Large Government Projects,Balanced National Development, Real Estate Market Policies

Metropolitan city hosts various events designed to create Seoul Brand to make itself more colorful and enjoyable for residents and tourists

The National Assembly Land, Transport and Maritime Affairs Committee is in charge of such matters related to land and housing that are close to the every day lives of the people, which include roads, railroads, harbors, aviation, water resources and other areas that need to be dealt with from a long-term planning perspective. These are the nation’s key infrastructural projects, not subject to political arguments, but to be handled from a policy viewpoint when they are being addressed.
In the upcoming session of the National Assembly, key issues of arguments would include such major national projects as the Four Rivers Restoration Project and others related to national balanced development such as real estate market policies, which are certain to invite policy arguments from both sides of the aisle.
The Four Rivers Restoration Project will require some 16.9 trillion won to complete by 2012, as it is designed to preclude major floods, cope wisely with climate change, solve water shortages, and make spaces along those rivers available for tourism, leisure and other activities for people to upgrade the added values of those rivers including the Han and Nakdong Rivers by clearing them from upstream to downstream.
If other directly related projects were included, the total estimated costs of the Four Rivers Restoration Project would run to 22.2 trillion won from start to finish. Arguments could occur along the lines of the project’s appropriateness, the costs and government fund allocation, which runs to 6.7 trillion won for this year alone, as well as effects on the ecology and water resources. The opposition would call for downsizing the project to minimize the costs, arguing that the project would ultimately lead to the Seoul-Busan Grand Canal that President Lee promised during the presidential campaign and forfeited as opposition to the plan mounted.
Also, the opposition would question the government’s policies to stimulate the economy by expanding the housing supply as housing rental charges rise in major cities, especially in the Seoul area, shaking the real estate market. Arguments will center on policy selections and directions.
The opposition party and ruling party will also argue fiercely over the government plan to lift the ceiling on the housing allocation prices to invigorate the economy by spurring development projects in the free economic and tourism zones to stabilize the housing market. Opposition would point out the possible destabilizing of the housing market if the ceiling on new apartment prices is lifted, making it very hard for both sides to come to a compromise on the issue.
There also is a great possibility of clash on easing regulations surrounding the Seoul area including 10 cases of revisions on the Capital Area Reform Plan Law, one of the thorniest issues facing the parliament this fall.
Legislators from the Seoul area claim the law should be revised to allow for the development of the less developed areas in the capital district, while those from other parts of the country reject the revisions on the ground that it would alienate the rest of the country, going against the principle calling for balanced development of the entire nation.
Another conflicting issue is the development of reform cities and the administrative capital initiated by the previous government led by late President Roh Moo-hyun. Voices are getting louder in the Yeouido area calling for reconsideration of all of the plans, claiming they may not be good for the entire country.
As far as reform cities are concerned, they have many issues to be taken care of before they are pushed including the mergers of state-owned companies, the disposal of state-owned real estate before the moves and the states of their operations, as they have a great impact on the city they relocate to.
Discussions on the law for the construction of Sejong City, the projected administrative capital, should go smoothly before the government makes firm moves on the project.
Other issues that are likely to be opposed by opposition parties include the sale of a 49 percent stake of the Incheon International Airport and the privatization of the regional airports around the country. nw

By Lim Byeong-kyu Senior Staff Director The Land, Transport and Maritime Affairs Committee of the National Assembly