"Opposed by Ministry of Land, Park Won-soon Urges 'Regionalization of Development Gains' to Widen Gangnam-Gangbuk Imbalance"

"Under the current Enforcement Decree of the National Land Planning Act, Gangnam development profits are monopolized by Gangnam"
Mayor Park "No amendments despite consistent requests since 2015"
Among the expected public contributions of 2.9558 trillion won this year and next, 81% come from the three Gangnam districts
Aggravates Gangnam housing price rise and hinders balanced development... "Please accept the amendment"

Seoul Mayor Park Won-soon is explaining the 'Seoul-type Student Food Package' project, which provides eco-friendly agricultural products and various ingredients to all students in Seoul, at the Seoul City Hall briefing room on the 7th. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Yuri Kim] Park Won-soon, Mayor of Seoul, urged the Ministry of Land, Infrastructure and Transport to amend the Enforcement Decree of the National Land Planning and Utilization Act (National Land Planning and Utilization Act) to enable the 'regionalization of development profits.' He pointed out that allowing the Gangnam area to monopolize development profits as it currently does only fuels real estate prices in the region and does not contribute to the balanced development of Seoul as a whole.

On the 5th, Mayor Park expressed on his Facebook, "Seoul City approved the groundbreaking of the Global Business Center (GBC) on May 6," adding, "It is a pleasure and a welcome event that a wonderful space for citizens will be created, but at the same time, I cannot suppress my frustration." He explained, "The current Enforcement Decree of the National Land Planning Act forces the public contribution fund of 1.7491 trillion won generated from the GBC construction to be used only in Gangnam," and "the development profits from Gangnam are invested solely for Gangnam."

The public contribution fund is a system where Seoul City relaxes regulations such as land use changes and floor area ratio increases for developers' projects and in return receives a portion of the development profits.

Amending the Enforcement Decree of the National Land Planning Act is under the authority of the Ministry of Land, Infrastructure and Transport. Mayor Park stated, "Seoul City has continuously requested the Ministry to expand the use of public contribution funds to 'all of Seoul,' that is, to regionalize development profits," and "we have proposed that development profits from the three Gangnam districts be used in the other 22 non-Gangnam districts as well. We have also delivered Seoul City's proposed amendment to the Enforcement Decree to the Ministry," he said. He added, "Despite more than 20 official letters, meetings, and policy consultations since 2015, the Ministry officials have yet to amend the clause on 'regionalization of development profits,'" criticizing, "Ultimately, this is further exacerbating the imbalance between Gangnam and Gangbuk."

According to Mayor Park, the total expected public contribution fund from this year through next year amounts to 2.9558 trillion won. Of this, the public contribution fund generated in the three Gangnam districts (Gangnam, Seocho, and Songpa) accounts for 81%, or 2.4 trillion won. Mayor Park pointed out, "The three Gangnam districts, where 17% (1.65 million) of Seoul's population lives, are using 81% of the public contribution funds," and "When converted to per capita public contribution benefits, the three Gangnam districts receive 1.45 million won each, while the other 22 districts outside Gangnam receive 68,000 won each."

Mayor Park emphasized, "The more Ministry officials oppose the 'regionalization of development profits,' the more the 'virtuous cycle of development and profits' will continue within the three Gangnam districts. If this results in a greater imbalance between Gangnam and Gangbuk and further increases in Gangnam housing prices, it contradicts President Moon Jae-in's policy direction and national philosophy," urging, "Please accept the amendment to the Enforcement Decree."

Currently, about 450 billion won of the public contribution fund in the three Gangnam districts has not yet been allocated for investment. Mayor Park added, "The Enforcement Decree of the National Land Planning Act must be amended as soon as possible so that this amount can be effectively used for the balanced development of all of Seoul," warning, "If opposition to the Ministry's amendment proposal continues, even this money will ultimately be used for investments only in Gangnam."

This content was produced with the assistance of AI translation services.