Urban Redevelopment Near Subway Station Completes Designation Notification in Just Three Months Using Trust-Based Method

The urban renewal-type redevelopment project near Sookmyung Women’s University Station, being promoted in the area of 52-6 Galwol-dong, Yongsan-gu, Seoul, has secured the necessary consent rate and completed its designation notification only three months after being designated as a redevelopment area. Typically, redevelopment projects conducted through an association method can take more than a year, but Daishin Asset Trust accelerated the process by joining as the project executor after the area was designated.

According to the designation notification, this project will develop apartment complexes and ancillary welfare facilities on a 36,612-square-meter site, applying a legal maximum floor area ratio of 418%, with five basement levels and up to 40 floors above ground, totaling 885 residential units. Industry insiders attribute the project’s rapid progress to the adoption of a trust-based method, which unified the complex decision-making structure and enabled a steady push forward.

This approach resolved the multi-layered decision-making structure centered around the board of representatives or the general assembly, while also reducing internal conflicts within the association and uncertainties in project financing. During this project, the process of securing consent was carried out in parallel with administrative procedures. An industry insider explained, “While the association method involves a complicated decision-making structure, the trust-based method is designed to eliminate bottlenecks.”

Perspective view of the urban renewal-type redevelopment project in the vicinity of Sookmyung Women’s University Station. Provided by the association.

The outlook is also positive. After the executor is designated, the redevelopment project goes through a series of steps, including integrated review, project implementation approval, management and disposal planning, resident relocation, and groundbreaking. With the trust-based method, the executor is confirmed from the outset, allowing the integrated review and design review to proceed simultaneously. This enables the project to advance without interruptions, thereby reducing the overall timeline.

The Galwol-dong Sookmyung station redevelopment is the first project in Yongsan-gu to be pursued using the trust-based method. Amid ongoing conflicts and delays in many redevelopment sites in the Yongsan area, this case is being seen as an alternative business model with the potential for wider adoption.

Yoon Myungsook, head of the project preparation committee, stated, “We will continue to move quickly on both contractor selection and the necessary approvals.” A Daishin Asset Trust representative added, “This project has demonstrated how the trust-based method can shorten the project period, and we will continue to pursue subsequent procedures in parallel to ensure both speed and quality.”

This content was produced with the assistance of AI translation services.