Park Jae-hong, President of the Korea Housing Association, "Zoning and Floor Area Ratio System Must Be Improved to Expand Urban Housing Supply"

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Park Jae-hong, President of the Korea Housing Construction Association, is being interviewed by Asia Economy at the Korea Housing Construction Association in Yeouido, Seoul, on February 14 last year. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Jiwon] "Improvement of the use and floor area ratio system for expanding urban housing supply and the establishment of a specialized guarantee institution for small and medium-sized housing companies are necessary."

Park Jaehong, President of the Korea Housing Builders Association, emphasized the urgent need for government support in an interview marking his first anniversary in office, stating, "The housing construction industry is expected to face difficult business conditions this year due to the government's continuous strengthening of high-intensity housing regulations."

President Park identified the improvement of the use and floor area ratio system for expanding urban housing supply as a key policy reform project to be pursued this year. The use and floor area ratio system is a regulation that lowers the floor area ratio as the residential ratio increases when calculating the floor area ratio of mixed-use residential buildings.

He stressed, "The use and floor area ratio system, operated under local government ordinances, uniformly regulates the building use ratio and floor area ratio in commercial areas, causing difficulties in sustainable urban housing supply and rational urban management."

To address these issues, President Park explained the need to apply the maximum floor area ratio when establishing public contribution district unit plans. He expects that improving the use and floor area ratio system will enhance the utilization of limited urban land, expand the supply of public rental housing, and revitalize residential regeneration projects.

He also requested support to activate short-term supply of small-scale housing such as row houses. President Park said, "Flexible application of urban architectural regulations is a priority," adding, "Restrictions on building height to secure sunlight and ventilation should be eased, and legal parking requirements for row and multi-family housing should also be relaxed."

In addition, President Park emphasized the necessity of ▲support for loan guarantees for small-scale housing construction funds ▲securing effectiveness of incentives for public land supply ▲expanding construction fund support for newly built leased housing under purchase agreements ▲expanding tax benefits for newly built leased housing under purchase agreements ▲improving exclusion of unsold housing from comprehensive real estate tax in building permits ▲realistic refund of VAT on construction materials, etc.