Sangwoo Park, Minister of Land, "Triple the Reconstruction and Redevelopment Projects Within Government Term"

by Roh Kyungjo

Published 10 Jan.2024 17:27(KST)

On the 10th, Park Sang-woo, Minister of Land, Infrastructure and Transport, announced, "We will triple the number of reconstruction and redevelopment projects compared to the original plan within the current administration's term."

Minister of Land, Infrastructure and Transport Park Sang-woo is speaking at the post-briefing of the "Public Livelihood Discussion with the People" held at the Government Seoul Office Building on the 10th. / Photo by Jo Yong-jun jun21@

On the same morning, Minister Park spoke at a public discussion forum held in Aram Nuri, Goyang-si, Gyeonggi Province, themed "Housing Desired by the People," stating, "From this year, we will fundamentally transform the direction of housing supply policies. First, we will expedite reconstruction and redevelopment projects."

He indicated that reconstruction and redevelopment, which had been subject to regulations until now, will be shifted to targets for support. He emphasized, "Due to overlapping regulations, reconstruction in urban areas and small housing units have decreased, and the construction industry is facing difficulties as the construction market contracts. We will prioritize a complete overhaul of reconstruction regulations that limit the public's choices."

First, apartments that are 30 years old will be allowed to form reconstruction committees and proceed with reconstruction procedures without undergoing safety inspections. Minister Park expects this to shorten the process by more than three years. He added, "We will also establish initial project cost support and help improve project feasibility by preventing conflicts among residents or over construction costs."

The redevelopment of the first-generation new towns will be accelerated to begin construction within the presidential term by 2027 and enable move-ins by 2030. Minister Park said, "Within this year, we will start designating at least one leading district per first-generation new town, exempt safety inspections, and improve project conditions by raising floor area ratios up to 500%. In the public sector, we will prioritize installing infrastructure and establish relocation plans first to prevent rental housing shortages."

Additionally, to supply diverse housing within urban areas, the plan is to dismantle regulations and strengthen support. He stated, "We will rationally improve regulations on parking lots, size limits, and balcony installations, and provide ample funding to those undertaking projects. We will also cultivate a strong demand base to absorb this supply." As part of this, the government will prioritize policies to foster rental business operators and encourage the supply of corporate-type private rental housing.

Furthermore, Minister Park said, "To resolve the financial issues faced by the construction industry, we will expand public project financing (PF) guarantees and provide tax support such as acquisition tax reductions for unsold completed houses in local areas. The government will actively mediate conflicts over construction costs at each project site."

The public housing supply target is set at 140,000 units within the year. New housing sites capable of supplying about 20,000 units will be newly identified, mainly in the metropolitan area. He stated, "In particular, we will comprehensively adjust the 3rd generation new towns to secure approximately 30,000 additional units and take measures to start housing construction within the year."

In a post-discussion briefing held at the Government Seoul Office in the afternoon, Minister Park said, "Many citizens, including residents of reconstruction apartments, first-generation new town residents, youth, and newlyweds, participated in the forum and requested sufficient supply of 'housing that suits me' according to life cycle, income level, and household characteristics by improving unnecessary regulations. There were also voices calling for a more active government role to ensure a soft landing for the struggling construction industry amid concerns over PF insolvency."

He then added, "The Ministry of Land, Infrastructure and Transport will heed the voices of the people and the President's words, and faithfully implement measures to expand housing supply and complement the construction market."