• Journal of Distribution Science
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• v.21 no.2
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• pp.111-118
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• 2023

After the outbreak of the COVID-19 in the early 2020, Korea has attempted to reinforce the existing rent controls to help the low-income households. From July 2000, the tenants' right of lease renewal came into effect, as a policy tool to enforce the upper bound percentage of rent increases within Korea. Purpose: This study aims to examine the impact of rent control on the uncontrolled rents in Seoul Metropolitan Area (SMA). Research design, data and methodology: The study regresses the monthly panel data from 58 municipalities in SMA from January 2020 to March 2022, during the COVID-19 pandemic. Results: The data indicates that the policy had the effect of lowering rents for a period of two months, and subsequently monetary policy including quantitative easing and low interest rates, coupled with asset market bubbles lead to rent increases. During the sample data period, the quantity of money supply increased by 12.6% and CPI rose by 3.0%, these phenomena collectively increased the rents by up to 14.7%. Conclusions: The results of the present study support the findings of earlier studies in part: namely, that rent control without the government's steps to stabilize the property price may have an undesirable effect on rental tenants.

• Land and Housing Review
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• v.10 no.4
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• pp.13-30
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• 2019

Parking lot within housing site contains public interest of relieving parking space shortage problem and subject to public restriction. If auctioned off at higher price by excessive competition in general competitive bid for land bidders, the development of parking lot will be made against its original purpose supply. The core issue is that a bid price is quite often to be blown out of proportion by 150%~ 250% due to extreme competition and, could face serious problem if a winning bidder runs sale business. If it is rental business, although about 30% of the total floor space of the whole building to be used as neighborhood facilities, too high winning bid price cause to lose transparency. In case of sale at aggregate buildings, most business operators would sell 30% of the neighborhood facilities, spare the parking lot and manages thereof separately. According to Aggregate Buildings Act, neighborhood facilities are allowed for individual registration and ownership of parking lot by business operator or designated person by business operator. In this case, the parking lot becomes 70% of the total floor space of the whole building and 70% of the land share which makes the mortgage very valuable and easier for business operator to get financial loan. There used to be many cases such as owners of neighborhood facilities (aggregate buildings partial owners) who run parking lot to repay their loan running parking lot to repay loan, but found that very tough and reached auction and relatively disadvantaged. For parking lot within housing site, it is recommend to exclude the public factors that land has and take into account of public restriction in area (housing site). Business opportunity for operators and protection of property rights for buyers in aggregate buildings, land supply method is recommended to replace from highest bid method into draw or private contract. In terms of price, supply at estimated price (construction price) and restriction on usage (Co-ownership of parking lot) proposals are submitted.

• Journal of the Korean housing association
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• v.18 no.6
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• pp.45-55
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• 2007

The study is based on a two-year research study titled 'A study on the Development of the Programs for Housing Policy to support Multi-family Housing Remodeling in Korea'. The primary purpose of this two-year study was to recommend governmental program initiatives for supporting multi-family housing remodeling activities in Korea. As a part of this research study, this article was written based on the results from the two surveys regarding multi-family housing remodeling in the United States and Korea, and a focus group with housing researchers affiliated to the Joint Center for Housing Studies. Major research findings are presented as follows: First, there have been various types of supportive programs for single- and multi-family housing remodeling in the United States. Those have focused on lower income families than middle income families. Compared with the programs in the United States, the apartment remodeling in Korea has been focusing on small population of the multi-family housing owners. Apartment remodeling in Korea needs supportive programs for rental housing remodeling and the housing remodeling for low-incomes. Second, there have been various types of remodeling activities made in multi-family housing properties in the United States. Size of remodeling project also varied. Their remodeling activities were based on the long-term repairing plans initiated by professional apartment management groups. For making our multi-family housing properties more sustainable, we also need to have the long-term repairing plans. Third, the apartment property remodeling has been regarded as a substitute of reconstruction of apartment properties. However, remodeling should be regarded as one of the most efficient ways to extend the life-cycle of apartment buildings. Thus, benefits and executive plans of apartment remodeling should be studied by a professional research center under our governmental responsibilities as done in the United States.

• The Korean Journal of Air & Space Law and Policy
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• v.33 no.1
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• pp.227-260
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• 2018

Recently, as the use of drones increases, the risk of drone accidents and third-party property damage is also increasing. In Korea, due to the recent increase in drone use, accidents have been frequently reported in the media. The number of reports from citizens, and military and police calls regarding illegal or inappropriate drone use has also been increasing. Drone operators may be responsible for paying damages to third parties due to drone accidents, and are liable for paying settlements due to illegal video recording. Therefore, it is necessary to study the idea of providing drone insurance, which can mitigate the liability and risk caused by drone accidents. In the US, comprehensive housing insurance covers damages caused by recreational drones around the property. In the UK, when a drone accident occurs, the drone owner or operator bears strict liability. Also, in the UK, drone insurance joining obligation depends on the weight of the drones and their intended use. In Germany, in the event of personal or material damage, drone owner bears strict liability as long as their drone is registered as an aircraft. Germany also requires by law that all drone owners carry liability insurance. In Korea, insurance is required only for "ultra-light aircraft use businesses, airplane rental companies and leisure sports businesses," where the aircraft is "paid for according to the demand of others." Therefore, it can be difficult to file claims for third party damages caused by unmanned aerial vehicles in personal use. Foreign insurance companies are selling drone insurance that covers a variety of damages that can occur during drone accidents. Some insurance companies in Korea also have developed and sell drone insurance. However, the premiums are very high. In addition, drone insurance that addresses specific problems related to drone accidents is also lacking. In order for drone insurance to be viable, it is first necessary to reduce the insurance premiums or rates. In order to trim the excess cost of drone insurance premiums, drone flight data should be accessible to the insurance company, possibly provided by the drone pilot project. Finally, in order to facilitate claims by third parties, it is necessary to study how to establish specific policy language that addresses drone weight, location, and flight frequency.

• Land and Housing Review
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• v.12 no.2
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• pp.33-45
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• 2021

Due to recent changes in government policy, officetels have received attention as alternative assets, along with the uplift of office and apartment prices in Seoul. However, the current officetel price indexes use small-size samples and, thus, there is a critique on their accuracy. They rely on valuation prices which lag the market trend and do not properly reflect the volatile nature of the property market, resulting in 'smoothing'. Therefore, the purpose of this paper is to create the officetel price index using transaction data. The data, provided by the Ministry of Land, Infrastructure and Transport from 2005 to 2020, includes sales prices and rental prices - Jeonsei and monthly rent (and their combinations). This study employed a repeat sales model for sales, jeonsei, and monthly rent indexes. It also contributes to improving conversion rates (between deposit and monthly rent) as a supplementary indicator. The main findings are as follows. First, the officetel price index and jeonsei index reached 132.5P and 163.9P, respectively, in Q4 2020 (1Q 2011=100.0P). However, the rent index was approximately below 100.0. Sales prices and jeonsei continued to rise due to high demand while monthly rent was largely unchanged due to vacancy risk. Second, the increase in the officetel sales price was lower than other housing types such as apartments and villas. Third, the employed approach has seen a potential to produce more reliable officetel price indexes reflecting high volatility compared to those indexes produced by other institutions, contributing to resolving 'smoothing'. As seen in the application in Seoul, this approach can enhance accuracy and, therefore, better assist market players to understand the market trend, which is much valuable under great uncertainties such as COVID-19 environments.