Table of Contents
Notice of the 2035 Busan Metropolitan City Old Urban Area Maintenance Basic Plan (Hwamyung-Gumgok District)
The mid-rise apartment reconstruction project in Hwamyung-dong holds various investment possibilities.
Information regarding floor area ratio and timing of sales can determine the success of this project.
The project, involving Nakcheon-dae and Kolon, is expected to significantly influence the Busan apartment market.
The directions for the reconstruction of the Hwamyung and Gumgok districts in Busan Buk-gu have been officially announced. On April 8, 2026, Busan Metropolitan City published the ‘2035 Busan Metropolitan City Old Urban Area Maintenance Basic Plan (Hwamyung·Gumgok District)’, establishing a regulatory foundation for mid-rise apartment reconstruction. The area planned for the project is set at approximately 2.71 million square meters, with the target date set for 2035.
The main element of this plan is the floor area ratio. The standard floor area ratio reaches an average of 350%, with the second-class land use zone set at 340% and the third-class land use zone at 370%. Considering that the existing average floor area ratio is about 232%, there is room for an increase of approximately 117 percentage points.
Additionally, the market expects the floor area ratio to increase by about 10% due to public contributions. Thus, a net increase of about 90% to 100% can be expected. These changes are likely to have a positive impact on local development.
The scale of the maintenance target is quite large. The residential area maintenance type includes 15 zones, and a total of 31,359 households are expected to be renovated. Major complexes include Lotte Nakcheon-dae, Kolon Hanulchae, Hwamyung Kolon, Byuksan Riverside Town, Hwamyung Green, and Daewoo Ian. Thus, it can be seen that most of the existing complexes in Hwamyung-dong are included in this basic plan.
Like the Haeundae Green City, this notice is just the beginning. Although the basic plan has been announced with difficulty, executing the project is an entirely different issue.
According to the plan, beginning with approximately 2,500 households in the leading district, the schedule for relocation and construction is suggested for 2028, but this is only an administrative guideline. Due to the nature of integrated reconstruction, resident agreement, feasibility analysis, discussions on public contributions, and various licensing processes are complicating matters, making it likely that the actual completion of the project will take over 10 years.
Therefore, these factors must be adequately considered.
A cool perspective is necessary when evaluating business viability. Though the floor area ratio may increase by nearly 100%, the shared costs can be significant for various reasons.
This is due to rising construction costs, financial costs, securing infrastructure, and public contribution burdens acting concurrently. Particularly, in Hwamyung-dong, the current new apartment prices are relatively low compared to Haeundae, which may negatively impact the profit structure even if a similar type of reconstruction proceeds.
Considering these points, a cautious approach is necessary.
External factors also play a significant role. Additionally, large-scale new constructions in the nearby Gangseo-gu's Eco Delta City are planned, which may lead to a diversion of demand in the future. Considering the declining population trend in Busan, it may be risky to hold simple optimistic views from a long-term investment perspective. Ultimately, it is reasonable to expect that the Hwamyung-dong reconstruction project will involve more variables and a longer timeframe compared to Haeundae.
This notice includes plans for various urban structural reorganization beyond simple reconstruction. This includes a 15-minute city, expansion of living SOCs, a green-blue network linked to the Nakdong River, and the establishment of a future transportation system based on autonomous driving.
Thus, in the future, the market is expected to focus more on the speed of unified maintenance, conditions for public contributions, and the feasibility of the project rather than on individual complex prospects.
It is essential to approach from a long-term perspective rather than relying on unfounded expectations, and thorough review is required when entering investments.
Notice No. 2026-124 by Busan Metropolitan City
Notice of the 2035 Busan Metropolitan City Old Urban Area Maintenance Basic Plan
(Hwamyung·Gumgok District)
To enhance the urban functions and improve the living environment of the old Hwamyung and Gumgok districts, the basic maintenance plan for old urban areas has been established in accordance with the "Special Act on the Maintenance and Support of Old Urban Areas," and is hereby notified as follows according to Article 6, Paragraph 6 of the same Act.
