Before Sejong Era Institutions' 'Special Supply' Stricter... Duplicate Supply Also Not Allowed

Non-Capital Region Relocated Institutions, Special Supply Restrictions
Special Supply Ratio Reduced to 20% from Next Year
General Company Investment Requirement Increased from 3 Billion to 10 Billion Won

[Asia Economy Reporter Moon Jiwon] The special supply (special allocation) system for institutions relocating to Sejong City, which had been subject to preferential treatment controversies, will be strengthened. The scope will be strictly limited to cases where buildings are constructed or purchased in the metropolitan area and headquarters are relocated, and the special supply ratio will be reduced to 20% starting next year, one year earlier than planned.

The Ministry of Land, Infrastructure and Transport and the Administrative City Construction Agency announced on the 5th that they have prepared detailed implementation plans for the "Reorganization of the Special Supply System for Employees of Institutions Relocating to Sejong City" as a follow-up measure to the "Measures to Eradicate Real Estate Speculation and Prevent Recurrence" announced on the 29th of last month.

This revision aims to improve the problems of the special supply system for relocating institutions, which has been in operation for 10 years since April 1, 2011.

First, to strengthen the purpose of the special supply for relocating institutions, special supply will be restricted for institutions relocating from non-metropolitan areas. Also, newly established headquarters or branches in the Happy City or branches relocated from other regions will be excluded from eligibility for special supply.

Accordingly, in the future, special supply will be limited to cases where the headquarters or main office is relocated by constructing or purchasing buildings in the metropolitan area. Although some exceptions may be allowed for relocations from the metropolitan area through legal amendments and Cabinet approval, no exceptions will apply to relocations from non-metropolitan areas.

Special supply requirements for each institution will also be strengthened. The investment requirement for general companies will be raised from the existing 3 billion KRW to 10 billion KRW, and a 3 billion KRW investment requirement will be newly established for venture companies. Land purchase costs and construction costs are excluded when calculating investment amounts.

Hospitals must be general hospitals with 500 or more beds to qualify for special supply. Research institutions are limited to those securing 100 or more full-time research personnel, and international organizations are excluded from special supply due to a high proportion of leased residences.

The special supply ratio will be reduced one year earlier than the current plan. Previously, it was scheduled to decrease from 40% this year to 30% next year and 20% from 2023 onward, but the improvement plan reduces it to 20% starting next year.

Furthermore, currently, there is no restriction on overlapping special supply between multi-child families, newlyweds, institution recommendations, and special supply for relocating institutions, allowing individuals to receive special supply more than once through workplace relocation, but going forward, it will be limited to one time per person regardless of the target or type.

The "Detailed Operation Standards for Special Housing Supply in Happy City" and the "Special Supply Ratio for Employees of Institutions Relocating to Happy City Planned Areas" were announced for administrative notice on the same day, and the higher regulation, the "Rules on Housing Supply," is scheduled for legislative notice within this month.

The Happy City Construction Agency will completely revise the detailed operation standards for special supply and strengthen post-management. If there are any opinions on the revision plan, they can be submitted by mail, fax, or email by the 24th of this month.

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