Public agencies to take on building construction in port redevelopment projects

Public institutions, including port authorities, will be allowed to directly participate in developing above-ground structures — not just land preparation — in port redevelopment projects. The change moves away from the existing approach, in which public agencies prepared land and then sold it to private developers to build on, replacing it with an integrated model in which public entities oversee both the land and the structures above it.

The Ministry of Oceans and Fisheries said Thursday that the National Assembly passed an amendment to the Act on Port Redevelopment and Development of Surrounding Areas. It marks the first major overhaul of the port redevelopment system since the relevant provisions were separated from the Port Act and enacted as standalone legislation in May 2020.

The core of the amendment is a legal basis allowing public institutions to take charge of above-ground facility development during port redevelopment. Going forward, project and implementation plans for port redevelopment may include not only land preparation and other infrastructure work but also plans for developing and attracting buildings and other above-ground structures on the prepared land. Legal grounds for selling or leasing those structures have also been established.

Under the previous framework, public agencies prepared the land and private developers who purchased it were responsible for constructing the above-ground facilities. Critics had long argued that splitting development responsibilities between public and private actors caused delays and weakened the public interest dimension of projects. The amendment enables port authorities and other public institutions to participate in above-ground development and take the lead in the early stages of a project.

Management of developed land will also be tightened. Project operators who wish to sell, lease or directly use land they have prepared must now submit a disposal plan to the managing authority. Previously, operators were only required to draw up and retain such plans internally, raising concerns that the supply of developed land and construction of above-ground facilities could proceed in a haphazard manner that undermined the public interest.

Procedures for transferring infrastructure such as roads and parks will also be revised. Project operators will be required to consult in advance with the agencies designated to take over the facilities at the time of completion inspection, and those agencies must participate in the inspection itself. The measure is intended to reduce delays caused by disagreements between project operators and managing agencies that arise after construction is finished.

The ministry said it expects the amendment to accelerate long-stalled port redevelopment projects, including phases 1 and 2 of Busan North Port and piers 1 and 8 of Incheon Inner Port.

"This amendment will allow other redevelopment projects that have been delayed for years — including Busan North Port phases 1 and 2 and Incheon Inner Port piers 1 and 8 — to pick up speed," Ministry of Oceans and Fisheries Minister Hwang Jong-woo said. "We will do our utmost in implementing the legislation so that aging and idle ports can be transformed into a new source of competitiveness for their regions."