Gimcheon-si Collects 34.2 Billion KRW in Innovation City Development Charges... LH and Gyeongbuk Development Corporation File Administrative Lawsuit in Dispute

National 17.1 Billion Won, Kimcheon-si 17.1 Billion Won Attributed

[Asia Economy Yeongnam Reporting Headquarters Reporter Choi Jae-ho] On the 15th, Gimcheon City in Gyeongbuk announced that it has collected 34.2 billion KRW in development charges from the Yulgok-dong area as part of the Gimcheon Innovation City development project.

Development charges are a system imposed by the government on project implementers who gain profits from land development. Development profit is calculated as the land price after the completion of the development project minus the land price before development and the costs incurred for development, excluding the normal land price increase. 25% of the development profit is levied as the development charge.

In June, Gimcheon City imposed 30.4 billion KRW on Korea Land and Housing Corporation (LH), the project implementer of the Innovation City, and 3.8 billion KRW on Gyeongbuk Development Corporation. Of the total imposed amount of 34.2 billion KRW, 50% (approximately 17.1 billion KRW) goes to the national government, and the remaining 17.1 billion KRW is allocated to Gimcheon City.

However, the project implementers, Korea Land and Housing Corporation (LH) and Gyeongbuk Development Corporation, have filed administrative lawsuits against Gimcheon City to cancel the imposition of the development charges, and the court's judgment is now drawing attention.

Mayor Kim Chung-seop stated, "Although the administrative lawsuit is still ongoing, we will do our best to ensure that the secured development charges can be efficiently used as a budget to resolve pressing local issues such as improving the conditions of the Innovation City."

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