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HOUSING ACT

Wholly Amended by Act No. 13805, Jan. 19, 2016

Amended by Act No. 13797, Jan. 19, 2016

Act No. 13782, Jan. 19, 2016

Act No. 14093, Mar. 22, 2016

Act No. 14344, Dec. 2, 2016

Act No. 14480, Dec. 27, 2016

Act No. 14476, Dec. 27, 2016

Act No. 14569, Feb. 8, 2017

Act No. 14567, Feb. 8, 2017

Act No. 14793, Apr. 18, 2017

Act No. 14866, Aug. 9, 2017

Act No. 15309, Dec. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to the residential stability of people and the improvement of residential standards by prescribing matters concerning the construction and supply of housing and the management, etc. of housing markets necessary for the creation of pleasant and comfortable living environments.
 Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 15309, Dec. 26, 2017>
1. The term "housing" means all or a portion of a building structured so that members of a household can reside independently from other households for a long term and the land attached thereto, and is classified into detached housing and multi-family housing;
2. The term "detached housing" means housing structured so that one household can reside independently from other households within one building, and the scope and kinds thereof shall be prescribed by Presidential Decree;
3. The term "multi-family housing" means housing structured so that each household that uses all or some of walls, hallways, stairs or other facilities of a building can reside independently from other households within one building, and the kinds and scope thereof shall be prescribed by Presidential Decree;
4. The term "quasi-housing" means non-housing buildings and the land attached thereto, which may be used as residential facilities, and the scope and kinds thereof shall be prescribed by Presidential Decree;
5. The term "national housing" means housing not larger than a national standard housing scale, falling under any of the following:
(a) Housing constructed by the State, local governments, Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act (hereinafter referred to as "Korea Land and Housing Corporation"), or local public corporations established to implement housing projects pursuant to Article 49 of the Local Public Enterprises Act (hereinafter referred to as "local public corporation");
(b) Housing constructed or renovated with funds provided from public finance of the State or local governments, or the Housing and Urban Fund under the Housing and Urban Fund Act (hereinafter referred to as the "Housing and Urban Fund");
6. The term "national standard housing" means housing, the area of which, used only for residential purposes (hereinafter referred to as "area for residential use only"), does not exceed 85 square meters per family or household (in case of an non-urban Eup or Myeon area excluding the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, referring to housing the area of which, for residential use only, does not exceed 100 square meters per family or household). In such cases, methods for the calculation of the area for residential use only shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
7. The term "privately constructed housing" means housing, excluding national housing;
8. The term "rental housing" means housing for rental purposes classified into public rental housing defined in subparagraph 1 (a) of Article 2 of the Special Act on Public Housing and private rental housing defined in subparagraph 1 of Article 2 of the Special Act on Private Rental Housing;
9. The term "land-lease housing for sale" means housing in which a person who implements a construction project of land-lease housing for sale after obtaining approval of the project plan under Article 15 has ownership of land, and persons who purchase housing have ownership of a building, welfare facilities, etc. (a person who purchases a housing unit shall have divided ownership of a building he/she exclusively possesses, and persons who purchase housing shall share the common space of a building, auxiliary buildings and welfare facilities);
10. The term "project operator" means any of the following persons who implement a housing construction project or housing site preparation project after obtaining approval referred to in Article 15:
(a) The State or local governments;
(b) Korea Land and Housing Corporation or local public corporations;
(c) Housing construction project operators or housing site preparation project operators registered pursuant to Article 4;
(d) Other persons who implement housing construction projects or housing site preparation projects pursuant to this Act;
11. The term "housing association" means any of the following associations formed by a large number of members to acquire housing after obtaining approval of a project plan under Article 15 or implement a remodeling project pursuant to Article 66:
(a) Local-based housing association: An association established by residents who reside in an area classified as follows to acquire housing:
(i) Seoul Metropolitan City, Incheon Metropolitan City and Gyeonggi-do;
(ii) Daejeon Metropolitan City, Chungcheongnam-do and Sejong Special Self-Governing City;
(iii) Chungcheongbuk-do;
(iv) Gwangju Metropolitan City and Jeollanam-do;
(v) Jeollabuk-do;
(vi) Daegu Metropolitan City and Gyeongsangbuk-do;
(vii) Busan Metropolitan City, Ulsan Metropolitan City and Gyeongsangnam-do;
(viii) Gangwon-do;
(ix) Jeju Special Self-Governing Province;
(b) Workplace-based housing association: An association established by workers in the same workplace for the purpose of acquiring housing;
(c) Housing remodeling association: An association established by the owners of multi-family housing to remodel such multi-family housing;
12. The term "housing complex" means a group of land tracts used for the construction of housing, its appurtenant facilities and welfare facilities, or the preparation of a housing site after obtaining approval of a housing construction project plan or housing site preparation project plan referred to in Article 15: Provided, That land separated by the following facilities shall be deemed a separate housing complex, respectively:
(a) Railroads, expressways, or motorways;
(b) General roads with a width of at least 20 meters;
(c) Planned roads with a width of at least 8 meters in an urban plan;
(d) Facilities prescribed by Presidential Decree, which correspond to those referred to in items (a) through (c);
13. The term "appurtenant facilities" means any of the following facilities or equipment attached to housing:
(a) Parking lots, a management office, fences, and roads within a housing complex;
(b) Building equipment defined in Article 2 (1) 4 of the Building Act;
(c) Facilities or equipment prescribed by Presidential Decree, which correspond to facilities or equipment provided for in items (a) and (b);
14. The term "welfare facilities" means any of the following common facilities, located in a housing complex for the life and welfare of residents, etc.:
(a) Children's playgrounds, neighboring living facilities, kindergartens, residents' sports facilities, and a hall for senior citizens;
(b) Other common facilities prescribed by Presidential Decree for the life and welfare of residents, etc.;
15. The term "infrastructure" means infrastructure defined in subparagraph 6 of Article 2 of the National Land Planning and Utilization Act;
16. The term "key facilities" means roads, water supply systems, sewerage systems, electrical facilities, gas facilities, communications facilities, district heating facilities, etc.;
17. The term "arterial facilities" means facilities which connect key facilities within a housing complex (where at least two housing complexes are simultaneously developed, referring to each housing complex), such as roads; water supply systems; sewerage systems; electrical facilities; gas facilities; communications facilities; district heating facilities, etc. to key facilities of the same kind outside such housing complex: Provided, That, in cases of gas facilities, communications facilities and district heating facilities, key facilities within the housing complex shall be included;
18. The term "section of construction works" means a group of areas divided into at least two sections in compliance with standards prescribed by Presidential Decree within one housing complex, the reporting on the commencement of construction works and pre-use inspections for which may be separately implemented;
19. The term “multi-household units in multi-family housing” means a housing unit constructed in compliance with construction standards, area standards, etc. prescribed by Presidential Decree, a portion of the inner space of which is structured for each household to live separately, where the ownership of a portion cannot be shared;
20. The term "urban residential housing" means housing prescribed by Presidential Decree on a national standard housing scale with less than 300 households;
21. The term "energy-saving eco-friendly housing" means housing constructed in a way that energy consumption or carbon dioxide emissions can be reduced using technologies prescribed by Presidential Decree, such as low-energy building technologies, and the kinds and scope thereof shall be prescribed by Presidential Decree;
22. The term "health-friendly housing" means housing constructed in compliance with standards prescribed by Presidential Decree in a way that pollutants, etc. of indoor air may be minimized to create a healthy and pleasant indoor environment;
23. The term "long-lasting housing" means housing which has a durable structure that can be maintained and managed for a long time, whose variability allowing easy alteration of internal structures as residential demand and ease of repair are excellent;
24. The term "public housing site" means a site developed and prepared through any of the following public projects, where multi-family housing is constructed:
(a) A national housing construction project or housing site preparation project under Article 24 (2);
(b) A housing site development project under the Housing Site Development Promotion Act: Provided, That the foregoing shall not apply to any housing site utilized by a housing construction project operator, etc. under Article 7 (1) 4 of the aforesaid Act pursuant to Article 12 (5) of the aforesaid Act;
(c) An industrial complex development project under the Industrial Sites and Development Act;
(d) A public housing zone development project under the Special Act on Public Housing;
(e) A development project for private rental housing supply promotion district under the Special Act on Private Rental Housing (only applicable to a project which the project operator falling under Article 23 (1) 2 of the aforesaid Act implements by means of expropriation or use under Article 34 of the aforesaid Act);
(f) An urban development project under the Urban Development Act (only applicable to a project which the project operator falling under Article 11 (1) 1 through 4 of the aforesaid Act implements by means of expropriation or use under Article 21 of the aforesaid Act and a project which the aforesaid project operator implements in a zone to which a means of mixing expropriation and use is applied);
(g) A free economic zone development project under the Special Act on Designation and Management of Free Economic Zones (only applicable to a project implemented by means of expropriation or use and a project implemented in a zone to which a means of mixing expropriation and use is applied);
(h) An innovation city development project under the Special Act on the Construction and Development of Innovation Cities;
(j) A project prescribed by Presidential Decree among public works projects referred to in Article 4 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects;
25. The term "remodeling" means any of the following acts to prevent the deterioration of a building or to improve the functions thereof pursuant to Article 66 (2) and (3):
(a) A large repair;
(b) Expanding multi-family housing in which case 15 years (where the number of years is prescribed by Ordinance of the Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province (hereinafter referred to as "City/Do") between 15 and 20 years, referring to such number of years) have elapsed from the date of a pre-use inspection (where temporary use of all multi-family housing in the housing complex is approved, referring to the date of approval for such temporary use) under Article 49 or the date of approval for the use thereof under Article 22 of the Building Act within 30 percent (where the area of a household for residential use only is less than 85 square meters, within 40 percent) of the area of each household for residential use only (referring to the area of a space each household occupies exclusively, on a collective building register of the building registers under Article 38 of the Building Act). In such cases, any portion in common use may also be expanded separately to improve the functions of multi-family housing;
(c) Increasing the number of households within 15 percent of the existing number of households within the aggregate of areas of all households under item (b) that may be expanded (hereinafter referred to as "remodeling to increase the number of households"): Provided, That increasing the number of stories (hereinafter referred to as "remodeling to increase the number of stories") shall be limited to cases where all of the following requirements are met:
(i) Not more than three stories shall be added within the scope prescribed by Presidential Decree;
(ii) Requirements prescribed by Presidential Decree, such as the possession of blueprints of the building subject to remodeling, shall be met;
26. The term "master plan for remodeling" means a plan to be formulated to systematically control urban overcrowding, simultaneous relocations, etc. due to remodeling projects to increase the number of households;
27. The term "residents" means any of the following persons:
(a) In cases falling under Articles 8, 54, 88, 91, and 104: Persons provided with housing;
(b) In cases falling under Article 66: The housing owners, or their spouses and lineal ascendants or descendants representing such owners;
28. The term "users" means users defined in subparagraph 6 of Article 2 of the Multi-Family Housing Management Act;
29. The term "management body" means a management body defined in subparagraph 10 Article 2 of the Multi-Family Housing Management Act.
 Article 3 (Relationship to other Acts)
Except as otherwise expressly prescribed by other Acts, this Act shall apply to the construction and supply of housing.
CHAPTER II CONSTRUCTION, ETC. OF HOUSING
SECTION 1 Housing Construction Project Operators, etc.
 Article 4 (Registration of Housing Construction Projects, etc.)
(1) Each person, who intends to implement a housing construction project with at least the number of housing units prescribed by Presidential Decree each year, or who intends to implement a housing site preparation project on at least the area prescribed by Presidential Decree each year, shall be registered by the Minister of Land, Infrastructure and Transport: Provided, That the foregoing shall not apply to the following project operators:
1. The State or local governments;
2. Korea Land and Housing Corporation;
3. Local public corporations;
4. Public interest corporations established to implement housing construction projects pursuant to Article 4 of the Act on the Establishment and Operation of Public Interest Corporations;
5. Housing associations established pursuant to Article 11 (only applicable to housing associations which implement a housing construction project jointly with a registered project operator pursuant to Article 5 (2));
6. Persons who employ workers (only applicable to employers who implement a housing construction project jointly with a registered project operator pursuant to Article 5 (3); hereinafter referred to as "employers").
(2) Necessary matters concerning standards, procedures, methods, etc. for registration relating to capital, technical human resources and the area of office space of a project operator who must be registered under paragraph (1) shall be prescribed by Presidential Decree.
 Article 5 (Joint Project Operators)
(1) Where a landowner constructs housing, notwithstanding Article 4 (1), he/she may implement a project jointly with a person registered pursuant to Article 4 (hereinafter referred to as "registered project operator"), as prescribed by Presidential Decree. In such cases, the landowner and the registered project operator shall be deemed joint project operators.
(2) Where a housing association established pursuant to Article 11 (excluding a housing remodeling association which does not increase the number of households) constructs housing for its members, it may implement a project jointly with a registered project operator (including a local government; the Korea Land and Housing Corporation; and a local public corporation), as prescribed by Presidential Decree. In such cases, the housing association and the registered project operator shall be deemed joint project operators.
(3) Where an employer constructs housing for his/her employees, he/she shall implement a project jointly with a registered project operator, as prescribed by Presidential Decree. In such cases, the employer and the registered project operator shall be deemed joint project operators.
(4) The specific apportionment, etc. of duties, expenses, and responsibilities between joint project operators referred to in paragraphs (1) through (3) shall be prescribed by an agreement between the parties within the scope prescribed by Presidential Decree.
 Article 6 (Grounds for Disqualification of Registered Project Operators)
None of the following persons shall be registered as a housing construction project operator, etc. under Article 4:
1. A minor; a person under adult guardianship; and a person under limited guardianship;
2. A person declared bankrupt who has not yet been reinstated;
3. A person in whose case two years have not elapsed from the date the execution of a sentence was completed (including where the execution thereof is deemed completed) or exempted after he/she had been sentenced to imprisonment without prison labor or heavier punishment for violating the Illegal Check Control Act or this Act;
4. A person granted a stay of execution after he/she was issued a suspended sentence of the execution of imprisonment without prison labor or heavier punishment for violating the Illegal Check Control Act or this Act;
5. A person in whose case two years have not elapsed after his/her registration was cancelled (excluding where his/her registration was cancelled because he/she fell under subparagraph 1 or 2 of Article 6) pursuant to Article 8;
6. A corporation, any of whose executive officers falls under any of subparagraphs 1 through 5.
 Article 7 (Performance of Construction Works by Registered Project Operators)
(1) Where a registered project operator constructs housing for sale or rental purposes with approval of a project plan under Article 15 (including a building permit for multi-family housing under the Building Act), and satisfies the standards prescribed by Presidential Decree for technical capability, housing construction records, the size of housing, etc., he/she shall be deemed a contractor under Article 9 of the Framework Act on the Construction Industry, and he/she may perform housing construction works.
(2) Where a registered project operator constructs housing pursuant to paragraph (1), Articles 40, 44, 93, 94, and 98 through 100, 100-2 and 101 of the Framework Act on the Construction Industry shall apply mutatis mutandis. In such cases, "contractor" shall be construed as "registered project operator."
 Article 8 (Deregistration, etc. of Housing Construction Projects)
(1) Where a registered project operator falls under any of the following, the Minister of Land, Infrastructure and Transport may cancel his/her registration or order him/her to suspend his/her business for a fixed period not exceeding one year: Provided, That, where he/she falls under subparagraph 1 or 5, his//her registration shall be cancelled:
1. Where he/she obtains registration by deceptive or other wrongful means;
2. Where he/she fails to meet requirements for registration under Article 4 (2): Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree, such as where a court orders commencement of rehabilitation procedures under the Debtor Rehabilitation and Bankruptcy Act and such procedures are underway, or he/she temporarily fails to meet requirements for registration;
3. Where he/she causes harm to the public or damage to property of residents by inadequately performing construction works, willfully or by negligence;
4. Where he/she falls under any of subparagraphs 1 through 4 or subparagraph 6 of Article 6: Provided, That the foregoing shall not apply where any executive officer of the corporation falls under subparagraph 6 of Article 11 and a new executive officer is appointed to replace the aforesaid executive officer within six months;
5. Where he/she lends his/her registration certificate, in violation of Article 90;
6. Where he/she falls under any of the following:
(a) Where he/she neglects his/her duty to prepare shop drawings under Article 48 (4) of the Construction Technology Promotion Act, or performs construction works without undergoing examination or confirmation by an architectural engineer or a construction supervisor who manages the relevant construction project;
(b) Where he/she fails to comply with an order to make any corrections under Article 54 (1) or 80 of the Construction Technology Promotion Act;
(c) Where he/she fails to undergo a quality test and inspection under Article 55 of the Construction Technology Promotion Act;
(d) Where he/she fails to conduct a safety inspection under Article 62 of the Construction Technology Promotion Act;
7. Where he/she resells a housing site, in violation of Article 19-2 (1) of the Housing Site Development Promotion Act;
8. Where he/she is punished pursuant to subparagraph 1 of Article 17 of the Act on Fair Labeling and Advertising;
9. Where he/she is subject to a disposition taken under Article 34 (2) of the Act on the Regulation of Terms and Conditions;
10. Where he/she violates this Act, any order or disposition under this Act.
(2) Standards concerning de-registration and the suspension of business under paragraph (1) shall be prescribed by Presidential Decree.
 Article 9 (Implementation of Projects by Deregistered Persons)
A deregistered project operator or a registered project operator whose business has been suspended pursuant to Article 8 may continuously implement a project for which he/she obtained approval of a project plan under Article 15 before he/she has been subject to such disposition: Provided, That the foregoing shall not apply where a deregistered project operator is prohibited from continuously implementing the project due to a serious and obvious mistake.
 Article 10 (Submission of Details of Business Performance, etc.)
(1) A registered project operator shall submit details of his/her business performance (where a project operator who is a sole proprietor has established a corporation by investing assets for business purposes, which he/she has used for the relevant business for at least one year, in kind, they mean details of business performance of the corporation including the business performance of the sole proprietor; where he/she is newly registered after being deregistered, they mean details of the business performance after having been newly registered); his/her business plan; and the current status of technical human resources to the Minister of Land, Infrastructure and Transport each year, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) A registered project operator shall report a monthly housing sales plan and monthly sales results to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
SECTION 2 Housing Associations
 Article 11 (Establishment, etc. of Housing Associations)
(1) Where a large number of members intends to establish a housing association (excluding a workplace-based housing association to be established under paragraph (5)) to acquire housing or implement a remodeling project, the aforesaid members shall obtain approval to establish the housing association from the competent Special Metropolitan City Mayor, the competent Special Self-Governing Province Governor, or the head of the competent Si/Gun/Gu (in cases of the head of a Gu, referring to the head of an autonomous Gu; hereinafter referred to as "head of the competent Si/Gun/Gu"). The same shall also apply where the aforesaid members intend to modify any matters approved, or to dissolve the housing association.
(2) Any person, who intends to obtain approval to establish a housing association to acquire housing pursuant to paragraph (1), shall obtain a right to use land that constitutes at least 80 percent of a site for the construction of the relevant housing: Provided, That, in cases falling under the latter part of paragraph (1), the foregoing shall not apply.
(3) Any person, who intends to establish a housing association to remodel housing pursuant to paragraph (1), shall submit an application for approval to establish the housing association to the head of the competent Si/Gun/Gu along with documents verifying a resolution passed by the owners of sectioned property (referring to the sectional title owners defined in subparagraph 2 of Article 2 of the Act on Ownership and Management of Condominium Buildings; hereinafter the same shall apply) and the voting rights (referring to the voting rights prescribed in Article 37 of the Act on Ownership and Management of Condominium Buildings; hereinafter the same shall apply) under the following classifications, and shall obtain approval from the head of the competent Si/Gun/Gu:
1. In cases of the remodeling of the whole housing complex, a resolution passed by at least two-thirds of the owners of sectioned property of the whole housing complex and the voting rights, respectively, and a resolution of a majority of the owners of sectioned property of each building and the voting rights, respectively;
2. In cases of the remodeling of a building, a resolution passed by at least two-thirds of the owners of sectioned property of such building and the voting rights, respectively.
