In recent years, the change of urban function and the decrease in birth rate have given rise to merge, abolition and relocation of the existing schools. This study explores the possibilities for various land utilizations of disused school sites, aims to propose the effective asset management and the proper development methodology. Firstly it examines the status of small class school in urban area and the linkage complex development method. Among various methods, it compares the validity between the closed school management and public asset management method. In addition, it analyses the national finance method and public-private partnership investment as a proper development methodology to ensure both the common-benefit and profitable business. As a result of study, it prposes the BTO(build-transfer-operate) method to use effectively the disused school sites in urban area.