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|TITLE||Economy-based urban regeneration business strategy|
Economy-based urban regeneration business strategy
As the economy-based urban regeneration pursues both urban development and publicness, it needs to take a business strategy that differentiates from existing profit-oriented urban development projects.
￭ An urban regeneration project is defined as a project undertaken by the public and private sector to achieve urban renewal with financing, land and an implementation body. It undergoes a business transformation process to ensure its profitability, publicity, land procurement and participants meet certain requirements.
￭ The private sector’s participation in the implementation of the project is essential for overcoming the limit of public resources and utilizing creativity of the private sector. As such, it is vital to seek for a business strategy in which resources from the public and private sector can be reasonably invested.
An analysis of the status of business plans by local authorities to apply for support for an urban regeneration project shows that a specific strategy has yet to be mapped out for the implementation of the project.
For the implementation of an urban regeneration project, it should qualify for not only publicity but criteria for an investment vehicle.
￭ The plan for urban revitalization should focus on not only planning about introduction and deployment of functions but a business action plan. Efforts should be made to make an urban regeneration project an investment vehicle.
Policy measures: business strategy
❶ For sustainable implementation of the economy-based urban regeneration, the current conditions should be taken into consideration to explore and promote a business strategy in terms of financing, land procurement and organization of a task force team (TFT).
❷ When it comes to financing, public finance should play a role as a middleman and scale back risk, while it is important to endeavor to harness private funds.
❸ For land procurement, it is necessary to figure out possibility of public land uses and their use methods, while it is significant to continuously explore and make efforts for institutional improvements.
❹ For the organization of a task force team, it is advantageous to establish an SPC (special purpose company) by the public and private sector. A public agency should act as a mediator, planner, supporter and developer in the near term and it should play a role as a planner and mediator in charge of the entire urban regeneration project in the long term.
Soyang Jeong, senior researcher at KRIHS, Jaeyoon Yoo, senior research fellow at KRIHS,
Yoojin Bae, researcher at KRIHS, Yoonjung Choi, researcher at KRIHS
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