Table of Contents
Announcement of Maintenance Plan Decision and Maintenance Zone Designation for the Gaegum Jugong Apartment Reconstruction Project
- Area of Gaegum-dong, Busanjin-gu, 53-1.
The reconstruction project for Gaegum Jugong Apartment has officially begun through the announcement of the maintenance plan and the designation of the maintenance zone. It has received positive reviews for being advanced rapidly, only six months after the residents' briefing session and public notice held last October.
The project site is located at 53-1 Gaegum-dong, Busanjin-gu, covering an area of 17,173㎡. The site consists of low-rise Jugong apartments constructed in 1987, comprising eight 5-story buildings with a total of 380 households.
According to the maintenance plan, the floor area ratio is expected to be relaxed from 230% to below 264%, and the maximum building height is allowed to reach 92m, approximately 29 stories. Accordingly, the industry foresees that this area will be transformed into a new complex of around 440 households.
Currently, the market price for exclusive units of 32㎡ ranges between 130 million won and 180 million won. In comparison, the recently supplied units like Ijin Gencity Gaegum and Gaegum Fortuna with exclusive units of 74㎡ have real transaction prices reaching 300 million won to 350 million won.
The land contribution for each household amounts to approximately 45㎡, which is about 13.6 pyeong, with an estimated ratio of 115.49%. However, the reconstruction of Gaegum Jugong Apartment is expected to focus on smaller units, which raises the possibility of significantly higher contribution costs even if the number of households increases. This needs to be considered.
The construction company has not yet been decided. After the establishment of the association is completed, the selection of the construction company will begin, with the probability of participation from large construction companies that have rich experience in maintenance projects in Busan being high.
The project, comprising 440 households, can be executed as a standalone construction and is expected to enhance brand value, attracting major construction companies like Lotte Construction, Hyundai Construction, and DL E&C.
The competitiveness of the location is remarkable. To the west of Gaegum-dong, the Sasang Smart City project is in progress, while to the east, the Seomyeon commercial area is close by, making workplaces and residences closely connected. With excellent accessibility to Gaegum Station (Busan Subway Line 2) and Dongseo Overpass, transportation is very convenient.
Moreover, there are excellent school districts nearby, such as Gaegum Elementary, Gaegum High School, and Gwangmu Middle School, leading to a large number of actual demanders. All these factors together are enhancing the value of the area.
With the confirmation of the maintenance plan, the future schedule has been organized. As the first step, the establishment of the association will be pursued in the second half of 2025, followed by obtaining management disposal plan approval in 2026. Relocation and demolition are expected to take place in 2027, and construction and occupancy are expected to occur in 2029.
Once the reconstruction is completed, the low-rise complexes that are over 30 years old will be transformed into mid-rise or high-rise new complexes. This is expected to result in positive effects, including improvements in urban aesthetics, expansion of living infrastructure, and an increase in housing supply.
Busan Metropolitan City Notification No. 2025-153
Announcement of Maintenance Plan Decision and Maintenance Zone Designation for Gaegum Jugong Apartment Reconstruction Project
1. Regarding the maintenance zone of the Gaegum Jugong Apartment reconstruction project located at 53-1 Gaegum-dong, Busanjin-gu, Busan Metropolitan City announces the maintenance plan decision and maintenance zone designation in accordance with Article 16 of the Urban and Residential Environment Maintenance Act, and announces the topographic map pursuant to Article 8 of the Basic Act on Land Use Regulation and Article 7 of the Enforcement Decree of the same Act.
2. Related documents (land use "http://www.eum.go.kr" can be accessed) are kept at the Busan Metropolitan City's Urban Maintenance Department (☎ 051-888-4244) and Busanjin-gu's Architecture Department (☎ 051-605-8584) for public viewing.
