Seoul to supply 27,000 homes in semi-industrial zones through relaxed floor-area rules

The results of Seoul's decision to raise the floor-area ratio cap in semi-industrial zones to 400 percent are beginning to show. Reconstruction and redevelopment projects that had stalled or been delayed due to poor feasibility are moving again, with about 27,000 homes now in the pipeline across 32 project sites in those zones.

Seoul Mayor Oh Se-hoon visited the Yangpyeong Sindonga apartment reconstruction site in Yeongdeungpo-gu on Thursday to review progress and hear from association members and local residents.

Seoul's semi-industrial zones served as a base for the city's industrialization in the 1960s and 1970s. Of the roughly 19.97 million square meters of such land, 82 percent is concentrated in the southwestern districts of Yeongdeungpo, Guro, Gangseo, Geumcheon and Yangcheon-gu, with smaller pockets in Seongdong and Dobong-gu.

Under previous rules, floor-area ratios for apartment buildings in semi-industrial zones were capped at levels that made it difficult to secure enough housing units, and rising member contributions left many projects financially unviable.

Following its announcement of a sweeping overhaul of the southwestern districts in February 2024, the Seoul Metropolitan Government began enforcing an amendment to its urban planning ordinance in March last year that allows floor-area ratios of up to 400 percent for apartment construction in semi-industrial zones.

Since the rule change, a total of 32 sites have moved forward with plans to supply about 27,000 homes. Twenty-four reconstruction and redevelopment projects — including the Mullae Gukwha, Yangpyeong Sindonga, Seongsu 1 and Samhwan Dobong apartment complexes — are pursuing a combined 19,122 units.

Eight additional sites involving urban renewal redevelopment and district-unit planning projects — among them Yangpyeong District 13, Mullae-dong 4-ga, the former Banglim site and the Gyohaksa site — are pursuing a further 8,053 units.

The Yangpyeong Sindonga complex is the flagship beneficiary of the new 400 percent floor-area ratio. Long hampered by density restrictions that prevented it from adding units, the project cleared an integrated review for urban improvement projects in March and has since gained momentum.

The total unit count will rise from 563 to 762, an increase of 199 homes. The Seoul Metropolitan Government expects the improved project economics to also reduce the financial burden on existing members.

The city plans to accelerate the ground-breaking timeline for the Yangpyeong Sindonga reconstruction through a "special progress-acceleration meeting" chaired by the second deputy mayor for administration, held jointly with all 25 autonomous districts to review redevelopment and reconstruction progress and discuss remedies for delayed zones.

Measures include direct consultations with the lead department, a preliminary feasibility review by Seoul Housing & Communities Corp., and early identification and management of potential delays. The city aims to shorten the project implementation plan approval, management and disposal plan approval, and relocation and demolition stages by four months each, targeting a ground-breaking in October 2029.

Going forward, the Seoul Metropolitan Government plans to upgrade semi-industrial areas with dense industrial activity or high growth potential into advanced industry hubs centered on office and high-tech facilities. Areas that have become predominantly residential will receive support for housing supply through improvement projects, along with expanded green space and everyday infrastructure.

The national government has also recently proposed using Seoul's semi-industrial zones to boost urban housing supply. After Kim Yong-beom, the presidential chief of staff for policy, mentioned leveraging semi-industrial zones in Yeongdeungpo and Guro, the Seoul Metropolitan Government said it was already pursuing about 25,000 homes across 32 project sites through regulatory reforms it had put in place.

"Semi-industrial zones have been vital spaces that drove Seoul's industrialization and growth, but they have long been left unimproved because they failed to keep pace with changes in industrial structure and the way residents live," Oh said. "Regulatory reform has set stalled improvement projects back in motion and is meaningfully reducing the burden on residents."