Five Year Land Trade Restriction for New Satellite Cities

The areas around Kimpo and Paju (524.99㎢ or 105.881 million pyongs) including Goyang and Inchon have recently been designated new development areas for satellite cities and beginning on May 20, they will be considered commercial land for the next five years, making it difficult to buy and sell lots in those areas.

These areas will also be restricted from construction or development to prevent possible real estate businesses from sprouting up. The Ministry of Construction and Transportation announced on May 9 that it would implement related measures in stages to prevent real estate speculation in the two areas.

Areas allowed for land trade will amount to 524.99㎢ in the four cities. Out of the total area, some 499.92㎢ (or 105,123 million pyeong) for `Green Belts` and non-city land were already restricted for trade in 2001 and 2002, and only 25.07㎢ (7,580,000 pyeong) have been added this time around.

The designated period of trade will be for the next five years from May 20 to May 19 of the year 2008.

According to new laws, city areas in the region will require permission from authorities when selling or buying more than 180㎡ of residential land, 200㎡ of commercial and `Green Belts`, 660㎡ of industrial complexes and 180㎡ of other purpose-land while non-city areas will require permission when trading over 1000㎡ of agricultural land, 2000㎡ of forest land and 500㎡ of other purpose-land.

The Ministry of Construction and Transportation decided to limit any construction or development activities in those areas for the next three years to prevent any out of control development.

The Ministry, along with the National Tax Service and related local self-governance bodies, will also establish a `look-out system` for real estate trends in the area.

The Ministry has decided to designate some areas as residential areas by October after having discussions with residents and related ministries and institutions.

Development plans will be released by the end of next year with detailed implementation plans due out by 2005. Apartments will be distributed for potential residents around 2006 in the new satellite cities of Paju and Kimpo.

Jae-Seong Hwang jsonhng@donga.com