Since Urban Development Act began to be executed in 2000, a variety of urban development projects financed by public and private funds have been implemented, and particularly, diverse mechanisms encouraging private capitals to participate in urban dev...
Since Urban Development Act began to be executed in 2000, a variety of urban development projects financed by public and private funds have been implemented, and particularly, diverse mechanisms encouraging private capitals to participate in urban development projects have continued to be operated.The purpose of this study was to analyze feasibility of appropriation and replotting both of which serve to encourage private capitals to participate in urban development projects. For this purpose, the researcher reviewed Urban Development Act, examined various urban development projects and thereupon, sampled some model projects for comparative analysis.Currently, most of the urban development projects are intended to develop the housing sites. The area narrower than 100 thousand square meters tends to be appropriated, while the area between 100 thousand square meters and a million square meters tends to be developed for replotting.In order to compare the feasibility among urban development projects under the same conditions, the researcher applied two-fold standards, namely, 20% rental housing site and post-procurement replotting, and thereby, sampled Sorae Nonhyun and Sindong districts in Inchon. Then, the researcher calculated the project cost and profit of each method, and therewith, analyzed ratio of public rental housing site, fluctuation of rental housing site price, cost of apartment housing constuction, ratio of apartment housing site replotted, and the effect of land price variables on project feasibility.As a result, it could be confirmed that whether appropriation or post-procurement replotting is desirable depends on scale of development profits and apartment housing construction projects.On the other hand, as a consequence of sensitivity analysis, it was found that sensitivity was correlated positively with the ratio of apartment housing sites, and that the cost of rental housing sites was higher, the per-pyong construction cost was higher for apartment houses, and that the lower the ratio of replotted sites for apartment houses was, the urban development projects using the appropriation was more feasible.If developers should take into consideration the development profits and their financial capacity effectively, they would be able to choose more favorable project mode and design the land use plan more effectively.Since this study applied the same conditions for comparative analysis of urban development project feasibility, unique characteristics of each development project could not well be analyzed. In other words, the results of this study may not reflect the actual field conditions. So, in order to activate the urban development projects, it is deemed necessary to research into not only into their feasibility but also into the project implementation methods befitting the conditions of each project. Lastly, it is hoped that this study will be followed up by future studies which will assess the urban development projects ex post facto to reform the current urban development system.