The passage of the 'Special Act on the Promotion of Reconstruction and Redevelopment Projects' (Reconstruction Promotion Act), which could shorten the duration of urban redevelopment projects, is expected to be delayed in the National Assembly.
Initially, discussions on the Reconstruction Promotion Act were anticipated to take place at the National Assembly's Land and Transportation Committee's Subcommittee on Bills scheduled for the 25th of this month. However, due to disagreements between the ruling and opposition parties regarding this bill, the subcommittee will not convene at all. Consequently, there have been setbacks to the Ministry of Land, Infrastructure and Transport's plans to expedite urban redevelopment projects and increase the supply of dwellings. It is expected that discussions on the Reconstruction Promotion Act will continue in the next month's subcommittee meeting.
The Reconstruction Promotion Act is a bill that allows for simultaneous processing of the basic plan and maintenance plan established at the early stage of redevelopment projects, and also allows for simultaneous processing of the project implementation plan and management disposal plan, which is the stage of establishing a specific business plan after the establishment of the cooperative. This is a measure proposed by the Ministry of Land, Infrastructure and Transport as part of a plan to expand housing supply last August, and if this bill is passed, the duration of the redevelopment project can be shortened. Since the amendment to the Urban Redevelopment Act aimed at introducing the 'Fast Track for Reconstruction' has passed the National Assembly, if the Reconstruction Promotion Act also passes, the duration of the redevelopment project is expected to be shortened by up to six years.
According to the National Assembly and the Ministry of Land, Infrastructure and Transport on the 24th, the National Assembly's Land Committee is likely to be canceled, which was scheduled to be held on the 25th. As a result, discussions on the Reconstruction Promotion Act, which were expected to be on the agenda that day, have also been postponed. A Ministry of Land, Infrastructure and Transport official stated, "It seems that the Land Committee's subcommittee itself will not convene, and it will be difficult to discuss the Reconstruction Promotion Act."
The reason why the Land Committee's bill subcommittee will not convene is that disagreements between the ruling and opposition parties regarding the Reconstruction Promotion Act have not been narrowed down. An official from the ruling party's office within the Land Committee mentioned, "While consensus was formed among the ruling and opposition parties on bills in the railway sector, disagreements about the Reconstruction Promotion Act arose, making it difficult to even present the bill, which ultimately led to the subcommittee not convening."
The ruling party, People Power Party, argues that the Reconstruction Promotion Act must pass quickly as reconstruction and redevelopment are essential to revitalize the stagnant construction market. Kweon Seong-dong, the floor leader of the People Power Party, said on the 21st, "If the Democratic Party is sincere about economic recovery, I hope they will cooperate on the swift handling of the Reconstruction Promotion Act," adding, "Despite it being a necessary bill for economic stimulus and stabilizing the real estate market, the opposition party is delaying discussions by claiming it is a special law favoring Seoul and the metropolitan area or a law favoring the wealthy in Gangnam."
On the other hand, the opposition party, Democratic Party, believes that the Reconstruction Promotion Act could only provide benefits to the Seoul and metropolitan area. They also argue that measures to guarantee the housing rights of indigenous people should be reflected in the Reconstruction Promotion Act. However, within the opposition party, there are differing positions among legislators depending on their constituencies, making it difficult to form a unified stance on the Reconstruction Promotion Act. An official from the opposition party noted, "Due to the lack of consensus on issues like the Reconstruction Promotion Act, the subcommittee itself has not convened," and added, "There is also a gap between lawmakers with constituencies in metropolitan areas and those in provincial areas regarding the bill."
As a result, the Ministry of Land, Infrastructure and Transport's plans to increase the supply of dwellings through the Reconstruction Promotion Act are also facing setbacks. Last August, the Ministry announced the '8.8 measures' and set out plans to speed up reconstruction and redevelopment projects in older urban areas to increase the supply of dwellings and stabilize the real estate market. This is because it is difficult to keep up with the housing demand in the Seoul and metropolitan area with just a new housing supply policy.
Minister Park Sang-woo also urged the National Assembly to pass the Reconstruction Promotion Act on the 12th, stating, "A National Assembly bill is scheduled for the last week of February," and added, "I will do my best to ensure that key livelihood bills, such as the Reconstruction Promotion Act, are processed." However, as the subcommittee itself has been delayed, the timeline for increasing housing supply through reconstruction and redevelopment by the Ministry cannot be confirmed.
The National Assembly is expected to bring the Reconstruction Promotion Act back to the bill subcommittee as early as next month. An official from the ruling party stated, "Since the bills discussed in the Land Committee are livelihood bills, it is expected that there will be discussions again around next month."