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ACT ON THE MANAGEMENT AND PROMOTION OF REAL ESTATE DEVELOPMENT BUSINESS

Act No. 8480, May 17, 2007

Amended by Act No. 8852, Feb. 29, 2008

Act No. 8974, Mar. 21, 2008

Act No. 9340, Jan. 7, 2009

Act No. 10668, May 19, 2011

Act No. 10719, May 24, 2011

Act No. 11599, Dec. 18, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11794, May 22, 2013

Act No. 13480, Aug. 11, 2015

Act No. 13805, Jan. 19, 2016

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to provide for basic matters concerning real estate development and necessary matters for registration of real estate development business, obligations of real estate development business entities, etc. thereby contributing to the management and promotion of real estate development business and the protection of the property rights of people.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows: <Amended by Act No. 8974, Mar. 21, 2008; Act No. 13480, Aug. 11, 2015>
1. The term "real estate development" means any of the following acts: Provided, That taking charge of construction shall be excluded:
(a) Forming land by means of conducting construction work or changing the form and quality of the land;
(b) Constructing, repairing in a large scale, or remodelling buildings, altering the purpose of use thereof, or installing structures. In such cases, "construction," "repair in a large-scale," and "remodelling" mean "construction," "large-scale repair," and "remodelling" under Article 2 (1) 8 through 10 of the Building Act, and "alteration of the purpose of use" means "alteration of the purpose of use" under Article 19 of the same Act;
2. The term "real estate development business" means business to conduct real estate development for the purpose of providing them to other persons;
3. The term "real estate development business entity" means a person engaging in real estate development business;
4. The term "registered business entity" means a real estate development business entity registered pursuant to Article 4;
5. The term "provision" means selling or leasing to other persons real estate which is, or is scheduled to be, formed, constructed, repaired in a large scale, remodelled, altered in terms of the purpose of its use, or installed by engaging in real estate development business or all or part of the rights determined by Presidential Decree to use such real estate (hereinafter referred to as “real estate, etc.”);
6. The term "consumer" means a person who is provided or intends to be provided with real estate, etc. by a real estate development business entity;
7. The term "labeling and advertising" means labeling or advertising under subparagraphs 1 and 2 of Article 2 of the Act on Fair Labeling and Advertising.
 Article 3 (Relationship to other Acts)
Except as otherwise provided in other Acts, matters concerning real estate development and real estate development business shall be governed by this Act.
CHAPTER II REGISTRATION OF REAL ESTATE DEVELOPMENT BUSINESS
 Article 4 (Registration, etc. of Real Estate Development Business)
(1) Where a person intends to conduct real estate development business above the size determined by Presidential Decree, which means the total floor area of a building (referring to the total floor area under Article 84 of the Building Act) is above 2,000 square meters or 5,000 square meters per annum or the land area is above 3,000 square meters or 10,000 square meters per annum, for the purpose of providing them to other persons, he/she shall register his/her business with the Minister of Land, Infrastructure and Transport: Provided, That the same shall not apply to any of the following persons: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 8974, Mar. 21, 2008; Act No. 11599, Dec. 18, 2012; Act No. 11690, Mar. 23, 2013; Act No. 13480, Aug. 11, 2015; Act No. 13805, Jan. 19, 2016>
1. The State and local governments;
2. The Korea Land and Housing Corporation and other public institutions established under the Act on the Management of Public Institutions, prescribed by Presidential Decree;
3. Local government-established public corporations under the Local Public Enterprises Act (hereinafter referred to as "local public enterprise");
4. Housing construction business entities or housing lot formation business entities registered pursuant to Article 4 of the Housing Act (limited to housing construction business or housing lot formation business);
5. A person prescribed by Presidential Decree as able to conduct real estate development projects under other Acts.
(2) A person who intends to file for registration pursuant to paragraph (1) shall satisfy the following requirements. In such cases, the procedures for registration and other necessary matters shall be prescribed by Presidential Decree: <Amended by Act No. 10668, May 19, 2011>
1. The amount of capital is to exceed the amount prescribed by Presidential Decree, which is above 300 million won (in cases of individuals, 600 million won of the value of appraised assets for working);
2. Facilities prescribed by Presidential Decree and real estate development experts are to be secured.
(3) Notwithstanding paragraph (2), when a person intending to conduct real estate development business establishes a special purpose corporation without full-time executive officers and employees which are determined by Presidential Decree for the sake of real estate development, he/she shall comply with requirements for registration and other necessary matters which are separately determined by Presidential Decree.
(4) Notwithstanding paragraph (1), every landowner may jointly engage in real estate development projects with registered business entities as prescribed by Presidential Decree. In such cases, such landowners and registered business entities shall be deemed joint business entities, and the detailed business affairs, expenses, and allocation of responsibilities among the joint business entities shall be determined by Presidential Decree.
