Suwon City Imposes 11.1 Billion Won in Development Burden Charges Through Proactive Administration

[Suwon Ilbo=Reporter Jung Jun-seong] Suwon Special City announced it conducted a comprehensive survey of various development projects and imposed 11.1 billion won in development burden charges on 15 subject projects.

The city conducted a comprehensive survey of development burden charge subject projects in Suwon from January to December last year. When imposing development burden charges on housing construction projects, the city sought authoritative interpretation from the Ministry of Land, Infrastructure and Transport regarding ambiguous matters such as recognition of development costs, and received advice from Suwon City's legal counsel, demonstrating proactive administration and imposing 11.1 billion won in development burden charges.

Additionally, the city auctioned real estate seized from corporations in default on development burden charges and guided and encouraged corporations undertaking development projects to prepay development burden charges, collecting 2 billion won of the imposed development burden charges.

The development burden charge system recovers development gains generated from land and distributes them appropriately. It is a system that prevents land speculation and promotes efficient use of land.

The scale of development projects subject to development burden charges in the city is 'land area of 990 square meters or more in urban areas for permit and completion purposes.' Development projects such as construction with land use category change and development permission grants impose 25% of development gains on project operators, while large-scale development projects such as residential land development and housing construction projects impose 20% of development gains.

Development gains are calculated by subtracting the land price at the time of charge commencement (land price before development project), development costs, and normal land price appreciation over the project period from the land price at the time of charge termination (land price of completed development project land).

Projects subject to development burden charges must submit a development cost calculation statement to Suwon City within 40 days from the permit and completion date. Failure to do so results in a fine of up to 2 million won.

Development burden charges are imposed through the following procedures: △review of various permits and completion documents △notice of charge subject projects △verification of development cost calculation statements △examination and decision on termination-time land prices by the Real Estate Price Announcement Committee △advance notice of charges △issuance of charge notice.

A city official stated, "From the permit process for development projects, we have established organic interagency cooperation by consulting with related departments on development burden charge subjects and conducted a comprehensive survey of charge subjects," and added, "Going forward, we will continue proactive administration to ensure that development burden charge subjects are not overlooked and charges are levied in a timely manner, thereby contributing to securing tax revenue."