Reasons for Proposal
It has been 30 years since Phase 1 New Towns such as Bundang, Ilsan, Pyeongchon, Sanbon, and Jungdong were developed, and housing in those areas is aging and there is a growing call to improve the residential environment. Interest is increasing nationwide in not only New Towns but urban generation.
In particular, New Towns have traffic problems, a lack of educational facilities, and other subsequent issues due to an inaccurate prediction made at the time they were built. In the name of tackling soaring housing prices, the government announced that it will build Phase 3 New Towns with good access to Seoul, which deepens concerns among residents in Phase 1 and 2 New Towns.
While the government proposed establishing wide-area transportation in response to a backlash among such residents, it fails to present a specific plan or funding method. A realistic program is urgently needed to breathe new life into the residents who are deeply concerned about their local economic downturn.
This Act aims to solve the issue of Older New Towns in connection with smart urban regeneration and promote balanced development across different areas and residents’ quality of life by ensuring that such cities become self-reliant.
Details
A. Obligate the State and local governments to mutually cooperate to establish Older New Towns into Smart Cities and impose responsibility on the authorities to ensure its stable execution by formulating fundraising plans and striving to ensure that the necessary funds are reflected (Article 5)
B. Allow the Minister of Land, Infrastructure and Transport to designate Older New Town Regeneration District Promotion Zones in consultation with the heads of the relevant central administrative agencies to attract businesses to Older New Towns and expand their infrastructure, deem a comprehensive plan for smart cities under Article 4 of the Act on the Promotion of Smart City Development and Industry to be established once designated as a Promotion Zone, and create an Older New Town Regeneration Project Special Committee under the Minister of Land, Infrastructure and Transport (Articles 6 and 7)
C. Require the Minister of Land, Infrastructure and Transport to establish the Older New Town Regeneration Project Master Plan (“Master Plan”) to effectively implement the Older New Town Regeneration Project and hold a hearing to gather feedback from residents and related experts when the Master Plan is established or changed (Articles 8 and 10)
D. Prescribe that Mayors/Do Governors shall designate implementers for the Older New Town Regeneration Project, and that the implementers shall prepare an action plan, which shall include a land use plan, regeneration infrastructure installation plan, etc. (Articles 12 and 13)
E. Require the project implementer to give priority to those tenants set forth in Presidential Decree, who do not own a house and have lived until additional sale, if there are any public houses available for additional sale after building deregulation (Article 18).
F. For any Promotion Zone designated or changed according to the action plan of the Older New Town Regeneration Project, establish action such as wide-area transportation facilities and exempt such a zone from a preliminary feasibility survey (Article 19)
G. Ease safety diagnosis for Older New Towns and allow such regulation to be applied differently as prescribed by Presidential Decree (Article 20)
H. Ease the building coverage ratio and floor area ratio for Older New Towns and allow it to be applied differently as prescribed by Presidential Decree (Article 21)
I. Allow the State and local governments to offer whole or partial subsidies or loans to cover the costs of formulating master plans and action plans, renovating/repairing or restoring buildings, etc. (Article 22)
J. Provide exemption benefits including tax, charge, etc. to the implementer and occupant enterprises to boost the local economy (Articles 24 and 25)
K. Allow the Minister of Land, Infrastructure and Transport to prioritize support for the Housing and Urban Fund under the Housing and Urban Fund Act when required to establish a foundation that helps migrants to settle better, require the project implementer to remodel public housing to improve the function of old buildings, and mandate the State to provide a fund required to do so (Article 26)