(5) Where any of the following causes arises while a person who fails to file for registration conducts any act referred to in the items of subparagraph 1 of Article 2, he/she may provide real estate, etc. to other persons: <Newly Inserted by Act No. 13480, Aug. 11, 2015>
1. Where a person who conducts any real estate development act dies or goes bankrupt;
2. Where real estate under development is going through court auction procedures;
3. Where he/she provides real estate to his/her lineal ascendant or descendant;
4. Where he/she provides real estate to his/her affiliated company under subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act;
5. Where he/she provides real estate to a corporation the representative of which is a person who conducts a real estate development act;
6. Where he/she is an enterprise or individual under threat of bankruptcy due to excessive debt and files a detailed and objective statement about the cause therefor with an administrative agency in charge of authorization and permission.
(6) Where a person who fails to file for registration falls under paragraph (5) 6, an administration agency in charge of authorization, permission, etc. for any of the acts referred to in the items of subparagraph 1 of Article 2 may consult an attorney-at-law, accountant, etc. within a necessary scope and require the person who filed the statement to submit necessary materials. <Newly Inserted by Act No. 13480, Aug. 11, 2015>
 Article 5 (Scope, Education, etc. of Real Estate Development Experts)
(1) Real estate development experts under Article 4 (2) 2 means any of the following persons who satisfy the qualifications prescribed by Presidential Decree: <Amended by Act No. 10668, May 19, 2011; Act No. 11794, May 22, 2013>
1. An attorney-at-law, certified judicial scrivener, certified public accountant, certified tax accountant, certified public appraiser, real estate broker, and certified architect;
2. A person with a bachelor's degree or above in a real estate-related area who engages in the acquisition, disposition, management, and development of real estate or consulting services;
3. A construction engineer under subparagraph 8 of Article 2 of the Construction Technology Promotion Act;
4. Other persons prescribed by Presidential Decree as recognized to have expertise necessary for real estate development.
(2) Real estate development experts under paragraph (1) shall receive advance education necessary for real estate development. In such cases, educational institutions, curriculums, persons to be exempt from advance education, and other necessary matters shall be prescribed by Presidential Decree.
 Article 6 (Grounds for Disqualification for Registration of Real Estate Development Business)
No person who falls under any of the following subparagraphs may file for registration of real estate development business under Article 4 (1). The same shall also apply to foreigners or corporations established pursuant to foreign statutes, which fall under any of the causes in each of the following subparagraphs or causes similar thereto in the relevant countries: <Amended by Act No. 10668, May 19, 2011; Act No. 13480, Aug. 11, 2015>
1. A minor, a person under adult guardianship, or a person under limited guardianship;
2. A person declared bankrupt and not yet reinstated;
3. A person in whose case three years have not elapsed since his/her imprisonment without labor or greater punishment declared by a court was completely executed (including cases where the execution of the sentence is deemed completed) or exempted;
4. A person who is under suspension of the execution of his/her imprisonment without labor or greater punishment;
5. A person in whose case three years have not passed since the registration of his/her real estate development business was cancelled in accordance with Article 25 (1) or (2) 3 and 4. In such cases, if the person whose registered real estate development business is cancelled is a corporation, the person who committed the act that caused the cancellation of the registration and the representative shall be included;
6. A person who has completed the reporting of business closure under Article 15 (1) subject to the disposition of suspension of business under Article 24 and is under the suspension of business (the period of suspension of business shall be considered to proceed in spite of business closure). In such cases, in cases where the person subject to the disposition of suspension of business is a corporation, the person who committed the act that caused the disposition of suspension of business and the representative shall be included;
7. A corporation, any of whose executive officers (including its representative; hereinafter the same shall apply) falls under any of subparagraphs 1 through 6.
 Article 7 (Delivery of Certificate of Registration, Application for Alteration, etc.)
(1) When the Minister of Land, Infrastructure and Transport grants registration of real estate development business, he/she shall deliver a certificate of registration of real estate development business, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) When matters prescribed by Presidential Decree from among the matters entered in a certificate of registration of real estate development business are changed, any person who is issued with a certificate of registration of real estate development business pursuant to paragraph (1) shall file an application for alteration of entered matters with the Minister of Land, Infrastructure and Transport within 30 days, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) When a certificate of registration of real estate development business issued pursuant to paragraph (1) is lost or damaged, it may be re-delivered, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 8 (Restrictions on Unjust Labeling and Advertising, etc.)
(1) Any person who is not a registered business entity shall neither label or advertise that he/she is the registered business entity under this Act nor put labels/advertisements that are feared to make him/her misunderstood as a registered business entity.
