BJFEZ Authority Innovates Urban Planning Regulations by Relaxing Floor Area and Space Ratios

◈ Promoting a partial revision of the city planning ordinances in Busan and Changwon to align with Article 9(2) (Special Exception to the Land Planning Act) of the Free Economic Zone Act.

◈ Expected to alleviate the critical shortage of industrial land by maximizing the efficiency of existing land supply

The Busan-Jinhae Free Economic Zone Authority (Commissioner Kim Ki-young, hereafter referred to as BJFEZ Authority) announced on 8, May that the Changwon and Busan City have amended several urban planning ordinances to address the severe shortage of industrial land within the Free Economic Zone and attract high-density, high-tech industries.

In recent years, the BJFEZ has experienced significant investment in high-value-added logistics and high-tech industries, necessitating additional industrial land to continue attracting investment.

The BJFEZ Authority has actively pursued designating more Free Economic Zones while also relaxing the building coverage ratio and building-to-land ratios to enhance the efficiency of existing industrial sites. According to Article 9(2) of the Special Act on Designation and Management of Free Economic Zones, the building coverage ratio and building-to-land ratios in an FEZ can be determined by urban planning ordinances within a range of 150/100, despite Articles 77 or 78 of the National Land Planning and Utilization Act.

While other FEZ authorities have implemented regulations to relax these ratios under the municipal ordiances, Busan and Changwon lacked relevant ordinances, prompting the need for revisions to existing urban planning regulations governing land use and building restrictions.

In response, the BJFEZ Authority has consistently recommended amendments to city planning ordinances in both cities since June of last year. This effort aims to attract high-density mixed-use development and excellent companies by improving land utilization. The process involved several steps: ▲ legislative preview and opinion inquiry, ▲ legislative review by the Regulatory Reform Commission, ▲ deliberation by the Regulatory Rules Review Committee, and finally, submission of the draft ordinance to the parliament. As a result, the maximum building coverage ratio and building-to-land ratios in the Busan-Jinhae Free Economic Zone have been increased by 1.5 times, although the maximum building coverage ratio cannot exceed 80%.

"This amendment to the Urban Planning Ordinance is expected to facilitate high-density and efficient land use," said Kim Ki-young, commissioner of the BJFEZ Authority. "The authority will continue to revitalize the local economy by eliminating regulations that hinder company growth, thereby enhancing competitiveness and attracting new investments."