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ACT ON SPECIAL CASES CONCERNING UNOCCUPIED HOUSE OR SMALL-SCALE HOUSING IMPROVEMENT

Act No. 14569, Feb. 8, 2017

Amended by Act No. 14719, Mar. 21, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to raising the quality of residential life by prescribing matters and special cases necessary to efficiently improve neglected unoccupied houses and to facilitate improving small-scale housing.
 Article 2 (Definitions)
(1) The definitions of the terms used in this Act shall be as follows:
1. The term "unoccupied house" means a house not occupied or used for at least one year as of the date the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/autonomous Gu (hereinafter referred to as the "head of a Si/Gun") has verified that the house was occupied or used: Provided, That houses prescribed by Presidential Decree, including unsold houses, shall be excluded herefrom;
2. The term "unoccupied house improvement project" means a project for ameliorating or demolishing unoccupied houses or for efficiently managing or using unoccupied houses;
3. The term "small-scale housing improvement project" means any of the following projects implemented in regions or city blocks that meet the requirements prescribed by Presidential Decree, such as where worn-out and substandard structures are clustered, in accordance with the procedures prescribed in this Act:
(a) An autonomous housing improvement project: A project for autonomously ameliorating or constructing a detached house or multi-household house;
(b) A housing improvement project in a city block: A project for improving residential environments in a city block on a small scale, while maintaining existing streets;
(c) A small-scale reconstruction project: A project for reconstructing multi-family housing on a small scale in an area where fundamental infrastructure is in good condition;
4. The term "project zone" means a zone where an unoccupied house improvement project or a small-scale housing improvement project is implemented;
5. The term "project implementer" means a person who implements an unoccupied house improvement project or a small-scale housing improvement project;
6. The term "owner of land or other property" means any of the following persons: Provided, That a trustor shall be deemed an owner of land or other property where a trust business entity, defined in Article 8 (7) of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "trust business entity"), is designated as a project implementer pursuant to Article 19 (1) and the owner of the land or property places the land or property in trust with the trust business entity for the purpose of the relevant small-scale housing improvement project:
(a) in the case of an autonomous housing improvement project or a housing improvement project in a city block, the owner of land or a building located in the project zone, and the person with superficies of the relevant land;
(b) in the case of a small-scale reconstruction project, the owner of a building located in the project implementation area and the appurtenant land;
7. The term "residents' consensus body" means a consultative body organized by the owners of land or other property pursuant to Article 22 by unanimous consent to implement a small-scale housing improvement project.
(2) Except as otherwise expressly provided for in this Act, the definitions of the terms in the Act on the Improvement of Urban Areas and Residential Environments shall apply.
 Article 3 (Relationship to Other Acts)
(1) This Act shall apply in preference to other Acts regarding unoccupied house improvement projects and small-scale housing improvement projects.
(2) This Act shall not apply to any unoccupied house improvement projects and autonomous housing improvement projects implemented in rural communities and quasi rural communities defined in subparagraphs 1 and 2 of Article 2 of the Agricultural and Fishing Villages Improvement Act.
CHAPTER II UNOCCUPIED HOUSE IMPROVEMENT PROJECTS
Section 1 Formulation, etc. of Unoccupied House Improvement Projects
 Article 4 (Formulation of Unoccupied House Improvement Projects)
(1) To efficiently improve or use unoccupied houses, the head of a Si/Gun may formulate and implement a plan for improving unoccupied houses, which includes the following matters (hereinafter referred to as "unoccupied house improvement plan"):
1. Basic direction-setting for improving unoccupied houses;
2. A plan for promoting the unoccupied house improvement project and methods for implementation;
3. A plan for raising funds necessary for the unoccupied house improvement project;
4. Other matters prescribed by Presidential Decree as necessary for improving unoccupied houses.
(2) To formulate an unoccupied house improvement plan pursuant to paragraph (1), the head of a Si/Gun shall gather consensus from residents by making the plan available for inspection for at least 14 days; and shall refer it to the urban planning committee established in the competent Special Self-Governing City, Special Self-Governing Province, or Si/Gun/Gu (a Gu means an autonomous Gu; hereinafter the same shall apply) pursuant to Article 113 (1) or (2) of the National Land Planning and Utilization Act (hereinafter referred to as "local urban planning committee") for deliberation.
(3) Paragraph (2) shall apply mutatis mutandis where unoccupied house improvement plans are amended: Provided, That this shall not apply to any amendment to minor matters prescribed by Presidential Decree.
(4) After formulating or amending an unoccupied house improvement plan, the head of a Si/Gun shall publicly notify the unoccupied house improvement plan without delay in the official bulletin of the relevant local government; the head of a Si/Gun/autonomous Gu shall report the unoccupied house improvement plan to the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor; and the relevant Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor") shall report the unoccupied house improvement plan to the Minister of Land, Infrastructure and Transport.
(5) Guidelines, procedures and methods for formulating unoccupied house improvement plans and other necessary matters shall be prescribed by Presidential Decree.
 Article 5 (Fact-Finding Surveys of Unoccupied Houses, etc.)
(1) The head of a Si/Gun may survey (hereinafter referred to as "fact-finding survey") unoccupied houses or houses presumed unoccupied (hereinafter referred to as "unoccupied houses, etc.") regarding the following:
1. Verifying whether the relevant houses are unoccupied;
2. How the unoccupied houses are maintained and how long they have been neglected;
3. Status of rights and interests, such as the ownership of the unoccupied houses;
4. Status of facilities, artificial structures, etc. installed in the unoccupied houses or on the sites thereof;
5. Other matters prescribed by Presidential Decree, such as reasons why houses are unoccupied.
(2) The head of a Si/Gun may designate any specialized institution prescribed by Presidential Decree to conduct a fact-finding survey on his/her behalf.
(3) The head of a Si/Gun or the head of any specialized institution designated under paragraph (2) may request necessary materials from the owners of unoccupied houses and interested parties to conduct a fact-finding survey.
(4) Methods and procedures for conducting fact-finding surveys and other necessary matters shall be prescribed by Presidential Decree.
 Article 6 (Entry into Unoccupied Houses, etc.)
(1) The head of a Si/Gun or the head of any specialized institution designated under Article 5 (2) may enter any unoccupied house, etc. and the site thereof, if necessary for conducting a fact-finding survey.
(2) To enter an unoccupied house, etc. and the site thereof pursuant to paragraph (1), the head of a Si/Gun or the head of any specialized institution designated under Article 5 (2) shall give notice of the date, time and location to the owner, occupant or custodian of the unoccupied house, etc. to be entered, as prescribed by Ministerial Decree of Land, Infrastructure and Transport, seven days beforehand: Provided, That where it is impossible to give notice of the date, time and location due to absence or unknown whereabouts of the owner, occupant or custodian, such information shall be publicly announced in the official bulletin and on the website of the relevant local government.
(3) A person who enters an unoccupied house, etc. and the site thereof pursuant to paragraph (1) shall carry an identification card indicating his/her authority and produce it to relevant persons.
 Article 7 (Compensation for Loss Incurred by Entering Unoccupied Houses, etc.)
(1) If entering an unoccupied house, etc. or the site thereof pursuant to Article 6 (1) inflicts any loss on a person, the head of the relevant Si/Gun, etc. shall compensate the person for the loss.
(2) The head of a Si/Gun shall pay compensation in consultation with a person who has suffered a loss pursuant to paragraph (1).
(3) Where no agreement is reached through consultation under paragraph (2) or it is impossible to hold consultation, the head of a Si/Gun or a person who has suffered a loss pursuant to paragraph (1) may apply for adjudication with the competent Land Tribunal established under Article 49 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects.
(4) Articles 83 through 87 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis to adjudication by the competent Land Tribunal under paragraph (3).
 Article 8 (Use of and Request for Data or Information on Unoccupied Houses, etc.)
(1) If deemed necessary for a fact-finding survey, the head of a Si/Gun or the head of any specialized institution designated under Article 5 (2) may collect data or information, such as electronic data from resident registration (including personally identifiable information, such as resident registration numbers and alien registration numbers), national taxes, local taxes, water charges, and electric charges.
(2) If necessary to achieve the purpose of paragraph (1), the head of a Si/Gun may request data or information from the heads of relevant administrative agencies or heads of relevant public institutions. In such cases, the heads of agencies or institutions in receipt of such request shall comply therewith, except in special circumstances.
(3) The collection and use of, requests for, and provision of data or information under paragraphs (1) and (2) shall comply with the Personal Information Protection Act.
(4) No person who performs or has performed the duties prescribed in paragraph (1) or (2) shall use any data or information acquired in the course of performing such duties for other than the purpose prescribed in this Act or provide or divulge such data or information to any other person or institution.
Section 2 Methods, etc. for Implementing Unoccupied House Improvement Projects
 Article 9 (Methods for Implementing Unoccupied House Improvement Projects)
An unoccupied house improvement project shall be implemented as follows:
1. Partitioning the interior space of an unoccupied house, pasting wallpaper, or installing ceiling materials, flooring materials, etc.;
2. Renovating, expanding, substantially repairing, or changing the use of, an unoccupied house without demolishing it;
3. Demolishing an unoccupied house;
4. Constructing a building, such as a house, or constructing fundamental infrastructure, joint-use facilities or similar facilities after demolishing an unoccupied house.
 Article 10 (Implementers of Unoccupied House Improvement Projects)
(1) An unoccupied house improvement project may be implemented by the head of a Si/Gun or the owner of an unoccupied house, directly or jointly with any of the following:
1. The Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act, or a local government-invested public corporation established under the Local Public Enterprises Act to implement housing projects (hereinafter referred to as the "Korea Land and Housing Corporation or similar entity");
2. A constructor registered under Article 9 of the Framework Act on the Construction Industry (hereinafter referred to as "constructor");
3. A registered project operator who is deemed a contractor under Article 7 (1) of the Housing Act (hereinafter referred to as "registered project operator");
4. A real estate investment trust defined in subparagraph 1 of Article 2 of the Real Estate Investment Company Act (hereinafter referred to as “real estate investment trust”);
5. A social enterprise defined in subparagraph 1 of Article 2 of the Social Enterprise Promotion Act; a cooperative whose establishment is reported pursuant to Article 15 of the Framework Act on Cooperatives; a non-profit-making juristic person established under Article 32 of the Civil Act; or a public-service corporation whose incorporation is permitted pursuant to Article 4 of the Act on the Establishment and Operation of Public Interest Corporations.
(2) Notwithstanding paragraph (1), if requested by the owner of an unoccupied house or if necessary to efficiently implement an unoccupied house improvement project to be implemented as prescribed in subparagraph 1, 2 or 4 of Article 9, the head of a Si/Gun may designate a person referred to in any subparagraph of paragraph (1) as the project implementer to implement the unoccupied house improvement project.
