Sejong City Temporarily Eases Development Charge Applicable Area

Sejong City will temporarily relax the area criteria for imposing development charges.

Sejong City announced on the 31st that, in accordance with the partial amendment of the Enforcement Decree of the Act on the Recovery of Development Gains, it will temporarily relax the area criteria for development charges imposed on approvals granted from next month 1st to December 31st of next year.

Development charges are a system that recovers 20% to 25% of the development gains generated from housing site development projects, industrial complex development projects, golf course construction, and the like. Fifty percent of the paid development charges belong to the local government where the land is located, and the remaining 50% belongs to the state.

With the temporary relaxation, the area subject to development charges will be raised from 660㎡ to 1000㎡ in urban areas, and from 1650㎡ to 2500㎡ in non-urban areas and development-restricted zones.

Previously, the relaxation of development charges was also implemented from 2017 to 2019. During that period, there was a notable movement to obtain project approvals mainly for small-scale developments, and the pace of each project also accelerated.

This year’s relaxation of development charges is being promoted with the aim of revitalizing the regional economy in non-metropolitan areas, which are experiencing difficulties due to population decline and real estate market recession, considering such precedents.

Jung Hee-sang, head of the Land Information Division of Sejong City, said, “We hope this measure will be an opportunity to breathe some life into the sluggish local real estate market.”

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