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In a large-scale development project in Gangnam, Seoul, it is expected that public contributions, which are cash paid by donations, can be used to support the underdeveloped areas of Gangbuk.

According to the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport, the Ministry of Land, Infrastructure and Transport recently decided to revise the'Act on Planning and Utilization of National Territory' (National Territory Planning Act) with the same content.

Public contributions are donated in cash for part of the development profits instead of permitting local governments to reduce floor area ratio or change usage when conducting development projects.The current National Territory Planning Act provides these contributions to the district unit planning area where the development project is being made. It is only used by basic local governments.

In the future, public contributions will be made available to metropolitan local governments.

The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are solidifying the policy for revision of the law and are discussing the ratio of public contributions between the metropolitan area and the basic local government.

It is reported that the Ministry of Land, Infrastructure and Transport is referring to the recently revised'Act on the Recovery of Excess Profit from Reconstruction'.

The law, which recently passed the National Assembly, changed the rate of use of resources for reconstruction charges to 50% for the country, 20% for the metropolitan area, and 30% for the basics, leaving the national rate to be, 30% for the metropolitan area, and 20% for the foundation.

An official from the Ministry of Land, Transport and Maritime Affairs said, "There was a policy on how to allow public contributions to be used by metropolitan local governments, but it has not been decided at what proportion to distribute public contributions."

This is what the late Mayor of Seoul Park Won-soon has argued for years.

Mayor Park also posted a post on Facebook on the 5th of last month and urged the Ministry of Land, Infrastructure and Transport to amend the relevant laws and regulations, saying, "We should not monopolize the enormous development profits of Gangnam only in Gangnam, but for balanced development of the outlying regions of Gangbuk." .

The Ministry of Land, Infrastructure and Transport is planning to propose an amendment to the law through the legislative legislation in this month.

In addition to the policy of the Ministry of Land, Infrastructure and Transport, Democratic Party Rep. Chun Joon-ho is also preparing an amendment to the National Territorial Planning Act.

According to Mayor Park, the public contributions of the three Gangnam districts, including Gangnam, Seocho, and Songpa, from 2020 to 2021 amounted to 2.4 trillion won, which is 81% of the total public contribution of Seoul.

If the revised bill is passed as soon as possible, a significant amount of 2.4 trillion won to be collected from Gangnam is expected to be used in other regions such as Gangbuk. 

(Photo = Yonhap News)