April 30, 2025
City of Busan
Ⅰ. Designation of Maintenance Zone and Decision on Maintenance Plan
1. Establishment Record of the Reconstruction Project Maintenance Zone
| Designation Type | Type of Project | Name of Zone | Location | Area (㎡) |
| New | Reconstruction Project | Maintenance Zone of Gaegum Jugong Apartment Reconstruction Project | Area of Gaegum-dong, Busanjin-gu, 53-1 | 17,173.0 |
2. Maintenance Plan for the Reconstruction Project
○ Land Use Plan
| Category | Name | Area (㎡) | Ratio (%) | Remarks |
| Urban Management Plan Use District | Total | 17,173.0 | 100.0 | |
| | 3rd Class General Residential Area | 17,173.0 | 100.0 | 3rd Class |
| Urban Management Plan Use District | - | - | - | |
| Total | | 17,173.0 | 100.0 | |
| Housing Land and Maintenance Infrastructure (Urban Planning Facility) | Residential Land | 16,391.7 | 95.5 | Apartment Housing and Related Facilities |
| | Maintenance Infrastructure (Urban Planning Facility) | 781.3 | 4.5 | 1 Urban Planning Facility |
| | Road | 781.3 | 4.5 | |
○ Plan regarding Change of Use District (No Change)
| Category | Area (㎡) | Ratio (%) |
| Current | 17,173.0 | |
| Changed | - | |
| After Change | 17,173.0 | 100.0 |
| 3rd Class General Residential Area | 17,173.0 | 100.0 |
○ Estimated Contribution Amount and Basis for Land Owners
| Estimated Total Revenue | Estimated Total Project Cost | Estimated Total Value of Existing Assets | Estimated Ratio |
| 257,545,675,000 won | 164,952,000,000 won | 80,172,100,000 won | 115.49% |
Basis for Estimation
- Estimated Total Value of Existing Assets = Sum of estimated total assets for each land owner
- Estimated Ratio = (Estimated Total Revenue - Estimated Total Project Cost) / Estimated Total Value of Existing Assets
- Contribution for Each Land Owner = Value for Association Return - Rights Value
※ The estimated total value of existing assets and individual contribution amounts above may change according to future management disposal plans, etc.
(Details of estimated contribution for each land owner and basis are omitted)
○ Plans regarding Main Use, Building Coverage Ratio, Floor Area Ratio, Height of Buildings, etc.
| Category | Zone Classification | Project Classification | Area (㎡) | Location | Main Use | Building Coverage Ratio | Floor Area Ratio | Height |
| New | Maintenance Zone of Gaegum Jugong Apartment Reconstruction Project | I-1 | 16,391.7 | Area of Gaegum-dong, 53-1 | Residential Building and Related Facilities | Below 20% | Below 264% | Below 92m |
Scale of Residential Units and Construction Ratio: More than 40% of the total number of housing units to be built should be 85㎡ or less
Matters concerning the construction of rental housing: Not applicable
○ Application of Relaxation Criteria for Floor Area Ratio
- Application of criteria for evaluation of standard floor area ratio and relaxation criteria according to the Busan Metropolitan City's Basic Urban and Residential Environment Maintenance Plan for 2030
- Standard floor area ratio: 230.0% (Residential Maintenance Zone)
| Category | Evaluation Criteria Score | Background of Evaluation Criteria | Standard Floor Area Ratio |
| Gaegum Jugong Apartment 1 | 62 points | Residential maintenance under 50-80 points | 230% |
- Application of relaxation of floor area ratio
▸ Incentives for providing public facility sites: 20%
- 1.5 × (781.3 ÷ 16,391.7) × 300% = 21.4% (Maximum 20%)
▸ Sustainable Residential Units: 5%
▸ Incentives for revitalization of local economy: 9.0%
→ 4% (Participation rate of local subcontractors: over 50%)
→ 5% (Participation rate of local design firms: over 50%)
※ Total Relaxation Ratio: 20% + 14% = 34%
※ Allowed Floor Area Ratio Calculation: 230% + 34% = 264%
※ Planned Floor Area Ratio: Below 264%
Classification
Notification
Organization Classification
City
Organization
Busan Metropolitan City
Notification/Announcement Number
No. 2025-153
Title
Announcement of Maintenance Plan Decision and Maintenance Zone Designation for Gaegum Jugong Apartment Reconstruction Project
Date
2025-04-30
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