Nowon-gu Selected as the Best Institution Nationwide in Non-Tax Revenue Collection Administrative Evaluation

Sale of Public Property Applies Actual Real Estate Transaction Prices Instead of Traditional Practices... Ensuring Objectivity and Appropriateness in Estimated Sale Prices... Utilizing Land Administration and Land Price Survey Systems to Apply Land Use Zones, Shape, Orientation, Land Use, and Elevation

[Asia Economy Reporter Jong-il Park] Nowon-gu (District Mayor Oh Seung-rok) was selected as the best institution nationwide in the ‘2020 Non-Tax Revenue Collection Administrative Evaluation’ hosted by the Ministry of the Interior and Safety.

This evaluation, conducted by the Ministry of the Interior and Safety since 2010, aims to select local governments that have made efforts to secure non-tax revenue and prevent arrears, and to disseminate excellent cases. This year, 107 local governments nationwide submitted various ideas for non-tax revenue collection.

Nowon-gu was recognized as an excellent case for reflecting the market price of surrounding land when selling public property, thereby promoting rationality in local financial management.

Until now, the sale of public property had almost no comparison targets, so it was customary for the Public Property Deliberation Committee to approve the arithmetic average amount appraised by two or more certified appraisers.

The problem was that while local governments purchase land from private individuals at market prices through negotiation with landowners, public property, which can only be purchased by a few such as long-term occupants of national and public land, was sold at prices lower than the surrounding market price, allowing immediate speculative gains upon purchase, which was unfair.

Article 27, Paragraph 1 of the Enforcement Decree of the Act on the Management of Public Property and Goods also states that “when selling or exchanging general property, the estimated price of the property shall be determined and disclosed by the head of the local government at market price,” but there were practical difficulties in applying this.

To improve this, the district decided to utilize actual price information accumulated from reports submitted to the district office during real estate transactions.

They extract at least two transaction prices of surrounding land similarly used to the public land to be sold, calculate the arithmetic average, and submit it to the Public Property Deliberation Committee. The expected sale price of the public land is then determined by comparing it with the amount calculated by the existing appraisal method. This allows for more in-depth deliberation.

Efforts were also made to ensure the appropriateness and objectivity of the expected sale price. Using the ‘Land Administration and Land Price Survey System’ operated by the district, factors such as land use zone, land shape, direction, land use, land elevation, and even land price fluctuation rates were applied.

Additionally, monitoring was conducted by visiting certified real estate agencies in the area around the public land to be sold.

As a result of this improved method of calculating the sale price of public property, the district’s public property sale proceeds over the past three years increased by 13.7% to 4.29 billion KRW, compared to 3.77 billion KRW when sold only based on the appraisal value, resulting in an increase of 519 million KRW in revenue.

District Mayor Oh Seung-rok said, “As we have been recognized as an excellent case in public property management through proactive administration departing from existing practices, we will continue to carry out rational real estate administration in the future.”

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