(3) In implementing an unoccupied house improvement project (excluding ex officio demolition of an unoccupied house pursuant to Article 11 (2)), the head of a Si/Gun shall obtain consent from the owner of the unoccupied house as prescribed by Ministerial Decree of Land, Infrastructure and Transport: Provided, That if the whereabouts of the owner of the unoccupied house is unknown, the details of the project implementation plan formulated under Article 13 shall be publicly announced in the official bulletin and on the website of the relevant local government, and consent shall be deemed obtained from the owner of the unoccupied house unless such owner submits his/her opinion within 30 days from the date of public announcement.
 Article 11 (Demolition of Unoccupied Houses)
(1) If an unoccupied house falls under any the following cases, the head of a Si/Gun may order the owner of the unoccupied house to take necessary measures, such as demolition, as specified in the unoccupied house improvement plan: Provided, That where no unoccupied house improvement plan has been formulated, he/she may order the owner of the unoccupied house to take necessary measures, such as demolition, after deliberation by the local building committee established under Article 4 of the Building Act (hereinafter referred to as "local building committee”). In such cases, the owner of the unoccupied house shall take the measures within 60 days, except in special circumstances:
1. Where an accident, such as collapse or fire, or a crime is highly likely to occur;
2. Where it is harmful to public interests or significantly interferes with urban aesthetics or residential environments.
(2) Once the head of a Si/Gun orders an unoccupied house to be demolished in accordance with paragraph (1), he/she may ex officio demolish the unoccupied house, as prescribed by Presidential Decree, if its owner disregards the order, except in special circumstances.
(3) If the whereabouts of the owner of an unoccupied house to be demolished under paragraph (2) is unknown, the head of the competent Si/Gun, etc. shall publicly announce, at least once, in a daily newspaper and its website, a demotion order of the unoccupied house and that the unoccupied house will be ex officio demolished, if the order is disregarded, and may ex officio demolish it, if its owner fails to demolish it within 60 days from the date of public announcement in the daily newspaper.
(4) When demolishing an unoccupied house in accordance with paragraph (2) or (3), the head of a Si/Gun shall pay the owner of the unoccupied house a due compensation prescribed by Presidential Decree. In such cases, the head of the relevant Si/Gun, etc. may pay it after deducting the cost incurred for demolition, from the compensation.
(5) In any of the following cases, the head of a Si/Gun shall deposit the amount of compensation:
1. Where the owner of an unoccupied house refuses compensation;
2. Where it is impossible to pay compensation due to the unknown whereabouts of the owner of an unoccupied house;
3. Where paying compensation is prohibited by seizure or provisional seizure.
(6) Upon demolishing an unoccupied house in accordance with paragraph (2) or (3), the head of a Si/Gun shall reflect such fact in the Building Register without delay; notify the competent registry office that the unoccupied house has been demolished under this Act; and shall entrust the competent registry office with cancelling the registration of that house.
Section 3 Authorization for Project Implementation Plans, etc.
 Article 12 (Authorization for Project Implementation Plans)
(1) To implement an unoccupied house improvement project as prescribed in subparagraph 2 or 4 of Article 9, a project implementer (excluding any project implementer that is the head of a Si/Gun; hereafter in this Article, the same shall apply) shall formulate a project implementation plan; submit it to the head of the competent Si/Gun, etc.; and obtain authorization for the project implementation plan. The same shall also apply to any amendment to approved matters: Provided, That the project implementer shall report any amendment to minor matters prescribed by Presidential Decree to the head of the competent Si/Gun.
(2) The head of a Si/Gun shall determine whether to authorize a project implementation plan submitted under paragraph (1) (including any amendment to such project implementation plan) and notify the relevant project implementer of his/her determination within 60 days from the date it is submitted, except in special circumstances.
(3) To authorize a project implementation plan pursuant to paragraph (1) (including a project implementation plan directly formulated by the head of a Si/Gun) or authorize any amendment thereof (including any amendment to a project implementation plan directly formulated by head of a Si/Gun), the head of a Si/Gun shall publicly notify the details thereof in the official bulletin of the relevant local as prescribed by Ministerial Decree of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters under the proviso to paragraph (1).
 Article 13 (Formulation of Project Implementation Plans)
A project implementer shall formulate a project implementation plan, which includes the following matters: Provided, That the matters prescribed in paragraphs 3 and 4 shall be included only if an unoccupied house improvement project is implemented as prescribed in subparagraph 4 of Article 9:
1. Project zone and the area thereof;
2. Land utilization plans (including a building layout plan);
3. Plans to construct fundamental infrastructure and joint-use facilities;
4. Plans to build rental housing;
5. Building plans specifying the heights, floor area ratios, etc. of buildings;
6. Other matters prescribed by municipal ordinance of the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, a Do, or the Special Self-Governing Province, as prescribed by Presidential Decree, or a large city with a population of at least 500,000, excluding the Seoul Special Metropolitan City, Metropolitan Cities and the Special Self-Governing City under Article 175 of the Local Autonomy Act (hereinafter referred to as "City/Do municipal ordinance"), as necessary for implementing an unoccupied house improvement project.
 Article 14 (Public Notice of Approval of Completion and Completion of Construction Works)
(1) Upon completing construction works for an unoccupied house improvement project as prescribed in subparagraph 2 or 4 of Article 9, the relevant project implementer (excluding any project implementer that is the head of a Si/Gun) shall obtain approval of completion from the head of the competent Si/Gun as prescribed by Presidential Decree.
(2) Upon receipt of an application for approval of completion pursuant to paragraph (1), the head of a Si/Gun shall perform a final inspection without delay and grant approval of completion, if the unoccupied house improvement project is determined complete as specified in the approved project implementation plan based on the findings from the final inspection, and publicly notify such fact in the official bulletin of the local government.
(3) Upon completing construction works for an unoccupied house improvement project directly implemented as prescribed in subparagraph 2 or 4 of Article 9, the head of a Si/Gun shall publicly notify such completion in the official bulletin of the relevant local government.
(4) Where completion of construction works is publicly notified pursuant to paragraph (2) or (3), matters on which the head of a Si/Gun has consulted with the heads of relevant administrative agencies concerning a final inspection, approval of completion, pre-use inspection, approval for use, etc. (hereinafter referred to as "final inspection or similar process") pursuant to authorization, permission, approval, reports, consultation, or consent (hereinafter referred to as "authorization, permission, etc.") deemed granted, filed, or obtained under Article 55, shall be deemed to have undergone the relevant final inspection or similar process.
 Article 15 (Building Unoccupied House Information System)
(1) A Mayor/Do Governor may build an information system for efficiently improving unoccupied houses (hereinafter referred to as "unoccupied house information system") based on findings from fact-finding surveys.
(2) Unoccupied house information systems may be linked to the electronic information processing system built under Article 32 of the Building Act.
(3) A Mayor/Do Governor may request data or information prescribed by Presidential Decree from the heads of relevant administrative agencies or the heads of public institutions, if necessary for building an unoccupied house information system. In such cases, the heads of agencies or institutions in receipt of such request shall comply therewith except in special circumstances.
(4) A Mayor/Do Governor may require a specialized institution prescribed by Presidential Decree to build and operate an unoccupied house information system.
(5) Where necessary to prevent accidents, crimes, etc., a Mayor/Do Governor may provide information on unoccupied houses processed by an unoccupied information system to the heads of related administrative agencies or the heads of public institutions.
(6) Only when the owner of an unoccupied house has consented, a Mayor/Do Governor may disclose information on the unoccupied house processed by an unoccupied house information system through the Internet as well as by other means for achieving the purpose of utilizing the unoccupied house.
CHAPTER III SMALL-SCALE HOUSING IMPROVEMENT PROJECTS
Section 1 Methods, etc. for Implementing Small-Scale Housing Improvement Projects
 Article 16 (Methods for Implementing Small-Scale Housing Improvement Projects)
(1) An autonomous housing improvement project shall be implemented by the project implementer either ameliorating or constructing housing directly after the project implementation plan is authorized pursuant to Article 29.
(2) A housing improvement project in a city block shall be implemented all or part of a city block by constructing and supplying, preserving or ameliorating housing, etc. according to a project implementation plan authorized pursuant to Article 29.
(3) A small-scale improvement project shall be implemented by constructing and supplying housing, appurtenant and welfare facilities, or officetels (referring to officetels among the business facilities referred to in Article 2 (2) of the Building Act) according to a project implementation plan authorized pursuant to Article 29: Provided, That such small-scale improvement project may include buildings not located in a housing complex, if it is inevitable to implement the project in light of terrestrial conditions and surrounding environments.
 Article 17 (Implementers of Small-Scale Housing Improvement Projects)
(1) An autonomous housing improvement project may be directly implemented by at least two owners of land or other property or jointly with any of the following persons:
1. The head of a Si/Gun;
2. The Korea Land and Housing Corporation or similar entity;
3. A constructor;
4. A registered project operator;
5. A trust business entity;
6. A real estate investment trust.
(2) Notwithstanding paragraph (1), one owner of land or other property may implement an autonomous housing improvement project, where rental housing is supplied pursuant to Article 51 (1) by implementing the autonomous housing improvement project; and may implement such project in any area other than regions or city blocks prescribed by Presidential Decree under Article 2 (1) 3.
(3) A housing improvement project in a city block or a small-scale reconstruction project may be implemented as follows:
1. Where the number of owners of land or other property is less than 20, they may implement it directly or jointly with any person referred to in any subparagraph of paragraph (1);
2. An association established pursuant to Article 23 may implement it directly or jointly with any person referred to in any subparagraph of paragraph (1) with the consent of a majority of association members.
 Article 18 (Designation of Public Implementers of Housing Improvement Projects in City Blocks or Small-Scale Reconstruction Projects)
(1) Where a housing improvement project in a city block or a small-scale reconstruction project falls under any of the following, the head of a Si/Gun may directly implement the project or designate the Korea Land and Housing Corporation or similar entity (including where the Korea Land and Housing Corporation or similar entity implements the project jointly with a registered project operator; hereafter in this Article and Article 20, the same shall apply) as the project implementer, notwithstanding Article 17 (3):
1. Where it is necessary to urgently implement such project due to a natural disaster, restriction on or prohibition of use under Article 27 of the Framework Act on the Management of Disasters and Safety or Article 14 of the Special Act on the Safety Control of Establishments, or other unavoidable reasons;
2. Where no application for authorization for the project implementation plan is filed under Article 29 within three years from the date the owners of land or other property reported a residents' consensus body under Article 22 or the date the owners of land or other property obtained authorization to establish an association under Article 23;
3. Where it is impracticable for the relevant association or the owners of land or other property to continue the project due to a long delay in the project or a dispute over rights and interests;
4. Where authorization for the project implementation plan is revoked pursuant to Article 54 (4);
5. Where the area of State or publicly-owned land or the total area of the State or publicly-owned land and land owned by the Korea Land and Housing Corporation or similar entity is at least 1/2 of the total land area of the project zone and a majority of the owners of land or other property in the project zone consent to designate the head of the Si/Gun, the Korea Land and Housing Corporation or similar entity as the project implementer;
6. Where landowners who own at least 1/2 of the land area in the project zone and at least 2/3 of the owners of land or other property request the designation of the head of the Si/Gun, the Korea Land and Housing Corporation or similar entity as the project implementer.
