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(auri)Architecture & Urban Research Institute

Research Paper

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AURI releases and shares with the general public the original texts of the research reports it produces based on its basic, provisional, commissioned and joint research projects.

Self-supporting Urban Regeneration Methods through Public Private Partnership

Yoon, Zoosun Associate Research Fellow / Lee, Yeokyung Associate Research Fellow

Basic  2017.12.31 Basic Research 2017-8  4P. Hits : 11

Cover and Abstract

According to the prediction of National Statistics Office(2016), the population of Korea will decrease rapidly from the peak of 52,960,000 in 2031, and according to the U.N. Future Report(2009) published by U.N. Future Forum, Korea is expected to have only 20 thousand male population and 30 thousand female population in 2305. Not only the size of population but also the structure of population is
dramatically changing. The working age population, which is basis of tax revenues, has been decreasing since 2017, but the aging population, which is a major factor of tax expenditure, is rapidly increasing. The high ratio of supporting the elderly exacerbates the tax burden of citizens and worsens the financial integrity of local governments. The worsening of local governments' finance causes shrinking and paralysis of public services, which brings about outflow of working age population
functioning as mechanism that accelerates extinction of local communities. The case of Yubari, Hokkaido Japan, which went into bankruptcy 10 years ago due to aggravation of financial condition and decrease of population, directly shows the vicious circle of decline phase of city "decrease of population→aggravation of governments brings about paralysis of public services, so the number of schools decreased from 17 to 3, leaving only one elementary, middle and high school. The municipal hospital was reduced to the municipal clinic, and such departments as surgery, ophthalmology, gastrointestinal internal medicine and otolaryngology were removed, leaving only 5 doctors and 19 sickbeds from 200. There is increasing necessity of public private partnership that maximumly uses the
planning ability, capital strength and operation ability of private as an alternative of local governments' financial aggravation and shrinking of public services. The public private partnership urban restoration(PPP Type urban restoration) does not transfer ownership of common property unlike privatization, but transfers the right of using to private for a certain period of time.

Key words

Urban Regeneration, PPP