'Daejang-dong Prevention Act' Urban Development Act and Housing Act Amendments Passed in Plenary Session... Preventing Real Estate Development Privileges

Speaker of the National Assembly Park Byeong-seok is approving the partial amendment to the National Human Rights Commission Act, which includes provisions for establishing a Military Human Rights Protection Officer within the National Human Rights Commission, during the plenary session held at the National Assembly on the 9th. Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Jun-yi] The ruling party's proposed amendments to the Urban Development Act and the Housing Act, known as the 'Daejang-dong Prevention Law,' have passed the National Assembly plenary session.

On the 9th, the National Assembly held a plenary session and approved the 'Partial Amendment to the Urban Development Act,' which limits the private sector profit rate in public-private joint urban development projects, and the 'Partial Amendment to the Housing Act,' which applies a price ceiling system to public-private joint urban development projects.

The amendment to the Urban Development Act was passed with 172 votes in favor and 2 abstentions out of 174 members present, while the amendment to the Housing Act was approved with 170 votes in favor and 1 abstention out of 171 members present.

However, the Urban Development Act amendment does not specify the upper limit of the private participant's profit rate in detail and leaves it to be determined by enforcement ordinances.

Under the current law, land developed by corporations established through public-private partnerships is classified as private land and is exempt from the application of the price ceiling system, which the amendment aims to prevent excessive privileges as seen in the Daejang-dong development project case.

The Democratic Party is promoting the 'Three Laws to Prevent Daejang-dong,' including the amendments to the Urban Development Act and Housing Act, as well as the Development Profit Recovery Act. However, the Development Profit Recovery Act remains pending in the Land, Infrastructure and Transport Committee due to opposition from the opposition party.