(2) Where the head of a Si/Gun directly implements a housing improvement project in a city block or a small-scale reconstruction project, or designates the Korea Land and Housing Corporation or similar entity as the project implementer pursuant to paragraph (1), he/she shall publicly notify matters prescribed by Presidential Decree, such as the project zone, in the official bulletin of the relevant local government: Provided, That in cases falling under paragraph (1) 1, he/she shall without delay notify the owners of land or other property as to why, when and how the project is to be implemented, and other information.
(3) When the project implementer is designated and publicly notified pursuant to paragraph (2), the report on the residents' consensus body or the authorization to establish an association shall be deemed revoked on the day following the date of public notice.
 Article 19 (Designation of Qualified Developers of Housing Improvement Projects in City Blocks or Small-Scale Reconstruction Projects)
(1) When persons who meet or exceed the requirements for consent to establish an association for a housing improvement project in a city block or a small-scale reconstruction project under Article 23 consent to designate a trust business entity who meets requirements prescribed by Presidential Decree (hereinafter referred to as "qualified developer") as the project implementer, the head of the relevant Si/Gun may designate a qualified developer as the project implementer to implement the relevant project.
(2) Upon designating a qualified developer as the project implementer under paragraph (1), the head of the Si/Gun shall publicly notify matters prescribed by Presidential Decree, such as the project zone, in the official bulletin of the relevant local government.
(3) Before obtaining consent to designate a project implementer pursuant to paragraph (1), the qualified developer shall provide information on the following matters to each owner of land or other property:
1. An estimate of the cash contribution payable by each owner of land or other property and the basis for calculation;
2. Other matters prescribed by City/Do municipal ordinance regarding the calculation of an estimate of the cash contribution, etc.
(4) When the project implementer is designated and publicly notified pursuant to paragraph (2), the report on the residents' consensus body or the authorization to establish an association shall be deemed revoked on the day following the date of public notice.
 Article 20 (Selection, etc. of Contractors)
(1) To implement a small-scale housing improvement project, the owners of land or other property shall first report on the residents' consensus body pursuant to Article 22 and select a constructor or registered project operator as the contractor as prescribed in the written agreement of residents.
(2) To implement a small-scale housing improvement project, an association shall select a constructor or registered project operator as the contractor at a general meeting of the association through competitive bidding determined by the Minister of Land, Infrastructure and Transport or a negotiated contract (limited to where competitive bidding has failed at least twice) after obtaining authorization to establish the association: Provided, That the association may select the contractor for a small-scale housing improvement project not exceeding the scale prescribed by Presidential Decree at a general meeting of the association, as prescribed by the articles of association.
(3) Where the head of a Si/Gun directly implements a project, designates the Korea Land and Housing Corporation or similar entity, as a project implementer under Article 18 (1), or designates a qualified developer as a project implementer to implement a project pursuant to Article 19 (1), the project implementer shall select a constructor or registered project operator as the contractor after public notice is given pursuant to Article 18 (2) or 19 (2).
(4) In selecting a contractor pursuant to paragraph (3), a resident representatives' committee or general meeting of owners of land or other property under Article 25 (2) or (3) may recommend the contractor through competitive bidding prescribed by Presidential Decree or a negotiated contract (limited to where competitive bidding has failed at least twice): Provided, That a contractor for a small-scale housing improvement project not exceeding the scale prescribed by Presidential Decree may be selected as otherwise determined at a resident representatives' committee or a general meeting of the owners of land or other property.
(5) The project implementer shall select a contractor recommended at the resident representatives' committee or general meeting of owners of land or other property pursuant to paragraph (4) as the contractor.
(6) In any of the following cases, Article 9 of the Act on Contracts to Which a Local Government Is a Party and Article 39 of the Act on the Management of Public Institutions shall not apply to any contract with a contractor:
1. Where the head of a Si/Gun, the Korea Land and Housing Corporation or similar entity jointly implements a small-scale housing improvement project pursuant to Article 17 (1) or (3);
2. Where the contractor recommended at the resident representatives' committee or general meeting of owners of land or other property is selected pursuant to paragraph (5).
(7) When a project implementer enters into a construction contract with a contractor selected pursuant to paragraphs (1) through (6), the contract shall include works to demolish the existing buildings (including examination, dismantlement, and removal of asbestos under the Asbestos Safety Management Act).
(8) Where an association or the owners of land or other property selects a person, other than the head of a Si/Gun, the Korea Land and Housing Corporation or similar entity, as the contractor (including where a joint project implementer under Article 17 (1) or (3) performs construction works) to implement a small-scale housing improvement project, the contractor shall submit a written performance guarantee to the association or the owners of land or other property, to guarantee the performance of construction works.
 Article 21 (Selection of Improvement Project Management Contractors)
(1) Where a residents' consensus body selects a business entity providing specialized management services for improvement projects referred to in Article 102 of the Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as "improvement project management contractor"), it shall do so as prescribed in the written agreement of residents.
(2) Where an association selects an improvement project management contractor, it shall do so at the general meeting of the association through competitive bidding determined by the Minister of Land, Infrastructure and Transport or a negotiated contract (limited to where competitive bidding has failed at least twice).
Section 2 Organization of Residents' Consensus Bodies and Establishment of Associations
 Article 22 (Organization, etc. of Residents' Consensus Bodies)
(1) In implementing a small-scale housing improvement project as follows, the owners of land or other property shall organize a residents' consensus body by unanimous consent of the owners of land or other property:
1. Where an autonomous housing improvement project is to be implemented pursuant to Article 17 (1) and there are at least two owners of land or other property;
2. Where a housing improvement project in a city block or a small-scale reconstruction project is to be implemented pursuant to Article 17 (3) 1 and there are less than 20 owners of land or other property.
(2) Where the owners of land or other property organizes a residents' consensus body, they shall appoint the representative of the residents' consensus body by unanimous consent of the owners of land or other property; and shall prepare a written agreement of residents, as prescribed by Ministerial Decree of Land, Infrastructure and Transport, and report the written agreement to the head of the relevant Si/Gun.
(3) A written agreement of residents prepared under paragraph (2) shall contain the following matters:
1. Name of the residents' consensus body;
2. Location and scope of the project zone;
3. Purpose of the residents' consensus body and details of the project;
4. Names, addresses and dates of birth (or the registration number assigned pursuant to Article 49 of the Registration of Real Estate Act in the case of a corporation, an association or foundation other than a corporation, or a foreigner; hereinafter the same shall apply) of members of the residents' consensus body;
5. Name, address and date of birth of the representative of the residents' consensus body;
6. The contractor or improvement project management contractor selected;
7. Matters to be decided by the residents' consensus body and the method of making decisions;
8. Other matters prescribed by City/Do municipal ordinance as necessary to organize and operate the residents' consensus body.
(4) Where the representative of a residents' consensus body amends any matter reported pursuant to paragraph (2), he/she shall file a report on the amendment as prescribed by Ministerial Decree of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters prescribed by Presidential Decree.
(5) To dissolve a residents' consensus body, the representative of the resident consensus body shall file a report on the dissolution with the head of the relevant Si/Gun, as prescribed by Ministerial Decree of Land, Infrastructure and Transport, with the consent of a majority of members of the residents' consensus body.
 Article 23 (Authorization to Establish Associations, etc.)
(1) To establish an association, the owners of land or other property of a housing improvement project in a city block shall obtain consent from at least 8/10 of the owners of land or other property and from persons who own at least 2/3 of the total area of land; and shall obtain authorization from the head of the relevant Si/Gun by submitting the following documents. In such cases, multi-family housing within the project zone shall require the consent of a majority (excluding where the number of the unit owners in each building of multi-family housing does not exceed five) of the unit owners in each building of multi-family housing (in the case of welfare facilities, all welfare facilities within the housing complex shall be construed as a single building) and any building other than multi-family housing shall require the consent of persons who own at least 1/2 of the total area of the land on which the relevant building stands:
1. Articles of association;
2. Documents prescribed by Ministerial Decree of Land, Infrastructure and Transport, such as data related to the cost of implementing the small-scale housing improvement project (hereinafter referred to as “improvement project costs”) including the construction costs;
3. Other documents prescribed by City/Do municipal ordinance.
(2) To establish an association, the owners of land or other property of a small-scale reconstruction project shall obtain consent from a majority (excluding where the number of the unit owners in each building of multi-family housing is not more than five) of the unit owners in each building of multi-family housing (in the case of welfare facilities, all welfare facilities within the housing complex shall be construed as a single building), persons who own at least 3/4 of all unit owners in the housing complex, and persons who own at least 3/4 of the total area of the land, and obtain authorization from the head of the relevant Si/Gun by submitting the documents prescribed in the subparagraphs of paragraph (1).
(3) Notwithstanding paragraph (2), if any area other than a housing complex is included in the project zone, the owners of land or other property shall obtain consent from at least 3/4 of the owners of the land or buildings located in the area other than a housing complex and from the persons who own at least 2/3 of the area of the land.
(4) Where an association established pursuant to paragraph (1) or (2) intends to amend any authorized matter, the association shall, after a resolution adopted with the affirmative vote of at least 2/3 of its members at the general meeting of the association, obtain approval from the head of the relevant Si/Gun by submitting the documents prescribed in the subparagraphs of paragraph (1): Provided, That minor matters prescribed by Presidential Decree may be amended after filing a report to the head of the relevant Si/Gun without a resolution adopted at a general meeting of the association.
(5) Where an association implements a housing improvement project in a city block or a small-scale reconstruction project, the association shall be deemed a project operator defined in subparagraph 10 of Article 2 of the Housing Act, and shall be deemed registered to implement a housing construction project, etc. under Article 4 of the same Act on the date it is authorized to establish an association for the purposes of Article 54 of the same Act.
(6) An association shall be a corporation, and it shall hold general meetings of members, and the procedures, timing, etc. of calling general meetings shall be prescribed by the articles of association. Except as otherwise expressly provided for in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to associations.
(7) Matters requiring consent from the owners of land or other property, procedures for obtaining such consent, and matters necessary for amending authorized matters under paragraphs (1) through (4) shall be prescribed by Presidential Decree.
 Article 24 (Association Membership Requirements, etc.)