(2) Except as otherwise provided for in other Acts, when a registered business entity puts a label or advertisement concerning real estate development, he/she shall label or advertise the fact that he/she is registered pursuant to this Act and other matters necessary for consumer protection, as prescribed by Presidential Decree.
(3) When necessary to determine whether the labels or advertisements under paragraphs (1) and (2) are against this Act, the Minister of Land, Infrastructure and Transport may request the heads of relevant administrative agencies and other institutions or organizations for necessary investigations or necessary data. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 9 (Prohibition of Double Registration, etc.)
(1) No registered business entity shall obtain double registration of real estate development business;
(2) No executive officer and employee of a registered business entity who are the real estate development experts under Article 4 (2) shall become a real estate development expert of another registered business entity.
 Article 10 (Prohibition of Lending Certificate of Registration, etc.)
(1) Any registered business entity shall neither have another person develop real estate in his/her name or trade name nor transfer or lend his/her certificate of registration of real estate development business to another person.
(2) Any person shall neither engage in real estate development business in another person's name or trade name nor take over or borrow another person's certificate of registration of real estate development business to use it.
 Article 11 (Transfer of Real Estate Development Business, etc.)
(1) When a registered business entity falls under any of the following subparagraphs, he/she shall file a report with the Minister of Land, Infrastructure and Transport thereon as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, transferees, corporations that continue to exist after merger, or corporations established through merger shall satisfy the requirements for registration of real estate development business under Article 4: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Where the registered business entity intends to transfer the real estate development business concerned;
2. Where a corporation which is a registered business entity and a corporation which is not a registered business entity intend to merge with each other (excluding cases where a corporation which is not a registered business entity is merged into a corporation which is a registered business entity).
(2) When a report on transfer or merger under paragraph (1) is filed, the transferee shall succeed the transferor's status as a registered business entity, and the corporation that continues to exist after merger or corporation established through merger shall succeed the status of the corporation that will cease to exist through merger, as a registered business entity.
(3) Any person who succeeds the status as a registered business entity pursuant to paragraph (2) shall succeed the effect of administrative dispositions given to the relevant registered business entity before the transfer or merger of the real estate development business concerned.
(4) The Minister of Land, Infrastructure and Transport may take measures against those who succeed the status as a registered business entity pursuant to paragraph (2), such as corrective measures, request for mediation of conflicts over damage to consumers, suspension of business (including requests for dismissal of and disciplinary action against, executive officers and employees), cancellation of registration of real estate development business, etc. under Articles 22 through 25 by reason of offenses committed by former registered business entities before the transfer or merger of the relevant real estate development business. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) The provisions of paragraphs (1) through (4) shall apply mutatis mutandis to the succession of the real estate development business of registered business entities. In such cases, when a successor falls under any of the grounds for disqualification in each subparagraph of Article 6, he/she shall transfer the relevant real estate development business to another person within three months.
 Article 12 (Announcement of Transfer of Real Estate Development Business)
Any person who intends to transfer real estate development business pursuant to Article 11 (1) 1 shall publicly announce it prior to reporting under paragraph (1) of the same Article, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 13 (Real Estate Development Business Matters to be Transferred)
Any person who intends to transfer real estate development business pursuant to Article 11 (1) 1 shall transfer all of the rights and obligations determined by Presidential Decree, concerning real estate, etc., authorization and permission, construction contracts established with constructors, supply contracts established with consumers, etc. in connection with real estate development business.
 Article 14 (Restrictions on Transfer of Real Estate Development Business)
No registered business entity falling under any of the following subparagraphs shall transfer the real estate development business concerned: Provided, That the same shall not apply to cases where real estate development business must be transferred pursuant to the latter part of Article 11 (5):
1. Where the registered business entity is during the period set for suspension of business pursuant to Article 24;
2. Where the registered business entity is subject to the disposition of cancellation of registration of real estate development business pursuant to Article 25 and is under the suspension of execution of such disposition pursuant to the Administrative Appeals Act or the Administrative Litigation Act.
 Article 15 (Closure of Real Estate Development Business, etc.)
(1) Where a registered business entity intends to close down the real estate development business concerned, he/she shall report such intent to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) When the Minister of Land, Infrastructure and Transport receives a report on business closure under paragraph (1), he/she shall cancel the registration of the real estate development business and publicly announce it. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) The method of, and procedures for, reporting and announcement under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
CHAPTER III MANAGEMENT OF REAL ESTATE DEVELOPMENT BUSINESS
 Article 16 (Sustainable Real Estate Development, Duty of Good Faith, etc.)
(1) Real estate development business entities and executive officers and employees thereof (hereinafter referred to as "real estate development business entities, etc.") shall make efforts to achieve environment-friendly and sustainable real estate development and consumer protection.
(2) Real estate development business entities, etc. shall conduct real estate development business based upon the principle of good faith.
