Remarks made during visit to Geoyeo Saemaul redevelopment site in Songpa-gu
"We will provide benefits such as real estate acquisition tax reductions and higher purchase prices for rental housing at sites that push ahead with fast-tracked redevelopment."
First Vice Minister of Land, Infrastructure and Transport Kim Yi-tak made the remarks Tuesday during a visit to the Geoyeo Saemaul public redevelopment site in Songpa-gu, Seoul. He called for swift project execution. The visit sought to encourage the early launch of redevelopment and reconstruction projects in line with the government's "just supply housing" policy drive.
The government's Aug. 13 rapid housing supply plan aims to fast-track about 234,000 units' worth of reconstruction, redevelopment and other urban renewal projects by 2030, offering tax and other incentives. The plan includes exempting or cutting by 75 percent the real estate acquisition tax on properties purchased from cash-settlement recipients through 2028. It also raises the purchase price for public-contribution rental housing to 100 percent of the standard construction cost, a 20-percentage-point increase from the current level. This higher price applies to projects that receive management and disposal plan approval after the announcement and break ground by 2028.
The site Kim visited struggled for years to advance a resident-led redevelopment project before being selected as a public redevelopment candidate site in March 2021. It received approval for its project implementation plan in February, five years later. About 1,700 apartment units are planned for the site.
During the visit, Kim received a briefing on the project's progress and inspected residential conditions along with local government officials, resident representatives, and officials from the Korea Land and Housing Corporation and the Korea Housing and Urban Guarantee Corporation. He also received a report on plans to speed up the project.
"For sites that move quickly like Geoyeo Saemaul, we will actively support early ground-breaking by offering benefits such as real estate acquisition tax reductions and higher purchase prices for rental housing," Kim said, asking the Korea Land and Housing Corporation and the Korea Housing and Urban Guarantee Corporation to "communicate sufficiently with residents throughout the project and carefully manage the process to minimize any inconvenience that could arise during relocation."
"So that the rapid pursuit of redevelopment projects does not lead to instability in the jeonse and monthly rent market, the Ministry of Land, Infrastructure and Transport will operate a relocation-demand management council together with local governments and the Korea Land and Housing Corporation to manage relocation demand across redevelopment projects and support an orderly relocation process," he added. "We will closely monitor the progress of redevelopment projects and come up with ways to significantly shorten project timelines, including permitting procedures, so that the public can feel the acceleration of redevelopment on the ground."
smh@heraldcorp.com
