Presidential Candidates United in Calling for Easing of Reconstruction and Remodeling Regulations

[Asia Economy Reporter Kim Min-young] Both Lee Jae-myung, the candidate of the Democratic Party of Korea, and Yoon Seok-yeol, the candidate of the People Power Party, have proposed easing regulations on reconstruction and redevelopment as part of their real estate pledges, raising expectations for the revitalization of the private reconstruction market. In particular, with a flood of regulatory easing pledges related to the maintenance projects of the 1st generation new towns, attention is focused on whether reconstruction and other maintenance projects will accelerate.

The real estate pledges of candidates Lee Jae-myung and Yoon Seok-yeol emphasize expanding supply. Since supply shortage is cited as a major cause of the recent sharp rise in housing prices, they aim to curb housing prices by expanding supply. Both candidates have announced plans to ease regulations on maintenance projects such as redevelopment and reconstruction as a way to increase housing supply.

First, candidate Lee Jae-myung plans to introduce a rapid consultation system to significantly shorten project periods and improve safety inspection standards. He also promised to ease regulations such as lowering the weight of structural safety. He proposed establishing a 4th residential zone that expands the floor area ratio (FAR) up to 500%, beyond the current 3rd general residential zone where construction is limited to a FAR of 300%. Additionally, he suggested enacting a special law for the 1st generation new towns to revitalize reconstruction and remodeling of aging new towns.

Candidate Lee said, “We will ease reconstruction safety inspection standards and remodeling safety review standards, and increase project feasibility for medium- and large-sized apartments through unit-divided remodeling and vertical extension remodeling.”

Candidate Yoon Seok-yeol also announced plans to enact a special law for the 1st generation new towns. Since the average floor area ratio of the 1st generation new towns is 169-226%, he plans to increase the floor area ratio through land use changes or zoning upgrades to supply more than 100,000 additional households. The 'New Town Maintenance' pledge centers on three main points: adjusting and easing floor area ratio regulations, maintenance projects that benefit tenants as well, and creating exclusive relocation complexes to manage moving demand.

Candidate Yoon stated that apartments over 30 years old since completion would be exempt from 'detailed safety inspections.' Typically, reconstruction safety inspections proceed in the order of preliminary safety inspection, 1st detailed safety inspection, and 2nd detailed safety inspection. Reconstruction is possible only if the 2nd safety inspection receives a D or E grade.

Both candidates have promised to ease regulations related to maintenance projects, and reconstruction complexes that have been on hold are expected to resume projects or accelerate progress. However, despite these regulatory relaxations, obstacles such as the price ceiling system for sale prices and the reconstruction excess profit recovery system remain, leading to criticism that existing policy measures alone have limitations in revitalizing private reconstruction.

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