(4) Where a housing association and a registered project operator jointly implement a project to perform construction works pursuant to Article 5 (2), the registered project operator shall compensate the members of the housing association for damages caused by the impracticability of or delay in the implementation of the project, not only due to his/her responsibility as a contractor but also for reasons attributable to him/her.
(5) Any person, who intends to establish a workplace-based housing association to supply national housing, shall submit a report to the head of the competent Si/Gun/Gu. The same shall apply where he/she intends to modify any matters reported or to dissolve the workplace-based housing association.
(6) A housing association (excluding a housing remodeling association) may supply housing constructed for its members to its members first and, for a workplace-based housing association under paragraph (5), a project operator may supply national housing to the members of the workplace-based housing association first.
(7) Necessary matters concerning methods and procedures for the establishment of a housing association approved pursuant to paragraph (1); criteria for qualification of members of the housing association; expulsion from the housing association and withdrawal of membership thereof; and the operation, management, etc. of the housing association; and necessary matters concerning requirements for the establishment of a workplace-based housing association under paragraph (5); and procedures for submitting a report, etc. shall be prescribed by Presidential Decree: Provided, That where a local-based housing association approved pursuant to paragraph (1) to be established in a high-speculation area designated under Article 63 (1) selects its members, the said association shall not approve the status of its members in the order applications received. <Amended by Act No. 14344, Dec. 2, 2016>
(8) Notwithstanding paragraph (7), any member of a housing association may withdraw his/her membership of the housing association by indicating his/her intention for withdrawal as prescribed by the housing association's bylaws. <Amended by Act No. 14344, Dec. 2, 2016>
(9) Any member of a housing association who has withdrawn his/her membership (including any expelled member) may claim the refund of the expenses he/she has borne, as prescribed by the housing association's bylaws. <Amended by Act No. 14344, Dec. 2, 2016>
 Article 11-2 (Outsourcing, etc. Work of Housing Association)
(1) A housing association (excluding any housing remodeling association) and the members thereof (including promoters of the housing association) shall outsource its work, such as recommendation for joining the membership, only to a registered project operator with whom the housing association jointly implements a housing project under Article 5 (2) or to any of the following persons: <Amended by Act No. 14567, Feb. 8, 2017>
1. A registered project operator;
2. A real estate agent described in Article 9 of the Licensed Real Estate Agents Act;
3. A business entity specialized in management services for rearrangement projects under Article 102 of the Act on the Improvement of Urban Areas and Residential Environments;
5. A trust business entity described in the Financial Investment Services and Capital Markets Act;
6. Other persons prescribed by Presidential Decree, who have been registered under any other Act.
(2) The scope of work of an outsourcee under paragraph (1) shall be as follows:
1. Work concerning establishing an housing association, such as recruiting members thereof, securing land, and filing an application for establishment approval;
2. Reviewing project feasibility and preparing a project plan;
3. Assisting in selecting an architect or contractor;
4. Work concerning approval of a project plan, such as filing an application for approval of a project plan under Article 15;
5. Other work prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as supporting the operation of general meetings.
(3) Any person to whom the work of a housing association are outsourced pursuant to paragraphs (1) and (2) shall perform the relevant work earnestly in good faith; shall not mislead or delude people into joining the housing association; and shall compensate the housing association or members thereof for damage caused by his/her fault, if any.
(4) To seamlessly promote projects of housing associations and to protect rights of the members of housing associations, the Minister of Land, Infrastructure and Transport may formulate and disseminate a Standard Form Contract for Outsourcing, following consultation by the Chairperson of the Fair Trade Commission.
[This Article Newly Inserted by Act No. 14344, Dec. 2, 2016]
 Article 11-3 (Report on Recruitment of Members of Housing Association and Open Invitation)
(1) Any person, who intends to recruit members of a local-based housing association or workplace-based housing association to obtain approval to establish the housing association or to modify any approved matters pursuant to Article 11 (1), shall file a report thereon with the head of the competent Si/Gun/Gu, and recruit the members of the housing association through an open invitation. The same shall also apply to any modification of the matters reported before obtaining approval for the establishment of the housing association.
(2) Notwithstanding paragraph (1), where any vacancy needs to be filled due to a death, disqualification, withdrawal of membership, etc. of a housing association's member or where an insufficient number of members have been recruited after an open invitation, members of the housing association may be recruited in the order of application, without filing a report.
(3) Matters necessary for filing a report on recruitment of members of a housing association, such as the timing of recruitment and methods and procedures for recruitment under paragraph (1), open invitations, disclosure of information on applicants for joining a housing association, etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(4) The head of a Si/Gun/Gu in receipt of a report under paragraph (1) shall accept the report where the reported matters are consistent with this Act and notify the person who has filed the report, of such acceptance.
(5) In any of the following circumstances, the head of a Si/Gun/Gu need not accept a report on recruitment of members of a housing association:
1. Where the housing construction site overlaps, in whole or in part, with the one already reported;
2. Where no housing can be built on the relevant housing construction site, in accordance with an urban or Gun plan already formulated or to be formulated, a land use plan already formulated, or based on the standards for construction, limitation on construction, etc. under this Act or related statutes;
3. Where any reported matter violates statutes, such as entering into an outsourcing contract with a person other than persons entitled under Article 11-2 (1);
4. Where any reported matter is different from the fact.
[This Article Newly Inserted by Act No. 14344, Dec. 2, 2016]
 Article 12 (Disclosure of Relevant Documents and Information)
(1) Promoters or executive officers of a housing association shall disclose the following documents and information concerning the implementation of a housing construction project by posting them on the website, along with other means so that members of the housing association can become aware of the preparation or modification of such documents and relevant information within 15 days thereafter:
1. The housing association's bylaws;
2. An agreement on the selection of a joint project operator and an agreement the housing association enters into with a registered project operator who is the joint project operator;
3. An agreement on the selection of service providers, such as an architect;
4. Minutes of the general meeting, meetings of the board of directors, meetings of the board of representatives, etc. of the housing association;
5. A project implementation plan;
6. Official documents concerning the implementation of the relevant housing association's project;
7. The auditor's report;
8. Other documents and relevant information prescribed by Presidential Decree concerning the implementation of the housing association's project.
(2) Where any member of a housing association requests the access to or reproduction of any document or information concerning the implementation of the housing association's project, including documents provided for in paragraph (1) and the following documents or information, a promoter or an executive officer of the housing association shall comply with such request within 15 days. In such cases, expenses incurred in reproducing documents shall be borne by a person who makes the request, based on actual expenses:
1. A list of members of the housing association;
2. Information related to securing land, such as a consent to use land;
3. Other documents and information prescribed by Presidential Decree.
(3) Documents and information referred to in paragraphs (1) and (2) shall be disclosed, accessed, or reproduced in accordance with the Personal Information Protection Act, and other necessary matters, such as procedures for disclosure, shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 13 (Grounds for Disqualification of Executive Officers of Housing Associations)
(1) None of the following persons shall become an executive officer of a housing association:
1. A minor; a person under adult guardianship; and a person under limited guardianship;
2. A person declared bankrupt who has not yet been reinstated;
3. A person in whose case two years have not elapsed from the date the execution of a sentence was completed (including where the execution thereof is deemed completed) or exempted after he/she had been sentenced to imprisonment without prison labor or heavier punishment;
4. A person granted a stay of execution after he/she was issued a suspended sentence of imprisonment without prison labor or heavier punishment;
5. A person given a deferred sentence of imprisonment without prison labor or heavier punishment who serves probation;
6. A person who is disqualified or whose qualification is suspended according to a decision by a court or pursuant to another Act;
7. An executive officer or employee of a registered project operator who is a joint project operator with the relevant housing association or an outsourcee company.
(2) Where any ground prescribed in paragraph (1) arises, the relevant executive officer shall resign as a matter of course.
(3) Any decision for which an executive officer who resigns pursuant to paragraph (2) is involved before he/she resigns shall remain in effect.
 Article 14 (Supervision, etc. of Housing Associations)
(1) Where the Minister of Land, Infrastructure and Transport or the head of a Si/Gun/Gu deems it particularly necessary to maintain orderly supply of housing, he/she may verify matters necessary for qualification, etc. of members of a housing association using the administrative computer networks, etc. managed by the State.
(2) Where a housing association or any of its members falls under any of the following, the head of a Si/Gun/Gu may revoke approval of the housing association:
1. Where the housing association obtains approval for the establishment thereof by deceptive or other wrongful means;
2. Where the housing association or any of its members violates an order or disposition issued under Article 94.
(3) A housing association shall undergo an audit, as prescribed by Presidential Decree, and report the results of the audit to the head of the competent Si/Gun/Gu, and allow members of the relevant housing association to access to the report, such as posting it on the website.
 Article 14-2 (Guarantee of Completion of Housing Association's Project)
(1) Where a housing association selects a contractor who is a joint project operator, the contractor shall submit to the housing association a guarantee of project completion issued by an institution prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to guarantee completion of the housing association's project (referring to guaranteeing that, if the contractor fails to complete the housing project under the contract or fails to perform his/her obligations, the guarantor bears the obligation to perform the contract on behalf of the contractor or pays the amount of money determined by the housing association, which will be at least the percentage prescribed by Presidential Decree within the limit of 50 percent of the total construction costs).
(2) Upon receipt of a report on commencement of construction works under Article 16 (2), a person authorized to approve a project plan under Article 15 shall verify whether a guarantee of project completion is submitted pursuant to paragraph (1).
[This Article Newly Inserted by Act No. 14344, Dec. 2, 2016]
SECTION 3 Approval, etc. of Project Plans
 Article 15 (Approval of Project Plans)
(1) Any person, who intends to implement a housing construction project with at least the number of housing units prescribed by Presidential Decree or who intends to implement a housing site preparation project on at least the area prescribed by Presidential Decree, shall obtain approval of a project plan from any of the following persons authorized to approve a project plan (hereinafter referred to as "person authorized to approve project plans"; where the State or the Korea Land and Housing Corporation implements a housing construction project, and in cases prescribed by Presidential Decree, referring to the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article and Articles 16 through 19 and 21): Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree, such as where the person constructs housing and non-housing facilities in the shape of the same building:
1. Where the area of the relevant site for the housing construction project or the housing site preparation project is at least 100,000 square meters: The Special Metropolitan City Mayor; a Metropolitan City Mayor; a Special Self-Governing City Mayor; a Do Governor; or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") or the Mayor of a large city with a population of at least 500,000 (hereinafter referred to as "large city"), excluding the Seoul Metropolitan City, Metropolitan Cities and Special Self-Governing Cities pursuant to Article 175 of the Local Autonomy Act;
2. Where the area of the relevant site for the housing construction project or the housing site preparation project is less than 100,000 square meters: The Special Metropolitan City Mayor; a Metropolitan City Mayor; a Special Self-Governing City Mayor; a Special Self-Governing Province Governor; or the head of a Si/Gun.
(2) Any person who intends to obtain approval of a project plan pursuant to paragraph (1) shall submit an application for approval of the project plan to a person authorized to approve the project plan, along with documents prescribed by Presidential Decree, such as a plot plan of housing, facilities attached thereto and welfare facilities, and design documents for site preparation works.
(3) Any person who intends to implement a housing construction project may construct and supply housing by partitioning the relevant housing complex with at least the number of housing units prescribed by Presidential Decree into sections of construction works. In such cases, he/she shall submit an application for approval of a project plan to a person authorized to approve the project plan, along with documents referred to in paragraph (2) and the following documents, and obtain approval of the project plan:
1. A project plan for each section of construction works;
2. A plan to recruit residents;
3. A plan for pre-use inspections.
(4) Where a person intends to modify a project plan approved pursuant to paragraph (1) or (3), he/she shall obtain approval for such modification from a person authorized to approve project plans: Provided, That the foregoing shall not apply where he/she modifies any insignificant matter prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(5) A project plan under paragraph (1) or (3) shall be formulated so that it may be appropriate for residents to enjoy a pleasant and cultural residential life, and the project plan shall include a plan, etc. to install appurtenant facilities and welfare facilities.
(6) Where a person authorized to approve project plans approves the project plan pursuant to paragraph (1) or (3), he/she shall announce matters related thereto. In such cases, the Minister of Land, Infrastructure and Transport shall immediately send a copy of the letter of approval of the project plan and relevant documents to the head of the competent Si/Gun/Gu, and the Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Governor of a Do, to the head of the competent Si/Gun/Gu, respectively.
 Article 16 (Implementation of Project Plans and Revocation of Approval thereof)
(1) A project operator shall implement a project in accordance with a project plan approved pursuant to Article 15 (1) or (3) and commence construction works according to the following classification: Provided, That where a person authorized to approve project plans deems that justifiable grounds prescribed by Presidential Decree exist, he/she may extend the period for the commencement of construction works under subparagraph 1 or 2 (a) at the request of the project operator within one year from the date such grounds cease to exist:
1. Where the project operator obtains approval pursuant to Article 15 (1): Within five years from the date he/she obtains approval;
2. Where the project operator obtains approval pursuant to Article 15 (3):
(a) The section of construction works where the first stage of construction works is performed: Within five years from the date he/she obtains approval;
(b) Sections of construction works other than the section of construction works where the first stage of construction works is performed: Within two years from the date he/she reports the commencement of construction works of the relevant housing complex.
(2) Where a project operator intends to commence construction works pursuant to paragraph (1), he/she shall report the commencement of construction works to a person authorized to approve project plans, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) Where a project operator falls under any of the following, a person authorized to approve project plans may revoke his/her approval of the project plan (where the project operator falls under subparagraph 2 or 3, a project for which the sale of housing has been guaranteed pursuant to Article 26 of the Housing and Urban Fund Act shall be excluded):
1. Where the project operator fails to commence construction works, in violation of paragraph (1) (excluding subparagraph 2 (b));
2. Where the project operator loses ownership of the site due to an auction, public sale, etc.;
3. Where it is impossible to complete construction works due to insolvency, bankruptcy, etc. of the project operator.
(4) Where a person authorized to approve project plans intends to revoke approval of a project plan on a ground specified in paragraph (3) 2 or 3, he/she shall determine whether he/she revokes such approval after evaluating the feasibility of a plan to normalize the project, including matters prescribed by Presidential Decree submitted by the project operator, such as a plan to implement the project plan and a financing plan.
(5) Notwithstanding paragraph (3), where a contractor, etc. of the relevant project secures ownership, etc. of the site for the relevant housing construction works under Article 21 (1) and requests approval to modify the project plan under Article 15 (4) from a person authorized to approve such project plan so that he/she replaces a project operator, the person authorized to approve the project plan may grant such approval.
 Article 17 (Donation of Infrastructure)
(1) Where a person authorized to approve project plans approves the project plan pursuant to Article 15 (1) or (3), he/she shall not request a project operator to include the donation of infrastructure not directly related to the relevant housing construction project or housing site preparation project, or excessive infrastructure in the project plan.
(2) The Minister of Land, Infrastructure and Transport may establish and publicly announce standards for operation, including the following in relation to donation, etc.:
1. Matters concerning the principle and level of the donation of infrastructure of a housing construction project;
2. Matters concerning standards, etc. for construction of infrastructure of a housing construction project.
(3) A person authorized to approve project plans may establish and operate separate standards suitable to the actual circumstances, in consideration of the regional conditions and the characteristics of the project within the scope of standards for operation under paragraph (2). In such cases, he/she shall report the separate standards to the Minister of Land, Infrastructure and Transport in advance.
 Article 18 (Integrated Review, etc. of Project Plans)
(1) If deemed necessary, a person authorized to approve project plans may examine and deliberate on the following matters related to approval of a project plan, such as urban planning, architecture and traffic, by integrating them (hereinafter referred to as "integrated review"):
1. Architectural design review under the Building Act;
2. Matters related to urban/Gun management planning and development activities under the National Land Planning and Utilization Act;
3. Measures to improve intercity transport under the Special Act on the Management of Intercity Transport in Metropolitan Areas;
4. Traffic impact assessment under the Urban Traffic Improvement Promotion Act:
5. Landscape review under the Landscape Act;
6. Other matters referred by the person authorized to approve project plans for integrated review.
(2) Where a person who intends to obtain approval of a project plan files an application for integrated review pursuant to Article 15 (1) or (3), he/she shall submit such application, along with documents related to paragraph (1). In such cases, where it is necessary to efficiently conduct an integrated review, a person authorized to approve project plans may require an applicant to submit an application by fixing a deadline for submission.
(3) A person authorized to approve project plans, shall conduct an integrated review by establishing a joint committee comprised of members who belong to any of the following committees and are recommended by the chairperson of the relevant committee, and public officials of a local government to which the person authorized to approve project plans belongs:
1. The Cental Building Committee or a regional building committee established under the Building Act;
2. A regional urban planning committee of a City/Do in which the relevant housing complex is located, established under the National Land Planning and Utilization Act;
3. The National Traffic Committee that has the authority to conduct reviews on measures to improve intercity transport pursuant to the Special Act on the Management of Intercity Transport in Metropolitan Areas;
4. The Traffic Impact Assessment Deliberative Committee established under the Urban Traffic Improvement Promotion Act;
5. The Landscape Committee established under the Landscape Act;
6. Relevant committees authorized to review matters referred to in paragraph (1) 6.
(4) Where a person authorized to approve project plans conducts an integrated review, he/she shall approve the project plan by reflecting the findings of the integrated review, except in extenuating circumstances.
(5) Where a person who intends to obtain approval of a project plan has undergone an integrated review, he/she shall be deemed to have undergone review, deliberation, examination, consultation, adjustment or decision on matters referred to in paragraph (1).
