Park Won-soon Criticizes Ministry of Land for "GBC Public Contribution Fund of 1.7 Trillion Won Should Not Be Monopolized by Gangnam"

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Park Won-soon, Mayor of Seoul, argued that the development profits from the Gangnam area should not be used only within Gangnam.

On the 5th, Mayor Park stated on his Facebook, "Seoul approved the groundbreaking of the Global Business Center (GBC) last May," adding, "I am pleased that a wonderful space for citizens will be created, but at the same time, I cannot suppress my frustration."

He wrote, "According to the current Enforcement Decree of the National Land Planning Act, the public contribution fund of 1.7491 trillion won generated from the construction of the GBC is forced to be used only in Gangnam," explaining, "The development profits from Gangnam are invested solely for Gangnam."

According to Mayor Park, the public contribution funds from the three Gangnam districts?Gangnam, Seocho, and Songpa?amounted to 2.4 trillion won in 2020?2021. This corresponds to 81% of Seoul's total public contribution funds of 2.9558 trillion won.

The public contribution fund mentioned by Mayor Park refers to a system where the Seoul Metropolitan Government receives a portion of development profits in return for easing regulations such as land-use changes or floor area ratio increases.

Mayor Park argued, "The development profits from Gangnam should not be monopolized by Gangnam alone," adding, "This not only fuels real estate prices in Gangnam but also contradicts the citizens' desire for balanced development throughout Seoul."

He criticized, "Since 2015, Seoul has requested the Ministry of Land, Infrastructure and Transport over 20 times to expand the use of public contribution funds to 'all of Seoul' through 'regionalization of development profits,' but the ministry officials have yet to revise it."

In response, the Ministry of Land, Infrastructure and Transport stated, "We have received Seoul's proposal and are discussing amendments to the enforcement decree related to public contribution funds, but nothing has been decided yet."