Under the Development Project Law, public contribution is a system that enables the installation of infrastructure which is necessary for the urban citizens. Due to financial reasons, administrative agencies cannot solely install public facilities tha...
Under the Development Project Law, public contribution is a system that enables the installation of infrastructure which is necessary for the urban citizens. Due to financial reasons, administrative agencies cannot solely install public facilities that require enormous capital. Public contribution allows for this by providing a portion of the development benefits to the public in the form of facilities, land, or monetary contributions. However, due to the absence of comprehensive legal regulations governing this system for a long time, it has not been regulated in detail. Therefore, it is necessary to comprehensively organize the public contribution system and examine the public role of public contribution from a legal perspective.
The concept of public contribution has been used in practice for a long time, but a definitive and comprehensive understanding of its meaning has not been established yet. Therefore, the concept of public contribution in present day is used as a broad academic term that encompasses various similar systems such as contributed acceptance, and provision of infrastructure. However, public contribution should be understood as a system aimed at the public interest, whereby a portion of the development benefits generated through specific administrative actions should be returned to the public.
The public contribution system initially began as a form of relaxation of floor space index when additional safety requirements of buildings were filled according to the Building Act. However, it has gradually evolved into a means to create efficient and smooth urban functions from an urban planning perspective. Public contributions to supply necessary public facilities in cities have diversified into various forms to meet the demand for various infrastructure facilities.
In the context of Development Project Law, the legal nature of public contribution was typically associated with decisions made by administrative agencies. However, in present day, there is an increasing emphasis on protecting the property rights of implementers. As a result, it has become more common for administrative agencies and implementers to conclude public-law contracts through negotiations regarding public contributions.
Public facilities etc. such as public facilities, infrastructure, and monetary contributions can be the subject of public contributions provided by implementers to the public. However, infrastructure cannot be the subject of public contributions because it requires plans supervised by public entities and administrative agencies that serve as the installation and management authorities. Therefore, it is not desirable for infrastructure to be regulated as the subject of public contributions in the same way as public facilities.
Implementers can provide a certain level of public contribution in accordance with public contribution system and receive building permits or floor space index relaxation. In particular, floor space index relaxation must be carried out with the sole purpose of promoting the public interest, as it can provide significant economic benefits to landowners. Through public contributions, project implementers may receive floor space index relaxation within designated zoning areas or even undergo changes in zoning to obtain significant floor space index relaxation. Such public contributions should be carried out in accordance with their original purpose of activating private participation for the installation of public facilities necessary for the welfare of citizens. If administrative agencies utilize the public contribution system by imposing it on implementers for administrative convenience or by neglecting the public interest and granting favors, the legitimacy of the public contribution system will be compromised.