Ruling Party Accelerates Development Profit Recovery System

Increase Development Charge Burden Rate to 50%
Core Strategic Industry Special Act Also Approved as Party Policy

Yoon Ho-jung, the floor leader of the Democratic Party of Korea, is attending the party strategy meeting held at the National Assembly on the 4th and delivering opening remarks. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Jeon Jinyoung] The Democratic Party of Korea is accelerating legislation to strengthen the development profit recovery system, a campaign pledge of presidential candidate Lee Jae-myung.

On the afternoon of the 4th, the Democratic Party will hold a party caucus meeting with the agenda of endorsing the National Core Strategic Industry Special Act as the party’s official stance and discussing the development profit recovery system. While there is consensus on the broad framework of recovering development profits, discussions are expected regarding the rate and the extent to which private developers’ profits will be guaranteed. On the same day, Representative Yoon Geon-young said in a radio interview, "When public outrage over the Daejang-dong development project is high, it is the role of the National Assembly to properly carry out institutional reform."

The party leadership is determined to pass the development profit recovery bill within the regular session of the National Assembly to support candidate Lee. Floor leader Yoon Ho-jung emphasized at the morning floor strategy meeting held at the National Assembly, "We will definitely break the vicious cycle of corruption where construction corruption forces and corrupt political powers collude to pocket astronomical incomes and pass the pain onto the people."

Currently, regarding the development profit recovery, bills have been proposed by Representatives Jin Seong-jun and Park Sang-hyuk. The core of Representative Jin’s amendment is to raise the development charge burden rate to around 50%. Jin also proposed an amendment to the Urban Development Act to limit private profits to within 10% of the total project cost in urban development projects involving public project operators. Representative Park’s bill includes raising the development charge burden rate to 45-50% and stipulates that part of the profits must be returned to the public. Both bills share the intent of raising the development charge burden rate close to 50%, but adjustments are expected regarding the recovery and private profit ratios.

At the caucus meeting, the National Core Strategic Industry Special Act to support the semiconductor industry is also expected to be endorsed as the party’s official stance. Although the additional nationwide disaster relief fund requested by candidate Lee is not on the agenda, remarks on this issue are anticipated during the course of the meeting.

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