City improvement project has emphasized the aspect of preventing disturbance action for real estate market according to the reckless project promotion and the increase in transparency during the promotion of project along with the improvement in city ...
City improvement project has emphasized the aspect of preventing disturbance action for real estate market according to the reckless project promotion and the increase in transparency during the promotion of project along with the improvement in city function through city improvement. However, it has depended generally upon financial support of construction companies so that improvement project providers and demolition service companies tended to muster citizens and formed the group of main force in its promotion. In addition, there has been always a possibility of unlawful deals among contractors and regarding excessive competition in the process of obtaining the approval of citizens.
In this regard, the government enacted the establishment of the Urban and Residential Environment Improvement Act in 2003 in order to comprehensively reform absurdity and disputes, the improvement system of old and inferior residential complexes such as apartment reconstruction and reconstruction that have been a hotbed of residents' friction and to establish a framework for new improvement in residential complexes. However, there were various unexpected problems (will be discussed later) in the process of executing the establishment of the Urban and Residential Environment Improvement Act so that there were some crucial drawbacks in diverse systematic terms by not reflecting the intent of its enactment sufficiently.
By allowing residents and private construction companies to participate in the projects during the promotion of redevelopment and reconstruction projects due to the limitations of project management capabilities in public organizations and the lack of financial resources, there have been various types of absurdity according to the maximization of development profits by private companies. In addition, there have been social problems such as lack of transparency in the project promotion and procedures, performance of illegal & evasive projects, excessively long-term conduction of projects caused by disputes among residents and the occurrence of various civil appeals.
The scope of capital in improvement project management providers has been very insignificant such as halfbillion Korean Won for corporations and one billion Korean Won for individuals; therefore, it did not reach the general scope of city improvement projects. In this regard, it would be insufficient for improvement project management providers to perform the projects on their own when considering the issue of financial procurement that was supposed to be done by them for the improvement in the transparency of projects. Thus, there have been some concerns with the occurrence of absurdity and disputes caused by various illegalelements, excessive competition for receiving orders among improvement providers and irrational close relationship among union executives, improvement project management providers and contractors. Accordingly, it would be necessary to fully review improvement project management business.
In this regard, this study was aimed to contribute to the facilitation of city improvement projects, by analyzing the obstacles in the promotion of city improvement projects, establishing their alternatives and groping for activation methods for them. Furthermore, it was also aimed to review the improvement plans for the systems that could enhance the transparency of each stage in the promotion of city improvement projects and to lead to the activation of city improvement projects by getting prepared for some methods to introduce real estate trust system (including methods for expanding the scope of duties for the companies of real estate trusts into city improvement projects).