 Article 19 (Authorization, Permission, etc. Deemed Granted under other Acts)
(1) With regard to matters on which a person authorized to approve project plans has consulted with the heads of related administrative agencies under paragraph (3) in relation to the following permission, authorization, determination, approval, reporting, etc. (hereinafter referred to as "authorization, permission, etc.") when he/she approves a project plan or approves amendment to the project plan, authorization, permission, etc. on such matters shall be deemed granted; and approval of a project plan shall be deemed announced under the following relevant Acts: <Amended by Act No. 13797, Jan 19, 2016; Act No. 14480, Dec. 27, 2016>
1. A building permit under Article 11 of the Building Act; a report on construction under Article 14 of the aforesaid Act; amendment to matters permitted or reported under Article 16 of the aforesaid Act; and a building permit or a report on construction of a temporary building under Article 20 of the aforesaid Act;
2. An examination for the publication of maps, etc. under Article 15 (3) of the Act on the Establishment, Management, etc. of Spatial Data;
3. Permission to occupy or use public waters under Article 8 of the Public Waters Management and Reclamation Act; consultation or approval under Article 10 of the aforesaid Act; approval of or a report on an implementation plan to occupy or use public waters under Article 17 of the aforesaid Act; a license to reclaim public waters under Article 28 of the aforesaid Act; consultation on or approval for reclamation to be implemented by the State, etc. under Article 35 of the aforesaid Act; and approval of an implementation plan to reclaim public waters under Article 38 of the aforesaid Act;
4. Approval of a mining plan under Article 42 of the Mining Industry Act;
5. Determination of an urban/Gun management plan under Article 30 of the National Land Planning and Utilization Act (only applicable to district unit planning zones and district unit plans under Article 51 (1) of the aforesaid Act among plans under subparagraph 4 (c) and (e) of Article 2 of the aforesaid Act); permission to conduct development activities under Article 56 of the aforesaid Act; designation of an operator of an urban/Gun planning facility project under Article 86 of the aforesaid Act; approval of an implementation plan under Article 88 of the aforesaid Act; permission to conclude a land transaction contract under Article 118 of the aforesaid Act; and permission to access a third person’s land under Article 130 (2) of the aforesaid Act;
6. Permission to use agricultural infrastructure under Article 23 of the Agricultural and Fishing Villages Improvement Act;
7. Permission to use farmland for another purpose or consultation on the use of farmland for another purpose under Article 34 of the Farmland Act;
8. Permission to perform road works under Article 36 of the Road Act; and permission to occupy and use a road under Article 61 of the aforesaid Act;
9. Designation of an urban development zone under Article 3 of the Urban Development Act; designation of an operator under Article 11 of the aforesaid Act; approval of an implementation plan under Article 17 of the aforesaid Act; and permission to access a third person’s land under Article 64 (2) of the aforesaid Act;
10. Permission to open a private road under Article 4 of the Private Road Act;
11. Permission to change the form and quality of land, etc. under Article 14 of the Erosion Control Work Act; and revocation of designation as an erosion control area under Article 20 of the aforesaid Act;
12. Permission to engage in activities or reporting on activities in a forest-protected area under Article 9 (1) and (2) 1 and 2 of the Forest Protection Act: Provided, That the foregoing shall not apply to activities in seed-gathering forests and experimental forests under the Creation and Management of Forest Resources Act and forest genetic resources protected areas under the Forest Protection Act;
13. Permission to fell standing trees or reporting on the felling of standing trees, etc. under Article 36 (1) and (4) of the Creation and Management of Forest Resources Act: Provided, That the foregoing shall not apply to the felling of standing trees, etc. in seed-gathering forests and experimental forests under the Creation and Management of Forest Resources Act and forest genetic resources protected areas under the Forest Protection Act;
14. Permission to use a mountainous district for another purpose and reporting on the use of a mountainous district for another purpose under Articles 14 and 15 of the Mountainous Districts Management Act; and permission to temporarily use a mountainous district and reporting on the use of a mountainous district under Article 15-2 of the aforesaid Act;
15. Permission to perform small river conservation works under Article 10 of the Small River Maintenance Act; and permission to occupy a small river or reporting on the occupancy, etc. of a small river under Article 14 of the aforesaid Act;
16. Approval of a water supply project under Article 17 or 49 of the Water Supply and Waterworks Installation Act; and approval to install a water supply system for exclusive use under Article 52 of the aforesaid Act;
17. Approval of a plan for the implementation of a coast maintenance project under Article 25 of the Coast Management Act;
18. Registration of a large-scale store under Article 8 of the Distribution Industry Development Act;
19. Permission to relocate an abandoned grave under Article 27 (1) of the Act on Funeral Services, etc.;
20. Permission to develop and use groundwater or reporting on the development and use of groundwater under Article 7 or 8 of the Groundwater Act;
21. Permission to use grassland for another purpose under Article 23 of the Grassland Act;
22. Permission to engage in activities under Article 6 of the Housing Site Development Promotion Act;
23. Permission to perform public sewerage works under Article 16 of the Sewerage Act; and reporting on the installation of private sewage treatment facilities under Article 34 (2) of the aforesaid Act;
24. Permission to perform river conservation works and approval of a plan for the implementation of river conservation works under Article 30 of the River Act; permission to occupy a river under Article 33 of the aforesaid Act; and permission to use river water under Article 50 of the aforesaid Act;
(2) Any person who intends to obtain deemed authorization, permission, etc. shall submit an application for approval of a project plan under Article 15 along with related documents prescribed by relevant Acts.
(3) When intending to approve a project plan which includes any matter provided for in paragraph (1) pursuant to Article 15, a person authorized to approve project plans shall consult with the heads of related administrative agencies after submitting related documents prescribed by the relevant Acts. In such cases, the heads of related administrative agencies in receipt of a request to hold consultation shall present their opinions within 20 days from the date of receipt of the request, and where any opinion is not presented within such period, consultation shall be deemed completed.
(4) The head of a related administrative agency in receipt of a request to hold consultations from a person authorized to approve project plans pursuant to paragraph (3), shall not respond to consultations which violate standards for granting authorization, permission, etc. prescribed by the relevant Acts.
(5) Where a project operator who constructs national housing at a higher rate than that prescribed by Presidential Decree is deemed to have obtained authorization, permission, etc. under other Acts pursuant to paragraph (1), he/she shall be exempt from fees, etc. imposed pursuant to related Acts.
 Article 20 (Construction, etc. of Rental Housing under Housing Construction Project, etc.)
(1) Where a project operator (excluding a remodeling project operator) submits an application for approval of a project plan including the following matters (including an application for a building permit under Article 11 (3) of the Building Act; hereafter the same shall apply in this Article), a person authorized to approve project plans (including a person authorized to grant a building permit) may apply a lenient floor area ratio in accordance with standards prescribed by Ordinance of the Special Metropolitan City, Metropolitan City, Metropolitan Self-Governing City, Special Self-Governing Province, Si or Gun within the floor area ratio for each specific-use area under Article 78 of the National Land Planning and Utilization Act:
1. A plan to construct housing with at least the number of housing units and non-housing facilities under Article 15 (1) in the shape of the same building;
2. Matters concerning the construction and supply of rental housing.
(2) Where a lenient floor area ratio is applied pursuant to paragraph (1), the project operator shall supply the area equivalent to at least a ratio prescribed by Presidential Decree within 60 percent of the lenient floor area ratio for rental housing. In such cases, the project operator shall supply rental housing to the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, the Korea Land and Housing Corporation or a local public corporation (hereinafter referred to as "acquirer"), and the Mayor/Do Governor may acquire possession of rental housing first: Provided, That, where the Mayor/Do Governor does not acquire possession of rental housing, the project operator may request the Minister of Land, Infrastructure and Transport to designate an acquirer according to the following classification:
1. Where a Special Metropolitan City Mayor, Metropolitan City Mayor or a Do Governor does not acquire possession of rental housing: The head of the competent Si/Gun/Gu shall request the Minister of Land, Infrastructure and Transport to designate an acquirer after notifying a Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor of the fact that an application for approval of the project plan (including a building permit under Article 11 of the Building Act; hereafter the same shall apply in this Article) is filed under paragraph (1);
2. Where a Special Self-Governing City Mayor or Special Self-Governing Province Governor does not acquire possession of rental housing: The Special Self-Governing City Mayor or Special Self-Governing Province Governor shall directly request the Minister of Land, Infrastructure and Transport to designate an acquirer.
(3) The price of rental housing supplied pursuant to paragraph (2) shall be the construction costs set on the basis for calculation of the price converted for sale of publicly constructed rental housing under Article 50-3 (1) of the Special Act on Public Housing, and appurtenant land shall be deemed donated to an acquirer.
(4) A project operator shall state the size, etc. of rental housing to which a lenient floor area ratio is applied in consultation with an acquirer in an application for approval of a project plan before he/she files the application for approval of a project plan under Article 15.
(5) A project operator shall select rental housing to be supplied to an acquirer by means of public lottery among the whole housing supplied (where a housing association is established under Article 11, referring to housing left after supplying to members of the housing association), and shall immediately notify an acquirer of such selection.
(6) A project operator shall immediately commission an acquirer to obtain registration or file an application for registration after he/she obtains approval for the completion of rental housing (including approval for the use of rental housing under Article 22 of the Building Act). In such cases, where the project operator refuses or delays registration, an acquirer may commission a third party to obtain registration or file an application for registration himself/herself.
 Article 21 (Securing, etc. of Ownership of Site)
(1) Any person who intends to obtain approval of a housing construction project plan pursuant to Article 15 (1) or (3) shall secure ownership of a site for the relevant housing construction: Provided, That the foregoing shall not apply in any of the following cases:
1. Where he/she secures a right (in cases of a housing association (excluding a housing remodeling association) that implements a project jointly with a registered project operator pursuant to Article 5 (2), referring to ownership of at least 95 percent; hereafter in this Article, Articles 22 and 23, the same shall apply) to use at least 80 percent of the area of the site for the housing construction project that requires the determination (including where determination is deemed made under Article 19 (1) 5) of a district unit plan (hereinafter referred to as "district unit plan") under Article 49 of the National Land Planning and Utilization Act (in cases of land in which State-owned land or public land is included, he/she shall be deemed to have secured such right where the management agency of the relevant state-owned land or public land submits to a person authorized to approve project plans a document confirming that it will sell or transfer the relevant land to a project operator), and a site which is not secured is subject to request for sale under Articles 22 and 23;
2. Where a project operator fails to secure ownership of a site for housing construction but secures a right to use such site;
3. Where the State, a local government, the Korea Land and Housing Corporation or a local public corporation implements a housing construction project.
(2) Where a project operator intends to commence construction works after submitting a report pursuant to Article 16 (2), and a site subject to request for sale under Articles 22 and 23 is included in a site for the relevant housing construction for which he/she has obtained approval of a project plan, he/she may commence such construction works only where the owner of the relevant site subject to request for sale agrees on the sale thereof or he/she receives a favorable decision on a request for sale from a court (no final decision is required).
 Article 22 (Request for Sale, etc.)
(1) A project operator who has obtained approval of a project plan pursuant to Article 21 (1) 1 may request the sale, at market price, of a site not secured for the relevant housing construction from the owner of such site (including buildings; hereafter in this Article and Article 23, the same shall apply) pursuant to any of the following subparagraphs. In such cases, the project operator shall consult with the owner of the site subject to request for sale for at least three months before he/she makes a request for sale:
1. Where he/she has secured a right to use at least 95 percent of the area of the site for housing construction: It is possible for him/her to request all owners of sites not secured to sell the relevant sites;
2. Except as otherwise expressly provided for in subparagraph 1: It is possible for him/her to request the sale of sites not secured from owners of such sites, excluding persons who has acquired ownership of the relevant sites ten years before the date the determination of a district unit planning zone is announced and continuously hold such ownership (where the owner of a site has acquired ownership by inheritance from his/her lineal ascendant or descendant or his/her spouse when calculating the period of possession of the site, the period of possession by his/her lineal ascendant or descendant or his/her spouse shall be aggregated thereto).
(2) A housing remodeling association established after obtaining approval pursuant to Article 11 (1) may request the sale of housing or land from the owners of such housing or land who withhold consent to a resolution of remodeling.
(3) Article 48 of the Act on Ownership and Management of Condominium Buildings shall apply mutatis mutandis to requests for sale under paragraphs (1) and (2).
 Article 23 (Disposition of Sites, etc. Whose Owners are Unidentifiable)
(1) Where it is impracticable to verify whereabouts of the owner of a site not secured for the relevant housing construction, the project operator who has obtained approval of a project plan pursuant to Article 21 (1) 1 shall make at least two official announcements in at least two daily nationwide newspapers, and such site shall be deemed subject to request for sale under Article 22 at least 30 days after the date of the second official announcement.
(2) A project operator may implement a housing construction project after depositing with a court the amount of money equivalent to the appraised value of a site subject to request for sale under paragraph (1).
(3) The appraised value of a site referred to in paragraph (2) shall be calculated by taking an arithmetical average of the amounts appraised by at least two appraisers under the Act on Appraisal and Certified Appraisers recommended by a person authorized to approve project plans. <Amended by Act No. 13782, Jan. 19, 2016>
 Article 24 (Access to Land, etc.)
(1) Where a project operator, who is the State, a local government, the Korea Land and Housing Corporation or a local public corporation, intends to conduct research or a survey to formulate a project plan, and where it is necessary to implement a national housing project, the project operator may engage in the following activities:
1. Accessing a third person’s land;
2. Temporarily using a third person’s land which is not used for special purposes as a material stocking yard or temporary road;
3. Altering or removing bamboo, trees, earth, stones, and other obstacles, where specially needed.
(2) Where a project operator under paragraph (1) constructs national housing units or prepares a site for the construction of national housing, he/she may expropriate or use land or fixtures on the land, rights other than ownership over the land or fixtures (hereinafter referred to as "land, etc.").
(3) In cases falling under paragraph (1), Articles 130 (2) through (9) and 144 (1) 2 and 3 of the National Land Planning and Utilization Act shall apply mutatis mutandis. In such cases, an "operator of an urban/Gun planning facility project" shall be construed as a "project operator," and "Article 130 (1)" as "Article 24 (1) of this Act," respectively.
 Article 25 (Indemnification for Loss Caused by Access to Land, etc.)
(1) Where a person has suffered loss due to any activities referred to in Article 24 (1), a project operator who has engaged in such activities shall indemnify him/her for such loss.
(2) A person liable to indemnify for loss and a person who has suffered loss shall agree on the terms of indemnification for loss under paragraph (1).
(3) Where a person liable to indemnify for loss and a person who has suffered loss fail to reach agreement under paragraph (2), or are unable to reach agreement, they may file an application for judgment with a competent land expropriation committee under the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects.
(4) The provisions of Articles 83 through 87 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis to the judgment of a competent land expropriation committee under paragraph (3).
 Article 26 (Entrustment of Affairs concerning Purchase of Land, etc.)
(1) A project operator, who is the State or the Korea Land and Housing Corporation, may entrust the head of the competent local government with affairs concerning the purchase of land and affairs concerning indemnification for loss for a housing construction project or housing site preparation project, as prescribed by Presidential Decree.
(2) Where a project operator entrusts affairs concerning the purchase of land and affairs concerning indemnification for loss pursuant to paragraph (1), he/she shall pay an entrustment fee at a rate prescribed by Presidential Decree within two percent of the purchase amount of the land and the amount of indemnification for loss, to the relevant local government.
 Article 27 (The Act on Acquisition of and Compensation for Land, etc. for Public Works Projects to be Applied Mutatis Mutandis)
(1) Except as otherwise expressly prescribed in this Act, the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis where land, etc. is expropriated or used pursuant to Article 24 (2).
(2) Where the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects is applied mutatis mutandis pursuant to paragraph (1), "authorization for a project under Article 20 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects " shall be construed as "approval of a project plan under Article 15": Provided, That notwithstanding Articles 23 (1) and 28 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects, an application for judgment may be filed within the period of the housing construction project, the plan for which is approved.
 Article 28 (Installation of Arterial Facilities, and Reimbursement of Costs)
(1) Where a project operator implements a housing construction project with at least the number of housing units prescribed by Presidential Decree, or implements a site preparation project on at least the area prescribed by Presidential Decree, any of the following persons shall install the relevant arterial facilities, respectively: Provided, That the foregoing shall not apply where the project operator intends to install the facilities falling under subparagraph 1 by including such installation in a plan for the housing construction project under Article 15 (1) or in a plan for the housing site preparation project under Article 15 (3):
1. A local government: Roads, water supply systems and sewage systems;
2. A person who supplies electricity, communications, gas or heating to the relevant area: Electrical facilities, communications facilities, gas facilities or district heating facilities;
3. The State: Mailboxes.
(2) Arterial facilities referred to in paragraph (1) shall be installed by the date of the pre-use inspection under Article 49 (1), except in extenuating circumstances.
(3) A person responsible for installing arterial facilities shall bear the costs incurred in installing arterial facilities under paragraph (1). In such cases, the State may subsidize up to 50 percent of costs incurred in installing arterial facilities under paragraph (1) 1.
(4) Notwithstanding paragraph (3), where electric arterial facilities under paragraph (1) are installed underground, costs incurred in installing electric arterial facilities underground shall be apportioned between the electricity supplier and the person requesting the installation of electric arterial facilities underground at a rate of 50 percent, respectively: Provided, That, where electric arterial facilities are installed from arterial facilities outside the project district to the boundary line of the nearest housing complex located within the project district (if there is one housing complex within the project district, referring to that housing complex), an electricity supplier shall bear costs incurred in installing electric arterial facilities underground.
(5) Where a project operator requests the construction of a road, water supply system or sewerage system (limited to such facilities directly related to the relevant housing construction project or site preparation project) not falling under paragraph (1) 1 at his/her own expense, a local government may comply with his/her request.
(6) The scope of installation of arterial facilities for each type under paragraph (1) shall be prescribed by Presidential Decree.
(7) Where any person responsible for installing arterial facilities is unable to install arterial facilities within the period prescribed in paragraph (2) due to an extenuating circumstance, a project operator may install such arterial facilities at his/her own expense and request a reimbursement of such expense from the person responsible for installing such arterial facilities.
(8) Necessary matters concerning methods, procedures, etc. for reimbursement of costs incurred in installing arterial facilities under paragraph (7) shall be prescribed by Presidential Decree.
 Article 29 (Vesting of Public Facilities, etc.)
(1) Where a project operator installs new public facilities, or public facilities replacing the existing public facilities on land within the project district for which he/she has obtained approval of a project plan pursuant to Article 15 (1) or (3), Articles 65 and 99 of the National Land Planning and Utilization Act shall apply mutatis mutandis to the vesting of such public facilities. In such cases, "person who has obtained permission to engage in development activities" shall be construed as "project operator"; "permission to engage in development activities" as "approval of a project plan"; and "project operator which is an administrative agency" as "Korea Land and Housing Corporation, and a local public corporation," respectively.
(2) The Korea Land and Housing Corporation and a local public corporation construed as a project operator which is an administrative agency pursuant to the latter part of paragraph (1), shall use or dispose of public facilities to be vested to the relevant public corporation only for the purpose of implementing the relevant national housing project.
 Article 30 (Preferential Sale or Lease of State-Owned Land and Public Land, etc.)
(1) Where the State or a local government sells or leases its own land, it may give priority to a person who wishes to purchase or lease such land for any of the following purposes:
1. Construction of national standard housing exceeding a percentage prescribed by Presidential Decree;
2. Construction of housing by a housing association (hereinafter referred to as "housing constructed by an association");
3. Preparation of a site for the construction of housing under subparagraph 1 or 2.
(2) Where any person who has purchased or leased land from the State or a local government pursuant to paragraph (1) fails to construct national standard housing or housing of an association, or fails to implement a housing site preparation project for the construction of such housing within two years from the date of the purchase or lease thereof, the State or a local government may repurchase land or cancel the lease agreement.
 Article 31 (Utilization of Housing Sites Prepared through Urban Development Projects by Replotting Method)
(1) Where a project operator requests an urban development project operator (referring to an urban development project operator who implements the project by the replotting method under the Urban Development Act; hereafter the same shall apply in this Article) to sell an area of land secured by the urban development project operator in compensation for development outlay to use such land as a site for national housing, the urban development project operator may give priority to the project operator within 50 percent of the total area of land secured by him/her in compensation for development outlay, as prescribed by Presidential Decree.
(2) In cases falling under paragraph (1), where a project operator requests the sale of an area of land secured by an urban development project operator in compensation for development outlay before a replotting plan referred to in Article 28 of the Urban Development Act is formulated, the urban development project operator shall designate the area to be sold to the project operator as a single complex under the replotting plan.
(3) The transfer price of an area of land secured by an urban development project operator in compensation for development outlay under paragraph (1) shall be based upon the price appraised by an appraiser under the Act on Appraisal and Certified Appraisers, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That, in cases prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as where rental housing is constructed, the aforesaid transfer price may be based upon costs for the preparation of such land prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 13782, Jan. 19, 2016>
 Article 32 (Access to Documents)
Where it is necessary for a project operator who constructs and supplies national housing to implement a housing construction project or a housing site preparation project, he/she may request access to necessary documents or issuance of a certified copy or abridged transcript thereof free of charge, from the head of a registry office or the heads of other related administrative agencies.
SECTION 4 Construction of Housing
 Article 33 (Design and Construction of Housing)
(1) Any person who designs housing (including appurtenant facilities and welfare facilities; hereafter in this Article and Articles 49, 54 and 61, the same shall apply) to be constructed after obtaining approval of a project plan under Article 15 shall design housing in compliance with standards for preparation of design documents prescribed by Presidential Decree.
(2) Any person who constructs housing (hereinafter referred to as "contractor") under paragraph (1) and a project operator shall construct housing in compliance with design documents.
 Article 34 (Restrictions, etc. on Execution of Housing Construction Works)
(1) No person, other than a contractor prescribed in Article 9 of the Framework Act on the Construction Industry and further prescribed by Presidential Decree, or registered project operator deemed as a contractor pursuant to Article 7, shall execute housing construction works, the project plan for which is approved under Article 15.