(1) Members of an association shall be the owners of land or other property (limited to persons who consent to a small-scale reconstruction project if small-scale reconstruction project is implemented); but one person representing several persons shall be deemed a member of the association in any of the following circumstances:
1. Where the ownership and superficies of land or a building belong to several persons;
2. Where several owners of land or other property belong to one household. In such cases, a spouse and any unmarried lineal descendant under the age of 19, who are not registered on the resident registration record of the same household, shall be deemed to belong to one household; and even where several owners of land or other property, who have made a separate household and do not belong to the same household after authorization is granted to establish the association, they shall be deemed to belong to one household, excluding a divorce and statutory branch family established by offspring who is at least 19 years old (limited to where they do not actually live in the same place of residence, by separating the resident registration of the household);
3. Where several persons hold ownership or superficies of land or a building acquired from one owner of land or other property after authorization is granted to establish the association.
(2) Where a small-scale reconstruction project is implemented within an area designated as a high speculation area under Article 63 (1) of the Housing Act (hereinafter referred to as "high speculation area"), a person who has acquired (including sale and purchase, donation, or any other act changing any right, but excluding transfer or acquisition upon inheritance or divorce; hereafter in this Article, the same shall apply) a building or land involved in the small-scale reconstruction project after authorization to establish an association is granted, is ineligible to be a member of the association, notwithstanding paragraph (1): Provided, That this shall not apply to any person who has acquired a building or land from a transferor, if:
1. All household members of the transferor (referring to the members of a household to which the head of the household belongs; hereafter in this Article, the same shall apply) relocate to the Special Metropolitan City, a Metropolitan City, the Special Self-Governing City, the Special Self-Governing Province, a Si, or a Gun in which the relevant project zone is not located, due to any change in the place of work, the maintenance of livelihood, treatment of disease, school attendance, or marriage of his/her household member;
2. All household members of the transferor relocate to a house acquired by inheritance;
3. All household members of the transferor migrate to a foreign country or stay abroad for at least two years;
4. The transferor transfers the building or land due to any inevitable circumstances prescribed by Presidential Decree.
(3) A project implementer shall compensate a person who has acquired land, a building or other rights but is ineligible to be a member of an association pursuant to the main sentence of paragraph (2), by applying mutatis mutandis Article 36.
 Article 25 (Methods, etc. of Obtaining Consent from Owners of Land or Other Property)
(1) To consent to any of the following, an owner of land or other property shall give consent by writing his/her name and imprinting his/her fingerprint on the written consent, which shall be accompanied by a copy of his/her identitification card, such as his/her resident registration certificate and passport:
1. Where the owner of land or other property implements a small-scale housing improvement project pursuant to any subparagraph of Article 17 (1) or (3);
2. Where a public implementer or qualified developer for a housing improvement project in a city block or a small-scale housing improvement project is designated pursuant to Article 18 or 19;
3. Where an association is established pursuant to Article 23 (2) through (4);
4. Where a resident representatives' committee is established pursuant to paragraph (2);
5. Where an application is filed to obtain authorization for a project implementation plan pursuant to Article 29 (3).
(2) Where the owners of land or other property of a housing improvement project in a city block or a small-scale reconstruction project designates the head of the relevant Si/Gun, the Korea Land and Housing Corporation or similar entity as the project implementer, they shall establish an organization representing the residents (hereinafter referred to as "resident representatives' committee").
(3) Where a qualified developer designated under Article 19 implements a small-scale housing improvement project, the owners of land or other property thereof shall organize a meeting attended by all owners of land or other property (hereinafter referred to as "general meeting of owners of land or other property"). In such cases, the qualified developer shall have the matters prescribed in the subparagraphs of Article 48 (1) of the Act on the Improvement of Urban Areas and Residential Environments resolved upon at a general meeting of owners of land or other property.
Section 3 Project Implementation Plans, etc.
 Article 26 (Deliberation on Construction)
(1) The project implementer (excluding where the project implementer is the head of a Si/Gun) of a housing improvement project in a city block or a small-scale reconstruction project shall submit matters prescribed by Presidential Decree, such as heights, numbers of floors, and the floor area ratios of buildings, to the relevant local building committee for deliberation before formulating a project implementation plan pursuant to Article 30.
(2) A project implementer (excluding the head of a Si/Gun, the Korea Land and Housing Corporation or similar entity) shall obtain any of the following consent or resolutions before applying for deliberation to the local building committee under paragraph (1):
1. Where the project implementer is an owner of land or other property, the consent of the owners of land or other property specified in the written agreement of residents;
2. Where the project implementer is an association, a resolution adopted with the affirmative vote of a majority of the total members of the association at a general meeting of the association; provided,, if the improvement project costs increase by at least ten percent (excluding the portion of producer price inflation rate and compensation given under Article 36), a resolution adopted with the affirmative vote of at least 2/3 of the total members of the association;
3. Where the project implementer is a qualified developer, consent of a majority of all owners of land or other property and consent of persons who own at least 1/2 of the total area of land.
 Article 27 (Integrated Deliberation)
(1) Where it is necessary to deliberate on at least two of the following matters regarding a small-scale housing improvement project, the head of the relevant Si/Gun shall conduct deliberation by integrating them together (hereinafter referred to as "integrated deliberation"): Provided, That where a specific-use area or district of an urban/Gun management plan referred to in subparagraph 2 is designated or altered; or where rental housing is constructed up to the upper limit of the floor area ratio pursuant to Article 49 (1), he/she shall request the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, or Special Self-Governing Province Governor to conduct integrated deliberation:
1. Deliberation on construction under the Building Act (including deliberation under Articles 26 and 48 (1));
2. Matters related to an urban/Gun management plan and development activities under the National Land Planning and Utilization Act;
3. Other matters submitted by the head of the Si/Gun for integrated deliberation, as deemed necessary.
(2) Where the head of a Si/Gun conducts integrated deliberation, the project implementer shall submit documents related to the subparagraphs of paragraph (1). In such cases, the head of the relevant Si/Gun may set a deadline for submission, etc. to efficiently proceed with the integrated deliberation.
(3) Where integrated deliberation is to be conducted, the head of a Si/Gun shall establish a joint committee including members of any of the following committees:
1. The local building committee;
2. The local urban planning committee;
3. A related committee which has the authority to deliberate on matters referred to in paragraph (1) 3.
(4) If integrated deliberation is conducted, examinations, deliberation, investigation, consultation, coordination or adjudication shall be deemed conducted regarding the matters prescribed in the subparagraphs of paragraph (1).
(5) Article 18 (3) of the Housing Act shall apply mutatis mutandis to filing applications for integrated deliberation and the method and procedure for conducting integrated deliberation.
 Article 28 (Public Announcement of Sale in Units and Applications for Sale in Units)
(1) Within 90 days from the date of receipt of outcomes of deliberation conducted under Article 26, the project implementer of a housing improvement project in a city block or a small-scale reconstruction project shall notify each owner of land or other property of the following matters; and shall publicly announce matters prescribed by Presidential Decree, such as the details of sites or buildings for sale in units, in a daily newspaper distributed in the relevant area:
1. A detailed statement of the land or building previously held by each qualified purchaser, and the prices thereof as at the date the outcomes of deliberation conducted under Article 26 is notified (or the prices as at the date of permission by the head of the relevant Si/Gun, if buildings are demolished under Article 37 (3) before deliberation is conducted under Article 26);
2. An estimate of the cash contribution payable by each qualified purchaser;
3. The filing period for applications for sale in units;
4. Other matters prescribed by Presidential Decree.
(2) The filing period for applications for sale in units under paragraph (1) 3 shall be within at least 30 days but not exceeding 60 days from the date of notification to the owners of land or other property pursuant to paragraph (1): Provided, That the project implementer may extend the filing period for applications for sale in units only once by up to 20 days, if such extension is deemed not hindering the formulation of management and disposal plans under Article 33 (1).
(3) Any owner of land or other property who intends to purchase land or a building in units, shall file an application for sale in units within the filing period for applications for sale in units set under paragraph (2), as prescribed by Presidential Decree.
(4) Where the number of households or the size of a house changes due to any amendment to the authorized project implementation plan (excluding any amendment to minor matters prescribed by Presidential Decree) pursuant to Article 29 (1) after the expiration of the filing period for applications for sale in units set under paragraph (2), the project implementer shall follow procedures for publicly announcing, etc. the sale in units in accordance with paragraphs (1) through (3).
(5) The project implementer may allow the owners of land or other property who prescribed in Article 36 (1) 1 and 2 to file applications for sale in units, if provided for in the articles of association, etc. (referring to the articles of association, etc. defined in subparagraph 11 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments; hereinafter the same shall apply) or a resolution is adopted at a general meeting.
 Article 29 (Authorization for Project Implementation Plans)
(1) A project implementer (excluding where a project implementer is the head of a Si/Gun) who intends to implement a small-scale housing improvement project shall obtain authorization for its project implementation plan by submitting a project implementation plan formulated under Article 30 (hereinafter referred to as "project implementation plan") to the head of the relevant Si/Gun along with the articles of association, etc. and other documents prescribed by Ministerial Decree of Land, Infrastructure and Transport, and the same shall also apply to any amendment to approved matters: Provided, That any amendment to minor matters prescribed by Presidential Decree shall be reported to the head of the relevant Si/Gun.
(2) Except in special circumstances, the head of a Si/Gun shall determine whether to authorize a project implementation plan and notify the project implementer of his/her determination within 60 days from the date the project implementation plan (including any amendment to the project implementation plan) is submitted pursuant to paragraph (1).
(3) A project implementer (excluding the head of a Si/Gun, the Korea Land and Housing Corporation or similar entity) shall obtain consent or a resolution prescribed in the subparagraphs of Article 26 (2) before applying for authorization for its project implementation plan, and the same shall also apply where the project implementer intends to amend any approved matter, or to suspend or abandon the project: Provided, That this shall not apply to any amendment to minor matters under the proviso to paragraph (1).
(4) Notwithstanding the main sentence of paragraph (3), the project implementer of a project prescribed in Article 18 (1) 1 (hereinafter referred to as "at-risk house improvement project") need not obtain consent from the owners of land or other property.
(5) Where the head of a Si/Gun authorizes a project implementation plan pursuant to paragraph (1) (including where the head of a Si/Gun formulates a project implementation plan) or amends, suspends, or abandons a project, he/she shall publicly notify the details thereof in the official bulletin of the relevant local government as prescribed by Ministerial Decree of Land, Infrastructure and Transport: Provided, That this shall not apply to any amendment to minor matters under the proviso to paragraph (1).
(6) To authorize a project implementation plan or formulate a project implementation plan pursuant to Article 30, the head of a Si/Gun shall make copies of related documents available to the general public for inspection for at least 14 days; and may hear the opinions of the owners of land or other property, interested parties, etc.
