In 1980''s, as nation''s economy began to grow rapidly with the population being concentrated more and more in cities, housing site development projects also began to increase to meet the increasing demands for houses. So far, the projects have conduc...
In 1980''s, as nation''s economy began to grow rapidly with the population being concentrated more and more in cities, housing site development projects also began to increase to meet the increasing demands for houses. So far, the projects have conduced much to relief of housing shortages in both terms of quantity and quality. However, due to the sporadic housing site developments, our cities would suffer from shortage of the basic facilities required for efficient urban functions and thus, the issue of how the basic facilities could be financed and who would be responsible for such a cost began to emerge.Regarding the basic facility cost, the problem of ''equilibrium'' has continued to be raised, because the central or local administrations have transferred to developers the cost for such basic facilities as roads, tap water and sewage systems, railroads, etc., in the pretext of the principle of ''beneficiaries should be responsible for such a cost'' despite the enormous tax revenues from the housing site developments.It was found that the basic facility cost had accounted for 26.41% of the site cost or the majority (55.24%) of the total site development cost. And such a ratio was higher in the capital areas (31.57%) than in other local areas (14.60%). As a result of analyzing the basic facility cost for 146 housing site development projects implemented from 1981 through 2006, it was found that the roads accounted for the highest ratio of the basic facilities, followed by railways/subways and sewage systems in their order, and that such ratios differed among regions. However, as a consequence of the multiple regression analysis of the factors affecting the site cost, it was disclosed that as opposed to the expectations, such basic facilities as waste treatment, sewage and tap water had affected the site cost much because their demands differed widely depending on the needs of the local autonomous administrations. In contrast, as a result of analyzing the relationships between site cost and land price or consumer price index, it was found that the land and consumer price indices had not affected the burden of basic facility cost much.On the other hand, the researcher addressed the problems arising from the burden of basic facility cost. All in all, the central and local administrations had imposed excessive burden of basic facility cost and other various financial burdens on developers, which had pushed up the site cost.Hence, it is deemed necessary to arrange some mechanism which can check central or local administration''s abuse of their authority to impose the basic facility cost on developers. And it is deemed desirable to relieve developers of their burden for the basic facilities in consideration of the public interests and future tax revenues. In addition, it is also necessary to ensure a fair sharing of the basic facility cost through a preliminary agreement system, while saving the site cost by prescribing the basic facilities at proper scales.