Kim Gyu-cheol, the Deputy Minister of Land, Infrastructure and Transport, said on the 7th after the announcement of the 'Housing Supply Expansion Plan,' "Regarding the recovery of excessive profits from reconstruction (recovery of excess profits), the bill to abolish it proposed by the previous government is currently pending in the National Assembly's Land and Transportation Committee, and it is necessary to observe the National Assembly's discussion process and make a decision."
The Deputy Minister responded this way during a press conference after the announcement of the housing supply expansion plan held on the 5th floor of the Government Seoul Building in Jongno, Seoul, when asked about the direction of the recovery of excess profits related to the activation of private maintenance projects.
Regarding whether to maintain the incentives for private reconstruction and redevelopment announced by the previous government, the Deputy Minister explained, "The part concerning the floor area ratio for private reconstruction and redevelopment incentives announced by the previous government is planned to proceed through a public discussion process in the future. While there may be advantages in terms of supply, it can also act as a factor for short-term housing price increases in certain areas."
He added, "There are concerns that various side effects may occur from an urban planning perspective, so we will decide after considering everything overall."
The following is a Q&A with Deputy Minister Kim Gyu-cheol and Jeong Woo-jin, the Director General of the Ministry of Land, Infrastructure and Transport.
-The Ministry of Land, Infrastructure and Transport has made it possible to designate land transaction permission zones (land transaction permission areas). The reassignment of land transaction permission zones in areas like Yongsan and the three districts in Gangnam is coming due in September. When will this change in authority take effect?
Deputy Minister Kim Gyu-cheol: "The areas designated on March 19 of this year are currently under review by the Seoul City regarding reassignment. Following today's announcement of measures, we plan to work towards a bill being proposed at the National Assembly level regarding the expansion of the Minister's designation power over land transaction permission zones. Even when the Ministry did not have authority, we have been closely consulting with and managing related matters concerning land transaction permission zones and market order with Seoul City. Even if the law is passed, we will plan to proceed without any issues before new designations of land transaction permission zones by closely consulting with Seoul City."
-Will measures for the first phase new towns be promoted by forming a council?
Director General Jeong Woo-jin: "Since last year, we have had many consultations with Seongnam City regarding the creation of relocation support complexes in Bundang, but in reality, the consultations have not been going well. By the end of this year, special maintenance zone designations are expected to be made. Our own simulations indicate that the actual management disposition and emergence of relocation demand are expected after 2027. Particularly, from 2029 to 2030, the market capacity to accommodate relocation demand seems a bit insufficient. We are considering adjusting the timing of management disposition or extending it."
-LH says it will focus on strengthening publicness, but there seems to be more concern than expectations from the public. Is there a plan for restoring trust in LH?
Deputy Minister Kim Gyu-cheol: "We plan to strengthen the publicness of LH. In particular, we will change the direction from selling LH public housing sites to the private sector to LH directly implementing and supplying them. I believe that LH has undoubtedly lost the trust of the people. There have been clear aspects where past real estate speculation issues and the lightweight plate apartment issue have disappointed the public. LH must take a new leap as a key public institution performing national policies. The government also plans to take a keen interest and support in the process of LH successfully fulfilling its housing supply role through direct implementation. We must create an opportunity to restore trust while carry out this policy with vigor."
-When is the appointment of the next CEO of LH expected to take place?
Deputy Minister Kim Gyu-cheol: "The role of the CEO in public institutions under the Ministry of Land, Infrastructure and Transport, such as LH, is important. I think it would be better if the appointment is made as soon as possible. However, the personnel issues of public institutions under the Ministry are not matters we can directly handle. However, as LH is systematically maintaining the functions and roles it performs, there should not be any major problems occurring at the moment."