The Ministry of Land, Infrastructure and Transport (MOLIT) of South Korea has announced a major expansion of urban regeneration projects for 2024. These initiatives aim to transform declining local cities into vibrant spaces with improved housing, commercial areas, and public facilities. The policy is designed to address urban decay and promote balanced national development by investing in diverse urban renewal programs. Four main types of projects are supported: Urban Regeneration Innovation Districts, Regional Specialization Regeneration, Certified Projects, and Old Residential Area Maintenance Support. The government seeks to enhance the quality of life and economic vitality in affected regions.
Local governments are the primary beneficiaries of these changes, with increased autonomy in budget allocation for most project types except Innovation Districts. Residents in targeted cities will see improvements in their living environments, including new housing, commercial zones, and community spaces. For example, projects like the Suncheon Jeojeon-dong Village Hotel and youth rental housing illustrate the transformation of old properties into modern amenities. Funding levels vary: Innovation Districts can receive up to 25 billion KRW over five years, Regional Specialization up to 15 billion KRW over four years, Certified Projects up to 5 billion KRW over three years, and Old Residential Area Maintenance up to 15 billion KRW over five years or 5 billion KRW over four years for vacant house renewal.
The timeline for project selection has shifted to the first half of 2024, with applications accepted in March and evaluations conducted from April to May. Final selections will be made in June following document reviews, site visits, and presentations. Local governments must consult with the Urban Regeneration Support Organization (HUG) during planning, and pre-consultation is now mandatory. The Ministry will announce detailed guidelines on its website and the Urban Regeneration Information System starting June 6, with a briefing for local governments scheduled for June 11 at the Government Sejong Complex. These changes streamline the process and aim to prevent confusion in project planning.
Frequently asked questions include: What types of projects are eligible for support? All four categories—Innovation Districts, Regional Specialization, Certified Projects, and Old Residential Area Maintenance—are open for new selections in 2024. How much funding is available? Depending on the project type, national funding ranges from 5 billion KRW to 25 billion KRW over three to five years. What is required for application? Local governments must undergo mandatory pre-consultation with HUG and meet specific execution rate criteria. Where can more information be found? Details are published on the MOLIT and Urban Regeneration Information System websites, and inquiries can be made to designated contacts at MOLIT.
South Korea’s urban regeneration policy for 2024 demonstrates a strategic commitment to balanced regional development and local empowerment. By increasing budget autonomy for local governments and streamlining the project selection process, the Ministry of Land, Infrastructure and Transport aims to foster more effective and tailored urban renewal initiatives. The mandatory pre-consultation and clear funding structures are likely to enhance project quality and execution. Overall, these changes should accelerate the transformation of declining cities, improve living standards, and stimulate local economies.