Lawmakers from both parties are introducing bills one after another to ease regulations on maintenance projects such as reconstruction and redevelopment. The focus is on shortening administrative procedures for maintenance projects and improving business feasibility. With virtually no land left in Seoul suitable for supplying large-scale dwellings, the government is steering toward dwellings supply centered on maintenance projects.
According to the political sphere on the 19th, Kim Do-eup of the People Power Party, a member of the National Assembly's Land Infrastructure and Transport Committee, on the 16th led the introduction of a partial amendment to the Special Act on the Promotion of Urban Renewal (the Special Act on Urban Renewal). The main point of the amendment is to shorten administrative procedures by allowing each opinion-gathering step—resident inspection through resident briefings, hearing from local councils, and holding public hearings—that must be taken to designate or change a renewal promotion district to proceed simultaneously.
Currently, each opinion-gathering step must be held in sequence. While the intent is to reflect diverse voices, critics note that there are countless cases in which projects are delayed due to conflicts of interest among residents and differing views on estimated contributions. The amendment proposal states, "There continues to be a shortage of dwellings supply in urban areas and resulting supply-demand instability," and adds, "For swift dwellings supply, delays arising as opinion-gathering procedures proceed step by step must be addressed." On the 22nd, Son Myung-su of the Democratic Party of Korea also led the introduction of an amendment containing the same content.
A bill easing obligations to secure parks and green areas to boost profitability has also been introduced. An amendment to the Special Act on Urban Renewal, led by Lee Geon-tae of the Democratic Party of Korea, adds a new clause stating, "When necessary, the authority to establish a renewal promotion plan may, after deliberation by the local Urban Planning Committee, establish a renewal promotion plan that eases the standards for securing urban parks or green areas under Article 14 of the Act on Urban Parks and Green Areas." Under the Act on Urban Parks and Green Areas, for construction plans of 1,000 or more dwellings, the larger of at least 3 square meters per unit or at least 5% of the land area must be developed as parks or green areas.
With reconstruction projects facing red flags across Seoul due to surging construction costs, the passage of this amendment is expected to significantly help streamline profitability. Not only maintenance projects but also land development projects are seeing their profitability deteriorate due to mandatory park rules. Korea Land & Housing Corporation (LH) is said to have suggested to the Ministry of Land, Infrastructure and Transport (MOLIT) that green area ratios in third new towns such as Goyang Changneung be eased. The Ministry of Land, Infrastructure and Transport earlier this year commissioned a research project to improve standards for securing parks and green areas under development plans.
Both parties are moving to promote maintenance projects because there is no clear plan to supply dwellings in the Seoul metropolitan area. Supplying dwellings through general land development takes an average of seven to 10 years from district designation to resident move-in. Momentum is building behind the argument that to stabilize home prices immediately and supply dwellings in the short term, more weight should be put on reconstruction and redevelopment projects. Nam Hyuk-woo, a real estate researcher at Woori Bank, said, "Supplying dwellings through traditional land development has a structural limitation in that short-term supply is difficult," adding, "A supply policy centered on maintenance projects within the Seoul city limits can be a practical solution for dwellings supply."