This research seeks to examine and identify the institutional and technical mechanisms of building a suitable framework for a program of development profit redemption in Korea.
The incremental benefit when value is added to the fundamental characteristic of land is, in society, expressed as an estimate called profit. The additional value accrued at this time is recognized as expected profit for those who own the land, which in turn becomes unearned income for the land owner. This mechanism however, is very contradictory to the nature of the distribution of income. And it is in this context that the increase of unearned income from activities such as joint ventures, urban-planning decisions or announcements of changes are seen as a growing social problem, and discussions are taking place in order to devise a balanced development policy and a fair distribution scheme of income.
Looking from a legal perspective, recognizing development profit earned without the land owner’s exerting of any effort can lead to the rationalization of unjust profit. From an economic point of view, the profit is unearned in its characteristic, which justifies the appropriateness of society’s collecting these profits back.
First, redeeming development profit is valid in the sense that it is seen as unjust profit (or unjust enrichment) from a legal framework. Thus, there is a perspective of unjust profit, requiring equity to be achieved by prohibiting beneficiaries from obtaining unjust profit. Current civil law, in general, does not see the nature of development profit as unjust. But since personal possession of development profit through an external public economic facility is unreasonable, the unjust nature of development profit will have to be recognized in order to amend its contradiction.
Second, development benefits must be collected as unearned income even when looking from an economic perspective. The land owner’s income from what the landowner produces from his land is earned in its nature. However, the additional, special income derived from development profits by virtue of the location of the land in a development path creates development profits that makes it only reasonable for him to be imposed a special tax on the land’s value derived from development activities. All these theories make it only rational to collect development profit taxes, but current conditions of the relevant policies are still inadequately being carried out.
In this context, this research conducts an examination of the current condition of Korea’s mechanisms on redeeming development profit. For this, the study adjusts the inequity of wealth rising from land ownership by carrying out development profit redemption, organizes the existing theories on development profit redemption, and compares redemption mechanisms of other countries.
- 개발이익환수의 제도적 기술적 장치와 영향에 관한 연구(Study on the institutional and technical mechanisms and impacts of development profit redemption)
- 박우서; 류해웅; 이상태; 이계섭; 강순명
개발이익환수의 제도적 기술적 장치와 영향에 관한 연구(Study on the institutional and technical mechanisms and impacts of development profit redemption)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Territorial Development < National Land Development|