Ruling party demands transfer of public housing approval powers from Seoul to Land Ministry

The ruling Democratic Party of Korea is demanding that project approval authority for public housing — currently delegated to the Seoul mayor under a presidential decree implementing the Special Act on Public Housing — be transferred back to the minister of land, infrastructure and transport. The party argues that urban public redevelopment projects, including urban complex development schemes, are being delayed by unnecessary administrative procedures imposed by the Seoul Metropolitan Government.

Democratic Party lawmaker Kim Nam-geun made the demand Wednesday at a field briefing on the Yaksu Station public urban complex development project, saying the government "should also consider amending the enforcement decree of the Special Act on Public Housing so that the land minister holds the approval authority and can push the project forward swiftly, in line with the original legislative intent."

Kim said the government and Korea Land and Housing Corporation had announced plans to accelerate housing supply in the greater Seoul area through urban complex development projects, but that unnecessary administrative procedures by the Seoul Metropolitan Government were holding up progress.

"The Seoul public urban complex development project is designed to supply about 59,000 units across 34 sites in Seoul," Kim said. "Had it proceeded normally, it would have played a major role in resolving Seoul's housing shortage and jeonse and monthly rent crisis." Kim also claimed the project had been designed to complete plan approvals by Sept. 24, 2024, but was stalled during the Yoon Suk Yeol administration and under Seoul Mayor Oh Se-hoon, forcing an extension of the project timeline.

"Under the Special Act on Public Housing, the land minister originally held the project approval authority, and it was delegated to Seoul through the enforcement decree, which is why the Seoul mayor now exercises it," Kim said. Kim added that "if Seoul continues to drag its feet as it has been doing, we should consider amending the enforcement decree again so that the land minister holds the approval authority and can push the project forward swiftly."

Land Minister Hong Ji-seon, however, drew a line at an immediate transfer of project approval authority. Hong explained that "the original intent of the law was that giving licensing and permit authority to local governments, which carry out administrative work directly on the ground, would speed up projects and allow residents' opinions to be reflected more quickly."

Hong added that Seoul's practice of bundling multiple items into a so-called "pre-integrated plan" — a procedure with no legal basis — while exercising its licensing authority "is itself an unreasonable measure that prevents the project from gaining momentum, from the residents' perspective."

"We have not set a separate deadline for consultations, but the faster we move, the greater the benefit to residents," Hong said. "We will proceed with working-level consultations as quickly as possible."

Meanwhile, Hong addressed the disagreement with Gangnam-gu and Seocho-gu over the timing of levies under the reconstruction excess profit recapture regime, saying the ministry "has requested a legal opinion and is awaiting the result."

Hong was cautious, however, on whether the regime would be implemented immediately. "The reconstruction excess profit recapture system has the purpose of stabilizing housing prices, but there are also views that the burden is excessive and infringes on property rights," Hong said. "A ruling on constitutionality has been issued, and a bill to abolish the system is pending in the National Assembly, so we will review the matter from multiple angles." Asked about growing confusion caused by delays in implementing the regime, Hong added the ministry would "make every effort to produce a result as quickly as possible."

Hong also rebuffed criticism from Seoul Mayor Oh Se-hoon, who said Tuesday that the Land Ministry was allowing a 60-year monopoly on the Namsan cable car to continue by dragging its feet on amending the relevant regulations. "We are gathering opinions from all sectors in preparation for amending the enforcement decree, and we are also closely monitoring Seoul's final review," Hong said.

"The amendment to the Rail Transport Act is significant in that it has laid the groundwork to secure the public interest and safety of rail businesses that had long been neglected, and to institutionally correct the harms arising from monopolistic status," Hong added. "The intent is not to promote gondola operations, is it?"