 Article 17 (Registered Business Entities' Obligation to Report, etc.)
Every registered business entity shall report the matters in each of the following subparagraphs to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Business records (where a registered business entity who is an individual has established a corporation by investing in the kind of working assets which are used for real estate development business for not less than one year, referring to the records, including the business records of the registered business entity who is an individual, and where re-registration is made after the cancelation of registration, referring to the records since the re-registration);
2. Change in capital (in cases of individuals, referring to the value of appraised assets for working; hereinafter the same shall apply);
3. Change in executive officers and real estate development experts.
 Article 18 (Investigation of Actual Conditions of Real Estate Development Business Entities, etc.)
(1) When necessary to confirm conformity or non-conformity with the requirements for registration under Article 4, appropriateness of real estate development, etc., the Minister of Land, Infrastructure and Transport may order registered business entities to report their business, financial standing, etc. or may require public officials under his/her control to investigate the management situation of registered business entities or inspect their facilities. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) When necessary for the investigation of management situation of registered business entities under paragraph (1), the Minister of Land, Infrastructure and Transport may demand the submission of data on the current situation of real estate development, etc. from constructors in charge of construction for real estate development carried out by registered business entities or participants in real estate development. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) Where the investigation or inspection under paragraph (1) is conducted, those subject to the investigation shall be notified of a plan informing of the date and time, causes, details, etc. of the investigation prior to the period determined by Ordinance of the Ministry of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the same shall not apply in urgent cases, or where achieving the objectives of investigation or inspection is deemed impossible because of the destruction of evidence, etc., if an advance notice is given. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall carry a certificate indicating his/her authority and present it to interested persons.
(5) The requirements, period and methods of demanding investigation, inspection and submission of data under paragraphs (1) and (2), and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 19 (Comprehensive Management of Real Estate Development Business Information)
(1) The Minister of Land, Infrastructure and Transport shall manage information on registered business entities, including the capital, business records, management situation, etc. of such business entities, and information necessary for real estate development in a comprehensive way and shall provide consumers and related institutions and organizations with information necessary for the protection of consumers, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the information to be provided shall be limited to information that does not violate the trade secrets of registered entities. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport shall establish and operate a system for the comprehensive management of real estate development business information, as prescribed by Presidential Decree, to manage the real estate development business information under paragraph (1) systematically. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9340, Jan. 7, 2009; Act No. 11690, Mar. 23, 2013>
 Article 20 (Prohibited Acts)
(1) No real estate development business entity shall conduct any of the following acts:
1. Enticing another person to be provided with real estate, etc., by informing false information or exaggerated facts or cheating;
2. Propagating false information on real estate development to many unspecified individuals for the purpose of enticing other persons to be provided with real estate, etc. by leading them to a faulty judgment;
3. Compelling another person to be provided with real estate, etc. by means of telephone, facsimile, computer network, etc. even though the person expressed that he/she has no intention to be provided with real estate, etc.
(2) The provisions of paragraph (1) shall apply mutatis mutandis to those who handle the business affairs entrusted by real estate development business entities or act for real estate development business entities (including the executive officers and employees thereof; hereinafter the same shall apply).
CHAPTER IV INVESTIGATION, CORRECTIVE MEASURES, ETC.
 Article 21 (Investigation of Offenses, etc.)
(1) When necessary to conduct an investigation for corrective measures, suspension of business, the Minister of Land, Infrastructure and Transport may request for dismissal of or disciplinary action against executive officers and employees, cancellation of registration, imposition of administrative fines, etc. under Article 22, 24, 25 or 40, impose the dispositions in each of the following subparagraphs, or conduct other necessary investigations, as prescribed by Presidential Decree and may require public officials under his/her control to enter the offices or business sites of real estate development business entities (including those who handle the business affairs entrusted by real estate development business entities or act for them; hereinafter the same shall apply) and inspect their affairs and management situations or investigate or inspect books, documents, and other data or matters prescribed by Presidential Decree: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10668, May 19, 2011; Act No. 11690, Mar. 23, 2013>
1. Requesting parties concerned, interested persons, or witnesses to appear and listening to their opinions;
2. Ordering real estate development business entities to report their management situations and submit other necessary data or matters.
(2) Any public official who investigates or inspects pursuant to paragraph (1) may order real estate development business entities or the executive officers or employees thereof to submit data or matters necessary for investigation or inspection, as prescribed by Presidential Decree.
(3) Article 18 (4) shall apply mutatis mutandis to public officials engaged in investigation or inspection pursuant to paragraphs (1) and (2).
