Improvement of Public Land Supply Method from 'Lottery → Evaluation'... Activation of Profit Sharing

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 21st that, in accordance with the revision of the 'Public Housing Special Act Enforcement Decree,' a competitive land supply system that evaluates rental housing construction plans and profit-sharing levels of housing construction businesses participating in public land supply bids will be fully implemented starting from the 23rd.

This newly implemented system is part of the 'Support Measures for Housing Stability for Low-income and Middle-class' announced last November, specifically as an improvement plan for quality lifelong housing and public land supply systems.

The system changes from the existing 'lottery' method to a 'competitive' method that evaluates business plans including social contributions, aiming to allow the general public to also enjoy development profits.

First, the criteria for land supply will be diversified. The existing land supply system was based on a lottery principle, which caused many side effects such as so-called 'swarm bidding' using affiliated companies. Going forward, considering factors such as land use, supply recipients, and land price stability, the supply method can be decided not only by lottery but also by competitive bidding or private contracts.

The social mix combining private sales and public rental housing will also be expanded. To expand social mixing within public housing districts and supply high-quality public rental housing, plans to construct some rental housing units within privately sold housing sites will be evaluated to supply housing sites.

Furthermore, the profit-sharing system for development projects involving the general public will be revitalized. Until now, land developed through public development projects has been perceived as an area only for construction companies or certain asset owners due to high prices. However, going forward, land will be supplied by evaluating business plans of public offering operators that facilitate general public participation in profitable project districts.

The Ministry of Land, Infrastructure and Transport plans to establish the public offering methods, procedures, and purchase criteria for selecting land supply recipients within the first half of the year and will begin full-scale land supply from the second half.

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