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SPECIAL ACT ON REVITALIZATION AND COMPETITIVENESS ENHANCEMENT OF HUB DECREPIT INDUSTRIAL COMPLEXES

Act No. 12965, Jan. 6, 2015

Amended by Act No. 13482, Aug. 11, 2015

Act No. 13797, Jan. 19, 2016

Act No. 13879, Jan. 27, 2016

Act No. 14532, Jan. 17, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to balanced regional development and national economic progress by reinforcing the public support and its role in strengthening the vitality and competitiveness of hub decrepit industrial complexes.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term “hub decrepit industrial complex” means an industrial complex that has been in operation for at least 20 years since its inception and serves as a major hub for balanced regional development and sound national economic advancement, among the following industrial complexes:
(a) National industrial complexes prescribed in Article 6 of the Industrial Sites and Development Act;
(b) General industrial complexes prescribed in Article 7 of the Industrial Sites and Development Act, deemed in need of competitiveness enhancement according to a strategic plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 9;
2. The term “competitiveness enhancement” means improving the functions of industrial sites and strengthening the competitiveness of industrial complexes by adding value to the industries in an industrial complex; reinforcing corporate support services; and maintaining, repairing, upgrading and expanding the industrial complex infrastructure, support facilities and convenience facilities;
3. The term “industrial complex infrastructure” means any of the following facilities:
(a) Industrial cluster infrastructure defined in subparagraph 9 of Article 2 of the Industrial Cluster Development and Factory Establishment Act;
(b) Infrastructure prescribed by Presidential Decree, including ports, roads, water facilities, railways, telecommunication and electric facilities;
4. The term “project for enhancing the competitiveness of hub decrepit industrial complexes (hereinafter referred to as “competitiveness enhancement project”)” means any of the following projects implemented in accordance with a project plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 13:
(a) A set of projects promoted by the State or local governments to establish industrial complex infrastructure which fall under any of the following:
(i) Landscape projects prescribed in Article 16 of the Landscape Act;
(ii) Projects for developing energy and resource technologies prescribed in Article 11 (1) 5 of the Industrial Technology Innovation Promotion Act;
(iii) Industrial complex renovation projects defined in subparagraph 11 of Article 2 of the Industrial Sites and Development Act;
(iv) Industrial complex structure improvement projects defined in subparagraph 11 of Article 2 of the Industrial Cluster Development and Factory Establishment Act;
(v) Support for the mandatory supply of new and renewable energy prescribed in subparagraph 4 of Article 10 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy, and pilot projects and distribution projects of new and renewable energy referred to in subparagraph 11 of the same Article;
(vi) Support for the energy management system prescribed in Article 28-2 of the Energy Use Rationalization Act, and energy diagnosis provided for in Article 32 of the same Act;
(vii) Projects for developing station areas defined in subparagraph 2 of Article 2 of the Act on Developing and Using Station Areas (limited to where a railway station constructed and operated under the Railroad Construction Act, the Framework Act on Railroad Industry Development, and the Urban Railroad Act is located within an industrial complex);
(viii) Harbor redevelopment projects defined in subparagraph 8 of Article 2 of the Harbor Act;
(ix) Designation of an ecological industrial complex prescribed in Article 21 of the Act on the Promotion of the Conversion into Environment-Friendly Industrial Structure;
(b) A set of projects promoted by the State or local governments for the purpose of industrial clustering, cultivating human resources, establishing research bases, etc., which fall under any of the following:
(i) Programs for employment security and vocational skills development prescribed in Article 19 of the Employment Insurance Act; programs for employment security and promotion of employment prescribed in Article 25 of the same Act; and programs for promoting vocational skills development referred to in Article 31 of the same Act;
(iii) Programs connected with employment of human resources prescribed in Article 9 of the Special Act on Support for Human Resources of Small and Medium Enterprises, and tailored human resource training programs connected with industry-academia cooperation prescribed in Article 10 of the same Act;
(iv) Collaboration projects between small and medium entrepreneurs prescribed in Articles 37 through 40 of the Small and Medium Enterprises Promotion Act;
(v) Support for utilizing research facilities and equipment pursuant to Article 37-4 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act, and support for promoting industry-academia-research cooperation prescribed in Article 39 of the same Act;
(vi) Projects for developing a technopark defined in subparagraph 1 of Article 2 of the Act on Special Cases concerning Support for Technoparks;
(vii) Projects for developing industrial technology prescribed in Article 11 of the Industrial Technology Innovation Promotion Act, and projects for developing infrastructure for industrial technology referred to in Article 19 of the same Act;
(viii) Competitiveness strengthening projects for industrial clusters prescribed in Article 22-3 of the Industrial Cluster Development and Factory Establishment Act, and the designation of a university-industry collaboration zone referred to in Article 22-4 of the same Act;
