Changes to Seoul City's Promotional Organizations
Installation of Regional Balanced Development Promotion Division
In July, 2002, the department taking charge of the new town project in Seoul was the regional balanced development promotion division, which had been established as a separate organization. At the time of establishment, it consisted of three teams; a regional plan team, a traditional market task force and a regional development project team under the umbrella of the urban planning bureau. Then, it was put under the direct control of the vice mayor in order to carry out the new town project more actively and the housing bureau was designated as an assistant department in order to organize a more effective project promotion system.
Extension and Reform into New Town Project Headquarters
The regional balanced development promotion division was extended and reformed into the new town project headquarters in February, 2004. During that process, the balanced development promotion districts were designated along with the second new town. For its effective business, the regional plan team was reorganized into the promotional district project team. For the effective management of 12 new town districts (second), the new town master team was extended and reorganized into three teams; the general coordination team, the facilities planning team and the plan management team.
Reorganization into Balanced Development Headquarters
Other Organizations
Regional Balanced Development Committee / Urban Renewal Committee
The regional balanced development committee was established in April, 2003 according to the ordinance, in order to deliberate on and consult on matters regarding the policies and projects for balanced development in Seoul City. It gives advice on various matters such as establishing basic plans, designating project districts, establishing renewal plans (designating districts) for each project execution type, making detailed plans for project execution before authorization and determining the target and scope of supporting project costs.
The urban renewal committee was organized in December, 2006 along with the execution of the special law. Along with the roles of the former regional balanced development committee, this committee deals with matters regarding the renewal promotion districts and their promotional plans.
Task Force by Autonomous Districts (Gu)
Within the autonomous districts (Gu), the organizations in charge of projects, including a balanced development promotion division, a balanced development promotion group, a balanced development project division, a new town project group and a new town project team, were set up to play various roles; supporting Seoul City's planning, giving assistance with data for new town plans, discussing the projects with residents and collecting their opinions, and establishing basic development plans.
Master Planner (MP)
The Master Architect (MA)/Master Planner (MP) method involves authorizing one architect to maintain the systematic design of outdoor spaces in carrying out a large-scale project with different owners and development periods within a development area, and entrust him/her with the role of coordinating different designs, thus drawing an overall plan for development of the entire land. The MA/MP method in the new town project will play a role of a coordinator and controller that integrates and coordinates various opinions and interests together.
- Consisting of experts in various fields such as urban planning, urban design, construction, landscaping, transportation and business feasibility
- Consisting of general MA/MP, advisory MA/MP, public officials, etc.
- Determining various plan-related alternatives and decisions in the MA/MP conference
- Participating in the whole process of establishing a basic direction for plans, a development direction and a basic development plan
- Playing a role in integrating and coordinating a number of project districts
Designator and Agent: SH Corporation
SH Corporation was designated as a business operator for new town project by the Seoul government and has carried out the establishment and execution of a new town plan. It was designated in that its organizational characteristics are suitable to promptly deal with the whole process of the project including compensation, planning, design, construction and sale. With regard to the new town project, the organizational system of SH Corporation has a new town project office under the urban restoration headquarters, and also has sub six teams including a planning design team, a civil engineering team, construction teams 1 and 2, a mechanical team and an electrical communication team. It takes charge of various jobs; designating new town districts, designating and notifying project operators, approving and notifying new town project development/execution plans, establishing civil engineering plans, approving/permitting their execution, ordering and supervising construction, establishing basic plans, and doing basic/detailed designs.
Step-by-Step Special Organizations for New Town Development Basic Plans
There are also special organizations for each step in establishing basic plans for new town development, including a new town development promotion council, a working-level new town promotion team, and a development advisory committee.
Related Institutional Changes
Enactment of Ordinance on Regional Balanced Development Support in Seoul
The Seoul government has prepared its administrative and financial assistance plans for regional balanced development by designating the three districts of Eunpyeong, Gireum and Wangsimni as pilot districts in October, 2002 and enacting the "ordinance on regional balanced development support in Seoul" in March, 2003. The corresponding ordinance was designed to make a great contribution to urban development and provide better quality of living by setting a direction for regional balanced development policies, standardizing its execution procedure and method for efficient promotion of the regional balanced projects, and institutionalizing administrative and financial assistances.
It made an attempt to connect the pilot new town districts with its upper plans, related urban plans and other development projects and to pursue eco-friendly and sustainable development, considering the characteristics of Gangbuk region, and laid down the principle for creating a harmonious space with the coexistence of people from various income brackets and generations in order to diversify rental houses and raise the resettlement of original residents.
Proposal of New Town Special Act and Enactment of Special Act on Urban Renewal Promotion
The pilot and second new town projects were based on the "ordinance on regional balanced development support in Seoul." Then, the Seoul government prepared a special new town act (bill) and submitted its proposal to the central government in summer, 2005 in order to solve the problem of having no legal grounds for new town projects and to promote a more efficient and comprehensive renewal project for worn-out residential areas.
With this proposal as momentum, the bill was renamed during the discussion in the National Assembly session, and the "special act on urban renewal promotion" was enacted in December, 2005 and became the legal basis for the new town project in Seoul.
Enactment of Special Ordinance on Urban Renewal Promotion in Seoul
According to the enactment and proclamation of the Special Act on Urban Renewal Promotion and the enforcement decree of the same law, a special ordinance on urban renewal promotion in Seoul was enacted to specify the delegated matters by law and others necessary for their execution. This ordinance includes the contents of the criteria for designating new town districts or balanced development promotion districts, establishing plans, project execution methods and project financing.
<Figure 6> New Town Project's Institutional Changes and Progress History
Financing
Urban Renewal Special Accounting
The new town budget was originally raised through urban development special accounting according to the "ordinance on regional balanced development support" for the pilot and second new town districts. Starting with the third new town district, the budget was secured through urban renewal special accounting according to the "special ordinance on urban renewal promotion" enacted in 2007.
The financial resources of the urban development special accounting consist of 11 items including the money transferred from general accounting and the government subsidy, which can be used for the new town project as well as others. So, it cannot be considered a stable resource for the new town project.
On the other hand, the tax revenues of urban renewal special accounting consist of the money transferred from general accounting, government subsidy, municipal-reverted congestion charges, urban planning tax of 30%, etc. It is meaningful as a stable resource based on the law for supporting a renewal promotion project.
The national treasury for new town project is just 1.2 billion won, making up 0.6% of the entire budget of urban renewal special accounting. So, it fails to draw much support from the central government and the most of the budget was appropriated from the Seoul government's own budget (money transferred from general accounting and congestion charges).
The new town project budget is generally supported for establishing a basic development plan and installing the infrastructure. About 80% (110 billion won) of the execution budget was supported specifically for installing the infrastructure in 2007 when renewal special accounting was first introduced.
<Table 1> Status of Tax Revenues on New Town Project (Unit: 1 million KRW)
Classification |
1st Session |
2nd Session |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
Urban Development Special Accounting |
24,800 |
128,400 |
131,459 |
35,561 |
- |
- |
- |
- |
- |
Urban Renewal Special Accounting |
- |
- |
- |
- |
202,200 |
290,400 |
181,310 |
248,060 |
149,000 |
Source: Written settlement of accounts concerning revenue and expenditure (2003-2011) |
<Figure 7> New Town Project's Budget Execution Details