Law Viewer

Back Home

ENFORCEMENT DECREE OF THE HOUSING ACT

Wholly Amended by Presidential Decree No. 27444, Aug. 11, 2016

Amended by Presidential Decree No. 27471, Aug. 31, 2016

Presidential Decree No. 27472, Aug. 31, 2016

Presidential Decree No. 27473, Aug. 31, 2016

Presidential Decree No. 27602, Nov. 22, 2016

Presidential Decree No. 27860, Feb. 13, 2017

Presidential Decree No. 28095, jun. 2, 2017

Presidential Decree No. 28182, Jul. 11, 2017

Presidential Decree No. 28211, Jul. 26, 2017

Presidential Decree No. 28374, Oct. 17, 2017

Presidential Decree No. 28418, Nov. 7, 2017

Presidential Decree No. 28586, Jan. 16, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to stipulate matters prescribed by the Housing Act and matters necessary for the enforcement of said Act.
 Article 2 (Types and Scope of Detached Housing)
The types and scope of detached housing defined in subparagraph 2 of Article 2 of the Housing Act (hereinafter referred to as the "Act") shall be as follows:
1. Detached houses set forth in subparagraph 1 (a) of attached Table 1 of the Enforcement Decree of the Building Act;
2. Multi-user houses set forth in subparagraph 1 (b) of attached Table 1 of the Enforcement Decree of the Building Act;
3. Multi-unit houses set forth in subparagraph 1 (c) of attached Table 1 of the Enforcement Decree of the Building Act.
 Article 3 (Types and Scope of Multi-Family Housing)
(1) The types and scope of multi-family housing defined in subparagraph 3 of Article 2 of the Act shall be as follows:
1. Apartment houses set forth in subparagraph 2 (a) of attached Table 1 of the Enforcement Decree of the Building Act (hereinafter referred to as "apartment houses");
2. Row houses set forth in subparagraph 2 (b) of attached Table 1 of the Enforcement Decree of the Building Act (hereinafter referred to as "row houses");
3. Multi-household houses set forth in subparagraph 2 (c) of attached Table 1 of the Enforcement Decree of the Building Act (hereinafter referred to as "multi-household houses").
(2) Types of multi-family housing prescribed in paragraph (1) may be subdivided by Ordinance of the Ministry of Land, Infrastructure and Transport, based upon the criteria for supply and construction, and other relevant matters.
 Article 4 (Types and Scope of Quasi-Housing)
The types and scope of quasi-housing defined in subparagraph 4 of Article 2 of the Act shall be as follows:
1. Dormitories set forth in subparagraph 2 (d) of attached Table 1 of the Enforcement Decree of the Building Act;
2. Multi-purpose living facilities set forth in subparagraphs 4 (o) and 15 (c) of attached Table 1 of the Enforcement Decree of the Building Act;
3. Welfare houses for the elderly set forth in Article 32 (1) 3 of the Welfare of Older Persons Act, among welfare facilities for the elderly provided for in subparagraph 11 (b) of attached Table 1 of the Enforcement Decree of the Building Act;
4. Officetels set forth in subparagraph 14 (b) (ii) of attached Table 1 of the Enforcement Decree of the Building Act.
 Articles 5 (Roads by which Housing Complexes are Separated)
"Facilities prescribed by Presidential Decree" in subparagraph 12 (d) of Article 2 of the Act means any of the following roads, on which pedestrians and automobiles can pass:
1. Roads determined by Ordinance of the Ministry of Land, Infrastructure and Transport, which are included in urban or Gun planning facilities under subparagraph 7 of Article 2 of the National Land Planning and Utilization Act (hereinafter referred to as "urban or Gun planning facilities");
2. General national highways, Special Metropolitan City roads, Metropolitan City roads, or local highways referred to in Article 10 of the Road Act;
3. Other roads similar to those referred to in subparagraphs 1 and 2, established under the related statutes.
 Article 6 (Scope of Appurtenant Facilities)
"Facilities or equipment prescribed by Presidential Decree" in subparagraph 13 (c) of Article 2 of the Act means:
1. Security lights, front gates, guard rooms, and bicycle racks;
2. Landscaping facilities, retaining walls, and embankments;
3. Direction signs and public toilets;
4. Water storage facilities, underground water pumping facilities, and evacuation facilities;
5. Garbage collection and disposal facilities, wastewater treatment facilities, and septic tanks;
6. Fire-fighting facilities, cooling and heating systems (excluding district heating facilities), and security alarm systems;
7. Facilities that charge up electric vehicles defined in subparagraph 3 of Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles;
8. Other facilities or equipment prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, which are similar to the facilities or equipment prescribed in subparagraphs 1 through 7.
 Article 7 (Scope of Welfare Facilities)
"Common facilities prescribed by Presidential Decree" in subparagraph 14 (b) of Article 2 of the Act means:
1. Class I neighborhood convenience facilities set forth in subparagraph 3 of attached Table 1 of the Enforcement Decree of the Building Act;
2. Class II neighborhood convenience facilities set forth in subparagraph 4 of attached Table 1 of the Enforcement Decree of the Building Act (excluding firearm stores, morticians, communal living facilities, public pubs, and massage parlors);
3. Religious facilities set forth in subparagraph 6 of attached Table 1 of the Enforcement Decree of the Building Act;
4. Retail markets and stores among sales facilities set forth in subparagraph 7 of attached Table 1 of the Enforcement Decree of the Building Act;
5. Education and research facilities set forth in subparagraph 10 of attached Table 1 of the Enforcement Decree of the Building Act;
6. Facilities for the elderly and children set forth in subparagraph 11 of attached Table 1 of the Enforcement Decree of the Building Act;
7. Training facilities set forth in subparagraph 12 of attached Table 1 of the Enforcement Decree of the Building Act;
8. Financial business establishments among business facilities set forth in subparagraph 14 of attached Table 1 of the Enforcement Decree of the Building Act;
9. Knowledge industry centers defined in subparagraph 13 of Article 2 of the Industrial Cluster Development and Factory Establishment Act;
10. Social welfare centers defined in subparagraph 5 of Article 2 of the Social Welfare Services Act;
11. Common workplaces;
12. Public facilities for residents;
13. Markets included in urban or Gun planning facilities;
14. Other common facilities prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, which are similar to the facilities referred to in subparagraphs 1 through 13, or facilities that a person authorized to approve project plans (referring to a person authorized to approve project plans under Article 15 (1) of the Act; hereinafter the same shall apply) deems necessary for the residents' living welfare or convenience.
 Article 8 (Standards for Dividing Sections of Construction Work)
"Standards prescribed by Presidential Decree" in subparagraph 18 of Article 2 of the Act means those that meet all of the following standards:
1. A boundary with a width of at least six meters, shall be set up between construction sections by installing any of the following facilities or creating a space:
(a) A road within a housing complex under Article 26 of the Regulations on Standards, etc. for Housing Construction;
(b) An affiliated parking lot set up on the ground within a housing complex;
(c) A retaining wall or an embankment within a housing complex;
(d) A planted or landscaped green area;
(e) Auxiliary facilities or welfare facilities, such as a children's playground, which the person authorized to approve a project plan deems appropriate;
2. The number of household units of each construction section shall be at least 300.
 Article 9 (Multi-Household Units in Multi-Family Housing)
(1) "Housing constructed in compliance with construction standards, area standards, etc. prescribed by Presidential Decree" in subparagraph 19 of Article 2 of the Act means multi-family housing constructed in compliance with the following requirements:
1. A bathroom, kitchen and entrance shall be installed in each space divided into each household;
2. A door that connects household units, light-weight party wall, etc. shall be installed between household units so that one household can use all spaces of a multi-household unit, by combining them;
3. The number of households in multi-household units shall not exceed 1/3 of the total number of household units in the relevant multi-family housing complex;
4. The total area of household units for residential use only in each space divided into each household (referring to the area for residential use only, which is calculated by the method referred to in the latter part of subparagraph 6 of Article 2 of the Act; hereinafter the same shall apply) shall not exceed 1/3 of the total area of household units for residential use only in a multi-family housing complex; or the standards prescribed by the Minister of Land, Infrastructure and Transport for the ratio of the area of household for residential use only shall be satisfied.
(2) In applying the housing construction standards, etc. referred to in Article 35 of the Act to the construction of a multi-household unit in multi-family housing, the number of households in a multi-household unit shall be counted as one regardless of the number of households in separated spaces.
 Article 10 (Urban Residential Housing)
(1) "Housing prescribed by Presidential Decree" in subparagraph 20 of Article 2 of the Act means any of the following housing constructed in urban areas under Article 36 (1) 1 of the National Land Planning and Utilization Act:
1. Studio-type housing: Multi-family housing that meets all of the following requirements:
(a) The area of each household for residential use only shall not exceed 50 square meters;
(b) Bathrooms and kitchens shall be installed so that each household can reside in such housing independently from other households;
(c) Except for a bathroom and boiler room, the housing shall be consisted of a single space: Provided, That the housing may be consisted of two spaces if the area of such housing for residential use only is not less than 30 square meters;
(d) No household unit shall be built in a basement.
2. Row housing in a complex: Row housing which is not studio-type housing: Provided, That the floors used for housing can be built up to five floors following deliberation by the Building Committee referred to in Article 4 of the Building Act, pursuant to Article 5 (2) of the same Act;
3. Multi-household housing in a complex: Multi-household housing which is not studio-type housing: Provided, That the floors used for housing can be built up to five floors following deliberation by the Building Committee referred to in Article 4 of the Building Act, pursuant to Article 5 (2) of the same Act.
(2) Urban residential housing and other types of housing shall not be constructed in the same building: Provided, That any of the following cases shall be an exception thereto:
1. Where both studio-type housing and one household unit with an area of at least 85 square meters for residential use only, are constructed in the same building;
2. Where both studio-type housing and non-urban residential housing are constructed in the same building within a quasi-housing area provided for in subparagraph 1 (c) of Article 30 of the Enforcement Decree on the National Land Planning and Utilization Act or within a commercial area provided for in subparagraph 2 of the same Article.
(3) Both row housing in a complex or multi-household housing in a complex and studio-type housing shall not be constructed in the same building.
 Article 11 (Standards for Construction, and Types and Scope of Energy-Saving Eco-Friendly Housing)
The types and scope, and standards for construction of energy-saving eco-friendly housing defined in subparagraph 21 of Article 2 of the Act shall be prescribed by the Regulations on Standards, etc. for Housing Construction.
 Article 12 (Standards for Construction of Health-Friendly Housing)
The standards for construction of health-friendly housing defined in subparagraph 22 of Article 2 of the Act shall be prescribed by the Regulations on Standards, etc. for Housing Construction.
 Article 13 (Permission Requirements for Remodeling to Increase Number of Stories)
(1) "Scope prescribed by Presidential Decree" in subparagraph 25 (c) (i) of Article 2 of the Act means as follows:
1. Where the number of stories of an existing building eligible for increasing the number of stories (hereinafter referred to as "remodeling to increase the number of stories") is at least 15 stories: Three stories;
2. Where the number of stories of an existing building eligible for remodeling to increase the number of stories does not exceed 14 stories: Two stories.
(2) "Requirements prescribed by Presidential Decree, such as the possession of blue prints of a building subject to remodeling" in subparagraph 25 (c) (ii) of Article 2 of the Act means the possession of blueprints of an existing building eligible for remodeling to increase the number of stories made as at the time it was newly constructed.
CHAPTER II HOUSING CONSTRUCTION, ETC.
SECTION 1 Housing Construction Project Operators, etc.
 Article 14 (Scope, Requirements for Registration, etc. of Housing Construction Project Operators, etc.)
(1) "Number of housing units prescribed by Presidential Decree" in the main sentence of Article 4 (1) of the Act means the number of housing units or the number of households classified as follows:
1. In cases of detached housing: 20 housing units;
2. In cases of multi-family housing: 20 households: Provided, That, in cases of urban residential housing (including cases falling under Article 10 (2) 1), it shall be 30 households.
(2) "Area prescribed by Presidential Decree" in the main sentence of Article 4 (1) of the Act means 10,000 square meters.
(3) Any person who intends to file for registration of a housing construction project or a housing site preparation project under Article 4 of the Act shall satisfy all of the following requirements. In such cases, if one business operator simultaneously implements both a housing construction project and a housing site preparation project, the requirements prescribed in subparagraphs 1 and 3 shall not apply overlappingly: <Amended by Presidential Decree No. 28095, Jun. 2, 2017>
1. The person's capital shall be at least 300 million won (the appraised value of assets shall be at least 600 million won in cases of an individual);
2. The person shall employ technical experts classified as follows:
(a) Housing construction projects: At least one technical expert in the field of construction under attached Table 1 of the Enforcement Decree of the Construction Technology Promotion Act;
(b) Housing site preparation projects: At least one technical expert in the field of civil engineering under attached Table 1 of the Enforcement Decree of the Construction Technology Promotion Act;
3. Office space: A space sufficient to place office equipment necessary to perform the business.
(4) In any of the following cases, capital, technical human resources and office space prescribed in each relevant subparagraph shall be included in the requirements referred to in paragraph (3):
1. Where a person registered for construction business pursuant to Article 9 of the Framework Act on the Construction Industry (limited to construction work business or civil engineering and construction work business) intends to file for registration of a housing construction project or a housing site preparation project: Capital, technical human resources and office space already retained;
2. Where an entrusted management real estate investment trust (referring to an entrusted management real estate investment trust defined in subparagraph 1 (b) of Article 2 of the Real Estate Investment Company Act; hereinafter the same shall apply), intends to file for registration of a housing construction project: Technical human resources and office space retained by an asset management company (referring to an asset management company defined in subparagraph 5 of Article 2 of the same Act; hereinafter the same shall apply) to which the relevant entrusted management real estate investment trust has entrusted investment and operation of its assets pursuant to Article 22-2 (1) of the same Act.
 Article 15 (Registration Procedures for Housing Construction Projects, etc.)
(1) Any person who intends to file for registration of a housing construction project or a housing site preparation project under Article 4 of the Act, shall submit a written application to the Minister of Land, Infrastructure and Transport, along with documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) The Minister of Land, Infrastructure and Transport shall record a person registered for a housing construction project or a housing site preparation project pursuant to Article 4 of the Act (hereinafter referred to as "registered project operator") in the register and issue a registration certificate.
