Seongnam City to Invest 10 Trillion Won in Bundang and Old City Centers... "Transforming Housing, Industry, and Transportation"

[Seongnam’s Urban Overhaul] Accelerating Customized Urban Renewal for Bundang and the Old City Centers
96,500 Homes to be Reconstructed in Bundang; Up to 60,000 More Units Possible if Supply Limits are Lifted
Redevelopment of 11 Districts in the Old City Centers; Relocation Needs Addressed with 8,000 Circulating Homes
Ori Station’s “4th Technovalley” and Extension of Subway Line 8 to Pangyo Aim to Elevate Southern Metropolitan Seongnam
Pushing Forward a High-Tech Industrial Corridor Connecting Pangyo and Ori; Up to 83,000 New Jobs Anticipated
Mayor Sangjin Shin: "Reconstruction and Redevelopment Are About Redesigning Citizens’ Lives and Seongnam’s Future"

Seongnam City, Gyeonggi Province (Mayor Sangjin Shin), is promoting a plan to provide direct and indirect support for reconstruction in Bundang New Town and redevelopment in the old city centers of Sujeong and Jungwon Districts, with a funding scale of approximately 10 trillion won. In Bundang, the city aims to renovate about 96,500 housing units, while in Sujeong and Jungwon Districts, redevelopment will focus on 11 main residential areas. The city’s vision goes beyond simply building new housing; it includes transforming urban infrastructure such as industries, transportation, and schools at the same time.

According to Seongnam City on September 25, the city plans to secure around 8,000 circulating housing units in preparation for the relocation needs that will arise during the redevelopment process. A key challenge of this large-scale reconstruction and redevelopment is securing temporary accommodations for residents during construction.

Aerial view of the aging planned city in Bundang. Provided by Seongnam City

96,500 Homes to be Reconstructed in Bundang... "If Supply Limits are Lifted, 50,000 to 60,000 More Units Possible"

The centerpiece of Seongnam City's urban renewal project is the reconstruction of Bundang. The demand from residents is already substantial. In the 2024 pilot district competition, 58,874 households applied, and in this year’s second stage for special redevelopment zones, 50 areas covering 66,037 households participated. This is more than five times the 12,055-unit supply scheduled for this year.

Seongnam City is requesting that the government abolish the annual quota on redevelopment projects. Currently, the average floor area ratio for apartments in Bundang is around 180%, whereas the standard FAR outlined in the city’s basic redevelopment plan is 326%.

The city estimates that, if redevelopment proceeds as planned, it can supply an additional 50,000 to 60,000 housing units without having to develop large new land parcels. The city also believes that, if supply restrictions are lifted, the project timeline—originally set until 2040—can be advanced to 2035.

Mayor Sangjin Shin stated, "Bundang has sufficient demand for reconstruction, and the necessary infrastructure such as roads, schools, and water and sewage systems is already in place." He highlighted that relaxing the supply quota is a practical way to increase housing in the Seoul metropolitan area. However, advancing project approvals and the actual relocation of residents are separate issues. The city plans to monitor the progress of each project and adjust the relocation schedule in consultation with the Ministry of Land, Infrastructure and Transport if resident moves are concentrated at certain times.

Saetbyeol Maeul, a leading district with 2,843 units, is currently preparing for groundbreaking in 2029. Seongnam City is operating a reconstruction support center and a special redevelopment advisory committee to assist in forming redevelopment plans and other administrative procedures. The city is also drafting transportation guidelines to address road, rail, bus, pedestrian, and parking issues at a citywide level associated with the reconstruction.

Aerial view of Jungwon residential area under renovation. Provided by Seongnam City

Redevelopment of 11 Living Zones in Sujeong and Jungwon... Plan to Secure 8,000 Relocation Housing Units

In the old city centers of Sujeong and Jungwon Districts, redevelopment is focused on 11 main living areas, including Sujin 2 District. Since each area of the old city consists mainly of old homes and narrow roads, the project conditions vary by district. Seongnam City plans to accept resident requests to draft development plans, review the feasibility and infrastructure conditions for each, and support procedural steps for redevelopment.

The biggest challenge is resident relocation. If construction across multiple districts commences simultaneously, temporary accommodations will be needed for a large number of residents, including tenants. The city intends to secure approximately 8,000 circulating housing units by utilizing new and existing public rental housing in Bokjeong 1 District and Geumto District. Additionally, the city will consider utilizing rental housing in nearby areas if necessary.

Funding will be prepared based on the specific needs of both old city centers and Bundang. The city plans to use approximately 1 trillion won from the Urban and Residential Environment Improvement Fund for redevelopment in Sujeong and Jungwon Districts, and to establish a special account for aging planned city redevelopment in Bundang.

The overall 10 trillion won plan includes about 2 trillion won in direct support for both the old city centers and Bundang, and approximately 8 trillion won in indirect support for infrastructure such as roads, water and sewage, and metropolitan transportation. This funding will be prepared and injected in stages in the future; the city notes that the full amount has not yet been secured.

Aerial view of Ori Station area 4th Techno Valley. Provided by Seongnam City

'4th Technovalley' at Ori Station... Seongnam City "Up to 83,000 Jobs Expected"

Alongside housing renewal, Seongnam City plans to create the 4th Technovalley around Ori Station. The city will attract companies and research facilities in fields such as artificial intelligence (AI), future mobility, semiconductors, biotech, and healthcare, establishing the area as an industrial hub combining work, research, residential, and commercial functions.

The city is considering complex development applying a maximum floor area ratio of 800%. If the project proceeds as planned, Seongnam City estimates up to 83,000 jobs will be created, with an annual economic impact of approximately 180 trillion won. This estimate is based on the assumption that the project is executed as planned.

Seongnam City's goal is to expand its high-tech industrial corridor by connecting the 1st, 2nd, and 3rd Technovalleys in Pangyo, Baekhyeon MICE, and the 4th Technovalley at Ori Station. In addition to improving the residential environment in Bundang, the city aims to increase local job opportunities, thereby reducing the burden of commuting for residents.

Sangjin Shin, Mayor of Seongnam. Photo provided by Seongnam City

Subway Line 8 to be Extended 3.78km to Pangyo... Opening Planned for 2035

To match urban renewal and the expansion of industrial hubs, the city is also working to expand the rail network. Seongnam City is promoting the extension of Subway Line 8 from Moran Station to Pangyo, a distance of 3.78 kilometers. The preliminary feasibility study conducted by the city reported a benefit-cost ratio (B/C) of 1.03. For the project to actually proceed, further steps such as a national preliminary feasibility study are required.

Seongnam City plans to present future transportation demand arising from Bundang’s reconstruction, Pangyo’s high-tech industry, and the development of Baekhyeon MICE to the central government. The city is also planning to establish a new Seongnam City Hall Station to directly connect the old city centers and Pangyo. The target schedule is to start construction in 2031 and open the section in 2035. The city's rail construction fund will be expanded to 500 billion won to finance the Line 8 Pangyo extension, the Wirye Samdong Line, and the Gyeonggi Southern Metropolitan Railway, among other key projects.

The success of Seongnam City’s vision for a future city depends on synchronizing the pace of redevelopment, relocation measures, employment creation, and transportation network expansion. Even if reconstruction advances, if new housing, schools, or roads are not ready for relocated residents, the project will inevitably face delays.

Mayor Sangjin Shin stated, "Reconstruction and redevelopment are not merely civil engineering projects to build new buildings, but endeavors to redesign the lives of citizens and the future of the city," adding, "Based on a robust financial foundation, we will accelerate the project so residents can live in a safer and more comfortable environment."

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