In the area of smart and green cities

Demonstration of Intelligent Crime Prevention District and Commercialization Support System 1st~5th (2014~2019);

Smart City Maturity and Potential Diagnosis Model Development and Application Plan Research (2016); Study on the Systematic Expansion and Maintenance of Urban Facilities (2017); Study on Ways to Upgrade Smart Cities 5th, 6th (2017~2019); Study on Strategic Contermeasures According to Smart City Types (2018); Communication System Improvement Research for Smart City Revitalization (2018); National Greenhouse Gas Management Plan Based on National Territorial Information Analysis System Corresponding to New Climate System (2016); Research on Urban Correspondence System Against Climate Change and Advanced Technology Development Plan (2016~2017);

Research on Ways to Strengthen the Linkage Between National and Urban Planning and Coastal Planning Systems (2017).

The Urban Planning division will continue to conduct studies on urban policies in the face of the changing environment due to low economic·population growth, climate change and subsequent risks of natural disaster, technological innovation, social diversification, decentralization and increasing public participation.

Through this effort, the Institute will enhance its status and role as a pioneer of Korean urban policy and global urban research.

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Part 3

Urban Regeneration Research

Research on urban regeneration started in January 2005 at a working-level meeting with the Office for Government Policy Coordination with regard to the installation of an independent research institute of 17 persons in total. The Roh Moohyun administration embarked on new development projects to create new administrative capital, innovative city, and enterprise city as well as ones to transform existing urban districts to livable ones as a part of the national agenda. On December 26, a decision was made to establish a tentatively named

“New City Support Center” in the Korea Research Institute for Human Settlements (KRIHS) at the cabinet meeting presided by the Prime Minister in order to systematically support the implementation of the national agenda.

The City Innovation Support Center was installed in March 2006, with the aim of presenting “a new social role model” by connecting policies to the sites and efforts were made to create an UrBan Information Network homepage. (http://ubin.krihs.

re.kr) Although the need for the use of information

about advanced cases of foreign countries was high, most data and materials collected while carrying out research projects were considered as by-products and they were not managed systematically after the end of such projects. In the early stage, efforts were mainly made to identify the trends of advanced countries, and the center began to publish a series of “making livable cities” later in consultation with the Presidential Committee for Balanced National Development. Planning the Urban Region by Matsunaga Yasumitsu was translated and published as the first outcome of its publication project and this book explained the newunfamiliar concepts.

such as compact city, sustainable city, new urbanism, urban village, etc. The book became the bestseller of the month in the category of urban planning and its revision was published as well in response to high demand. Later, case studies, strategies, and communications of Machizukuri with the participation of citizens were published in series.

KRIHS also actively carried out government-sponsored projects. For instance, the institute

established guidelines on a development plan of industry-academy-research cluster in innovative city in order to support the task force for relocating public agencies of the Ministry of Construction

& Transportation and provided an improvement plan concerning the amendment of standards on calculating development gains to assist Multi-functional City Planning Division of the Ministry.

Thanks to the accomplishment of its UrBan Information Network website, KRIHS was selected as the best government-funded research institute in 2007 by the National Research Council for Economics Humanities and Social Sciences. The homepage was designated as one of the most recommended web sites for the youth by the Information Communication Ethics Committee.

As the information about world’s cities grows both qualitatively and quantitatively, the institute has conducted various activities such as the release of e-books allowing users to bookmark the information about global cities, operation of photo archive in which sorting and searching by city and topic are available, run overseas training programs, monitoring of pilot projects through a support council on making livable cities, education for residents and development of learning programs, roundtable meetings, release of special features, and hosting of

joint forums, etc.

Since 2009, the institute selected urban regeneration as its central theme and the City Innovation Support Center has expanded and was reorganized as the Urban Regeneration Research Center. It newly launched projects to publish and translate expert books related to urban regeneration from a long-term perspective. In an effort to make our neighbors, towns, and cities as livable ones by applying creative methods to be more specific, it began to publish a collection of books titled, Creative Urban Regeneration Series, which consisted of 85 books as of 2018. The center carried out a basic task each year. In the area of information about world’s cities, for instance, the center complied with the Web Content Accessibility Guidelines (WCAG) for better access for everyone, including people with disabilities, etc. and increased its content. As for the community support project, it operated “Making Gwanyang 2-dong a Livable Village: intensive course of autonomous university for good village” as the 2nd resident autonomous university and it was selected as a pilot village by the Ministry of Land, Transport and Maritime Affairs with yearly financial support of KRW 500 million.

