Government, bills to improve business speed pending in National Assembly... Minister of Land, Infrastructure and Transport "Supports legislative discussions"
(Seoul = Yonhap News) Reporter Oh Ye-jin = As President Lee Jae-myung emphasized the importance of speeding up public redevelopment projects on the 4th and mentioned the need for various support measures, attention is being paid to whether the project promotion will gain momentum.
On this day, President Lee toured the public redevelopment site in Jangwi-dong, Seongbuk-gu, Seoul and pointed out, "The public redevelopment method has many benefits, but the problem is that it takes too long."
President Lee said that the speed of public redevelopment projects, which take at least 10 to 30 years, must be accelerated and that "if the project is carried out early, it would be good to strengthen various incentives, such as floor area ratio or financial support."
Public redevelopment is a project in which public entities such as Korea Land and Housing Corporation (LH) and Seoul Housing and Urban Development Corporation (SH) participate as implementers to improve business feasibility and ensure speed and transparency.
It is a system that compensates for the shortcomings of private urban development, which is prone to delays due to various corruptions or conflicts of interest, but as President Lee pointed out, it has been pointed out that it is not enough to fulfill its original role of supplying housing because the actual project speed is not enough.
Accordingly, the government announced large-scale improvement measures, such as increasing the floor area ratio incentive to 1.3 times the legal upper limit in last year's September 7 measure, and lowering the consent requirement for designating a project operator from 67% to 60% through this year's August 13 measure.
Last month, the government decided to provide partial interest support for public redevelopment relocation loans of up to 300 million won.
However, in order for this improvement plan to be applied in practice, related laws such as the Urban Development Act must be revised, but it has not yet passed the National Assembly.
The amendment to the Urban Development Act, which was reflected in the 9/7 measures, is awaiting submission to the plenary session, and the amendment to the Urban Maintenance Act, which was reflected in the 8/13 measures, was proposed immediately after the announcement of the measures and is aimed at being processed in this year's regular National Assembly session.
President Lee said, "It seems (the processing of related bills) is being delayed more than expected. Prompt processing of pending laws will greatly help speed up business on the ground."
Minister of Land, Infrastructure and Transport Hong Ji-seon, who accompanied the site, said, "We will actively support National Assembly discussions on key legislation so that system improvements can quickly take effect on the ground."
The market also pointed out that in order to speed up public redevelopment, it is necessary to supplement existing systems in addition to new incentive systems.
Nam Hyeok-woo, a real estate researcher at Woori Bank, said, "Instead of giving a large floor area ratio as an incentive, we encourage residents to make donations, but if there are a lot of donations, the consent rate among residents may drop. There is a need to add various forms of alternatives, such as cash donations."
The government is currently pursuing public redevelopment with a total of 62,600 households in 39 locations in the metropolitan area.
Representatively, Seoul's new district 1 secured project implementation approval for the first time as a public redevelopment project in March of last year, followed by Geoyeo Saemaeul District's project implementation plan approval, and Yangpyeong District 13 receiving approval for a change in the project implementation plan and proceeding with the project.
The remaining project sites are in the process of designating a project implementer, selecting a constructor, selecting a candidate site (11 sites each), and integrated deliberation (3 sites).
