Analysis of the Urban Regeneration New Deal
The Korean government has been pursuing an “Urban Regeneration New Deal” initiative since 2017. The Urban Regeneration New Deal is a national urban innovation project aimed at boosting urban competitiveness and creating jobs by mainly revamping outdated residential areas and city centers. In pursuing the Urban Regeneration New Deal, the government plans to invest approximately 50 trillion won in 500 areas nation-wide over the next five years and pursue various programs in order to establish the foundation of a lifestyle infrastructure on a par with that of advanced countries within 10 years and reduce the rate of urban decay.
This report covers the Urban Regeneration New Deal that is being pursued by the Korean government, examining related budgets and the status of progress as well as analyzing the major issues. The main issues that were analyzed include ‘method of pursuing urban regeneration’, ‘urban regeneration budget system and source of finance’, ‘urban regeneration performance management’ and ‘main issues related to urban regeneration.’
The analysis revealed that the Ministry of Land, Infrastructure and Transportation (MOLIT) needs to consider selecting areas in which it plans to launch urban regeneration projects based on the Local Autonomy Act which defines the “formation of the city” rather than the National Land Planning and Utilization Act which defines the “region of the city.” Also, by fully taking into account the intention of the legislation regarding the criteria for designating an “urban regeneration revitalization area” as stipulated in the Special Act on Promotion of and Support for Urban Regeneration, consideration should be given to reinforcing the detailed criteria for designating urban regeneration revitalization areas.
Furthermore, upon examining the details of the Special Account for Balanced National Development which is supervised by MOLIT, although the proposed urban regeneration budget increased from the previous year, the proposed budget allocated by the Special Account for Balanced National Development is lower than the previous year for projects related to urban revitalization such as state-funded local highways, public transportation subsidies and the development of regions promoting urban revitalization. Since the budget volume increase of the Special Account for Balanced National Development supervised by MOLIT is lower than the total proposed budget increase of the Special Account for Balanced National Development, a review needs to be conducted on whether the budget for urban revitalization-related projects is appropriate.