Source: Ministry of Construction & Transportation , 2007, 2007 Housing Business Manual p.160, Housing Seoul, 2008, Internal Data

 

In 1980, the government initiated a plan to construct 5 million housing units and established the Housing Site Development Promotion Act (enacted in December 1980) as part of its effort to secure more land. The establishment of this Act enabled a project entity to purchase large amounts of land on the outskirts of the major cities at affordable prices and rapidly promote projects within a short period of time. Before the enactment of the Act, a land readjustment project had been used to secure land lots. However, the project was effective for small land parcels, but unsuitable for securing large housing sites for collective construction of high-density apartment complexes due to the increase in housing construction costs caused by higher land prices.

The Housing Site Development Promotion Act (hereinafter, the Housing Act) also stipulates the urban planning functions of the Urban Planning Bureau. The Act enabled the pre-designation and eventual large-scale takeover of affordable green zones or farmland. It also allowed for the conversion of those areas to residential areas in the development project-planning phase; and further allowed the acquisition of land at reasonable prices, thereby accelerating development. It is consistent with public development in that a public entity can purchase the entire land for development so as to keep the development gains out of private hands and in the public sector, where they will be reinvested in future housing site development projects.

With the establishment of the Housing Act, housing site development under the Housing Construction Promotion Act (hereinafter, the Promotion Act), which was actively promoted in the late 1970s, was implemented on small-scale development projects, while large-scale development was conducted in a way that individual complexes were developed under the Promotion Act after a housing site was developed according to the Housing Act. Furthermore, with the establishment of the Housing Act, the government designated approximately 3,306 m2 in thirty cities as the first housing sites. In 1986, the government prohibited adjustment projects in the Metropolitan area and six major cities, making public development projects under the Housing Act the main method of supplying new housing sites. This sparked active promotion of the Housing Act along with the Two Million Housing Unit Construction Plan adopted by the government in 1988. Between the 1980s and 1990s, the development of large-scale housing projects was undertaken in areas such as Gaepo, Godeok, Mokdong, Sanggye, Junggye, and Suseo, and in five new towns in the Metropolitan area, where individual residential complexes were built under the Promotion Act after the implementation of housing site development programs for which the Housing Act was applicable.

In the late 1980s, public development was actively promoted thanks to the Housing Act. In 1988, the government set up offices of regional corporations in Seoul and Daegu and public development agencies in cities and provinces across the nation, in a bid to expand public development by local governments so that the governments could earn development gains and expand local finance. The SMG and local governments began to participate in large-scale public housing site development projects, which hitherto had been led primarily by housing corporations and land corporations.

Gaepo District

In response to the Five-million Housing Unit Construction Plan initiated by the government, the entire areas of Gaepo-dong and Irwon-dong in Seoul were designated as districts for project implementation in order to supply affordable housing sites to tackle the housing shortage. These areas were chosen to absorb the increase in population expected with the development of Gangnam in the mid-1970s. The Gaepo District encompasses Gaepo-dong and Irwon-dong in Gangnam-gu, Seoul, i.e. an area of 1,693,559 m². The area is located 13 km southeast of downtown Seoul, 12 km east of the center of the large residential areas in Yeongdeungpo, and 5 km northeast of Gwacheon. On April 11, 1981, Gaepo was designated as a district for housing site development. The development was commenced on December 24, 1981 and completed in December 1984. The development master plan included detached housing (20%) and multi-family housing (80%) designed to accommodate 23,309 people or 5,287 households. A survey on land compensation was conducted from April to September 1981 in order to reach an agreement on compensation. The cost of the project totaled KRW 37.242 billion, including land (66.7%) and site development costs (33.3%).