(c) A set of projects conducted by the State or local governments for the purpose of improving the living conditions of workers, such as their residential conditions, which fall under any of the following:
(i) Assistance for job creation prescribed in Article 20 of the Employment Insurance Act;
(ii) A system for housing supply for workers prescribed in Article 15 of the Framework Act on Labor Welfare; lending of funds for home purchases, etc. prescribed in Article 17 of the same Act; and support for establishing welfare facilities for workers referred to in Article 28 (3) and (4) of the same Act;
(iii) Establishment of national or public child-care centers provided for in Article 12 of the Infant Care Act;
(iv) Support for common accommodation facilities referred to in subparagraph 2 of Article 24 of the Special Act on Support for Human Resources of Small and Medium Enterprises, and support for long-term employed workers at small and medium enterprises to move into housing prescribed in Article 30 of the same Act;
(d) A set of projects promoted by the State or local governments for the purpose of improving a cultural environment by establishing cultural and sports facilities, etc., which fall under any of the following:
(i) Projects for supporting the expansion of national sports facilities prescribed in Article 22 (1) 2 of the National Sports Promotion Act;
(ii) Projects for promoting public arts (referring to installing and exhibiting works of art to the public in open places) prescribed in subparagraphs 9 and 10 of Article 18 of the Culture and Arts Promotion Act, and other projects and activities of cultural facilities which aim at promoting culture and arts, including supporting and fostering libraries;
(e) Other projects prescribed by Presidential Decree to strengthen the competitiveness of hub decrepit industrial complexes;
5. The term “competitiveness enhancement project zone” means a hub decrepit industrial complex designated as a complex subject to a competitiveness enhancement project under Article 12;
6. The term “persons having authority to establish a strategic plan” means the Minister of Trade, Industry and Energy and the Minister of Land, Infrastructure and Transport, who are to jointly establish a strategic plan for enhancing the competitiveness of hub decrepit industrial complexes in accordance with Article 9.
 Article 3 (Responsibilities of the State and Local Governments)
(1) The State and local governments shall secure the necessary budget to promote competitiveness enhancement projects, and shall formulate and implement related policies.
(2) Local governments shall endeavor to ensure that competitiveness enhancement projects go on smoothly by appropriately reflecting the details of such projects in the urban planning in the relevant region.
 Article 4 (Relationship to Other Statutes)
This Act shall prevail over other statutes concerning matters related to support and special cases applicable to competitiveness enhancement projects: Provided, That where any other statute includes provisions that relax regulations to a greater extent than the special cases concerning regulation prescribed in this Act, such statute shall prevail over this Act.
CHAPTER II SYSTEM FOR PROMOTING ENHANCEMENT OF COMPETITIVENESS
 Article 5 (Establishment of Competitiveness Enhancement Promotion Committee)
(1) The Competitiveness Enhancement Promotion Committee (hereinafter referred to as the “Committee”) for hub decrepit industrial complexes shall be established under the jurisdiction of the Prime Minister in order to comprehensively and efficiently promote policies on strengthening the competitiveness of hub decrepit industrial complexes.
(2) The Committee shall deliberate on the following matters:
1. Major policies for promoting enhancement of the competitiveness of hub decrepit industrial complexes;
2. Establishment of a strategic plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 9;
3. Matters relating to designating a competitiveness enhancement project zone referred to in Article 12;
4. Matters relating to paying the cost related to competitiveness enhancement projects;
5. Support measures of the relevant central administrative agencies concerning competitiveness enhancement projects;
6. Other matters necessary in relation to competitiveness enhancement projects, brought by the chairperson to a meeting of the Committee.
(3) The Prime Minister shall serve as the chairperson of the Committee, and the following persons shall be its members, consisting of at least ten and up to 30 persons:
1. Members from the government: The heads of relevant central administrative agencies prescribed by Presidential Decree;
2. Civilian members: Persons commissioned by the chairperson from among those with abundant professional knowledge about and experience in strengthening the competitiveness of industrial complexes.
(4) Other matters necessary for the composition, operation, etc. of the Committee shall be prescribed by Presidential Decree.
 Article 6 (Local Council for Promoting Competitiveness Enhancement)
(1) A council for promoting enhancement of the competitiveness of hub decrepit industrial complexes may be established in local governments to deliberate or advise on any of the following matters:
1. Major policies of local governments related to strengthening the competitiveness of hub decrepit industrial complexes;
2. Establishment of a project plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 13;
3. Matters relating to local governments ’support for competitiveness enhancement projects;
4. Other necessary matters in relation to competitiveness enhancement projects.
(2) Matters necessary for the composition, operation, etc. of a council for promoting enhancement of the competitiveness of hub decrepit industrial complexes shall be prescribed by Presidential Decree.
