Ministry of Land, Infrastructure and Transport Announces Pilot Project for Cross-Compensation of Development Gains in 'Hwaseong Dongtan and Chungnam Seocheon'

Development Profit Cross-Subsidy Pilot Project Structure (Data provided by the Ministry of Land, Infrastructure and Transport)

The Ministry of Land, Infrastructure and Transport and Korea Land & Housing Corporation (LH) announced that they will hold a public contest for the 'Development Profit Cross-Compensation Pilot Project,' which combines townhouse sites in Hwaseong Dongtan 2 and areas in Hansan-myeon, Seocheon-gun, Chungnam, starting from the 24th.

Development profit cross-compensation is a project that integrates real estate with low development returns in local areas and high returns in the metropolitan area to preserve part of the metropolitan project profits for local regions, aiming for balanced national development. The first pilot project was announced in May.

This pilot project plans to select operators using the 'profit-sharing public REITs method,' introduced through the amendment of the Enforcement Decree of the Housing Site Development Promotion Act. REITs expand stock offerings during capital procurement to share development profits with the general public who invest in the project.

The project sites include three townhouse blocks (114,000㎡, 867 households) within Hwaseong Dongtan 2 New Town and a farming and rural migration housing site (20,000㎡, fewer than 30 households) located in Hansan-myeon, Seocheon-gun, Chungnam.

Detailed information can be found on the LH website. Letters of intent to participate will be accepted from January 10 to 12 next year.

Lee Jaepyeong, Director of the Land Policy Division at the Ministry of Land, Infrastructure and Transport, said, "Simultaneous promotion of urban housing supply and local revitalization projects is expected to foster win-win development between the metropolitan area and local regions," adding, "We will continuously monitor and feedback on the progress of the pilot project."

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