April 8, 2026
Mayor of Busan Metropolitan City
1. Title: “2035 Busan Metropolitan City Old Urban Area Maintenance Basic Plan (Hwamyung·Gumgok District)”
2. Base Year and Target Year
| Category | Base Year | Target Year |
| Year | 2024 | 2035 |
3. Key Details
(a) Overview of the Plan
○ Background and Purpose of the Plan
○ Scope of the Plan
| Category | Content |
| Temporal Scope | • Base Year: 2024 / Target Year: 2035 |
| Spatial Scope | • Old Urban Area: Hwamyung·Gumgok District (A=2,710,030.7㎡) |
(b) Basic Direction of Maintenance
○ Vision and Objective of the Plan
(c) Spatial Structure Improvement Plan
| Nurturing Area-specific Hubs | Realizing a 15-minute City | |
| • Fostering "4 Major Urban Vitality Local Specialized Hubs" by linking to regional resources such as Gumgok Urban Advanced Industrial Complex, Broadcasting and Communication University, Busan Human Resources Development Center, Busan Fire School - Focusing on talent training, IT·Bio industry - Commercial, office centric, life education centric | • Creating "15-minute Livelihood Zone" by expanding living SOC facilities and improving pedestrian environments centered around transit areas - Concentrating living SOC facilities such as education, medical, cultural, sports, and social welfare facilities within 750m of station zones - Ensuring a pleasant residential environment through pedestrian-friendly road plans and rationally securing main access points of complexes | |
| • Establishing a "three-dimensional green-blue network" linking the Gamjeong Mountain and Nakdong River located to the west of the mountainous area, creating natural-friendly residential areas - Strengthening waterfront accessibility by establishing public pedestrian routes and cover parks to connect the Nakdong River severed by highways such as the Gyeongbu Line Railway and riverside roads | • Building "Future Green Traffic City Infrastructure" where future transportation innovations realize - Establishing an environmentally friendly autonomous driving bus system powered by hydrogen and electricity to create an eco-friendly future city image - Creating small multi-transfer stations for seamless transfer between PM, buses, taxis near subway stations | |
| Establishing Green-blue network | Realizing Future Green Traffic City |
This is information about the special maintenance planned areas.
The residential area maintenance type is divided into 15, the facility maintenance type into 3, and the relocation support type into 4 areas.
These areas will contribute to regional development through maintenance and development.
| Area Name | Type | Area (㎡) | Number of Households (units) | Number of Complexes (units) | Remarks |
| Total | 1,701,485.1 | 31,359 | 37 | ||
| 1 | Residential Area Maintenance Type | 96,400.3 | 2,016 | 2 | Byuksan Samhyeop Hansol, Gumgok Jugong 3rd |
| 2 | Residential Area Maintenance Type | 74,876.1 | 1,152 | 2 | Gumgok Hwamok, Hyopjin Taeyang |
| 3 | Residential Area Maintenance Type | 40,920.4 | 480 | 2 | Yurim 2nd, Yurim 1st |
| 4 | Residential Area Maintenance Type | 53,093.2 | 1,366 | 1 | Gumgok Jugong 8th, 9th |
| 5 | Residential Area Maintenance Type | 74,537.4 | 1,217 | 2 | Gumgok Jugong 5th, 6th |
| 6 | Residential Area Maintenance Type | 111,867.6 | 2,014 | 3 | Byuksan Riverside Town, Gyeongnam Honorsville, Hwamyung Green |
| 7 | Residential Area Maintenance Type | 154,539.4 | 2,729 | 3 | Hwamyung River Ville 2nd, Hwamyung Tranquil, Hwamyung Hanil U&I |
| 8 | Residential Area Maintenance Type | 165,526.3 | 2,460 | 4 | Hwamyung Green 1st and 2nd, Hwamyung Kolon, Green Forest |