(2) No person, other than a contractor prescribed in Article 9 of the Framework Act on the Construction Industry and further prescribed by Presidential Decree (in cases of installing or constructing specific heat using equipment and materials, referring to a contractor under the Energy Use Rationalization Act), shall execute waterproofing works, sanitary works, heating, ventilating and air conditioning (HVAC) works of multi-family housing.
(3) Any project operator which is the State or a local government, shall place an order for housing construction works, the project plan for which is approved under Article 15 by dividing the design and construction components: Provided, That in cases of housing construction works for which it is impracticable to place an order by dividing the design and construction components in light of technical management, and which are large-scale housing construction works prescribed by Presidential Decree, the project operator may execute such construction works through a bidding process prescribed by Presidential Decree.
 Article 35 (Housing Construction Standards, etc.)
(1) The following standards concerning the construction, etc. of housing (hereinafter referred to as "housing construction standards, etc.") a project operator builds and supplies, shall be prescribed by Presidential Decree:
1. Housing construction standards for the layout of housing and facilities, residential complex building, etc.;
2. Standards for structures and facilities of housing, such as party walls between households, floor soundproof structures, structural load-bearing strength;
3. Standards for the installation of appurtenant facilities;
4. Standards for the installation of welfare facilities;
5. Standards for the preparation of building sites;
6. Standards for the scale of housing and the ratio of housing for each scale.
(2) Each local government may prescribe specific standards by Municipal Ordinance, based on housing construction standards, etc., in consideration of the relevant regional characteristics, the scale of housing, etc.
(3) A project operator shall implement a housing construction project or housing site preparation project in compliance with housing construction standards, etc. prescribed in paragraph (1) and standards referred to in paragraph (2).
 Article 36 (Standards for Construction of Urban Residential Housing)
(1) Any project operator (including a project owner defined in subparagraph 12 of Article 2 of the Building Act) who intends to construct urban residential housing, shall construct urban residential housing in compliance with the types, scale, etc. prescribed by Presidential Decree in an urban area prescribed in the National Land Planning and Utilization Act.
(2) No project operator shall construct urban residential housing and other housing in one building: Provided, That the foregoing shall not apply where he/she meets requirements prescribed by Presidential Decree.
 Article 37 (Standards for Construction of Energy-Saving, Eco-Friendly Housing, etc.)
(1) Where a project operator intends to construct housing after obtaining approval of a project plan under Article 15, he/she shall construct energy-saving, eco-friendly housing, as prescribed by Presidential Decree, such as the application of high energy efficient equipment technology and building materials. In such cases, the project operator shall submit documents under Article 15 along with documents prescribed by Presidential Decree, such as documents indicating the current status of housing constructed in compliance with the standards for construction of energy-saving, eco-friendly housing.
(2) Where a project operator intends to construct housing with more than the number of housing units prescribed by Presidential Decree, he/she shall construct health-friendly housing, as prescribed by Presidential Decree, such as the use of eco-friendly building materials.
 Article 38 (Standards for Construction of Long-Lasting Housing, Certification System, etc.)
(1) The Minister of Land, Infrastructure and Transport may prescribe and announce standards for construction of long-lasting housing.
(2) The Minister of Land, Infrastructure and Transport may operate a certification system for long-lasting housing, in accordance with standards for construction prescribed in paragraph (1), to encourage the supply of long-lasting housing.
(3) Where a project operator intends to supply housing with more than the number of housing units prescribed by Presidential Decree, he/she shall obtain a rating exceeding standards prescribed by Presidential Decree in accordance with a certification system under paragraph (2).
(4) The State, or the head of a local government or local public corporation may provide administrative and tax support to project operators who supply long-lasting housing and persons who acquire such housing, as prescribed by Acts, etc.
(5) The Minister of Land, Infrastructure and Transport may designate a certifying institution and entrust such certifying institution with relevant affairs to operate a certification system under paragraph (2).
(6) In relation to the operation of a certification system under paragraph (2), standards and procedures for certification, fees, etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(7) Where a project operator obtains a rating exceeding standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport in accordance with a certification system under paragraph (2), notwithstanding the National Land Planning and Utilization Act, the building-to-land ratio, the floor area ratio and the height limit may be relaxed by the amount prescribed by Presidential Decree.
 Article 39 (Indication of Performance Rating of Multi-Family Housing)
Where a project operator supplies multi-family housing with more than the number of housing units prescribed by Presidential Decree, he/she shall indicate the performance and quality of housing on the public notice of resident recruitment according to a method prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport so that residents may know the performance and quality of housing after obtaining any of the following ratings pursuant to the Green Buildings Construction Support Act:
1. Ratings related to noises, such as light weight impact sound, heavy weight impact sound, toilet noises, warning noises;
2. Ratings related to structure, such as variability and ease of repair in preparation for remodeling;
3. Ratings related to environment, such as landscape architecture, the amount of daylight received, indoor air quality, and energy conservation;
4. Ratings related to living environment, such as community facilities, consideration of the socially disadvantaged, the home network and the anti-theft system;
5. Ratings related to fire and fire fighting, such as fire, fire fighting and the escape system.
 Article 40 (Installation, etc. of Ventilation Systems)
A project operator shall install a ventilation system in accordance with standards prescribed by Presidential Decree for the effective ventilation of indoor air of multi-family housing.
 Article 41 (Ratings of Floor Soundproof Structures)
(1) The Minister of Land, Infrastructure and Transport may designate an institution that assigns ratings of floor soundproof structures of multi-family residential housing (hereinafter referred to as "institution assigning ratings of floor soundproof structures") in accordance with standards prescribed by Presidential Decree, among housing construction standards referred to in Article 35 (1) 2.
(2) Where a product assigned a performance rating (hereinafter referred to as "rated product") falls under any of the following, an institution assigning ratings of floor soundproof structures may revoke the rating of such product: Provided, That where a rated product falls under subparagraph 1, the institution assigning ratings of floor soundproof structures shall revoke the rating of such product:
1. Where a product was rated by deceptive or other wrongful means;
2. Where a product was sold or constructed differently from the details of the rating assigned;
3. Where a rated product fails to satisfy quality control standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
4. Where a person who has obtained the rating fails to submit test results to extend the period of validity of the rating assigned.
(3) Matters necessary to assign ratings of floor soundproof structures, such as the period of validity of the ratings under paragraph (1) and fees for the ratings, shall be prescribed by Presidential Decree.
(4) Requirements, procedures, etc. for designation of an institution assigning ratings of floor soundproof structures shall be prescribed by Presidential Decree.
(5) Where an institution assigning ratings of floor soundproof structures falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke such designation: Provided, That where an institution assigning ratings of floor soundproof structures, falls under subparagraph 1, the Minister of Land, Infrastructure and Transport shall revoke such designation:
1. Where it has been designated by deceptive or other wrongful means;
2. Where it has conducted business in violation of standards for assigning ratings of floor soundproof structures under paragraph (1);
3. Where it has failed to meet requirements for designation of an institution assigning ratings of floor soundproof structures under paragraph (4);
4. Where it has failed to assign the ratings for at least two consecutive years without just cause.
(6) The Minister of Land, Infrastructure and Transport may require an institution assigning ratings of floor soundproof structures to submit data on its business, such as the status of the ratings assigned; or require public officials under his/her jurisdiction to examine relevant documents, etc.
(7) Any public official who conducts examinations pursuant to paragraph (6) shall carry a certificate of authority and present it to the relevant persons.
 Article 42 (Establishment of Noise Prevention Measures)
(1) A person authorized to approve project plans shall require a project operator who intends to implement a housing construction project to establish noise prevention measures to prevent damage caused by the construction of housing and maintain calm and peaceful lives of residents in an area where housing is constructed, as prescribed by Presidential Decree.
(2) Where an area prescribed by Presidential Decree, in which housing is constructed abuts a road, a person authorized to approve project plans shall have prior consultation on noise prevention measures with the managing agency of the relevant road. In such cases, the managing agency of the relevant road may present necessary opinions based on noise standards prescribed by noise-related Acts.
(3) The level of outdoor noise and standards for measuring the level of outdoor noise necessary to establish noise prevention measures under paragraph (1) shall be prescribed by Presidential Decree.
(4) The Minister of Land, Infrastructure and Transport may designate an institution that can measure the level of outdoor noise (hereinafter referred to as "institution measuring the level of outdoor noise") under paragraph (3).
(5) Where an institution measuring the level of outdoor noise falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke such designation: Provided, That, where an institution measuring the level of outdoor noise falls under subparagraph 1, such designation shall be revoked:
1. Where it has been designated by deceptive or other wrongful means;
2. Where it has conducted business in violation of standards for measuring the level of outdoor noise under paragraph (3);
3. Where it has failed to meet the requirements for designating institutions measuring the level of outdoor noise under paragraph (6).
(6) Matters necessary for measuring the level of outdoor noise, such as the requirements for designating institutions measuring the level of outdoor noise and fees incurred in measuring the level of outdoor noise, shall be prescribed by Presidential Decree.
SECTION 5 Consulting Engineering Services for Construction of Housing and Pre-Use Inspection
 Article 43 (Designation, etc. of Consulting Engineers for Construction of Housing)
(1) Where a person authorized to approve project plans has approved a housing construction project plan under Article 15 (1) or (3) and the head of a Si/Gun/Gu has permitted a remodeling project under Article 66 (1), he/she shall designate a person qualified for consulting engineering services under the Certified Architects Act or the Construction Technology Promotion Act as a consulting engineer of the relevant housing construction project, as prescribed by Presidential Decree: Provided, That the foregoing shall not apply where the project operator is the State; a local government; the Korea Land and Housing Corporation; a local public corporation; or a person prescribed by Presidential Decree, or in cases of urban residential housing for which consulting engineering services for construction are provided pursuant to Article 25 of the Building Act.
(2) Where consulting engineers violate the requirements prescribed by Presidential Decree, such as where they submit documents concerning designation of consulting engineers by deceptive or other fraudulent means, or overlook any violation they have discovered in the course of performing their duties, a person authorized to approve project plans shall replace such consulting engineers, and may prevent the consulting engineers from being designated as consulting engineers within one year.
(3) Except as otherwise expressly prescribed by this Act, the details and scope of responsibility between a project operator and consulting engineers shall be stipulated by agreement between the parties concerned.
(4) The Minister of Land, Infrastructure and Transport may prepare and supply a standard consulting engineering service agreement so that agreement can be made fairly between a project operator and consulting engineers pursuant to paragraph (3).
 Article 44 (Duties, etc. of Consulting Engineers)
(1) Consulting engineers shall assign supervisors employed by him/her to perform the following duties, as prescribed by Presidential Decree:
1. Verification as to whether a contractor has executed construction works in compliance with design documents;
2. Verification as to whether a contractor has used building materials conforming to standards under relevant Acts and subordinate statutes;
3. Verification as to whether a contractor has conducted quality tests under Article 55 of the Construction Technology Promotion Act on housing construction works;
4. Verification as to whether a contractor has used the same finishes and products as those in the list of finishes and films submitted by a project operator to the head of the relevant Si/Gun/Gu pursuant to Article 54 (3);
5. Other matters prescribed by Presidential Decree concerning consulting engineering services for executing housing construction works.
(2) Consulting engineers shall report the status of their performance of duties prescribed in paragraph (1) to a person authorized to approve project plans (referring to a person authorized to grant permission if only permission for remodeling has been granted under Article 66 (1); hereafter in this Article, and Articles 45, 47 and 48, the same shall apply) and to the project operator.
(3) Where consulting engineers discover any violation in the course of performing their duties under paragraph (1), they shall immediately notify the contractor and project operator that they must correct such violations, and shall report the details of their notification to a person authorized to approve project plans within seven days.
(4) Where a contractor and project operator are notified that they must correct any violation under paragraph (3), they shall immediately suspend the relevant construction works and obtain verification from consulting engineers after such violation is corrected. In such cases, where the contractor and the project operator have an objection against consulting engineers' notification that they must make corrections, they may immediately suspend construction works and file a formal objection with a person authorized to approve project plans in writing.
(5) Necessary matters concerning methods and procedures for the designation of consulting engineers under Article 43 (1) and the handling of a formal objection under paragraph (4) shall be prescribed by Presidential Decree.
(6) A project operator shall pay a fee for consulting engineering services to consulting engineers in accordance with procedures, etc. prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 45 (Cooperation in Consulting Engineering Services Provided by Consulting Engineers)
(1) Consulting engineers shall provide consulting engineering services in cooperation with those who provide consulting engineering services pursuant to Article 14-2 of the Electric Technology Management Act, Article 8 of the Information and Communications Construction Business Act, and Article 17 of the Fire-Fighting System Installation Business Act (hereinafter referred to as "consulting engineers under other Acts").
(2) Consulting engineers under other Acts shall submit data prescribed by Presidential Decree, such as a plan for consulting engineering services for each phase of progress of work to consulting engineers, and they shall prepare a plan for providing consulting engineering services on all housing construction works in consultation with consulting engineers under other Acts and submit it to a person authorized to approve project plans before commencing to provide consulting engineering services.
(3) Consulting engineers may request consulting engineers under other Acts to report the progress of construction works and make corrections for the quality and safety management of housing construction works and the effective progress of the construction works, and the consulting engineers under other Acts shall comply with such request.
 Article 46 (Cooperation with Professional Architectural Structural Engineers)
(1) Where consulting engineers for a remodeling project to increase the number of stories (including a remodeling project without increasing the number of housing units; hereinafter the same shall apply) verify the following matters in the course of providing their consulting engineering services, they shall obtain cooperation from professional architectural structural engineers (referring to persons in charge of structural design for remodeling of the relevant building; hereinafter referred to as "professional architectural structural engineer"): Provided, That where they are unable to obtain cooperation on the grounds prescribed by Presidential Decree, such as the death of the professional architectural structural engineer in charge of structural design, they shall obtain cooperation from another professional architectural structural engineer prescribed by Presidential Decree:
1. Where a contractor intends to execute construction works differently from structural drawings or structural calculation submitted to obtain a permit for remodeling to increase the number of stories;
2. Where it is necessary to prepare more detailed drawings of the main structures of a building, such as load-bearing walls, pillars, floors, and beams, than drawings submitted to obtain a permit for remodeling to increase the number of stories;
3. Cases prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in which cases a contractor executes construction works to remove or reinforce the main structures of a building, such as load-bearing walls, pillars, floors, and beams;
4. Other matters having an effect on the structure of the building, which are prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) A professional architectural structural engineer who has provided cooperation to a consulting engineer pursuant to paragraph (1) shall affix his/her signature and seal to quarterly reports and the final report of consulting engineering services provided, together with the consulting engineer's signature and seal.
(3) A professional architectural structural engineer in receipt of a request to provide cooperation pursuant to paragraph (1) shall conscientiously perform his/her duties on an independent and fair basis.
(4) Any person who intends to implement a remodeling project to increase the number of stories, shall pay a reasonable price to a professional architectural structural engineer who has provided cooperation to consulting engineers pursuant to paragraph (1).
 Article 47 (Measures against Unconscientious Consulting Engineers, etc.)
Where consulting engineers designated pursuant to Article 43 or supervisors assigned pursuant to Article 44 (including consulting engineers under other Acts or supervisors employed by them) inflict loss upon the relevant project operator or residents by performing defective housing construction works, willfully or by gross negligence; by unconscientiously providing their consulting engineering services; or by providing their consulting engineering services in violation of relevant statutes, a person authorized to approve project plans may request deregistration, revocation of licenses, suspension of qualification or operation or other necessary measures, from the head of an administrative agency that has registered such consulting engineers or granted licenses or other qualifications to such supervisors.
 Article 48 (Inspection, etc. of Actual Condition of Consulting Engineers)
(1) A person authorized to approve project plans may inspect the actual condition (hereinafter referred to as "inspection of the actual condition") of matters prescribed by Presidential Decree, such as the actual performance of their duties concerning various tests and confirmation of materials, intended for consulting engineers for the relevant housing construction works, in order to prevent faulty housing construction works and secure quality and safety of the housing construction works.
(2) Where it is verified that consulting engineers have negligently provided consulting engineering services under Article 44 (1) in the course of the inspection of the actual condition, a person authorized to approve project plans shall issue consulting engineers an order to take corrective measures or replace consulting engineers pursuant to Article 43 (2).
(3) A person authorized to approve project plans shall report the fact that he/she has issued consulting engineers an order to take corrective measures or replaced consulting engineers following the inspection of the actual condition, to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and the Minister of Land, Infrastructure and Transport may conduct overall management of the reports and incorporate them as criteria for designation of consulting engineers under Article 43 (1).
 Article 49 (Pre-use Inspection, etc.)
(1) Where a project operator completes a housing construction project or housing site preparation project he/she has embarked on after obtaining approval of a project plan under Article 15, he/she shall undergo a pre-use inspection for the housing or the site by the head of the relevant Si/Gun/Gu (where the State or the Korea Land and Housing Corporation is a project operator and, in cases prescribed by Presidential Decree, referring to the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That, where the project operator has obtained approval of a project plan pursuant to Article 15 (3), he/she may undergo a pre-use inspection of the housing in each section of construction works (hereinafter referred to as "pre-use inspection for each section"); and in any exceptional circumstance prescribed by Presidential Decree, such as a failure to meet the conditions of approval of the project plan, he/she may undergo a pre-use inspection for each building of the housing (hereinafter referred to as "pre-use inspection for each building").
(2) Where a project operator has undergone a pre-use inspection under paragraph (1), he/she shall be deemed to have obtained approval for use; have passed the final inspection; or have obtained final approval of the relevant project following authorization or permission deemed granted under Article 19 (1). In such cases, the head of a Si/Gun/Gu conducting a pre-use inspection (hereinafter referred to as "person authorized to conduct pre-use inspections") under paragraph (1) shall hold prior consultation with the head of a related administrative agency.
(3) Notwithstanding paragraph (1), a person who has guaranteed completion of the relevant housing construction project, the contractor of the relevant housing, or eligible residents may undergo a pre-use inspection, as prescribed by Presidential Decree according to the following classification:
1. Where a project operator is unable to undergo a pre-use inspection due to bankruptcy, etc., the person who has guaranteed completion of the relevant housing construction project or eligible residents may undergo the pre-use inspection;
2. Where a project operator fails to follow procedures for a pre-use inspection without just cause, a person who has guaranteed completion of the relevant housing construction project, the contractor of the relevant housing or eligible residents may undergo the pre-use inspection. In such cases, no person authorized to conduct pre-use inspections shall refuse or delay the pre-use inspection unless the project operator gives reasons for not undergoing a pre-use inspection.
(4) No project operator shall permit eligible residents to use housing or the building site or no eligible resident shall use housing or the building site unless he/she/they have undergone a pre-use inspection under paragraph (1): Provided, That the foregoing shall not apply to cases prescribed by Presidential Decree, in which cases he/she/they have obtained approval for temporary use from the person authorized to conduct pre-use inspections.
 Article 50 (Exemption from Security Deposit for Repairing Defects)
(1) Where eligible residents undergo a pre-use inspection due to the bankruptcy, etc. of a project operator pursuant to Article 49 (3), notwithstanding Article 38 (1) of the Multi-Family Housing Management Act, the representative council of eligible residents shall provide a security deposit for repairing defects when it files an application for a pre-use inspection with a person authorized to conduct the pre-use inspection.