(3) If any registered matter is changed, the registered project operator shall file a report thereon with the Minister of Land, Infrastructure and Transport within 30 days from the date the reason for change arises, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the same shall not apply to any insignificant change prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 16 (Implementation of Projects by Joint Project Operators)
(1) A landowner and a registered project operator who intend to jointly construct housing pursuant to Article 5 (1) of the Act shall apply for approval of a project plan under Article 15 of the Act after satisfying all of the following requirements:
1. The registered project operator shall be:
(a) A person who satisfies all of the requirements referred to in Article 17 (1);
(b) A person registered for construction business under Article 9 of the Framework Act on the Construction Industry (limited to construction work business or civil engineering construction work business);
2. Where the housing construction site is subject to a mortgage, provisionally-registered security right, provisional seizure, right to lease on a deposit basis, superficies, etc. (hereinafter referred to as "mortgage, etc."), such mortgage, etc. shall be cancelled: Provided, That the same shall not apply where a mortgage holder, or other authorized person(s), etc. gives consent to the implementation of the relevant project;
3. Agreement shall be reached between the landowner, and the registered project operator on the following matters, as prescribed by the Act and this Decree:
(a) The use and disposal of the housing site and housing (including appurtenant facilities and welfare facilities);
(b) Allocation of project costs;
(c) Construction period;
(d) Other matters necessary for implementing the project, such as all of responsibilities relating to the implementation of the project.
(2) A housing association (excluding a housing remodeling association which does not increase the number of household units), and a registered project operator, a local government, the Korea Land and Housing Corporation (referring to the Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act; hereinafter the same shall apply), or a local public corporation (referring to a local public corporation established under Article 49 of the Local Public Enterprises Act for the purpose of housing construction projects; hereinafter the same shall apply) which intend to jointly construct housing pursuant to Article 5 (2) of the Act, shall apply for approval of a project plan under Article 15 of the Act after satisfying all of the following requirements:
1. Where the project is jointly implemented with a registered project operator, the relevant registered project operator shall satisfy the requirements prescribed in paragraph (1) 1;
2. The housing association shall have the ownership of the housing construction site: Provided, That, where a local-based housing association or a workplace-based housing association implements a project requiring approval of a district-unit plan under Article 49 of the National Land Planning and Utilization Act, jointly with a registered project operator, at least 95 percent of the ownership shall be secured;
3. The requirements prescribed in paragraph (1) 2 and 3 shall be satisfied. In such cases, the requirements prescribed in paragraph (1) 2 shall apply only to the housing construction site the ownership of which is secured.
(3) An employer who intends to construct housing jointly with a registered project operator pursuant to Article 5 (3) of the Act shall apply for approval of a project plan under Article 15 of the Act after satisfying all of the following requirements:
1. All of the requirements prescribed in paragraph (1) shall be satisfied;
2. The employer shall have the ownership of the relevant housing construction site.
 Article 17 (Criteria for Execution of Housing Construction Projects by Registered Project Operators)
(1) Any registered project operator who intends to execute housing construction projects under Article 7 of the Act shall satisfy all of the following requirements:
1. The operator's capital shall be at least 500 million won (the appraised value of assets shall be at least one billion won in cases of individuals);
2. The operator shall employ at least three technical experts in the fields of construction and civil engineering under attached Table 1 of Enforcement Decree of the Construction Technology Promotion Act. In such cases, each one of construction engineers and civil engineers under the same Table shall be included therein;
3. The operator shall have experience of constructing housing with at least 100 units or 100 household units in the last five years.
(2) Housing that can be constructed by a registered project operator pursuant to Article 7 of the Act shall be housing with not less than five residential stories: Provided, That where at least one direct stairway has been installed at each floor area of not exceeding 300 square meters of living rooms at each story, housing with six residential stories may be constructed.
(3) Notwithstanding paragraph (2), any of the following registered project operators may construct housing with at least six stories:
1. A person who has experience of constructing an apartment with at least six residential stories;
2. A person who has experience of constructing multi-family housing with at least 300 household units in the last three years.
(4) A registered project operator who executes housing construction projects under Article 7 of the Act shall not execute construction projects the costs (referring to the amount obtained by subtracting the purchase cost of housing sites from the gross construction costs) of which exceed ten times the aggregate of capital, reserve fund for capital and reserve fund for profits (five times the appraised value of assets, in cases of individuals).
 Article 18 (Criteria for Deregistration and Suspension of Business of Registered Project Operators)
(1) Criteria for deregistration and suspension of business of registered project operators referred to in Article 8 of the Act shall be as specified in attached Table 1.
(2) When issuing a disposition of deregistration or suspension of business under Article 8 of the Act, the Minister of Land, Infrastructure and Transport shall publish it in the Official Gazette without delay. The same shall also apply to the revocation of such dispositions.
 Article 19 (Temporary Failure to Meet Requirements for Registration)
"Cases prescribed by Presidential Decree, such as where a court decides to commence rehabilitation procedures and such procedures are underway pursuant to the Debtor Rehabilitation and Bankruptcy Act, or he/she temporarily fails to meet requirements for registration" in the proviso to Article 8 (1) 2 of the Act, means any of the following cases:
1. Any of the following cases, among cases where a registered project operator fails to meet criteria for capital or appraised value of assets under Article 14 (3) 1:
(a) Where a court decides to commence rehabilitation procedures and such procedures are underway pursuant to Article 49 of the Debtor Rehabilitation and Bankruptcy Act;
(b) Where the relevant registered project operator obtains a court decision to discontinue rehabilitation procedures pursuant to Article 283 of the Debtor Rehabilitation and Bankruptcy Act; and implements a rehabilitation plan, in which cases he/she is deemed to have no difficulty for implementing the rehabilitation plan;
(c) Where a creditor financial institution commences a joint administrative proceeding following a resolution by the council of creditor financial institutions pursuant to Article 5 of the Corporate Restructuring Promotion Act, and such proceeding is underway;
2. Where a corporation subject to the application of the proviso to Article 542-8 (1) of the Commercial Act fails to meet capital requirements referred to in Article 14 (3) 1 for a period not exceeding 50 days, due to a decrease in its total assets as of the end of the year immediately before the corporation fails to meet requirements for registration;
3. Where a registered project operator fails to meet technical expert requirements referred to in Article 14 (3) 2 for a period not exceeding 50 years, due to the death, missing or retirement of technical experts.
SECTION 2 Housing Associations
 Article 20 (Authorization, etc. for Establishing Housing Association)
(1) Any person who intends to obtain authorization for the establishment, modification or dissolution of a housing association pursuant to Article 11 (1) of the Act shall file a written application therefor along with the documents classified as follows, with a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu; hereinafter referred to as "head of a Si/Gun/Gu") having jurisdiction over the housing construction sites of the housing association (referring to the location of relevant housing in cases of the housing remodeling association; hereinafter the same shall apply):
1. Application for authorization for establishment: Documents classified as follows:
(a) In cases of local-based or workplace-based housing associations:
(i) Minutes of the inaugural general meeting;
(ii) The written consent to the election of the head of a housing association;
(iii) The bylaws of association signed jointly by all association members;
(iv) The roster of the association members;
(v) The project plan;
(vi) Documents attesting that the relevant person has obtained the source of right to use the land that covers at least 80 percent of the relevant housing construction site;
(vii) Other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
(b) In cases of housing remodeling associations:
(i) Documents referred to in item (a) (i) through (v);
(ii) Documents attesting to the resolutions adopted pursuant to Article 11 (3) of the Act. In such cases, matters specified in subparagraph 1 (b) (i) through (iii) of attached Table 4 shall be entered on such written resolution:
(iii) Documents attesting to the mitigation of construction criteria, if such mitigation has been determined under Article 5 of the Building Act;
(iv) Documents attesting that the period classified as follows has elapsed from the date of a pre-use inspection under Article 49 of the Act (where the temporary use of the whole multi-family housing within a housing complex is approved, referring to the date of such approval for temporary use) or from the date of approval for use under Article 22 of the Building Act:
a. Remodeling involving extensive repair: Ten years;
b. Expansion remodeling: The period prescribed in subparagraph 25 (b) of Article 2 of the Act;
2. Application for modification of approval: Documents attesting to the details of modification;
3. Application for authorization for dissolution: A written statement of accounts which has been consented by association members.
(2) The bylaws of association referred to in subparagraph 1 (a) (iii) shall include: <Amended by Presidential Decree No. 28095, Jun. 2, 2017>
1. The title and location of the association;
2. Matters concerning the qualifications for the association members;
3. The location and size of the housing construction site;
4. The expulsion, withdrawal and replacement of the association members;
5. The number, scope of duties (including the right and obligation), remuneration, methods of selection, and change and dismissal of the executives of the association;
6. Timing and procedures for sharing expenses by association members, and the accounting of the association;
6-2. Methods of calculating, timing and procedures for paying, refunds resulting from the expulsion and withdrawal of the association members;
7. Timing and methods for implementing projects;
8. Procedures and timing for convening general meetings, and requests for convening general meetings by the association members;
9. Matters requiring a resolution of general meetings, and the quorum for such resolution and procedures for passing such resolution;
10. Procedures for liquidation at the time of completion of projects, and methods and procedures for collecting and paying liquidation money;
11. Disclosure of details of spending association expenses and matters subject to the general meeting's resolutions, and methods of giving notice to the association members;
12. Procedures for amending the bylaws of association;
13. Other matters necessary to implement the association's project, and to operate the association.
(3) Notwithstanding paragraph (2) 9, matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport shall be subject to a resolution by the general meeting.
(4) Adopting any resolution at a general meeting shall require the personal attendance of at least 10 percent of the association members: Provided, That the inaugural general meeting, or a general meeting adopting a resolution on any matter prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport pursuant to paragraph (3), shall require the personal attendance of at least 20 percent of the association members. <Newly Inserted by Presidential Decree No. 28095, Jun. 2, 2017>
(5) A housing association (excluding any housing remodeling association) shall be comprised of at least 50 percent of the number of the households in the housing scheduled to be constructed (referring to the number of households in the project plan as at the time the establishment of the housing association is authorized, but excluding the number of households in the housing to be constructed and supplied as rental housing pursuant to Article 20 of the Act; hereinafter the same shall apply), and the number of members of the housing association shall be at least 20: Provided, That, where the number of households is changed in the course of granting approval, etc. of the project plan under Article 15 of the Act, such changed number of households shall be the basis thereof.
(6) Anyone who acquires a building from a person who has consented to the establishment of a housing remodeling association shall be deemed to have consented to the establishment thereof.
(7) The head of a Si/Gun/Gu shall determine whether he/she authorizes the establishment of a housing association by comprehensively examining the following matters concerning the relevant housing construction sites. In such cases, he/she shall not authorize the establishment of the housing association if the relevant housing construction sites overlap with the housing construction sites of other already-authorized housing associations:
1. Whether housing can be constructed on the relevant housing construction sites, taking into account the criteria for construction, restriction on construction, etc. under the Act or related statutes;
2. Whether the relevant housing construction project is consistent with urban or Gun plans (referring to urban or Gun plans defined in subparagraph 2 of Article 2 of the same Act) established, or scheduled to be established during the period of such project, under the National Land Planning and Utilization Act;
3. Plans for land utilization which have been already established;
4. Where the source of right to use any land in the housing construction site is not obtained, whether the location of the relevant land is likely to impede a housing construction project that has to be undertaken according to the project plan.
(8) Detailed matters necessary for the establishment, modification or dissolution of a housing association shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 21 (Qualifications for Association Members)
(1) Persons eligible for membership in a housing association under Article 11 of the Act shall be classified as follows:
1. A member of a local-based housing association: A person who meets all of the following requirements:
(a) He/she shall be either of the following (including where he/she is qualified as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transportation, based upon housing types, methods of selecting residents, etc.; hereafter in this subparagraph, the same shall apply) from the date on which an application is filed for authorization for establishment of the housing association (where the relevant housing construction site is located in a high speculation district provided for in Article 63 of the Act, the date refers to the date that falls under one year prior to the date on which the application is filed for authorization for establishment of the housing association; hereinafter the same shall apply) to the date on which he/she is able to move into the housing belonging to the relevant housing association:
(i) The head of a household in which all household members including himself/herself (including the householder's spouse who has not been entered in the householder's household resident registration card, and the persons who are in a household of such spouse; hereafter in subitem (ii), the same shall apply) have not owned any house, in accordance with the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
(ii) The head of a household in which only one of the household members owns one house with an area not exceeding 85 square meters for residential use only, in accordance with the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
(b) He/she shall have been residing in the area classified in subparagraph 11 (a) of Article 2 of the Act for at least six consecutive months, as of the date of applying for authorization for establishment of the housing association;
2. A member of a workplace-based housing association: A person who satisfies all of the following requirements:
(a) He/she shall be a person falling under subparagraph 1 (a): Provided, That, in cases of a workplace-based housing association to supply national housing, only the householders who fall under subparagraph 1 (a) (i) shall be qualified as a member of the workplace-based housing association;
(b) He/she shall work for the same State agency, local government or corporation located within the same Special Metropolitan City, Metropolitan City, Special Self-Governing City, Special Self-Governing Province, Si or Gun (excluding any Gun located in the jurisdictional area of the Metropolitan City) as of the date of applying for authorization for establishment of the housing association;
3. A member of a housing remodeling association: Any of the following persons. In such cases, if the ownership of the relevant multi-family housing, welfare facilities, or facilities other than multi-family housing referred to in item (c) belongs to several persons, the one who represents the said several persons shall be deemed to be the association member:
(a) Owners of the multi-family housing constructed according to a project plan approved pursuant to Article 15 of the Act;
(b) In cases of remodeling housing concurrently with welfare facilities, the owner of the relevant welfare facilities;
(c) The owner of the multi-family housing constructed for the purpose of parceling-out by obtaining a construction permit pursuant to Article 11 of the Building Act (where any facility other than multi-family housing exists in the relevant building, including the owner of the relevant facility).
(2) Where the head of a Si/Gun/Gu deems that any member of a housing association has been temporarily disqualified as the head of a household due to inevitable causes, such as employments, disease treatments, studying overseas, marriage, etc., such member shall be deemed qualified as the head of the household under paragraph (1).
(3) Procedures for verifying the qualifications of association members under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 22 (Replacement, New Joining, etc. of Members of Local-Based or Workplace-Based Housing Association)
(1) No local-based housing association and workplace-based housing association shall replace the relevant association's member with a new member, or allow a person to newly join after obtaining authorization for its establishment: Provided, That any of the following cases shall be an exception thereto:
1. Where additional recruitment has been approved by the head of a Si/Gun/Gu on condition that the number of association members do not exceed the number of household units in the housing to be constructed, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
2. Where a new member fills a vacancy that arises for any of the following reasons:
(a) Death of an association member;
(b) Where the status of being selected as a resident (referring to the rights, qualification or status, etc. to be entitled to reside in the relevant housing) after a project plan is approved under Article 15 of the Act (referring to the time after the ownership (including cancellation of mortgage where the relevant housing construction site is an object of mortgage, etc.) of all of the relevant housing construction site is secured, where the local-based housing association or the workplace-based housing association has obtained approval of the project plan under Article 15 of the Act without acquiring the ownership of all of the relevant housing construction site pursuant to the proviso to Article 16 (2) 2), has been altered due to the grounds of transfer, donation or court decision, etc.: Provided, That this shall not apply where any resale is prohibited under Article 64 of the Act;
(c) Where the number of association members falls short of 50 percent of the number of household units in the housing to be constructed, due to withdrawal, etc. of membership;
(d) Where any membership in the relevant housing association is relinquished due to disqualification;
(e) Where the number of association members falls short of 50 percent of the altered number of household units if the number of household units in the housing to be constructed is altered in the course of approval of a project plan under Article 16 of the Act.
