Abstract

In the last Government’s 5.6 Real Estate Measures, “Public Redevelopment Project in which the Public(LH) Participates” targeting Redevelopment Project Ares that had been stagnant for a long time. was introduced in order to relive the overheating phenomenon of the nationwide housing market including the metropolitan area. Especially, the government revised “the Act on the Improvement of Urban Areas and Residential Environments” in order to supply enough housing in the city-center and to improve the residential environment of old residential areas through the promotion of the “Public Redevelopment Project.” At the same time, the government has implemented various institutional improvements for promoting housing supply in the inner city. Analysing on the characteristics of these institutional improvements, it is mainly focused on the conditions and support for the project targets and the macroscopic point of view, such as permitting business participation as a joint operator of public enterprise when the requirements of public purpose are met, introducing a defined equity system, supplying cheap housing, and preventing sprawling development. Of course, in the early stages of the policy, it is necessary to strengthen the characteristics as a public purpose and encourage the implementation of the project, as well as strengthen project support by deregulation of constructions. However, in order to revitalize the “Public Redevelopment Project” in consideration of effectiveness and the perspective of the main promoter(residents) in the future, in addition to the “Act on the Improvement of Urban Areas and Residential Environments,” other institutional reforms related to the “Public Redevelopment Project” should be also introduced further.

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