Development Charge on Large-Scale Buildings in the Capital Region

2.19

Development Charge on Large-Scale Buildings in the Capital Region

과밀부담금의 활용방안연구(RR95-29)

Sang-Woo Park and Hyeok-Jin Kwon

1995. 12․114 pages․Korean

Since 1960s, various government policies have focused on decentralizing the economic activities of the Capital Region. However, Seoul's population in the 1990s has exceeded 10 million and other concentration indices for the Capital Region have shown a steadily growing trend.

Despite the government's decentralization policies, concentration of the economic activities in the Capital Region has been ever increasing. Urban planners and regional scientists in Korea believe that the disorderly development of Seoul and the Capital Region is largely due to the ineffective Capital Region government policies. It is also believed that the ineffectiveness of the decentralization policies mainly stems from the unrealistic goals and tools of the policy.

For this reason, since 1994, the government policy measures for decentralizing the economic activities in the Capital Region have been changed from direct and administrative to the indirect and economic means. Development charge system, instead of the administrative regulation, is adopted to control the large scale buildings in Seoul. For the large scale commercial and office buildings, 10% of the total construction cost is imposed as development charge.

The purpose of this study is to forecast the future revenue of development charge and to suggest the effective revenue assignment.

1) Forecasted revenue

(unit : hundred million won)

1994 (May∼Dec.)

1995 1996 1998 2000

LEVY Maximum ^{776 883 813 813 813}

Minimum ^{776 883 1,339 1,339 1,339}

COLLECTION Maximum ^{4 65 238 772 813}

Minimum ^{4 65 250 990 1,339}

2) Desirable allotment of the revenue;

(1) Assistance for manufacturing firm and public office relocations (2) Purchasing the relocated facility land for public use

(3) Provision of infrastructure for Seoul and the Capital Region (4) Compensation for the residents in the Nature Conservation Zone (5) Support for the policy-related government research activities