(2) Whether a person who has newly joined in a housing association or a person who fills the vacancy pursuant to paragraph (1) is qualified as an association member shall be determined based on the date of applying for authorization for establishment of the relevant housing association.
(3) An application for approving the additional recruitment of association members under paragraph (1) and an application for changing authorization for the housing association following the additional recruitment of its members shall be each filed on or before the date of applying for approval of the project plan pursuant to Article 15 of the Act.
 Article 23 (Application, etc. for Approval of Project Plans of Housing Association)
(1) A housing association shall apply for approval of a project plan under Article 15 of the Act (referring to permission under Article 66 (2) of the Act in cases of a remodeling project not subject to approval of a project plan under Article 27 (1) 2) within two years from the date of obtaining authorization for its establishment.
(2) No housing association shall use any public housing site owned by any registered project operator for its housing construction site: Provided, That any public housing site acquired through an auction or public sale shall be an exception thereto.
 Article 24 (Reporting on Establishment of Workplace-Based Housing Association)
(1) Any person who intends to establish a workplace-based housing association to supply national housing pursuant to Article 11 (5) of the Act shall submit to the competent head of a Si/Gun/Gu a written report thereon, along with the following documents. In such cases, the public official in charge shall verify a certified copy of the resident registration card through administrative data matching under Article 36 (1) of the Electronic Government Act, and where the reporting person fails to consent to verification, he/she shall submit it directly:
1. A roster of the association members;
2. Documents attesting that the person to be an association member works in the relevant workplace (limited to the documents confirmed by the head of the relevant workplace);
3. Documents attesting that the person to be an association member does not own any house.
(2) Except as otherwise expressly provided for in paragraph (1), the procedures for submitting a report on a workplace-based housing association to supply national housing, the methods of supplying the housing, etc. shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 25 (Disclosure of Data)
"Documents and data prescribed by Presidential Decree" in Article 12 (1) 8 of the Act means the following documents and related data:
1. An annual fund management plan;
2. A statement of deposit and withdrawal of funds for each month;
3. Documents concerning the monthly construction progress;
4. Documents concerning an application for parceling-out of housing supplied pursuant to Article 54 (1) of the Act by a project operator which is a housing association, and the data related thereto.
 Article 26 (Auditing of Housing Association)
(1) A housing association shall, pursuant to Article 14 (3) of the Act, be audited by an auditor referred to in Article 3 of the Act on External Audit of Stock Companies within 30 days from any of the following dates:
1. The date on which three months have elapsed from the date of obtaining authorization for establishment of the housing association under Article 11 of the Act;
2. The date on which three months have elapsed from the date of obtaining approval of the project plan under Article 15 of the Act (in cases of a remodeling project not subject to approval of a project plan under Article 27 (1) 2, referring to permission under Article 66 (2) of the Act);
3. The date on which an application for a pre-use inspection or for approval for temporary use has been filed under Article 49 of the Act.
(2) Criteria for the auditing under Article 5 of the Act on External Audit of Stock Companies shall apply to the auditing under paragraph (1).
(3) Any person who has audited a housing association pursuant to paragraph (1) shall notify the results of such audit respectively to the head of the competent Si/Gun/Gu and the housing association within 15 days from the date of completing the audit.
(4) Where the head of a Si/Gun/Gu deems that any illegal or unfair matters exist after examining the findings of auditing notified pursuant to paragraph (3), he/she shall notify the relevant housing association of such details and demand the corrections thereof.
 Article 26-2 (Guarantee of Project Completion)
"At least the percentage prescribed by Presidential Decree" in Article 14-2 (1) of the Act means at least 30 percent of the total construction costs.
[This Article Newly Inserted by Presidential Decree No. 28095, Jun. 2, 2017]
SECTION 3 Approval, etc. of Project Plans
 Article 27 (Approval of Project Plans)
(1) "Number of housing units prescribed by Presidential Decree" in the main sentence of Article 15 (1) of the Act, means the number of housing units and the number of households classified as follows:
1. Detached housing: 30 housing units: Provided, That, in cases of any of the following detached housing, the number of housing units shall be 50:
(a) Detached housing constructed on a large parcel of land developed through a public project specified in subparagraph 24 of Article 2 of the Act, which is not divided into individual parcels;
(b) Traditional Korean-style housing defined in subparagraph 16 of Article 2 of the Enforcement Decree of the Building Act;
2. Multi-family housing: 30 households (in cases of remodeling, the number of households shall be based on the number of increased households): Provided, That, where any of the following multi-family housing is constructed (excluding remodeling), the number of households shall be 50:
(a) Row housing in a complex or multi-household housing in a complex, which meets all of the following requirements:
(i) Area of each household for residential use only shall exceed 30 square meters;
(ii) The width of the access road to the relevant housing complex shall exceed six meters: Provided, That, where at least two access roads to the relevant housing complex exist, the width of an access road may be at least four meters but less than six meters, if all of the following requirements are satisfied:
a. The combined width of the two access roads shall be at least ten meters;
b. The travel distance between an access road with a width of at least four meters but less than six meters, and a road prescribed in Article 5 shall not exceed 200 meters;
(b) Multi-family housing constructed by any of the following rearrangement projects in a rearrangement zone defined in subparagraph 1 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments: Provided, That multi-family housing constructed in an area designated and publicly announced by the head of a Si/Gun/Gu in which no infrastructure for rearrangement has been constructed as specified in a plan to construct infrastructure for rearrangement under Article 13 (1) 4 of the Enforcement Decree of the same Act, shall be excluded herefrom:
(i) A residential environment improvement project defined in subparagraph 2 (a) of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments (applicable only where such project is implemented by the method falling under Article 6 (1) 1 of the same Act;
(ii) A residential environment management project defined in subparagraph 2 (e) of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments.
(2) "Area prescribed by Presidential Decree" in the main sentence of Article 15 (1) of the Act means 10,000 square meters.
(3) "Cases prescribed by Presidential Decree" in the main sentence of Article 15 (1) of the Act means any of the following cases: <Amended by Presidential Decree No. 28374, Oct. 17, 2017>
1. Where a housing construction project is implemented in an area exceeding 3.3 million square meters, designated and publicly announced by the Minister of Land, Infrastructure and Transport among areas wherein a housing site development project under the Housing Site Development Promotion Act or an urban development project under the Urban Development Act is implemented;
2. Where a housing construction project is implemented in an area designated and publicly announced by the Minister of Land, Infrastructure and Transport as a way of remedying the urgent housing shortages in the Seoul Metropolitan areas (referring to the Seoul Metropolitan areas defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act; hereinafter the same shall apply) or Metropolitan City areas; to promote the regionally-balanced development; or to make an adjustment in a wide area;
3. Where a project for constructing public housing defined in subparagraph 3 (b) of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public housing construction project") is implemented by an entrusted management real estate investment trust in which any of the following persons, solely or jointly, invests in excess of 50 percent of the total shares (applicable only where the asset management company of the relevant real estate investment trust is the Korea Land and Housing Corporation):
(a) The State;
(b) A local government;
(c) The Korea Land and Housing Corporation;
(d) A local corporation.
(4) “Cases prescribed by Presidential Decree, such as where the person constructs housing and non-housing facilities in the shape of the same building” in the proviso to Article 15 (1) of the Act means any of the following cases:
1. In cases of a project that satisfies all of the following requirements:
(a) Housing with less than 300 households and non-housing facilities shall be constructed in the same building in a quasi-residential area referred to in subparagraph 1 (c) of Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act or a commercial area referred to in subparagraph 2 of the same Article (excluding any commercial area for distribution);
(b) The ratio of the total floor area of the housing to the total floor area of the relevant building shall be less than 90 percent;
2. In cases of a project financed by the National Agricultural Cooperative Federation defined in subparagraph 4 of Article 2 of the Agricultural Cooperatives Act, among living environment improvement projects defined in subparagraph 10 of Article 2 of the Rearrangement of Agricultural and Fishing Villages Act.
(5) Where the same project operator (including a project owner under Article 2 (1) 12 of the Building Act) classified as follows intends to construct housing by dividing a large parcel of housing complex into several construction sections, the scale of housing construction referred to in paragraphs (1) and (4) shall be computed based on the number of housing units or households of all of the construction sections. In such cases, in applying the criteria for constructing housing, criteria for installing appurtenant facilities and welfare facilities and criteria for preparing housing sites, all of the construction sections shall be deemed to be a single housing site:
1. Where the project operator is an individual: An individual project operator, and his/her spouse or lineal ascendant or descendant;
2. Where the project operator is a corporation: A corporate project operator and its executives.
(6) "Documents prescribed by Presidential Decree, such as a plot plan of housing, appurtenant facilities and welfare facilities, and design documents for site preparation works" in Article 15 (2) of the Act means the documents classified as follows:
1. In cases of an application for approval of a housing construction project plan: The following documents: Provided, That, where a sample design document referred to in Article 29 is submitted for approval of a project plan, the documents falling under item (d) shall be excluded:
(a) A written application;
(b) A project plan;
(c) A plot plan for housing, appurtenant facilities and welfare facilities;
(d) A design document of construction works: Provided, That it shall be submitted only where site preparation works are executed before housing construction works; and it shall refer to a document prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport if a project operator is the State, a local government, the Korea Land and Housing Corporation, or a local corporation;
(e) Documents stating the matters referred to in Articles 96 (1) 3 and 97 (6) 3 of the Enforcement Decree of the National Land Planning and Utilization Act (applicable only if land is expropriated or used under Article 24 (2) of the Act);
(f) Documents attesting to the fact under Article 16 (applicable only if a joint project is executed; and it shall refer to documents attesting to the facts under Article 16 (1) 2 and 3 if a housing association under Article 11 (1) of the Act solely executes a project);
(g) Documents necessary for the consultation under Article 19 (3) of the Act;
(h) Documents stating the matters concerning vesting of public facilities under Article 29 (1) of the Act;
(i) A written authorization for the establishment of a housing association (applicable only to a housing association);
(j) Documents attesting to the facts under Article 51 (2) of the Act or the facts under Article 17 (1) of this Decree (applicable only to a person not registered for construction business under Article 9 of the Framework Act on the Construction Industry);
(k) Other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport;
2. In cases of an application for approval of a housing site preparation project plan: The following documents:
(a) A written application;
(b) A written project plan;
(c) A design document of construction works: Provided, That it shall refer to a document prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport if a project operator is the State, a local government, the Korea Land and Housing Corporation, or a local corporation;
(d) Documents referred to in subparagraph 1 (e), (g) and (h);
(e) A plan for supplying prepared housing sites;
(f) Other documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 28 (Construction and Supply of Housing after Dividing Housing Complex)
(1) "Housing complex with at least the number of housing units prescribed by Presidential Decree" in the former part of Article 15 (3) of the Act means a housing complex whose total number of household units is at least 600.
(2) Detailed standards concerning procedures and methods for construction and supply of housing after dividing a housing complex into construction sections under Article 15 (3) of the Act shall be prescribed and publicly announced by the Minister of Land, Infrastructure and Transport.
 Article 29 (Approval of Sample Design Documents)
(1) When intending to construct the same-scale housing in large quantities, the Korea Land and Housing Corporation, a local public corporation, or a registered project operator may draw up the sample design documents by type of housing and submit them to the Minister of Land, Infrastructure and Transport for the approval therefor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) When intending to grant approval under paragraph (1), the Minister of Land, Infrastructure and Transport shall consult with the heads of related administrative agencies, and the agencies in receipt a request for consultation shall notify the Minister of Land, Infrastructure and Transport of their opinions within 15 days from the date on which they receive such request, except in exceptional circumstances.
(3) Upon granting approval of the sample design documents under paragraph (1), the Minister of Land, Infrastructure and Transport shall notify a Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor") of the details thereof.
 Article 30 (Procedures, etc. for Granting Approval of Project Plans)
(1) Upon receipt of an application for approval of a project plan under Article 15 of the Act, a person authorized to approve project plans shall notify the project operator of whether he/she grants such approval within 60 days from the receipt of said application, except in extenuating circumstances.
(2) Upon granting approval of a housing construction project pursuant to Article 27 (3), the Minister of Land, Infrastructure and Transport shall notify the competent Mayor/Do Governor of the details thereof without delay.
(3) Upon granting approval for an alteration of a project plan under the main sentence of Article 15 (4) of the Act to the project operator who has received a loan from the Housing and Urban Fund established under the Housing and Urban Fund Act (hereinafter referred to as the "Housing and Urban Fund"), the person authorized to approve project plans shall notify the trustee of the Fund, who has dealt with a loan for the relevant project, of the details thereof.
(4) Where a project operator who has received a loan from the Housing and Urban Fund applies for approval for an alteration of a project plan under the main sentence of Article 15 (4) of the Act to change the project operator, he/she shall submit a written consent to the change of the project operation by the trustee of the Fund.
(5) When publicly notifying the granting of approval of a project plan pursuant to the former part of Article 15 (6) of the Act, the person authorized to approve project plans shall include the following matters therein:
1. The title of a project;
2. The name and address of a project operator (in cases of a corporation, referring to its title, location, and the name and address of its representative);
3. The location and size of the place where housing is constructed and the scale of constructed housing;
4. The period for implementing a project;
5. Matters deemed to be publicly notified pursuant to Article 19 (1) of the Act.
 Article 31 (Extension of Work Commencement Period)
"Justifiable grounds prescribed by Presidential Decree" in the proviso to Article 16 (1) of the Act means any of the following cases:
1. Where excavation of buried cultural heritage is permitted by the Administrator of the Cultural Heritage Administration pursuant to Article 11 of the Act on Protection and Inspection of Buried Cultural Heritage;
2. Where the commencement of construction works is delayed due to a dispute on ownership against the relevant place of project execution (applicable only where the litigation procedure is in progress);
3. Where the commencement of construction works is delayed because the conditions imposed when granting approval of a project plan under Article 15 of the Act are implemented;
4. Where the commencement of construction works is delayed due to a natural disaster or uncontrollable causes which are not attributable to the project operator;
5. Where the commencement of construction works is delayed due to the delay in the construction of infrastructure included in a public housing site development and preparation plan;
6. Where a person authorized to grant approval for project plans deems that construction works cannot commence in any extenuating circumstance, such as concern about worsening business feasibility due to an increase, etc. in unsold houses in the relevant area or the housing construction industry that remains stagnant.