 Article 7 (Designation of Organizations for Supporting Enhancement of Competitiveness of Hub Decrepit Industrial Complexes)
(1) In order to conduct the following matters, the persons having authority to establish a strategic plan may designate a public institution prescribed by Presidential Decree as an organization for supporting enhancement of the competitiveness of hub decrepit industrial complexes:
1. Identification of measures for enhancing the competitiveness of hub decrepit industrial complexes;
2. Survey and research for institutional development aimed at enhancing the competitiveness of hub decrepit industrial complexes;
3. Support for establishing a strategic plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 9, a project plan for enhancing the competitiveness of hub decrepit industrial complexes referred to in Article 13, etc.;
4. Support for implementation, operation, and management of competitiveness enhancement projects;
5. Cultivation and dispatch of experts specializing in competitiveness enhancement of hub decrepit industrial complexes;
6. Other duties prescribed by Presidential Decree as necessary to enhance the competitiveness of hub decrepit industrial complexes.
(2) Matters necessary for the composition, operation, etc. of an organization for supporting enhancement of the competitiveness of hub decrepit industrial complexes shall be prescribed by Presidential Decree.
 Article 8 (Establishment of Councils of Persons Concerned with Competitiveness Enhancement of Hub Decrepit Industrial Complexes)
(1) Any person who intends to establish a council of persons concerned with enhancement of the competitiveness of hub decrepit industrial complexes, consisting of occupant enterprises, landowners, local residents, etc., for the purpose of receiving proposals, advice, etc. on competitiveness enhancement projects from occupant enterprises, landowners, local residents, etc., shall obtain approval from persons having authority to establish a strategic plan after meeting the requirements for establishing such council prescribed by Presidential Decree.
(2) Necessary matters concerning the establishment procedures, composition, operation, etc. of a council of persons concerned with enhancement of the competitiveness of hub decrepit industrial complexes shall be prescribed by Presidential Decree.
CHAPTER III STRATEGIC PLANS FOR ENHANCEMENT OF COMPETITIVENESS
 Article 9 (Establishment of Strategic Plans for Enhancement of Competitiveness)
(1) Persons having authority to establish a strategic plan shall establish a ten-year strategic plan for enhancing the competitiveness of hub decrepit industrial complexes (hereinafter referred to as “strategic plan”) quinquennially with the aim of strengthening the competitiveness of hub decrepit industrial complexes.
(2) A strategic plan shall contain the following matters:
1. Matters relating to the points of connection and linkage structures of industrial complexes based on their current locations by industry and value chain;
2. Matters relating to selecting and changing hub decrepit industrial complexes;
3. Basic information on the current status of each hub decrepit industrial complex, and diagnosis on its deterioration;
4. Matters relating to the basic goals and medium- and long-term development directions of competitiveness enhancement projects;
5. Annual plans for expanding competitiveness enhancement projects;
6. Matters relating to the strategies and methods for promoting competitiveness enhancement projects by hub decrepit industrial complex;
7. Other matters necessary to enhance the competitiveness of hub decrepit industrial complexes.
(3) A strategic plan shall be formulated in consideration of the following:
1. A comprehensive national land plan referred to in Article 6 (2) 1 of the Framework Act on the National Land;
2. A five-year regional development plan referred to in Article 4 of the Special Act on Balanced National Development;
3. An urban or Gun plan defined in subparagraph 2 of Article 2 of the National Land Planning and Utilization Act;
4. A Seoul Metropolitan area readjustment plan defined in subparagraph 2 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act;
5. An industrial location supply and demand plan prescribed in Article 5-2 of the Industrial Sites and Development Act;
6. A master plan for the promotion of industrial clustering prescribed in Article 3 of the Industrial Cluster Development and Factory Establishment Act.
(4) Where the persons having authority to establish a strategic plan intends to formulate or amend a strategic plan, he/she shall consult with the heads of the relevant central administrative agencies and undergo deliberation of the Committee after hearing the opinions of the heads of the relevant local governments: Provided, That this shall not apply where minor matters prescribed by Presidential Decree are to be amended.
(5) Where a strategic plan is determined pursuant to paragraph (4), the persons having authority to establish a strategic plan shall publicly announce it as prescribed by Presidential Decree, and notify the same to the heads of the relevant central administrative agencies and the heads of local governments.
(6) Other matters necessary for establishing, amending, etc. a strategic plan shall be prescribed by Presidential Decree.
