Discussion on Expanding Housing Supply with Ministry of Land
Proposal to Link New Purchase Rental and Long-term Jeonse Housing II
Request for National Funding Support for Parking Lot Installation in Low-rise Residential Areas
The Seoul Metropolitan Government has requested the Ministry of Land, Infrastructure and Transport to expand certain authorities to revitalize redevelopment projects. They also sought cooperation on utilizing newly purchased rental housing as Long-term Jeonse Housing II.
On the 19th, Seoul held a housing policy council meeting with the Ministry of Land, Infrastructure and Transport and made these requests, the city announced on the 25th. The meeting was arranged to discuss follow-up measures for the August 8 housing supply expansion plan. Attendees included Yoo Chang-soo, Seoul’s Deputy Mayor for Administration, Jin Hyun-hwan, the Ministry’s First Vice Minister, and other housing policy officials.
Both agencies agreed to actively cooperate to expand housing supply and stabilize the market, starting with the immediate expansion of long-term Jeonse housing and addressing issues to be discussed in the future. Additionally, the city proposed three major tasks: promoting redevelopment projects, expanding long-term Jeonse housing supply, and revitalizing non-apartment housing.
First, the city requested an expansion of the authority to establish and amend redevelopment promotion plans. Currently, under the law, district offices hold the authority to draft and amend these plans. The special mayor can only establish or amend redevelopment promotion plans when directly designating a district. The city explained that this causes difficulties in rapid implementation due to unnecessary consultation periods. The Ministry stated it would consider allowing the special mayor to establish such plans in cases where plan changes are inevitably required.
Furthermore, the city requested that newly purchased rental housing (multi-family and multiplex houses) be allowed to transition to Long-term Jeonse Housing II (apartments). For example, newlyweds living in purchased rental housing such as multiplex or multi-family homes who have lived there for 10 years and had children could move to Long-term Jeonse Housing II designed for newlyweds and live there for an additional 10 years.
They also proposed simplifying procedures such as excluding public housing projects from investment reviews to reduce the minimum one-year period required for investment screening when local governments undertake new investment projects. In response, the Ministry announced that it plans to complete the simplification process next month for projects subject to investment review, which were submitted to the Ministry of the Interior and Safety in June.
Alongside this, the city proposed support for installing parking lots in low-rise residential areas with national funding, expanding the area for autonomous housing redevelopment projects to revitalize non-apartment housing, and improving the Korea Land and Housing Corporation (LH)’s newly purchased contract method. Other discussions included implementing reduced contributions for rental housing in redevelopment projects (applying correction coefficients), identifying sites for complex development such as aging government buildings, and cooperation regarding the designation of land transaction permission zones in Seoul.
Han Byung-yong, Director of the Housing Office, said, "The two agencies will continuously review and discuss the matters raised in this council to resolve them," adding, "We will work closely with the Ministry of Land, Infrastructure and Transport to provide quality housing supply and stabilize the real estate market and do our best."
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