 Article 30 (Formulation of Project Implementation Plans)
(1) A project implementer shall formulate a project implementation plan, which includes the following matters: Provided, That it shall include matters prescribed in subparagraphs 1, 2, 3, 6 and 7 only in the case of an autonomous housing improvement project:
1. Project zone and the area thereof;
2. A land utilization plan (including a building layout plan);
3. Plans to construct fundamental infrastructure and joint-use facilities;
4. Measures to relocate residents, including temporary accommodation;
5. Crime prevention measures in the project zone during the project implementation period, such as installation of street lights and closed-circuit television cameras;
6. Plans to build rental housing;
7. Building plans specifying the heights, floor area ratios, etc. of buildings (where a construction agreement has been concluded pursuant to Article 77-4 of the Building Act, including the details of the construction agreement);
8. Plans to dispose of waste generated in the course of implementing the project;
9. The improvement project costs;
10. A management and disposal plan, which includes a plan for sales in units;
11. Other matters prescribed by City/Do municipal ordinance as prescribed by Presidential Decree, as necessary for implementing the relevant project.
(2) Where a project implementer includes a plan to construct public housing defined in subparagraph 1 of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public housing") in the project implementation plan it formulates under paragraph (1), the project implement shall comply with Article 37 of the Special Act on Public Housing regarding matters necessary for the standards for the structures, functions, and facilities of the public housing, the scope of and standards for installation of appurtenant and welfare facilities, and other relevant matters.
 Article 31 (Establishment of Implementation Rules)
The head of a Si/Gun, the Korea Land and Housing Corporation or similar entity, or a qualified developer shall establish implementation rules which include the following matters to solely implement a small-scale housing improvement project:
1. The type and name of the small-scale housing improvement project;
2. The year in which and how the small-scale housing improvement project is implemented;
3. Apportionment of costs and accounting;
4. Rights and obligations of the owners of land or other property;
5. Apportionment of costs for fundamental infrastructure and joint-use facilities;
6. Methods of public announcement, public inspection, and notification;
7. Methods for assessing rights in land and buildings;
8. A management and disposal plan and cash settlements (including matters concerning collection and payment in installments): Provided, That the shame shall not apply where a project is implemented by expropriating property;
9. Amendments to implementation rules;
10. Amendments of the project implementation plan;
11. Appropriation of the cost for project management in accordance with the standards prescribed by Presidential Decree (limited to where the project implementer is the head of a Si/Gun, the Korea Land and Housing Corporation or similar entity);
12. General meetings of owners of land or other property (limited to cases where the project implementer is a qualified developer).
 Article 32 (Scale of Housing, Construction Ratio, etc.)
(1) The implementer of a housing improvement project in a city block shall supply housing units in at least the same number as the aggregate of the number of existing detached houses and the number of all households in multi-family housing located in the project zone. In such cases, the number of floors, etc. of buildings to be constructed shall be prescribed by Presidential Decree.
(2) To stabilize housing supply and to give more opportunities to low-income residents, the Minister of Land, Infrastructure and Transport may determine and publicly notify the percent of houses to be constructed in the size of national standard housing defined in subparagraph 6 of Article 2 of the Housing Act through small-scale housing improvement projects within the limit prescribed by Presidential Decree, not exceeding 90 percent of the total number of households.
 Article 33 (Contents of Management and Disposal Plans and Standards for Formulation Thereof)
(1) Upon the expiration of the filing period for applications for sale in units set under Article 28, the project implementer of the relevant housing improvement project in a city block or small-scale reconstruction project shall formulate a management and disposal plan referred to in Article 30 (1) 10, which includes the following matters, based on the status of applications for sale in units:
1. Design for sale in units;
2. Address and name of each qualified purchaser;
3. The estimated value of each site or building to be sold to each qualified purchaser (including details of houses to be consigned for rental management);
4. Details of the following reserved land, and estimated values and methods for disposing of such land:
(a) Lots of land or units of buildings for the public;
(b) Rental houses;
(c) Other appurtenant and welfare facilities, etc.;
5. A detailed statement of the land or building previously held by each qualified purchaser, and the prices thereof (or the prices as at the date of permission by the head of the relevant Si/Gun, if buildings are demolished under Article 37 (3) before deliberation is conducted pursuant to Article 26) as at the date of receipt of outcomes of deliberation conducted pursuant to Article 26;
6. The estimated improvement project costs (including rebuilding charges imposed under the Restitution of Excess Rebuilding Gains Act, in the case of a small-scale reconstruction project), and the amount apportioned to the association members and the time for apportionment;
7. A detailed statement of rights, other than the ownership of the land or building previously held by each qualified purchaser;
8. A detailed statement of rights of each tenant for compensation, and the amount assessed thereon (limited to at-risk house improvement projects);
9. Other matters prescribed by Presidential Decree concerning the rights, etc. related to the small-scale housing improvement project.
(2) Where a resolution is required under the main sentence of Article 29 (3), the association shall notify its members in writing of the matters referred to in paragraph (1) 3 through 6, 30 days prior to the date of a general meeting.
(3) Management and disposal plans formulated under paragraph (1) shall comply with the following standards:
1. Sites or buildings shall be allocated to the applicants for sale in units in a balanced manner; and shall be utilized rationally, in comprehensive consideration of the areas and status of use of the land or buildings previously held by each qualified purchaser, environments, and other matters;
2. The surface area of excessively narrow or broad land or buildings shall be increased or reduced to make the size of the sites or buildings become reasonable;
3. Cash settlements may be paid to persons who have acquired excessively narrow land or buildings, or land sub-divided after the designation of an improvement zone;
4. Where it is particularly necessary to adjust the surface area of land to prevent disasters or hygiene risks, compensation may be made in lieu of land by expanding excessively narrow land, or by granting co-owning shares in part of a building and the site on which such building stands;
5. A plan for design for sale in units shall be formulated as at the date of expiration of the filing period for applications for sale in units set under Article 28;
6. Where one household or one person owns one or more house or parcel of land, one house shall be supplied, and where at least two persons not belonging to the same household jointly own one house or parcel of land, only one house shall be supplied;
7. Notwithstanding subparagraph 6, houses may be supplied as follows:
(a) Houses may be supplied, as prescribed by City/Do municipal ordinance, where at least two persons jointly own one parcel of land and the City/Do municipal ordinance separately prescribes the supply of houses;
(b) Each of the following owners of land or other property may be supplied as many houses as he/she owns, if he/she is:
(i) An owner of land or other property of a housing reconstruction project not located in any overpopulation control area designated under Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act;
(ii) An owner of land or other property who owns a house used as lodging or dormitory for workers (including public official workers);
(iii) The State, a local government, the Korea Land and Housing Corporation or similar entity;
(iv) A person who acquires a house owned by a public institution that relocates in compliance with the policy to relocate public institutions to provincial areas under Article 18 of the Special Act on Balanced National Development;
(c) Two houses may be supplied, if the price of such houses does not exceed the price prescribed in paragraph (1) 5 or if the area of such houses does not exceed the residential floor area of the previously used house, and the residential floor area of either of which shall not exceed 60 square meters: Provided, That a house with a residential floor area not exceeding 60 square meters among the houses supplied shall neither be resold (including sale and purchase, donation, and any other act changing any right, but excluding inheritance) nor arranged for resale until three years from the date of the public notice of the transfer under Article 40 (2);
(d) In the case of a housing improvement project in a city block, the number of houses to be supplied shall not exceed three, but a person who owns a multi-unit house may be supplied with the number of houses equal to the value computed by dividing the price prescribed in paragraph (1) 4 by the estimated price of the smallest unit of house among the houses to be sold in units (in such cases, fractions of a value shall be rounded down to the nearest whole number);
(e) Up to three houses may be supplied where a small-scale housing reconstruction project is implemented outside a high speculation area within any overpopulation control area designated under Article 6 (1) 1 of the Seoul Metropolitan Area Readjustment Planning Act.
(4) Contents of, and the standards for formulating, management and disposal plans and methods of management and disposal under paragraphs (1) through (3) and other necessary matters shall be prescribed by Presidential Decree.
(5) Paragraphs (1) through (4) shall apply mutatis mutandis to management and disposal plans formulated directly by the head of a Si/Gun.
 Article 34 (Disposal, etc. According to Authorized Project Implementation Plans)
(1) The project implementer of a housing improvement project in a city block or a small-scale reconstruction project shall dispose of or manage sites and buildings created by implementing the project according to the authorized project implementation plan.
(2) The project implementer of a housing improvement project in a city block or a small-scale reconstruction project shall supply buildings constructed by implementing the project to the owners of land or other property according to the management and disposal plan authorized under Article 29.
(3) A project implementer who builds houses within a project zone may separately determine the conditions of, methods and procedures for, recruiting occupants, and the methods, period, and procedures for making payments for housing units (referring to the deposit, intermediate payment, and balance), and the methods and procedures for supplying housing units, etc. within the limits prescribed by Presidential Decree, upon obtaining approval from the head of the relevant Si/Gun, notwithstanding Article 54 of the Housing Act.
(4) Where any land or buildings remain after applications for sale in units have been filed under Article 28, a project implementer may set the remaining land or buildings as reserved land or buildings for the purposes prescribed by the articles of association, etc., or the project implementation plan; or may sell them in units to persons other than association members. In such cases, public announcement of sale in units, procedures for filing applications for sale in units, and other necessary matters, shall be prescribed by Presidential Decree.
(5) Where any quasi-public rental housing defined in subparagraph 5 of Article 2 of the Special Act on Private Rental Housing (hereinafter referred to as "quasi-public rental housing") is not supplied to persons until the date on which approval of completion or completion of construction works is publicly notified under Article 39, the Minister of Land, Infrastructure and Transport, the head of the relevant Si/Gun, the Korea Land and Housing Corporation or similar entity may acquire the relevant rental housing. In such cases, the procedures and methods for acquiring such rental housing, the prices thereof, and other necessary matters, shall be prescribed by Presidential Decree.
(6) Where rental houses are built by implementing a small-scale housing improvement project, the project implementer may separately determine standards for lease terms and conditions, such as tenant eligibility requirements, method of selecting tenants, rental security deposits, and rents, and standards for preferential sale to non-homeowner households, within the limits prescribed by Presidential Decree after obtaining approval from the head of the relevant Si/Gun, notwithstanding Articles 42 and 44 of the Special Act on Private Rental Housing and Articles 48, 49, and 50-3 of the Special Act on Public Housing.
(7) A project implementer may supply the housing units remaining after being supplied to eligible persons under paragraphs (2) through (6) to those other than the eligible persons under paragraphs (2) through (6).
(8) Article 54 of the Housing Act shall apply mutatis mutandis to the methods, procedures, etc. for supplying housing units referred to in paragraph (7): Provided, That where a project implementer has received a favorable judgment in a claim requesting sale under Article 35, and has taken buildings to be sold in-units as security upon depositing compensation to prevent loss to prospective occupants, he/she may recruit occupants, notwithstanding Article 54 of the Housing Act, even before the favorable judgment becomes final and conclusive, but he/she shall obtain the ownership of the site on which such housing units stand, before applying for approval of completion under Article 39.