 Article 10 (Fact-Finding Surveys)
(1) The persons having authority to establish a strategic plan may conduct a fact-finding survey on industrial complexes to establish a strategic plan.
(2) Where it is necessary for a fact-finding survey referred to in paragraph (1), the persons having authority to formulate a strategic plan may request the submission of materials or provision of opinions from the heads of relevant central administrative agencies, the heads of local governments, and the heads of relevant institutions and organizations. In such cases, a person in receipt of such request shall comply therewith, except in extenuating circumstances.
(3) Detailed matters concerning a fact-finding survey referred to in paragraph (1), and a request for submitting materials and providing opinions prescribed in paragraph (2) shall be prescribed by Presidential Decree.
CHAPTER IV DESIGNATION OF COMPETITIVENESS ENHANCEMENT PROJECT ZONES AND IMPLEMENTATION OF PROJECTS
 Article 11 (Public Contests for Competitiveness Enhancement Project Zones)
(1) Where the persons having authority to establish a strategic plan intends to designate a competitiveness enhancement project zone, he/she shall, jointly with the heads of relevant central administrative agencies, conduct a public contest by inviting the local governments having jurisdiction over hub decrepit industrial complexes, as prescribed by Presidential Decree: Provided, That where a competitiveness enhancement project needs to be promoted urgently, the persons having authority to establish a strategic plan may not conduct a public contest after undergoing deliberation of the Committee.
(2) The head of a local government that intends to acquire designation as a competitiveness enhancement project zone shall submit an application for designation as a competitiveness enhancement project zone (hereinafter referred to as “application for designation”) describing the following matters, as prescribed by Presidential Decree:
1. Basic goals and medium- and long-term development directions of a competitiveness enhancement project;
2. Basic information on the current status and level of decrepitude of industrial complexes subject to a competitiveness enhancement project;
3. Annual plans for conducting a competitiveness enhancement project;
4. Matters relating to advancing the relevant types of businesses and establishing an innovation ecosystem;
5. Matters relating to building infrastructure of industrial complexes;
6. Matters relating to industrial clustering, training of human resources, building research infrastructure, etc.;
7. Matters relating to improvement of the living conditions of workers, including their residential conditions;
8. Matters relating to improvement of a cultural environment, including establishing cultural and sports facilities, etc.;
9. Measures for securing financial resources for promoting a competitiveness enhancement project;
10. Other matters necessary for a competitiveness enhancement project.
(3) The head of a local government who intends to obtain designation as a competitiveness enhancement project zone shall consult with the person having authority to designate the relevant industrial complex (referring to the person having authority to designate general industrial complexes prescribed in Articles 6 and 7 of the Industrial Sites and Development Act), the authorized administrator (referring to the authorized administrator prescribed in subparagraph 16 of Article 2 of the Industrial Cluster Development and Factory Establishment Act; hereinafter the same shall apply), and the management agency (referring to the management agency prescribed in subparagraph 17 of Article 2 of the Industrial Cluster Development and Factory Establishment Act); and submit the outcomes of such consultation when filing an application for designation.
 Article 12 (Designation of Competitiveness Enhancement Project Zones)
(1) The persons having authority to establish a strategic plan shall designate a competitiveness enhancement project zone based on the results of evaluating an application for designation.
(2) The evaluation prescribed in paragraph (1) shall be conducted in consideration of the following criteria:
1. Implementing the project is expected to make a great contribution to the national and regional economy;
2. It is necessary to enhance the added value of the types of business and to realign industries within the relevant industrial complex following changes in industrial conditions, urbanization in the surrounding areas, etc.;
3. It is necessary to maintain, repair, improve and expand the infrastructure, etc. of the relevant decrepit industrial complex to support the management activities of occupant enterprises;
4. Measures for securing necessary financial resources for promoting the project have to be prepared;
5. A council of persons concerned with enhancement of the competitiveness of the relevant hub decrepit industrial complex prescribed in Article 8 or any other council of similar nature has been established, or the occupant enterprises are making sufficient efforts to secure necessary project funds;
6. The plan for promoting the competitiveness enhancement project described in the application for designation is well aligned with the strategic plan;
7. For other reasons, it is urgently necessary to provide support to occupant enterprises and to strengthen the competitiveness of the relevant industrial complex.
(3) Where the persons having authority to establish a strategic plan intends to designate a competitiveness enhancement project zone under paragraph (1), he/she shall undergo deliberation of the Committee.
(4) Where the persons having authority to establish a strategic plan designates a competitiveness enhancement project zone under paragraph (1), he/she shall publicly notify it in the Official Gazette, as prescribed by Presidential Decree.
