Busan Applies New Public-Led Redevelopment Model to Sinpyeong-2 District

Limits of Private Redevelopment Exposed Pilot Covers 52,000 Square Meters in Sinpyeong-dong City to Cover Consulting Fees, Easing Initial Costs Busan-Style Design Innovation Housing Model Additional Sites to Be Commissioned in Second Half

Society|
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By Cho Won-jin
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Rendering of the Sinpyeong 2 redevelopment project in Saha-gu, Busan. Photo courtesy of Busan Metropolitan City - Seoul Economic Daily Society News from South Korea
Rendering of the Sinpyeong 2 redevelopment project in Saha-gu, Busan. Photo courtesy of Busan Metropolitan City

A new urban redevelopment model in which the public sector participates from the earliest stage will be introduced to a redevelopment project in Sinpyeong-dong, Saha-gu, Busan. The project is expected to serve as the first testing ground for creating a future-oriented residential complex that combines design innovation and public value, moving away from uniform, profitability-driven redevelopment.

The Busan Metropolitan Government said Wednesday that it has completed the selection of a consulting firm to push forward the Sinpyeong-2 redevelopment project under the urban planning proposal request system based on the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions, and has begun establishing the basic direction of the maintenance plan in earnest.

The urban planning proposal request system allows residents to set district boundaries and request a maintenance plan, with the public sector then participating from the early stage to support plan development. The system was introduced to address chronic issues in private-led redevelopment projects, including profitability-focused development, insufficient infrastructure and project delays caused by frequent plan changes.

The city expects that public sector participation from the early stage will secure a balance between profitability and public value, while preemptively preparing an integrated urban and architectural plan that reflects regional characteristics. In particular, the city will cover the consulting fees for establishing the basic direction of the maintenance plan, easing the initial cost burden on residents.

The consulting project covers 52,000 square meters in Sinpyeong-dong, Saha-gu. It will produce a blueprint for the overall maintenance plan, including land use planning, housing construction plans, infrastructure such as roads and parks, and social overhead capital (SOC) facilities.

The city issued the tender notice in March and selected the consulting firm through proposal evaluations. The selected firm reportedly received high marks for its creative architectural planning and urban space design, which differentiate it from existing apartment complexes.

Site plan of the Sinpyeong 2 redevelopment project in Saha-gu, Busan. Photo courtesy of Busan Metropolitan City - Seoul Economic Daily Society News from South Korea
Site plan of the Sinpyeong 2 redevelopment project in Saha-gu, Busan. Photo courtesy of Busan Metropolitan City

The city plans to enhance the completeness of the plan through expert consultations and to accelerate project implementation by actively reflecting opinions from the autonomous district and residents. Based on the consulting results, the city also plans to build an innovative housing model that can be applied to other redevelopment projects in the Busan area.

This aligns with the city's strategy to transform redevelopment projects, which had focused on expanding quantitative supply, into a public-led, design-innovation-driven development model. The aim is to establish a new redevelopment model that simultaneously enhances urban competitiveness and housing quality.

In addition to the Sinpyeong-2 redevelopment project, the city plans to commission additional consulting work in the second half of this year for sites where maintenance planning has been confirmed through the proposal request system.

"Establishing the basic direction under the proposal request system is the most important first step in determining the future of the city," said Bae Sung-taek, head of the city's Housing and Architecture Bureau. "Through innovative public guidelines, we will reduce trial and error for residents and elevate Busan's value and dignity through urban design innovation."

Original reporting by Cho Won-jin for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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