Lee Jae-myung "Establish Development Profit Residents Refund Fund...Allocate for Public Interest"

[Suwon Ilbo=Reporter Park No-hun] Gyeonggi Governor Lee Jae-myung announced the establishment of a 'Development Profit Residents Refund Fund.'

Governor Lee announced through social media on the 16th, "We have complemented the shortcomings of development profit reinvestment that could only be used in specific areas," and stated "We will accumulate development profits generated from public development by the Gyeonggi Housing and Urban Development Corporation and prioritize use for basic housing supply and development support for underdeveloped areas, while expanding the scope of use in the future according to scale."

Recalling the time of Daejangjiggu development in Seongnam City, Governor Lee explained the background of the fund establishment, saying "How to properly recover public interest is just as important as how to distribute it—this is a matter that requires utmost care and attention."

Noting that there are prerequisite tasks for smooth operation, Governor Lee stated "Through cooperation with the National Assembly and the central government, we must amend the 'Development Profit Recovery Act,' 'Public Housing Special Act,' 'Housing Site Development Promotion Act,' and others, and customized recovery standards according to the type of development project are also necessary."

The following is the full text of Governor Lee Jae-myung's social media post.

<Establishing Development Profit Residents Refund Fund...What Belongs to All Returns to All>
During the development of Daejangjiggu in Seongnam City, we recovered over 500 billion won in public interests, yet accounting showed 3 billion won in profits. Had we not implemented the 'development profit recovery system,' the 800 billion won in land value appreciation before and after urban development permits would have gone entirely to private companies or construction firms. The recovered profits were used for rental housing sites, infrastructure development, and park creation, ultimately returning to the people's benefit.
The rise in real estate value is not the result of anyone's special effort or labor, but rather unearned income generated primarily through the exercise of public authority such as licensing rights, urban development plans, and public investment. The achievements created together by all should not be monopolized by a few. They must rightfully return to everyone.
Recovering public interest fairly is just as important as carefully considering how to distribute it—this is a matter requiring utmost dedication.
Gyeonggi Province will address the shortcomings of development profit reinvestment that could only be used in specific areas by establishing a 'Development Profit Residents Refund Fund.' We will accumulate development profits generated from public development by the Gyeonggi Housing and Urban Development Corporation and prioritize use for basic housing supply and development support for underdeveloped areas, with plans to expand the scope of use in the future according to scale.
Through fund formation, we can not only establish a systematic mechanism to return development profits to residents, but also enable continuous policy implementation through stable annual revenues. Development profit benefits will not concentrate in specific areas but can be used where they are most needed at the provincial level, thereby addressing regional disparities while maintaining fairness.
Smooth operation of the Development Profit Residents Refund Fund requires addressing numerous prerequisite tasks. Through cooperation with the National Assembly and the central government, we must amend the 'Development Profit Recovery Act,' 'Public Housing Special Act,' 'Housing Site Development Promotion Act,' and others, and customized recovery standards according to the type of development project are also necessary.
As we establish a new virtuous cycle ensuring 'what belongs to all returns to all,' we request the active cooperation of the National Assembly and the central government. Gyeonggi Province will continue to do our best with a strong sense of responsibility.