W25 Trillion Spent on Compensation for Land Last Year
By Jane Han
Staff Reporter
Last year, approximately 25 trillion won from state coffers was used for land compensation to undertake housing development, road-building and other construction-related projects, the Ministry of Construction and Transportation said Tuesday.
Adding in the most recently released figure, President Roh Moo-hyun, during his administration, spent about 98 trillion won on construction compensation, about 2.6 times that of the Kim Dae-jung period.
Some skeptics blame Roh's generous compensation budget as the reason for skyrocketing home prices, but others say that his decisions were inevitable in supplying enough home lots to meet demand.
The Ministry of Construction and Transportation data shows that the compensation amount surged after 2005, which coincides with the time when Roh promoted a series of housing development projects in the metropolitan area to relieve the housing shortage.
Observers point out that a significant chunk of the money spent by the state went to repurchasing land from owners, which ultimately led to driving up housing and land prices.
During Roh's five years, a total of 200.6 square meters of home lots were provided, up 64 percent from his predecessor Kim's government.