Godeok District

Godeok was designated as a district for housing site development in April 1981, with construction beginning on May 3, 1982 and finishing on December 30, 1985. The total project area was 3,148,450 m2, with costs totaling KRW 81.294 billion (land costs: KRW 49.359 billion; site development costs: KRW 31.935 billion). The Godeok district encompassed all of Godeok-dong and Myeongil-dong in Gangdong-gu, Seoul, located about 1.6 km east of the downtown area and about 2 km from the center of Cheonho-dong. The composition of the housing site in the Godeok district was intended to accommodate 75,250 people, or 18,820 households. The excellent clinical services available in Myeongil Park (in central and outskirt development prohibited zones) were utilized to create suburban-type housing complexes. Residential areas (55.6%) were properly modeled with multi-family, detached, and tenement housing units. The size of a detached house was based on the requirement of 231.4 m2 per parcel. Commercial areas (3.4%) were established in the center of the district, and the public corporation planned the first urban design for the commercial areas to ensure the proper placement of business facilities. Land for public use accounted for 33%. Sufficient land was set aside for educational facilities, such as six elementary schools, four middle schools, and six high schools to serve 75,000 persons. The daily water supply available amounted to 400 liters per person. The intercepting pipelines were installed at the Tancheon Sewage Treatment Plant to treat the sewage, for which the SMG covered KRW 11 billion (16%) of the cost.

Junggye District

The Junggye district was designated for housing site development on April 10, 1985, under the supervision of the Korea Land Corporation. On October 29, 1985, the Corporation initiated a land compensation program after a development approval was obtained on April 2, 1986, and construction was completed on June 29, 1992. The total area of the project was 1,597,675 m², with costs totaling KRW 140.369 billion. The Junggye district encompasses Junggye-dong, Hagye-dong, and Gongneung-dong in Dobong-gu, Seoul. Most of the land owners lived in other regions. More than 95% of the residents were the urban poor, who worked at the adjacent brickyards and lived in greenhouses and board-framed houses. Despite the poor living conditions, local residents actively conducted autonomous activities, establishing a countermeasure committee and a resident representative group. The committee served as an important basis for organizing the Multi-family Housing Association, a part of the Junggye District Relocation Plan.

With a design to accommodate 99,460 people, the plan earmarked 866,849 m² (54.4%) of the available land for housing, 33,462 m² (2.1%) for commercial purposes, and 692,307 m² (43.5%) for public use. The plan did not, however, include land for single-detached housing. A joint relocation measure was implemented through close coordination with the nearby Korea National Housing Corporation and the Sanggye district, which became the first district where land development was implemented by both public and private entities. It was also the first public district to receive multi-housing land because it was impossible to provide the single-unit houses as part of migration measures as the development was implemented only in public districts.

Procedure

A housing site development project is proposed by a project operator such as the government, local government agencies, the Korea Land Corporation, the Korea National Housing Corporation, or regional corporations. Then Minister of Land, Transport & Maritime Affairs designates a preliminary housing development district, pursuant to a review by the Housing Policy Committee. A public announcement of the proposal and gathering the opinions of the relevant local government agency and residents, and consultations between the Central Administration Organization and the Ministry of Land, Transport & Maritime Affairs should be preceded. Since 2000, whenever a specific area is designated or rejected as an estimated housing development district, the area is deemed to be either designated or rejected as a Type 1 District-unit Planning Area in accordance with Article 51 of the National Land Planning & Utilization Act. When a district is designated for development, land will be supplied according to the housing site development plans, implementation plans, and housing site supply plans. While mayors and governors have the power to approve proposals, only the Ministry of Land, Transport & Maritime Affairs has the authority to approve the designation of the district larger than 200,000 m² and housing land development of an area larger than 330,000 m².  

 <Figure 2> Procedure for Housing Site Development in Seoul

Housing Site Development Processing Standard

The main purpose of housing site development projects is to supply land for mass housing in response to the increased demand for housing resulting from rapid urbanization. Housing site development plans are established in accordance with the Housing Site Development Guidelines. These guidelines set standards for the distribution of housing construction land, the housing allocation for each lot size for multi-family housing, the method of supplying housing sites, and the supply prices.

