For Participants in International Conference on National Urban Policy, UN HABITAT, Dec. 17, 2015 Urbanization & New Town Development : The Role of LH Presented by Jungik Kim Ph.D in Regional Planning Korea Land & Housing Corporation 1
ABOUT LH
Launching of LH in 2009 Organization KNHC: Construction, Supply and Management of Housing Established in July, 1962 Head Office - 8 Divisions, 38 Offices - Land & Housing Institute 12 Regional & Project Divisions 6100 employees 3200 engineers KLC: Development of Residential Land, New Towns and Industrial Complexes Established in April, 1975
LH Standing Financial Status As of 2014 Credit Ratings Asset : US$ 143 billion Liability : US$ 114.9 billion Equity : US$ 28.1 billion Sales : US$ 17.7 billion Cost : US$ 16.4 billion AA- AA- Aa3 Net Profit : US$ 0.7 billion As of Sept. 2015
Ownership structure of LH Historical paid-in capital (KRW tn, as of 2013 YE) MOSF MoLIT 56% 31% 13 % n Authorized Capital: KRW 30.0 trillion n Paid-in Capital: KRW 23.9 trillion Government support highlights ü As of 2013 YE ü The Ministry of Strategy and Finance (MOSF) ü The Ministry of Land, Infrastructure and Transport (MoLIT) ü Korea Finance Corporation (KoFC) n n n n n Financial and regulatory support from the Government Committed to maintain direct and indirect ownership of LH Gov t can guarantee bond issuances Gov t converted the borrowing of NHF into Subordinated debt More than all, the Government protects LH s loss from the designated projects such as Haengbok housing(happy Housing), Industrial Complexes, Sejong and Innvation Cities projects, and Rental Housing Operation
Public Management disclose to public Survey for customer satisfaction by 3 rd party The President of Korea The National Assembly of Korea Enact the Korea Land and Housing Corporation Act BAI MOSF MoLIT Budget Review, Business Audit Management Operation & Budget Control PIMC Management Performance Evaluation Supervise Overall Business Operation Annual Inspection, Investigation Appointing the CEO Appointing Nonstanding Directors LH CEO Board of Directors Comptroller ü The Board of Audit and Inspection of Korea (BAI) Independent Accounting review ü ü The Ministry of Strategy and Finance (MOSF) The Public Institutions Management Committee (PIMC) The Ministry of Land, Infrastructure and Transport (MoLIT) n n The budget of LH is reported to the MOSF, the MoLIT, and the BAI The actual performance of LH is also reported to the National Assembly of Korea, the MOSF, the MoLIT, and the BAI ü All Government-controlled entities are subject to the Act on the Management of Public Agencies
LH as Urban Creator (1) Refer to Multifuctional Administrative City Project (2) Refers to development of downtown for revitalizing urban environment and supplying rental housing
LAND: Residential Sites and New Towns 615 km 2 152 thousand acres
LAND: Industrial Complexes and FEZ 300 km 2 74 thousand acres
Housing 2.5 million units
SOC Contribution
KOREAN EXPERIENCE on URBANIZATION
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http://cafe.naver.com/podary/28469 14
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LH PROJECTS - New Towns, Industrial Complexes, Special Projects, Urban Regeneration, etc. 17
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12380 4800 3800 1260 1030 1360 19
Apartment Price Trend : 1 st New Town (Index) Nationwide Bundang Ilsan Jungdong Pyeongchon Sanbon 150 120 90 60 30 0 1986 1990 1995 2000 2005 2010 2015 (Year) March 2013 = 100 20
Apartment Price Trend : 2st New Town (Index) Nationwide Gimpo Han River Incheon Geomdan Hwaseong Dongtan Pyeongtaek Godeok Suwon Gwanggyo Wirye Yangju Okjeong Paju Gyoha Seongnam Pangyo 150 120 90 60 30 0 1986 1990 1995 2000 2005 2010 2015 (Year) March 2013 = 100 21
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New Towns Development : 1 st Stage 24
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New Towns Development : 2 nd Stage 27
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Industrial Complex Development 29
FEZ & Research Park Development 30
Special Projects 31
Special Projects 32
Urban Regeneration 33
Housing Construction 34
LEGAL FRAMEWORK & DEVELOPMENT PROCESS 35
Korean Constitution Article 23 Clause 1 Article 23 Clause 3 Article 37 Clause 2 The right of property of all citizens shall be guaranteed. Expropriation of private property from public necessity and compensation there for shall be governed by Act. Provided, that in such a case, just compensation shall be paid. The freedoms and rights of citizens may be restricted by law only when necessary for national security, the maintenance of law and order or for public welfare. Even when such restriction is imposed, no essential aspect of the freedom or right shall be violated. Act on the acquisition of and compensation for land, etc. for public works 36
Legal Framework Basic acts on planning & management national land Framework act on the national land National land planning and utilization act Acts for specific projects Urban development act Housing site development promotion act Rental housing act Industrial site development act Special act on establish of Sejong city Special act on the promotion of urban renewal Acts for land compensation Act on acquisition of & compensation for land, etc. for public works 37
Development process Selection of site Land acquisition Detail plan Construction Sales Completion of project Selection of site 14 months Land acquisition 20 months Detail Plan Construction 12 months Construction (House, Office, Commercial) 40 months Sales 24 months Completion 6 years 6 months 38
Selection of site Pre-investigation, Pre-F/S Determination of boundary Suggestion of site designation Establishment of development plan Public notice & listening to opinion Environment & Transportation Central urban planning committee Negotiation with related organization Housing policy deliberation committee Designation of site Approval for development plan 39
Land acquisition Preparation for project Expropriation (project approval, adjudication) No Survey of land & goods on the site Objection Appraisal Adjudication on objection Yes No Public notification on compensation plan No Estimation on compensation Yes Administrative litigation Request contract for compensation Negotiation & contracting Yes Payment of compensation 40
Detail plan Establishment of detail plan Survey & Soil exploration, etc. Impact assessment Environment, Transportation, Disaster, Population Register for arpproval of detail plan Negotiation with related organizations Urban planning committee Review & modification of detail plan Approval for detail plan Detail approvals considered as confirmed 41
Construction Establishment of basic & detail design Commencement of work Review of document for commencement of work Planning of management plan (quality, safety, schedule) Management (quality, safety, schedule) Examination for payment Modification of detail plan Examination for completion & completion of work Cadastral confirmation survey Transfer of facility Completion of construction 42
Sales Planning of land supply Application & Receipt Approval of land supply Draw & Tender Decision of land supply Conclusion of a contract for land supply Price appraisal Approval of land use Announcement of land supply Transfer of ownership 43
Completion of project Residents move into new town Approval of change in final development plan Notification of project completion Completion of joint inspection for public facility Completion of project Examination of construction Management & operation (central & local government) Make report of project completion 44
References Sohn, Young-hoon, Trust for Tomorrow, Beyond the Best: Korea Land and Housing Corporation, LH, July-August 2015 Lee, Seungwon, Introduction & Comprehension of Korea New Town Development, LH, June 2015 International Urban Development Cooperation Center, MOLIT & LH, Sept. 2015 Hong, Sungsoo, LH s Experiences in Urban and Housing Development, LH, Sept. 2015 Hwang, Pil-Jae, Urban Regeneration and Fund Supply Plan, LH, June 2015 45