Last year, the 'Public-Private Joint Construction Investment Project (PF) Coordination Committee' supported the normalization of 72 PF projects. The total scale of these projects amounts to 21 trillion won. The Ministry of Land, Infrastructure and Transport plans to convert the PF Coordination Committee into a permanent operating system this year and to halve the adjustment period to accelerate the normalization of PF projects.
The Ministry of Land, Infrastructure and Transport announced on the 9th that the PF Coordination Committee advised on adjustment plans for 72 out of 81 adjustment applications received, covering projects worth 21 trillion won. Among these, 69 projects are preparing to resume as both public and private parties have agreed.
The PF Coordination Committee is an organization that normalizes development projects jointly carried out by the public and private sectors or projects that receive land from the public by resolving differences in opinions between parties over changes and cancellations of project plans and agreements.
The types of adjustments made by the committee include ▲increased construction costs ▲resolution of funding constraints ▲support for permits and approvals. When a public housing project with about 15 trillion won in private participation faced disputes due to rising construction costs, the committee recommended that the public share part of the increased costs, while also advising that projects not yet under construction should be changed to housing types suitable for local demand. This adjustment was proposed out of concern that continued disputes might lead to bankruptcies of local small subcontracting construction companies and disruptions in housing supply plans.
In addition, regarding the 800 billion won Godeok Seojeongri Station area development project, financing became impossible due to the private developer's arrears on land payments. However, the committee extended the payment deadline by 1 year and 6 months to facilitate financing from financial institutions. The committee determined that it was in the region's interest for the existing project implementer to promptly establish infrastructure rather than recruiting new project participants after the project was halted.
The committee noted that the Osan Cheonghak public supported private rental housing project (approximately 1.3 trillion won) was at risk of suspension due to delays exceeding 9 months caused by the repeated postponement of completion schedules in the adjacent land development area. It recommended that Gyeonggi Province and Osan City actively review the project plans in advance through proactive administration, thereby shortening the permit and approval period by about 8 months.
This year, the Ministry of Land, Infrastructure and Transport will transition the committee to a permanent operating system and shorten the adjustment period by half. Previously, adjustments were accepted once a year, and it took up to 8 months from the date of application to adjustment. The application for new adjustment projects for this year will begin on the 10th of this month.
Additionally, to enhance the effectiveness of the adjustment, the Ministry of Land, Infrastructure and Transport plans to strengthen cooperation with the National Assembly to ensure the prompt enactment of the proposed 'Law on the Management of Real Estate Development Projects and Related Matters,' which aims to elevate the currently ministerial ordinance-operated committee to a legal committee.
Jin Hyun-hwan, the first vice minister of the Ministry of Land, Infrastructure and Transport, said, 'In the process of promoting PF projects, proactive administration is necessary to adjust project plans or agreements in response to changes in internal and external conditions,' and added, 'We will spare no effort in supporting the PF Coordination Committee to fulfill the role of a bridge between the public and private sectors.'