If the floor is thicker, one more floor... Won Hee-ryong "Incentives for Floor Area Ratio on Inter-floor Noise" (Summary)

Minister of Land, Infrastructure and Transport: "Construction Companies Must Solve It"
"The State Will Chase Jeonse Fraudsters"
"Strengthening Management Fee and Information Disclosure to Eradicate Corruption"

Minister of Land, Infrastructure and Transport Won Hee-ryong is answering questions from participants at the "1st Ministry of Land, Infrastructure and Transport · Startup · Youth Foundation Coffee Chat" event held on the morning of the 28th at the Gwanghwamun Youth Foundation.

On the 28th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated that if construction companies make separate efforts to reduce noise between floors, an incentive plan allowing them to increase the number of floors could be considered. Regarding the recently growing concerns about jeonse fraud, he also said that the government would create a system to pursue fraudsters alongside the victims until the end.

Minister Won made these remarks during a Q&A session at the '1st Ministry of Land, Infrastructure and Transport·Startup·Youth Foundation Coffee Chat' event held at the Gwanghwamun Youth Foundation that morning, responding to related questions by saying, "Noise between floors should be resolved by construction companies."

When asked about the "three items planned as real estate-related livelihood stabilization projects," Minister Won cited noise between floors, jeonse fraud, and disclosure of management fee information.

Regarding noise between floors, Minister Won said, "If construction companies take responsibility for floor thickness and interior work to alleviate noise between floors and it practically benefits consumers and residents, we can consider giving incentives on floor area ratio."

He explained, "If there is a plan to build 30 floors, regulations can be relaxed to allow one more floor if noise reduction measures are implemented." He added, "However, the judgment on noise reduction and floor area ratio relaxation should not be done informally between officials and construction companies but should involve consumer participation in evaluation. This way, the problem of noise between floors in newly built apartments can be somewhat resolved."

For existing apartments, a separate subsidy method was mentioned. Minister Won said, "Existing apartments require separate interior work such as laying mats to reduce noise, which costs about 3 to 5 million KRW. We are discussing with the Ministry of Strategy and Finance to create a fund to support about 3 million KRW per household."

He also announced national support to prevent jeonse fraud. Minister Won said, "In the future, if a jeonse contract is made through a certified real estate agent, even if fraud occurs, the victim will not suffer losses, and the government will create a system to pursue the fraudsters." He added, "As a preventive measure, we will thoroughly provide guarantee guidance services and strengthen guidance services at brokerage offices and real estate applications."

Lastly, Minister Won emphasized more transparent information disclosure to eradicate chronic corruption in apartment management fees. He said, "Previously, information disclosure applied to buildings with more than 300 households, but from now on, management fee details should be disclosed for buildings with 50 or more households." He added, "Not only posting management fee details in elevators but also publicly disclosing them on the internet for comparison with other complexes, and providing rewards when corruption is found, can serve as a check against management fee corruption."

Meanwhile, at the main event, Minister Won promised, "Since securing usable data is essential for the development of proptech, we will strive to open more diverse and high-quality public data reflecting industry demand."

Startup representatives attending the event requested the opening of real estate-related data, deregulation, and government support. Regarding regulatory innovation, there was an opinion that "Currently, the ‘One-person Creative Enterprise Promotion Act’ excludes real estate businesses from support, making it difficult for many small-scale proptech startups to receive support."

Regarding data opening, there was also a demand that "To reduce costs in the data acquisition and processing process for startups, it is necessary to expand the opening of public data such as actual transaction price information managed by the government."

Minister Won responded, "We will actively consult with related ministries to ensure that real estate businesses, including proptech, are not excluded from government support due to negative perceptions such as real estate speculation."

The Ministry of Land, Infrastructure and Transport plans to hold this event biweekly with changing themes rather than as a one-time event. Minister Won said, "Following proptech, we will communicate with startups in various fields such as mobility, digital twin, and smart construction," adding, "We will achieve practical institutional improvements reflecting voices from the field to revitalize the land and transport startup ecosystem."

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