 Article 13 (Implementation of Competitiveness Enhancement Projects)
(1) The project operator referred to in Article 14 for a competitiveness enhancement project zone designated pursuant to Article 12 shall establish a project plan for enhancing the competitiveness of a hub decrepit industrial complex (hereinafter referred as “project plan”), and obtain an approval therefor from the persons having authority to establish a strategic plan. The same shall apply when amending an approved project plan: Provided, That this shall not apply where minor matters prescribed by Presidential Decree are to be amended.
(2) With respect to matters relating to establishing a project plan, the provisions concerning a structure improvement plan prescribed in Article 45-2 (3) of the Industrial Cluster Development and Factory Establishment Act, and the provisions concerning a renovation plan referred to in Article 39-2 (5) of the Industrial Sites and Development Act shall apply mutatis mutandis. In such cases, the “structure improvement plan” and “renovation plan” shall be construed as the “project plan.”
(3) Where a project plan is approved under paragraph (1), depending on the contents of the project plan, it shall be deemed that a structure improvement plan prescribed in Article 45-2 of the Industrial Cluster Development and Factory Establishment Act is approved or a renovation project district referred to in Article 39-2 of the Industrial Sites and Development Act is designated.
(4) Details concerning the implementation of the project plan prescribed in paragraph (1) shall, depending on the contents of the project plan, be governed by the Act applicable to the relevant project specified in the items of subparagraph 4 of Article 2.
(5) Notwithstanding Article 45-2 (4) 2 of the Industrial Cluster Development and Factory Establishment Act, where the project plan prescribed in paragraph (1) is established, up to 30 percent of the total industrial complex area may be planned to be subject to a structural improvement project.
(6) Where the persons having authority to establish a strategic plan approves a project plan, he/she shall publicly notify such fact, as prescribed by Presidential Decree.
 Article 14 (Project Operators)
(1) A project operator entitled to implement a competitiveness enhancement project shall be as follows:
1. The State or local government;
2. Public institutions prescribed by Presidential Decree;
3. Others prescribed by Presidential Decree.
(2) Where it is deemed necessary to efficiently implement a competitiveness enhancement project, a project operator referred to in paragraph (1) may allow any of the following persons to vicariously and partially implement the competitiveness enhancement project (hereinafter referred to as “implementation agent”), as prescribed by Presidential Decree:
1. Landowner of the relevant competitiveness enhancement project zone;
2. Corporation that a private company satisfying the requirements prescribed by Presidential Decree has established by participating in investing in such corporation for the purpose of the competitiveness enhancement project.
 Article 15 (Legal Fiction of Authorization and Permission under Other Statutes)
(1) Where the persons having authority to establish a strategic plan approves a project plan or any amendment thereto pursuant to Article 13, with regard to matters on which he/she has consulted with the heads of the relevant administrative agencies pursuant to paragraph (3) concerning the following permission, determination, authorization, consultation, approval, etc. (hereafter in this Article referred to as "authorization, permission, etc."), the relevant authorization, permission, etc. shall be deemed obtained for the relevant project plan; and where the approval for the project plan is publicly notified pursuant to Article 13, the authorization, permission, etc. under the relevant Acts shall be deemed publicly notified or publicly announced: <Amended by Act No. 13482, Aug. 11, 2015; Act No. 13797, Jan. 19, 2016; Act No. 13879, Jan. 27, 2016; Act No. 14532, Jan. 17, 2017>
1. Determination of an urban/Gun management plan prescribed in Article 30 of the National Land Planning and Utilization Act (in cases of matters related to designating or changing a specific use area, specific use district, or specific use zone, an approval shall be obtained from the person having authority to designate renovation project districts prescribed in Article 39-7 of the Industrial Sites and Development Act); permission to engage in development activities prescribed in Article 56 of the same Act; designation of the operator of an urban/Gun planning facility project prescribed in Article 86 of the same Act; and authorization of an implementation plan referred to in Article 88 of the same Act;
2. Designation of an urban development zone referred to in Article 3 of the Urban Development Act; designation of a project implementer referred to in Article 11 of the same Act; and authorization of an implementation plan referred to in Article 17 of the same Act;
3. Amendment of an industrial complex development plan referred to in Articles 6 and 7 of the Industrial Sites and Development Act; and approval for an implementation plan for developing a national industrial complex referred to in Articles 17, 17-2, and 18 of the same Act or approval of any amendment thereto;
4. Authorization for a general waterworks project or industrial waterworks project provided for in Articles 17 and 49 of the Water Supply and Waterworks Installation Act; and authorization for installation of exclusive waterworks or exclusive industrial waterworks provided for in Articles 52 and 54 of the same Act;