 Article 32 (Revocation of Approval of Project Plan)
"Matters prescribed by Presidential Decree submitted by a project operator, such as a plan to implement the project plan and a financing plan" in Article 16 (4) of the Act means:
1. A plan to implement a project plan which includes the construction schedule and the estimated completion date;
2. A financing plan for project costs which includes the status of funds raised for project costs and the methods of financing;
3. A plan to deal with lawsuits related to the relevant project and other matters of dispute.
 Article 33 (Organization of Joint Committee)
(1) A joint committee referred to in Article 18 (3) of the Act (hereinafter referred to as "joint committee") shall consist of between 25 and 30 members, including one chairperson and one vice chairperson.
(2) The chairperson of a joint committee shall be elected by and from among the members who are recommended by the chairpersons of committees set forth in Article 18 (3) of the Act.
(3) The vice chairperson of a joint committee shall be appointed by the chairperson from among public officials of the local government to which a person authorized to grant approval for project plans belongs.
(4) Members of a joint committee shall consist of at least five members of each committee set forth in Article 18 (3) of the Act.
 Article 34 (Exclusion, Challenge and Abstention of Members)
(1) If a member of a joint committee (hereafter referred to as "member" in this Article and Article 35) falls under any of the following cases, he/she shall be excluded from the deliberation and resolution process in the joint committee:
1. Where he/she, or a person who is or was his/her spouse, becomes a party to the relevant agenda (where the party is a corporation, organization, etc., including the executive officers thereof; hereafter the same shall apply in this subparagraph and subparagraph 2) or is holding any right or duty jointly with the party to such agenda;
2. Where he/she is or was a relative of a party to the relevant agenda;
3. Where he/she has given any advice, or conducted any research, service (including any subcontract) or appraisal or examination with respect to the relevant agenda;
4. Where he/she or any corporation or organization to which he/she belongs is or was an agent of a party to the relevant agenda;
5. Where any corporation, etc. in which he/she serves as an executive officer or employee or has served as an executive officer or employee within the past three years, has given any advice, or conducted any research, service (including any subcontract) or appraisal or examination with respect to the relevant agenda.
(2) If a party to the relevant agenda has any grounds to believe that impartial deliberation and resolution of any member will be difficult to be expected, the party may file a request for the challenge to him/her with the joint committee, and the decision on the challenge shall be made by a resolution of the joint committee. In such cases, the member subject to such request for challenge shall not participate in the relevant resolution.
(3) A member shall, if falling under any subparagraph of paragraph (1), voluntarily abstain from the deliberation and resolution on the relevant agenda.
 Article 35 (Methods of and Procedures for Consolidated Review)
(1) To conduct consolidated review on a project plan under Article 18 (3) of the Act, a person authorized to grant approval of the project plan shall notify the members of the date and time, location and agenda of the meeting by no later than seven days before the meeting of the joint committee.
(2) A meeting of the joint committee shall be opened with the attendance of a majority of all incumbent members, and the resolutions thereof shall require the consent of a majority of those present.
(3) If deemed necessary with respect to consolidated review, or if requested by a person authorized to grant approval of project plans, the chairperson of the joint committee may have any party or person involved appear and state his/her opinion or give an explanation.
(4) The joint committee shall conduct reviews by examining matters related to approval of a project plan, opinions and explanations of the parties, persons involved, etc., and the opinions, etc. of the related agencies in a comprehensive manner.
(5) The joint committee shall record the details of its meeting when it holds a meeting; enter the following matters in the minutes; and preserve them in accordance with the Public Records Management Act:
1. The date and time, and place of the meeting, and whether to disclose the meeting;
2. The signature book of the members who attend the meeting;
3. Items on the agenda and the result of review;
4. Other important matters discussed, etc.
(6) Allowances and travel expenses may be paid to members who attend a meeting of the joint committee: Provided, That this shall not apply where a public official member attends a meeting directly related to the affairs for which he/she is responsible.
(7) Except as otherwise expressly provided for in this Decree, matters necessary for the operation of the joint committee shall be determined by the chairperson following resolutions by the committee.
 Article 36 (Criteria for Exemption from Fees, etc.)
"Rate prescribed by the Presidential Decree" in Article 19 (5) of the Act means 50 percent.
 Article 37 (Ratio, etc. of Rental Housing under Housing Construction Projects, etc.)
(1) "Ratio prescribed by Presidential Decree" in Article 20 (2) of the Act means the ratio prescribed by Ordinance of the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (hereinafter referred to as "City/Do") within the range between 30 percent and 60 percent.
(2) Upon receipt of a request for designation of an acquirer from the head of a Si/Gun/Gu pursuant to Article 20 (2) of the Act, the Minister of Land, Infrastructure and Transport shall designate an acquirer and notify the Mayor/Do Governor thereof within 30 days.
(3) A Mayor/Do Governor in receipt of the notification under paragraph (2) shall, without delay, consult about the acquisition of rental housing with an acquirer designated by the Minister of Land, Infrastructure and Transport.
 Article 38 (Entrustment of Land Purchase Affairs, etc.)
(1) Where a project operator (limited to the State or the Korea Land and Housing Corporation) entrusts the affairs concerning land purchase or compensation for loss to the head of a local government under Article 26 (1) of the Act, he/she shall specify the land to be purchased and the conditions of entrustment.
(2) "Entrustment fee at a rate prescribed by the Presidential Decree" in Article 26 (2) of the Act means the entrustment fee specified in the attached Table 1 of the Enforcement Decree of the Act on the Acquisition of and Compensation for Land, etc. for Public Works Projects.
 Article 39 (Installation, etc. of Arterial Facilities)
(1) "Number of housing units prescribed by Presidential Decree" in the main sentence of Article 28 (1) of the Act means the number of housing units or household units classified as follows:
1. In cases of detached housing: 100 housing units;
2. In cases of multi-family housing: 100 household units (in cases of remodeling, the number of household units shall be based on the number of increased household units).
(2) "Area prescribed by Presidential Decree" in the main sentence of Article 28 (1) of the Act means 16,500 square meters.
(3) Upon approving a project plan for construction or site preparation of housing larger than the scale referred to in paragraph (1) or (2), a person authorized to approve the project plan shall notify the persons responsible to install arterial facilities pursuant to Article 28 (1) of the Act (hereinafter referred to as "persons responsible to install arterial facilities") of such approval, without delay.
(4) Where a person responsible to install arterial facilities fails to install such arterial facilities by the scheduled date of a pre-use inspection provided for in the project plan due to any extenuating circumstance, he/she shall notify the relevant project operator of such circumstance and the period during which he/she can install arterial facilities, within one month after receipt of the notice under paragraph (3).
(5) The scope of installation of arterial facilities for each type under Article 28 (6) of the Act shall be as specified in attached Table 2.
 Article 40 (Reimbursement for Arterial Facility Installation Costs)
(1) Where a project operator intends to install the arterial facilities at his/her own expenses pursuant to Article 28 (7) of the Act, the person responsible to install arterial facilities shall conclude with the project operator a contract for reimbursing the costs incurred in installing such arterial facilities.
(2) The deadline for reimbursement of installation costs set forth in a contract for reimbursement under paragraph (1) shall be within three years from the date of a pre-use inspection of the relevant works.
(3) The amount to be reimbursed by a person responsible to install arterial facilities under the contract for reimbursement pursuant to paragraph (1), shall be the aggregate of the following amounts:
1. Installation costs;
2. Interests on the installation costs until the completion of reimbursements. In such cases, the relevant interest rate shall be the interests on fixed deposits at the time of the date of concluding the contract for reimbursing the installation costs (referring to the numerical mean of the interests on one year-term deposits in six commercial banks occupying the upper nationwide rankings on the basis of deposit amounts, from among the banks established under the Banking Act), but if otherwise stipulated by the contract for reimbursing the installation costs, it shall govern.
 Article 41 (Preferential Sale, etc. of State-Owned and Public Land, etc.)
"Percentage prescribed by the Presidential Decree" in Article 30 (1) 1 of the Act means 50 percent.
 Article 42 (Preferential Sale of Land Secured for Recompense of Development Outlay)
When the implementer of an urban development project (referring to the implementer of an urban development project who executes the project by the replotting method under the Urban Development Act) sells any land alloted in recompense for development outlay to the project operator as the sites for national housing under Article 31 of the Act, it shall be sold by means of competitive bids: Provided, That, when only one project operator requests the sale, it may be done by means of a negotiated contract.
SECTION 4 Construction of Housing
 Article 43 (Design and Construction of Housing)
(1) "Standards for preparation of design documents prescribed by the Presidential Decree" in Article 33 (1) of the Act means the following requirements:
1. Design documents shall be prepared by classifying into design plans, specifications, structural estimates, statement of calculated volume and plans for quality control, etc.;
2. Design plans and specifications shall state the building scale, equipment, materials, and method of construction, etc.;
3. Design plans, specifications and structural estimates shall be prepared in such a way as to be able to maintain a mutually beneficial relationship;
4. Plans for quality control shall determine the matters necessary for ensuring qualities based upon the design plans and specifications.
(2) The Minister of Land, Infrastructure and Transport may determine and publicly notify detailed criteria relating to the requirements referred to in paragraph (1).
 Article 44 (Restrictions, etc. on Execution of Housing Construction Works)
(1) "Person ---<Omitted>--- prescribed by the Presidential Decree" in Article 34 (1) of the Act means a person registered for construction business (limited to construction work business or civil engineering construction work business) under Article 9 of the Framework Act on the Construction Industry.
(2) "Person ---<Omitted>--- prescribed by the Presidential Decree" in Article 34 (2) of the Act means a person registered for any of the following construction business pursuant to Article 9 of the Framework Act on the Construction Industry:
1. Waterproof facility works: Plastering, waterproof and masonry work business;
2. Sanitary facility works: Mechanical facility work business;
3. Cooling and heating facility works: Mechanical facility work business or heating facility work business (limited to heating facility works).
(3) "Large-scale housing construction works prescribed by the Presidential Decree" in the proviso to Article 34 (2) of the Act means the works whose gross work costs excluding the costs for the purchase of sites exceed 50 billion won.
(4) "Bidding process prescribed by the Presidential Decree" in the proviso to Article 34 (2) of the Act means the tendering procedure for a turnkey project defined in Article 79 (1) 5 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party.
 Article 45 (Regulations on Housing Construction Standards, etc.)
The following matters shall be prescribed by the Regulations on Standards, etc. for Housing Construction:
1. Housing construction standards for the layout of housing and facilities, residential complex buildings, etc. under Article 35 (1) 1 of the Act;
2. Standards for structures and facilities of housing under Article 35 (1) 2 of the Act;
3. Standards for the installation of appurtenant facilities under Article 35 (1) 3 of the Act;
4. Standards for the installation of welfare facilities under Article 35 (1) 4 of the Act;
5. Standards for the preparation of building sites under Article 35 (1) 5 of the Act;
6. Standards for the construction of urban residential housing under Article 36 of the Act;
7. Standards for the construction of energy-saving, eco-friendly housing, etc. under Article 37 of the Act;
8. Standards for the construction of long-lasting housing and the certification system under Article 38 of the Act;
9. Indication of performance rating of multi-family housing under Article 39 of the Act;
10. Standards for the installation, etc. of ventilation systems under Article 40 of the Act;
11. Granting ratings of floor soundproof structures under Article 41 of the Act;
12. Level of outdoor noise and standards for measuring the level of outdoor noise necessary to establish noise prevention measures, and matters necessary for measuring the level of outdoor noise, such as the requirements for designation of institutions measuring the level of outdoor noise and fees incurred in measuring the level of outdoor noise, under Article 42 of the Act.
 Article 46 (Ratio of Construction of Housing by Size)
(1) Where the Minister of Land, Infrastructure and Transport deems it necessary for the appropriate demand for and supply of housing, he/she may allow construction of national standard housing at a specified ratio or higher within 75 percent of the houses (100 percent in cases of houses to be built by a housing association or employer under Article 5 (2) or (3) of the Act) to be built by a project operator under Article 35 (1) 6 of the Act.
(2) Construction ratio of national standard housing under paragraph (1) shall apply to the project plan for each housing complex.
SECTION 5 Consulting Engineering Services for Construction of Housing and Pre-Use Inspection
 Article 47 (Designation of Consulting Engineers, Assignment of Supervisors, etc.)
(1) Any person authorized to approve a project plan shall designate a person classified as following to supervise housing construction works pursuant to the main sentence of Article 43 (1) of the Act. In such cases, the consulting engineers may be designated in common for at least two adjacent housing complexes:
1. Housing construction works of less than 300 household units: Any of the following persons (excluding any affiliate company (referring to an affiliate company defined in subparagraph 3 of Article 2 of the Monopoly Regulation and Fair Trade Act) of a person who executes the relevant housing construction works; hereafter in subparagraph 2, the same shall apply):
(a) A person who has filed a report on the establishment of an architectural firm pursuant to Article 23 (1) of the Certified Architects Act;
(b) A construction technology service provider registered pursuant to Article 26 (1) of the Construction Technology Promotion Act;
2. Housing construction works of at least 300 household units: A construction technology service provider registered pursuant to Article 26 (1) of the Construction Technology Management Act.
(2) The Minister of Land, Infrastructure and Transport may prescribe and announce detailed criteria concerning the following matters necessary for designation under paragraph (1):
1. Documents required to be submitted along with an application for designation;
2. Procedures for disclosing documents submitted by other applicants and filing an objection to the validity of the details of such documents;
3. Other matters necessary for designation.
(3) Where necessary to verify the details of documents submitted under paragraph (2) 1, a person authorized to approve a project plan may make inquiry to the head of a relevant agency about the fact.
(4) Consulting engineers designated pursuant to paragraph (1) shall provide supervision services by assigning supervisors according to the following standards: <Amended by Presidential Decree No. 28374, Oct. 17, 2017>
1. The consulting engineers shall provide supervision services by having a qualified supervisor prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport stay at all times at the construction site;
2. The consulting engineers shall assign one general supervisor who exercises overall control of supervision services of construction work and supervisors in each field of construction work, respectively, as determined and publicly notified by the Minister of Land, Infrastructure and Transport;
3. The consulting engineers shall assign one general supervisor throughout the period of housing construction works, and assign supervisors in each field of construction work for the period of the relevant construction works;
4. The consulting engineers shall not assign any supervisor to a construction project other than the relevant housing construction project at the same time.