| 9 | Residential Area Maintenance Type | 182,289.7 | 2,939 | 2 | Hwamyung Lotte Nakcheon-dae, Daewoo Ian |
| 10 | Residential Area Maintenance Type | 66,770.8 | 1,047 | 2 | Samhans Hill Park, Hyundai 1st |
| 11 | Residential Area Maintenance Type | 66,814.8 | 1,099 | 3 | Hwamyung Yurim, Daewoo Prugio, Hwamyung Green Hill |
| 12 | Residential Area Maintenance Type | 174,417.9 | 2,624 | 2 | Kolon Hanulchae 1st and 2nd |
| 13 | Residential Area Maintenance Type | 147,946.3 | 2,638 | 2 | Hyundai 2nd, Daelim Sanyang Riverside Town |
| 14 | Residential Area Maintenance Type | 72,387.1 | 1,780 | 1 | Sujeong Riverside Town |
| 15 | Residential Area Maintenance Type | 36,070.4 | 500 | 2 | Wooshin, Gukil |
| 16 | Facility Maintenance Type | 1,017.5 | - | - | Parking lot |
| 17 | Facility Maintenance Type | 14,771.4 | - | - | Plaza |
| 18 | Facility Maintenance Type | 18,950.1 | - | - | Park (Public agency site) |
| A | Relocation Support Type | 27,750.2 | 1,099 | 1 | Gumgok Jugong 1st |
| B | Relocation Support Type | 48,818.3 | 1,460 | 1 | Gumgok Jugong 2nd |
| C | Relocation Support Type | 21,506.3 | 802 | 1 | Gumgok Jugong 7th |
| D | Relocation Support Type | 50,213.6 | 1,937 | 1 | Gumgok Jugong 4th |
(d) Planned Population and Standard Floor Area Ratio
○ Population Setting
| • The allowable increase in population, considering the current processing and receiving capacity of infrastructure, is about 22,200. |
| Category | Parks | Elementary School | Middle School | High School | Water Supply (Reservoir) | Sewage |
| Possible Increase Population (people) | 22,417 | 67,996 | 104,851 | 37,525 | 74,951 (22,420) | 341,658 |
○ Planned Population Calculation
| • The planned population is estimated to be 97,833, increasing from the current 75,416 by 22,417. |
| Category | Current Status (2022) | Change | Plan (2035) | Remarks | |||
| Population (people) | No. of Households (units) | Population (people) | No. of Households (units) | Population (people) | No. of Households (units) | ||
| Total | 75,416 | 32,651 | 22,417 | 8,793 | 97,833 | 41,444 | |
| Special maintenance planned area | 69,932 | 31,359 | 22,417 | 8,793 | 92,349 | 40,152 | |
| Outside special maintenance planned area | 5,484 | 1,292 | - | - | 5,484 | 1,292 | |
○ Standard Floor Area Ratio Calculation
| • The number of people per household in Busan Metropolitan City, as projected in the 2040 Busan City Basic Plan, is set at 2.3 individuals, applying the average area of common apartments from maintenance projects in Busan over the last ten years - [Supply area size] exclusive 60㎡: 60~85㎡: Over 85㎡ = 73㎡: 107㎡: 142㎡ applied - [Supply ratio] exclusive 60㎡: 60~85㎡: Over 85㎡ = 29.4%: 61.1%: 9.5% applied |
| Category | Calculated Value | Remarks | |||
| Number of Households in Special Maintenance Planned Area (units) | 40,152 | ||||
| Area of Maintenance Projects in the Last 10 Years | Exclusive Area | 60㎡ or less | 60~85㎡ or less | Over 85㎡ | |
| Average Supply Area (Ratio) | 73㎡ (29.4%) | 107㎡ (61.1%) | 142㎡ (9.5%) | ||
| Total Floor Area (㎡) | 4,028,384 | ||||
| Site Area (㎡) | 1,149,894 | ||||
| Standard Floor Area Ratio | 350% | ||||
(e) Infrastructure Planning
○ Necessary Infrastructure by Living Zone
| • To realize the 15-minute city, analyzing the radius of major infrastructure usage around transit areas, considering higher-level and related plans, and the opinions of resident surveys, additional living SOC facilities that need to be secured for small living zones have been derived. • Living SOC facilities should be created in consultation with the relevant departments in Buk-gu and in accordance with the planning of the 15-minute city during future reconstruction projects. | ||||||
