Enter ix

Part 1: Public Contributions to Real Estate Development Projects
I.
Public contribution in the narrow sense 4
1.1.
Pre-negotiation system: Negotiation and coordination of planned benefits 5
1.2.
Donation Acceptance: Public Transfer of Infrastructure or Public Facilities 28
1.3.
Gratuitous transfer: transfer of ownership of maintenance infrastructure, etc. 36
1.4.
Characteristics of Consultative Public Contribution 42

II.
Legal burden of quasi-public contribution nature 44
2.1.
Burden: Recovery of social costs resulting from development 45
2.2.
Taxation: Indirect public returns through taxes 60
2.3.
Characteristics of Quasi-Public Contribution Burden 95

III.
Contribution from a socio-economic perspective 99
3.1.
Externalities of Development Projects 99
3.2.
Economic contribution of actual development projects 106
Comprehensive Understanding and Institutional Implications109

Public contributions appearing in the field in Part 2
IV.
Public Contribution Experiences of Business Owners 114
4.1.
Public contribution burden in actual development projects 114
4.2.
Public Contributions as Seen by Business Owners 137

V.
Public Contributions: A Continuing Challenge 147
5.1.
Challenges within the system 147
5.2.
Challenges Outside the System: Post-Completion Public Contributions 162

Conclusion: Finding a Balance Between Development and the Public 170
Another Contribution by Developer 173
Reference 177
Appendix 181

Preface

Cities have always been evolving.
When a building is built, the streetscape changes, and when a development project is carried out, the lives of the people living in the area change.
However, the word development is always accompanied by questions and conflicts.
For whom is this development? What does the public gain, and what does the private sector bear? How can we strike that balance? I wanted to find answers to these questions.

Until now, public contributions have been understood only as objects of ‘obligation’ and ‘recovery.’
It was seen as a burden that the private sector had to bear, and as a right that the public sector had to naturally reclaim.
But we wanted to go beyond that simple structure and look at public contribution a little more broadly and deeply.
By examining the voices of developers working in the field and the public perspective designing the system, we sought to find a way for the public and private sectors to recognize each other as "partners."

This book views public contributions not as a simple regulatory tool, but as a collaborative mechanism for developing and sustaining cities and societies.
As I examined the complexly intertwined systems and listened to voices from the field, I became convinced that what we need now is a shift in perspective on development projects and the design of better systems.

I hope this book will provide readers with new perspectives and food for thought.
If this book serves as a small cornerstone in our collective contemplation of the city's future, leading to further dialogue and discussion, that alone will be meaningful.

Moon Joo-hyun, Honorary Chairman of the Korea Real Estate Development Institute
Kim Seung-bae, President of the Korea Real Estate Development Institute