Section 4 Measures, etc. for Implementing Projects
 Article 35 (Request for Sale)
(1) The project implementer of a housing improvement project in a city block or a small-scale reconstruction project (excluding where the owners of land or other property implement such project) shall demand in writing each of the following persons to reply as to whether he/she consents to establish an association or to designate a project implementer within 30 days from the date of receipt of outcomes of deliberation conducted pursuant to Article 26:
1. A person who has not consented to establish an association under Article 23 (1), (2) or (4);
2. A person who has not consented to designate the head of the relevant Si/Gun, the Land and Housing Corporation or similar entity, or a qualified developer as a project implementer under Article 18 (1) or 19 (1).
(2) A person in receipt of a demand under paragraph (1) shall reply thereto within 60 days from the date of receipt thereof.
(3) An owner of land or other property who has not replied within the period prescribed in paragraph (2) shall be deemed to have replied notifying his/her intent not to consent to establish an association or to designate a project implementer.
(4) A project implementer may request the owners of land or other property, building owners or land owners who have replied notifying their intent not to consent to establish an association or to designate a project implementer, to transfer their ownership and other rights to the buildings or land, within 60 days from the expiration of the period prescribed in paragraph (2).
 Article 36 (Measures for Persons Failing to File Applications for Sale in Units, etc.)
(1) The project implementer of a housing improvement project in a city block or a small-scale reconstruction project shall consult with each of the following persons on the compensation for any loss arising in connection with the land, buildings or other rights within 90 days from the date the project implementation plan is authorized and publicly notified pursuant to Article 29: Provided, That the project implementer may commence the consultation upon expiration of the filing period for applications for sale in units:
1. A person who has not filed an application for sale in units;
2. A person who has withdrawn his/her application for sale in units before the expiration of the filing period for applications for sale in units;
3. A person excluded from qualified purchasers according to the management and disposal plan authorized under Article 29.
(2) Where no agreement is reached through consultation under paragraph (1), the project implementer shall apply for adjudication on expropriation or file a lawsuit requesting sale under Article 35 within 60 days after the expiration of the period prescribed in paragraph (1).
(3) Where a project implementer applies for adjudication on expropriation or files a lawsuit requesting sale after the lapse of the period prescribed in paragraph (2), he/she shall pay interest to the owners of the relevant land or other property, for the delayed days, as prescribed by Presidential Decree.
 Article 37 (Suspension of Using, and Gaining Benefit from, Buildings, etc. and Demolition, etc. Thereof)
(1) After a project implementation plan is authorized, no title holder, including an owner, a person with superficies, a person with a right to lease on deposit basis, or a leaseholder of the previously used land or building, shall use or benefit from such land or building until public notice of transfer is given pursuant to Article 40: Provided, That the same shall not apply in any of the following cases:
1. Where consent is obtained from the relevant project implementer;
2. Where the compensation process required under the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects is not completed.
(2) A project implementer shall demolish existing buildings after obtaining authorization for a management and disposal plan under Article 29.
(3) Notwithstanding paragraph (2), a project implementer may demolish existing buildings after obtaining consent from the owners of the existing buildings and permission from the head of the relevant Si/Gun in any of the following circumstances. In such cases, the demolition of such buildings does not affect any rights and obligations of the owners of land or other property:
1. Where an accident is likely to occur, such as collapse of existing buildings prescribed in the related statutes, including the Framework Act on the Management of Disasters and Safety, the Housing Act, and the Building Act;
2. Where crimes are likely to occur due to clustering of vacant and abandoned houses.
(4) Where a project implementer demolishes existing buildings under paragraph (2), the head of the relevant Si/Gun may restrict the demolition of buildings at any time prescribed as follows:
1. Before sunrise and after sunset;
2. When the Administrator of the Korea Meteorological Administration announces a severe weather alert under Article 13 of the Weather Act, because a serious disaster is likely to occur in the relevant area due to a torrential rain, heavy snowfall, storm surge, tsunami, typhoon, strong wind, high wave, cold wave, etc.;
3. When a disaster defined in Article 3 of the Framework Act on the Management of Disasters and Safety occurs;
4. The time the head of the relevant Si/Gun deems equivalent to that referred to in subparagraphs 1 through 3.
 Article 38 (Termination of Contracts, Such as Superficies)
(1) Where it becomes impossible to achieve the objective of establishing the superficies, right to lease on a deposit basis, or right to lease due to the implementation of a small-scale housing improvement project, any holders of said rights may terminate the relevant contract.
(2) Any right to claim the return of the key money for lease on deposit basis, deposit money, and other money for a contract, which are held by a person entitled to terminate a contract under paragraph (1), may be exercised against the project implementer.
(3) A project implementer who has made a payment upon the exercise of the right to claim the return of money under paragraph (2), may demand its reimbursement by the owners of relevant land or other property.
(4) Where no reimbursement is made pursuant to paragraph (3), the project implementer may seize the site or buildings to be vested in the owners of relevant land or other property. In such cases, the seized rights shall have the same effect as a mortgage.
(5) Articles 280, 281 and 312 (2) of the Civil Act, Article 4 (1) of the Housing Lease Protection Act, and Article 9 (1) of the Commercial Building Lease Protection Act, shall not apply to the periods of contracts for establishing the superficies or the right to lease on a deposit basis, or the periods of lease contracts, where the management and disposal plan has been authorized pursuant to Article 29.
Section 5 Measures, etc. Following Completion of Construction Works
 Article 39 (Public Notice of Approval of Completion and Completion of Construction Works)
(1) Upon completing construction works for a small-scale housing improvement project, a project implementer, other than the head of a Si/Gun, shall obtain approval of completion from the head of the relevant Si/Gun.
(2) Upon receipt of an application for approval of completion under paragraph (1), the head of a Si/Gun shall perform a final inspection without delay. In such cases, the head of the Si/Gun may entrust the final inspection to any related administrative agency, Government-invested institution, research institute, or any other specialized agency or organization, if necessary to efficiently conduct the final inspection.
(3) The head of a Si/Gun shall grant approval of completion and publicly notify such fact in the official bulletin of the relevant local government, if a small-scale housing improvement project is determined complete as specified in the authorized project implementation plan based on the findings from the final inspection conducted pursuant to paragraph (2).
(4) Upon completing construction works for a small-scale housing improvement project directly implemented by the head of a Si/Gun, the head of the Si/Gun shall publicly notify such completion in the official bulletin of the relevant local government.
(5) Where a completed building satisfies the standards prescribed by Presidential Decree, such as where there is no hindrance in using the completed building even before approval of completion is granted under paragraph (1), the head of the relevant Si/Gun may permit the relevant project implementer to allow the prospective occupants to use the completed building: Provided, That where the head of a Si/Gun is a project implementer, he/she may allow the prospective occupants to use the completed building without permission.
(6) Where completion of construction works is publicly notified pursuant to paragraphs (3) and (4), matters on which the head of a Si/Gun has consulted with the head of the relevant administrative agencies concerning the final inspection or similar process according to authorization, permission, etc. deemed granted under Article 55 shall be deemed to have undergone the relevant final inspection or similar process.
 Article 40 (Public Notice of Transfer, Restrictions on Change in Rights, etc.)
(1) Where public notice is given under Article 39 (3) or (4), the project implementer shall conduct boundary surveys without delay; take the procedure for dividing land; notify each qualifier purchaser of matters prescribed in the management and disposal plan; and transfer the ownership of each site or building to each person: Provided, That where it is necessary for efficiently implementing a small-scale housing improvement project, the project implementer may obtain approval of completion for a completed site or building even before fully completing construction works for the small-scale housing improvement project and may transfer the ownership of the completed site or building to each qualified purchaser.
(2) To transfer the ownership of a site or building under paragraph (1), the project implementer shall publicly notify the details thereof in the official bulletin of the relevant local government; and shall report the same to the head of the relevant Si/Gun. In such cases, a person entitled to a site or building shall acquire the ownership of the site or building on the day following the date of public notice.
(3) When public notice of transfer is given pursuant to paragraph (2), the project implementer shall entrust or apply for registration of a site or building to the competent district court or registry office without delay. In such cases, matters necessary for such registration shall be prescribed by the Supreme Court Regulations.
(4) No mortgage or other right shall be registered from the date of public notice of transfer under paragraph (2) to the time of registration under paragraph (3), with regard to a small-scale housing improvement project.
 Article 41 (Settlement Money, etc.)
(1) Where there is a difference between the price of the land or building previously owned by a person who has obtained a site or a unit of a building and the price of the site or the unit of the building, the project implementer shall either collect or pay the equivalent to such difference (hereinafter referred to as "settlement money") from, or to that person, after public notice of transfer is given under Article 40 (2).
(2) Notwithstanding paragraph (1), a project implementer may collect or pay settlement money in installments for a specific period from the time the management and disposal plan is authorized until the date public notice of transfer is given under Article 40 (2), if collection and payment in installments is prescribed in the articles of association, etc. or separately determined by a resolution passed at a general meeting.
(3) Any title holder who has established a mortgage on any land or building located within a project zone, may exercise the mortgage against the settlement money to be paid to the owner of the land or building on which such mortgage has been established, by foreclosing before the settlement money is paid.
Section 6 Bearing, etc. of Costs
 Article 42 (Principles of Bearing Costs and Funding)
(1) Except as otherwise expressly provided for in this Act or other statutes, the improvement project costs shall be borne by the relevant project implementer.
(2) The head of a Si/Gun may fully or partially bear the cost incurred in constructing the following facilities through a small-scale housing improvement project implemented by a project implementer, other than the head of a Si/Gun:
1. Major fundamental infrastructure and joint-use facilities prescribed by Presidential Decree, among urban/Gun planning facilities;
2. Temporary accommodation referred to in Article 43 (3).
(3) A project implementer may impose on, and collect from, the owners of land or other property as a charge, the difference between the cost it bears under paragraph (1) and the profit accrued in the course of implementing the relevant small-scale housing improvement project.
(4) A project implementer may impose and collect a late-payment fee on and from any owner of land or other property who has neglected to pay a charge under paragraph (1).
 Article 43 (Construction, etc. of Fundamental Infrastructure)
(1) If it is deemed necessary to expand fundamental infrastructure or joint-use facilities in implementing a small-scale housing improvement project, the head of the relevant Si/Gun may construct them directly or require the project implementer to construct them.
(2) Where a project implementer has constructed new fundamental infrastructure or replacement for existing fundamental infrastructure in the course of implementing a small-scale housing improvement project, the ownership of the existing fundamental infrastructure shall vest in the project implementer without compensation, while the ownership of the newly constructed fundamental infrastructure shall vest in the State or the local government responsible for managing it, without compensation, notwithstanding the State Property Act or the Public Property and Commodity Management Act.