(5) Where the commencement of construction works is reported pursuant to Article 16 (2) of the Act, or supervision services, such as various tests and material checkups, are provided, the consulting engineers shall affix their signature or seal.
(6) Except as otherwise expressly provided for in the Act or this Decree, the Certified Architects Act or the Construction Technology Promotion Act shall apply to supervision services over housing construction work.
(7) "Person prescribed by Presidential Decree" in the proviso to Article 43 (1) of the Act means a real estate investment company meeting all of the following requirements: <Amended by Presidential Decree No. 28374, Oct. 17, 2017>
1. It shall be a real estate investment company in which any of the following persons, solely or jointly, invests in excess of 50 percent of the total shares:
(a) The State;
(b) A local government;
(c) The Korea Land and Housing Corporation;
(d) A local corporation;
2. The Korea Land and Housing Corporation shall be an asset management company of the relevant real estate investment company;
3. The housing construction project subject to approval of a project plan shall be a public housing construction project.
(8) The Korea Land and Housing Corporation which is an asset management company under paragraph (7) 2 shall provide supervision services in accordance with Article 44 (1) of the Act and paragraph (4) of this Article.
 Article 48 (Replacement of Consulting Engineers)
(1) "Where consulting engineers provide reasons prescribed by Presidential Decree, such as ---<Omitted>--- where they have overlooked any violation they have discovered in the course of performing their duties" in Article 43 (2) of the Act means any of the following cases:
1. Where a tacit consent has been given to any violations discovered in the course of performing the supervisory duties;
2. Where the corrective notice under Article 44 (3) of the Act has been found to be wrong on at least three occasions, in the course of raising objections under the latter part of paragraph (4) of the same Article;
3. Where the consulting engineers fail to have supervisors stay at all times at the construction site for at least one month. In such cases, the period shall be the total period during which each supervisor has not stayed at all times for the period during which each supervisor should be stayed at all times pursuant to Article 47 (4);
4. Where the consulting engineers have prepared and submitted documents concerning the designation of the consulting engineers deceitfully or otherwise fraudulently;
5. Where the consulting engineers voluntarily express their intention to give up the provision of supervision services.
(2) Where the person authorized to approve a project plan intends to replace the consulting engineers pursuant to Article 43 (2) of the Act, he/she shall hear the opinions of the relevant consulting engineers, the contractor and the project operator.
(3) Notwithstanding paragraph (1) 5, where the consulting engineers give up the provision of supervision services due to any of the following causes, the person authorized to approve a project plan shall not restrict such consulting engineers from being designated for supervision pursuant to Article 43 (2) of the Act:
1. Suspension of construction work due to insolvency, bankruptcy, etc. of a project operator;
2. Delay in the commencement of construction works for at least one year;
3. Other unavoidable reasons, such as a natural disaster.
 Article 49 (Duties of Consulting Engineers)
(1) "Matters prescribed by Presidential Decree" in Article 44 (1) 5 of the Act means the following:
1. Verification as to whether a design document is compatible with the relevant land configuration, etc.;
2. Verification of the propriety of design changes;
3. Scrutiny and verification of a work execution plan, expected progress schedule, and work execution blueprints, etc.;
4. Scrutiny and verification of the matters determined and publicly notified by the Minister of Land, Infrastructure and Transport for the purpose of securing the propriety of waterproof, soundproof and adiabatic works, prevention of accidents, safety control of works, and other qualitative improvements of construction works.
(2) The Minister of Land, Infrastructure and Transport may determine and publicly notify detailed criteria for the provision of supervision services over housing construction works.
 Article 50 (Handling of Formal Objections)
Where a person authorized to approve project plans receives any objection under the latter part of Article 44 (4) of the Act, he/she shall make a reply containing the result of the handling thereof within ten days from the date he/she receives such objection. In such cases, he/she shall also notify the consulting engineers of the result thereof.
 Article 51 (Consulting Engineer's Submission of Data under Other Acts)
"Data prescribed by Presidential Decree, such as a plan for consulting engineering services for each progress of work" in Article 45 (2) of the Act means:
1. Written plans for supervision by work progress;
2. Written report on work progress;
3. Detailed work execution drawing on the portion required by work field.
 Article 52 (Cooperation with Professional Architectural Structural Engineers)
(1) "Where they are unable to obtain cooperation on the grounds prescribed by Presidential Decree, such as the death of a professional architectural structural engineer in charge of structural design" in the proviso to Article 46 (1) of the Act means any of the following cases:
1. Where a consulting engineer cannot obtain cooperation due to the death or missing of a professional architectural structural engineer in charge of structural design (referring to a professional architectural structural engineer under the National Technical Qualifications Act who has been responsible for the remodeling of the relevant building; hereinafter the same shall apply);
2. Where a consulting engineer cannot immediately obtain cooperation due to overseas staying, long-term hospitalization, etc. of a professional architectural structural engineer in charge of structural design;
3. Where a consulting engineer cannot obtain cooperation due to the revocation or suspension of national technical qualification of a professional architectural structural engineer in charge of structural design pursuant to the National Technical Qualifications Act.
(2) "Professional architectural structural engineer prescribed by Presidential Decree" in the proviso to Article 46 (1) of the Act means a professional architectural structural engineer recommended by a person who implemented the relevant remodeling project, such as a housing remodeling association (hereafter in this Article, referred to as "housing remodeling association, etc.").
(3) Where a professional architectural structural engineer in charge of structural design falls under paragraph (1), a consulting engineer who provides supervision services for remodeling projects to increase the number of stories (including remodeling without increasing the number of household units) shall, without delay, request the housing remodeling association, etc. to recommend a professional architectural structural engineer. In such cases, the housing remodeling association, etc. in receipt of such request for recommendation shall recommend a professional architectural structural engineer without delay.
 Article 53 (Items of Inspection of Actual Condition of Consulting Engineers)
"Matters prescribed by Presidential Decree, such as the performance of their duties concerning various tests and material checkups" in Article 48 (1) of the Act means:
1. Matters concerning the composition and management of supervisors, such as whether supervisors are adequately qualified and stay at any times;
2. Matters concerning construction management, such as the confirmation of the conditions of construction;
3. Matters concerning the quality control, such as the confirmation of various tests and the quality of materials;
4. Matters concerning the management of the construction site, such as safety management;
5. Other matters the person authorized to approve a project plan deems necessary to inspect the actual conditions thereof.
 Article 54 (Pre-Use Inspections, etc.)
(1) "Cases prescribed by Presidential Decree" in the main sentence of Article 49 (1) of the Act means situations where a project plan has been approved by the Minister of Land, Infrastructure and Transport pursuant to Article 15 of the Act because it falls under Article 27 (3).
(2) "Any exceptional circumstance prescribed by Presidential Decree, such as a failure to meet the conditions of approval of the project plan" in the proviso to Article 49 (1) of the Act means any of the following cases:
1. Failure to perform the matters imposed as conditions for approval of a project plan under Article 15 of the Act;
2. Where residency is necessary before the completion of a pre-use inspection of the whole housing complex because of the split recruitment of residents of one housing complex;
3. Other cases where a person authorized to grant approval for project plans deems it necessary to undergo a pre-use inspection for each building.
(3) A person authorized to conduct a pre-use inspection under Article 49 of the Act (hereinafter referred to as "person authorized to conduct a pre-use inspection") shall verify whether the houses or housing sites subject to the pre-use inspection are compatible with the details of project plans.
(4) A pre-use inspection referred to in paragraph (2) shall be conducted within 15 days from the date of relevant application.
(5) The heads of related administrative agencies in receipt of a request for consultation under the latter part of Article 49 (2) of the Act shall present their opinions within ten days after receipt of the said request, except in extenuating circumstances.
 Article 55 (Pre-Use Inspection for Project Guarantor, etc.)
(1) If a project operator is unable to continue a housing construction project due to bankruptcy, etc., a person who has guaranteed completion of the relevant housing construction project under Article 49 (3) 1 of the Act (hereinafter referred to as "project guarantor") shall complete the remaining project and undergo a pre-use inspection: Provided, That, where no project guarantor exists or the said guarantor is unable to complete the relevant project due to bankruptcy, etc., the representative council of eligible residents (hereinafter referred to as "representative council of eligible residents") shall complete the remaining project by designating a project operator, and undergo the pre-use inspection.
(2) Where a project guarantor has undergone a pre-use inspection under paragraph (1), an entry in the building management register and a registration for ownership preservation may be made in the name of the project guarantor or that of the residents by household pursuant to the classification of persons who have undergone the pre-use inspection.
(3) Matters necessary for the composition, operation, etc. of the representative council of eligible residents shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(4) Where a project guarantor, a contractor or an eligible resident applies for a pre-use inspection under Article 49 (3) 2 of the Act, a person authorized to conduct a pre-use inspection shall request the relevant project operator to submit a justifiable reason for a failure to undergo the pre-use inspection. In such cases, the project operator shall notify his/her opinion within seven days after the date of receipt of such request.
 Article 56 (Approval for Temporary Use)
(1) "Cases prescribed by the Presidential Decree" in the proviso of Article 49 (4) of the Act means:
1. In cases of housing construction projects: Cases where the construction works of each building among planned buildings have been completed;
2. In cases of housing site preparation projects: Cases where the construction works by section have been completed.
(2) Any person who intends to obtain approval for temporary use under the proviso to Article 49 (4) of the Act shall file an application for the approval for temporary use with a person authorized to conduct a pre-use inspection, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(3) Where a person authorized to conduct a pre-use inspection has received an application for the approval for temporary use under paragraph (2), such person may grant the approval for temporary use only where the housing or sites subject to the approval for temporary use are compatible with the contents of project plans and where the approval for temporary use does not compromise to using the relevant housing or sites. In such cases, if the objects of the approval for temporary use are for multi-family housing, the approval for temporary use may be given by household unit.
 Article 57 (Recognition, etc. of Industrialized Housing)
Matters concerning the recognition, etc. of industrialized housing under Article 51 of the Act shall be prescribed by the Regulations on Standards for Housing Construction.
CHAPTER III SUPPLY OF HOUSING
 Article 58 (Savings for Housing, etc.)
To enact or amend Ordinance of the Ministry of Land, Infrastructure and Transport concerning savings for housing under Article 56 (3) of the Act, the Minister of Land, Infrastructure and Transport shall consult with the Minister of Strategy and Finance in advance.
 Article 59 (Scope of Purchase Prices of Housing Sites and Areas Subject to Publication of Housing Sale Prices)
(1) "Purchase price not exceeding the amount prescribed by Presidential Decree" in the proviso to Article 57 (3) 2 of the Act means an amount equivalent to 120 percent of the value appraised and assessed pursuant to the Act on Appraisal and Certified Appraisers or an amount equivalent to 150 percent of the officially assessed individual land price under Article 10 of the Act on the Public Announcement of Real Estate Values. <Amended by Presidential Decree No. 27472, Aug. 31, 2016>
(2) Where a project operator intends to calculate housing site costs based on the value appraised and assessed pursuant to paragraph (1), he/she shall request the head of the competent Si/Gun/Gu to appraise and assess them under the Act on Appraisal and Certified Appraisers. In such cases, detailed matters concerning the appraisal and assessment shall be governed by the example of the appraisal and assessment provided in Article 57 (3) of the Act. <Amended by Presidential Decree No. 27472, Aug. 31, 2016>
(3) A public agency referred to in Article 57 (3) 2 (b) of the Act shall be as follow:
1. The State;
2. Local governments;
3. Public corporations, quasi-government agencies or other agencies designated as public institutions pursuant to Article 5 of the Act on the Management of Public Institutions;
4. Local corporations operated directly by local governments, local corporations, or local industrial complexes provided in the Local Public Enterprises Act.
(4) "Cases prescribed by Presidential Decree" in Article 57 (3) 2 (c) of the Act means cases where the transaction value of the relevant housing site is entered in the real estate register provided for in the Registration of Real Estate Act or accounting books of a corporation provided for in Article 18 (3) 2 of the Enforcement Decree of the Local Tax Act.
(5) "Area meeting the standards prescribed by Presidential Decree" in the former part of Article 57 (6) of the Act means:
1. A high-speculation area (referring to a high-speculation area under Article 63 of the Act; hereinafter the same shall apply) in the Seoul Metropolitan areas;
2. Any of the following areas, which is designated by the Minister of Land, Infrastructure and Transport following deliberation by the Residence Policy Deliberative Committee (hereinafter referred to as the "Residence Policy Deliberative Committee") under Article 8 of the Framework Act on Residence:
(a) An area that satisfies the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport, based upon the housing inflation rate and the housing precontract competition rate, etc. of the relevant area, among high-speculation areas outside the Seoul Metropolitan Areas;
(b) An area the designation of which is requested by the head of the Si/Gun/Gu having jurisdiction over the relevant district to the Minister of Land, Infrastructure and Transport after assessing that the housing inflation rate and the housing precontract competition rate are feared to rise excessively.
 Article 60 (Clear Indication of Caution Statement)
A project operator who recruits residents shall clearly indicate in his/her draft public notice of resident recruitment the following statement "publication details of the housing sale prices by item may be different from the costs actually spent for the housing construction project".
 Article 61 (Criteria for Designating, etc. Areas Subject to Price Ceiling System)
(1) "Area meeting the standards prescribed by Presidential Decree" in Article 58 (1) of the Act means any of the following areas, where the increase rate of housing price of the relevant area during three months prior to the month immediately preceding the month in which such area is designated (hereinafter referred to as "immediately preceding month") as an area subject to the price ceiling system pursuant to the same paragraph exceeds two times the increase rate of consumer price (hereafter referred to in this Article, as "inflation rate") of the City/Do in which the relevant area is located: <Amended by Presidential Decree No. 28418, Nov. 7, 2017>
1. An area where the increase rate of apartment sales price during 12 months prior to the immediately preceding month exceeds two times the inflation rate;
2. An area where the trading volume of housing during three months prior to the immediately preceding month has increased by at least 20 percent compared to the same period of the previous year;
3. An area where every average monthly precontract competition rate for housing supplied in the relevant area for two months prior to the immediately preceding month, during which housing was supplied, exceeds 5:1; or every average monthly precontract competition rate for national standard housing supplied in the relevant area for the same period exceeds 10:1.