(4) When the Minister of Land, Infrastructure and Transport conducts an investigation or inspection pursuant to paragraphs (1) and (2), he/she shall notify the investigated or inspected real estate development business entities in writing of the results thereof (where he/she intends to impose a disposition, such as an order to take corrective measures as a result of investigation or inspection, including the details of such disposition). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) Where five years have passed since an offense committed in violation of this Act was terminated, the Minister of Land, Infrastructure and Transport shall not order the corrective measures under Article 22 or the suspension of business (including the request for dismissal of or disciplinary action against executive officers and employees) under Article 24 against the offense concerned: Provided, That the same shall not apply where parties concerned who accepted recommendations or mediations proposed by the conflict mediation body for damage to consumers under Article 23 (1) fail to carry them out. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 22 (Corrective Measures)
(1) When a registered business entity or an executive officer or employee thereof commits any of the following acts, the Minister of Land, Infrastructure and Transport may order the registered business entity and the executive officer or employee thereof to take measures to correct it: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. An act violating the provisions of Articles 7 (2), 8 (2), 11 (1) (including cases where the provisions of Article 11 (1) apply mutatis mutandis under paragraph (5) of the same Article), 12, 13, 14, 15 (1) and 17;
2. An act falling under any subparagraph of Article 20 (1).
(2) Corrective measures under paragraph (1) means any of the following:
1. Suspension of offenses concerned;
2. Fulfillment of obligations provided for in this Act;
3. Announcement of the fact of being subject to the disposition of corrective measures;
4. Removal, etc. of advertisements, signboards, etc;
5. Other measures necessary for the correction of offenses.
(3) Matters necessary for the announcement of the fact of being subject to the disposition of corrective measures under paragraph (2) 3 shall be prescribed by Presidential Decree.
 Article 23 (Request for Mediation of Conflicts over Damage to Consumers)
(1) When a consumer files an application for damage relief in connection with an offense committed in violation of this Act, the Minister of Land, Infrastructure and Transport may request the conflict mediation body for damage to consumers prescribed by Presidential Decree, such as institutions and organizations that conduct the affairs related to customer protection, before taking corrective measures under Article 22. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) Where a party concerned accepts and carries out recommendations or mediations proposed by the conflict mediation body for damage to consumers under paragraph (1), no corrective measure under Article 22 shall be taken, as prescribed by Presidential Decree. In such cases, the intention not to take the corrective measures shall be notified to the parties concerned.
 Article 24 (Suspension of Business, etc.)
(1) When a registered business entity falls under any of the following, the Minister of Land, Infrastructure and Transport may order the suspension of the whole or part of the business concerned, for a fixed period of not more than one year: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9340, Jan. 7, 2009; Act No. 11690, Mar. 23, 2013>
1. Where the registered business entity fails to label or advertise the fact that he/she is registered pursuant to this Act and other matters necessary for consumer protection, in violation of Article 8 (2);
2. Where the registered business entity fails to report business records, a change in capital, or change in executive officers and real estate development experts, in violation of Article 17 or makes a false report thereon: Provided, That cases where registration is cancelled pursuant to Article 25 (2) 4 shall be excluded;
3. Where the registered business entity fails to fulfill an order for reporting under Article 18 (1) or makes a false report, or refuses, obstructs, or evades investigation or inspection;
4. Where the registered business entity commits an offense falling under any subparagraph of Article 20 (1);
5. Where the registered business entity refuses, obstructs, or evades the investigation or inspection under Article 21 (1);
6. Where the registered business entity fails to file a report or submit necessary data or matters under Article 21 (1) 2 or paragraph (2) of the same Article, or makes a false report or submits false data or matters;
7. Where an offense is repeated in spite of corrective measures under Article 22, or the corrective measures are not carried out.
(2) In any of the following cases, the Minister of Land, Infrastructure and Transport may request registered business entities to dismiss or take a disciplinary action against executive officers and employees who commit an offense: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Where an executive officer or an employee of a registered business entity, who is a real estate development expert under Article 4 (2) 2 becomes a real estate development expert of another registered business entity, in violation of Article 9 (2);
2. Where an executive officer or employee of a registered business entity violates any subparagraph of Article 20 (1).
(3) Detailed criteria for the disposition of suspension of business under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in consideration of causes, gravity of violation, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 25 (Cancellation of Registration of Real Estate Development Business)
(1) When a registered business entity falls under any of the following, the Minister of Land, Infrastructure and Transport shall cancel registration of the real estate development business concerned: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9340, Jan. 7, 2009; Act No. 11690, Mar. 23, 2013>
1. Where the registered business entity filed for registration of the real estate development business concerned under Article 4 by fraud or other improper means;
2. Where the registered business entity falls under any of the grounds for disqualification for registration of real estate development business in the subparagraphs of Article 6: Provided, That the same shall not apply where an executive officer of a corporation registered as a real estate development business entity is replaced within three months from the date on which he/she is known to fall under the grounds for disqualification of registration of real estate development business;
3. Where the registered business entity obtains double registration of real estate development business, in violation of Article 9 (1);
4. Where the registered business entity has another person engage in real estate development in his/her name or trade name or transfers or lends his/her certificate of registration of real estate development business to another person, in violation of Article 10 (1);
5. Where the registered business entity conducts the real estate development business concerned during the period set for suspension of business;
6. Where the registered business entity violates any subparagraph of Article 20 (1) again within fives years from the date on which the disposition of suspension of business was taken against the entity for violating Article 20 (1) 1 or 2;
7. Where the registered business entity commits an act subject to the disposition of suspension of business again in the last three years after the disposition of suspension of business was taken against him/her twice (once, in cases of the disposition of suspension of business not less than six months) pursuant to this Act.
