For publicly-initiated projects, the project area must fall under an LR site in the city plan. There is no requirement for agreement from affected landowners/leaseholder, although the project program is open to public review (Sorenson 2000 and Archer 1984). The following are steps common for all projects:

- Project area and boundaries are defined;

- Legal body established to become the primary agent of project;

- Draft plan created, delineating public areas to be developed;

- Consent of landowners requested;

- Project implementation plan established, including financial plan and replotting design;

- Construction of new infrastructure; and

- Project completion, financial reconciliation, and return of readjusted parcels to participating landowners.

In addition to the shared methodology between Japan and Korea, Korea has a provision to set aside proceeds from LR for low-income housing. In 1980, the government mandated that 30 percent of the funding for low-income housing would come from LR (Schnidman 1988: 5).

The Korean model is different in that it received little financial support and therefore it had to be mostly self-financing projects. LR was used mostly for financing installation of infrastructure and more importantly for housing land supply. In Japan on the other hand, most of the financing came from government subsidies and the public works fund and therefore LR was mostly used for provision of public facilities rather than residential land (Lee 2002). Landowners contributed 30 percent of their land for public facilities and 20 percent to cover project start-up costs<sup>18</sup> ; in Japan these percentages were 20 and 10. The land that was used to cover start-up costs, also called cost-equivalent land, was then sold by the implementing agency at market rates (Schnidman, 1988). Both in the Korean and Japan case, the remaining land is returned to landowners, if possible at a similar location and similar characteristics but according to the new master plan.

Taiwan, China’s methodology is similar to Japan and Korea’s, but because LR came later and was a result of government efforts at urbanization it is seen as less participatory than are similar LR projects in Japan and Korea. As with Japan and Korea, both local governments and landowners can initiate the LR process. However, only 50 percent of landowners (by number and area) must agree to participate, compared to two-thirds in Japan and Korea. In Taiwan, China, the first step of a land readjustment project was the appraisal of the property by the Urban Land Value Appraisal Committee, according to a large number of factors spelled out in the law. This appraisal was used as the basis for determining landowners’ contribution to the project (i.e. land value redistribution).<sup>19</sup> Table 4 below highlights some of the challenges that the governments of Japan, Korea, and Taiwan, China faced as they implemented LR for land assembly and infrastructure expansion. Highlighting these challenges will inform governments thinking about implementation of LR in their local context and alert them about possible issues that may arise throughout the process. Many of these implementation problems are not insurmountable, but rather challenges that can be addressed on the way. Most importantly, they are in most cases not exclusive to LR

> 18 ADB (2010) 19 Schnidman (1988)

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