This paper aims to be obviously the theory and the way of co-operative renewal in the residential built-up areas through a comparative study on two representative cases, Octavia Hill (Ageo city) and Quartie Damour (Kadoma city). As a result, for the progress of co-operative renewal, we recognize not only the necessity of the systematic design “but the process of the situated design”. The one design regulates economic and institutional system, the other design progresses plans continually by that a situation begets a situation and changes human through the horizontal communication among the local authority, the planners and the land owners at the community level. Further it's obviously that we have two approaches to the situated design.“The one is the soft approach that changes a situation and human by the effect of process. The other is the hard approach” that changes a situation and human by the effect of space design.