(2) When a registered business entity falls under any of the following, the Minister of Land, Infrastructure and Transport may cancel the registration of the real estate development business concerned: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9340, Jan. 7, 2009; Act No. 11690, Mar. 23, 2013>
1. Where the registered business entity fails to satisfy the requirements for registration of real estate development business under Article 4: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as cases where the requirements for registration is not satisfied temporarily;
2. Where the registered business entity fails to commence the business concerned within one year after the real estate development business concerned is registered;
3. Where the registered business entity fails to comply with the request for dismissing or taking a disciplinary action against executive officers and employees under Article 24 (2);
4. Where the registered business entity makes a false report on crucial facts intentionally or by gross negligence when reporting business records pursuant to Article 17.
(3) Any person whose registered real estate development business is cancelled pursuant to paragraph (1) or (2) shall return the certificate of registration of real estate development business to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) Any person who is unable to return a certificate of registration of real estate development business pursuant to paragraph (3) by reason of loss, etc. shall submit a written statement explaining the causes thereof to the Minister of Land, Infrastructure and Transport in lieu of the return of the certificate of registration of real estate development business concerned, notwithstanding paragraph (3). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 26 (Real Estate Development by Persons subject to Disposition of Suspension of Business, etc.)
(1) Any registered business entity subject to the disposition of suspension of business under Article 24 or the disposition of cancellation of registration under Article 25 and the universal successor thereof may proceed with real estate development that they commenced by concluding a contract with the constructor under subparagraph 7 of Article 2 of the Framework Act on the Construction Industry or by obtaining authorization, permission, etc. pursuant to the relevant statutes before he/she was imposed such disposition: Provided, That the same shall not apply where the Minister of Land, Infrastructure and Transport deems that a registered business entity subject to the disposition of cancellation of registration has a grave cause that prevents him/her from proceeding with the real estate development concerned in consideration of the details and gravity of the offense concerned. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10719, May 24, 2011; Act No. 11690, Mar. 23, 2013>
(2) Where a registered business entity proceeds with real estate development pursuant to paragraph (1) after registration of the real estate development business concerned is cancelled, he/she shall be deemed a registered business entity until the completion of the real estate development concerned.
 Article 27 (Succession of Status as Registered Business Entity, etc.)
(1) Where a person whose registration of real estate development business is cancelled according to the report of business closure under Article 15 files for registration of a registered business entity again pursuant to Article 4 within one year, such registered business entity shall succeed the status as a registered business entity that he/she had maintained before reporting business closure.
(2) Any person who succeeds the status as a registered business entity pursuant to paragraph (1) shall succeed the effect of administrative dispositions given to the former registered business entity before the report of business closure.
(3) The Minister of Land, Infrastructure and Transport may take measures, such as corrective measures, request for mediation of conflicts over damage to consumers, suspension of business and cancellation of registration under Articles 22 through 25 against those who succeed the status as a registered business entity pursuant to paragraph (1) by reason of offenses committed before the report of business closure. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 28 (Announcement of Cancellation of Registration, etc.)
When the Minister of Land, Infrastructure and Transport takes measures, such as corrective measures, suspension of business (excluding the request for the dismissal of or taking a disciplinary action against executive officers and employees) and cancellation of registration, against registered business entities pursuant to Articles 22, 24 and 25, he/she shall announce the details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 29 (Establishment of Association, etc.)
(1) Any registered business entity may establish a real estate development business entities' organization (hereinafter referred to as "association") to promote the specialization of affairs related to real estate development and the sound development of the real estate development industry.
(2) The association shall be a corporation.
(3) The association shall be incorporated by completing registration of incorporation at the seat of its principal office.
(4) When an association is intended to be established, the articles of association shall be prepared by not less than 50 initiators who are qualified to become association members and obtain the authorization of the Minister of Land, Infrastructure and Transport through the resolution of the inaugural general meeting. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) The articles of incorporation of the association, cancellation of authorization for incorporation, and other necessary matters shall be prescribed by Presidential Decree.