| Current Status of Necessary Infrastructure by 15-Minute Living Zone | ||||||
| Category | Gumgok Living Zone | Dongwon Living Zone | Yulli Living Zone | Hwamyung Living Zone | Sujeong Living Zone | |
| Current Status (15-Minute City Compatible Facilities) | • 3 Schools (2 Elementary, 1 Middle) • 1 Library, 1 Youth Training Center • 1 Social Welfare Facility (for the Disabled) • 1 Cultural Facility (Religious) | • 2 Schools (1 Elementary, 1 Middle) • 1 Library, 1 Public Office • 1 Social Welfare Facility (Child Welfare) • 1 Youth Training Center | • 8 Schools (4 Elementary, 2 Middle, 2 High) • 1 Library, 1 Sports Facility (Golf Course) • 3 Social Welfare Facilities (2 for the Elderly, 1 General Health) • 4 Public Offices (including Procurement Office) | • 7 Schools (4 Elementary, 2 Middle, 1 High) • 1 Library • 1 Public Office (Park) • 1 Sports Center (Comprehensive Sports Center) | • 2 Schools (1 Elementary, 1 College) • 1 Social Welfare Facility (Education, Health, and Disability Welfare) | |
| Priority among Additional SOC Facilities | 1st Priority | • Community Sports Facilities | • Small Business Startup Support Facilities, etc. | • Children's Multi-Cultural Spaces | • Comprehensive Social Welfare Facilities | • Community Sports Facilities |
| 2nd Priority | • Small Business Startup Support Facilities, etc. | • Community Sports Facilities | • Cultural Centers (Small Theaters, etc.) | • Lifelong Learning Spaces | • Small Business Startup Support Facilities, etc. | |
| 3rd Priority | • Cultural Centers (Small Theaters, etc.), Comprehensive Social Welfare Facilities | • Cultural Centers (Small Theaters, etc.), Lifelong Learning Spaces, Community Health Centers | • Lifelong Learning Spaces, Community Sports Facilities, Community Health Centers, Small Business Startup Support Facilities, etc. | • Children's Multi-Cultural Spaces, Community Health Centers, Youth Training Centers | • Cultural Centers (Small Theaters, etc.), Community Health Centers | |
| Category | Priority Selection Criteria | Remarks |
| 1st Priority | • Secure supply facilities for newly influx population through maintenance projects | • Reservoir expansion and parks |
| 2nd Priority | • Securing living SOC facilities for the creation of 15-minute cities - Prioritizing facilities needed for small living zones - Promoting in consultation with 15-minute city creation | • Small Business Startup Support Space • Community Sports Facilities • Cultural Center (Small Theater, etc.) • Comprehensive Social Welfare Facilities • Lifelong Learning Space • Community Health Center |
| 3rd Priority | • Securing green belts and improving pedestrian environments | • Cover parks • Improvement of underground passages connecting Nakdong River • Natural restoration projects (Yongdu Stream) • Vertical elevators • Underground pedestrian paths in Nakdong-Hwamyung District • Installation of priority roads for PM |
| 4th Priority | • Other conditions affecting transportation facilities | • Installation of smart intersections • Installation of PM storage • Introduction of autonomous driving buses • Establishment of small multi-transfer stations |
(f) Building Density Plans
○ Basic Direction