In 2010, the center installed a support council as part of its activities to support the government policy to

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help basic settlement areas and local communities adapt to climate change and practice green growth by themselves, and run the Green Community Forum. As for community support activities, the center conducted “Gwanyang 1-dong: Imagine a green village” project along with Anyang residents.

Besides the project, the center jointly participated in a support project for small businesses with Anyang City under the theme of “Small Business, Big Change.”

In 2011, KRIHS carried out its activities in a way to diversify areas and strengthen internal capacity of the urban regeneration support organization, while cooperating with external organizations. City Regeneration Forum held meetings 4 times and a total number of 12 series books and translated books were published. In 2012, KRIHS supported the efforts made by the central and local governments to enhance capacity building for urban regeneration.

In 2013, the Special Act on Promotion of and Support for Urban Regeneration and the Enforcement Decree of the Act were established and it was an important period as legal grounds for urban regeneration such as basic guidelines on urban regeneration of the government were made.

The center participated in the process of enacting the Special Act and basic guidelines, and conducted

national R&D projects from July 2014 to December 2018 as a leading institute since it was engaged in a planned research titled, an Empirical Study on Urban Regeneration to Improve the Dwelling and Functions of Cities.

The center functioned as an urban regeneration support agency in accordance with the Special Act since 2014 and it was reorganized as the current Urban Regeneration Research Center in 2015.

In 2017, the center carried out various activities such as urban regeneration policy identification, extended support for developing urban regeneration policies, leading the efforts for urban regeneration, and consulting local governments in 2017 along with the implementation of new deal projects of the government. In 2018, the center developed a road map for urban regeneration which would be a milestone in pursuing the new deal project for the next 5 years and participated in the process of amending basic guidelines on urban regeneration.

Part 4

Housing & Real Estate Market Research

The rapid growth of national economy and urbanization have brought major changes to Korea such as the rise of the nuclear family, low birth rate, population aging, growing number of one-person or two persons household, and increasing housing supply. Likewise, housing and real estate policies continue to evolve and develop in response to the changing conditions. The primary goal of housing and real estate policy was to guarantee the residential stability by expanding housing supply and stabilizing real estate market. It was considered as the most effective policy direction to ensure the residential stability of ordinary citizens before the enactment of the Framework Act on Residence in 2015 and adoption of housing allowance as an individual benefit in 2016.

A large number of houses was supplied in the 1980s in order to achieve the policy goal of “residential stability by expanding housing supply.” However, the object of housing supply was not clearly defined in the early phase of housing supply expansion policy. Namely, it was only focused on quantitative expansion of housing supply

without a concrete program indicating which types of houses should be provided to whom.

It was the late 1980s that the concept of target group of housing supply was partially stated in the development stage of the housing policy. A construction plan of building 2 million new homes in 1988 was the starting point. Since then, houses for ordinary families as well as subsidized housing for low income groups began to be provided. Specifically, the construction and supply of housing for certain classes such as the permanent rental housing for people in the lowest income bracket and housing for low income workers was a critical turning point of the housing supply policy.

The early 1990s was the transition period of housing policy. Stabilizing housing prices and controlling speculative investment in real estate was an important policy task by 1991 due to increasing housing prices caused by the booming real estate economy during the period of building 2 million new homes. At that time, measures to control speculation in real estate were announced

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and restrictions on the resale of national housing was reinforced. In particular, the real-name property ownership system was fully implemented to enhance transparency in real estate transaction. The housing market began to be stabilized in 1992 as the supply of 2 million new houses took effect and the government’s housing policy partially shifted from regulation-based to self-regulating one.

