Ministry of Land, Infrastructure and Transport Re-requests Public Institution Management Office to Review Project Participation
Plans to Supply Land Lease Housing Using Gold Town Method
Seoul Housing and Communities Corporation (SH Corporation) has repeatedly requested the Office for Government Policy Coordination and the Ministry of Land, Infrastructure and Transport to actively review and decide to allow participation in the development of the 3rd New Towns.
On the 2nd, SH Corporation announced that it had again requested a decision on participation in the 3rd New Towns (Gold Town) project in April (Office for Government Policy Coordination) and May (Ministry of Land, Infrastructure and Transport) to contribute to the supply of 500,000 New:Home units, stabilization of housing prices, resolution of low birth rates, and stabilization of the housing market. This is the second request following November last year.
In November last year, SH Corporation requested the Ministry of Land, Infrastructure and Transport to participate in the development of Gwangmyeong Siheung, Gwacheon, Namyangju Wangsuk 2, Hanam Gyosan among the 3rd New Towns, and the Guri Topyeong 2 district, the new public housing district announced by the government closest to Seoul. The reason was the need for rapid supply and expansion of public housing to stabilize housing for Seoul and Gyeonggi residents.
Previously, the Ministry of Land, Infrastructure and Transport requested an authoritative interpretation from the Ministry of the Interior and Safety regarding SH Corporation’s intention to participate in the 3rd New Towns project. The Ministry of the Interior and Safety issued an interpretation stating that it is difficult to recognize projects conducted in Gyeonggi Province. This is because issues such as how to bring profits made by SH Corporation outside its jurisdiction (Seoul) back to Seoul have not been clearly resolved.
SH Corporation plans to supply land lease-type sale housing (Baeknyeon Housing) in the form of Gold Town (household circulation residential model) for citizens who do not need to commute to Seoul, thereby simultaneously solving housing problems in Seoul and Gyeonggi Province. Gold Town refers to a project where the corporation purchases and leases homes in Seoul owned by retirees wishing to move to regions such as Gyeonggi and Incheon, and then resupplies them to young people and newlyweds.
Currently, under the Public Enterprises Act and Seoul city ordinances, SH Corporation is prohibited from conducting projects outside Seoul, so legal amendments are also necessary. SH Corporation believes that solutions can be found through methods such as signing agreements with local governments to jointly promote projects. SH Corporation has jointly developed Sangye-dong in Uijeongbu City and Wirye New Town with Korea Land and Housing Corporation.
Kim Heon-dong, President of SH Corporation, said, "To swiftly implement government and Gyeonggi Province policies such as the government’s 1 million public housing units, New:Home 500,000 units supply, and Gyeonggi’s 200,000 half-price apartments, we again request active review and decision to allow SH Corporation to participate in the 3rd New Towns (Gold Town) and other projects."
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