President Lee Jae-myung on the 18th ordered a review of a plan to lower to around 5% the expense burden for local governments purchasing "U.S. military-returned grant land" in northern Gyeonggi, including Uijeongbu, Paju, and Dongducheon. Currently, when a local government buys grant land, it can receive up to 80% of the expense from the central government even if it does not create roads or parks, and the idea is to expand this ratio to further reduce the portion paid by local governments.
Lee said at a work briefing for the Ministry of National Defense and the Ministry of Patriots and Veterans Affairs that "when a local government intends to use the land as public land such as roads or parks, the support, which used to be 70%, was increased to 80%, but I have heard arguments asking whether the remaining 20% really has to be collected." He added, "This is not about developing (to generate its own) revenue, but using it for public purposes such as neighborhood roads or parks, so why would the government charge money instead of doing it for free?" He then asked Minister Ahn Gyu-baek for his opinion.
Minister Ahn replied, "From a certain perspective, I think there is also an aspect that could (cause) laxity on the part of local governments." Lee responded, "I disagree," saying, "When a specific area is developed for public purposes, doesn't the government build libraries, make roads for free, and transfer them without compensation?" He continued, "These are public facilities, so do we really have to collect 20% of the land price? Wouldn't it be fine to take only about 5%?"
Ahn said that in such a case, requests for state funding would follow for land with similar conditions, such as railroad sites. Lee then said, "Why not limit it to U.S. military bases?" adding, "U.S. military bases have controlled those areas for decades, blocking neighborhood development and causing harm to residents." In particular, he said, "(Residents near the grant land) have borne extraordinary sacrifices for a very long time, so do we really have to collect that 20%?" and added, "I sympathize with the idea of being generous and cutting it further."
He also said, "Don't just think about selling to local governments; consider whether the government could step in, take on the risk, and develop it—whether by creating an SPC (special purpose company) or otherwise," adding, "You've held it for over a dozen years and done nothing. Please consider it proactively." He then joked, "Do it for me. I'm a former Gyeonggi Northern governor, aren't I?"
U.S. military grant land refers to land returned as U.S. forces pursued relocation and consolidation under the 2004 renegotiated Land Partnership Plan (LPP). In northern Gyeonggi, 22 sites have been fully returned. However, sales have been delayed at 12 of them due to permitting and environmental remediation procedures. Although the government raised the purchase expense support ratio from 70% to 80%, it has not found local governments willing to buy. Lee also said, "Even though conditions like leasing and installment payments for sale proceeds are quite favorable, there are still no local governments stepping up to try."
The issue of utilizing U.S. military-returned grant land, a long-standing priority in northern Gyeonggi, is something Lee has mentioned since his time as Gyeonggi governor. He argued it was unfair to have local governments shoulder the purchase expense and undertake development themselves, and proposed central government-level free leases and payment of expenses after realizing development gains. Lee in July this year at a closed Cabinet meeting and at a northern Gyeonggi town hall last month also asked the Ministry of National Defense to proactively review measures such as "reducing the burden on local governments."