On February 10, the National Assembly’s Land, Infrastructure and Transport Committee passed a bill, spearheaded by the ruling party, to boost floor area ratio incentives for public reconstruction and redevelopment projects. The legislation also expands the authority of the Minister of Land, Infrastructure and Transport to designate land transaction permission zones.
During the full committee meeting, lawmakers approved an amendment to the Urban and Residential Environment Maintenance Act. This change allows public institutions, such as the Korea Land and Housing Corporation (LH), to increase the floor area ratio for redevelopment and reconstruction projects up to 1.3 times the legal limit.
Currently, the maximum floor area ratio for public redevelopment in general residential areas is 360% (1.2 times the legal cap), while public reconstruction is capped at 300% (1.0 times the limit). The amendment aims to raise these limits to a maximum of 390%. Notably, private redevelopment projects are excluded, signaling a push to bolster public initiatives.
This legislation is a follow-up to the government’s housing supply plan announced last September 7 and was earmarked as a priority for the February extraordinary session of the National Assembly. Due to delays in the subcommittee’s review, the bill was presented to the full committee without prior subcommittee approval.
The committee also passed an amendment to the Real Estate Transaction Reporting Act, expanding the Minister’s authority to designate land transaction permission zones. Currently, the Minister can only designate these zones in areas spanning multiple provinces, but the amendment would allow designation within a single local government area, such as Seoul.
Under current law, the Minister of Land, Infrastructure and Transport can only designate land transaction permission zones in areas that span two or more provinces. The amendment expands this authority to include individual local government areas like Seoul.
Opposition lawmaker Lee Jong-wook from the People Power Party criticized the process, stating, “Regardless of party lines, it’s our fundamental duty to protect citizens’ property rights against potential administrative overreach. We should have at least discussed the subcommittee’s findings before bringing this to the full committee. This rushed approach undermines our committee’s integrity.”
In response, ruling party lawmaker Bok Ki-wang defended the decision: “We’ve repeatedly requested subcommittee meetings, but seeing no progress, we felt it was time to act. We didn’t proceed unilaterally; we communicated with the previous subcommittee chair and ensured a thorough exchange of opinions on both sides.”
Additionally, the committee approved a request for an audit by the Board of Audit and Inspection regarding the delayed delivery of subway cars for Seoul Metro Line 5. This audit will involve the Seoul Metropolitan Government, Gyeonggi Province, Korea Railroad Corporation, and the Ministry of Land, Infrastructure and Transport.
The committee also voted to file charges against Park Sun-soon, the CEO of Daewon Systems, the manufacturer responsible for the delayed subway car delivery, for violating laws related to aggravated punishment for economic crimes (fraud).
Furthermore, former Deputy Minister of Land, Infrastructure and Transport Kim O-jin will face charges of violating the National Assembly Testimony and Appraisal Act (perjury) at the official request of Kim Keon Hee’s special investigation team.
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