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

In 1980, the government initiated the 5 Million-Housing Unit Construction Plan and established the Housing Site Development Promotion Act (enacted in December 1980) as part of its efforts to secure land. The establishment of this act enabled a project entity to purchase large amounts of land surrounding major cities at affordable prices and rapidly promote projects in a short period of time. Previously, land readjustment projects were focused on small parcels, not only advantageous for avoiding collective construction of high-density apartment complexes, but also unsuitable for securing large housing sites due to the increase in housing construction costs caused by increased land prices.

The Housing Site Development Promotion Act (the Housing Act) also entails urban planning functions for the Urban Planning Bureau.  The Act enables pre-designation and whole take-over of affordable green zones or farmland.  It also allowing the changing of those areas to residential areas in the development project-planning phase.  It further allowed the acquisition of land at reasonable prices, thereby quickening development. It is consistent with public development in that a public entity purchases the entire land for development to keep development gains out of private hands and in the public sector, where they will be reinvested in housing site development projects.

With the establishment of the Housing Act, housing site development under the Housing Construction Promotion Act (the Promotion Act), which had been actively promoted in the late 1970s, became small-scale development projects, with large-scale development implemented in a way that develops individual complexes under the Promotion Act after housing site development based on the Housing Act. Furthermore, with the establishment of the Housing Act, the government designated approximately 1,000 pyeong in 30 cities as the first estimated 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 along with the Two Million Housing Unit Construction Plan by the government in 1988. Between the 1980s and 1990s, development of large-scale housing took place in areas such as Gaepo, Godeok, Mokdong, Sanggye, Junggye, Suseo, and five new towns in the Metropolitan area, where individual residential complexes were constructed under the Promotion Act after implementation of housing site development programs with the Housing Act as the applicable Act.

In the late 1980s, the Housing Act actively promoted public development. In 1988, regional corporations were installed in Seoul and Daegu as well as public development agencies in each city and province in the nation to expand public development to local governments, and encourage such actions as donation of development gains to regions and expansion of local finance to facilitate housing site development. With this in mind, Seoul City and local governments began to participate in large-scale public housing site development projects that had been led primarily by housing corporations and land corporations.

Gaepo District
 

In response to the Five-million Housing Unit Construction State Policy initiated by the government, the entire area of Gaepo-dong and Ilwon-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. Gaepo District encompasses Gaepo-dong and Ilwon-dong, Gangnam-gu, Seoul, an area of 1,693,559 m² (512,300 pyeong). The area is located 13 km to the southeast of downtown Seoul, 12 km to the east of the center of the large residential areas in Yeongdeungpo, and 5 km to the northeast of Gwacheon. On April 11, 1981, Gaepo was designated as an estimated housing site development district; development commenced December 24, 1981 and was finished in December 1984. The development master plan included 20% detached housing and 80% multi-family housing to accommodate 23,309 people or 5,287 households. A survey on land compensation was conducted from April to September 1981 to reach an agreement on compensation. The cost of the project was 37.242 billion won, including land (66.7%) and site development costs (33.3%). 

    
Godeok District

Godeok was designated as an estimated housing site development district in April 1981, with construction beginning May 3, 1982 and finishing December 30, 1985. The total area for the project was 3,148,450㎡ and cost 81.294 billion won (49.359 billion won in land costs and 31.935 billion won in site development costs). Godeok district encompassed all of Godeok-dong and Myungil-dong in Gangdong-gu, Seoul, located about 1.6 km to the east of the downtown area and about 2 km from the center of Cheonho-dong. The housing site composition for the Godeok district was intended to accommodate 75,250 people in 18,820 households. The excellent clinical services available in Myungil Park in central and outskirt development prohibited zones were utilized to create suburban-type housing complexes. Residential areas (55.6%) were properly placed with multi-family, detached, and tenement housing units. The size of a detached house was based on 70 pyeong per parcel. Commercial areas (3.4%) were installed in the center of the district, and the public corporation planned the first urban design for commercial areas to ensure the proper placement of business facilities. Land for public use accounted for 33%, which is considered a high proportion. Adequate land for educational facilities provided space for six elementary schools, four middle schools, and six high schools to serve a population of 75,000. The amount of available water supply was 400L per person per day, and intercepting pipelines were installed at Tancheon Sewage Treatment Plant to treat sewage. The Seoul city government covered 11 billion won (16%) of the cost for Tancheon Sewage Treatment Plant to treat the district’s sewage

