Paegtae City Secures 1.59 Billion Won in Development Gain Charges

[Suwon Ilbo=Reporter Seo Dong-young] Paegtae City announced on the 8th that it has collected 1.59 billion won in development gain charges on land where property values increased due to various development projects including the Paegtae Jinwi 2 General Industrial Complex in 2020.

Development gain charges refer to the collection of a certain portion of the land value increase resulting from development gains that arise from rising property values due to various development projects. The system was introduced to prevent speculation aimed at development gains, encourage efficient land utilization, and contribute to sound development of the national economy.

Development gains refer to the remainder after excluding the land value before the development project, development costs, and normal land value increases during the project period from the price of the land upon completion of the development project.

Development gain charge projects subject to imposition are development projects of 990㎡ or more in urban areas and 1,650㎡ or more in non-urban areas based on approved land area. Typically, 25 percent of development gains are charged to project implementers.

The assessment procedure consists of the following steps: ▲collection of various approval and completion documents ▲notification of projects subject to assessment ▲investigation of development cost calculation statements ▲review of land values at the time the Real Estate Price Public Notification Committee is concluded ▲notification of planned assessment ▲notification of assessment.

Additionally, projects subject to development gain charges must submit a development cost calculation statement to the city within 40 days from the approval and completion date. Failure to do so results in an administrative fine of up to 2 million won.