(3) Where a small-scale housing improvement project is implemented, the head of a Si/Gun, the Land and Housing Corporation or similar entity may preferentially supply public rental housing defined in subparagraph 1 of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public rental housing") owned by him/her or it, to the owners or tenants (limited to those actually residing in the project zone) of houses to be demolished in the course of implementing the project to use as temporary accommodation as prescribed by Presidential Decree, notwithstanding Article 54 of the Housing Act.
CHAPTER IV SUPPORT TO FACILITATE PROJECTS
 Article 44 (Subsidies and Loans)
A local government may subsidize, finance, provide loans, or arrange for loans to partially cover the cost incurred regarding an unoccupied house improvement project or a small-scale housing improvement project implemented by a project implementer, other than the head of a Si/Gun.
 Article 45 (Reduction or Exemption of User Fees on Joint-Use Facilities)
(1) Where the head of a local government permits the use of, or leases, joint-use facilities in a project zone pursuant to Article 20 or 28 of the Public Property and Commodity Management Act for public interests, such as invigorating communities, he/she may reduce or exempt user fees on such facilities, notwithstanding Articles 22 and 32 of the same Act.
(2) Criteria for public interests, facilities eligible for reduction or exemption of user fees under paragraph (1), and other necessary matters, shall be prescribed by City/Do municipal ordinance.
 Article 46 (Special Cases concerning Unoccupied House Improvement Projects)
Where the site on which an unoccupied house stands or the unoccupied house ceases to comply with any Act or subordinate statute due to enactment of or amendment to the statutes or any other cause prescribed by Presidential Decree, the project implementer of the unoccupied house improvement project may reconstruct it or alter the use of the unoccupied house within the scope prescribed by Presidential Decree after deliberation by the relevant local building committee.
 Article 47 (Special Cases concerning Restriction on Activities in Improvement Zones)
Notwithstanding Article 19 of the Act on the Act on the Improvement of Urban Areas and Residential Environments, a project implementer may implement an unoccupied house improvement project or a small-scale housing improvement project within any improvement zone in which a residential environment improvement project is implemented as prescribed in Article 23 (1) 1 of the same Act.
 Article 48 (Special Cases concerning Relaxing, etc. Building Regulation)
(1) A project implementer is eligible for relaxed application of any of the following standards or restrictions for buildings to be constructed by implementing an autonomous housing improvement project (limited to where such project is reflected in a neighborhood-regenerating revitalization plan defined in Article 2 (1) 6 (b) of the Special Act on Promotion of and Support for Urban Regeneration), a housing improvement project in a city block, or an at-risk house improvement project, within the limits prescribed by Presidential Decree, after deliberation by the relevant local building committee:
1. Landscaping standards for building sites under Article 42 of the Building Act;
2. Standards for calculation of building-to-land ratios under Article 55 of the Building Act (limited to city blocks located on slopes);
3. Standards for vacant lots within building sites under Article 58 of the Building Act;
4. Building height restrictions under Articles 60 and 61 of the Building Act;
5. Standards for installation of appurtenant facilities and welfare facilities under Article 35 (1) 3 and 4 of the Housing Act;
6. Except as otherwise expressly provided for in subparagraphs 1 through 5, matters prescribed by Presidential Decree for smoothly implementing the project.
(2) Where a project implementer installs joint-use facilities or communal facilities prescribed by Presidential Decree among welfare facilities defined in subparagraph 14 of Article 2 of the Housing Act (hereafter in this Article, referred to as "joint-use facilities or similar facilities") in a building to be constructed by implementing a small-scale housing improvement project, he/she is eligible to use the floor area ratio prescribed by City/Do municipal ordinance within the aggregate of the floor area ratio applicable to the relevant area under Article 78 of the National Land Planning and Utilization Act and the floor area ratio applicable to the joint-use facilities or similar facilities.
(3) Where a project implementer secures a right to use an on-road parking lot or off-road parking lot defined in subparagraph 1 of Article 2 of the Parking Lot Act (hereinafter referred to as "right to use a parking lot") regarding a building to be constructed by implementing an unoccupied house improvement project or a small-scale housing improvement project to the extent prescribed by Presidential Decree, the head of a Si/Gun may relax the standards for installation of parking lots to the extent corresponding thereto.
(4) Methods and procedures for securing a right to use a parking lot under paragraph (3), standards for calculating costs, standards for reduction, and other necessary matters, shall be prescribed by City/Do municipal ordinance.
 Article 49 (Special Cases concerning Construction of Rental Housing)
(1) Where a project implementer constructs the following rental housing by implementing an unoccupied house improvement project or a small-scale housing improvement project, the project implementer may construct it up to the upper limit of the floor area ratio prescribed in Article 78 of the National Land Planning and Utilization Act and other statutes, notwithstanding of the floor area ratio prescribed by City/Do municipal ordinance pursuant to the aforesaid Article: Provided, That the ratio of the total floor area of the rental housing to the total floor area shall not be less than the ratio prescribed by Presidential Decree, which shall exceed 20 percent:
1. Public rental housing;
2. Quasi-public rental housing.
(2) Where a project implementer constructs rental housing under Article 51 (1) as multi-household housing or multi-unit housing, the head of a Si/Gun shall apply the standards prescribed by Presidential Decree regarding the standards for the installation of parking lots, notwithstanding Article 35 of the Housing Act.
 Article 50 (Improvement Assisting Agencies)
(1) To facilitate unoccupied house improvement projects and small-scale housing improvement projects, the Minister of Land, Infrastructure and Transport may designate any of the following institutions as an improvement assisting agency:
1. The Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act (hereinafter referred to as the "Korea Land and Housing Corporation");
2. The Korea Research Institute for Human Settlements established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes, Etc.;
3. Any other public institution prescribed by Presidential Decree.
(2) Improvement assisting agencies may perform the following duties:
1. Support policies on unoccupied house improvement projects and small-scale housing improvement projects;
2. Provide counsel and support education on unoccupied house improvement projects and small-scale housing improvement projects;
3. Provide support in formulating project implementation plans and management and disposal plans for unoccupied house improvement projects and small-scale housing improvement projects;
4. Other duties prescribed by Ministerial Decree of Land, Infrastructure and Transport.
(3) The organizational structure and operation of improvement assisting agencies and other related matters shall be prescribed by Presidential Decree.
 Article 51 (Support in Rental Management Affairs, etc.)
(1) Where the project implementer of an unoccupied house improvement project or a small-scale housing improvement project ameliorates any housing owned by him/her and supplies it as rental housing that satisfies conditions prescribed by Presidential Decree, such as the compulsory rental period, initial rents and annual increase rate of rents, the Minister of Land, Infrastructure and Transport or the head of a local government may assist in the following affairs (including affairs related to leasing neighborhood living facilities referred to in Article 2 of the Building Act, which are appurtenant to the rental housing; hereinafter referred to as "rental management affairs"):
1. Recruiting and selecting persons who intend to operate rental business;
2. Constructing and purchasing rental housing;
3. Recruiting, taking occupancy, evicting and vacating, etc. of tenants;
4. Imposing and collecting rents.
(2) The Minister of Land, Infrastructure and Transport or the head of a local government may entrust rental management affairs to the Korea Land and Housing Corporation. In such cases, the Korea Land and Housing Corporation entrusted with such affairs may re-entrust said affairs to a person engaged in managing the lease of residential buildings pursuant to Article 7 of the Special Act on Private Rental Housing.
(3) Where it is necessary to verify tenant eligibility to perform rental management affairs, the Minister of Land, Infrastructure and Transport or the head of a local government (including the president of the Korea Land and Housing Corporation that performs rental management affairs entrusted pursuant to paragraph (2); hereafter in this Article, the same shall apply) may request the heads of relevant administrative agencies to provide data or information referred to in Article 55 of the Housing Act. In such cases, the head of the relevant administrative agencies shall comply with such request, except in special circumstances.
(4) To support rental management affairs efficiently, the Minister of Land, Infrastructure and Transport or the head of a local government may link said affairs to or utilize the rental housing information system built under Article 60 of the Special Act on Private Rental Housing.
(5) Notwithstanding Article 49 (1) of the Special Act on Private Rental Housing, a rental business operator assisted by the Korea Land and Housing Corporation pursuant to paragraph (1) or (2) need not purchase a guarantee for rental deposit, as prescribed by Presidential Decree.
(6) Where a person who supplies rental housing pursuant to paragraph (1) intends to entrust rental management affairs to a person other than the Korea Land and Housing Corporation, the Minister of Land, Infrastructure and Transport may require the person to purchase a written guarantee to protect the rights of lessors and lessees.
(7) Standards, methods, and procedures for supporting rental management affairs under paragraph (1) and other related matters shall be prescribed by Presidential Decree.
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 52 (Public Notice of Guidelines for Unoccupied House Improvement Projects, etc.)
(1) To assist the head of a Si/Gun in promoting unoccupied house improvement projects efficiently and systematically, the Minister of Land, Infrastructure and Transport may determine and publicly notify guidelines for any of the following matters:
1. Formulation of unoccupied house improvement plans;
2. Methods and standards for fact-finding surveys of unoccupied houses;
3. Demolition and management of unoccupied houses;
4. Other matters prescribed by Presidential Decree.
(2) To ascertain whether the guidelines for the matters prescribed in paragraph (1) are complied with, the Minister of Land, Infrastructure and Transport may request the head of a Si/Gun to provide data or information or to report thereon. In such cases, the head of the relevant Si/Gun shall comply with such request, except in special circumstances.
(3) Where necessary to formulate policies on the improvement and utilization of unoccupied houses, the Minister of Land, Infrastructure and Transport may request the heads of relevant central administrative agencies, the heads of local governments or the heads of public institutions to submit data or information on unoccupied houses. In such cases the heads of agencies or institutions in receipt of such request shall comply therewith except in special circumstances.
 Article 53 (Provision of Technical Support and Information)
(1) To facilitate unoccupied house improvement projects and small-scale housing improvement projects, the head of a Si/Gun may provide project implementers, etc. with technical support and information regarding the following:
1. Design, construction, maintenance of housing (excluding multi-family housing subject to compulsory management defined in Article 2 (1) 2 of the Multi-Family Housing Management Act);
2. Establishment of a residents' consensus body and an association;
3. Formulation of project implementation plans and management and disposal plans;
4. Other matters prescribed by City/Do municipal ordinance.
(2) To provide the technical support and information under paragraph (1) efficiently, the head of a Si/Gun may utilize any of the following centers:
1. An urban regeneration support center established under Article 11 of the Special Act on Promotion of and Support for Urban Regeneration;
2. A housing welfare center established under Article 22 of the Framework Act on Residence;
3. A housing management support center established under Article 35-2 of the Building Act;
4. A housing support center established under Article 17 of the Act on the Support for Housing Disadvantaged Persons including Persons with Disabilities and the Aged;
5. Any other center established for purposes similar to those of the centers prescribed in subparagraphs 1 through 4 pursuant to ordinance of the relevant local government.
