Redevelopment of Korea’s first multiuse building picks up pace

The planned redevelopment of Jwawon Shopping Center, the first mixed-use building in Seoul, has cleared another hurdle as state developer Korea Land & Housing Corporation was chosen to lead the project, local media reported on Thursday.

Built in 1966 in Seodaemun-gu, the structure consists of retail shops and offices on lower floors and apartments on the top floor. Although it was graded with one of the lowest scores in a safety evaluation in March, which qualifies the dilapidated building for immediate demolition, few private developers were willing to participate in the redevelopment project due to low profitability.

Korea Land & Housing Corporation, or LH, will demolish the existing structure and build a 34-story building on the land of 3,000 square meters. The new complex will house 239 residential flats, 70 officetel units -- a portmanteau of office and hotel -- and retail shops.

The size of apartments will range from 39 square meters to 59 square meters while the multipurpose officetels will come in sizes of 35 square meters and 50 square meters.

“Since the building is in a ‘dangerous’ status as proven in the previous evaluation, LH will try to accelerate the reconstruction project, and help existing tenants and retailers to settle down in safer places,” said Park Cheol-hong, head of the housing supply division under LH.

The state-owned housing developer will hold a series of meetings with residents and decide on details of the planned project and the construction schedule later this year.

Since the ruling Democratic Party lost in the April by-election in Seoul mainly due the public’s criticism against the government’s strict real estate regulations, authorities have been pondering relaxing redevelopment rules in recent months.

Oh Se-hoon, the newly-elected Seoul mayor, has also vowed to accelerate redevelopment projects which have been stalled for years under his predecessor.

By Kim Young-won (wone0102@heraldcorp.com)