| • The previous floor area ratio will apply the greater value between the floor area ratio stated in the building registry and the current district unit plan determined before the establishment of the special maintenance plan • A proper development density plan (standard floor area ratio of 350%) is prepared, considering the increase of about 22,200 people resulting from the relaxation of the floor area ratio in special maintenance planned areas - Standard floor area ratio of second-class general residential area: 340% - Standard floor area ratio of third-class general residential area: 370% • Additional infrastructure and self-sufficient facilities may apply for floor area ratio relaxation after implementing the standard floor area ratio through public contribution funds ※ To be determined through deliberation by the maintenance committee when establishing future special maintenance plans | ||||||||||
| District Number | Purpose Zone | District Area (㎡) | Site Area (㎡) | Current Floor Area Ratio (%) | District Unit Floor Area Ratio (%) | Previous Floor Area Ratio (%) | Standard Floor Area Ratio (%) | Floor Area Ratio Increase (%) | Number of Complexes (units) | Remarks |
| Total | 1,666,746.1 | 1,152,925 | - | - | 232.62 | 350 | 117.38 | - | ||
| 1 | Second-class General | 96,400.3 | 72,561 | 219.02 | 200.00 | 219.02 | 340 | 120.98 | 2 | |
| 2 | Second-class General | 74,876.1 | 46,703 | 202.80 | 200.00 | 202.80 | 340 | 137.20 | 2 | |
| 3 | Second-class General | 40,920.4 | 24,966 | 232.25 | 200.00 | 232.25 | 340 | 107.75 | 2 | |
| 4 | Second-class General | 53,093.2 | 46,756 | 165.18 | 200.00 | 200.00 | 340 | 140.00 | 1 | |
| 5 | Second-class General | 74,537.4 | 41,171 | 183.27 | 222.21 | 222.21 | 340 | 117.79 | 2 | |
| 6 | Second-class General | 111,867.6 | 74,278 | 262.47 | 237.33 | 262.47 | 340 | 77.53 | 3 | |
| 7 | Third-class General | 154,539.4 | 99,884 | 270.86 | 267.33 | 270.86 | 370 | 99.14 | 3 | |
| 8 | Second-class General | 165,526.3 | 85,872 | 251.49 | 249.00 | 251.49 | 340 | 88.51 | 4 | |
| 9 | Third-class General | 182,289.7 | 123,711 | 267.03 | 269.64 | 269.64 | 370 | 100.36 | 2 | |
| 10 | Third-class General | 66,770.8 | 44,004 | 290.35 | 260.00 | 290.35 | 370 | 79.65 | 2 | |
| 11 | Third-class General | 66,814.8 | 41,491 | 269.33 | 266.84 | 269.33 | 370 | 100.67 | 3 | |
| 12 | Third-class General | 174,417.9 | 112,283 | 267.54 | 266.00 | 267.54 | 370 | 102.46 | 2 | |
| 13 | Third-class General | 147,946.3 | 113,117 | 267.32 | 265.28 | 267.32 | 370 | 102.68 | 2 | |
| 14 | Third-class General | 72,387.1 | 59,420 | 251.02 | 268.00 | 268.00 | 370 | 102.00 | 1 | |
| 15 | Second-class General | 36,070.4 | 18,420 | 119.70 | 200.00 | 200.00 | 340 | 140.00 | 2 | |
| A | Second-class General | 27,750.2 | 27,750.2 | 169.42 | 200.00 | 200.00 | 270 | 70.00 | 1 | Rental |
| B | Second-class General | 48,818.3 | 48,818.3 | 133.22 | 200.00 | 200.00 | 270 | 70.00 | 1 | Rental |
| C | Second-class General | 21,506.3 | 21,506.3 | 209.31 | 220.00 | 220.00 | 270 | 50.00 | 1 | Rental |
| D | Second-class General | 50,213.6 | 50,213.6 | 147.91 | 200.00 | 200.00 | 270 | 70.00 | 1 | Rental |
g. Relocation Plans
○ Estimation of Annual Relocation Demand
| • There are a total of 19 zones in the special maintenance planned area within the Hwamyung·Gumgok districts where relocation demand occurs, with a total planned relocation of 31,359 households. • The relevant zones are planned to sequentially commence projects over 10 years (2028-2037), with an expected initial relocation quantity of 2,500 households for the leading district, and an average annual relocation of 2,600 households for others. |
| Number of special maintenance planned areas | Expected Relocation Households | Demolition Period | Average Annual Households to be Promoted | Average Annual Maintenance Complexes |
| 19 | 31,359 (Sale 26,061 / Rental 5,298) | 10 years (2028-2037) | Approximately 2,600 households (excluding leading district) | 1-2 units (excluding leading district) |
○ Estimation of Annual Relocation Demand and Supply Quantities