Kim Yunduk Says "We Will Revitalize Private Reconstruction and Redevelopment Too... Raising Floor Area Ratios Requires Public Debate"

On-site visit to the pilot district of the Ilsan New Town maintenance project
On whether to overhaul the registered rental housing system: "We will make a decision if necessary"

Just one day after the National Assembly’s Land, Infrastructure and Transport Committee excluded private projects from the special floor area ratio benefits for reconstruction and redevelopment, Minister of Land, Infrastructure and Transport Kim Yunduk said, "We will also fully revitalize private reconstruction and redevelopment." This is seen as an attempt to calm market jitters stemming from the controversy over the exclusion of the private sector.

On the 11th, after touring Gangchonmaeul 5 Complex in Madu-dong, Ilsandong-gu, Goyang-si, Gyeonggi Province, which is a pilot district for the first-phase new town maintenance project, Minister Kim gave this answer at a residents' meeting when asked whether "raising the floor area ratio for private projects will be designated as a special case." Residents argue that the "standard floor area ratio" in Ilsan (300% for apartments) is lower than in other first-phase new towns and therefore should be raised. Minister Kim said, "It is wrong to say that the people’s sovereign government is trying to pursue only public-led supply," adding, "It is absolutely unacceptable to ignore the private sector and do everything only through the public sector."

Kim Yoondeok, Minister of Land, Infrastructure and Transport, is speaking at a residents' meeting during a visit on the afternoon of the 11th to Gangchonmaeul Complex 5 (1st new town pilot district), Madu-dong, Ilsandong-gu, Goyang-si, Gyeonggi Province. Photo by Ministry of Land, Infrastructure and Transport

The previous day, the Land, Infrastructure and Transport Committee passed an amendment to the Urban and Residential Environment Improvement Act that allows public institutions such as Korea Land and Housing Corporation (LH) to increase the floor area ratio for redevelopment and reconstruction projects up to 1.3 times the legal upper limit (up to 390% for general residential areas). Currently, the maximum floor area ratio for public redevelopment is 360%, which is 1.2 times the legal upper limit, and for public reconstruction it is 300%, which is 1.0 times the legal upper limit. However, private maintenance projects were excluded from the scope of application, sparking controversy.

Minister Kim’s remarks expressed his intention to support private maintenance projects as well, but it remains uncertain whether floor area ratio incentives will be applied. Minister Kim said, "There are slight differences in the methods of revitalization." In fact, the amendment to the Urban and Residential Environment Improvement Act includes provisions to expand the special cases of easing building height limits and park and green space standards to all maintenance projects, including private ones, and to improve project feasibility by raising the purchase price standard for rental housing from the standard construction cost to the basic construction cost. Minister Kim went on to say that, regarding differences of opinion over how to raise the floor area ratio, a public debate and social discussion are necessary.

"Focus on resolving the 'supply cliff'... Will make decisions on the registered rental system if necessary"

Minister Kim cited "expanding housing supply" as the top priority at this point in time. He stressed, "Over the past few years, housing supply has been at a level close to a cliff," and "All the key points of government policy are placed on expanding supply."

As for additional housing supply and real estate measures, he said, "The Ministry of Land, Infrastructure and Transport and related agencies are consulting and preparing." Regarding the expiration in May this year of the temporary suspension of heavy capital gains tax for multi-homeowners, he also said, "Follow-up measures are necessary."

On the registered rental housing system, which President Lee Jaemyung recently signaled would be overhauled, he said, "I believe it should be reviewed," adding, "Whether it helps stabilize the real estate market is the first criterion." He then added, "If necessary, I believe we must make a decision," thereby lending support to President Lee’s initiative.

Kim Yoondeok, Minister of Land, Infrastructure and Transport, visited Gangchonmaeul Complex 5 in Ilsandong-gu, Goyang, Gyeonggi Province on the afternoon of the 11th and, together with Lee Donghwan, Mayor of Goyang (to the right of Minister Kim), is inspecting the complex’s aging condition. Ministry of Land, Infrastructure and Transport

"A 'speed battle' for 63,000 homes in the first-phase new towns... Mobilizing all financial and administrative support"

Meanwhile, at the meeting on this day, Minister Kim promised a "speed battle" through financial and administrative support.

Presenting the goal of supplying 63,000 homes in the first-phase new towns without setbacks by 2030, he said, "As Korea Housing and Urban Guarantee Corporation (HUG) has recently finalized the selection of the manager for the first master fund of the Future City Fund, we will swiftly implement support for initial project costs to ease the burden on residents."

He added, "With the amendment of the Special Act on Old Planned Cities on the 3rd, it is now possible to establish integrated special maintenance plans and project implementation plans, and the repetitive resident consent procedures have been simplified, which will shorten the duration of maintenance projects."

Minister Kim went on to say, "We plan to closely review the standard floor area ratio using relevant data and back data and then discuss it," adding, "As Minister, I will of course do what I must so that other necessary administrative procedures can also proceed as quickly as possible."

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