(6) Except as otherwise provided for in this Act, the provisions of the Civil Act, which pertain to incorporated foundations, shall apply mutatis mutandis to the association.
 Article 30 (Business Affairs and Supervision of Association)
(1) The business affairs of the association shall be as mentioned in each of the following subparagraphs:
1. Investigation and research for the sound development of the real estate development industry;
2. Affairs to promote mutual cooperation between association members;
3. Education and training to improve the quality of real estate development experts and those engaged in the real estate development industry;
4. Affairs concerning voluntary deliberation of labels and advertisements of real estate development business entities;
5. Affairs incidental to subparagraphs 1 through 4;
6. Affairs prescribed by Presidential Decree other than those under subparagraphs 1 through 5;
(2) The Minister of Land, Infrastructure and Transport may, if necessary for supervisory purposes, have the association report matters concerning its business affairs, submit data or fulfill other necessary orders, and the investigation and inspection of the affairs of the association, and other matters necessary for the supervision of the association shall be prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 31 (Reporting and Supervision)
Any Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor, or the Governor of a Special Self-Governing Province (hereinafter referred to as the "Metropolitan City Mayor/Do Governor") to which is delegated some of authority pursuant to Article 34 shall, when he/she takes measures pursuant to Articles 22 through 25, such as corrective measures, request for mediation of conflicts over damage to consumers, suspension of business (including the request for dismissal of or taking a disciplinary action against executive officers and employees) and cancellation of registration, report it to the Minister of Land, Infrastructure and Transport as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 32 (Hearings)
When the Minister of Land, Infrastructure and Transport intends to cancel registration pursuant to Article 25, he/she shall hold a hearing pursuant to the Administrative Procedures Act. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 33 (Fees)
Any of the following persons shall pay fees, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. A person who applies for registration of real estate development business pursuant to Article 4 (1);
2. A person who applies for the re-delivery of certificate of registration of real estate development business pursuant to Article 7 (3)
 Article 34 (Delegation and Entrustment of Authority)
(1) The Minister of Land, Infrastructure and Transport may delegate part of his/her authority under this Act to the head of an institution under his/her jurisdiction, a Mayor/Do Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu), as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10668, May 19, 2011; Act No. 11690, Mar. 23, 2013>
(2) If necessary for the efficient execution of this Act, the Minister of Land, Infrastructure and Transport may entrust any of the following administrative affairs to an institution or organization prescribed by Presidential Decree, as prescribed by Presidential Decree: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10668, May 19, 2011; Act No. 11690, Mar. 23, 2013>
1. Receipt of applications for registration of real estate development business under Article 4 and verification of the details of applications;
2. Receipt of applications for the delivery, re-issuance and alteration of certificate of registration under Article 7 and verification of the details of applications;
3. Receipt of reports on transfer or merger of, and succession to real estate development business under Article 11, and verification of reported details;
4. Receipt of the report of closure of real estate development business under Article 15 and verification of reported details;
5. Receipt of the report of business records, change in capital, and change in executive officers and real estate development experts of registered business entities under Article 17 and verification of reported details;
6. Establishment and operation of the system for the comprehensive management of real estate development business information under Article 19.
 Article 35 (Legal Fiction of Public Officials in Application of Penalty Provisions)
Any person who engages in entrusted administrative affairs under Article 34 (2) shall be deemed a public official for the purposes of the penalty provisions of Articles 127 and 129 through 132 of the Criminal Act.
CHAPTER VI PENALTY PROVISIONS
 Article 36 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 50 million won: <Amended by Act No. 9340, Jan. 7, 2009>
1. A person who fails to file for registration under Article 4 (1) or conducts real estate development business by applying for registration by fraud or other improper means;
2. A person who labels or advertises that he/she is a registered business entity under this Act or labels or advertises matters feared to cause others to misunderstand him/her as a registered business entity, in violation of Article 8 (1);
3. A person fails to fulfill an order to take corrective measures under Article 22 (1), which is issued in violation of any subparagraph of Article 8 (2) or Article 20 (1);
4. A person who files a false report on crucial facts intentionally or by gross negligence when reporting business records pursuant to Article 17;
5. A person who entices another person to be provided with real estate, etc. by informing him/her of false information or exaggerated facts or by cheating in violation of Article 20 (1) 1 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
 Article 37 (Penalty Provisions)
Any person who conducts business in violation of the disposition of suspension of business under Article 24 (1) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 30 million won.