(2) Where the representative council of eligible residents provides a security deposit for repairing defects pursuant to paragraph (1), notwithstanding Article 49 (4), eligible residents shall be exempted from providing a security deposit for repairing defects under Article 38 (1) of the Multi-Family Housing Management Act according to the following classification when they occupy and reside in the housing substantially constructed in accordance with a project plan approved under Article 15 as of December 31, 2015, for which a pre-use inspection under Article 49 (1) or (3) is not undergone due to the bankruptcy, etc. of a project operator (hereafter referred to in this Article as "unauthorized housing"); and file an application for a pre-use inspection with an authority to conduct the pre-use inspection by December 31, 2016:
1. Where one year has elapsed from the date an eligible resident commences to reside in the unauthorized housing: 10 percent;
2. Where two years have elapsed from the date an eligible resident commences to reside in the unauthorized housing: 35 percent;
3. Where three years have elapsed from the date an eligible resident commences to reside in the unauthorized housing: 55 percent;
4. Where four years have elapsed from the date an eligible resident commences to reside in the unauthorized housing: 70 percent;
5. Where five years have elapsed from the date an eligible resident commences to reside in the unauthorized housing: 85 percent;
6. Where ten years have elapsed from the date an eligible resident commences to reside in the unauthorized housing: 100 percent.
(3) The date an eligible resident commences to reside in the unauthorized housing prescribed in paragraph (2) shall be the date on which an eligible resident first occupies the housing. In such cases, the date an eligible resident fist occupies the housing shall be verified based on the date resident registration is reported or the date utility fees, such as electricity charges or water charges, are paid.
(4) Article 49 (2) shall apply mutatis mutandis where eligible residents who occupy the unauthorized housing, have undergone a pre-use inspection pursuant to paragraph (1). In such cases, "project operator" shall be construed as "eligible residents in unauthorized housing."
(5) Where the representative council of eligible residents has provided a security deposit pursuant to paragraph (1), the period for warranty liability referred to in Article 36 (3) of the Multi-Family Housing Management Act shall be deemed reduced as long as the period for which a security deposit for repairing defects is exempted pursuant to paragraph (2). <Amended by Act No. 14793, Apr. 18, 2017>
SECTION 6 Recognition, etc. of Industrialized Housing
 Article 51 (Recognition, etc. of Industrialized Housing)
(1) The Minister of Land, Infrastructure and Transport may recognize housing, the part of which falls under any of the following and is constructed by industrialized construction methods, such as prefabrication, in accordance with performance standards and production standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, as industrialized housing (hereinafter referred to as "industrialized housing"):
1. All or some main structures;
2. The whole or some residential space of each household (referring to unit space able to serve as part of space, such as a living room (defined in subparagraph 6 of Article 2 of the Building Act), bathroom and bathtub).
(2) Notwithstanding Article 9 (1) of the Framework Act on the Construction Industry, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun may permit a person who intends to construct housing according to the following classification, to construct the relevant housing, as prescribed by Presidential Decree:
1. The Minister of Land, Infrastructure and Transport: Industrialized housing to be constructed by applying new construction technology announced by the Minister of Land, Infrastructure and Transport pursuant to Article 14 of the Construction Technology Promotion Act;
2. A Mayor/Do Governor or the head of a Si/Gun: Industrialized housing.
(3) Matters necessary for recognizing industrialized housing shall be prescribed by Presidential Decree.
 Article 52 (Revocation of Recognition of Industrialized Housing)
Where a person who has obtained recognition of industrialized housing pursuant to Article 51 (1) falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke his/her recognition of industrialized housing: Provided, That where the person falls under subparagraph 1, the Minister of Land, Infrastructure and Transport shall revoke his/her recognition of industrialized housing:
1. Where the person has obtained recognition by deceptive or other wrongful means;
2. Where the person has constructed industrialized housing with performance lower than standards recognized.
 Article 53 (Promotion of Construction of Industrialized Housing)
(1) The Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si/Gun may recommend a project operator to construct industrialized housing when he/she constructs housing.
(2) Articles 33, 43, and 44 of this Act, and Article 4 of the Certified Architects Act shall not apply where a person who has technical capacity prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to construct or improve the quality of industrialized housing, constructs industrialized housing.
CHAPTER III SUPPLY, ETC. OF HOUSING
 Article 54 (Supply of Housing)
(1) Any project operator (including a project owner who constructs and supplies housing and non-housing facilities in the shape of the same building, with at least the number of housing units prescribed in Article 15 (1) after obtaining a building permit under Article 11 of the Building Act and a person who acquires the possession of housing which has undergone a pre-use inspection under Article 49 from the project operator in lump sum; hereafter in this Chapter, the same shall apply) shall construct and supply housing as follows. In such cases, he/she may specially supply housing to persons of distinguished service to the State; persons eligible for veterans' benefits; persons with disabilities; owners of housing demolished; and other eligible persons prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, by stipulating different conditions of resident recruitment, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
1. Where a project operator (excluding a public housing project operator) intends to recruit residents, he/she shall obtain approval from the head of a Si/Gun/Gu (in cases of welfare facilities, referring to the submission of a report to the head of a Si/Gun/Gu), as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
2. Where a project operator intends to supply housing he/she constructs:
(a) He/she shall comply with conditions, methods and procedures for recruiting residents; methods, timing and procedures for payment of the price for a housing unit (referring to the housing price to be paid by eligible residents to the project operator; hereinafter the same shall apply); and methods, procedures, etc. for concluding a housing supply contract, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
(b) He/she shall separately propose the price for each option, excluding wallpaper, floor covering, kitchen utensils, lighting fixtures, etc. so that residents select the options, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) Any person who intends to acquire housing shall meet the requirements prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport for the eligibility for residency, prohibition from re-selection, priority of supply, etc. In such cases, the eligibility for residency, prohibition from re-selection, priority of supply, etc. of a person who intends to acquire housing in a high-speculation area under Article 63 (1) or an area subject to adjustment under Article 63-2 (1) shall be separately prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport on an area basis, based upon the supply and demand of housing, concern over speculation, etc. <Amended by Act No. 14866, Aug. 9, 2017>,
(3) Where a project operator intends to obtain approval from the head of a Si/Gun/Gu pursuant to paragraph (1) 1 (in cases of a project operator which is the State, a local government, the Korea Land and Housing Corporation, or a local public corporation, referring to where the project operator intends to construct a model house), he/she shall make a list describing the specifications, performance and quality of finishes (hereinafter referred to as "list of finishes") used in a model house constructed pursuant to Article 60, films of the inside of each room in the model house, etc., and submit them to the authority to grant approval.
(4) Where a project operator enters into a housing supply contract, he/she shall provide eligible residents with the following data or information: Provided, That the foregoing shall not apply where the project operator has stated such data or information in the public notice of resident recruitment (or where he/she posts such data or information on the website):
1. A list of finishes used in a model house under paragraph (3);
2. Information about emergency exits installed on party walls between balconies of multi-family housing units or light-weight party walls installed.
(5) The head of a Si/Gun/Gu shall keep a list of finishes, films, etc. he/she has received pursuant to paragraph (3) for at least two years from the date on which a pre-use inspection under Article 49 (1) is conducted, and allow the relevant residents to access them at their request.
(6) Where a project operator intends to use and apply a finish different from those in the project plan approved under Article 15 or in the list of finishes referred to in paragraph (3), in extenuating circumstances, such as a shortage of products due to the insolvency, etc. of the manufacturer of the finish, he/she shall apply the finish with at least the same quality as the original finish.
(7) Where a project operator intends to apply a finish different from those in the list of finishes pursuant to paragraph (6), he/she shall notify eligible residents of such fact.
 Article 55 (Request for Providing Data)
(1) Where deemed necessary to verify eligibility of a person who intends to acquire housing pursuant to Article 54 (2) for residency, the Minister of Land, Infrastructure and Transport may request the heads of relevant agencies to provide computerized data on resident registration (including personally identifiable numbers, such as resident registration numbers or alien registration numbers), or data or information concerning family registration; national tax; local tax; finance; land; buildings (including a building register); cars; health insurance; national pension; employment insurance; and industrial accident compensation insurance. In such cases, the heads of relevant agencies shall comply with such request except in extenuating circumstances.
(2) Notwithstanding Article 4 (1) of the Act on Real Name Financial Transactions and Confidentiality, and Article 32 (2) of the Credit Information Use and Protection Act, the Minister of Land, Infrastructure and Transport may request the head of a financial institution, etc. (referring to a finance company, etc. defined in subparagraph 1 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality and a credit information collection agency prescribed in Article 25 of the Credit Information Use and Protection Act; hereinafter the same shall apply) to provide the following data or information in writing by converting into an electronic form the written letter of consent submitted by an applicant or his/her spouse or a member of the household who lives with the applicant or his/her spouse, in order to verify the eligibility of a housing applicant pursuant to Article 54 (2) for residency:
1. The average account balance among data or information on financial assets and financial transactions defined in subparagraphs 2 and 3 of Article 2 of the Act on Real Name Financial Transactions and Confidentiality, and other data or information prescribed by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "financial information");
2. The amount of debt indicated by credit information defined in subparagraph 1 of Article 2 of the Credit Information Use and Protection Act, and other data or information prescribed by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "credit information");
3. Insurance premiums paid by a person who intends to acquire housing after he/she purchases insurance under Article 4 (1) of the Insurance Business Act, and other data or information prescribed by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "insurance information").
(3) When requesting the head of a financial institution, etc. to provide financial information, credit information or insurance information (hereinafter referred to as "financial information, etc.") pursuant to paragraph (2), the Minister of Land, Infrastructure and Transport shall submit a letter of consent to the provision of information provided by the holder of the relevant financial information, etc. In such cases, a letter of consent may be submitted in electronic form; notwithstanding Article 4-2 (1) of the Act on Real Name Financial Transactions and Confidentiality and Article 35 of the Credit Information Use and Protection Act, the head of the financial institution, etc. who has provided financial information, etc. need not notify the holder of the fact that he/she has provided financial information, etc.
(4) In order to verify data referred to in paragraphs (1) and (2), the Minister of Land, Infrastructure and Transport and a project operator (limited to the State, a local government, the Korea Land and Housing Corporation and a local public corporation) may access an information system under Article 6-2 (2) of the Social Welfare Services Act.
(5) No current or former public official of the Ministry of Land, Infrastructure and Transport and no executive officer or employee of a project operator under paragraph (4) shall use information or data he/she has obtained pursuant to paragraphs (1) and (2) for a purpose other than as prescribed by this Act; provide any other person or institution with such information or data; or divulge such information or data.
 Article 56 (Savings for Housing)
(1) The Minister of Land, Infrastructure and Transport may require any person who intends to acquire housing pursuant to this Act to save money for all or some payments for a housing unit (hereinafter referred to as "savings for housing") in advance.
(2) "Savings for housing" in paragraph (1) means general savings to subscribe for housing which eligible residents deposit to acquire national housing or privately constructed housing.
(3) Other necessary matters concerning the methods, amount and conditions of payment of savings for housing shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 57 (Restrictions, etc. on Sales Price of Housing)
(1) In cases of multi-family housing with which a project operator supplies the general public pursuant to Article 54 in any of the following areas, the project operator shall supply such housing at a price not exceeding the sales price calculated in accordance with the standards prescribed in this Article (referring to housing supplied in accordance with such standards as "housing subject to the sales price ceiling system"; hereinafter the same shall apply):
1. A public housing site;
2. An area in a non-public housing site designated by the Minister of Land, Infrastructure and Transport pursuant to Article 58 in anticipation of increase in the housing price, following deliberation by the Residence Policy Deliberative Committee established under Article 8 of the Framework Act on Residence (hereinafter referred to as the "Residence Policy Deliberative Committee").
(2) Notwithstanding paragraph (1), paragraph (1) shall not apply to any of the following housing or cases:
1. Urban residential housing;
2. Where the Free Economic Zone Committee referred to in Article 25 of the Special Act on Designation and Management of Free Economic Zones has deliberated and determined that the sales price ceiling system under this Article should not apply to multi-family housing constructed and supplied in a free economic zone designated and publicly announced under Article 4 of the aforesaid Act, deeming that such multi-family housing is related to the promotion of foreign investment;
3. Multi-family housing of at least 50 stories or with a height of at least 150 meters constructed and supplied in a special tourism district designated pursuant to Article 70 (1) of the Tourism Promotion Act.
(3) The sales price referred to in paragraph (1) is composed of housing site preparation costs and construction costs (in cases of land-lease housing for sale, the sales price means construction costs); and specific details, methods of calculation, methods of selecting appraisal institutions, etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, housing site preparation costs shall be calculated as follows: <Amended by Act No. 13782, Jan. 19, 2016; Act No. 14476, Dec. 27, 2016>
1. Where housing is supplied in a public housing site, the housing site preparation costs shall be the amount calculated by adding expenses related to the housing site prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to the supply price of the relevant housing site;
2. Where housing subject to the sales price ceiling system is supplied in a non-public housing site, the housing site preparation costs shall be the amount calculated by adding expenses related to the housing site prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to the value appraised pursuant to the Act on Appraisal and Certified Appraisers: Provided, That, where the purchase price of the housing site falls under any of the following, the amount calculated by adding expenses related to the housing site prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to the relevant purchase price (referred to the purchase price not exceeding that prescribed by Presidential Decree) may be deemed housing site preparation costs. In such cases, housing site preparation costs shall apply equally to the whole housing complex:
(a) The highest bid price at an auction or a public sale under the Civil Execution Act, the National Tax Collection Act or the Local Tax Collection Act;
(b) The purchase price of a housing site owned by a public agency, such as the State or a local government;
(c) The actual transaction price verified, as prescribed by Presidential Decree.
(4) The amount calculated by adding the amount prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to construction costs prescribed and announced by the Minister of Land, Infrastructure and Transport (hereinafter referred to as "construction costs for basic type") shall be deemed construction costs which constitute the sales price referred to in paragraph (3). In such cases, the head of a Si/Gun/Gu may specially prescribe and announce construction costs for basic type within the range prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, based upon the characteristics of the relevant area.
(5) Where a project operator has obtained approval to recruit residents of housing subject to the sales price ceiling system to be supplied in a public housing site, he/she shall include the sales price according to the following classifications (including detailed classifications prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport) in the public notice of resident recruitment:
1. Housing site preparation costs;
2. Construction costs;
3. Indirect costs;
4. Other costs prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(6) Where the head of a Si/Gun/Gu approves the recruitment of residents of housing subject to the sales price ceiling system to be supplied pursuant to Article 54 in a non-public housing site within an area meeting the standards prescribed by Presidential Decree, in which the sales price is highly likely to increase, he/she shall publicly announce the sales price according to the following classifications. In such cases, the amounts referred to in subparagraphs 2 through 6 shall be the value of each item of construction costs for basic type (where construction costs for basic type are determined for each Special Self-Governing City, Special Self-Governing Province, or Si/Gun/Gu (in cases of a Gu, referring to an autonomous Gu; hereinafter referred to as "Si/Gun/Gu"), referring to construction costs for each Si/Gun/Gu):
1. Housing site preparation costs;
2. Direct construction costs;
3. Indirect construction costs;
4. Design fee;
5. Fee for consulting engineering services;
6. Incidental costs;
7. Other costs prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(7) Where a project operator publicly announces the sales price under paragraphs (5) and (6), the details of costs examined by the Sales Price Examination Committee under Article 59 and basis for calculation shall be included in the public announcement of costs added to housing site preparation costs and construction costs prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 58 (Designation and Revocation of Designation of Areas Subject to Sales Price Ceiling System)
(1) The Minister of Land, Infrastructure and Transport may designate an area meeting the standards prescribed by Presidential Decree as an area subject to the sales price ceiling system following deliberation by the Residence Policy Deliberative Committee pursuant to Article 57 (1) 2 where the housing price of such area has soared or is likely to soar when considering the housing price, housing transactions, housing market conditions, etc.; and where the rate of increase of the housing price is substantially higher than the rate of increase of the price of commodities.
(2) Where the Minister of Land, Infrastructure and Transport designates an area subject to the sale price ceiling system pursuant to paragraph (1), he/she shall hear opinions of the Mayor/Do Governor in advance.
(3) Where the Minister of Land, Infrastructure and Transport designates an area subject to the sales price ceiling system under paragraph (1), he/she shall publicly announce the designation without delay, and notify the head of a Si/Gun/Gu having jurisdiction over the designated area of the details of the public announcement. In such cases, the head of a Si/Gun/Gu shall require the project operator to publicly announce that housing supplied in the relevant area is subject to the sales price ceiling system when he/she issues a public notice of resident recruitment.
(4) Where the Minister of Land, Infrastructure and Transport deems it unnecessary to keep an area designated as subject to the sales price ceiling system under paragraph (1), he/she shall revoke such designation, following deliberation by the Residence Policy Deliberative Committee.
(5) Where the Minister of Land, Infrastructure and Transport revokes the designation of an area subject to the sales price ceiling system, paragraph (2) and the former part of paragraph (3) shall apply mutatis mutandis with respect thereto. In such cases, "designation" shall be construed as "revocation of designation."
(6) Where the Mayor/Do Governor or the head of a Si/Gun/Gu having jurisdiction over the area designated as subject to the sales price ceiling system deems it unnecessary to keep the area designated as subject to the sales price ceiling system because housing price in the relevant area is stabilized after such designation, he/she may request a revocation of such designation from the Minister of Land, Infrastructure and Transport.
(7) Details of procedures, etc. necessary for submitting a request to revoke the designation of an area subject to the sales price ceiling system pursuant to paragraph (6) shall be prescribed by Presidential Decree.
 Article 59 (Operation, etc. of Sales Price Examination Committee)
(1) The head of a Si/Gun/Gu shall establish and operate a sales price examination committee to deliberate on matters referred to in Article 57.
(2) Where the head of a Si/Gun/Gu approves the recruitment of residents pursuant to Article 54 (1) 1, he/she shall determine whether to approve the recruitment thereof in accordance with the result of examination by the sales price examination committee.
(3) The sales price examination committee shall be comprised of not more than ten relevant experts, such as professors in the field related to housing; professionals in the field of housing construction or housing management; relevant public officials; attorneys-at-law; certified public accountants; and certified appraisers, and matters concerning procedures for the establishment and operation thereof shall be prescribed by Presidential Decree.
(4) Where members of the sales price examination committee conduct affairs prescribed in paragraphs (1) through (3), they shall conduct examinations in good faith and due care.
 Article 60 (Standards for Construction of Model Houses)
(1) Where a project operator intends to construct a model house to promote the sales of housing, he/she shall use and apply the same finishes and furniture used in the inside of the model house as those in the project plan approved under Article 15.
(2) Where a project operator, who applies finishes used in the inside of a model house different from those in the project plan approved under Article 15 or in the list of finishes, falls under any of the following cases, he/she shall indicate the supply price of such finishes so that the general public may know the relevant matters, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
1. Where he/she displays any items not included in the sales price in a model house;
2. Where it is inevitable to use different finishes, for reasons such as a shortage of products due to the insolvency, etc. of the manufacturer of the finishes.
(3) A project operator shall keep the list of finishes, and the floor plan and specifications among documents in the project plan approved pursuant to Article 15; and the layout, structure and maintenance and management of a model house shall comply with standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 61 (Restrictions on Establishment of Mortgage, etc.)
(1) No project operator shall engage in any of the following conducts without obtaining consent from eligible residents in housing constructed in accordance with a housing construction project and the housing site for a period of up to 60 days after the deadline for filing an eligible resident's application to register the transfer of the ownership of his/her house and land from the date on which the project operator files an application for approval of public notice of resident recruitment (in cases of a housing association, referring to the date of filing an application for approval of the project plan): Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree so as to promote the construction of the relevant housing:
1. Creating a real right granted by way of security, such as a mortgage or provisionally-registered security right over the relevant housing and housing site;
2. Creating a right to lease on a deposit basis, superficies, or other registerable rights to lease real estate over the relevant housing and housing site;
3. Disposing of the relevant housing and housing site by means of sale or donation.
(2) "Date on which an eligible resident may file an application to register the transfer of ownership" in paragraph (1) means the date from which he/she may reside in the housing, as notified by a project operator.