(2) Where the Minister of Land, Infrastructure and Transport designates an area meeting the standards referred to in paragraph (1) as subject to the price ceiling system pursuant to Article 58 (1) of the Act, the provisions of Article 57 of the Act on the restrictions, etc. of sales price of housing supplied in the relevant area shall begin to apply from an application for approval for recruiting residents (referring to an approval of a project plan under Article 15 of the Act, in cases of housing supplied by a housing association (excluding a housing remodeling association) established under Article 11 of the Act; and referring to an authorization of a management and disposal plan under Article 48 of the Act on the Improvement of Urban Areas and Residential Environments, in cases of housing supplied in accordance with a rearrangement project defined in subparagraph 2 (b) or (c) of Article 2 of the same Act) filed on or after the date of public announcement made under the forepart of Article 58 (3) of the Act. <Newly Inserted by Presidential Decree No. 28418, Nov. 7, 2017>
(3) The Minister of Land, Infrastructure and Transport in receipt of a request to cancel the designation of an area subject to the price ceiling system pursuant to Article 58 (6) of the Act, shall determine whether he/she cancels such designation following deliberation by the Residence Policy Deliberative Committee, and notify the result thereof to the relevant Mayor/Do Governor or the head of the relevant Si/Gun/Gu within 40 days from the date of the receipt of the request. <Amended by Presidential Decree No. 28418, Nov. 7, 2017>
 Article 62 (Establishment and Operation of Committee)
(1) The head of a Si/Gun/Gu shall establish and operate a sales price examination committee referred to in Article 59 (1) of the Act (hereafter in this Chapter, referred to as the "committee") within 20 days from the date on which a person files an application for approval of a project plan (including authorization for the implementation of a project under Article 28 of the Act on the Improvement of Urban Areas and Residential Environments and a building permit under Article 11 of the Building Act) under Article 15 of the Act.
(2) Where the project operator is the State, a local government, the Korea Land and Housing Corporation or a local corporation, the head of the relevant agency or institution shall establish and operate the committee. In such cases, Articles 63 through 70 shall apply mutatis mutandis.
 Article 63 (Functions)
The committee shall deliberate on the following matters:
1. Whether the sales prices and expenses incurred in expanding balconies under Article 57 (1) of the Act are calculated appropriately;
2. Whether the construction cost for the basic type of housing of each Special Self-Governing City, Special Self-Governing Province, and Si/Gun/Gu (referring to an autonomous Gu; hereinafter referred to as "Si/Gun/Gu") under the latter part of Article 57 (4) of the Act is calculated appropriately;
3. Whether details of the official notice of the sale prices under Article 57 (5) and (6) of the Act are appropriate;
4. Whether the maximum limit of the estimated purchase amount of Class II national housing bonds under Article 5 (1) 2 of the Enforcement Decree of the Housing and Urban Fund Act related to housing subject to the price ceiling system is calculated appropriately;
5. Whether the sale prices of housing in a neighboring area related to restrictions on the resale of housing subject to the price ceiling system are calculated appropriately.
 Article 64 (Composition)
(1) The head of a Si/Gun/Gu shall appoint at least six persons with extensive knowledge and experience in the field of housing construction or housing management from among any of the following persons as members of the committee. In such cases, at least one of each of the following persons shall be commissioned as its members:
1. Persons who have served as assistant or higher professors for at least one year in colleges or universities under the Higher Education Act, after majoring in studies related to housing, such as law, economics or real estate;
2. Persons who have at least one year's experience as an attorney-at-law, certified public accountant, certified public appraiser or certified tax accountant after obtaining the qualification therefor;
3. Persons who have at least five years' experience in affairs in the field of civil engineering, architecture or housing;
4. Persons who have at least five years' experience as managers of management office of multi-family housing after obtaining qualification as a housing manager.
(2) The head of a Si/Gun/Gu shall appoint or commission any of the following persons as members. In such cases, at least one of each of the following persons shall be designated or commissioned as its members:
1. Persons who are Grade-5 or higher public officials performing the relevant affairs, such as approval and permission of housing projects, in the State or local governments, who are recommended by the head of the relevant agency: Provided, That public officials who belong to the relevant Si/Gun/Gu do not need to be recommended;
2. Executive officers and employees who engage in affairs related to housing projects in the Korea Land and Housing Corporation or a local corporation, who are recommended by the head of the relevant institution.
(3) The term of office of members referred to in paragraph (1) (hereinafter referred to as "civilian member") shall be two years, and it may be consecutively renewed.
(4) The chairperson of the committee shall be appointed by the head of the relevant Si/Gun/Gu from among civilian members.
 Article 65 (Meetings)
(1) Meetings of the committee shall be convened by the head of a Si/Gun/Gu where he/she or the chairperson of the committee deems them necessary.
(2) The head of a Si/Gun/Gu shall notify the members of matters related to the meeting not later than two days prior to the date on which the meeting is held.
(3) A majority of the incumbent members shall constitute a quorum for a committee meeting, and any decision thereof shall require the concurrent votes of at least a majority of those present.
(4) The chairperson of the committee shall preside over its meetings: Provided, That, where the chairperson is unable to perform his/her duties in extenuating circumstances, a member designated in advance by the chairperson shall perform duties of the chairperson on his/her behalf.
(5) The committee shall have one executive secretary who shall perform the administrative affairs of the committee, and he/she shall be appointed by the head of the Si/Gun/Gu among public officials related to housing affairs of the relevant Si/Gun/Gu.
(6) The proceedings of a committee meeting shall not be disclosed: Provided, That they may be disclosed with a resolution of the committee.
 Article 66 (Attendance, etc. of Persons who are Not Members)
(1) Where the chairperson deems it necessary to deliberate on matters prescribed in Article 63, he/she may require the project operator of the relevant project, relevant persons or witnesses to appear and state their opinions or request them to provide the necessary cooperation, such as the submission of relevant data.
(2) The head of a Si/Gun/Gu and the project operator may attend and speak at meetings of the committee with approval of the chairperson in relation to matters discussed at meetings of the committee.
(3) The chairperson shall submit the results of the committee's deliberations and resolutions to the head of a Si/Gun/Gu without delay.
 Article 67 (Attendance on Behalf of Members)
Where any member referred to in Article 64 (2) (hereinafter referred to as "public member") is unable to attend a meeting of the committee in any extenuating circumstance, he/she may designate a public official or an executive officer or employee of a corporation, who holds the position equivalent to the relevant position, and require such person to attend a meeting of the committee on his/her behalf.
 Article 68 (Duties, etc. of Members)
(1) No member shall divulge any matters learned in the process of meetings or in the course of performing his/her duties, which he/she is committed to keeping confidential, or commit any act that impairs the dignity of the committee.
(2) Where a member falls under any of the following cases, he/she shall be excluded from the deliberation and resolution of the relevant item on the agenda to be discussed:
1. Where he/she is directly or considerably involved in the relevant item on the agenda to be discussed by providing service or by other means;
2. Where he/she has direct or considerable interests in the relevant item on the agenda to be discussed.
(3) Any member who falls under paragraph (2) shall voluntarily abstain from the deliberation of the relevant item on the agenda, and notify the executive secretary of his/her abstention before the date of the committee meeting.
(4) Where any civilian member falls under any of the following cases, the head of a Si/Gun/Gu may dismiss such member, and the term of office of the member appointed as a successor of the dismissed member shall be the remaining term of office of his/her predecessor:
1. Where the member becomes incapable of performing his/her duties due to a mental disorder;
2. Where the member engages in misconduct in connection with his/her duties;
3. Where the member is deemed unsuitable as a member due to neglect of a duty, loss of dignity, or on any other reason;
4. Where the member voluntarily disqualifies him/herself for being unable to perform his/her duties;
5. Where the member violates Article 59 (4) of the Act;
6. Where the member violates paragraph (1);
7. Where the member fails to file an application for abstention even though he/she falls under paragraph (2);
8. Where the member is unable to perform his/her duty for at least six months due to his/her overseas official trip, disease, accident, etc.
(5) Where any public member falls under paragraph (4), the head of a Si/Gun/Gu may remove or dismiss him/her from his/her office.
(6) Where any public member is removed or dismissed from his/her office pursuant to paragraph (5), the head of a Si/Gun/Gu may, upon the recommendation by the head of the relevant agency or institution, appoint or commission another person who falls under Article 64 (2) as a member.
 Article 69 (Minutes, etc.)
(1) The executive secretary shall keep the minutes including the following when the committee holds meetings, and preserve the minutes pursuant to the Public Records Management Act:
1. The date and time, and place of the meeting, and whether to disclose;
2. The signature book of members who attend the meeting;
3. Items on the agenda and the result of deliberation;
4. Other important matters discussed, etc.
(2) Allowances and travel expenses may be paid to members who attend meetings of the committee within budgetary limits: Provided, That the foregoing shall not apply where a member who is a public official attends meetings of the committee in direct connection with his/her official duties.
 Article 70 (Detailed Rules Governing Operation)
Except as otherwise expressly provided for in this Decree, matters necessary for the operation of the committee shall be prescribed by the head of the relevant Si/Gun/Gu.
 Article 71 (Cases where Mortgage, etc. can be Created without Resident's Consent, etc.)
"Cases prescribed by Presidential Decree" in the proviso to Article 61 (1) of the Act means:
1. Where housing construction funds are financed by the Housing and Urban Fund or the following financial institutions to lend some of housing purchase funds to a resident of the relevant housing:
(a) Banks under the Banking Act;
(b) Industrial Bank of Korea under the Industrial Bank of Korea Act;
(c) Mutual savings banks under the Mutual Savings Banks Act;
(d) Insurance companies under the Insurance Business Act;
(e) Other institutions prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, which perform financial business under other Acts;
2. Where housing purchase funds are financed by the financial institutions referred to in subparagraph 1 to lend some of housing purchase funds to a resident of the relevant housing;
3. Where the project operator is changed as he/she becomes unable to execute the project due to bankruptcy (including a decision or authorization of the court under the Debtor Rehabilitation and Bankruptcy Act, etc.; hereinafter the same shall apply), merger, division, deregistration, business suspension, etc.
 Article 72 (Registration in Additional Notes, etc.)
(1) When filing for registration in additional notes under the main sentence of Article 61 (3) of the Act, the following expressions shall be included therein pursuant to the latter part of paragraph (4) of the same Article:
1. In cases of a housing site: The expression "this land which is the site for housing for which residents have been recruited under the Housing Act (in cases of a housing association, referring to the parcel of land for which an approval of the housing construction project plan has been requested) shall not, without any consent of eligible residents, be transferred; or subject to the establishment of a limited real right or any restrictions on ownership, such as seizure, provisional seizure, or provisional disposition";
2. In cases of housing: The expression "this housing for which preservation of ownership has been registered under the Registration of Real Estate Act shall not, without any consent of eligible residents, be transferred; or subject to the establishment of a limited real right or any restrictions on its ownership, such as seizure, provisional seizure, or provisional disposition"
(2) "Cases prescribed by Presidential Decree, such as where a project operator is a public agency including the State, a local government, or the Korea Land and Housing Corporation, or where a project operator does not have ownership of the relevant housing site" in the proviso to Article 61 (3) of the Act means:
1. In cases of a housing site: Any of the following cases. In such cases, where the ownership is acquired or any right is canceled as the court ruling becomes final and conclusive in cases falling under item (d) or (e), registration in additional notes under paragraph (1) shall be made, without delay:
(a) Where the project operator is the State, a local government, the Korea Land and Housing Corporation or a local public corporation;
(b) Where the project operator constructs housing by receiving a supply of housing site prepared under the related statutes, such as the Housing Site Development Promotion Act, and where it is impossible to secure the ownership as the cadastral map of the relevant land is not adjusted. In such cases, when the adjustment of cadastral map of the housing site has been completed, registration in additional notes under paragraph (1) shall be made without delay;
(c) Where the association members have trusted their housing sites to the housing association;
(d) Where the relevant site falls under any of the following cases: Provided, That, in cases falling under subitems (ii) and (iii), the appraised value under Article 23 (2) and (3) of the Act shall be deposited:
(i) Where the project operator has filed a claim for sale under Article 22 or 23 of the Act (hereafter referred to in this paragraph, as "claim for sale"), and a court makes a judgment for the project operator (the judgment needs not be final and conclusive);
(ii) Where the project operator has filed a claim for sale as it is impracticable to verify the ownership of the relevant site;
(iii) Where the project operator has filed a claim for sale of the site not owned by him/her and transferred to any third person on or after the date approval of the project construction plan is first granted pursuant to Article 15 of the Act;
(e) Where a mortgage, a right of provisional registration security, a right to lease on a deposit basis, superficies, or a registerable leasehold interest on real property is created for the land the ownership of which is obtained by the project operator; and a lawsuit to cancel such rights is filed by the project operator and a court makes a judgment for the project operator (the judgment needs not be final and conclusive);
2. In cases of housing: Where no person has acquired the status of being selected as the resident of relevant housing: Provided, That this shall not apply where application for the approval of public notice of resident recruitment is filed after a registration for preservation of ownership.
(3) Except where approval of project plans granted under Article 15 of the Act has been revoked under the latter part of Article 61 (4) of the Act or an eligible resident has filed for registration of ownership transfer, no project operator shall be allowed to obliterate registration in additional notes under paragraph (1): Provided, That registration in additional notes may be obliterated 60 days after the deadline for filing an application for registration of ownership transfer.
(4) "Cases prescribed by Presidential Decree, such as where eligible residents acquire ownership of the housing site due to poor management of a project operator" in the proviso to Article 61 (5) of the Act means:
1. Where a mortgage, a right of provisional registration security, a right to lease on a deposit basis, superficies, or a registerable leasehold interest on real property is created for the relevant housing site as it falls under subparagraph 1 or 2 of Article 71;
2. Where another project operator acquires the relevant housing site; or a construction work guarantor or an eligible resident secures the ownership of the relevant housing site or makes the seizure, provisional seizure, provisional disposition, etc. as it falls under subparagraph 3 of Article 71.
(5) "Grounds prescribed by Presidential Decree, such as extremely poor financial standing or financial transactions of the project operator" in Article 61 (6) of the Act means:
1. Where the project operator’s capital is impaired due to his/her ordinary losses for the latest two consecutive years;
2. Where the ratio of debts to assets exceeds 500 percent;
3. Where the project operator intends to trust the relevant site to the Korea Housing and Urban Guarantee Corporation under the Housing and Urban Fund Act (hereinafter referred to as the "Korea Housing and Urban Guarantee Corporation") without filing for registration in additional notes under Article 61 (3) of the Act.
