5. Seoul’s Land Readjustment with Gangnam Development
<Land Readjustment Module 5>
Some concluding remarks. We overviewed the basic concept of land readjustment and its application in the context of Seoul. So, land readjustment is something where we build together and benefit together. It means that it’s a great tool for all the communities to participate in the development and as a result the communities share the benefit fairly between every individual.
The advantage of land readjustment is that it provides the opportunity for planned development of the land and its infrastructure. And another big advantage of land readjustment is that land readjustment, if properly managed, it doesn’t require the big burden on the public finance.
One of the side effects is that land readjustment helps to clear the land ownership and tenure, and also develops accurate land registration system. So it clarifies who owns what, or which piece of land and it becomes the base for the public finance system. And also, if properly managed, it could provide increased equity in land distribution.
And I want to point out some concerns related to land readjustment. One of the big concern is the price increase. Land readjustment tool is basically based upon the development merit, or development potential. This means that the real estate prices increase as a result.
The potential of real estate price increase means that there is a high possibility of speculation. So we need some measures to control the rising price and the Korean government actually took some counter-measures to stabilize the price of real estate. Despite such concerns, there are lots of benefits and advantages especially for the urbanizing world because we have to prepare and supply urban land for the increasing population and business activities and land readjustment is a good tool to do this on a limited budget.
So this week, we talked about land readjustment, which is the major tool to supply used in supplying urban land for Seoul. I hope you enjoyed this week’s lecture on land readjustment and I hope you have some implications from Seoul’s experience.