KJC Korea
Journal Central

The industrialization and urbanization of Korea in the 20th century has brought about the collapse of rural region. So, it is claimed that the balanced territorial land development would not be possible without the rehabilitation of the rural region. This paper suggests a model of 'the urban-rural circulatory system' as a new model of rural development. This model emphasizes the buildup of the endogeny of the rural region through the linkage among regions, especially the linkage between urban and rural. Above all, we give attention to the 'circulatory linkage' between urban and rural. This model supposes a circulatory structure which enables the circulation of labour, money and products as well as the circulation of natural resources and the recycling of wastes between urban and rural. However, the circulatory structure can be attained only when the mutual and complementary relationship between the urban and rural functions is made. For this circulatory structure, the policy priority must be given to the policies to secure the rural functions. This is termed as the principle of 'the local(rural) initiative'. This paper also deliberately suggests 'the Law of Circulatory Society Promotion' for the realization of circulatory society on the base of the local initiative principle.

The Nagoya in Japan introduced special districts, ‘the Special District for Restriction Use on Upper Floors’ with the object of housing supply at city center and increasing the number of resident population by deregulation on the floor area ratio of residential buildings. By the system, the designated floor area ration is loosened from 400% to 500%, and floor more than five stories of buildings are restricted to residential use. This study intends to examine the effect of the system that has been introduced for housing supply and increasing of resident population, and providing basic information to promote the city center residence in the future. This study analyzes the effect of the system in two aspects, which are ① change in residential use, and ② intensive land use available with the loosening of floor area ratio. In analyzing the case this study investigates the change of floor area in the study districts and the change of floor area by use. Also it examines how effective the incentive of floor area ratio under the system has been based on the change of floor area ratio of apartments built after 1996. The analysis results show the effect has appeared after introduction of the system from a viewpoint of the housing supply and the efficient use of floor area ratio.

On December 26, 2004, a strong earthquake hit Indonesia's Banda Atjeh area. It severly damaged countries around Indian Ocean, as well as some in Africa. Korea is not an exception for this kind of natural disaster. In fact, it routinely suffers from storms and floods, such as typhoon Rusa of August 2002 and typhoon Maemi of September 2003. Besides, earthquake occurs more frequently in the recent days. Japan, exposed to many natural disasters as well, however, is not really vulnerable to serious damages. This is attributable to systematic preparation in urban planning aspects. In fact, Japan's systematic approaches to disaster management in urban planning just traces back to 1995, in which Hanshin-Awaji Earthquake was occurred. On those backgrounds and goals, this research analyses Japanese urban planning case in four perspectives: policy, investigation, plan, and project. The research draws implications and conclusions on this analysis. As a conclusion, the article suggests two ways of disaster management into Korean urban planning: strengthening its institutional position and complementing its context.

This paper tries to identify Busan's level of urban infrastructure when it is compared to the other sister cities around the world. Busan has a strong competitiveness in fields of the Shipping Logistics Treatment(SLT) and Information Technology(IT) among six subdivided fields, but other fields are ranked below the average level. Therefore, for the higher competitiveness, Busan Metropolitan city has to have bringing-up policy relating to Shipping Logistics Treatment and Information Technology, and also, some urban infrastructure. For examples first, new international airport allows strategically for Busan to make world city. Existing airport is so narrow in comparison with other international airports in the world, and there are some risks in nature and treating volume to meet the Southern needs. Second, world class theater is needed to have competitiveness to perform a lot of cultural tasks. Finally, more then anything else the citizens mind to the world is more important for bringing up the competitiveness rather than to have world class urban infrastructure.

In Korea public-private mixed-development projects recently have attracted much interests, where public land developers provide land and private developers provide payment assurance, their know-hows in real estate development and marketing. However, in the near future such public-private mixed developments have much risk that futhre profitability may decline. To face and overcome such risks in the future, real estate securitization can be very useful by dividing future risks to inverstors and financial institutions and by providing various financial sources. For this purpose, this paper proposes various options including REITs, Real Estate Fund, and ABS(Assest Backed Securities).

Recently, the rental housing market in Korea has experienced substantial changes in preferred rental contracts between Chonsei and monthly-rent-with-variable-deposit. Until a few years ago, Chonsei has been a dominant rental contract. However, for the recent years, monthly-rent-with-variable-deposit structure has taken a substantial portion of rental contracts. In this paper, based on an investor's viewpoint, we attempt to analyze the determinants of the relative ratio between Chonsei rental contract and monthly-rent-with-variable-deposit rental contract. It is theoretically suggested that the rate of return on equity investment is critical to a landlord's preferred rental contract and that not only Chonsei-to-monthly-rent conversion rate but also the expected house price appreciation rate, the ratio of sale price to Chonsei deposit, and the ratio of sale price to the deposit accompanied by monthly rent are the important determinants of the rates of return on equity investment. Our empirical results show that the expected house price appreciation rate, Chonsei-to-monthly-rent conversion rate, and ratio of sale price to Chonsei deposit are statistically significant explanatory variables. While Chonsei-to-monthly-rent conversion rate negatively affects the relative ratio of Chonsei to monthly-rent-with-variable-deposit contracts, the expected house price appreciation rate and the ratio of sale price to Chonsei deposit positively influence the relative ratio between Chonsei to monthly-rent -with-variable-deposit contracts. It turns out that these results are very robust regardless of the regions under consideration.

Recently, the government has introduced a long term rental housing system and is spearheading a plan to expand housing with involvement of private sector. With this backdrop, this study aims to see whether profitability goes up in proportion with investment risk as project periods tend to be elongated; to search for ways to increase the profitability; and ultimately to help provide stable foundation for smooth implementation of the project. By utilizing the discounted cash flow analysis methods, this study compares profitability of the long term rental housing project with that of existing 5-year project. The analysis shows that 60㎡ size is better in profitability than 85㎡. Based on a discount rate at 20% of 5-year project's IRR, both of them are unfeasible. In the sensitivity analysis, profitability of the long term project responded highly elastically to market variables such as price fluctuation. Considering the effect of market variables on the profitability, the discount rate adjusted by the risk of long-term may exceed the above rate. As the result of the sensitivity study, proposals are made to improve profitability, including raise of construction density described as the ratio of gross building area to lot size, revision of housing fund standards on amount and interest, additional discount of land price and reduction of age-life for depreciation. Additionally this study stresses stabilization of market, the inducement of the participation of REITs in the project, and the liquidation of cash flow by ABS to minimize the risk from long-term investment.