`Faster Reconstruction, Redevelopment Needed for Jobs`

President Lee Myung-bak said yesterday that given the large influence of construction on the economy, the sector should speed up job creation via reconstruction and redevelopment projects.

Presidential spokesman Lee Dong-kwan quoted Lee as saying, “Criticism says the government is announcing plans to develop new cities despite the significant role of construction in creating jobs,” at his first Cabinet meeting held at the Gwacheon Government Complex.

Since he served as Seoul mayor, Lee has put priority on reconstruction and redevelopment over building new cities. In January 2006 when he opposed the government’s plan to establish a new city near Seoul`s Songpa district, saying, “If a new city is built in Songpa, even the middle class living north of the Han River will move southward.”

On Lee’s comments, the presidential secretariat for economic affairs said, "President Lee Myung-bak made this announcement to urge deregulation on reconstruction as announced Aug. 21 to increase the housing supply and create more jobs.”

The government’s deregulation effort on reconstruction include allowing builders to pursue reconstruction or redevelopment projects to finish them within 18 months instead of three years; abolishing the requirement of selling apartments for general consumers after finishing reconstruction; and allowing buildings with less than 18 floors to go through reconstruction and redevelopment projects.

At yesterday`s meeting, President Lee said, “We cannot overcome mounting difficulties with ordinary job creation measures. We need emergency plans. We must come up with more effective policies.”

“The government should release effective measures such as promoting private investment and advancing the timing of state construction works. It also needs to think about how to guarantee the budget needed.”

mhpark@donga.com