SH Corporation Envisions Global Leader with Competitive Edge
- Implementing urban development projects in keeping with public interests

In the past, many urban development projects in Seoul were implemented on a small scale by the private sector and with an emphasis on profitability and convenience, becoming a target of public criticism over a shortage of urban infrastructure and worsened urban environmental conditions.
SH Corporation is exerting itself to eradicate side-effects stemming from the undertaking of such development projects, initiated by the private sector as well as to realize systematic, comprehensive urban development by enhancing the role of the public sector - establishing a master plan for the development of large-scale undeveloped areas and drawing the public sector's basic development plans and installing public facilities in the existing development districts.
The corporation is trying to realize the purpose of its establishment as a public corporation by participating in such projects aimed at easing the disparity among districts, while grafting its know-how the corporation has acquired in such large-scale public undertakings ad housing development projects into new business arenas.
After the year 2010 when the 100,000-rental homes unit construction plan is completed, SH Corporation now set its sights on diversifying urban infrastructure projects in a bid to explore new demands stemming from an acceleration of regional autonomy and globalization and to make a foray into foreign markets as a global company with a competitive edge.
The following are the excerpts of an interview Kim Seung-kyu, president of SH Corporation had with NewsWorld recently.
Question: Could you tell our readers about the specifics, including SH Corporation's responsibilities and roles in Seoul City's plan to construct 100,000 rental-housing units?
Answer: SH Corporation plans to construction 100,000 public rental-housing units by 2006. The plan is aimed at shifting the concept of housing from owning to residing by meeting the demand for rental houses and securing a stable supply of homes.
Take a look into how the housing construction plan is implemented. The plan calls for diversifying the size of apartment units in a bid to relieve conflicts among districts and strata, instead of concentrating construction projects in given areas. It is also designed to create a housing space with comfortable living conditions by supplying high-quality rentals, offering a pleasant living environment and securing enough cultural and welfare amenities.
What SH Corporation does in the 100,000-unit construction plan, one of the tasks the Seoul Metropolitan Government has pushed, is that the corporation is spearheading all arenas, except for policy-making things such as the lifting of green belt restrictions and approval of project plans, acquisition of housing sites, land compensation, apartment construction, and housing supply.
The public housing construction scheme is divided into two stages. As part of the first stage plan, 37,705 public housing units have been already built or under construction. They include 15,486 rental-housing units built under redevelopment projects, 7,510 units in such residential development areas as Sangam-dong Construction Project Section II and III, Jangwoel, Balsan and Jangji areas, 600 rental units in Majang-dong, and 12,858 units in such areas as the Eunpyeong District where green belt restrictions are lifted at an early stage. Besides the fist-stage, new projects for constructing 20,000 units in nine districts, 950 units in the Junggae area and 4,398 rental units under the redevelopment projects have been launched this year under the second-stage plan. And projects for building 9,801 units in the areas where green belt restrictions are lifted and 2,740 units in the former sites for housing public facilities will be implemented from 2005 as part of the city's bid to build up a stable housing infrastructure.
Q: Could you explain the ONew TownO development projects?
A: The term 'New Town' refers to the name of Seoul City's administrative policy on renovating environmental conditions of the existing boroughs, not that of a legal or academic concept.
The New Town project is a new urban development method designed to correct such woes as disorderly redevelopment practices brought about by the private-sector-initiated projects. The urban development scheme is aimed at not only renovating or upgrading just its urban structure but also creating communities in which diverse strata of people and households reside altogether.
Under the New Town project, the public sector is responsible for drawing up basic development plans in areas within neighborhood living spheres, including districts clustered with dilapidated house, while the construction field is handled by the private or public sector.
The principle of the New Tow scheme is that development plans are established taking into account regionally characteristics and ecological earth surface conditions, while basic urban infrastructure is secured on top of improved efficiency in land utilization and facility usage.
The scheme puts priority on making street networks pedestrian-oriented, creating communities, improving educational conditions and upgrading welfare of residents. It calls for deciding development policy specifics through consultations with residents.
The following are the features of the New Town project.
- Widening the sphere of projects: Development plans are drawn based on sub-districts, each combining several residential areas. In reality, it has a precondition that several residential areas will be redeveloped into an identical living sphere.
- Strengthening the public sector's roles: The public sector takes the initiative in drawing up a master plan for development, while planning and installing such public infrastructure amenities as roads, parks, and public facilities for residents.
- Private experts taking the initiative and securing partnership: Negotiating interests with civilians in the process of redevelopment, while grafting technology and expertise into the public sector.
- Employing comprehensive, dimensional designs: Working out comprehensive, multiple-dimension plans on land utilization, securing SOC and public facilities, handling traffic flow and designing outdoor space. In particular, it purses a high standard of development and diversity in terms of architectural and outside design plans.
- Combing diverse urban development methods: Changing project types according to regional conditions - residential-oriented, urban-type and new town-style projects, while diversifying such development types as redevelopment and urban development.
Most of the urban development projects in Seoul had been implemented on a small scale by the private sector and with an emphasis into profitability and convenience, so it led to a shortage of urban infrastructure, degenerating urban environmental conditions. The reason SH Corporation comes to participate in experimental projects is to eradicate side-effects stemming from the undertaking of such development projects, initiated by the private sector as well as to realize systematic, comprehensive urban development by enhancing the role of the public sector, establishing a master plan for the development of large-scale undeveloped areas and drawing the public sector's basic development plans and installing public facilities in the existing development districts.
