Jinseongjun "Daejang-dong Development Profit Recovery is Three Times Greater Than the Total National Recovery Over 21 Years"

Jinseongjun Assemblyman

[Asia Economy=Reporter Lee Young-gyu] Since the enforcement of the 'Urban Development Act' in 2000, more than 200 urban development projects have been carried out nationwide, but less than 5% of these projects were subject to development charges, and the total amount collected was confirmed to be only 176.8 billion KRW.

This amount is about 30% of the 550.3 billion KRW that Lee Jae-myung, then mayor of Seongnam (currently Governor of Gyeonggi Province), claimed to have recovered from the recently controversial Seongnam Daejang-dong private public development project. The amount recovered from the Seongnam Daejang-dong development is three times greater than the total amount recovered from all urban development projects nationwide over the past 21 years.

According to the 'Historical Urban Development Project Development Charge Imposition and Collection Performance' submitted by the Ministry of Land, Infrastructure and Transport to Jin Sung-jun, a member of the National Assembly Land, Infrastructure and Transport Committee from the Democratic Party of Korea (Seoul Gangseo-eul, Land, Infrastructure and Transport Committee), since the enforcement of the Urban Development Act in July 2000, out of 241 completed urban development projects nationwide over the past 21 years, only 10 projects were subject to development charges, with a total collection amount of 176.8 billion KRW.

This is about one-third of the 550.3 billion KRW that Governor Lee Jae-myung independently recovered from a single urban development project in the Pangyo Daejang district of Seongnam City while serving as mayor.

Expanding the scope to 'Historical Development Charge Imposition and Collection Performance by City and Province,' since the enforcement of the Development Profit Recovery Act in January 1990, the cumulative development charges collected over 31 years amount to 5.4997 trillion KRW, averaging about 177.4 billion KRW annually. The 428.3 billion KRW collected last year is the largest amount in the past 10 years.

By local government, among the 5.4997 trillion KRW collected over 31 years, the local government that collected the most development charges is Gyeonggi Province with 3.2164 trillion KRW, accounting for 58.5% of the total historical development charges.

In particular, Gyeonggi Province collected 204.4 billion KRW last year, which accounts for 47.7% of the nationwide total development charges collected (428.3 billion KRW).

Assemblyman Jin Sung-jun stated, "The current development charge burden rate is excessively low, and excessive allowances for reductions and exemptions seem to be helping the private sector privatize astronomical development profits. With the social interest in recovering private development profits rising sharply due to the Cheonhadongin and Hwacheondaeyu incidents, we need to find alternatives to prevent excessive privatization of development profits."