5. Authorization for installation of public sewerage (only applicable to excreta treatment facilities) provided for in Article 11 of the Sewerage Act; permission to perform public sewerage works provided for in Article 16 of the same Act; and permission to occupy and use public sewerage prescribed in Article 24 of the same Act;
6. Consultations with or approval from a river management authority prescribed in Article 6 of the River Act; amendment to a river master plan and implementation plan for river works referred to in Articles 25 and 27 of the same Act; permission to perform river works and authorization of an implementation plan for river works referred to in Article 30 of the same Act; permission to occupy and use a river referred to in Article 33 of the same Act; and permission to use river water referred to in Article 50 of the same Act;
7. Permission for a person other than a road management agency prescribed in Article 36 of the Road Act to implement road works; permission to occupy and use a road prescribed in Article 61 of the same Act; and consultations with or approval from a road management agency prescribed in Article 107 of the same Act;
8. Permission to construct a private road provided for in Article 4 of the Private Road Act;
9. Permission to convert a mountainous district or reporting of the conversion of a mountainous district prescribed in Article 14 or 15 of the Mountainous Districts Management Act; permission to temporarily use a mountainous district or reporting thereof prescribed in Article 15-2 of the same Act; and approval for change of use of the land which has undergone conversion of a mountainous district prescribed in Article 21 of the same Act;
10. Permission for and reporting on logging, etc. prescribed in Article 36 (1) and (4) of the Creation and Management of Forest Resources Act;
11. Permission for logging, etc. prescribed in Article 14 of the Erosion Control Work Act; and revocation of the designation of a land erosion-control area referred to in Article 20 of the same Act;
12. Examination of the publication of maps, etc. prescribed in Article 15 (3) of the Act on the Establishment, Management, etc. of Spatial Data; and reporting of the commencement, alteration or completion of a project referred to in Article 86 (1) of the same Act;
13. Permission to reinter an unclaimed grave provided for in Article 27 of the Act on Funeral Services;
14. Permission to use administrative property provided for in Article 30 of the State Property Act; and disuse of administrative property provided for in Article 40 of the same Act;
15. Disuse of administrative property provided for in Article 11 of the Public Property and Commodity Management Act; and permission to use or profit from administrative property provided for Article 20 of the same Act;
16. Consultation with the managing authority prescribed in Article 5 of the Small River Maintenance Act; amendment to a comprehensive plan for maintenance of small rivers or plan for implementing the maintenance of small rivers referred to in Articles 6 and 8 of the same Act; permission to execute small river conservation works prescribed in Article 10 of the same Act; permission to occupy and use small rivers prescribed in Article 14 of the same Act;
17. Consultation on energy use programs referred to in Article 10 of the Energy Use Rationalization Act;
18. Authorization of or reporting of a work plan for electrical installations for private use prescribed in Article 62 of the Electric Utility Act;
19. Approval of or reporting of installation of waste disposal facilities referred to in Article 29 of the Wastes Control Act;
20. Building permission referred to in Article 11 of the Building Act; building report referred to in Article 14 of the same Act; revisions to a building permission or building report prescribed in Article 16 of the same Act; permission for and reporting on a temporary structure prescribed in Article 20 of the same Act; consultations on construction prescribed in Article 29 of the same Act; and reporting of erecting a structure provided for in Article 83 (1) of the same Act;
21. Permission to extract aggregate prescribed in Article 22 of the Aggregate Extraction Act;
22. Approval to establish a factory, etc. prescribed in Article 13 of the Industrial Cluster Development and Factory Establishment Act (only applicable where a project operator has included a plan to establish a factory, etc. he/she intends to use);
23. Registration for opening of a superstore referred to in Article 8 of the Distribution Industry Development Act;
24. Consultation on feasibility of supplying integrated energy prescribed in Article 4 of the Integrated Energy Supply Act;
25. Approval for a sports facility business plan provided for in Article 12 of the Installation and Utilization of Sports Facilities Act;
26. Formulation of a housing site development plan provided for in Article 8 of the Housing Site Development Promotion Act; and approval for an implementation plan for a housing site development project provided for in Article 9 of the same Act;
27. Approval for a master plan for public wastewater treatment facilities prescribed in Article 49 of the Water Environment Conservation Act;
28. Designation of a tourist destination and tourist complex prescribed in Article 52 of the Tourism Promotion Act; and formulation and approval for a plan to develop a tourist destination and tourist complex prescribed in Article 54 of the same Act;
29. Permission for a land transaction contract referred to in Article 11 of the Act on Report on Real Estate Transactions.
