A land compensation is a system designed to efficiently manage the compensation money. When land of a private owner is expropriated as a public development project, compensation for the land is generally paid in cash. However, the main point of this system is that landowners can be compensated with land instead of cash if they wish. This was introduced by partially amending the Act on Acquisition and Compensation for Land for Public Works in September 2007. So the loss guarantee funds are efficiently managed and landowners are able to share the development benefits. In the past, the profits from land development did not go to the original owner, but were often seen by outsiders who bought the land during development.
Successfully developed Korea’s first land compensation system
Specialized in large land development projects for 15 years
GD Holdings succeeded in the development project through the land compensation system for the first time in Korea. Also a lawyer, CEO Lee Jong-hoon has participated in the large land development project in Wirye New Town when the large land compensation system was established in 2007. He is one of the first experts to build knowledge and knowhow in this field. Lee was in the legal management of the project and founded GD Holdings with the people he worked with. Starting with Wirye New Town in 2008, GD Holdings has been specializing in development projects through land compensation for nearly 15 years, centered on housing sites in the metropolitan area such as Gwacheon, Suseo, and Bokjeong. GD Holdings is not only having a long history, but is also achieving the best performance in the field. Lee says “Development projects are accompanied by legal and business problems. The land compensation was started in 2007 but has not yet been comprehensively implemented in Korea. Only in 2018, the government announced the 3rd new city and said that it would activate compensation, but the system and laws are still insufficient.“
Development projects require a variety of expertise and know-how in the fields of law, accounting, taxation, and finance for a long period of time, from business planning, securing land, licensing, start of construction, sale, completion, and business settlement. GD Holdings has professional manpower in various fields for this purpose. GD Holdings has close business cooperation with domestic first-tier financial companies such as Samsung Securities, Meritz Securities, and IBK Investment & Securities, and with domestic first-tier construction companies such as Daewoo E&C.
Highest performance in large land development business
Amount raised 730 billion won, total business sales about 4.9 trillion won
Starting with Wirye New Town, GD Holdings has the largest number of land development records in Korea, mainly in the metropolitan area, from Segok, Gwacheon, Suseo, Goyang, Geumto, Galmae, and Hanam. The company achieved total business sales of about KRW 4.9 trillion with 730 billion won in union recruitment and 700 union members. (Wirye New Town Wirye 1st Ipark 83.3 billion won, Segok Gangnam Prugio City 10.8 billion won, Gwacheon Knowledge Information Town Prugio Bellarte 74.2 billion won, Hillstate Gwacheon Descent 76.7 billion won).
MOU with Owners and Residents Solidarity for Public Housing Development
Efforts to provide legal support and protect the rights and interests of indigenous peoples
GD Holdings has signed a MOU with Owners and Residents Solidarity for Public Housing Development. The solidarity is an organization established for landowners and residents who are unfairly forcibly expropriated during new city development and do not receive sufficient compensation. An official of the solidarity says “GD Holdings is the oldest and most leading company in the field. We have signed into a partnership to obtain the cooperation of an experienced expert group.” The solidarity insists on the abolition and reduction of capital gains tax on the forced expropriation of land, and is preparing to hold a forum in the National Assembly on November 22. An official says “After the LH land speculation, we put restrictions on speculation, but in the end, it was our indigenous people who felt the burden. In the future, we will work with GD Holdings to provide legal support and protect the rights and interests of indigenous people.”