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At an online inauguration ceremony on the afternoon of the 29th, Minister Byeon Chang-heum said, “We should focus our policy capabilities on preparing concrete action plans to relieve the anxiety in the housing market early and achieve stable housing for the common people.” “Supplying enough affordable and quality housing in the city center. We will prepare and announce specific plans to do so before the Lunar New Year holidays next year.”
First of all, it is highly likely that Minister Byeon will come up with a specific plan for’urban high-density development’, focusing on station areas, semi-industrial areas, and low-rise residential areas to expand supply. Earlier, as a candidate, Minister Byeon said, “I think there is a need to provide more sufficient housing to relieve market anxiety caused by the expansion of the number of households and investment demand.” “We believe that there is a need for less dense urban areas such as station areas, low-rise residential areas, and semi-industrial areas. “We will consider ways to dramatically improve the supply of housing in the city center such as high-density development.”
Regarding the development of the station area, a plan to increase the floor area ratio so that the range of the station area can be further expanded and the buildings can be built higher is a strong point. At a personnel hearing, Minister Byeon proposed that the range of the station area could be expanded from 350m to 500m in radius and the floor area ratio could be increased from 160% to 300% on average.
In the case of semi-industrial areas, the public participatory circular maintenance project, which has been promoted since the days when Minister Byeon served with the Korea Land and Housing Corporation (LH), is expected to take off in earnest. Circulation maintenance is a project to develop anchor facilities first, relocating factories in the region, and then developing the periphery. Public institutions such as LH participate in the implementation to speed up the project and distribute development profits. Previously, in the 5·6 supply plan, the government decided to lower the mandatory ratio of securing industrial sites when developing semi-industrial areas from 50% to 40%. The housing area ratio in semi-industrial areas in Seoul is up to 300%.
In the case of low-rise residential areas such as old villa villages, plans to promote small-scale reconstruction or actively introduce maintenance projects to urban regeneration are discussed together. Minister Byun is known to envision that the housing supply can be expanded by making small blocks and mini-rebuilding depending on circumstances rather than designating a large district and developing it all at once. However, instead of applying unprecedented incentives, such as an increase in floor area ratio, to the development of these low-density areas, Minister Byeon made the premise that the public, such as LH, should participate in the implementation, supply rental housing, and secure publicity such as donations.
President Moon Jae-in also expressed his expectations for Minister Byeon on this day. After the ceremony for the appointment ceremony, President Moon spoke to Minister Byun at a meeting with him, saying, “From supply for home ownership to rental housing for the common people, youth, newlyweds, etc., as well as high-quality middle class rental housing, the policy content “Please do your best to stabilize prices by explaining them well.”
Meanwhile, Minister Byeon again apologized for his past remarks that struck public opinion at the inauguration ceremony that day. Minister Byeon bowed his head, “I take this opportunity to take this opportunity to apologize once again as I take the reprimands of the people with heavy heart for hurting the hearts of the people due to my unthinking remarks in the past.”