(2) Where a person intending to obtain the legal fiction of authorization, permission, etc. pursuant to paragraph (1) applies for an approval for a project plan (including approvals for any amendment thereto), he/she shall also submit related documents prescribed by the applicable statutes, in accordance with the project plan, to the persons having authority to establish a strategic plan.
(3) In granting an approval for a project plan (including approval for any amendment thereto), if such project plan contains matters falling under any subparagraph of paragraph (1), the persons having authority to establish a strategic plan shall consult with the heads of the relevant administrative agencies in advance.
(4) The heads of the relevant administrative agencies in receipt of a request for consultation from the persons having authority to establish a strategic plan shall submit his/her opinions within 30 days from the date of receipt of such request, and where matters subject to consultation prescribed in paragraph (3) include issues requiring deliberation by various committees, the heads of the relevant administrative agencies shall undergo deliberation by the relevant committee and engage in consultation based upon the outcome thereof.
 Article 16 (Payment of Cost)
A project operator shall pay the cost required for a competitiveness enhancement project.
 Article 17 (Re-Investment of Development Gains)
(1) A project operator and an implementation agent shall reinvest part of the development gains arising from a competitiveness enhancement project in another competitiveness enhancement project, as prescribed by Presidential Decree.
(2) Where any change to a land use plan or the zoning of districts by use in a competitiveness enhancement project zone results in an increase in the land price, a project operator shall receive contributions equivalent to the increased value and invest them in a competitiveness enhancement project, as prescribed by Presidential Decree: Provided, That this shall not apply where a reinvestment is to be made in a competitiveness enhancement project pursuant to paragraph (1).
 Article 18 (Establishment of Competitiveness Enhancement Project Account)
(1) A project operator (excluding a project operator specified in Article 14 (1) 1; hereinafter through Article 19, the same shall apply) shall establish and operate a competitiveness enhancement project account (hereinafter referred to as “project account”) in order to facilitate the procurement and implementation of funds for a competitiveness enhancement project.
(2) A project account shall be operated using the following financial resources:
1. Development gains prescribed in Article 17 (1);
2. Redemption of the increased value of the land price prescribed in Article 17 (2);
3. Contributions, investments, and loans (including subsidies provided for in Article 22 (2)) received from the government or non-governmental sources;
4. Borrowings;
5. Other income prescribed by Presidential Decree.
(3) A business account shall be used for the following purposes:
1. Cost for survey and research for a competitiveness enhancement project, and for experts or technologies;
2. Cost for establishing a project plan;
3. Cost for establishing, maintaining, operating, etc. industrial complex infrastructure, support facilities and convenience facilities in a competitiveness enhancement project zone;
4. Cost for industrial clustering, developing human resources, and establishing research infrastructure in a competitiveness enhancement project zone;
5. Cost for improving the living conditions and cultural environment for workers in a competitiveness enhancement project zone;
6. Cost for constructing and managing rental housing in a competitiveness enhancement project zone;
7. Cost for building a knowledge industry center in a competitiveness enhancement project zone;
8. Cost for purchasing the sites of factories closed or suspended, etc. in a competitiveness enhancement project zone;
9. Costs necessary for a competitiveness enhancement project;
10. Other matters prescribed by Presidential Decree as necessary for a competitiveness enhancement project.
 Article 19 (Operation of Competitiveness Enhancement Project Account)
(1) A project operator shall operate the assets of a project account separately from other assets.
(2) A project operator may accumulate the remaining funds in a project account not used during the relevant year to use them for a competitiveness enhancement project of the following year.
(3) A project operator may operate surplus funds in a project account in the methods prescribed by Presidential Decree.
 Article 20 (General Project Managers)
(1) For the purpose of promoting a competitiveness enhancement project efficiently, the persons having authority to establish a strategic plan may designate an organization for supporting enhancement of the competitiveness of hub decrepit industrial complexes as a general project manager.
(2) The general project manager designated under paragraph (1) shall exercise general supervision over all competitiveness enhancement projects, as prescribed by Presidential Decree, and regularly report the operation results of a project account and its future operation plan to the government.
 Article 21 (Revocation of Designation of Competitiveness Enhancement Project Zones)
(1) Where all or part of a competitiveness enhancement project zone designated and publicly notified under Article 12 falls under any of the following, the persons having authority to establish a strategic plan may revoke its designation after undergoing deliberation by the Committee:
1. Where a project operator fails to apply for an approval for a project plan within two years after obtaining designation as a competitiveness enhancement project zone;
2. Where a project operator fails to commence a competitiveness enhancement project within one year after obtaining approval for a project plan.
