Strengthening of Standards for Transaction of Real Estate in Chung-cheong Province

Starting from April 17, the standards for permitting the transaction of real estate are expected to be strengthened in the area of Chung-cheong province, where a new administrative capital is to be built.

The government on April 6 deliberated on and passed the “Enforcement Ordinance of Special Measures for Constructing a New Administrative Capital” in a Cabinet council.

The ordinance stipulates that on the level of preventing the speculation of real estate, the transaction of real estate exceeding 200m² (60.6 pyong) requires permission in no-city areas of Chung-cheong province, which the Committee of Constructing New Administrative Capital under the direct control of the President will designate.

Presently, in no-city areas within the generally permitted transaction areas, permission is required only for the transaction of real estate exceeding 500m² (1000m² farmland, 2000m² woodland).

According to the enforcement ordinance, if the construction area for the new administrative capital is decided within this year, the utilization of the real estate will be drastically restricted for a decade until a megalopolis administration plan is established. During this period, only the minimum utilization of real estate such as facilities for agriculture, forestry, and fishery, and public facilities for the town will be permitted, and any development plans causing urbanization, like building apartments and motels, would be prohibited.

Jung-Hun Kim jnghn@donga.com