MOCT Considers Waiving
Surcharge on Infrastructure for
Single-Unit Housing Developers

MOCT Minister Choo meets with representatives of the construction industry

The government is considering exempting single-unit housing complex developers from the surcharge on the development of infrastructure.
Minister of Construction and Transportation Choo Byung-jik said his ministry will affirmatively consider waiving the surcharge on the development of infrastructure to single-unit hosing complex developers as the construction industrial community requested. MOCT Minister Choo made the remark during a consultative meeting with representatives of the domestic construction industry held at the Ramada Renaissance Seoul on May 9.
Also at hand at the meeting were Kang Pal-moon, assistant minister of the Headquarters for Housing Welfare, Seo Jong-dae, assistant minister of the Headquarters for Construction Affairs, Kwon Jin-bong, road planning officer, Lee Jae-hong, urban environment planning officer, Ryu Young-chang, technology & safety planning officer and Sohn Tae-rak, construction economy team chief, all from the MOCT as well as Kwon Hong-sa, president of the Construction Association of Korea, Lee Jong-soo, president of Hyundai Engineering & Construction Co., Lee Yong-koo, vice chairman of Daelim Industrial Co., Kim Kab-ryul, president of GS E&C, and Choi Jong-soo, executive vice president of CAK.
Following the meeting, Assistant Minister Seo of the Headquarters for Construction Affairs reconfirmed the possibility of exempting single-unit housing complex developers from the surcharge on the development of infrastructure, saying that the enforcement degree in the making will reflect the possible exemption.
Minister Choo said he shared the view that the construction industry will strengthen ways of promoting collaboration between large-size contractors and SMEs through such efforts as their joint bid to secure orders. The minister added that the government plans to provide incentives to large corporations and SMEs who join forces in undertaking the so-called New Town Construction Projects and overseas construction projects.
The ministry plans to channel about 500 billion won in R&D funds starting 2007. The funds will be made available for a joint study between large corporations and SMES. In particular, their joint participation in overseas construction projects will be given incentives, the ministry said.
As to the construction industry's concerns over a decline in state-administered projects, Minister Choo said the private sector investments into SOC projects will be positively accepted or planned ones will also be advanced. The minister noted that the ministry will make efforts to create jobs and not diminish the volume of orders by pushing ahead with such state-initiated so-called Corporate City, Administration-Multipurpose City, Innovative City and New City projects as planned.
Minister Choo reconfirmed the ministry's decision to proactively facilitate restructuring of the construction industry, while overhauling such systems as the penalty scheme on poor construction and the accumulative system on assessing actual construction costs. The minister also warned that the government will weed out marginal and poorly managed companies to develop reliable construction companies, saying that an issue of restructuring the domestic construction industry is one of the essential tasks it will carry out, and the ministry will make sure the implementation of restructuring without fail.
Minister Choo vowed that the government will be unwavering in implementing policies designed to discourage real estate speculation the participatory government has decided to introduce or have almost finished preparations for put into effect real estate-related laws. He was apparently referring to the on-going pro and con debate among the presidential office, the ruling Uir Party and the government that has been heating up over a call for easing stringent real estate tax laws, citing the ruling party's humiliating defeat in the just-ended local elections. nw

Minister of Construction and Transportation Choo Byung-jik holds a consultative meeting with representatives of the domestic construction industry held at the Ramada Renaissance Seoul on May 9.