Contributions to public contributions from donations made in Gangnam, more than half spent in Gangbuk

It is expected that more than half of the public contributions raised from large-scale development projects in Gangnam, Seoul, can be used to provide public leases in the Gangbuk region or to create urban parks.

According to the National Assembly and the Ministry of Lands, Infrastructure and Transport on the 29th, an amendment to the National Law of Planning and Use of Lands (National Territory Planning Law), which contained the above content, was recently approved by the Subcommittee of Legislation Review of the National Land Transport Commission. The bill was initiated in a representative manner by Democratic Party lawmaker Chun Joon-ho.

The public contribution means that when the local government relieves the proportion of floor area or changes the area of ​​use so that development can be promoted smoothly, the commercial operator builds infrastructure (in kind) in the underlying local government and the remaining money is donated. Under the current National Territory Planning Law, only the basic local government where the development project takes place can use the donated cash for donations, but Congressman Chun’s proposed amendment broadened the scope of its application so that it could also be used by local metropolitan governments.

Also, if the development district is located in a special city or metropolitan city, the rate of cash contributions attributed to the basic local government was stipulated in the executing decree. For now, a plan is being reviewed to allow more than half of the public contributions received by donations to be used by metropolitan local governments.

Since public contributions consist of cash and cash, such as infrastructure built by local government, the participation of local governments of large areas is inevitably greater than that of basic local governments, considering only the cash collected from donations. The amendment to the law stipulated that the cash received from the donations is to build un-executed urban planning facilities or public rental houses of 10 years or more. In particular, metropolitan local governments should preferably use 10% or more of the donations received for the installation of long-term non-executable urban planning facilities, and basic local governments should spend the entire amount in this way. The intention is to transfer the profits from large-scale development projects in Gangnam and other areas to Gangbuk to create urban parks that are in danger of disappearing due to the collapse of urban planning facilities, or to build public leases that are used to solve the residential difficulties of ordinary people.

If this bill is passed, the huge benefits of the development in Gangnam could also be used in Gangbuk. This is also a policy strongly promoted by the late Mayor of Seoul Park Won-soon. Noteworthy is the public contribution of KRW 1.74 billion from the GBC construction project for the new Hyundai Motor Company building in Gangnam-gu. The city of Seoul has already determined where to use the public contributions through an agreement with Hyundai Motor Company late last year, but it is anticipated that some of these contributions will be used in Gangbuk if the law is passed.

As the disagreement between the opposition and the opposition parties is not great on the bill, the bill is expected to be approved at the general meeting of the National Land Commission, the Judicial Legislative Council and the plenary session. In a Facebook post, Congressman Chun said: “Until now, the development benefits generated by deregulation, such as change of use in development projects, were only available within the autonomous district, and the phenomenon of rich and poor it has even intensified in the same city. ” If approved, it will go a long way toward reducing the infrastructure gap and balanced development in Gangnam-North Korea. ”
/ Reporter Jiyoon Yang [email protected]

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