The environments of our real estate development business changed in the aftermath of 1997 financial crisis. Among them there are two which are conspicuous: the independence of developer of housing construction business and the registration of real est...
The environments of our real estate development business changed in the aftermath of 1997 financial crisis. Among them there are two which are conspicuous: the independence of developer of housing construction business and the registration of real estate development business.
By far, while the developer in the housing construction business should complete registration designated for them, the developer of the non-dwelling buildings such as one room flat and shopping store was not asked any managemental system.
Therefore, the act on the management and promotion of real estate development business was established and took effect on 18, 11, 2007.
In this study, in an effort to find improvements, the problems with the conditions of registration for the practitioner of housing construction and the developer of real estate development business are examined, of which former are designated in the housing act and latter are designated in the act on the management and promotion of real estate development business.
Like advanced countries, real estate development business should be supported by systems, in order to grow as specialized one and to be a total business including construction, finance, etc. Thus, in this study the obstructions on the road to the end were examined.
The elements adopted to the examination were: the size of capital, skillful human resource, business permission, the site of business, and project financing.
The registration conditions and the descriptions for worker employment were compared with practices which were applied on the spot, and compared with the cases of registrations already permitted, to find any irrational things.
And a list of the policies and operations draw from the cases of foreign businesses under operation in other countries such as Japan and American was made, which could be used as a reference.
In conclusion, the findings indicated that:
First of all, the developer should carry out the development appropriate for their ability, and should make every effort to increase their capability and technology.
Second, the descriptions for worker employment should be consistent with the type and size of the project.
Third, in the process of business permission, the practitioners who had not yet the right of land possession, should be provided with extraordinary permission by which their right of the project could be reduced to a certain point when they secure the right of land possession.
Forth, in case of public housing sites, small-size developer also should be provided with the right to participate in the bid. The differentiation based on the ability to carry out project could encourage small-size developer to participate in the bid to be provided with land on which they could put their foundation.
Fifth, in the project financing, the cash current should flow through project initiator, construction company, and financial company, and share the risk of the project.
Finally, it is recommended that the acts related to real estate development business should be converged into a mother act, and the specifications in each project should be controlled by the clauses in the mother act.