The purpose of this report is to assess the problems with land use regulation and to propose directions of regulatory reform in Korea. To this end, some theoretic analysis and experiences in England and in Korea are introduced. The problems of market ...
The purpose of this report is to assess the problems with land use regulation and to propose directions of regulatory reform in Korea. To this end, some theoretic analysis and experiences in England and in Korea are introduced. The problems of market failure addressed by land use regulation are endemic to land markets as a result of the particular characteristics of land because every parcel of land has a fixed location. As a result, there are important and particular forms of externalities and other potential forms of market failure. Therefore, land use regulation allocates a scarce land resource but without any regard for prices and or any market information. What needs to be recognized is that while land use regulation is about other things as well, it is fundamentally an economic activity. The suggestions in this report is to minimize land use regulation, to introduce a planning system for regional development instead of regulatory zoning, to decentralize regulatory power and to establish some institutions in order to protect property rights.