SH Corporation can realize the purpose of its establishment as a public corporation by participating in such projects aimed at easing disparity among districts. The corporation has the merits of grafting its know-house the corporation has acquired in such large-scale public undertakings ad housing development projects into new business arenas.
SH Corporation targets districts clustered with dilapidated houses where development projects are under way or soon to be launched in accordance with the necessity for working out master plans on the similar living spheres, under-developed or less developed areas and regions where comprehensive urban functions need to be developed to correct disorderly development of the existing downtown neighborhoods and accommodate combined functions - residential and commercial.
Q: What about the Digital Media City (DMC)?
A: Digital Medial City is a project designed to develop a residential zone in Sangam-dong, Seoul, as one of the best business centers in Northeast Asia that will accommodate a digital industrial complex and an industry-university-research institute joint research center in the field of digital media technology.
The project, being carried out from May 2002 through 2010, calls for securing 240,587 sq. meters in land for public use and parcel out 329,151 sq. meters to domestic enterprises and foreign investors under paid contracts. DMC intends to attract broadcasting, film/animation, games, music, and other digital contents; distribution of digital contents and consumption industries; software and IT-related service industries; and IT, BT and NT research and manufacturing businesses.
Take a look into the sale of the site for DMC. Out of 48 plots covering a total of 329,151 sq. meters, to be parceled out under paid contracts, the supply of 23 lots amounting to 119,913 sq. meters has been finalized. The sale of 13 parcels of 45,670 sq. meters was signed, while negotiations are under way on that of the remaining 10 plots of 74,243 sq. meters.
Public applications on the sale of 16 plots of 135,633 sq. meters in the recommended zone were made in September, and preferred bidders will be determined between October and November this year.
Nine plots of 73,605 sq. meters in land for ordinary use will be sold by year-end or early next year. SH Corporation is working on its own projects within DMC - construction of rented apartments for foreigners in support of attracting foreign investments, a venture office building for nurturing the venture industry and a high-tech industrial center for housing manufacturing companies.
Q: Could you elaborate on community energy projects in DMC?
A: Community energy projects have been developed by Northern European countries as part of efforts to maximize energy efficiency and create a pleasant environment. The local heating system utilizing combined cycle power generation has been in vogue. It was in November 1985 that Korea introduced the local heating system to supply energy to the newly built borough of Mokdong for the first time in Korea. The Seoul City Metropolitan Government dedicated Mokdong Combined Cycle Power Plant on Dec. 31, 1996 and the Nowon Combined Cycle Power Plant on Dec. 31, 1996 under a deal made with Korea Energy Management Corporation, a public company commissioned as a community energy supplier during the period between 1984 and 1988.
Community energy projects had been turned over to the private sector during the period between 1999 and 2001, but the commissioned company, Seoul Energy suffered from chronic operational deficits. Since January 2002, SH Corporation has been undertaking community energy projects under a contract with the city government. SH Corporation is now in charge of supplying heat to 94,000 households in the Gangseo area and 103,000 households in the Nowon district.
Community energy projects SH Corporation has been undertaking or is planning during this year include installing heat transport pipelines totaling 670 meters in length, including the Yangcheon and Gangseo ward areas and building a boiler with a capacity of 150 t/h (75Gcal/h) designed to meet the demands in the Mokdong area and expanding heat-producing facilities for the Gangseo area as well as repairing and refurbishing such facilities as turbines and sound insulation facilities.
I understand that community energy projects need to be assimilated in consideration of energy conservation and a environmentally-friendly aspect at a time when 95 percent of the nation's energy consumption is imported in an era of crude oil hikes and environmental concern is getting higher around the world.
Q: What is SH CorporationOs management strategies and vision?
A: SH Corporation's long-term development strategies call for upgrading the existing businesses, exploring new business arenas, and foreign markets under its diversification scheme. The corporation has employed management renovation strategies aimed at reinforcing its capabilities.
SH Corporation is now allowed to conduct overseas construction projects, attract foreign investments, and participate in foreign-invested projects in accordance with an amendment of the decree on the establishment of the corporation.
Seoul Development Institute has been commissioned to conduct a project, dubbed "Vision SH2010", aimed at upgrading its organizational capabilities and exploring its growth potential after the year 2010 when such key construction undertakings as New Town project and construction of 100,000 rented apartments are expected to be completed. SH Corporation envisions a global company pursuing environmentally-friendly urban space and customer's happiness by respecting human beings and environment, strengthening a competitive edge, and establishing amicable relations between management and labor.
Specifically speaking, SH Corporation is poised to diversify urban infrastructure projects in a bid to explore new demands stemming from an acceleration of regional autonomy and globalization and make a foray into foreign markets as a global company with a competitive edge after the year 2010. The corporation plans to proactively participate in new business arenas as a company specializing in constructing cities, whose demand is expected to rise in the event of inter-Korean unification.
Q: What will you focus on in the new corporate identity program changing the name of your company from Seoul Metropolitan Development Corporation to SH Corporation?
A: The new CI for SH Corporation is aimed at symbolizing its management strategies and global corporate value on top of shedding the former negative image of impairing the environment. SH Corporation literally indicates a combination of the initials of Seoul and Housing meaning a representative company spearheading Seoul's new construction culture. HOUSING, a combination of Humanity, Openness, Unification, Specialty, Information Management, Nature, and Globalization, connotes management policies respecting human beings and the environment, strengthening a competitive edge in response to changes of the times and establishing cooperative ties between management and labor. nw