How the Latest Urban Planning Reforms Could Boost Public Housing: Key Insights and Implications

On February 10th, a bill aimed at increasing floor area ratio incentives for public redevelopment and reconstruction projects, while expanding the authority of the Minister of Land, Infrastructure and Transport to designate land transaction permission zones, was passed by the National Assembly’s standing committee under the ruling party’s leadership.

The National Land and Transportation Committee convened a full meeting that day and approved an amendment to the Urban and Residential Environment Maintenance Act. This amendment allows for increasing the floor area ratio for redevelopment and reconstruction projects undertaken by public institutions, such as the Korea Land and Housing Corporation (LH), to 1.3 times the legal limit.

Currently, the maximum floor area ratio for public redevelopment is 360% (1.2 times the legal limit) in general residential areas, while for public reconstruction, it stands at 300% (1.0 times the limit). The amendment aims to raise these figures to a maximum of 390%. Notably, it excludes private redevelopment projects, effectively bolstering support for public initiatives.

This legislation is a follow-up to the government’s September 7th supply measures announced last year and was prioritized for the February extraordinary National Assembly session. However, due to delays in the National Land Committee’s subcommittee review, the bill was presented to the full meeting without a subcommittee decision.

The full meeting also passed the Real Estate Transaction Reporting Act Amendment, which expands the Minister of Land’s authority to designate land transaction permission zones. This too was passed without a subcommittee decision, led by the ruling party.

Current law only allows the Minister of Land to designate permission zones spanning two or more administrative districts. The amendment expands this authority to cover individual local governments, including Seoul.

Lee Jong-wook, the opposition party’s representative from the People Power Party, criticized the move: “Regardless of party affiliation, it’s a fundamental duty of National Assembly members to protect citizens’ property rights against arbitrary administrative overreach. At the very least, we should have received and discussed the subcommittee’s findings before bringing it to the full meeting. This reckless approach jeopardizes future committee operations.”

In response, Bok Gi-wang, the ruling Democratic Party’s representative, countered: “I repeatedly requested subcommittee meetings, but seeing no progress, I felt it was time for decisive action. Throughout this process, I maintained communication with the former representative and ensured a balanced exchange of supporting and opposing views.”

In other business, the National Land Committee approved a request for an audit by the Board of Audit and Inspection regarding the delayed delivery of Seoul Subway Line 5 trains. The audit will target the Seoul Metropolitan Government, Gyeonggi Province, Korea Railroad Corporation, and the Ministry of Land, Infrastructure and Transport.

The committee also voted to report Park Sun-soon, the CEO of Daewon Systems (the rail vehicle manufacturer responsible for the delay), for violating the Act on the Aggravated Punishment of Specific Economic Crimes (fraud).

Furthermore, former Vice Minister of Land Kim O-jin will be reported for violating the National Assembly Testimony and Appraisal Act (perjury), following an official request from the special prosecutor investigating Kim Keon Hee.