<Table 3> Ratios for Allocation of Housing Construction Land

Note:  For no. 1, 2 & 3 above, the entity with authority to approve housing site development projects may adjust the allocation ratio within a 20% range based on regional conditions
Source: Article 13, Housing Site Development Guidelines

A land lot for construction of multi-family housing is chosen according to the size needed for the number of families, unit sizes, the number of floors to be built, and the floor area ratio (FAR) for each household. Areas designated for the construction of single detached housing should be developed in parcel units of 165~660 m² per plot of land. In metropolitan areas, apartment complexes should be constructed on at least 60% of development sites, with a maximum of 20% for tenement/multi-household buildings, and a maximum of 20% for single detached housing. Within Seoul, land for single detached housing is rarely provided.

In September 1989, land was provided to supply 20-50% of multi-family housing land for public lease housing construction. Houses for permanent lease and 50-year lease were mainly constructed from 1989 to 1990, and for 5-year public lease from 1990 to 2003.

<Table 4> Supply Standard for Rental Housing Construction Land

Source: Korea Land Corporation, 2007, Housing Site Development Guidelines

The size of houses was regulated: a house of 60m² or smaller should be more than 30% of the total houses to be constructed, and a house of 85m²or smaller should be more than 60%, and a house larger than 85m² should be less than 40%. However, the entity authorized to approve housing site development projects may adjust these percentages within a 10% range when deemed necessary based on the prevailing regional conditions.

<Table 5> Allocation Percentage for Dwelling Scale of Multi-family Housing Construction Land

Note: Starting from 1998, the entity authorized to approve housing site development projects may adjust the percentages within a 10% range after considering the regional conditions.
Source: Article 13 of Housing Site Development Guidelines

Competitive bidding prices vary within 60% of the construction costs in accordance with the usage of housing site supply prices. In Seoul and the metropolitan area, the price of the land lot for public lease housing of 85 m² or smaller is 60-85% of the construction cost; a building plot for housing units of 60 m² or smaller is provided at 95% of the construction cost; public land is provided at 100% of the construction cost; and housing construction land in lots of 60-85 m² is provided at 110% of the construction cost. Commercial land is provided according to competitive bids, other sites according to appraisals.

<Table 6> Housing Land Supply According to Application & Supply Price (Based on End Users)

Note 1. If a large housing site project (at least 3.3 million m²) is developed as new town construction, some of the aforementioned standard may be adjusted in special cases.
Note 2. Electricity, toxin, and gas may be provided at construction cost if the receiver is subject to the Framework Act on Management of Government-Invested Institutions.
Source: Article 13, Housing Site Development Guidelines

Following the revision of the National Land Planning & Utilization Act in 2000, the housing development sites and projects was changed to be managed under a district-unit plan. This revision requires that districts designated for housing development projects include district-unit plans upon approval of the project implementation plan, and also provides details related to the Type 1 District-unit Plan and plans for implementation.

The development of housing site projects was mainly focused on apartment complexes; hence, it is necessary to prepare individual reconstruction and remodeling projects through a district-unit plan rather than through the Redevelopment Master Plan of Urban Central and Residential Areas. A floor area ratio for development requires to be continuously managed after the project is completed, to prevent the overloading of infrastructure at the initial planning phase.

Overview

Appointment of Estimated Housing Site Development Districts

Characteristics of the Mok-dong Housing Site Development Plan

The Mok-dong district was a central part of the Gangseo-gu region. The project in this area was modeled after the linear central axis planning in the Hook New Town Proposal (1961), with the aim of mitigating the housing shortage and stabilizing housing prices, while using the development profits for the public development of high-density residential complexes, reinvesting the collected funds, and expanding urban infrastructure.

Planning Characteristics: Composition of Linear & Overlapping Living Zones

The Mok-dong district is a “bed town” with commercial districts at its center. The living zones are classified into three main districts, six sub-districts, and twenty divisions via a linear arrangement of the commercial areas. The plan was intended to provide opportunities to select various services and satisfy the needs of the residents by overlapping high-, medium- and low-quality living zones on the central axis of a linear alignment.