There have been many changes in politics and the economy in the late 1990s. In the middle of the financial crisis which resulted in receiving emergency loans by the IMF, in particular, the housing market was extremely unstable and many symptoms such as house price crash, sudden increase of unsold houses, and crisis in housing lease occurred. To address such problems in the housing market, the government implemented multiple policies tailored to vitalize the housing business. For instance, the government gave tax benefits related to housing, decontrolled the price of private housing, activated reconstruction and redevelopment projects, and provided additional support for the mid-installment. The sluggish real estate market has led the difficulty in the housing for ordinary citizens. This brought a heightened interest in housing welfare and efforts were made to establish new policy goals and directions on this area, including the adoption of housing standards, development of housing welfare indicators, and stabilization of housing poverty group, etc.

In the 2000s, there were many changes in the surrounding

environment of the housing market. The issue of housing shortage was mostly resolved from the quantitative aspect as the diffusion ratio of housing was increasing significantly since 2002. On the other hand, the population and household structure has changed due to a low birth rate, population aging, and the rise of nuclear family, and people were increasingly paying attention to housing welfare. As the importance of distribution of income among different income brackets has emphasized, demands for enhanced housing welfare of low-income group and desire to relieve housing imbalances have strengthened.

However, the overheated market caused by sufficient liquidity and its sudden collapse due to the global financial crisis resulted in a highly volatile real estate market in the same period. The real estate market declined rapidly after the financial crisis and rebounded thanks to the government policy to revitalize the housing-related businesses, leading to sharply increasing housing prices in 2006. The global financial crisis took place in 2008 at the peak of the real estate market and the housing market contracted sharply. Likewise, the market was highly volatile and unstable in general.

In 2010s, the housing and real estate policy has developed in a way to sophisticate and reinforce measures to establish a stable market foundation and improve housing welfare. As policy changes have continued focusing on

the stabilization of housing market and improvement of housing welfare, the government reinforced or adopted measures in response to emerging policy demands and changes including supply of public rental housing, diversification of housing finance programs, and others.

Also, dwelling and housing policies from the social perspective have become issues of growing importance along with the physical perspective such as regeneration of residential areas to respond to rapidly increasing old houses, vitalization of residential communities, and response to low birth rate and population aging.

The expansion of housing supply and stabilization of real estate market have still become effective policy goals and efforts to establish the housing right as a fundamental one are made in terms of housing welfare policy for ordinary citizens. KRIHS has greatly contributed to developing the housing and real estate policy to the level equal to that of advanced countries. For instance, KRIHS, has played a significant role in enacting the Act on Special Measures for Facilitating the Supply of Rental Housing, the Housing Lease Protection Act, and the Act on Ownership and Management of Aggregate Buildings, and the implementation of the Decree on the Management of Apartment Houses as results of research on the stabilization of the housing market and supply of rental housing, management of apartment houses, and presentation on the direction of the mid- to long-term

housing policy for over the past 40 years. KRIHS has also supported the enactment of laws and implementation of systems directly through various research activities on the housing system of bond bidding, public concept of land ownership, construction of 2 million houses and new city, housing price cap system, and disclosing of the original unit cost of apartment, the adoption of post-sale system of the apartment, etc.

In the 21st century, expanding the scope of policy research to meet the changes of the times has become significantly important to KRIHS. As a result, Real Estate Market Research Center of which main role was to predict the real estate market and conduct analysis on the impact of related policies, and Housing Welfare Strategy Center which focused on the improvement of housing welfare for ordinary citizens were installed in 2008 and it was renamed as Housing Policy Research Center later.

Real Estate Market Research Center and Housing Policy Research Center are carrying out research activities to support the policy direction on housing that shifted its focus from provider-centered to the life cycle of each group of consumers, from the government-led to the one tailored to the needs of regions and local residents along with changing local and economic conditions. KRIHS is strengthening its support for the efforts of government so that its policy response and advancing role can be carried out as planned.

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Ⅰ.

Land research

Land is one of the three essential elements of a state that defines its political, economic, social, and cultural characteristics. The first Constitution of Korea, that served as the solid basis for the establishment of the Republic of Korea in 1948, guaranteed private landownership declaring that the country is a capitalist market economy. Based on this principle, Land Reform followed, in which land was purchased and redistributed by the government.

From the early 1960s, amid the rapid industrialization and urbanization, problems of land speculation began to emerge due to the imbalance between supply and demand of urban land because supply could not meet the sharp increase in demand. The problem worsened over time and, in 1969, the annual average land price soared 80.8%. In Nov. 1967, the “Special Legislation for Real Estate Speculation Control” was enacted, followed by the implementation of Development Restriction Zone system in Jan. 1971, both of which contributed to stabilizing the land market.