 
Junggye District
 

Junggye district was designated as an estimated housing site development district on April 10, 1985 with construction supervised by the Korea Land Corporation. On October 29, 1985, the Corporation initiated a land compensation program, which obtained development approval on April 2, 1986 and completed construction on June 29, 1992. The total area of the project was 1,597,675 m², with costs totaling 140.369 billion won. Junggye District encompasses all of the Dobong-gu, Junggye-dong, Hagye-dong, and Gongreung-dong areas in Seoul where people mostly owned land from other regions. More than 95% of the residents are the urban poor working at adjacent brickyards, living in greenhouses and board-framed houses. Despite the poor living conditions, a countermeasure committee and a resident representative group was created by residents who were very active in autonomous activities. This served as an important basis for organizing a Multi-family Housing Association, a part of the Junggye District Relocation Plan.

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

Procedure
 

When 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, the relevant site will be estimated for designation as a housing development district through review by the Housing Policy Committee. A public announcement of the proposal will be made, the opinions of the relevant local government agency and residents considered, and consultation held between the Central Administration Organization and the Ministry of Land, Transport & Maritime Affairs. From 2000, when a specific area is designated or rejected as an estimated housing development district, the area would be deemed 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 would 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 housing site development plans for districts of 200,000 m² or more and districts of 330,000 m² or more. 

 <Figure 2> Procedure for Housing Site Development in Seoul

Housing Site Development Processing Standard
 

 The purpose of housing site development projects is to supply land for mass housing in response to 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 size of lot for multi-family housing, the method of supplying housing sites, and 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

Land to be designated for construction of multi-family housing is chosen according to the size needed for a certain number of families, unit sizes in the pyeong, the number of floors to be built, and the floor area ratio (FAR) for each household. Areas for construction of single detached housing are to be developed in parcel units of 165~660 m² per piece of land. In metropolitan areas, apartment complexes were to be constructed on at least 60% of development sites, 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. Permanent lease housing and 50-year Public Lease Housing were mainly constructed from 1989 to 1990, and 5-year Public Lease Housing 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 housing to be constructed on land for construction of multi-family housing was regulated at 30% or more if it was 60㎡ and under, 60% or more if it was is 85㎡ and under, and under 40% if it was more than 85㎡. However, the entity authorized to approve housing site development projects may adjust these percentages within a 10% range when deemed necessary based on 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 considering regional conditions.
Source: Article 13 of Housing Site Development Guidelines
 

Competitive bid prices vary within 60% of construction costs in accordance with the usage of housing site supply prices. In Seoul and the metropolitan area, land for construction of lease housing provided in lots of 85 m² or less is provided at 60-85% of construction costs, building plots for housing units of 60 m² or below is provided at 95% of construction costs, public land is provided at 100% of construction costs, and housing construction land in lots of 60-85 m² is provided at 110% of construction costs. Commercial land is provided according to competitive bids and 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
 

With the revisions to the National Land Planning & Utilization Act in 2000, management of housing development sites and projects changed to 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 gives details related to the Type 1 District-unit Plan and plans for implementation.

The development of housing site projects were mainly focused on apartment complexes; hence, it is necessary to be prepared for individual reconstruction and remodeling projects through a district-unit plan than that of Redevelopment Master Plan of Urban Central and Residential Areas. Development FAR requires continuous management after project completion to prevent overload of infrastructure at the initial planning phase.

Overview

 
Appointment of Estimated Housing Site Development Districts
 

 
<Table 7> History of Mok-dong District Development

Source: Seoul Special City, 1991, An Evaluation of Mok-dong Public Development, p.881~888

Characteristics of the Mok-dong Housing Site Development Plan
 

Source: 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

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