Among the 'Daejang-dong Prevention 3 Laws,' the Urban Development Act and Housing Act Pass the Land, Infrastructure and Transport Committee
[Asia Economy Reporters Oh Ju-yeon and Jeon Jin-young] The National Assembly passed the amendments to the Urban Development Act and the Housing Act, part of the so-called 'Daejang-dong Prevention 3 Laws' pushed forward in response to the preferential treatment allegations in the Daejang-dong project, at the Land, Infrastructure and Transport Committee plenary session on the 6th. Regarding the remaining Development Profit Recovery Act, the Democratic Party of Korea has adopted it as a party stance and plans to pass it through continuous negotiations with the opposition parties.
On the same day, Cho Oh-seop, the Democratic Party floor spokesperson, told reporters after the policy members' general meeting, "The three laws addressing real estate unearned income are the Urban Development Act, the Housing Act, and the Development Profit Recovery Act. Among these, the Urban Development Act and the Housing Act were passed this morning at the Land Committee plenary session through bipartisan agreement," adding, "The Development Profit Recovery Act has been adopted as a party stance."
Spokesperson Cho explained, "Although it has been adopted as a party stance by the Democratic Party, the conclusion at the general meeting was not to push it through unconditionally but to ensure the Development Profit Recovery Act passes through negotiations with the opposition."
At the Land Committee plenary session that morning, the National Assembly revised and approved the amendments to the Urban Development Act and the Housing Act as committee alternatives. The amendment to the Urban Development Act includes provisions allowing the private participant's profit in joint private projects to be set within 10% of the total project cost. The amendment to the Housing Act includes provisions to classify land developed through public-private joint urban development projects, like the Daejang-dong project, as public land and apply the price ceiling system accordingly.
The two bills passed at the plenary session that day are expected to be passed during this regular session of the National Assembly.
The Democratic Party plans to have the Development Profit Recovery Act, which has the greatest disagreement among the Daejang-dong Prevention 3 Laws, passed through future discussions with the opposition parties in the National Assembly. The Development Profit Recovery Act includes provisions to raise the development profit recovery rate for urban development projects from the current 20-25% to around 50%.
Spokesperson Cho emphasized, "The Democratic Party's position is to restore the rate to the originally proposed 50%," adding, "We will continue to reach agreements with the opposition and produce results."
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