**5. Conclusions**

This study analysed the factors that should be considered when selecting a development project site through a comparative analysis between private and public development projects to ensure the economic feasibility and profitability of public development projects among real estate development projects. Most public development projects focus on total project cost before the start of construction, in which most resources are invested, and there has been less interest in the adequacy of project site selection and operating expenses arising in the operational stage. In this context, the main environmental factors considered in public and private development projects were examined, and through direct comparative analysis, their characteristics, similarities, and differences were identified and the implications of the findings presented.

For public development projects, among the projects requested to undergo Central Investment Appraisal from 2016 to 2019, which is a preliminary procedure for large-scale projects in South Korea, 117 projects were recommended for additional review on location suitability and environmental factors such as similar and competing facilities to avoid duplicate investment. For private development projects, among the 484 sites of insolvent PF projects, project characteristics were investigated for the 32 business sites [12] determined by KAMCO, which were normalised and underwent bidding in the private sector. To this end, a model was constructed to select variables applicable to each project entity based on a previous study. In the variable selection process, for both types of development projects, the sphere of influence within a radius of 5-km was set to consider environmental factors and select the final variables. The results showed that for large total project costs and large-scale projects, both the public and private sectors showed positive responses to project development. This finding is similar to the trend in which various types of facilities are accommodated in a single building or for mixed-use projects for public social overhead capital (SOC) or private development projects. That is, through economies of scale, operating costs and rental fees can be saved by integrating facilities, with diverse types of facilities being enjoyed in a single building. Furthermore, in preparation for the post-COVID-19 period, this result also reflects a change in design development, in which the radius of action is increased with the expansion of public spaces. These results indicate that both the public and private sectors consider that increases in total project cost and size augmen<sup>t</sup> the possibility of success for a development project. In the analysis results, subways/train stations and large-scale supermarkets are important factors to consider. For public development projects, the more adjacent subways/train stations are available, the lower the approval rate is. This aspect is true because station areas are usually equipped

with basic infrastructure, and it is thus not reasonable to input additional public resources in such areas. In addition, these results reflect the recent trend of promoting development projects in areas with weak infrastructure as part of the balanced regional development and revitalisation of old city centres in South Korea. Another point to consider is that most areas around subways/train stations are private land rather than public. Therefore, to prevent negative effects such as civil complaints and project delays occurring in the process of purchasing private land, the public sector is thought to prefer developments on public land.

In contrast, for the private sector, the bidding success rate increased. This difference is interpreted as the expectation for additional demand derived from the accumulation of migrant and resident populations around the station area. This result deserves attention for public development projects as well. Regarding the construction of facilities, in all cases, the number of facilities is not the only relevant one, but also the fact that the areas are equipped with basic infrastructure that can provide adequate services in proportion to the population in the area. Therefore, for project areas such as sports, culture, and tourism, which can generate income for the public sector, demand should be estimated by considering the competing or duplicate facilities adjacent to the station area while not interfering with the private sector. If there are cases where the public requires the use of a facility, but it cannot be used because of inadequate SOC and infrastructure, this facility is provided by the public sector to improve the quality of life and enhance residential welfare. The rate of approval increased when there for many adjacent large-scale supermarkets, whereas the rate of bidding success decreased in the private sector. In the private sector, it is the result of concerns over the increasing percentage of supply rather than the additional demand owing to excessive development around the project site and unsold estate owing to an increase in sale price. In the public sector, unlike for subways/train stations, the rate of approval increased when there were many large-scale supermarkets adjacent to the project site. This result indicates a difference in approaches between the public and private sectors, in that for project areas with a strong public interest, it is difficult to consider whether it is wrong to conduct a development project in an area. This perspective is because if the private sector currently tends to avoid development projects adjacent to large-scale supermarkets, it is possible that it conducts the development project to improve the quality of life for local residents and revitalise the local economy in terms of public interest. Nevertheless, as described above, the public sector should make efforts to reduce the financial burden by seeking ways to obtain the most profits in the operating stage. Additionally, it is possible that there is an area with private development adjacent to a large-scale supermarket already in operation. For the future approval of investment appraisal, preparation is needed in advance to prevent duplicate investment without intruding in private sector projects already in operation.

The significance of this study lies in the following: (1) it examines the key factors for the selection of project sites for public and private development projects in the presence of competing and redundant facilities to avoid duplicate investment issues, and (2) it explores methods to increase the economic feasibility and profitability of public development projects through a direct comparative analysis with private development projects. However, because the purpose and direction of each development project are inconsistent, the same variables could not be applied to both project types. In addition, although the variables were selected using an objective estimation method, it is possible that they may vary depending on the perspectives adopted by public and private development projects. Finally, the results and the actual evaluation of experts may be different, and the inability to consider experts' evaluation is another limitation of this study. If enough data are published in the future, useful results can be derived from multiple perspectives through systematic improvement and supplementation of internal and external factors of development projects.

**Author Contributions:** H.S. conceived, designed, analysed, and wrote this paper. J.K. advised on this research, from concept to writing. All authors have read and agreed to the published version of the manuscript.

**Funding:** This research received no external funding.

**Institutional Review Board Statement:** Not applicable.

**Informed Consent Statement:** Not applicable.

**Data Availability Statement:** Not applicable.

**Acknowledgments:** This work was supported by a research gran<sup>t</sup> from the Kongju National University in 2021.

**Conflicts of Interest:** The authors declare no conflict of interest.
