Cabinet Approval of the 'State Property Act Enforcement Decree' for Expanding Life SOC Support
[Asia Economy Reporter Kwangho Lee] From now on, the construction of living social overhead capital (living SOC) will be allowed on state-owned property. In addition, local governments will be permitted to donate living SOC to the state and then use it free of charge.
The government deliberated and approved the amendment to the "State Property Act Enforcement Decree" containing these provisions at the 48th Cabinet meeting held on the 22nd.
This enforcement decree was amended last March to support the expansion of living SOC that can enhance the convenience of citizens in daily life, such as cultural and sports facilities.
Living SOC refers to essential infrastructure for daily life, including public libraries, community sports facilities, daycare centers, kindergartens, and after-school care centers.
Starting from the 1st of next month, installment payments (over 5 years) will be allowed when selling state property for the purpose of using living SOC, and construction of permanent facilities can begin upon partial payment (1/5) of the installment amount.
To alleviate the management and operational burden of living SOC on local governments, subleasing of state-owned property to public interest institutions such as local public enterprises, public institutions, and public interest corporations will be permitted. Additionally, local governments can enter into lease contracts through private contracts, and the usage fee rate will be reduced from the existing 5% to 2.5%.
The government also added unlisted stock paid-in kind to the targets of private contracts to allow sales to fund management companies of mother investment funds, promoting diversification of demand. Furthermore, a preemptive purchase right for stocks paid-in kind will be granted to small and medium-sized enterprises and mid-sized companies who paid in stocks, supporting smooth business succession.
Moreover, to revitalize land development, the Urban Regeneration Act, the Rural and Fishing Village Maintenance Act, and the Tourism Promotion Act have been added to the laws cited for expanding the scope of state-owned land development.
A government official stated, "Through the amendment of the State Property Act Enforcement Decree reflecting the expansion support for living SOC and improvements to the paid-in-kind stock system, we plan to further enhance the efficiency of state property management."
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