost burdens, and relocation issues during construction periods.

According to the ministry on Wednesday, the survey covered all aging government buildings nationwide, with questionnaires asking about completion year, interest in mixed-use development, and potential obstacles. "We conducted the comprehensive survey to identify project sites," a ministry official said. "We will work to meet our goal of supplying 28,000 units by 2030."

Data from the Architecture & Urban Research Institute shows that public buildings more than 30 years old numbered 52,604 as of 2020. Given that Seoul accounts for 5.5 percent of all public buildings nationwide, thousands of aging government buildings are estimated to exist in the capital alone.

Local governments have raised concerns about the initiative. "There is insufficient information about how construction costs will be shared and how relocations will be handled during construction," an official from one local government said. "This was also pursued under the Moon Jae-in administration, but it's burdensome given how hard it is to find completed examples."

The mixed-use redevelopment program launched under the Moon administration in 2017 initially selected 34 candidate sites, but only two had completed move-ins as of the first half of this year.

Another factor slowing progress is that building-owning agencies have demanded excessive shares of development profits. "Agencies owning the buildings often make unreasonable demands during development, making it difficult for projects to advance," a government official said. "Local residents' opposition to public housing has also turned local governments, which hold permit authority, negative on the projects."

Presidential Office Policy Chief Kim Yong-beom has stepped in to personally oversee the initiative amid interministry barriers. In a media interview, Kim said, "I'm telling ministers, 'We'll find you alternative sites and provide budget support, so please give up your land.' There are complexes of 5,000 to 10,000 units, and even gathering 1,000 units at a time adds up."

The ministry is working with Korea Land and Housing Corporation (LH) to enact special legislation that would mandate reviews for mixed-use development of aging public buildings. Given that many state-owned land and aging building projects have been blocked by local government opposition, the legislation is intended to give the central government direct permit authority to complete projects.

"The special law is also considering incentives for local residents and governments," a ministry official said. "This could include building facilities preferred by local residents in the mixed-use developments and giving local government heads authority to select public rental housing tenants."