The national/public assets are categorized into administrative, preservative and miscellaneous assets, and among them, only the miscellaneous assets can be sold, rented or consigned to people or companies. In the redevelopment projects, roads account for most of the assets in terms of value or area. And the roads account for 23% of the entire national/public miscellaneous assets. So, if they should be managed and operated ineffectively, not only the national asset values would fall down but also the national treasures would be lost extremely.
In view of conditions and uses of the national/public assets, miscellaneous assets account for 37% of the national lands and 18% of the public lands. And the national/public miscellaneous assets account for 80% in terms of project areas and 22% in terms of project cost. Hence, it is vital to manage the national/public land effectively not to waste the national/public assets.
In this regard, the national/public assets should be operated in a professional and systematic way. To this end, their management and operation need to be reformed systematically to be more professional.
With such basic conceptions in mind, this study aims to review whether the roads or the national/public lands within the redevelopment zones are appraised properly to be well compensated.
Roads and waterways should be appraised to be valued within a third of the price of the nearby land in consideration of the standard uses of the nearby land, as specified by Article 26 of 'Act on Acquisition and Compensation of Land for Public Projects.’ And any developmental profit should be excluded in the appraisal.
Upon analyzing the appraisals of the roads at Dangsan-dong and Ssangmun-dong, it was found that the prices for compensation was around 70% of the value appraised. Such practices differ more or less from the regulations for compensation of the roads. Anyway, the prices of the roads were increased due to other adjustments of the appraisal, as admitted by City Ordinances of Seoul City Council. It is deemed necessary to integrate and rearrange the ordinances different among metropolitan cities and provinces, but the problem is the difference of the prices between the new regenerated infrastructure or the miscellaneous assets and the assets excluded from the infrastructures disposed for the regeneration projects.
Since such bones of issue were deemed involving sales of the national/public land inclusive the development profits or the bone of issue for integration of the compensation regulations and the appraisal for compensation, the researcher conducted an expert group interview to discuss the methods of the appraisal excluding the developmental profits and the need for clear acceptance of the possessory right.
Since the roads are possessed by others, the appraised prices differ. In order to solve such problem, it is necessary to change the criteria for judgement and appraisal of the roads. The bone of issue must involve th free consignment of the roads and the appraisal thereof, so others than enumerated by the regulations are not regeneration infrastructures. Thus, the parts beyond the regeneration infrastructures in view of actual conditions should not be subject to free consignment.
In order to compensate for the differences of the prices between newly regenerated infrastructures and those disposed, the correct appraisal is required, because the regeneration infrastructures disposed tend to be extremely under-appraised.
The law specifies that the roads should be appraised as housing sites. In order to ensure propriety of such appraisal, it is necessary to arrange some guidelines for designation of the appraisers in case of the projects of a certain scale (about 30 billion won or more) and therewith, designate the appraiser meeting the guidelines. In addition, it is also necessary to arrange the guidelines for appraisal of the compensation in law and regulations, while constructing a price appraisal information DB for integrated management of the information in a longer term.
The above suggestions may not be appropriate to the current law, and therefore, it is hoped that this study will be followed up by future studies which will research into the national/public road appraisal in more depth.