 Article 38 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 20 million won:
1. A person who obtains double registration of real estate development business, in violation of Article 9 (1);
2. A person who requires another person to engage in real estate development in his/her name or trade name or transfers or lends his/her certificate of registration of real estate development business to another person, in violation of Article 10 (1);
3. A person who conducts real estate development business in another person's name or trade name, or takes over or borrows another person's certificate of registration of real estate development business, in violation of Article 10 (2);
4. A person who propagates false information on real estate development to many unspecified individuals for the purpose of leading other persons to a faulty judgement to entice them to be provided with real estate, etc., in violation of Article 20 (1) 2 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
 Article 39 (Joint Penalty Provisions)
When the representative of a corporation, or an agent or employee of, or any other person employed by, a corporation or an individual commits an offense under Articles 36 through 38 in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such offense.
[This Article Wholly Amended by Act No. 9340, Jan. 7, 2009]
 Article 40 (Administrative Fines)
(1) Any of the following persons shall be subject to an administrative fine not exceeding 30 million won:
1. A person who fails to indicate the fact that he/she is registered pursuant to this Act and matters necessary for consumer protection in labels or advertisements, in violation of Article 8 (2);
2. A person who compels another person to be provided with real estate, etc. by means of telephone, facsimile, computer networks, etc. in violation of Article 20 (1) 3 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
(2) Any of the following persons shall be subject to an administrative fine not exceeding ten million won: <Amended by Act No. 9340, Jan. 7, 2009>
1. A person who becomes a real estate development expert of another registered business entity, in violation of Article 9 (2);
2. A person who fails to file a report on business records, change in capital, and change in officers and real estate development experts in violation of Article 17 or makes a false report thereon: Provided, That those who fall under subparagraph 4 of Article 36 and were punished pursuant to the corresponding Article shall be excluded;
3. A person who fails to fulfill an order to report under Article 18 (1) or files a false report, or refuses, obstructs, or evades investigation or inspection;
4. A person who refuses, obstructs or evades the investigation and inspection under Article 21 (1);
5. A party concerned with an offense against this Act who fails to appear without any justifiable ground, in violation of Article 21 (1) 1;
6. A person who fails to submit the report or necessary data or matters under Article 21 (1) 2 or paragraph (2) of the same Article or submits a false report, data or matters.
(3) Any of the following persons shall be subject to an administrative fine not exceeding five million won:
1. A person who fails to file an application for alternation of matters entered in the certificate of registration of real estate development business, in violation of Article 7 (2);
2. A person who fails to file a report on the transfer and merger of real estate development business, in violation of Article 11 (1);
3. A person who fails to file a report of business closure, in violation of Article 15 (1);
4. A person who fails to return the certificate of registration of real estate development business or fails to submit a written statement explaining causes that prevent him/her from returning the certificate of registration of real estate development business or submits a false statement, in violation of Article 25 (3) or (4).
(4) Administrative fines under paragraphs (1) through (3) shall be imposed and collected by the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree. <Newly Inserted by Act No. 9340, Jan. 7, 2009; Act No. 11690, Mar. 23, 2013>
 Article 41 Deleted. <by Act No. 9340, Jan. 7, 2009>
ADDENDA
(1) (Enforcement Date) This Act shall enter into force six months after its promulgation: Provided, That the provisions of Articles 5 (2) and 19 shall enter into force one and a half years after their promulgation.
(2) (Special Cases on Advance Education) Notwithstanding the proviso to paragraph (1) of Addenda, advance education may be provided pursuant to the latter part of Article 5 (2) from the date on which this Act enters into force.
(3) (Transitional Measures concerning Registration of Real Estate Development Business) Notwithstanding Article 4, any person who conducts a real estate development business at the time when this Act enters into force may conduct the real estate development business without filing for registration under Article 4 for six months from the enforcement date of this Act.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8974, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 9340, Jan. 7, 2009>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Article 39 shall enter into force on the date of their promulgation.
(2) (Examples of Application concerning Disposition of Suspension of Business Falling under Grounds for Cancellation of Registration) The amended provisions of Article 25 (1) 7 shall apply, starting from the first imposition of the disposition of suspension of business after this Act enters into force: Provided, That where the number of the disposition of suspension of business imposed after this Act enters into force satisfies the conditions for cancellation of registration of real estate development business under the previous provisions when combined with the number of the disposition of suspension of business imposed before this Act enters into force, the previous provisions shall prevail notwithstanding the amended provisions of Article 25 (1) 7.
(3) (Transitional Measures concerning Penalty Provisions, etc.) With respect to the application of penalty provisions and administrative fines to offenses committed before this Act enters into force, the previous provisions shall prevail.
ADDENDUM <Act No. 10668, May 19, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10719, May 24, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11599, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11794, May 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 26 Omitted.
ADDENDA <Act No. 13480, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent, etc.)
A person under adult guardianship or a person under limited guardianship under the amended provisions of subparagraph 1 of Article 6 shall be deemed to include a person for whom the adjudgment for incompetency or quasi-incompetency continues to be effective under Article 2 of the Addenda to the Civil Act (Act No. 10429).
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.