During the 70’s, more aggressive policies were

Part 5

Land Research

implemented to crack down on real estate speculation;

The Emergency Rule No.3 in Jan. 1974 which introduced heavy taxation on luxury property, corporate-owned idle land and land for non-business purposes, and the Comprehensive Measures on Real Estate Speculation Control and Land Prices imposed on Aug 8, 1978. In addition, through the amendment of the “Act on the Utilization and Management of the National Territory”, the basic concept of national territory was declared and Act of Restitution of Development Gains was implemented. Meanwhile, the need for large-scale land development projects was heightened to boost employment and the overall economy, leading to the implementation of the “Housing Site Development Promotion Act” in Dec, 1980.

Amid the Three-Lows and the economic boom of the mid ’80s, and the third wave of the land boom and the social atmosphere after the democratization movement, came growing calls for the “public concept for land ownership”, real name financial system, and measures to control excessive land investment of large conglomerates, in order to restrict land speculation. In

response, the government rolled out land price cap, Land Excess-profits Tax Act, and development charges.

Also, in 1989, Publicly Notified Land Price system was introduced and ownership transfer registration system mandated. At the same time, writing false causes of registration, title registration under a third party’s name, unregistered monopoly were banned by the Special Law on Real Estate Registration, which also stipulated the mandatory real estate registration. Thanks to the strong speculation control measures in the late 1980s and the 2 Million Housing Construction Plan, the land market stabilized.

In the 1990s, after the Uruguay round and the Financial Crisis, land policies changed their focus to ease the regulations and enhance market transparency. For

deregulation, real estate taxes were lowered and the land market was opened to foreigners. Asset Backed Security (ABS) was adopted in September 1998, Mortgage Backed Security (MBS) in January 1999, Real Estate Investment Trusts in April 2000, along with other new systems. A comprehensive land data network was established to promote market transparency, and the Real Name Property Ownership system was implemented in July 1995, following the enactment of the Registration of Real Property by Real Owners Name Act in March the same year.

As the country entered the low-growth era in the aftermath of the 2008 global financial crisis, deregulation and an increase in urban land supply were more emphasized. There were growing calls

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well as development impact fees, forest management, planning for farming and fishing villages, in response to the changing policy environment. The Institute will further contribute to designing effective policies based on its proactive research efforts into policy issues, such as shrinking demand for massive development due to depopulation, polarization and public benefit in the land market, technological change, social demand for consumer protection, and expansion of inter-Korean exchanges.

Ⅱ

. Construction industry research

In 1958, the construction industry was overhauled as the government legislated and promulgated the Construction Business Act to establish an institutional framework for system maintenance, protection and cultivation of construction companies. The Construction Business Act introduced a license system and subcontract limits in an attempt to prevent the mushrooming of contractors. As a result, 1,328 contractors became the first license holders under the Construction Business Act, on May 20, 1959, laying the foundation for the industry. Later, the first round of 5-Year Economic Development Plan was implemented and the industry grew to be one of the two main pillars of the national economy.

In the ’70s, the new policy trend was to strengthen for an improvement in the land use regulation and

residential land supply system, as well as reasonable mediation between development profits and losses, and conflict management for national projects. Also, it became more important to devise policies that are more inclusive of remote areas and increase the quality of life for people in agricultural and fishing villages. With Real Estate Service Industry Promotion Act, which has been in effect in 2018, other real estate policies are in place to improve the real estate system, to keep the market order, and to foster new industries.

KRIHS has been actively supporting government policy efforts based on its research on overall land-related policies — regarding land development, use and regulations. Especially, when the government announced the comprehensive real estate measures in 1988, a research committee for the public concept of land ownership was established, with the president of KRIHS appointed as the chairman, to study how to expand the implementation of the concept. The committee worked to adopt three laws related to the public concept of land ownership, as well as other various research projects that became a solid basis for national land policies. Up until today, the Institute has been carrying out research activities on a wide range of topics related to real estate, including real estate taxation, service industry, and consumer protection, as

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