 Article 73 (Period for Restriction on Resale and Cases where Resale is Inevitable)
(1) "Period prescribed by Presidential Decree" in the former part of Article 64 (1) of the Act means the period specified in attached Table 3. <Amended by Presidential Decree No. 27602, Nov. 22, 2016>
(2) "Housing constructed and supplied in an area prescribed by Presidential Decree" in the proviso to Article 64 (1) 2 of the Act means housing constructed and supplied in a non-public housing site. <Newly Inserted by Presidential Decree No. 28418, Nov. 7, 2017>
(3) "Area prescribed by Presidential Decree" in the provisos to Article 64 (1) 3 and 4 of the Act respectively means an area other than a Metropolitan City. <Newly Inserted by Presidential Decree No. 28418, Nov. 7, 2017>
(4) "Cases prescribed by Presidential Decree" in the main sentence of Article 64 (2) of the Act means where the project operator (in cases of housing falling under Article 64 (1) 3 or 4 of the Act, referring to the Korea Land and Housing Corporation; however, where the project operator is a local corporation, it refers to the local corporation) grants consent because a resident falls under any of the following cases: <Amended by Presidential Decree No. 28418, Nov. 7, 2017>
1. Where all of the household members (including the head of household; hereafter the same shall apply in this Article) move to another Metropolitan City, Special Self-Governing City, Special Self-Governing Province, or Si or Gun (excluding a Gun located in the district under the jurisdiction of a Metropolitan City) due to employment, occupation, treatment of diseases, schooling or marriage: Provided, That the foregoing shall not apply where they move to the Seoul Metropolitan area;
2. Where all of the household members move to a house acquired by inheritance;
3. Where all of the household members intend to move overseas or stay overseas for the period of at least two years;
4. Where a resident transfers the status of being selected as a resident or the house to his/her spouse due to divorce;
5. Where the head of a Si/Gun/Gu confirms that a project operator supplies a relocation house to a person who provided a residential building in accordance with the public works project pursuant to Article 78 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects (including where the project operator assists in supplying a house to such person);
6. Where the auction or public sale is conducted because the owner of a house falling under Article 64 (1) 3 or 4 of the Act has failed to repay the debts to the State, local governments and financial institutions (referring to financial institutions under subparagraph 1 of Article 71);
7. Where a resident donates the status of being selected as a resident or part of the house to his/her spouse.
 Article 74 (Non-Transferable Certificates, etc.)
(1) "Deed or status prescribed by Presidential Decree" in Article 65 (1) 4 of the Act means:
1. Written confirmation of unauthorized building, certificate of planned building demolition, or written confirmation of building demolition which has been issued by the head of a Si/Gun/Gu;
2. Written confirmation of the status entitled to receive a supply of housing in accordance with the relocation measure due to an execution of public projects, or written confirmation of persons subject to the relocation measure.
(2) When a project operator has paid, pursuant to Article 65 (3) of the Act, the amount obtained by deducting the depreciation costs (referring to the amount calculated by the method corresponding to the straight-line methods under Article 26 (2) 1 of the Enforcement Decree of the Corporate Tax Act) from the aggregate of the following amounts to any person who has violated paragraph (1) of the same Article, it shall be deemed to have acquired the relevant housing on the date of paying the said amount:
1. Payments for a housing unit;
2. Redeemed principal for the loan money;
3. The amount obtained by multiplying the aggregate of amounts falling under subparagraphs 1 and 2 by the increase rate of producers' price.
(3) "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" in Article 65 (4) of the Act means:
1. Where it is impossible to notify a purchaser of a receipt of the housing price due to the lack of his/her identity;
2. Where a purchaser has refused receipt of the housing price while the receipt of the said price has been notified three times or more. In such cases, the interval between the date of notice and that of next notice shall be at least one month;
3. Where it is impracticable for a purchaser to receive the housing price as he/she fails to live at his/her address for at least three months;
4. Where it is impracticable to pay the housing price to a purchaser due to the seizure or the provisional seizure of the housing.
CHAPTER IV REMODELING
 Article 75 (Criteria, etc. for Permission for Remodeling)
(1) Criteria for permission for remodeling under Article 66 (1) and (2) of the Act shall be as specified in attached Table 4.
(2) A person who intends to obtain permission for remodeling under Article 66 (1) or (2) of the Act shall submit a written application for permission, along with documents prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to the head of a Si/Gun/Gu.
(3) Any house owner who has consented to remodeling under Article 66 (2) of the Act may withdraw his/her consent in writing before the housing remodeling association or residents' representative council submits a written application for permission to the head of the competent Si/Gun/Gu pursuant to paragraph (2).
 Article 76 (Selection, etc. of Contractors who will Implement Remodeling Projects)
(1) "Cases prescribed by Presidential Decree, such as cases where it is deemed difficult to select a contractor according to the method for competitive bidding" in the proviso to Article 66 (4) of the Act, means cases where it turns out to be impossible to select a contractor who will implement a remodeling project through competitive bidding because the number of persons who have participated in each bidding falls short of the minimum number of bidders prescribed in the method for competitive bidding prescribed by the Minister of Land, Infrastructure and Transport pursuant to the main sentence of the same paragraph, although competitive bidding has been conducted on at least two occasions in accordance with the aforementioned method to select a contractor who will implement a remodeling project. <Amended by Presidential Decree No. 27860, Feb. 13, 2017>
(2) "Number of households prescribed by Presidential Decree" in Article 66 (6) of the Act means 50 households.
 Article 77 (Details of Plans for Alteration of Rights)
(1) "Matters prescribed by Presidential Decree ---<Omitted>--- such as alteration of any rights of the existing housing, and the allocation of expenses" in Article 67 of the Act means:
1. Particulars of the alteration of rights for sites and buildings before and after remodeling;
2. Sharing of expenses by association members;
3. Project expenses;
4. Parceling-out plans for those who are not association members;
5. Other matters prescribed by Ordinance of the relevant City/Do or Si/Gun concerning the rights, etc. related to remodeling.
(2) In preparing the particulars of the alteration of rights for sites and buildings or computing the expenses to be borne by association members, under paragraph (1) 1 or 2, the amount appraised by an appraisal business operator under the Act on Appraisal and Certified Appraisers for the property and rights before and after remodeling may become a base thereof. <Amended by Presidential Decree No. 27472, Aug. 31, 2016>
 Article 78 (Safety Inspection for Expansion Remodeling)
(1) "Institution prescribed by Presidential Decree" in Article 68 (2) of the Act means: <Amended by Presidential Decree No. 28586, Jan. 16, 2018>
1. An institution specializing in safety inspections registered pursuant to Article 28 of the Special Act on the Safety Control and Maintenance of Establishments (hereinafter referred to as "institution specializing in safety inspections");
2. The Korea Infrastructure Safety and Technology Corporation established under Article 45 of the Special Act on the Safety Control and Maintenance of Establishments (hereinafter referred to as "Korea Infrastructure Safety and Technology Corporation");
3. The Korea Institute of Civil Engineering and Building Technology established under Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes, Etc. (hereinafter referred to as "Korea Institute of Civil Engineering and Building Technology").
(2) The head of a Si/Gun/Gu shall not request an institution which has conducted a safety inspection pursuant to Article 68 (2) of the Act to conduct a safety inspection pursuant to paragraph (4) of the same Article: Provided, That the foregoing shall not apply in any of the following cases:
1. Where the institution which has conducted a safety inspection pursuant to Article 68 (2) of the Act is the Korea Infrastructure Safety and Technology Corporation or the Korea Institute of Civil Engineering and Building Technology;
2. Where no institution accepts a request for safety inspections to be conducted under Article 68 (4) of the Act (limited to where tenders are invited or contract negotiation is attempted at least twice pursuant to Article 9 (1) or (2) of the Act on Contracts to Which a Local Government Is a Party).
(3) Where the head of a Si/Gun/Gu receives a report on the findings of a safety inspection from an institution specializing in safety inspections pursuant to Article 68 (5) of the Act, he/she may request the Korea Infrastructure Safety and Technology Corporation or the Korea Institute of Civil Engineering and Building Technology to examine the appropriateness of the report on the findings of the safety inspection, if deemed necessary.
(4) Where the head of a Si/Gun/Gu has conducted a safety inspection pursuant to Article 68 (1) of the Act, he/she shall notify the person who requested the safety inspection as to whether expansion is possible, taking into account the report on the findings of the safety inspection received under Article 68 (5) of the Act, the result of examination of the appropriateness received under paragraph (3), and the master plan for remodeling formulated under Article 71 of the Act (hereinafter referred to as "master plan for remodeling").
 Article 79 (Examination, etc. of Safety by Specialized institutions)
(1) "Specialized institution prescribed by Presidential Decree" in Article 69 (1) of the Act means the Korea Infrastructure Safety and Technology Corporation or the Korea Institute of Civil Engineering and Building Technology;
(2) "Period prescribed by Presidential Decree" in Article 69 (3) of the Act means 30 days from the date on which a specialized institution is requested to examine safety pursuant to paragraph (1) or (2) of the same Article.
 Article 80 (Formulation, etc. of Master Plans for Remodeling)
(1) "Cases prescribed by Presidential Decree, such as where urban overcrowding is less likely to occur following remodeling to increase the number of household units" in the proviso to Article 71 (1) of the Act means:
1. In cases of the Special Metropolitan City or a Metropolitan City: Cases where the Special Metropolitan City Mayor or the Metropolitan City Mayor deems it unnecessary to formulate a master plan for remodeling following deliberation by the City/Do urban planning committee under Article 113 (1) of the National Land Planning and Utilization Act (hereafter in this Article, referred to as "City/Do urban planning committee"), in which cases urban overcrowding or temporary simultaneous relocations are less likely to occur due to remodeling to increase the number of household units (referring to an extension of housing to increase the number of household units);
2. Large city (referring to a large city under Article 175 of the Local Autonomy Act; hereafter in this Article the same shall apply): Cases where the Do Governor deems it unnecessary to formulate a master plan for remodeling following deliberation by the City/Do urban planning plan at the request of the Mayor of a large city, in which cases urban overcrowding or temporary simultaneous relocations are less likely to occur due to remodeling to increase the number of household units.
(2) "Matters prescribed by Presidential Decree" in Article 71 (1) 6 of the Act means the matters prescribed by Ordinance of the Special Metropolitan City, the Metropolitan City or the Do to support the planned management for the prevention, etc. of urban overcrowding and the effective promotion of remodeling.
(3) "Where any insignificant matter prescribed by Presidential Decree is altered" in Article 72 (1) of the Act means:
1. Cases where demand for remodeling to increase the number of household units (referring to the total number of household units in the housing where it is intended to be remodeled to increase the number of household units; hereinafter in this paragraph, the same shall apply) based on the forecast of demand for remodeling to increase the number of household units decreases or increases within ten percent;
2. Cases where a plan for examination of effect on infrastructure or implementation of remodeling in stages is altered due to changes in demand for remodeling to increase the number of household units;
3. Cases where the master plan for remodeling is altered in accordance with the alteration of relevant plans, such as an urban/Gun basic plan under subparagraph 3 of Article 2 of the National Land Planning and Utilization Act.
(4) Where the Special Metropolitan City Mayor, the Metropolitan City Mayor or the Mayor of a large city (including the Mayor of a Si other than a large city under Article 71 (2) of the Act) makes documents available for residents' public inspection pursuant to Articles 72 (1) and 73 (3) of the Act, he/she shall publish the point and the place of public inspection in the Official Gazette and the website of the relevant local government in advance, and exhibit relevant documents at the place of public inspection.
CHAPTER V SUPPLEMENTARY PROVISION
 Article 81 (Determination, etc. of Rent for Land)
(1) Monthly rent for land-lease housing for sale referred to in Article 78 (5) of the Act shall not exceed an amount calculated by dividing either of the following amounts by 12 months: <Amended by Presidential Decree No. 27472, Aug. 31, 2016>
1. Where any land-lease housing is constructed on a public housing site: An amount calculated by applying the average interest rate of fixed deposits with the maturity of three years at banks under the Banking Act two months before the date of public notice of resident recruitment to the development cost of the relevant public housing site;
2. Where any land-lease housing is constructed on a non-public housing site: An amount calculated by applying the average interest rate of fixed deposits with the maturity of three years at banks under the Banking Act two months before the date of public notice of resident recruitment to the value appraised and assessed in accordance with the Act on Appraisal and Certified Appraisers. In such cases, the timing and methods for appraising and assessing the value shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) No landowner shall request the increase of rent for land for two years after the conclusion of an agreement on rent for land (hereinafter referred to as "agreement on rent for land") with a person who has purchased any land-lease housing in accordance with the standards prescribed in paragraph (1).
(3) Where a landowner requests the increase of rent for land after the lapse of two years from the conclusion of an agreement on rent for land, he/she shall calculate the increase rate based upon the average increase rate of land price of the relevant Si/Gun/Gu; however, the increase rate shall not exceed the maximum increase in rent, etc. prescribed in Article 8 (1) of the Enforcement Decree of the Housing Lease Protection Act.
(4) A landowner shall notify the owner of land-lease housing of the deadline for payment of monthly rent for land calculated pursuant to paragraph (1); and detailed methods of payment, interest rates for overdue payment, etc. shall be as specified in a standard form rental agreement referred to in Article 78 (3) of the Act.
 Article 82 (Conversion of Rent for Land into Security Deposit)
Where it is intended that any rent for land is converted into a security deposit, the interest rate applicable to the calculation of the security deposit shall not be less than the average interest rate of three-year term deposits at banks under the Banking Act.
 Article 83 (Issuance of Redeemable Housing Bonds)
(1) The redeemable housing bonds referred to in Article 80 (1) of the Act (hereinafter referred to as "redeemable housing bonds") shall be issued at par or discount.
(2) A symbol and a serial number shall be inscribed on the redeemable housing bonds, and the matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport shall be entered therein.
(3) Any person who has issued the redeemable housing bonds shall maintain a redeemable housing bond ledger, and enter the matters relating to the issuance and redemption of the said bonds in such ledger.
 Article 84 (Issuance of Redeemable Housing Bonds by Registered Project Operators)
(1) "Standards prescribed by Presidential Decree" in the latter part of Article 80 (1) of the Act means all of the following requirements:
1. Any corporation with a paid-in capital of at least 500 million won;
2. Any person who has filed for registration of construction business under Article 9 of the Framework Act on the Construction Industry;
3. Any person who has constructed an annual average of at least 300 housing units during the recent three years.
(2) The scale of redeemable housing bonds which may be issued by a registered project operator shall be within the annual average number of housing units constructed during the recent three years.
 Article 85 (Requirements, etc. for Issuance of Redeemable Housing Bonds)
(1) Any person who intends to obtain approval of issuance of redeemable housing bonds under Article 80 (2) of the Act shall submit a plan for issuing the redeemable housing bonds to the Minister of Land, Infrastructure and Transport, together with the following documents: Provided, That the documents referred to in subparagraph 3 may be submitted prior to the public invitation for redeemable housing bonds subscription:
1. Documents attesting to the ownership or other exercisable rights on the housing sites for a construction of housing meant for a redemption of the redeemable housing bonds;
2. Written guarantee by a financial institution or the Korea Housing and Urban Guarantee Corporation for the redeemable housing bonds;
3. Written contracts for the vicarious issuance, and that for the management of paid-up money with a financial institution.
