BUSAN — The Busan-Jinhae Free Economic Zone Authority is reopening bidding for a large office-site project in Myeongji International New Town, aiming to strengthen the district's role as a business hub. Citing a sluggish property market and shifting conditions, the agency has lowered the required main-use ratio and diversified how developers can make community contributions, improving the project's commercial viability to draw private investment.
The authority said on the 14th that it is seeking a developer for Business Facility Site No. 2, a 44,595-square-meter parcel in Myeongji-dong, Gangseo District, Busan.
Zoned as a general commercial area, the site can accommodate knowledge-industry centers, offices and officetels — studio units used as either homes or offices — making it one of the most sought-after parcels in the district. The agency plans to attract knowledge-industry centers along with companies in advanced and core strategic industries, developing Myeongji into a genuine international business center. For this round, it revised the bidding terms to maximize returns for private developers.
Through a change to the district unit plan, the agency cut the mandatory share for main uses such as office facilities to 60% from 70%, while raising the share allowed for secondary, revenue-generating uses to 40% from 30%. The change gives developers more room to configure facilities flexibly according to market conditions.
The project period was also extended to within 10 years from the date the business agreement is signed, allowing for stable development. In line with the consolidation into a single parcel, the agency adjusted the base amount for community development contributions to reflect current conditions and broadened the ways developers can meet the requirement, allowing proposals such as attracting and supporting high-quality companies in addition to the existing cash and in-kind options.
To draw construction firms, developers and other qualified bidders, the agency will hold a briefing session at 2 p.m. on the 21st at the Korea Land & Housing Corporation (LH) Ori building in Bundang District, Seongnam. It will then evaluate development plans, project execution capacity and plans for attracting and managing tenant companies before selecting a preferred bidder in February next year.
"This round focuses on reflecting the changed market environment and guaranteeing the private sector's profitability and autonomy as much as possible," said Park Sung-ho, head of the authority. "We will join hands with a private developer that has strong capabilities and a network for attracting companies, and raise Myeongji's business functions to a higher level."