Gyeonggi-do to Introduce 'Public Development Profit Return to Residents System' in Early October

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province will be able to use profits from public development projects for rental housing or public facilities to benefit residents.

On the 15th, Gyeonggi Province announced that the "Ordinance on the Establishment and Operation of the Gyeonggi Province Development Profit Resident Return Fund" will be promulgated and enforced early next month after going through the Ordinance and Regulation Deliberation Committee.

The ordinance mainly establishes a Development Profit Resident Return Fund to use profits generated from public development by Gyeonggi Housing and Urban Corporation (GH) for projects benefiting residents.

According to the ordinance, the province will accumulate dividends received annually from GH into the Resident Return Fund. This year, for the first time, the province will receive 35 billion KRW in dividend profits from GH around the end of the year. The province expects the total dividends from GH to reach 146.8 billion KRW by 2025. The province explained that this money will be used to expand rental housing and public facilities for residents.

In addition to GH dividend profits, the province is reviewing additional sources of funds that can be secured for the Resident Return Fund.

The province plans to prioritize using the fund for rental housing supply projects and support projects for underdeveloped areas, which are key projects promoted by Gyeonggi Province. The scope of use will be expanded depending on the size of the fund in the future.

Hong Ji-seon, Director of the Urban Housing Office of the province, said, "We have secured practical and concrete resources to realize the policy of returning public development profits to residents," and added, "We will do our best to ensure that the accumulated fund is effectively used to improve the quality of life of residents."

Meanwhile, the amendment to the "Special Act on Public Housing," which can be linked to the "Public Development Profit Resident Return System," is currently pending in the National Assembly.

The amendment mandates by law the reinvestment of development profits from public land development projects through agreements between local governments and project implementers, aiming to prevent unnecessary disputes and encourage active reinvestment by project implementers.

The province explained that if the amendment passes the National Assembly, project implementers will be required to allocate part of the development profits to public and cultural sports facilities, aligning with the purpose of the Resident Return System.

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