Local Governments Should Expropriate Lands for Corporate Cities

Regarding corporate cities promoted by the government and the business world, the Minister of Construction and Transportation Kang Dong-seok said on September 17, “It is much more realistic for local governments to expropriate lands for corporations.”

Minister Kang explained at a breakfast CEO meeting held by the International Management Institute attached to the Federation of the Korean Industries (FKI), “Corporate cities are very welcomed by local governments and local personalities, and are promoted by agreements between corporations and the local government.”

“If a corporation buys more than 50 percent of the land through a negotiation, the local government can utilize the right of expropriation by force for giving the remaining 50 percent to the corporation,” added Kang. “Giving 100 percent land expropriation rights will not be effective and will face strong resistance from residents.”

Regarding the remark, Corporate City Task Force Team General Manager Yoo Jae-joon of the FKI said, “It is very difficult for corporations to negotiate and buy land from residents after the development plans are announced, and that can cause projects to be delayed infinitely,” adding, “It is more desirable that the local governments as public organizations act for the corporation in expropriating the land.”

Minister Kang said regarding the development interest from the corporate cities, “If we distribute the vast amount of development interest to corporations, the real meaning of corporate cities can be damaged,” and added, “We will make corporations invest a sufficient amount of the development benefits in infrastructure for local development.”

The Ministry of Construction and Transportation will hold a public hearing on September 22 for the legislation of the special law regarding “corporate city” construction and collect opinions from corporations and local governments. The ministry will officially hand in the bill at the next regular National Assembly Session.

Corporate city is the city developed by a private company, which develops housing, schools, hospitals, and others as well as mainly industrial facilities for self-sufficiency of the city. The government sets three types of corporate cities: industrial trade type, knowledge basis type, and tourism and leisure type. They are being planned to be developed in non-metropolitan areas and non-Chungcheong provinces.

Kwang-Hyun Kim kkh@donga.com