Value capture from development gains towards public utility

During the Republic of Korea’s transition from a poor undeveloped nation towards an industrialised economy, different value capture policies have been applied in different phases of development. This chapter focuses on the evolution of developer obligations. It is discussed how DOs are embedded in the land policies of South Korea (after this referred to as Korea), and how they progressed from an indirect, non-negotiable value capture instrument in the early stages of development into a direct and, to a certain degree, negotiable instrument in the recent experiments with the pre-negotiation policy. Three phases are discussed to illustrate these changes. First, the initial urbanisation and industrial development, carried out predominantly with land readjustment (1966–1984); second, the consolidated development, in Seoul predominantly carried out on previously developed land with the joint (hapdong) redevelopment policy (1983–1998); and third, the matured development whereby the essay focuses on an experiment with the pre-negotiation system, which applies to the development of large, outdated industrial or infrastructural sites in Seoul (2009-today).