(3) When imposing restrictions on the establishment, etc. of a mortgage under paragraph (1), a project operator shall file for registration in addition to ownership registration, that the relevant housing or housing site is property the ownership of which cannot be transferred; over which a limited real right cannot be established; or which cannot be subject to seizure, provisional seizure, temporary disposition, etc. without consent from the relevant eligible resident: Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree, such as where a project operator is a public agency including the State, a local government, the Korea Land and Housing Corporation, or where a project operator does not have ownership of the relevant housing site.
(4) Registration of a housing site in additional notes under paragraph (3) shall be filed simultaneously with an application for approval of public notice of resident recruitment (where a housing association has not acquired the ownership of a portion of a housing site by the date of filing an application for approval of a project plan, referring to the registration of the transfer of ownership of that portion); and registration of the constructed housing in additional notes shall be filed simultaneously with the registration of indefeasible ownership. In such cases, matters concerning the details and cancellation of registration in additional notes shall be prescribed by Presidential Decree.
(5) In cases of the constructed housing or housing site the ownership of which is transferred; over which a limited real right is established; or which becomes subject to the seizure, provisional seizure, temporary disposition, etc. after the date they are registered in additional notes under paragraph (4), such transfer, establishment, seizure, provisional seizure, temporary disposition, etc. shall be nullified: Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree, such as where eligible residents acquire ownership of the housing site due to poor management of the project operator.
(6) Where the Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act (hereinafter referred to as "Korea Housing and Urban Guarantee Corporation") underwrites the sale of housing and requires a project operator to trust a housing site to the Korea Housing and Urban Guarantee Corporation on the grounds prescribed by Presidential Decree, such as poor financial standing or financial transactions of the project operator, notwithstanding paragraphs (1) and (3), the project operator may trust the housing site to the Korea Housing and Urban Guarantee Corporation.
(7) Where a project operator trusts a housing site to the Korea Housing and Urban Guarantee Corporation pursuant to paragraph (6), the terms and conditions of the trust contract shall include a stipulation that the seizure, provisional seizure, provisional disposition, etc. over the project operator's right to claim registration of the transfer of ownership caused by the termination of the relevant trust shall be invalid during the period of up to 60 days after the deadline for filing an eligible resident's application to register the transfer of ownership of the relevant housing site from the date of the registration of the trust.
(8) Where a project operator's right to claim registration of the transfer of ownership caused by the termination of the relevant trust becomes subject to the seizure, provisional seizure, provisional disposition, etc. during the period of up to 60 days after the deadline for filing an eligible resident's application to register the transfer of ownership of the relevant housing site from the date of the registration of the trust under paragraph (6), the said right shall be nullified.
 Article 62 (Request, etc. for Sale after Pre-Use Inspection)
(1) The owners of housing (including welfare facilities; hereafter in this Article, the same shall apply) may request a person who has recovered ownership of land (hereinafter referred to as "real landowner") to sell the relevant land at market price following legal action for deregistration of the transfer of ownership of a portion of land in the housing complex after the completion of a pre-use inspection (including a pre-use inspection of each building; hereafter in this Article the same shall apply) under Article 49.
(2) The housing owners may select a representative and bring legal action concerning a request for sale under paragraph (1). In such cases, they shall select a representative with the consent of at least three-fourth of all housing owners.
(3) A decision on legal action concerning a request for sale under paragraph (2) shall have an effect on all housing owners.
(4) Where the housing owners intend to request the sale of land pursuant to paragraph (1), the area of the relevant land shall be less than five percent of the whole area of the housing complex.
(5) The expression of intention to request the sale of land under paragraph (1) shall be delivered to the real landowner within two years after he/she recovers ownership of the relevant land.
(6) The housing owners may claim reimbursement of all expenses incurred in filing a request for sale under paragraph (1), to the project operator.
 Article 63 (Designation and Revocation of Designation of High-Speculation Areas)
(1) Where it is necessary to stabilize housing price, the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may designate a specific area as a high-speculation area following deliberation by the Residence Policy Deliberative Committee (in cases of a Mayor/Do Governor, referring to a City/Do residence policy deliberative committee under Article 9 of the Framework Act on Residence; hereafter in this Article the same shall apply), or revoke such designation. In such cases, the designation of a high-speculation area shall be limited to the minimum extent necessary to achieve the objectives of such designation.
(2) A high-speculation area shall be an area where the rate of increase of the price of housing in the relevant area is substantially higher than the rate of increase of the price of commodities; which meets standards prescribed by Presidential Decree; and where housing speculation is rampant or is likely to be rampant when considering the competition rate of subscription, housing price, housing penetration rate, a housing supply plan, housing market conditions, etc. in such area.
(3) Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor designates a high-speculation area pursuant to paragraph (1), he/she shall immediately announce such designation. The Minister of Land, Infrastructure and Transport shall notify the head of a Si/Gun/Gu having jurisdiction over such high-speculation area of the details of the announcement, and the Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Governor of a Do shall notify the head of a Si/Gun/Gu having jurisdiction over such high-speculation area of the details of the announcement, respectively. In such cases, the head of the competent Si/Gun/Gu shall require the project operator to announce the fact that the relevant housing construction area is included in a high-speculation area at the time he/she issues public notice of resident recruitment. The same shall also apply where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor revokes the designation of a high-speculation area.
(4) Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor deems that grounds for designation under paragraph (2) cease to exist in a high-speculation area, he/she shall immediately revoke the designation of the high-speculation area.
(5) Where the Minister of Land, Infrastructure and Transport designates a high-speculation area or revokes such designation pursuant to paragraph (1), he/she shall hear opinions of the relevant Mayor/Do Governor, and where the Mayor/Do Governor designates a high-speculation area or revokes such designation, he/she shall consult with the Minister of Land, Infrastructure and Transport.
(6) The Minister of Land, Infrastructure and Transport shall call a meeting of the Residence Policy Deliberative Committee each year to review whether to maintain the designation of a high-speculation area in consideration of any changes, etc. in the conditions of the stability of housing price in the relevant area, for each area designated as a high-speculation area. In such cases, where the Minister of Land, Infrastructure and Transport deems it necessary to revoke the designation of the high-speculation area in the course of review, he/she shall immediately revoke the designation of the high-speculation area and publicly announce such revocation.
(7) Where the Mayor/Do Governor or the head of a Si/Gun/Gu of an area designated as a high-speculation area deems that grounds for such designation cease to exist, such as where housing price is stabilized in the relevant area after the designation of the high-speculation area, he/she may request revocation of such designation from the Minister of Land, Infrastructure and Transport or the Mayor/Do Governor.
(8) The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor in receipt of a request to revoke the designation of a high-speculation area pursuant to paragraph (7) shall determine whether to revoke such designation within 40 days from the date of receipt of such request following deliberation by the Residence Policy Deliberative Committee, and notify the head of a local government having jurisdiction over the high-speculation area of the results of deliberation.
(9) Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor deems that grounds for designation cease to exist in a high-speculation area in the course of deliberation under paragraph (8), he/she shall immediately revoke the designation of the high-speculation area and publicly announce such revocation.
 Article 63-2 (Designation and Revocation of Designation of Areas subject to Adjustment)
(1) The Minister of Land, Infrastructure and Transport may designate any of the following areas that meets the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport as an area subject to adjustment (hereinafter referred to as “area subject to adjustment") after deliberation by the Residence Policy Deliberative Committee. In such cases, an area subject to adjustment that falls under subparagraph 1 shall be designated to the minimum extent necessary to achieve the objective of such designation:
1. An area where the housing market, etc. is, or is likely to be, overheated, taking into consideration housing price, competition rate of subscription, volume of houses resold before construction completion, housing penetration rate, etc.;
2. An area where housing transactions, such as the sale, trading, etc. of housing, shrink or are likely to shrink, taking into consideration housing price, housing transaction volume, number of unsold housing, housing penetration rate, etc.
(2) In designating an area subject to adjustment pursuant to paragraph (1), the Minister of Land, Infrastructure and Transport may preconsult with relevant agencies on the following:
1. Matters concerning guarantee services of the Korea Housing and Urban Guarantee Corporation, subsidization from the Housing and Urban Fund under the Housing and Urban Fund Act, and other relevant matters;
2. Matters concerning financial and tax support, etc. related to the sales and transactions, etc. of housing;
3. Other matters prescribed by Presidential Decree to stabilize housing market or to vitalize housing transactions of the end users.
(3) In designating an area subject to adjustment under paragraph (1), the Minister of Land, Infrastructure and Transport shall hear opinions of the competent Mayor/Do Governor in advance.
(4) When the Minister of Land, Infrastructure and Transport designates an area subject to adjustment, he/she shall publicly announce the designation without delay; and shall notify the head of the Si/Gun/Gu having jurisdiction over the area subject to adjustment of details of the public announcement. In such cases, the head of the Si/Gun/Gu shall require a project operator to state, in the public notice of resident recruitment, that the housing construction area becomes subject to adjustment.
(5) Where the Minister of Land, Infrastructure and Transport deems it unnecessary to keep an area designated as subject to adjustment, he/she shall revoke the designation of the area subject to adjustment following deliberation by the Residence Policy Deliberative Committee.
(6) Where the Minister of Land, Infrastructure and Transport revokes the designation of an area subject to adjustment pursuant to paragraph (5), paragraph (3) and the former part of paragraph (4) shall apply mutatis mutandis thereto. In such cases, "designation" shall be construed as "revocation of designation".
(7) Where a Mayor/Do Governor or the head of a Si/Gun/Gu having jurisdiction over the area designated as subject to adjustment deems it unnecessary to keep the area designated as subject to adjustment because housing price in the relevant area is stabilized after such designation, he/she may request a revocation of such designation from the Minister of Land, Infrastructure and Transport.
(8) Matters necessary for filing a request to revoke the designation of an area subject to adjustment pursuant to paragraph (7), such as the procedures therefor, shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 14866, Aug. 9, 2017]
 Article 64 (Restrictions, etc. on Resale of Housing)
(1) Where housing constructed and supplied by a project operator or the status of being selected as residents of such housing (referring to the selected resident’s right, entitlement, status, etc. to reside in housing; hereinafter the same shall apply) falls under any of the following, no resident shall resell housing or his/her status (including the sale, donation or any other activities resulting in changes to rights, but excluding inheritance; hereinafter the same shall apply) or mediate such resale during the period prescribed by Presidential Decree by up to ten years. In such cases, the period for the restriction on resale shall be prescribed by Presidential Decree on an area basis, based upon the demand and supply of housing, concern over speculation, etc.: <Amended by Act No. 14866, Aug. 9, 2017>
1. Status of being selected as residents of housing constructed and supplied in a high-speculation area;
2. Status of being selected as residents of housing constructed and supplied in an area subject to adjustment: Provided, That the foregoing shall not apply to the status of being selected as residents of housing constructed and supplied in an area prescribed by Presidential Decree taking into consideration the demand and supply of housing, etc. among the areas subject to adjustment that fall under Article 63-2 (1) 2;
3. Housing subject to the sales price ceiling system and the status of being selected as residents of such housing: Provided, That the foregoing shall not apply to the housing subject to the sales price ceiling system constructed and supplied in a non-public housing site within an area not designated as a high-speculation area or de-designated under Article 63; and prescribed by Presidential Decree taking into consideration the demand and supply of housing, concern over speculation, etc., among the areas other than the Seoul Metropolitan area specified in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act (hereafter referred to in this Article, as the "Seoul Metropolitan area"), and the status of being selected as residents of such housing;
4. Housing constructed and supplied in a non-public housing site or the status of being selected as residents of such housing: Provided, That the foregoing shall not apply to housing referred to in Article 57 (2) or the status of being selected as residents of such housing, and housing constructed and supplied in a non-public housing site, as an area prescribed by Presidential Decree taking into consideration the conditions of the demand and supply of housing, concern over speculation, etc. and the status of being selected as residents of such housing.
(2) Paragraph (1) shall not apply to cases prescribed by Presidential Decree, such as where deemed that a person selected as a resident of housing falling under paragraph (1), or person provided with housing falling under paragraph (1) 3 and 4 has no choice but to resell such housing due to the person making a living: Provided, That where a person provided with housing falling under paragraph (1) 3 and 4 resells housing, the Korea Land and Housing Corporation (where a project operator is a local public corporation, referring to the local public corporation; hereinafter the same shall apply) may purchase such housing first. <Amended by Act No. 14866, Aug. 9, 2017>
(3) Where the status of being selected as a resident of housing is resold, in violation of paragraph (1), and the relevant project operator has paid the amount calculated by adding the average interest of one year term deposit of a bank under the Banking Act to the sales price of such housing already paid (hereinafter referred to as "purchase price"; the same shall apply in this Article) to the purchaser thereof, the project operator shall be deemed to have acquired the status of being selected as the relevant resident on the date of such payment, and the foregoing shall also apply mutatis mutandis to the purchase price where the Korea Land and Housing Corporation first purchases housing subject to the sales price ceiling system pursuant to the proviso to paragraph (2).
(4) Where a project operator supplies housing falling under paragraph (1) 3 and 4, he/she shall file for registration in addition to ownership registration that ownership of such housing cannot be transferred to a third party. <Amended by Act No. 14866, Aug. 9, 2017>
(5) Registration of housing in additional notes under paragraph (4) shall be filed simultaneously with ownership registration; and "no ownership of this housing shall be transferred to a person other than the Korea Land and Housing Corporation (including a person provided with housing which the Korea Land and Housing Corporation has purchased first pursuant to the proviso to Article 64 (2)) before the period prescribed in Article 64 (1) of the Housing Act elapses after the first registration of the transfer of ownership of this housing" shall be stated in the additional notes.
(6) Paragraph (4) shall apply mutatis mutandis where the Korea Land and Housing Corporation supplies housing it has purchased first pursuant to the proviso to paragraph (2).
 Article 65 (Prohibition of Disturbance of Supply Order)
(1) No person shall transfer or acquire (including sale, donation or all other activities resulting into changes to any rights, but excluding inheritance or mortgage; hereafter in this Article the same shall apply) any of the following deeds or status, or mediate the transfer or acquisition thereof, or advertise (including any activities performed through various publications, printed materials, telephone, Internet or other media) for the transfer, acquisition or mediation thereof, to be provided with or to help someone be provided with housing constructed and supplied pursuant to this Act; and no person shall be provided with or help a third party be provided with a deed, status, or housing constructed and supplied pursuant to this Act by deceptive or other fraudulent means:
1. Status which entitles a person to be provided with housing pursuant to Article 11;
2. Certificates of savings for housing under Article 56;
3. Redeemable housing bonds under Article 80;
4. Other deed or status prescribed by Presidential Decree, which entitles a person to be provided with housing.
(2) The Minister of Land, Infrastructure and Transport or a project operator may invalidate the status of any of the following persons, which entitles him/her to apply for the purchase of housing, or revoke a housing purchase contract already concluded with him/her:
1. A person who has transferred or acquired a deed or status, in violation of paragraph (1);
2. A person who has been provided with a deed, status or housing by deceptive or other wrongful means, in violation of paragraph (1).
(3) When a project operator has paid an amount equivalent to the price of housing calculated as prescribed by Presidential Decree, to a person who has violated paragraph (1), the project operator shall be deemed to have acquired the relevant housing on the date of such payment.
(4) In cases falling under paragraph (3), where a project operator pays the price of housing to the purchaser or deposits the price of housing with a court having jurisdiction over the area where such housing is located on the grounds prescribed by Presidential Decree, such as a failure to give notice of the payment of the price of housing because he/she is unaware of who the purchaser is, he/she may order a person who has resided in such house to vacate the house within a fixed period.
(5) The Minister of Land, Infrastructure and Transport may restrict a person who violates paragraph (1) from having eligibility for residency for a period not exceeding ten years, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
CHAPTER IV REMODELING
 Article 66 (Permission, etc. for Remodeling)
(1) Where residents or users of multi-family housing (including appurtenant facilities and welfare facilities) or the management body intend(s) to remodel multi-family housing, they or it shall obtain permission from the head of a Si/Gun/Gu concerning the area subject to permission, the number of households, or the rate of consent of residents, etc. in accordance with standards, procedures, etc. prescribed by Presidential Decree.
(2) Notwithstanding paragraph (1), in cases prescribed by Presidential Decree, a housing remodeling association or a residents' representative council (referring to a residents' representative council defined in Article 2 (1) 8 of the Multi-Family Housing Management Act; hereinafter referred to as "residents' representative council") which has obtained consent from all housing owners, may implement a remodeling project after obtaining permission from the head of a Si/Gun/Gu.
(3) Where a remodeling project is implemented pursuant to paragraph (2), the general meeting of the housing remodeling association which has obtained authorization for establishment pursuant to Article 11 (1) or the residents' representative council which has obtained consent from all housing owners, shall select a construction service provider referred to in Article 9 of the Framework Act on the Construction Industry or a registered project operator deemed a construction service provider pursuant to Article 7 (1) of the aforesaid Act as a contractor.
(4) The general meeting of a housing remodeling association or a residents' representative council shall select a contractor referred to in paragraph (3) according to the method for competitive bidding prescribed by the Minister of Land, Infrastructure and Transport: Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree, such as where it is deemed difficult to select a contractor according to the method for competitive bidding.
(5) Article 19 shall apply mutatis mutandis to matters concerning remodeling referred to in paragraph (1) or (2), permitted by the head of a Si/Gun/Gu, in consultation with the heads of relevant administrative agencies.
(6) Where the head of a Si/Gun/Gu grants permission for a remodeling project to increase the number of households (limited to where the number of households exceeds the number of households prescribed by Presidential Decree; hereafter in this Article, the same shall apply) pursuant to paragraph (1), such permission shall be granted following deliberation on the impact on infrastructure or whether such remodeling project is implemented under an urban/Gu management plan, by a Si/Gun/Gu urban planning committee (hereinafter referred to as "Si/Gun/Gu urban planning committee") established pursuant to Article 113 (2) of the National Land Planning and Utilization Act.
(7) Where the residents, users, management body, or residents' representative council of multi-family housing or a housing remodeling association complete(s) a remodeling project after obtaining permission for remodeling under paragraph (1) or (2) from the head of a Si/Gun/Gu, they or it shall undergo a pre-use inspection by the head of the Si/Gun/Gu, and Article 49 shall apply mutatis mutandis to pre-use inspections.
(8) Where a person falling under paragraph (7) has obtained permission under paragraphs (1), (2) and (5) by deceptive or other wrongful means, the head of a Si/Gun/Gu may revoke his/her permission.
(9) The head of a Si/Gun/Gu who intends to permit a remodeling project to increase the number of households in an area subject to a master plan for remodeling under Article 71, shall grant permission for remodeling within the scope of the relevant master plan for remodeling.
 Article 67 (Formulation of Plans to Alter Rights)
Where a remodeling project to increase the number of households is implemented, it shall include a plan for matters prescribed by Presidential Decree (hereinafter referred to as "plan to alter rights"), such as alteration of any rights of the existing housing, and the allocation of expenses, and the said project shall be subject to approval of a project plan or permission to perform an act.
 Article 68 (Safety Inspection for Expansion Remodeling)
(1) Any person who intends to remodel his/her building for its expansion (hereinafter referred to as "expansion remodeling") pursuant to subparagraph 25 (b) and (c) of Article 2 shall request the head of a Si/Gun/Gu to conduct a safety inspection, and the head of a Si/Gun/Gu in receipt of such request shall conduct the safety inspection to verify whether it is possible to expand the relevant building.
(2) Where the head of a Si/Gun/Gu conducts safety inspections pursuant to paragraph (1), he/she shall entrust an institution prescribed by Presidential Decree with safety inspections, and the institution so entrusted shall conduct safety inspections, together with a professional architectural structural engineer (referring to a person who will be in charge of structural design) recommended by a person who intends to remodel his/her building.