<Table 8> Classification of the Mok-dong District Living Zones

Multi-family Housing Complex: Low-density focused on medium and large housing

The residential area of the Mok-dong district consists of fourteen districts, with the number of households accommodated in each district 1,902 households on average, but the number varying from 1,300 to 3,100 households. The medium to large houses were provided mainly for middle-class residents. In terms of distribution by size, units smaller than 60 m² account for 22.5%, units smaller than 85 m², 35.8%, and units smaller than 85 m², 41.7%. To sum, units larger than 85m2 account for 77.5% of the total houses. Specifically, units larger than 85 m² account for 50% of the houses in Apartment Complex 1, 2, 3, 5, 9, and 13.

 

<Table 9> Mok-dong District Housing Unit Sizes

 

Area	Total	Maximum of 60 m²	Maximum of 85 m²	Above 85 m²
Complex1	1,882 (100.0)	240 (12.8)	502 (26.7)	1,140 (60.6)
Complex 2	1,640 (100.0)	-	400 (24.4)	1,240 (75.6)
Complex 3	1,588 (100.0)	-	646 (40.7)	942 (59.3)
Complex 4	1,382 (100.0)	594 (43.0)	240 (17.4)	548 (39.7)
Complex 5	1,848 (100.0)	-	525 (28.4)	1,323 (71.6)
Complex 6	1,362 (100.0)	594 (43.6)	240 (17.6)	528 (38.0)
Complex 7	2,550 (100.0)	720 (28.2)	1,200 (47.1)	630 (24.7)
Complex 8	1,352 (100.0)	834 (61.7)	278 (20.6)	240 (17.8)
Complex 9	2,030 (100.0)	240 (11.8)	621 (30.6)	1,169 (57.6)
Complex 10	2,160 (100.0)	570 (26.4)	584 (27.0)	1,006 (46.7)
Complex 11	1,595 (100.0)	760 (47.6)	835 (52.4)	-
Complex 12	1,860 (100.0)	470 (25.3)	1,390 (74.7)	-
Complex 13	2,280 (100.0)	240 (10.5)	804 (35.3)	1,236 (54.2)
Complex 14	3,100 (100.0)	720 (23.2)	1,270 (41.0)	1,110 (35.8)
Total	26,629 (100.0)	5,982 (22.5)	9,535 (35.8)	11.112 (41.7)

---

Note: Lease housing overlap with housing sizes due to supply amount of each complex.

Source: Seoul City, 1991, An Evaluation of Mok-dong Public Development, p.940-941
 

Apartment buildings were constructed sequentially from 1985 to 1988. All of the buildings standing today are older than twenty years. The buildings were allowed to be reconstructed from 2013, but there was no demand. The average floor area ratio is 143%, varying by complex from 117.2 to 164.5%. The FAR by complex is within 120% (except Complex 8, 13, and 14), and the average density per household is 130.7 units per hectare, which is extremely low.

The number of available parking spaces per household is 0.6, which indicates a serious parking shortage in the district

<Table 10> Mok-dong District Complexes: Vehicles & Parking Spaces Per Household

	Households (Parcel + Lease)	Parking Spaces	Parking Spaces per Household
Complex 1	1,882	1,104	0.6
Complex 2	1,640	1,306	0.8
Complex 3	1,588	1,199	0.8
Complex 4	1,382	757	0.5
Complex 5	1,848	1,444	0.8
Complex 6	1,362	783	0.6
Complex 7	2,550 (2,130 +420)	1,251	0.5
Complex 8	1,352	617	0.5
Complex 9	2,030	1,466	0.7
Complex 10	2,160 (1,560+600)	1,397	0.6
Complex 11	1,595	646	0.4
Complex 12	1,860	873	0.5
Complex 13	2,280	1,625	0.7
Complex 14	3,100 (810+2,290)	1,879	0.6
Total	26,629 (18,512+8,117)	16,347	0.66

---

Note: Vehicles per household = Available parking spaces/ Number of households
Source: Seoul City, 1991, An Evaluation of Mok-dong Public Development, p.579
 

