Funding Plan for Urban Convergence Special Zones: Focusing on the Case of Daejeon Urban Convergence Special Zone

The full-scale population decline is causing concentration in the metropolitan area and population decline in local areas. As the problem of lack of growth engine has come to the fore, the government is promoting the selection of ‘urban fusion special zones’ centered on the five major metropolitan cities in the provinces and the restoration of the original city center. The ‘urban fusion special zones’ show characteristics of urban regeneration, and the important thing is the feasible financing method. This study proposes the ‘REITs utilization method’ as a financing method for the ‘Daejeon Metropolitan City Urban Fusion Special Zone’ considering the location conditions with the metropolitan area and industrial characteristics. It explains the importance of the ‘REITs dividend’ proposal and public-private cooperation in the ‘REIT profit model’ during the redevelopment project period. Based on the MozaReits structure, it is further emphasized that the increased role of ‘anchor REITs’ and ‘guarantee agency’ is important in terms of business stability. It proposes the REITs structure by structuring the transparency, publicness, and public-private cooperation system with REITs as the project implementer. Compared to other business methods, the ‘REITs method’ is a business method with high feasibility when developing the ‘urban fusion special zone’ based on publicness. We hope that follow-up research will be conducted on ‘REITs utilization plans’ based on business viability.