| Title |
Research on the Need for a Dedicated Permitting Support Agency Based on Private-Sector Perceptions of Permitting Delays in Real Estate Development |
| DOI |
https://doi.org/10.5659/JAIK.2026.42.6.217 |
| Keywords |
Real Estate Development; Permitting Delay; Dedicated Permitting Support Agency; Perception Survey |
| Abstract |
Administrative delays in permitting processes increase schedule uncertainty and financing costs, thereby undermining the viability of real estate
development projects. This study examined the status of permitting delays and related losses through a survey of 324 private-sector
participants and explored policy responses to mitigate such delays, including the role and functions of a Dedicated Permitting Support Agency
(DPSA). The results showed that 89.2 percent of respondents experienced difficulties during the permitting process, while 79.9 percent
reported losses caused by permitting delays within the past three years. The most common delay period was from six months to less than
one year beyond the original schedule (40.2 percent). In terms of financial impact, 47.0 percent of respondents reported additional costs
ranging from KRW 1 billion to less than KRW 5 billion, while 37.0 percent reported losses exceeding KRW 5 billion. These findings
indicate that permitting delays impose a substantial burden on project sustainability. To further examine the relationship between delay causes
and loss experiences, this study employed a multiple ordered logit model. The analysis revealed that conflicting opinions and limited
communication among relevant departments were significantly associated with both longer delay periods (OR = 1.761) and greater financial
losses (OR = 1.714). Overlapping or inconsistent laws and regulations (OR = 1.777), as well as delays in impact assessment procedures (OR
= 1.733), were also significantly associated with greater financial losses. Taken together, these findings suggest that permitting delays are
related not only to procedural complexity but also to administrative coordination problems and uncertainty in regulatory interpretation.
Accordingly, policy responses should go beyond procedural simplification and include consultation and coordination, interpretive support, and
support for proactive administration. In this context, a DPSA may be considered as one possible institutional response. |