Announcement of Maintenance Plan Decision and Change of Maintenance Area Designation for the Yeonsan 7 Redevelopment Project
- Area of Yeonsan-dong 1811-1, redevelopment of Beksan Station
The Yeonsan 7 redevelopment project, which is underway in the area around Yeonsan-dong 1811-1 in Yeonje-gu, Busan, has recently entered the full phase of development through the announcement of the maintenance plan and the change of the designated maintenance area. This area is scheduled to be designated as a maintenance area in January 2024, and in May of the same year, the cooperative establishment promotion committee will approve and elect a cooperative leader. Additionally, the selection process for the construction company is expected to take place within this year. This way, the Yeonsan 7 redevelopment project takes important steps towards regional development.
According to this announcement, the area of the maintenance zone has been set at 75,713㎡, with the designated use area classified as a general residential area of type 3. Accordingly, the building coverage ratio is limited to less than 50%, and the floor area ratio is limited to less than 270%.
This area is planned to be developed into high-rise apartments ranging from 3 basement floors to 32 above-ground floors. It is expected to consist of a total of 11 buildings, with the number of units estimated to be between approximately 1,275 and 1,399. According to the official plan, 1,275 units are set as a basic configuration, but the possibility remains open for up to 1,399 units.
The final decision on the future planned number of units has not yet been made.
Currently, the number of cooperative members is around 1,143, leading to a member-to-unit ratio of 1.22. This relatively high number of cooperative members compared to typical redevelopment projects raises concerns about the possible involvement of speculators engaging in subdivided ownership tactics. Such a situation may have some impact on future pricing, securing general sale quantities, and overall project viability.
The main changes to the maintenance plan include the reflection of land use plans and maintenance infrastructure. The general residential area of type 3 remains at 88.5%, while the semi-residential area accounts for 11.5%, with specific areas for infrastructure such as roads, parking lots, and parks established. Through this announcement, the ratios and estimated charges for landowners in the Yeonsan 7 area have also been adjusted, reflecting changes in publicly announced land prices.
These changes are expected to have significant impacts on future maintenance projects.
Yeonsan 7 area is located close to Beksan Station on the Busan Subway Line 3, providing excellent access to transportation and administrative infrastructure. This area is known for its high demand for residential properties and is surrounded by various ongoing development projects. These elements highlight it as a redevelopment area with the potential for a high premium in accordance with the selection of a construction company and general sale schedule in the future.
The cooperative is currently solidifying the maintenance plan and preparing for the general meeting for cooperative establishment approval. This is expected to lead to the selection of a construction company within this year, making the project visibly progress. This is anticipated to have a positive impact on the future development of this area.
Announcement No. 2025-107 of Busan Metropolitan City
Announcement of Maintenance Plan Decision and Change of Maintenance Area Designation for Yeonsan 7 Redevelopment Project
1. Concerning the maintenance area designated by the announcement No. 2014-14 of Busan Metropolitan City (2024.1.17) for the Yeonsan 7 redevelopment project in Yeonsan-dong 1811-1 area, the maintenance plan and maintenance area are changed and announced as per Article 16 of the "Urban and Residential Environment Improvement Act". Furthermore, the topographical map is announced as per Article 8 of the "Land Use Regulation Act" and Article 7 of its enforcement decree.
2. The related documents (land link "http://www.eum.go.kr" for inquiry) are available at the Urban Maintenance Division of Busan Metropolitan City (☎ 051-888-4231) and the Building Division of Yeonje-gu (☎ 051-665-5054) for public access.
