Block the second large intestine... Promotion of upper limit on private profit rate

<Anchor> In the

process of developing Daejang-dong, the government has come up with measures to prevent recurrence in relation to private contractors taking excessive profits. When the public-private partnership jointly develops, it is decided to apply the pre-sale price cap system when the public stake exceeds half with the repayment of the profit rate of the private business operator.

Reporter Im Tae-woo reports.

<Reporter> The

dividend generated from the Daejang-dong development project was KRW 590.3 billion.

Seongnam Urban Development Corporation, which has a 50% stake in the business, received 183 billion won of this, but Hwacheon Daeyu, a private operator with only 1% stake, took a whopping 57.7 billion won and took profit.

The Ministry of Land, Infrastructure and Transport has come up with countermeasures as it has been pointed out that there are loopholes in the Urban Development Act, which does not set an upper limit on the development profits earned by private businesses in public-private joint projects.

In urban development projects jointly invested by the public and private sectors, we have decided to promote a plan that mandates that the private profit rate be set by law or set by an agreement between investors.

[Noh Hyung-wook / Minister of Land, Infrastructure and Transport (October 28): While maintaining the basic purpose of the law, the return of development profits is strengthened in the public interest. .]

Amendments have already been submitted to the National Assembly to limit the total profit rate that private investors will take to 6% or 10%, so it is expected to be discussed with the Ministry of Land, Infrastructure and Transport.

If the total development profit is 100 billion won and the private profit rate is limited to 10%, private operators cannot take more than 10 billion won.

In addition, the Ministry of Land, Infrastructure and Transport announced that the sale price ceiling will be applied to projects in which the ratio of public investment exceeds 50%, such as the Daejang-dong project, and the sale profits will be shared among many subscribers.