The real estate development business system is the one introduced in accordance with the 「Law on the Management and Promotion of the Real Estate Development Business」enacted in May 17, 1997 by government to manage the real estate developer in a sy...
The real estate development business system is the one introduced in accordance with the 「Law on the Management and Promotion of the Real Estate Development Business」enacted in May 17, 1997 by government to manage the real estate developer in a systematical way and promote it as one independent industry. But contrary to the original intention, the Korean real estate development business still tends to be subordinate to construction business or housing business and has small capital and manpower in reality. And many people still have no accurate knowledge of the real estate development business though many years have passed since its introduction. And even those engaged in the business world experience many confusion without accurate understanding of the range of business.
Therefore, this study attempted to make an actual analysis of the realities of the operation of the system and present the scheme for its improvement and development through the consciousness survey of those engaged in the real estate development business, assuming that there would be a great difference between the concept of the real estate development business stipulated in the law and existing developers of it.
The results of this study showed that the operating form of the real estate development business is that business firms operating the existing construction business or housing business have the real estate development business as their side job. On the other hand, existing developers do not enter the orthodox circle of real estate development business due to the lack of requirements for registration and the like, resulting in no revitalization of the registration of the real estate development business. And it is lacking in independence as financing for PF is done by payment guarantee of the construction company or under the initiative of financial institutions. It was found that it would be urgent to improve the system as there was a great difference between the concept of the real estate development business and the consciousness of developers about the scope of the business.
In addition, specialized real estate development manpower is largely composed of construction engineers. And as the subjects of prior education about specialized manpower became permanent, there was a limit in training specialized manpower who should be responsible for diverse courses such as location selection, project planning, risk management and the like. And there are many problems such as the poor performance of the compulsory indication and advertisement system of the real estate development business.
Based on these findings, this study presented the following schemes for systematic development of the real estate development business and its improvement in a diverse way:
First, it is necessary to specialize and enlarge the real estate development business as an independent business. Now, it should become a prime mover for creating tourism or the wealth of the country beyond the dimension of simple development. The real estate developer should not be a concept of purchasing land and mass-producing buildings on it but have the general development system for handling all processes from the development plan to construction management, asset management, lease operation and the like. Second, it is necessary to introduce readjust the scope of the real estate development business and introduce the registration system by type. And it is necessary to make clear the scope of business by specifying the point in time of opening and closing the development project in the current definition of the real estate development business. And there is a need for dividing the category of business into the specialized development business, the small firm, and the general development business, the large one, according to the business size or the type of execution.
Third, it is necessary to improve the requirements for qualification of specialized real estate development manpower in a reasonable way. For this purpose, it is necessary to abolish those relating to the educational level or business background and reinforce the working experience in the competent field. And it is necessary to extend the field of financing into development financing and general financing, add the judicial scriveners and the certified tax attorney to the scope of qualification for specialized manpower and introduce a separate certified licensing system in a long-term period.
Fourth, it is necessary to reinforce the pre-service manpower education system. And it is necessary to obligate them to retrain regularly in relation to the frequency of training limited to one round of education at the time of the first registration. And it is necessary to enhance the quantity and quality of education by opening practical subjects such as land purchase, location selection, risk management and the like with education relating to the system about the license, tax, law and the like.
Finally, it is necessary to improve the criterion for indication and advertisement of the real estate development business. And it is necessary to prevent real estate developers from feeling confused by specifying the size or method of indication and advertisement and the like in a specific way and secure the effectiveness of the compulsory indication and advertisement system through active enlightenment or crackdown.