In Korea, a variety of urban development projects have been underway with more houses constructed and supplied. Among such large-scale housing construction projects, government's policies to supply more houses for middle and low income people have bee...
In Korea, a variety of urban development projects have been underway with more houses constructed and supplied. Among such large-scale housing construction projects, government's policies to supply more houses for middle and low income people have been implemented in diverse ways. Despite such efforts on the side of the government, the society has been prejudiced against the rental housing complexes, indeed, while government's support to them has been poor. So far, the rental housing complexes have exposed various problems in terms of systems and supplies. In addition, the reality that local autonomous administrations have supplied the rental houses not as independent complexes but as parts of the regional development projects has acted to disrupt low-income people's efforts to have their shelters. The spreading effects on the local economy have differed between rental housing complexes and ordinary ones, much more on promotion of the housing construction economy and housing supplies. Accordingly, it is deemed necessary to analyze the spreading effects of the rental housing complexes as parts of large-scale urban development projects in comparison with those of the ordinary housing complexes, and thereby, explore the ways to activate the rental housing construction and supplies.
The purpose of this study was to analyze the spreading effects of the rental housing complexes on the local economy in comparison with those of the ordinary houses. The results of this study can be summarized as follows;
First of all, as a result of reviewing the preceding studies about the rental houses, it was found that most of them had focused on the ways to activate the rental housing system and supplies, addressing their problems and suggesting their solutions. In order to analyze the spreading effects of the rental houses on the regional economy, the researcher sampled the rental housing complex in Songsan district of Uijeongbu city among the rental housing complexes developed already and thereby, examined the local economic conditions of the city and the developmental plan of the sample complex and then, analyzed the local economic indicatives. In order to analyze the spreading effects on the local economy, the researcher used an export-based model to set a framework of analysis by seperating the economic spreading effects from the spreading effects on the local finance.
In more details, the economic spreading effect I was equated with the shrinking effect on the local economy due to transfer of some productive activities to other regions, while the economic spreading effect II was equal to the effects on increase of the purchasing power and enlargement of the local economic scale. And the economic spreading effect III meant increased local economic scale due to introduction of new production functions. The spreading effect IV or the spreading effect on the local finance involved increased local tax revenues such as acquisition tax and registration tax. The results of examining the conditions of the rental housing complex by setting a framework of analysis for the local economy can be summarized as follows;
Considering the economic spreading effects of a large-scale rental housing development project and its spreading effects on the local fiance, it is required of the local autonomous administrations to arrange some incentive systems to enhance local competitiveness and productivity so that the rental housing development project can lead to the local economic growth. In addition, since Korea Housing Corporation has accounted for 92% of the rental housing supplies, it is necessary for the private sector to activate construction of the rental houses. In other words, it is necessary to research into and develop the ways to activate the rental housing complexes whose economic spreading effects are lower than the ordinary apartment housing complexes and arrange a mechanism to put into practice such measures. In order to maximize the effects of financial revenue increases, the local autonomous administrations should explore the preferential urban management policies and local projects on which the local resources can be concentrated and thereby, increase their financial revenues. On the other hand, the central government is obliged to compensate for loss of the local administrations due to development of the rental housing complexes and give some political incentives to them. Lastly, considering that the green belt areas or non-urban areas have accounted for 98% of the rental housing sites, it is deemed necessary to develop the rental housing sites in the urban areas to activate the local economy and increase the rental houses for the ordinary people.