Ministry of Land, Infrastructure and Transport Proposes Special Act to Shorten Redevelopment and Reconstruction Periods

'Special Act on Promotion of Reconstruction and Redevelopment Projects' Submitted to the National Assembly
Simultaneous Processing of Basic Plan and Maintenance Plan Allowed
Simultaneous Processing of Project Implementation Plan and Management Disposition Plan Also Allowed

Seoul apartment complex view.
Photo by Yonhap News

The Ministry of Land, Infrastructure and Transport announced on the 2nd that a bill for the 'Special Act on the Promotion of Reconstruction and Redevelopment Projects,' which shortens the reconstruction and redevelopment periods, has been proposed. This is a follow-up measure to the '8·8 Supply Plan' announced last month.

The Special Act includes provisions to integrate and simplify the procedures for maintenance projects. Notably, it allows the simultaneous processing of the basic plan and maintenance plan, which are the initial stages of maintenance projects. The project implementation plan and management disposition plan can also be processed together. Additionally, once the law is enforced, local governments can provide information on landowners necessary for establishing associations upon the request of the promotion committee.

The bill also includes measures to reduce internal conflicts within associations and resolve project uncertainties. When a general meeting to dismiss association executives is to be held, the member intending to convene the meeting must notify the competent local government of the meeting plan. If an executive is dismissed, the local government can appoint a professional association manager to continue and manage the project. Furthermore, if disputes arise due to increased construction costs, a dispute mediation team composed of experts will be dispatched.

Moreover, to enhance the profitability of maintenance projects, the floor area ratio will be temporarily increased up to 1.3 times the legal limit for three years in areas near subway stations. For maintenance projects in Type 3 General Residential Areas, the floor area ratio can be increased from the current maximum of 300% to 330%. In subway station maintenance project districts, it can be increased from 360% to 390%. However, regulated areas such as the three Gangnam districts of Seoul (Gangnam, Seocho, Songpa) and Yongsan-gu, as well as places that have already applied for project plan approval before the announcement date of the measures, are excluded.

The bill applies to reconstruction and redevelopment projects under the 'Urban and Residential Environment Maintenance Act,' the 'Special Act on Maintenance and Support for Old Planned Cities,' and the 'Special Act for Urban Redevelopment Promotion.'

Meanwhile, on the 2nd, along with the Special Act bill, an amendment to the 'Urban and Residential Environment Maintenance Act' was also proposed. The amendment lowers the consent requirement for establishing reconstruction associations from 75% to 70% of all unit owners. The consent requirement per building is relaxed from half to one-third.

It is stipulated that when reconstruction is pursued as a mixed-use complex, facilities such as offices and cultural facilities desired by residents can be installed. Previously, only officetels could be built besides apartments.

A Ministry of Land, Infrastructure and Transport official said, "If the Special Act bill and the Urban Maintenance Act amendment pass, the project period is expected to be significantly shortened," adding, "The maintenance projects of old planned cities, including the first-generation new towns, will also accelerate."

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