“Even in the four years since the ‘Daejangdong Prevention Act’ was implemented, there have been zero direct inspections of public-private joint development projects.”

Kim Mi-ae "We changed the system, but there is no performance from the Ministry of Land, Infrastructure and Transport... We need to check the actual situation."

(Seoul = Yonhap News) Reporter Noh Seon-woong = Four years have passed since the revised Urban Development Act was implemented in the wake of the so-called 'Daejang-dong incident', which sparked a controversy over preferential treatment due to the enormous excessive profits of private operators, but it was found that there were no direct inspections by the Ministry of Land, Infrastructure and Transport or requests for inspections by specialized agencies.

According to the 'data on the management, supervision and development profit distribution of public-private joint urban development projects' submitted by the Ministry of Land, Infrastructure and Transport by Kim Mi-ae, a People Power Party member of the National Assembly's Land, Infrastructure and Transport Committee, on the 18th, since the enforcement of the revised law, the number of cases in which the Ministry of Land, Infrastructure and Transport has directly inspected business sites or requested inspections from specialized agencies has been confirmed to be zero.

The revised Urban Development Act, which came into effect on June 22, 2022, was designed to complement the limitations in which development profits were concentrated in private equity holders during the Seongnam Daejang-dong development project. When promoting a public-private joint project, the key is to increase the procedural transparency of the project by clearly defining the criteria for selecting private participants, the upper limit on profit rates, and the procedure for concluding agreements.

A total of 5 cases (4 cases in 2024, 1 case in 2026) of 'agreement content adequacy review' submitted by the Ministry of Land, Infrastructure and Transport in the pre-project start stage were counted. However, Rep. Kim pointed out that since the review of the agreement in the early stages of the project and the 'project inspection' that checks the implementation and distribution status during the actual project implementation process are separate, it is necessary to verify whether the supervisory authority is operating effectively during the project progress.

Rep. Kim said, “After the Daejang-dong incident, the National Assembly improved the system to reasonably limit the profits the private sector takes from public-private joint development projects and strengthen public supervision,” and added, “The Ministry of Land, Infrastructure and Transport must quickly inspect the inspection system and implementation of agreements and the distribution and recovery of development profits for public-private joint urban development projects across the country, including whether the strengthened supervisory authority is operating on the field.”