This research seeks to examine and suggest alternatives in redeeming the profit earned from the development of land.
The modernization since the early 1960s and the national yearning for economic development have been achieved through the growth of the 70s. As During the next stage, society is shifting into a welfare society. The rapid economic development policies until now have fast quickly brought about industrialization and urbanization, but the policies have also brought a fast change in the structure of society.
The increase in the value of land without any effort from the land owner must be returned back to society. The unearned increment from the development profit, whether identified with a narrow or wide concept, is part of a private unearned income for the land owner. The redemption of development profit is carried out in accordance with current laws regarding land, but it is being carried out on a partial basis which is raising problems of inequity between land owners.
On a general basis, the mechanisms for redeeming development profit in Korea collect on these profits in two different methods: by imposing payments or reductions on profit that have been accrued through visible development activities, or by imposing a transfer income tax on profit that have has been earned through invisible development activities. Development profit earned from the lease of national or public land are still collected minimally, as there are extremely few public lands across the country while those that belong to the public domain are mostly forests and fields. Urban land, which can control the land market, are even scarcer.
Redeeming development profit is indeed an indispensable act. However, the institutional mechanisms that support the redemption work are still very inadequate, while the people’s understanding of profit redemption is also at a low level. Before anything, a consensus on the need for redeeming development profit will have to be built. At the same time, land-related laws must be revised so they can consider land as potential resources, and detailed laws on the redemption of development profit must be planned out.
Taking this into consideration, the research suggests on framing the concept of development profit and imposing land value increment tax as instruments for redeeming the incremental value on land. Although the scope of this study is limited on to examining the alternatives of benefit redemption, continuous efforts will have to be exerted on developing specific action plans for each alternatives and evaluating their feasibility.
- 개발이익의 사회적환수에 관한 연구(Study on the social redemption of development profit)
- 이재우; 김상용; 류해웅; 노상욱
개발이익의 사회적환수에 관한 연구(Study on the social redemption of development profit)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|