Strengthening Special Supply Criteria for Sejong Apartments... Priority for Non-Homeowners and Reduced Supply Ratio

[Asia Economy (Sejong) Reporter Jeong Il-woong] The criteria for special apartment supply provided to employees of institutions relocated to Sejong will be strengthened. While maintaining the original purpose of creating a stable residential environment and supporting settlement for relocated institution employees, the aim of strengthening the criteria is to curb speculative apartment supply.

On the 29th, the Administrative City Construction Agency announced that it will improve the special apartment supply system in Sejong with these contents. The special supply system has been operated since 2011 to create a stable residential environment and induce early settlement for relocated institution employees.

However, recently, as housing prices in Sejong City have risen, there have been continuous criticisms that the special supply system prepared for relocated institution employees has been distorted into a kind of privilege. In addition, at this point when the second phase of Sejong New City construction is being completed, issues such as the completion of the administrative capital have been added, and speculative apartment supply deviating from the original purpose of the special supply system has come under scrutiny, increasing calls for system improvement.

Accordingly, the Administrative City Construction Agency plans to improve the system with keywords such as priority supply to non-homeowners in Sejong apartments, reduction of the special supply ratio, and strengthening management of winners.

First, the improvement plan changes the current special supply criteria, which are supplied to non-homeowners and one-homeowners without separate priority, so that “50% of the special supply apartments for relocated institutions are supplied first to non-homeowners.” Then, the remaining apartments will be supplied to non-homeowners and one-homeowners, but one-homeowners can receive special supply apartments on the condition of “disposing of their existing home.”

In particular, the Administrative City Construction Agency decided not to include repeatedly newly established institution employees such as teachers in the special supply target in the future. Reflecting the existing criteria that exclude new employees and transferees of other special supply target institutions because teachers and others are aware of working in Sejong and applied (through appointment exams), the special supply for teachers and others will also be eliminated.

Additionally, it will be clarified that the special supply qualification for relocated institution employees is granted only once per individual (limited). If a relocated institution employee is eligible for special supply but has already received the special supply benefit, they will not receive duplicate benefits.

A plan to gradually reduce the special supply ratio for relocated institution employees will also be pursued. The Administrative City Construction Agency plans to reduce the special supply ratio for relocated institution public officials from 50% this year to 40% in 2021, 30% in 2022, and 20% from 2023 onward.

Furthermore, the timing when newly established or relocated public institutions in Sejong can be designated as special supply target institutions will be adjusted from the land purchase date to the construction start date. Also, when the head of a special supply target institution issues a confirmation letter to a special supply winner, it will be stipulated in the “Detailed Operation Standards for Special Housing Supply” that the issuance must be recorded and stored in an issuance ledger, thereby strengthening the overall management system of special supply, the Administrative City Construction Agency explained.

The Administrative City Construction Agency will announce this system improvement for public comment and collect opinions until mid-next month. Afterward, through procedures such as regulatory review and consultation with the Ministry of Government Legislation, the improvement plan is scheduled to be implemented from January 1 of next year.

Kim Bok-han, Director of Urban Planning at the Administrative City Construction Agency, said, “We expect that the improvement of the special supply system for relocated institutions will have a positive effect on housing supply focused on non-homeowners and actual demanders,” and added, “The Administrative City Construction Agency will continue to do its best to ensure that the special supply system is operated reasonably in line with the public’s expectations.”