March 26, 2025
Mayor of Busan Metropolitan City
Ⅰ. Designation of Maintenance Area and Decision on Maintenance Plan
1. Redevelopment project maintenance area designation report: No changes
| Designation Classification | Project Classification | Area Name | Location | Area (m²) | Remarks |
| Established | Redevelopment Project | Yeonsan 7 Redevelopment Project Maintenance Area | Yeonsan-dong 1811-1 area | 75,713 | Initial Designation Report No. 2014-14 (24.01.17) |
2. Redevelopment Project Maintenance Plan: Changes
○ Plan Regarding Land Use: No changes
| Classification | Area (m²) | Ratio (%) | Remarks |
| Urban Management Plan Use Area | Total | 75,713 | 100.0 |
| | General Residential Area of Type 3 | 67,038 | 88.5 |
| | Semi-Residential Area | 8,675 | 11.5 |
| Urban Management Plan Use District | - | - | - |
| Residential and Maintenance Infrastructure (Urban Planning Facilities) | Total | 75,713.0 | 100.0 |
| | Residential Land | 53,619.9 | 70.8 |
| | Multi-family Housing | 53,619.9 | 70.8 |
| | Maintenance Infrastructure (Urban Planning Facilities) | 22,093.1 | 29.2 |
| | Road | 16,525.0 | 21.9 |
| | Parking Lot | 989.1 | 1.3 |
| | Railroad | 173.0 | 0.2 |
| | Park | 4,406.0 | 5.8 |
○ Plan Regarding Use Area Change: No changes
| Classification | Area (m²) | Composition Ratio (%) | Remarks |
| Total | Established: 75,713 / Change: 75,713 / After Change: 100.0 | | |
| General Residential Area of Type 3 | 67,038 | 88.5 | - |
| Semi-Residential Area | 8,675 | 11.5 | - |
○ Estimated Charges for Each Landowner and Basis for Calculation: Changes
| Classification | Total Estimated Income | Total Estimated Project Cost | Total Estimated Value of Original Assets | Estimated Proportion |
| Established | 886,114,808,000 KRW | 687,744,148,000 KRW | 178,190,337,000 KRW | 111.33% |
| Change | 891,070,292,000 KRW | 693,192,425,000 KRW | 179,580,407,000 KRW | 110.19% |
※ The above estimated values for original assets and individual charge calculations may change upon approval of future management plans (the estimated charges per landowner and calculation basis: approximate calculation)
□ Reason for Change
- The estimated charges per landowner have been changed to reflect changes in land publicly declared prices.
○ Plan Regarding Buildings' Main Use, Coverage Ratio, Floor Area Ratio, and Height: No changes
| Area Classification | Name | Area (m²) | Name | Area (m²) | Location | Main Use | Coverage Ratio (%) | Floor Area Ratio (%) | Height (m) |
| Yeonsan 7 Redevelopment Project Maintenance Area | Housing Scale and Construction Ratio | 75,713 | 1-1 | 53,619.9 | Area around Yeonsan-dong 1811-1 | Multi-family housing and ancillary welfare facilities | 50 or less | 270 or less | 91m or less |
■ Matters Regarding the Construction of Rental Housing
○ More than 40% of the total units being constructed must be 85㎡ or less in size
○ More than 10% of the total units being constructed must be for rental housing
○ More than 30% of the total rental housing units or more than 5% of the total units being constructed must be 40㎡ or less in size
■ Application of Floor Area Ratio Relaxation Standards
- Application of floor area ratio relaxation standards as per the "2030 Busan Urban Residential Environment Maintenance Basic Plan"
• Standard Floor Area Ratio: Residential Area = 240%, Semi-Residential Area: 360%
• Maximum Permissible Floor Area Ratio when all incentives are applied: 287.5% = [50,262.9㎡×(240%+40%)+3,357㎡×(360%+20%)]÷(50,262.9㎡+3,357㎡)
→ Excluding public facilities the maximum permissible floor area ratio: 267.5%
• Average Floor Area Ratio: 268.84%
• Change from the third type general residential area to the third type general residential area → 20.08%
• Simple residential area (standard floor area ratio: 360%) → 237.59%
→ Average Floor Area Ratio Calculation:
50,262.9㎡×260.80%+3,357㎡×400.00%)÷(50,262.9㎡+3,357㎡)
⇒ As it exceeds the maximum permissible floor area ratio of 267.5% when excluding public elements, 267.5% will be applied
• Application of regional plan (participation in district special provisions and local planning incentives) incentive: 11%
• District special provision type multi-family housing (easier rental multi-family housing) incentive: 5%
• Rental Housing: 5%
⇒ Average Floor Area Ratio: 267.5% + 11% + 5% = 283.5%
• Planned Floor Area Ratio: 270% or less
Classification
Announcement
Organization Classification
City
Agency
Busan Metropolitan City
Announcement No
No. 2025-107
Title
Announcement of Maintenance Plan Decision and Change of Maintenance Area Designation for Yeonsan 7 Redevelopment Project
Date
2025-03-26
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