(2) Where the persons having authority to establish a strategic plan revokes designation of a competitiveness enhancement project zone pursuant to paragraph (1), he/she shall notify the relevant project operator, the heads of the relevant central administrative agencies, and the heads of local governments of such fact, and publicly notify the same, as prescribed by Presidential Decree.
CHAPTER V SUPPORT FOR ENHANCEMENT OF COMPETITIVENESS AND SPECIAL CASES OF REGULATION
 Article 22 (Funding)
(1) The State or local governments may provide administrative, financial and financing support to facilitate the implementation of competitiveness enhancement projects.
(2) The State or local governments may provide a subsidy or loan for all or part of the costs necessary for any subparagraph of Article 18 (3) so as to activate competitiveness enhancement projects, as prescribed by Presidential Decree.
(3) The infrastructure prescribed by Presidential Decree, including roads, water supply facilities, electric facilities, etc., shall be supported by the State, local governments, and the suppliers of relevant facilities.
(4) The State or local governments may provide necessary support to the organizations prescribed by Presidential Decree, including corporations, educational and research institutes, business organizations, medical institutions, etc., that relocate to a competitiveness enhancement project zone (hereafter in this paragraph referred to as “corporations, etc.”) or to corporations, etc. that move out of a competitiveness enhancement project zone due to the implementation of a competitiveness enhancement project.
(5) For the purpose of developing a cluster of knowledge-based industries in a competitiveness enhancement project zone, the Minister of Land, Infrastructure and Transport may designate the relevant industrial complex as a knowledge-based industrial cluster zone defined in subparagraph 7 of Article 2 of the Industrial Cluster Development and Factory Establishment Act.
 Article 23 (Reduction of or Exemption from Taxes and Charges)
(1) Where it is necessary to facilitate a competitiveness enhancement project, the State or local governments may reduce or exempt taxes, such as corporate tax, income tax, customs tax, acquisition tax, property tax, etc., as prescribed by the Restriction of Special Taxation Act, the Customs Act, and the Restriction of Special Local Taxation Act.
(2) Where it is necessary to facilitate a competitiveness enhancement project, the State or local governments may reduce or exempt, or may not impose, development charges, environmental improvement charges, infrastructure installation costs, charges for intercity transport in the metropolitan area, and charges for causing traffic congestion, as prescribed by the Restitution of Development Gains Act, the Environmental Improvement Cost Liability Act, the National Land Planning and Utilization Act, the Special Act on the Management of Intercity Transport in Metropolitan Areas, and the Urban Traffic Improvement Promotion Act.
 Article 24 (Private Investment Projects)
The persons having authority to establish a strategic plan may build industrial complex infrastructure as a private investment project, as prescribed in the Act on Public-Private Partnerships in Infrastructure, in order to stimulate competitiveness enhancement projects.
 Article 25 (Special Cases concerning Application of Other Statutes)
(1) Notwithstanding subparagraph 18 of Article 2 and Article 28-5 of the Industrial Cluster Development and Factory Establishment Act, with respect to a competitiveness enhancement project zone, the Minister of Land, Infrastructure and Transport may differently prescribe occupant enterprises and occupant facilities in a project plan, and approve them accordingly. In such cases, the authorized administrators shall reflect such facts in a master plan for the management of the industrial complex referred to in Article 33 of the Industrial Cluster Development and Factory Establishment Act.
(2) Where it is necessary to expand welfare facilities for workers in a competitiveness enhancement project zone, etc., the Minister of Land, Infrastructure and Transport may differently define “ancillary facilities” defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act in a project plan, and approve such facilities accordingly. In such cases, the authorized administrators shall reflect such facts in a master plan for the management of the industrial complex referred to in Article 33 of the Industrial Cluster Development and Factory Establishment Act.
(3) Notwithstanding municipal ordinances of a City/Do that governs a competitiveness enhancement project zone, where it is necessary to activate competitiveness enhancement projects, the Minister of Land, Infrastructure and Transport may approve a project plan (referring to cases where project details described in subparagraph 4 (a) (iii) and (iv) of Article 2 are included therein) by relaxing the application of the building-to-land ratio and the floor area ratio within the maximum limit of each special-purpose area prescribed in Articles 77 and 78 of the National Land Planning and Utilization Act. In such cases, the Mayor/Do Governor or the head of a Si/Gun/Gu shall reflect such facts in a renovation implementation plan referred to in Article 39-7 of the Industrial Sites and Development Act, and approve it accordingly. <Amended by Act No. 13482, Aug. 11, 2015>
ADDENDUM
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 13482, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 13879, Jan. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Act No. 14532, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the date on which they enter into force have yet to arrive, shall enter into force on the date the relevant Act enters into force.
Articles 2 through 7 Omitted.