(3) In cases of a building, the structure of which is identified by the head of a Si/Gun/Gu in the course of a safety inspection under paragraph (1) as having been exposed to danger, and for which a housing reconstruction project defined in subparagraph 2 (c) of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments or a small-scale housing reconstruction project defined in Article 2 (1) 3 (c) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement is determined necessary, no remodeling project to expand such building shall be implemented. <Amended by Act No. 14569, Feb. 8, 2017>
(4) The head of a Si/Gun/Gu shall inspect a building to verify the structural safety, etc. of such building after he/she permits a remodeling project to increase the number of stories pursuant to Article 66 (1). In such cases, an institution entrusted with safety inspections shall conduct a safety inspection, together with a professional architectural structural engineer referred to in paragraph (2); and where it is necessary to alter structural design after the safety inspection, a person who intends to implement a remodeling project shall require a professional architectural structural engineer to improve such structural design.
(5) An institution entrusted with safety inspections pursuant to paragraphs (2) and (4) shall conduct a safety inspection in compliance with standards prescribed and announced by the Minister of Land, Infrastructure and Transport, and shall prepare and submit a report on the result of the safety inspection to the person who has requested the safety inspection and the head of the relevant Si/Gun/Gu, in accordance with methods and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(6) The head of a Si/Gun/Gu may require a person who intends to implement a remodeling project to reimburse all or some of expenses incurred in conducting a safety inspection pursuant to paragraph (1) and (4).
(7) Other matters necessary to conduct safety inspections shall be prescribed by Presidential Decree.
 Article 69 (Review, etc. of Safety by Specialized Institutions)
(1) Where a person who intends to implement a remodeling project to increase the number of stories requests deliberations by a building committee referred to in the Building Act, the head of a Si/Gun/Gu shall entrust a specialized institution prescribed by Presidential Decree with safety review, which includes issues such as whether the scope of expansion in a structure plan is appropriate.
(2) Where a person who intends to implement a remodeling project to increase the number of stories files an application for permission pursuant to Article 66 (1), or where any design document prescribed and announced by the Minister of Land, Infrastructure and Transport is altered in the course of a safety inspection under Article 68 (4), the head of a Si/Gun/Gu shall entrust a specialized institution which has made review pursuant to paragraph (1) with the safety review, which includes issues such as whether structural safety in the design document submitted is appropriate.
(3) A specialized institution entrusted with review pursuant to paragraphs (1) and (2) shall submit the findings of its review conducted in compliance with review standards prescribed and announced by the Minister of Land, Infrastructure and Transport, to the head of a Si/Gun/Gu within the period prescribed by Presidential Decree, and the head of a Si/Gun/Gu shall incorporate the findings of the safety review submitted in matters on which any committee deliberates or for which permission is granted under this Act and other relevant Acts, except in extenuating circumstances.
(4) The head of a Si/Gun/Gu may require a person who intends to implement a remodeling project to reimburse all or some of expenses incurred in the safety review conducted by a specialized institution under paragraphs (1) and (2).
(5) The Minister of Land, Infrastructure and Transport may request the head of a Si/Gun/Gu to submit data which he/she has received pursuant to paragraph (3) and, where necessary, the Minister of Land, Infrastructure and Transport may request the head of a Si/Gun/Gu to undergo deliberation by the Central Building Committee established under the Building Act as to whether the findings of safety review are appropriate.
(6) The head of a Si/Gun/Gu shall take into account the findings of deliberation under paragraph (5), except in extenuating circumstances.
(7) Other necessary matters concerning review, etc. by a specialized institution shall be prescribed by Presidential Decree.
 Article 70 (Structural Standards for Remodeling to Increase Number of Stories)
An architect for remodeling to increase the number of stories shall prepare structural design documents meeting structural standards prescribed and announced by the Minister of Land, Infrastructure and Transport.
 Article 71 (Person Authorized to Formulate Master Plans for Remodeling and Areas Eligible for Remodeling)
(1) The Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large City shall formulate a master plan for remodeling, including the following matters, to be performed in his/her jurisdiction area for every ten-year period: Provided, That in cases prescribed by Presidential Decree, such as where urban overcrowding is less likely to occur following remodeling to increase the number of households, he/she need not formulate a master plan for remodeling:
1. Objectives and direction-setting for the plan;
2. Examination of related plans, such as an urban master plan;
3. Status of multi-family housing eligible for remodeling and a forecast of demand for remodeling to increase the number of households;
4. Examination of the impact on infrastructure following the increase of the number of households;
5. Plans to implement a remodeling project for each stage to prevent temporary concentration, etc.;
6. Other matters prescribed by Presidential Decree.
(2) Where the Governor of a Do deems it necessary to formulate a master plan for remodeling because urban overcrowding or temporary concentration is likely to occur following remodeling to increase the number of households, the Mayor of a city other than a large city shall formulate a master plan for remodeling.
(3) Guidelines, methods, etc. for preparation of a master plan for remodeling shall be prescribed by the Minister of Land, Infrastructure and Transport.
 Article 72 (Procedures for Formulation of Master Plan for Remodeling)
(1) The Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large city (including the Mayor of a city other than a large city under Article 71 (2); hereafter in Articles 72, 73 and 74, the same shall apply) intends to formulate or alter a master plan for remodeling, he/she shall make the plan available for public inspection by residents for at least 14 days, and hear the opinion of the relevant local assembly. In such cases, the local assembly shall present its opinion within 30 days from the date on which it is requested to present its opinion and, where it fails to present its opinion within 30 days, it shall be deemed to have no objection: Provided, That, where any insignificant matter prescribed by Presidential Decree is altered, he/she need not follow procedures for public inspection by residents and hearing of the opinion of the local council.
(2) Where the Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large city intends to formulate or alter a master plan for remodeling, he/she shall submit such master plan for deliberation by a City/Do urban planning committee (hereinafter referred to as "City/Do urban planning committee") or Si/Gun/Gu urban planning committee established pursuant to Article 113 (1) of the National Land Planning and Utilization Act after consulting with the heads of related administrative agencies.
(3) The heads of related administrative agencies in receipt of a request to hold consultations pursuant to paragraph (2) shall present their opinions within 30 days from the date they receive such request, except in extenuating circumstances.
(4) Where the Mayor of a large city intends to formulate or alter a master plan for remodeling, he/she shall obtain approval from the Governor of a Do; and, where the Governor of a Do intends to approve a master plan for remodeling, he/she shall submit such master plan for deliberation by the City/Do urban planning committee.
 Article 73 (Public Notice, etc. of Master Plans for Remodeling)
(1) Where the Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large city formulates or alters a master plan for remodeling, he/she shall immediately issue public notice of such master plan through the official bulletin of the relevant local government.
(2) The Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large city shall quinquennially examine whether a master plan for remodeling is appropriate and incorporate the findings of such examination in the master plan for remodeling.
(3) Other matters necessary to formulate a master plan for remodeling, such as procedures for public inspection by residents, shall be prescribed by Presidential Decree.
 Article 74 (Adjustment of Timing of Remodeling Projects to Increase Number of Households)
(1) Where a significant shortage of housing in surrounding areas or the instability of the housing market is likely to occur due to the implementation of a remodeling project to increase the number of households, the Minister of Land, Infrastructure and Transport may request the Mayor of the Special Metropolitan City, the Mayor of a Metropolitan City or the Mayor of a large city to alter a master plan for remodeling, or request the head of a Si/Gun/Gu to adjust the timing of approval or permission of a project plan for remodeling to increase the number of households; and, upon receipt of the request, the Mayor of the Special Metropolitan City, the Mayor of the Metropolitan City, the Mayor of the large city or the head of the Si/Gun/Gu shall comply with such request, except in extenuating circumstances.
(2) Where a remarkable shortage of housing in surrounding areas or the instability of the housing market is likely to occur due to the implementation of a remodeling project to increase the number of households, the Mayor/Do Governor may request the Mayor of a large city to alter a master plan for remodeling, or request the head of a Si/Gun/Gu to adjust the timing of approval or permission of a project plan for remodeling to increase the number of households following deliberation by the City/Do residence policy deliberative committee under Article 9 of the Framework Act on Residence; and, upon receipt of the request, the Mayor of a large city or the head of a Si/Gun/Gu shall comply with such request, except in extenuating circumstances.
(3) Necessary matters concerning methods and procedures for adjustment of the timing under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport or City/Do Ordinance.
 Article 75 (Establishment and Operation of Remodeling Support Centers)
(1) The head of a Si/Gun/Gu may establish and operate a remodeling support center to effectively promote remodeling.
(2) A remodeling support center may engage in the following activities:
1. Providing support for establishing a housing remodeling association;
2. Providing support for selecting an architect and a contractor;
3. Providing support for formulating a plan to alter rights;
4. Other matters prescribed by Ordinance of a local government.
(3) Matters necessary for the establishment and operation of a remodeling support center, such as the organizational structure and the number of personnel of a remodeling support center, shall be prescribed by Ordinance of a local government.
 Article 76 (Special Rules for Remodeling of Multi-Family Housing)
(1) Where the area of a portion exclusively owned (referring to an exclusively-owned portion defined in subparagraph 3 of Article 2 of the Act on Ownership and Management of Condominium Buildings; hereafter in this Article, the same shall apply) by a multi-family housing owner increases or decreases following remodeling, notwithstanding Articles 12 and 20 (1) of the aforesaid Act, no right to use a site shall be deemed changed: Provided, That in cases of a remodeling project to increase the number of households, a right to use a site may be changed in accordance with a plan to alter rights.
(2) Where the area of a portion in common use (referring to a portion in common use defined in subparagraph 4 of Article 2 of the Act on Ownership and Management of Condominium Buildings; hereafter in this Article, the same shall apply) has been changed into the area of a portion exclusively owned by a multi-family housing owner following remodeling, notwithstanding Article 12 of the aforesaid Act, the remainder of such owner's portion in common use shall not be deemed changed.
(3) Notwithstanding paragraphs (1) and (2), where the right to use a site under paragraph (1) and the area of a portion in common use under paragraph (2) are otherwise prescribed by owners pursuant to bylaws referred to in Article 28 of the Act on Ownership and Management of Condominium Buildings, such bylaws shall apply thereto.
(4) Where the owners, who notify tenants that they fall under any of the following cases at the time they enter into a rental agreement, obtain permission for remodeling pursuant to Article 66 (1) and (2), the provisions of Article 4 (1) of the Housing Lease Protection Act and Article 9 (1) of the Commercial Building Lease Protection Act shall not apply to rental agreements for the relevant remodeling building:
1. Where the owners of the relevant building (including the residents' representative council) obtain authorization to establish a housing remodeling association under Article 11 (1) at the time they enter into rental agreements;
2. Where the residents' representative council of the relevant building requests the head of the competent Si/Gun/Gu to conduct a safety inspection pursuant to Article 68 (1) to directly implement a remodeling project at the time they enter into rental agreements.
 Article 77 (Prohibition of Irregularities)
None of the following persons shall illegally acquire or provide goods or financial benefits in relation to a remodeling project of multi-family housing:
1. Residents;
2. Users;
3. The management body;
4. The residents' representative council or its members;
5. A housing remodeling association or its members.
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 78 (Lease Relationship concerning Land of Land-Lease Housing for Sale)
(1) A period for leasing land-lease housing for sale shall not exceed 40 years. In such cases, where at least 75 percent of the owners of land-lease housing for sale requests a renewal of the contract, the period of lease may be extended by an additional period of up to 40 years.
(2) Where persons provided with land-lease housing for sale have entered into rental agreements with the land owner(s), superficies shall be deemed established on such land for the period of lease referred to in paragraph (1) for the purpose of divided ownership of the relevant housing.
(3) Any person who intends to enter into a rental agreement for land-lease housing for sale shall use a standard form rental agreement prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(4) Any person who acquires possession of, or inherits, land-lease housing for sale, shall succeed a rental agreement under paragraph (1).
(5) Rent for land-lease housing for sale shall be calculated based on the cost of the preparation of the relevant land or the appraised price thereof, and matters concerning specific standards for setting and changing rent for land, procedures for paying rent, etc. shall be prescribed by Presidential Decree.
(6) In principle, rent for land under paragraph (5) shall be paid on a monthly basis and, where the land owner(s) and persons provided with housing reach agreement, such rent may be paid after being converted into a security deposit, as prescribed by Presidential Decree.
(7) Except as otherwise expressly provided for in paragraphs (1) through (6), a rental contract for land-lease housing for sale shall be governed by a rental agreement between the land owner(s) and persons provided with housing.
(8) The Act on Ownership and Management of Condominium Buildings and the Civil Act shall apply to matters not prescribed by this Act concerning land-lease housing for sale in the order of the Acts as mentioned above.
 Article 79 (Reconstruction of Land-Lease Housing for Sale)
(1) Where an owner of land-lease housing for sale intends to demolish the relevant housing and reconstruct housing pursuant to urban development-related Acts, such as the Act on the Improvement of Urban Areas and Residential Environments, before the period of lease referred to in Article 78 (1) expires, he/she may reconstruct housing with the consent of the land owner(s) pursuant to Articles 47 through 49 of the Act on Ownership and Management of Condominium Buildings. In such cases, no land owner(s) shall refuse reconstruction without just cause.
(2) Where land-lease housing for sale is reconstructed pursuant to paragraph (1), the owner(s) of the relevant housing shall be deemed the land owner(s) defined in subparagraph 9 (b) of Article 2 of the Act on Ownership and Management of Condominium Buildings.
(3) Housing reconstructed pursuant to paragraph (1) shall become land-lease housing for sale. In such cases, a contract shall be deemed concluded between the owner(s) of land and members of reconstructed housing for a period from the date of authorization for the completion of reconstructed housing to the expiration of the period of lease referred to in Article 78 (1).
(4) Notwithstanding paragraph (3), where the land owner(s) and the housing owners reach agreement, reconstructed housing may be converted into housing other than land-lease housing for sale.
 Article 80 (Issuance of Redeemable Housing Bonds)
(1) The Korea Land and Housing Corporation and a registered project operator may issue bonds redeemable in housing (hereinafter referred to as "redeemable housing bonds"), as prescribed by Presidential Decree. In such cases, a registered project operator may issue redeemable housing bonds only where his/her capital, appraised value of assets, technical human resources, etc. meet standards prescribed by Presidential Decree, and such bonds are underwritten by a financial institution or the Korea Housing and Urban Guarantee Corporation.
(2) Any person who intends to issue redeemable housing bonds shall formulate a plan for the issuance of redeemable housing bonds, and obtain approval from the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree.
(3) Requirements for the issuance of redeemable housing bonds, the period of the redemption thereof, etc. shall be prescribed by Presidential Decree.
 Article 81 (Responsibility, Conditions, etc. for Issuance)
(1) Any person who has issued redeemable housing bonds pursuant to Article 80 shall construct housing in accordance with the conditions for the issuance thereof, and redeem bonds to the bondholders.
(2) Redeemable housing bonds shall be securities in registered form, and title of a bondholder shall be transferred by means of entering the name and address of an acquirer in the original register of bonds; and no person may oppose the bond issuer and the third party unless the name of the acquirer is stated in the bonds.
(3) The Minister of Land, Infrastructure and Transport shall take necessary measures concerning methods, procedures, etc. for the use of money paid for bonds, as prescribed by Presidential Decree, so that money paid for bonds may be used in compliance with the purpose of the issuance of bonds, such as the purchase of a housing site.
 Article 82 (Validity of Redeemable Housing Bonds)
De-registration of a registered project operator pursuant to Article 8 shall not affect the validity of redeemable housing bonds issued by the registered project operator.
 Article 83 (Application of the Commercial Act)
Except as otherwise expressly prescribed in this Act, the provisions concerning the issuance of bonds under the Commercial Act shall apply to the issuance of redeemable housing bonds: Provided, That Article 478 (1) of the Commercial Act shall not apply where the Korea Land and Housing Corporation issues redeemable housing bonds, and where a registered project operator issues such bonds underwritten by a financial institution.
 Article 84 (Establishment, etc. of Special Account for National Housing Projects)
(1) Each local government shall establish and operate the special account for national housing projects in order to implement national housing projects.
(2) Funds for the special account for national housing projects under paragraph (1) shall be raised from the following:
1. Internally-generated capital;
2. Loans from the Housing and Urban Fund;
3. Government subsidies;
4. Loans from Nonghyup Bank;
5. Loans from foreign countries;
6. Proceeds from the sale of property belonging to the special account of national housing projects;
7. Principal repaid to, interest earned and other earnings by the special account for national housing projects;
8. Portion paid to the local government, among allocated charges for reconstruction under the Restitution of Excess Rebuilding Gains Act.
(3) Each local government shall report the status of the operation of the special account for national housing projects to the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree.
 Article 85 (Establishment, etc. of Association)
(1) Registered project operators may establish an association of housing project operators to promote the specialization of housing construction projects and housing site preparation projects, and the sound development of the housing industry.
(2) An association referred to in paragraph (1) (hereinafter referred to as "association"), shall be a corporate entity.
(3) An association shall be formed by registering the incorporation thereof at the seat of its main office.
(4) Rights and obligations of any member of an association whose business is suspended by the Minister of Land, Infrastructure and Transport, the Mayor/Do Governor, or the Mayor of a large city pursuant to this Act shall be suspended during a period of business suspension, and where the registration of a registered project operator is canceled or revoked, his/her membership in the association shall be relinquished.
 Article 86 (Authorization, etc. for Establishment of Association)
(1) In order to establish an association, at least 50 promoters, qualified as members, shall prepare the articles of association and obtain authorization from the Minister of Land, Infrastructure and Transport following a resolution passed at the inaugural general meeting. The foregoing shall also apply where the association intends to revise its articles of association.
(2) Where the Minister of Land, Infrastructure and Transport has granted authorization under paragraph (1), he/she shall immediately announce his/her authorization.
 Article 87 (Mutatis Mutandis Application of the Civil Act)
Except as otherwise expressly prescribed by this Act, provisions concerning incorporated associations under the Civil Act shall apply to an association.
 Article 88 (Comprehensive Management of Data, etc. Related to Housing Policy)
(1) The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may comprehensively manage information relating to housing prescribed in this Act, such as the construction, supply and management of housing (including quasi-housing; hereinafter the same shall apply in this Article), the raising of funds, trends in housing prices, to formulate and implement an appropriate housing policy; and may provide related agencies, organizations, etc. with such information.
(2) The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may request related agencies, organizations, etc. to provide data necessary for the comprehensive management of information related to housing under paragraph (1). In such cases, related administrative agencies, etc. shall comply with such request, except in extenuating circumstances.
(3) Where a project operator or a management body constructs, supplies or manages housing, he/she or it may request related agencies, organizations, etc. to provide data on or verify matters prescribed by Presidential Decree, such as verification as to whether residents own housing, and meet the eligibility requirements for residency, pursuant to this Act and orders under this Act.
 Article 89 (Delegation or Entrustment of Authority)
(1) The Minister of Land, Infrastructure and Transport may delegate part of his/her authority bestowed under this Act to a Mayor/Do Governor or the head of an agency affiliated to the Ministry of Land, Infrastructure and Transport, as prescribed by Presidential Decree.
(2) The Minister of Land, Infrastructure and Transport or the head of a local government may entrust his/her authority over the following matters, among his/her authority bestowed under this Act, to a person recognized by the Minister of Land, Infrastructure and Transport or the head of a local government, among corporations established for the purpose of fostering the housing industry, specialization of housing management, safety management of facilities, and examination of qualification, or persons entrusted with affairs concerning the operation and management of the Housing and Urban Fund pursuant to Article 10 (2) and (3) of the Housing and Urban Fund Act:
1. Registration of housing construction projects, etc. referred to in Article 4;
2. Receipt of business performance, etc. referred to in Article 10;
3. Comprehensive management of the status of unconscientious consulting engineers under Article 48 (3);
4. Comprehensive management of data related to housing policies under Article 88.
(3) The Minister of Land, Infrastructure and Transport may entrust the Minister of Health and Welfare or the head of a local government with affairs concerning requesting the heads of related agencies to provide data under Article 55 (1) and (2).
