Various public enterprises including Korea Land Corporation, Korea National Housing Corporation and Korea Water Resources Corporation have gained exorbitant profits from land development for housing. However, there is no in-depth discussion if the profits are made good use through a due process.

Results from an analysis of profits usage of Korea Land Corporation, a representative public enterprise for land development, shows that the profits have not been used based on a principle. It also shows that overcharged tax from central and local governments is one of the reasons for price rising of land for housing. These problems have been caused since there has been no system for efficient use of public enterprises’ profits from land development for housing as the profits have been simply regarded as operating profits of a enterprise. Therefore, the National Assembly should make efforts to establish a system and regulations for deliberation on public enterprises’ profits usage from land development in terms of taxation because a public redemption of profits from land development is based on a right of taxation.