(2) A plan for issuing redeemable housing bonds referred to in paragraph (1) shall contain the following information:
1. Title of the issuer;
2. Gross amount of the paid-in capital of a company;
3. Gross amount of the redeemable housing bonds to be issued;
4. When several types of redeemable housing bonds are issued, the amount of redeemable housing bonds by type of each bond, and the issuing values by type of each bond;
5. Conditions and methods for issuance;
6. In cases of issuance in installments, the amount in installments and their time;
7. Procedures and time for redemption;
8. Location of housing construction, types of housing, scale of units, gross number of household units, scheduled date for undertaking works, scheduled date for work completion, and scheduled date for residence;
9. Methods of estimating the housing prices;
10. In cases of issuance at discount, the interest rates thereon and the details of computation;
11. Matters necessary for the redemption before maturity;
12. In cases of guaranteed issuance, the guaranteeing agency and the details of guaranty;
13. Plans for using the paid-up money;
14. Other matters determined and publicly notified by the Minister of Land, Infrastructure and Transport.
(3) When the Minister of Land, Infrastructure and Transport approves a plan for issuing redeemable housing bonds, he/she shall notify the details thereof to the Mayor/Do Governor having jurisdiction over the area subject to the issuance of redeemable housing bonds.
(4) Any person who has obtained an approval for a plan for issuing redeemable housing bonds shall, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, prepare a draft public invitation for subscription of redeemable housing bonds prior to the said invitation, and submit it to the Minister of Land, Infrastructure and Transport.
 Article 86 (Redemption, etc. of Redeemable Housing Bonds)
(1) The period of redemption for redeemable housing bonds shall not exceed three years.
(2) The period of redemption referred to in paragraph (1) shall be from the date of issuing redeemable housing bonds to the date of concluding a contract for supplying housing.
(3) Redeemable housing bonds shall be non-transferable or cannot be terminated early: Provided, That this shall not apply in any extenuating circumstance prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as overseas emigration.
 Article 87 (Use of Paid-Up Money for Bonds)
(1) Paid-up money for redeemable housing bonds shall be used only for the following purposes:
1. Purchase and preparation of the housing sites;
2. Purchase of the housing construction materials;
3. Appropriation for the costs of construction works;
4. Appropriation for other expenses necessary for redemption of housing, approved by the Minister of Land, Infrastructure and Transport.
(2) Paid-up money for redeemable housing bonds shall be managed by a financial institution designated after consultation between the relevant guaranteeing agency and the issuer of redeemable housing bonds.
(3) If requested by the Minister of Land, Infrastructure and Transport, a financial institution managing paid-up money under paragraph (2) shall report the management status of paid-up money to the said Minister.
 Article 88 (Compilation, Operation, etc. of Special Account for National Housing Projects)
(1) Matters necessary for the compilation and operation of the special account for national housing projects to be established in local governments under Article 84 (1) of the Act, may be determined by municipal ordinance of the competent local government.
(2) The head of a local government who constructs and supplies national housing shall, under Article 84 (3) of the Act, file a quarterly report with the Minister of Land, Infrastructure and Transport on the operational status of the special account for national housing projects by no later than the 20th day of the month following the month in which each quarter ends. In such cases, the head of a Si/Gun/Gu shall file such report through the Mayor/Do Governor (excluding cases where the Special Self-Governing City Mayor or a Special Self-Governing Province Governor files the report).
 Article 89 (Informatization of Housing Administration and Data Management, etc.)
(1) In order to efficiently and systematically manage the affairs related to the comprehensive management and the provision of information on housing referred to in Article 88 (1) of the Act (including quasi-housing; hereafter the same shall apply in this Article), the Minister of Land, Infrastructure and Transport may build and operate an information system, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) "Matters prescribed by Presidential Decree, such as verification as to whether residents own housing, and eligibility for residency" in Article 88 (3) of the Act means the following matters:
1. Verification of whether the resident owns housing;
2. Verification of whether the resident is eligible for residency;
3. Status of the housing sites developed and supplied by public agencies, such as local governments and the Korea Land and Housing Corporation pursuant to the Act, the Housing Site Development Promotion Act and other Acts; plans for supply; and schedules for supply;
4. Status of the subscribers to the savings for housing for the relevant area and neighboring areas wherein the housing is constructed;
5. Status of approval of housing construction plans for the relevant area and neighboring areas wherein the housing is constructed;
6. Status of the registration of housing management operators.
 Article 90 (Delegation of Authority)
The Minister of Land, Infrastructure and Transport shall delegate the following authority to each Mayor/Do Governor pursuant to Article 89 (1) of the Act:
1. Cancellation of registration of housing construction project operators and housing site preparation project operators and suspension of their business under Article 8 of the Act;
2. Approval of project plans, approval for modification of project plans, revocation of approval, and receipt of reports on the commencement of construction works under Articles 15 and 16 of the Act: Provided, That any of the following cases shall be excluded herefrom:
(a) Where a person implements a housing construction project in the area where a housing site development project is implemented pursuant to Article 27 (3) 1;
(b) Where a person implements a housing construction project falling under Article 27 (3) 3: Provided, That receipt of reports on the commencement of construction works shall be delegated to each Mayor/Do Governor;
3. Pre-use inspections and approval for temporary use under Article 49 of the Act;
4. Authority over the housing built by applying a new construction technology referred to in Article 51 (2) 1 of the Act;
5. Reports and inspections referred to in Article 93 of the Act;
6. Hearings referred to in subparagraphs 1 and 2 of Article 96 of the Act.
 Article 91 (Entrustment of Duties)
(1) The Minister of Land, Infrastructure and Transport shall, under Article 89 (2) of the Act, entrust the following affairs to an association of housing project operators under Article 85 (1) of the Act (hereinafter referred to as "association"):
1. Registration of housing construction projects and housing site preparation projects under Article 4 of the Act;
2. Receipt of business records, etc. under Article 10 of the Act.
(2) The Minister of Land, Infrastructure and Transport shall, under Article 89 (2) of the Act, entrust the affairs related to comprehensive management of housing-related information under Article 88 (1) of the Act to the institutions classified as follows: <Amended by Presidential Decree No. 27473, Aug. 31, 2016>
1. Establishing and operating an information system related to the transactions of housing: The Korea Appraisal Board under the Korea Appraisal Board Act (hereinafter referred to as the "Korea Appraisal Board");
2. Establishing and operating an information system related to the supply of housing: The Korea Land and Housing Corporation;
3. Survey of the trend of prices for housing: The Korea Appraisal Board.
 Article 92 (Monetary Rewards for Reporting Resale, etc. of Right to Purchase Ownership)
(1) Pursuant to Article 92 of the Act, a person who intends to report a person who resells or arranges to resell the right to purchase ownership, etc., in violation of Article 64 of the Act (hereinafter referred to as "illegal acts"), shall file a written report with the competent Mayor/Do Governor, appending materials attesting to the relevant illegal acts.
(2) A Mayor/Do Governor in receipt of a report under paragraph (1) shall request the competent investigative agency for an investigation, and the investigative agency shall notify the Mayor/Do Governor of the results of such investigation (including the results of the final judgment, such as the imposition of penalty provisions pursuant to subparagraph 2 of Article 101 of the Act; hereinafter the same shall apply).
(3) The Mayor/Do Governor shall notify the person who has reported the relevant illegal act of the results of the investigation conducted under paragraph (2).
(4) A person who has reported an illegal act and received the notification referred to in paragraph (3) may apply for a payment of a monetary reward to the relevant Mayor/Do Governor, by submitting a written application along with the following documents. In such cases, the Mayor/Do Governor shall pay the monetary reward within 30 days from the date of the application in accordance with the criteria for payment:
1. A copy of the notification of investigation results referred to in paragraph (3);
2. A copy of a bankbook.
 Article 93 (Supervision of Project Operators, etc.)
When the head of a local government has ordered a project operator, etc. to suspend his/her works; to make reinstatement; or to take other necessary measures pursuant to Article 94 of the Act, he/she shall immediately report such order to the Minister of Land, Infrastructure and Transport.
 Article 94 (Supervision of Association)
When deemed necessary for supervision under Article 95 of the Act, the Minister of Land, Infrastructure and Transport may demand the association to report the following matters:
1. Resolutions passed by the general meeting or by the board of directors;
2. Matters necessary for ascertaining the actual status of members;
3. Important matters relating to business affairs, such as the operating plan, etc. of the association;
4. Other necessary matters concerning the housing policy and the housing management.
 Article 95 (Processing of Personally Identifiable Information)
Where it is inevitable to perform the following work, the Minister of Land, Infrastructure and Transport (including persons to whom duties of the Minister of Land, Infrastructure and Transport have been delegated or entrusted pursuant to Article 90 or 91 of the Act), a Mayor/Do Governor, the head of a Si/Gun/Gu (including persons to whom the relevant authority is delegated or entrusted), or a project operator (including persons who perform the duties of housing associations on their behalf under Article 11-2 (1) of the Act or persons entrusted with the affairs related to receipt of subscriptions for housing and selection of residents) may process information including resident registration numbers, passport numbers, or alien registration numbers under subparagraph 1, 2 or 4 of Article 19 of the Enforcement Decree of the Personal Information Protection Act: <Amended by Presidential Decree No. 28095, Jun. 2, 2017>
1. Accepting registration for housing construction projects or housing site development projects under Article 4 (1) of the Act;
2. Verifying grounds for disqualification of registered project operators under Article 6 of the Act;
3. Verifying grounds for disqualification of executives of housing associations under Article 13 (1) of the Act;
4. Conducting pre-use inspections or granting approval for temporary use under Article 49 of the Act;
5. Supplying housing under Article 54 of the Act;
6. Restricting eligibility for residency under Article 65 (5) of the Act;
7. Verifying qualification of a housing association member under Article 21 (1).
 Article 96 (Review of Regulation)
(1) The Minister of Land, Infrastructure and Transport shall review the appropriateness of the following matters triennially, counting from each base date specified in the following (referring to the day before the base date of every third year) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 28095, Jun. 2, 2017>
1. Standards for executing housing construction works by registered project operators under Article 17: January 1, 2017;
2. Restrictions, etc. on executing housing construction works under Article 44: January 1, 2017;
3. Designating consulting engineers, assigning supervisors, etc. under Article 47: January 1, 2017;
4. Creating a mortgage without consent from the resident under Article 71: January 1, 2017;
5. Registration in additional notes, etc. under Article 72: January 1, 2017;
6. Issuing redeemable housing bonds under Articles 83 through 85: January 1, 2017.
(2) The Minister of Land, Infrastructure and Transport shall review the appropriateness of standards for personal attendance of association members for adopting any resolution at a general meeting pursuant to Article 20 (4) quinquennially, counting from January 1, 2017 (referring to the day before the base date of every fifth year) and shall take measures, such as making improvements. <Newly Inserted by Presidential Decree No. 28095, Jun. 2, 2017>
 Article 97 (Imposition of Administrative Fines)
The criteria for imposing administrative fines under Article 106 of the Act shall be as specified in attached Table 5.
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Article 2 (Abrogation of Other Statutes)
Article 3 (Applicability to Auditing of Housing Association)
The amended provisions of Article 26 (1) 1 shall begin to apply from a housing association the establishment of which is first authorized pursuant to Article 11 (1) of the Act after this Decree enters into force.
Article 4 (Applicability to Safety Inspections for Expansion Remodeling)
The amended provisions of Article 78 (3) and (4) shall begin to apply from a report on results of the safety inspection which is first submitted pursuant to Article 68 (1) of the Act after this Decree enters into force.
Article 5 (Transitional Measures concerning Replacement, New Joining, etc. of Members of Local-Based or Workplace-Based Housing Association)
Any local-based or workplace-based housing association the establishment authorization of which were applied for before September 1, 2007, shall be governed by the former Enforcement Decree of the Housing Act (referred to the Enforcement Decree of the Housing Act which has not yet been amended by Presidential Decree No. 20208), notwithstanding the amended provisions of Articles 37 (3) and 39 (1) 3 and 5 of the Enforcement Decree of the Housing Act (Presidential Decree No. 21444).
Article 6 (Transitional Measures concerning Removal of Non-Bearing Walls Subject to Imposition of Administrative Fines)
An act committed before November 4, 2014 shall be governed by the provisions concerning administrative fines under the former Enforcement Decree of the Housing Act (referring to the Enforcement Decree of the Housing Act which has not yet been amended by Presidential Decree No. 25702).
Article 7 Omitted.
Article 8 (Relationship with Other Statutes)
A citation of the former Enforcement Decree of the Housing Act or a provision thereof by any other statutes as at the time this Decree enters into force shall be deemed a citation of this Decree or the corresponding provisions thereof in lieu of the former provisions if such corresponding provisions exist in this Decree.
ADDENDA <Presidential Decree No. 27471, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27473, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 27602, Nov. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Restriction Period of Resale)
The amended provisions of Article 73 (1) and attached Table 3 shall begin to apply from the first public notice of resident recruitment after November 3, 2016.
ADDENDA <Presidential Decree No. 27860, Feb. 13, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Selection of Remodeling Project Contractors by Methods other than Competitive Bidding)
Notwithstanding the amended provisions of Article 76 (1), methods of selecting a remodeling project contractor where a public notice of competitive bidding has been given on at least one occasion(s) before this Decree enters into force, shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 28095, Jun. 2, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 3, 2017.
Article 2 (Applicability to Matters to be Included in Bylaws of Association)
The amended provisions of Article 20 (2) 6-2 shall begin to apply from the case where an application for approval to establish a housing association (including approval to modify any matters approved; hereinafter the same shall apply) is filed pursuant to Article 11 (1) of the Act before this Decree enters into force and the approval to establish the housing association is obtained after this Decree enters into force.
Article 3 (Applicability to Personal Attendance of Association Members when Adopting any Resolution at General Meeting)
The amended provisions of Article 20 (4) shall begin to apply from the inaugural general meeting or a general meeting for adopting any resolution convened after this Decree enters into force.
ADDENDA <Presidential Decree No. 28182, Jul. 11, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Period for Restriction of Resale)
The amended provisions of subparagraph 1 (c) of attached Table 3 shall begin to apply from a public notice of resident recruitment made on or after June 19, 2017.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of the Presidential Decrees promulgated before this Decree enters into force, which have not yet entered into force, among the Presidential Decrees amended pursuant to Article 8 of the Addenda shall enter into force on the dates respective Presidential Decrees enter into force.
Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 28374, Oct. 17, 2017>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 28418, Nov. 7, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 73 and attached Table 3 shall enter into force on November 10, 2017.
Article 2 (Transitional Measures concerning Period for Restriction of Resale)
Notwithstanding the amended provisions of attached Table 3, 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 of the Act) filed before the enforcement date prescribed in Article 1 of the Addenda shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 28586, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 18, 2018. (Proviso Omitted.)
Articles 2 through 8 Omitted.