[뉴스분석]2·4 Countermeasures Finding a way to redevelop and rebuild Incheon old city center

graphic. 2021.2.7 / Reporter Sung Ok-hee [email protected]

Due to low business value and severe resident conflict
44 out of 86 districts
When two-thirds of the members agree
Expectations such as securing transparency and rapid progress

Interested in whether the government’s’public-led 3080+ metropolitan area housing supply remarkable expansion plan’ (2 and 4 measures), which even created the expression’supply shock’, can revitalize the housing redevelopment and reconstruction projects stagnant throughout the old downtown of Incheon. This is being collected.

There are many analyzes that the Incheon area deserves to actively introduce’public direct implementation maintenance projects’ such as redevelopment and reconstruction, given the quantity of supply and various conditions of the 2nd and 4th measures. According to the government’s plan, the number of public maintenance projects in Incheon and Gyeonggi is 21,000 households, accounting for the highest proportion except for the expansion of public housing sites such as new cities.

In particular, as of the end of last month, 86 areas for maintenance projects such as private-led housing redevelopment and reconstruction, which were intensively promoted between 2006 and 2008, reached Incheon.

Among them, 44 areas, or more than half of them, are still in the stage before the approval of the’management and disposition plan’, which is visible as the start of construction as the size of the member’s contributions has been confirmed. Most of them are in poor residential environments, and since they have not been able to reach them for more than 15 years from the time of implementation of the project, they are considered as an obstacle to the regeneration of the old city center of Incheon.

The biggest factors that stagnated in the redevelopment and reconstruction projects in Incheon were’lack of business feasibility’ and’conflict between residents’.

An official from a redevelopment association in Incheon said, “There are complex interests among members, and there are many areas where the project seldom proceeds due to the sway of the project operator (cooperative).” “He said.

The implementers of publicly implemented maintenance projects are public companies such as Korea Land and Housing Corporation (LH) and Incheon City Corporation (iH), not existing private associations. In the redevelopment/reconstruction association, where the conflict between residents is severe, there may be a movement to secure transparency and increase the speed by entrusting the implementation to the public.

In this measure, if the cooperative receives more than two-thirds of its members within one year, the implementer is converted to the public and the existing cooperative is dissolved, but the government compensates the sunk costs and the construction company succeeds. For maintenance projects conducted by the public, the use area is raised by one step and the legal maximum floor area ratio is increased by 120%.

An analysis suggests that the’incentives’ such as easing donations and exemption from the excess profit burden on reconstruction can be strengthened to solve the business feasibility problem. In addition, in a situation where the contractor leads the redevelopment and reconstruction in reality, the project can be resilient if simple construction is entrusted to the contractor and the public is in charge of pre-sale.

However, even if this countermeasure is introduced for redevelopment and reconstruction in the Incheon area, there is a prospect that the supply of supply may not be as large as expected as the transition to public implementation will proceed sequentially.

An official from Incheon City said, “We need to come up with more concrete measures, but it is considered worthwhile to introduce them to the redevelopment and reconstruction areas where there is severe civil-private conflict.” → Related article 3 pages ([뉴스분석]2·4 measures public implementation and maintenance project’anti expectations and half concerns’)

/ Reporter Park Kyung-ho [email protected]