Yoon Administration's First Ministry of Land, Infrastructure and Transport Audit: Key Issues... 'Gwangju Collapse, Deregulation, Taxi'

[Image source=Yonhap News]

[Asia Economy Reporters Minyoung Kim and Hyunju Lee] The first National Assembly inspection of the Ministry of Land, Infrastructure and Transport under the Yoon Seok-yeol administration is expected to focus on issues such as deregulation of maintenance projects, taxi fare increases, and various on-site safety management problems.

According to the Land, Infrastructure and Transport Committee of the National Assembly on the 6th, Jung Ik-hee, CEO of HDC Hyundai Development Company, will attend the Ministry of Land, Infrastructure and Transport inspection as a witness, and Lee Seung-yeop, representative of prospective residents of Hwajeong I-Park, will attend as a reference person.

Previously, in June last year, a collapse accident occurred at the redevelopment site of Hakdong 4 District in Dong-gu, Gwangju, and in January this year, another collapse occurred at the Hwajeong I-Park apartment construction site in Seo-gu, Gwangju. Lawmakers belonging to the Land Committee plan to focus their inquiries on HDC Hyundai Development’s responsibility for construction site accidents and measures to prevent recurrence. In addition, questions are expected to focus on safety issues such as the status of safety accidents and various incidents at construction sites, as well as the actual status of railway safety accidents.

Regarding taxi call fees and the taxi crisis, Ahn Gyu-jin, Vice President of Kakao Mobility, has been invited. Questions are expected to focus on coexistence plans between Kakao Mobility and the taxi industry. In particular, questions will continue regarding the Ministry of Land, Infrastructure and Transport’s stance and role on criticisms of Kakao Mobility’s monopoly abuse and large corporations encroaching on small markets.

Taxi fare increases are also an issue. The Ministry of Land, Infrastructure and Transport recently announced a 'Late-night Taxi Shortage Relief Plan' that raises late-night call fees in the metropolitan area up to 5,000 won and secures alternative taxi means such as Tada and Uber.

Deregulation of reconstruction and redevelopment is also expected to be a key issue. On the 29th of last month, the government announced a 'Reconstruction Burden Reduction Plan' that includes raising the exemption amount for the reconstruction excess profit tax to 100 million won and reducing the burden for one-household-one-home owners who have lived for more than 10 years to about half. Some progressive circles criticize this as a policy for real estate vested interests, so conflicting inquiries between ruling and opposition parties are expected.

The enactment of a special law for first-generation new towns is also expected to be an issue. President Yoon Seok-yeol promised during his candidacy to enact a special law to promote redevelopment projects in first-generation new towns, but detailed measures to implement this have not been prepared, causing backlash from residents of first-generation new towns. In addition, questions related to real estate issues such as improvements to the housing subscription system, supply of integrated public rental housing, realization of official real estate prices, and compensation for land in third-generation new towns are expected to continue.

Inquiries related to the recent mass resignations of heads of agencies under the Ministry of Land, Infrastructure and Transport are also anticipated. Former Korea Expressway Corporation President Kim Jin-sook expressed her intention to resign just two days after Minister Won ordered a strong audit regarding the reduction of food prices at highway rest areas last month. Previously, former LH President Kim Hyun-joon also resigned, and on the 4th, Kwon Hyung-taek, President of the Housing and Urban Guarantee Corporation (HUG), suddenly expressed his intention to resign. This is the third time a head of an agency under the Ministry of Land, Infrastructure and Transport has expressed resignation.

Specific plans to improve the living environment for vulnerable housing groups, related to the fatal accident caused by basement flooding last summer, as well as illegal acts or misconduct by ministry officials, are also expected to be raised during the inspection.