Central Commercial Area: Large-scale parcel & Postponement of Sales Causes Delay in Revitalization

All of the Mok-dong district’s central facilities are located on the central axis, and the district center of the aggregated neighborhood is nearby the south and north of the axis, while commercial business facilities are located in the center. General administration, public and cultural welfare facilities are located between the complexes. In terms of the central commercial area, business facilities account for 31.3% of the land lot, multi-purpose buildings, 29.0%, and cultural facilities, 8.9%. However, multi-purpose buildings account for 46.9% in terms of the total floor area, most of which were constructed after the Asian financial crisis in the late 1990s. Despite the claim that the Mok-dong district is a major neighborhood in the southwest area of Seoul, the number of businesses in the Mok-dong district is extremely lower than the city’s average. This is because the central commercial land which could serve 14.0 businesses and 89.0 persons per 10,000 m² was simply sold.

 <Table 11> Mok-dong District: Functions & Facilities by Central Commercial Block

 

Source: Seoul City, 1991, An Evaluation of Mok-dong Public Development, p.68

 

Transportation: Worsening stagnation of central roads due to increasing traffic volumes

The road network in the Mok-dong district consists of three arterial roads and outer ring roads that pass through the inside of the district, as well as an internal beltway. One of the most notable features of the road network is the one-way ring road of the central axis. This one-way feature allows left turns without the need for traffic signals, while signal interlocking reduces the straight traffic travel time. In terms of road design, intersections at the local distribution roads and underpasses at Jemulpo-ro and Omok-ro (Mok-dong’s central axis and arterial roads) particularly stand out.

Measures are needed to improve the traffic flow. There is an increase in straight traffic from the district’s arterial roads to the Mok-dong central axis in anticipation of further development and the concentration of traffic volume around the central axis road (the Mok-dong East and West roads) and Jemulpo-ro, all of which penetrate the Mok-dong district. On Jemulpo-ro, traffic is concentrated from Yeouido and Downtown Seoul, and from Incheon and Bucheon, while congestion occurs on the Mok-dong central axis road due to straight traffic from the outer areas connected to Sinwol-ro and Sinjeong-ro.

<Figure 3> Mok-dong District: Road Network & Traffic Volume

 

• The Ministry of Construction & Transportation, 2007, 2007 Housing Business Manual, p.160, Housing Seoul, 2008, Internal Data
• The Ministry of Land, Infrastructure & Transport, Department of New Town Housing Site Development, 2014, Housing Site Development Guidelines Article 13
• Kim Jung-ho and Bae Soon-seok el al., 1994, “A Study on the Development Strategy of the Housing Development and Supply System”, Korea National Housing Corporation
• Korea National Housing Corporation, 1992, 30 year anniversary of Korea National Housing Corporation book
• Seoul City, 1991, “An Evaluation of Mok-dong Public Development”
• Urban Planning Bureau of Seoul, 2008, Internal Data
• Seoul City, 1991, “An Evaluation of Mok-dong Public Development”
• The Seoul Institute, 2009, “Analysis & Evaluation of Large Development Projects in Seoul”
• Sohn Jung-mok, 2000, “Construction of Five Million Housing Units & Mok-dong New Town Development”,「The Territory」, Korea Research Institute for Human Settlements
• Won Dong-il, Ahn Hyung-soon, Kang Jun-mo, 2005, “A Comparative Study on the Changes in Land Policy & Residential Development Systems of South Korea and China”, Korea Planners Association, 2005 Regular Journal (11. 4~5) Sourcebook p.432
• Lim Suh-hwan, 1995, Development & Issues in Housing Site Development Policy, Focused on the 1970s and 1980s: Seeking New Space & Environmental Theory, Hanwool
• Korea Land Corporation, 2007, Housing Development Manual
• Hong In-oak, 1987, “Significance & Evaluation of Residential Development Process through Public Development: A Case Study of Mok-dong New Town, Master's Thesis for Seoul National University