 Article 90 (Prohibition of Lending, etc. of Registration Certificates)
No registered project operator shall require any third person to implement a project, conduct affairs, or execute construction works prescribed in this Act using his/her name or trade name, or lend his/her registration certificate.
 Article 91 (Compulsory Collection of Unpaid Sales Price, etc.)
(1) Where the sales prices, security deposits and rents for national housing constructed by a project operator which is the State or a local government are unpaid, the State or a local government may compulsorily collect them in the same manner as dispositions to collect national taxes or local taxes in arrears: Provided, That the State or a local government need not compulsorily collect sales price, security deposit or rents if a resident fails to pay it due to his/her long-term illness or any extenuating circumstance.
(2) Where sales prices, security deposits and rents for national housing constructed by the Korea Land and Housing Corporation or a local public corporation are unpaid, the Korea Land and Housing Corporation or the local corporation may entrust the head of a Si/Gun/Gu having jurisdiction over the location of such housing with the collection thereof.
(3) The head of a Si/Gun/Gu entrusted with the collection of the unpaid sales prices, security deposits and rents under paragraph (2) shall collect them in the same manner as dispositions to collect local taxes in arrears. In such cases, the Korea Land and Housing Corporation or a local public corporation shall pay an entrustment fee to the relevant Si/Gun/Gu in an amount equivalent to two percent of the amounts the head of the Si/Gun/Gu collects.
 Article 92 (Monetary Rewards for Reporting Resale, etc. of Right to Purchase Ownership)
A Mayor/Do Governor may provide monetary rewards to a person who reports any person who resells the right to purchase ownership, etc. or mediate the resale thereof, in violation of Article 64, to the competent authority, as prescribed by Presidential Decree.
 Article 93 (Reports, Examinations, etc.)
(1) Where the Minister of Land, Infrastructure and Transport or the head of a local government deems it necessary, he/she may require persons who have obtained authorization, approval or registration under this Act to file necessary reports, or require related public officials to access the places of business to make necessary examinations.
(2) Where a related public official makes an examination under paragraph (1), he/she shall notify a person who will undergo an examination of his/her plan for examination, such as the date and time of examination, reasons for examination and subject-matters to be examined, seven days before the examination: Provided, That the foregoing shall not apply in cases of urgency or where it is deemed impracticable to achieve the objective of examination due to the destruction of evidence, etc. if prior notice is given.
(3) A public official who makes an examination pursuant to paragraph (1) shall carry a certificate of authority and present it to the parties concerned.
 Article 94 (Guidance and Supervision of Project Operator, etc.)
Where a project operator; residents; users; a management body; or a residents' representative council or its member, of multi-family housing, or a housing remodeling association violate(s) this Act or any order or disposition issued under this Act, the Minister of Land, Infrastructure and Transport or the head of a local government may issue an order to suspend construction works, reinstate the place of construction works, or take other necessary measures.
 Article 95 (Guidance and Supervision of Association, etc.)
The Minister of Land, Infrastructure and Transport shall guide and supervise an association, etc.
 Article 96 (Hearings)
When intending to take any of the following measures, the Minister of Land, Infrastructure and Transport or the head of a local government shall hold hearings:
1. Deregistration of a housing construction project, etc. under Article 8 (1);
2. Revocation of authorization to establish a housing association under Article 14 (2);
3. Revocation of approval of a project plan under Article 16 (3);
4. Revocation of permission to perform any activity under Article 66 (8).
 Article 97 (Persons Deemed to be Public Officials for Purposes of Penalty Provisions)
Any of the following persons shall be deemed to be a public official for the purposes of Articles 129 through 132 of the Criminal Act:
1. A person who provides consulting engineering services pursuant to Article 44 and 45;
2. A non-public official member of the Sales Price Examination Committee under Article 59.
CHAPTER VI PENALTY PROVISIONS
 Article 98 (Penalty Provisions)
(1) Any architect, contractor, consulting engineer, professional architectural structural engineer, or project operator who threaten(s) the safety of the general public because he/she cause(s) serious defects in the load-bearing structures of multi-family housing during the period for warranty liability under Article 36 (3) of the Multi-Family Housing Management Act in the course of performing design, construction works or consulting engineering services in violation of Article 33, 43, 44, 46 or 70, shall be punished by imprisonment with prison labor for not more than ten years. <Amended by Act No. 14793, Apr. 18, 2017>
(2) Any person who causes death or injury to a person in the course of committing a crime referred to in paragraph (1) shall be punished by imprisonment with prison labor for at least three years or life.
 Article 99 (Penalty Provisions)
(1) Any person who commits a crime under Article 98 (1) due to professional negligence shall be punished by imprisonment with or without prison labor for not more than five years, or by a fine not exceeding 50 million won.
(2) Any person who commits a crime under Article 98 (2) due to professional negligence shall be punished by imprisonment with or without prison labor for not more than ten years, or by a fine not exceeding 100 million won.
 Article 100 (Penalty Provisions)
Any person who violates Article 55 (3) shall be punished by imprisonment with prison labor for not more than five years, or by a fine not exceeding 30 million won.
 Article 101 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with prison labor for not more than three years, or by a fine not exceeding 30 million won: <Amended by Act No. 14344, Dec. 2, 2016>
1. A housing association or member of a housing association that outsources its affairs in violation of Article 11-2 (1), or a person to whom such affairs have been outsourced;
2. A person who resells the status of being selected as a resident or housing, or a person who mediates such resale in violation of Article 64 (1);
3. A person who violates Article 65 (1);
4. A person who selects a contractor or a person selected as a contractor before a housing remodeling association obtains authorization for the establishment thereof or a residents' representative council obtains consent of all housing owners, in violation of Article 66 (3);
5. A person who selects a contractor or a person selected as a contractor without undergoing competitive bidding, in violation of Article 66 (4).
 Article 102 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with prison labor for not more than two years, or by a fine not exceeding 20 million won: Provided, That, where a person falls under subparagraph 5 or 18, and where an amount equivalent to 50 percent of his/her gains acquired from such offense exceeds 20 million won, he/she shall be punished by imprisonment with prison labor for not more than two years, or by a fine not exceeding the amount twice as much as the gains: <Amended by Act No. 14344, Dec. 2, 2016>
1. A person who implements a project referred to in Article 14 without being registered under the aforesaid Article, or implements it with a registration acquired by deceptive or other wrongful means;
2. A person who recruits members of a housing association without filing a report or without open invitation process in violation of the proviso to Article 11-3 (1);
3. A promoter or an executive officer of a housing association who discloses documents or related information under Article 12 (1) by deception;
4. A promoter or an executive officer of a housing association who provides false information for inspections or reproduces such information in response to a request for perusal or reproduction under Article 12 (2);
5. A person who implements a project without a project plan or alteration of a project plan approved under Article 15 (1), (3) or (4);
6. A person who inflicts loss upon a project operator or residents by willfully performing defective design or construction works in violation of Article 33;
7. A person who executes housing construction works in violation of Article 34 (1) or requires any third person to execute housing construction works in violation of Article 34 (2);
8. A person who implements a project in violation of housing construction standards, etc. under Article 35;
9. A person who fails to indicate a rating, or indicates a false rating, of the performance of multi-family housing in violation of Article 39;
10. A person who fails to install a ventilation system under Article 40;
11. A person who inflicts loss upon a project operator or resident(s) due to defective housing construction works because he/she has been willfully negligent in providing consulting engineering services under Article 44 (1);
12. A person who allows a third person to use housing or a site, or a third person who uses housing or a site in violation of Article 49 (4) (including cases applied mutatis mutandis pursuant to Article 66 (7));
13. A person who constructs or supplies housing in violation of Article 54 (1);
14. A person who constructs or supplies a model house in violation of Article 54 (3);
15. A person who supplies housing in violation of Article 57 (1) or (5);
16. A person who constructs, or maintains and manages a model house in violation of Article 60 (1) or (3);
17. A person who engages in any activity provided for in Article 61 (1) in violation of the aforesaid paragraph;
18. A person who unlawfully acquires or provides goods or financial benefits in violation of Article 77;
19. A person who violates measures taken under Article 81 (3).
 Article 103 (Penalty Provisions)
Any person who willfully conducts false examinations in violation of Article 59 (4) shall be punished by imprisonment with prison labor for not more than two years or by a fine not exceeding 10 million won.
 Article 104 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with prison labor for not more than one year, or by a fine not exceeding ten million won:
1. A person who conducts business during a period of business suspension under Article 8;
2. A person who fails to disclose documents and information related to the implementation of a housing association project in violation of Article 12 (1);
3. A person who fails to comply with a request for perusal or reproduction filed by a member of the housing association in violation of Article 12 (2);
4. A person who fails to undergo an audit under Article 14 (3);
5. A person who inflicts loss upon a project operator or resident(s) due to performing defective design or construction works, in violation of Article 33;
6. A person who inflicts loss upon a project operator or resident(s) due to defective housing construction works because he/she has been negligent in providing consulting engineering services under Article 44 (1);
7. A contractor and project operator who continuously execute housing construction works even after they were given notice to make corrections, in violation of Article 44 (4);
8. A person who inflicts loss on a project operator, residents or users due to a failure to cooperate with a professional architectural structural engineer under Article 46 (1) or a failure to meet safety inspection standards under Article 68 (5), examination standards under Article 69 (3) or structural standards under Article 70;
9. A person who provides consulting engineering services without taking necessary measures despite an order to make corrections under Article 48 (2);
10. A person who violates Article 66 (1) and (2);
11. A person who lends his/her registration certificate, etc., in violation of Article 90;
12. A person who refuses, interferes with or avoids examinations, etc. to be conducted under Article 93 (1);
13. A person who fails to comply with an order to suspend construction works, etc. issued under Article 94.
 Article 105 (Joint Penalty Provisions)
(1) Where the representative of a corporation, or an agent, employee or any other worker of a corporation or an individual commits an offense referred to in Article 98 in relation to business of such corporation or individual, not only shall the person who commits such offense be punished, but the corporation or the individual also shall be punished by a fine not exceeding one billion won: Provided, That the foregoing shall not apply where the corporation or the individual has paid due attention to or diligently supervised the relevant business in order to prevent such offense.
(2) Where the representative of a corporation, or an agent, employee or any other worker of a corporation or an individual commits an offense referred to in Articles 99, 101, 102 and 104 in relation to business of such corporation or individual, not only shall the person who commits such offense be punished, but the corporation or individual also shall be punished by a fine under the relevant Articles: Provided, That the foregoing shall not apply where the corporation or the individual has paid due attention to or diligently supervised the relevant business in order to prevent such offense.
 Article 106 (Administrative Fines)
(1) Any of the following persons shall be punished by an administrative fine not exceeding 20 million won:
1. A person who fails to use a standard form rental agreement under Article 78 (3) or fails to fulfill the obligations stipulated in a standard form rental agreement;
2. A person who leases land in violation of standards concerning rent under Article 78 (5).
(2) Any of the following persons shall be punished by an administrative fine not exceeding ten million won: <Amended by Act No. 14344, Dec. 2, 2016>
1. An outsourcee who misleads or deludes people into joining a housing association in violation of Article 11-2 (3);
2. A person who fails to obtain cooperation from a professional architectural structural engineer in violation of Article 46 (1);
(3) Any of the following persons shall be punished by an administrative fine not exceeding five million won:
1. A person who fails to submit a report under Article 16 (2);
2. A consulting engineer who fails to submit a report under Article 44 (2), or submits a false report;
3. A consulting engineer who fails to submit a report under Article 45 (2), or submits a false report;
4. A person who is provided with housing in violation of Article 54 (2);
5. A person who fails to comply with an order to submit a report or make an examination issued under Article 93 (1).
(4) The Minister of Land, Infrastructure and Transport or the head of a local government shall impose administrative fines under paragraphs (1) through (3), as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Articles 2 through 8 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. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Article 2 (Repeal of Other Acts)
Article 3 (Applicability to National Housing)
The amended provisions of subparagraph 5 of Article 2 shall begin to apply from the first project operator who files an application for approval of a project plan (including a building permit under Article 11 of the Building Act) after this Act enters into force.
Article 4 (Applicability to Outsourcing of Affairs of Housing Association)
The amended provisions of Article 11 (8) shall begin to apply from the first contract for outsourcing affairs of a housing association, concluded after this Act enters into force.
Article 5 (Applicability to Grounds for Disqualification for Executive Officers of Housing Association)
The amended provisions of Article 13 shall begin to apply from the first executive officer appointed after this Act enters into force.
Article 6 (Applicability to Donation of Infrastructure)
The amended provisions of Article 17 shall begin to apply from the first project operator who files an application for approval of a project plan (including an application for approval of an alteration filed before reporting the commencement of construction works) after this Act enters into force.
Article 7 (Applicability to Special Cases concerning Remodeling of Multi-Family Housing)
The amended provisions of Article 76 (4) shall begin to apply from the first rental agreement on a remodeled building concluded or renewed after this Act enters into force.
Article 8 (Applicability to Reconstruction of Housing for Sale Constructed on Leasehold Land)
The amended provisions of Article 79 (4) shall begin to apply from the first project operator who files an application for approval to recruit residents after this Act enters into force.
Article 9 (Applicability to Administrative Fines)
The amended provision of Article 106 (2) 1 shall begin to apply from the first contract for outsourcing affairs of a housing association, concluded after this Act enters into force.
Article 10 (Special Rules for Grounds for Disqualification as Executive Officers of Housing Association such as Incompetents)
A person in whose case the effect of a declaration of incompetence or quasi-incompetence is maintained pursuant to Article 2 of Addenda of the Civil Act partly amended by Act No. 10429 shall be deemed a person under adult guardianship or a person under limited guardianship under the amended provision of Article 13 (1) 1.
Article 11 (General Transitional Measures)
Any decision, disposition, procedure and other activities made or done under the former Housing Act, as at the time this Act enters into force shall be deemed made or done pursuant to this Act.
Article 12 (Transitional Measures concerning Housing for Sale Constructed on Leasehold Land)
The provisions of subparagraph 4 of Article 2 of the former Act on Special Measures for Facilitating the Supply of Land-Leasehold Housing Units shall apply to housing for sale constructed on leasehold land under subparagraph 4 of Article 2 of the aforesaid Act, as at the time this Act enters into force.
Article 13 (Transitional Measures concerning Grounds for Disqualification as Registered Project Operators such as Incompetents)
A person in whose case the effect of a declaration of incompetence or quasi-incompetence is maintained pursuant to Article 2 of Addenda of the Civil Act partly amended by Act No. 10429 shall be deemed a person under adult guardianship or a person under limited guardianship under the amended provision of subparagraph 1 of Article 6.
Article 14 (Transitional Measures concerning Savings for Housing)
Notwithstanding the amended provisions of Article 75 (2) of the Housing Act, the former provisions shall apply to subscription savings, subscription deposits and subscription installments the accounts of which were opened before September 1, 2015 on which the Housing Act partly amended by Act No. 13379 entered into force.
Article 15 (Transitional Measures concerning Restrictions, etc. on Sales Price of Housing)
Notwithstanding the amended provisions of Article 38-2 of the Housing Act, the former provisions shall apply where a project operator filed an application for approval for the recruitment of residents (in cases of housing (excluding housing subject to a dwelling condition improvement project) supplied pursuant to the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, referring to authorization of a plan for management and disposition under Article 48 of the aforesaid Act) pursuant to Article 38 (1) by November 30, 2007, in which cases the project operator obtained approval of the project plan or applied for approval of the project plan before August 31, 2007 before the date on which the Housing Act partly amended by Act No. 8383 entered into force (September 1, 2007).
Article 16 (Transitional Measures concerning Restrictions on Housing Resale)
Notwithstanding the amended provisions of Article 41-2 (1) 3 of the Housing Act partly amended by Act No. 12959, the former provisions shall apply to housing to which the sales price ceiling system does not apply pursuant to Article 15 of this Addenda.
Article 17 (Transitional Measures concerning Procedures for Remodeling before Formulation of Master Plan for Remodeling)
Notwithstanding the amended provisions of Article 66 (9), a remodeling project to increase the number of households under the amended provisions of subparagraph 25 (c) of Article 2 may be implemented before the formulation of a master plan for remodeling (referring to before granting permission under the amended provisions of Article 66 (1)) after the Housing Act partly amended by Act No. 12115 enters into force.
Article 18 (Transitional Measures concerning Remodeling by Housing Remodeling Association)
Notwithstanding the amended provisions of the Housing Act, a housing remodeling association the establishment of which has been authorized as at the time the Housing Act partly amended by Act No. 12115 enters into force may implement a remodeling project within the scope of expansion under the former provisions.
Article 19 (Transitional Measures concerning Apartment District Development Projects)
Notwithstanding the amended provisions of the Housing Act, the former provisions shall apply to the development of apartment districts designated pursuant to the Urban Planning Act, as at the time the Housing Act partly amended by Act No. 6916 enters into force.
Article 20 (Transitional Measures concerning Penalty Provisions, etc.)
The former Housing Act and the former Act on Special Measures for Facilitating the Supply of Land-Leasehold Housing Units shall apply to penalty provisions and administrative fines for offenses committed before this Act enters into force.
Article 21 Omitted.
Article 22 (Relations to Other Acts and Subordinate Statutes)
A citation of any of the former provisions of the Housing Act by other Acts and subordinate statutes as at the time this Act enters into force shall be deemed a citation of this Act or the provisions corresponding thereto, in lieu of the former provisions of the Housing Act, if such corresponding provisions exist in this Act.
ADDENDA <Act No. 14344, Dec. 2, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Withdrawal from Membership of Housing Associations, Claims for Refund, etc.)
The amended provisions of Article 11 (7) through (9) shall begin to apply from the first housing association established with establishment approval (including approval for modification; hereinafter the same shall apply) pursuant to paragraph (1) of the same Article after this Act enters into force.
Article 3 (Applicability to Outsourcing of Affairs of Housing Association)
The amended provisions of Article 11-2 shall begin to apply from the first contract for outsourcing the affairs of a housing association entered into after this Act enters into force.
Article 4 (Transitional Measures concerning Report on Recruitment of Members of Housing Association and Open Invitation)
Notwithstanding the amended provisions of Article 11-3, any of the following cases shall be governed by the former provisions:
1. Where approval for establishment of a housing association is applied for pursuant to Article 11 (1) on or before the date this Act enters into force;
2. Where members of a housing association are recruited by making open invitation on or before the date this Act enters into force, in order to apply for the approval for establishment of the housing association.
Article 5 (Transitional Measures concerning Penalty Provisions)
The application of penalty provisions to any acts committed before this Act enters into force shall be governed by the former provisions.
Article 6 Omitted.
ADDENDA <Act No. 14476, Dec. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 14480, Dec. 27, 2016>
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. 14567, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 40 Omitted.
ADDENDA <Act No. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 14793, Apr. 18, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 14866, Aug. 9, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Preparatory Acts for Designating Areas subject to Adjustment)
(1) To enforce the amended provisions of Article 63-2, the Minister of Land, Infrastructure and Transport may designate prearranged areas subject to adjustment following deliberation by the Residence Policy Deliberative Committee before this Act enters into force.
(2) When the Minister of Land, Infrastructure and Transport designates prearranged areas subject to adjustment pursuant to paragraph (1), he/she shall publicly announce such fact without delay, and notify the heads of Sis/Guns/Gus having jurisdiction over the relevant areas of the details of the relevant public announcement.
(3) Prearranged areas subject to adjustment designated pursuant to paragraph (1) shall be deemed designated as areas subject to adjustment pursuant to the amended provisions of Article 63-2 on the date this Act enters into force.
Article 3 (Applicability to Period for Restriction of Resale, etc.)
The period for restriction of resale under the amended provisions of Article 64 shall begin to apply from an application for approval for recruiting residents (referring to a public notice of resident recruitment, in cases of a project operator that falls under subparagraph 10 (a) or (b) of Article 2) filed after this Act enters into force.
ADDENDA <Act No. 15309, Dec. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.