 Article 54 (Supervision, etc.)
(1) Each Mayor/Do Governor shall report the outcomes of promoting small-scale housing improvement projects quarterly to the Minister of Land, Infrastructure and Transport, and the head of a Si/Gun/autonomous Gu shall report the same to the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor.
(2) Where necessary for supervising whether an improvement project is smoothly implemented, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/autonomous Gu, may order a person who performs the affairs under this Act, such as a project implementer, improvement project management contractor, demolition business operator, designer or contractor, to report matters prescribed by Ministerial Decree of Land, Infrastructure and Transport or to submit data thereon, and may have public officials under his/her control inspect matters related to such affairs.
(3) A project implementer, other than the head of a Si/Gun, the Land and Housing Corporation or similar entity, shall undergo an audit conducted by an auditor referred to in Article 3 of the Act on External Audit of Stock Companies.
(4) Where a small-scale housing improvement project is deemed to violate this Act, an order or disposition issued under this Act, or the relevant project implementation plan, the Minister of Land, Infrastructure, a Mayor/Do Governor, the head of a Si/Gun/autonomous Gu may take such measures as revoking authorization for the project implementation plan, to the extent necessary for appropriately implementing the small-scale housing improvement project. In such cases, the Minister of Land, Infrastructure, a Mayor/Do Governor, the head of a Si/Gun/autonomous Gu may organize an inspection team comprised of relevant public officials and experts to conduct an on-site inspection of the small-scale housing improvement project and take necessary measures, such as mediating disputes and requesting the correction of violations.
(5) A project implementer (referring to the executive officers of an association, including the liquidator, in the case of an association; or a representative where the owners of land or other property solely implement a project) shall disclose documents and materials related to the implementation of a small-scale housing improvement project to the association members, owners of land or other property, or tenants via the Internet and by other means within 15 days after they are prepared or amended.
(6) A project implementer (referring to the executive officers of an association, including the liquidator, in the case of an association; or a representative where the owners of land or other property solely implement a project) or improvement project management contractor shall keep the documents or related materials referred to in paragraph (5), and stenographic records, sound recordings, or video materials prepared when a general meeting or an important meeting is held, until the time of liquidation.
(7) No person shall engage in any of the following conduct regarding the selection of a contractor, designer, or improvement project management contractor:
1. Providing, or indicating an intention or promising to provide, money or valuables, entertainment, or other economic benefits;
2. Receiving, or accepting an indication of an intention to provide, money or valuables, entertainment, or other economic benefits;
3. Engaging in the conduct prescribed in subparagraph 1 or 2 through a third party.
 Article 55 (Authorization, Permission, etc. Deemed Granted under Other Acts)
(1) Where a project implementer has obtained authorization for its project implementation plan pursuant to Article 13 or 29 (referring to the time a project implementation plan has been formulated, where the head of a Si/Gun directly implements an unoccupied house improvement project or a small-scale housing improvement project; hereafter in this Article, the same shall apply), the project implementer is deemed to have obtained the following authorization, permission, etc.; and where authorization for a project implementation plan is publicly notified pursuant to Article 12 (3) or 29 (5), the authorization, permission, etc. granted under the following related Acts shall be deemed publicly notified or announced:
1. Approval of a project plan under Article 15 of the Housing Act;
2. Approval of a housing construction project plan under Article 35 of the Special Act on Public Housing;
3. Building permission under Article 11 of the Building Act, building permission or reporting on building of a temporary structure under Article 20 of the same Act; and consultation on constructing a building under Article 29 of the same Act;
4. Permission to persons, other than the competent road management authority, to implement roadworks under Article 36 of the Road Act; and permission to occupy and use roads under Article 61 of the same Act;
5. Authorization for general waterworks business under Article 17 of the Water Supply and Waterworks Installation Act; and authorization for private-use waterworks or for private-use industrial waterworks under Article 52 or 54 of the same Act;
6. Permission for construction works related to a public sewerage system under Article 16 of the Sewerage Act; or reporting on installation of private sewerage treatment facilities under Article 34 (2) of the same Act;
7. Permission to use under Article 30 of the State Property Act;
8. Permission to use and to gain benefits under Article 20 of the Public Property and Commodity Management Act;
9. Reporting on the commencement or alteration of a project under Article 86 (1) of the Act on the Establishment, Management, etc. of Spatial Data;
10. Designation of the implementer of an urban or Gun planning facility project under Article 86 of the National Land Planning and Utilization Act; and authorization for an implementation plan under Article 88 of the same Act;
11. Authorization for, or reporting on, a plan for works for setting up electric installations for private use under Article 62 of the Electric Utility Act;
12. Consent to building permission, etc. under Article 7 (1) of the Act on Fire Prevention and Installation, Maintenance, and Safety Control of Fire-Fighting Systems; and permission to build a factory, etc. under Article 6 (1) of the Act on the Safety Control of Hazardous Substances (a factory, etc. shall be limited to those related to any factory building or facilities appurtenant thereto).
(2) Where a project implementer intends to be deemed granted authorization, permission, etc. under paragraph (1), the project implementer shall submit related documents prescribed by the relevant Act when filing an application for authorization for its project implementation plan: Provided, That the project implementer may submit the related documents by the deadline set by the head of the relevant Si/Gun, if it impossible to submit such documents when filing an application because the contractor has not been selected, or if its project implementation plan is authorized pursuant to paragraph (4).
(3) Where any of the authorization, permission, etc. deemed granted under the subparagraphs of paragraph (1) relates to a project implementation plan that the head of a Si/Gun intends to authorize or formulate, he/she shall consult with the heads of related administrative agencies in advance, and the head of each related administrative agency in receipt of a request for consultation shall submit his/her opinion within 20 days from the date of receipt of such request (referring to the date on which the documents are delivered to the heads of the related administrative agencies, in cases falling under the proviso to paragraph (2)). If no reply is submitted by the head of a related administrative agency within 20 days, consultation shall be deemed held.
(4) Where the head of a Si/Gun deems it necessary to implement a project urgently due to a natural disaster or other inevitable reasons, he/she may authorize a project implementation plan before completing consultation with the heads of related administrative agencies, notwithstanding paragraph (3). In such cases, no authorization, permission, etc. shall be deemed granted under paragraph (1) until such consultation is completed.
(5) Where any authorization, permission, etc. is granted pursuant to paragraph (1) regarding a project under any other Act, a project implementer is exempt from fees imposed for granting the relevant authorization, permission, etc., and fees for using or occupying the relevant State or publicly-owned land under the relevant Acts or City/Do municipal ordinance.
 Article 56 (Application Mutatis Mutandis of the Act on the Improvement of Urban Areas and Residential Environments)
Articles 27 and 36 of the Act on the Improvement of Urban Areas and Residential Environments shall apply mutatis mutandis to the methods, etc. for obtaining consent from owners of land or other property; Articles 38 and 40 through 46 of the same Act to the legal personality, articles of association, and executive officers of associations; Articles 47 and 48 of the same Act to resident representatives' committees and general meetings of owners of land or other property; Article 51 of the same Act to the standards, etc. for donation of fundamental infrastructure; Article 54 of the same Act to the upper limits, etc. of floor area ratios; Articles 56 and 58 of the same Act to the authorization, formulation, etc. of project implementation plans by the head of a Si/Gun; Article 71 of the same Act to the disposal, etc. of buildings, etc., the owners of which are difficult to be identified; Article 74 of the same Act to the assessment, etc. of property and rights; Article 82 of the same Act to performance guarantee; Articles 83 and 85 of the same Act to the procedures, methods, etc. of approval of completion, completion of construction works, etc.; Article 87 of the same Act to the confirmation of rights, etc. to sites and buildings where ownership is transferred; Articles 89 and 90 of the same Act to the methods, procedures, etc. for assessing settlement money; Article 93 of the same Act to the imposition, collection, etc. of charges and late payment fees; Articles 95 and 97 of the same Act to the bearing of costs by the manager of fundamental infrastructure, vesting of such infrastructure, etc.; Article 98 of the same Act to the disposal, etc. of State or public property; Articles 102 through 110 of the same Act to improvement project management contractors; Articles 111 through 113, 124 and 125 of the same Act to the supervision, etc. of small-scale housing improvement projects; and Articles 115 and 120 through 122 to education of executive officers of associations, obligations of owners of land or other property to explain, etc.
 Article 57 (Succession to Rights and Duties of Project Implementers, etc.)
When a project implementer or a holder of any title regarding a small-scale housing improvement project (hereinafter referred to as "title holder") is changed, the rights and duties of the former project implementer or title holder shall be succeeded by the new project implementer or title holder.
 Article 58 (Legal Fiction as Public Officials in Application of Penalty Provisions)
Executive officers and liquidators of an association, association management specialists, and the representative (referring to the executive officers in the case of corporations), employees, and outsourcees of improvement project management contractors shall be deemed public officials for the purposes of Articles 129 through 132 of the Criminal Act.
CHAPTER VI PENALTY PROVISIONS
 Article 59 (Penalty Provisions)
Each of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding fifty million won:
1. A person who forges a written consent obtained from an owner of land or other property under Article 25 (1);
2. A person who provides, indicates an intention or promises to provide, receives, or accepts an indication of an intention to provide, money, valuables or other economic benefits, in violation of any subparagraph of Article 54 (7).
 Article 60 (Penalty Provisions)
Each of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding thirty million won:
1. A person who uses, provides, or divulges data or information, in violation of Article 8 (4);
2. A person who selects, or is selected as, a contractor, in violation of Article 20;
3. A person who obtains membership of an association, or an owner of land or other property or an executive officer or employee of an association (including an association management specialist) who aids any third person to obtain membership of an association fraudulently or otherwise unlawfully, in violation of Article 24 (2);
4. A person who conceals the transfer or acquisition of a building or land to transfer or acquire a housing unit to be sold, in violation of Article 24 (2);
5. A person who sells or purchases a written consent obtained from any owner of land or other property under Article 25 (1);
6. A person who re-sells or arranges the resale of a house, in violation of the proviso to Article 33 (3) 7 (c).
 Article 61 (Penalty Provisions)
Each of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding twenty million won:
1. An executive officer of an association who promotes a project unilaterally without a resolution passed at a general meeting under Article 23 (6);
2. A person who establishes and operates a resident representatives' committee without the approval of a resident representatives' committee pursuant to Article 25 (2);
3. A person who promotes a project by establishing a resident representatives' committee unilaterally, although a resident representatives' committee has been established with approval under Article 25 (2);
4. A person who implements a project without obtaining authorization for a project implementation plan pursuant to Article 29; and a person who constructs a building in violation of the project implementation plan;
5. A person who transfers ownership under Article 40 without obtaining authorization for a project implementation plan pursuant to Article 29;
6. A project implementer, a resident representatives' committee or an improvement project management contractor that has disregarded an order issued pursuant to Article 54 (4) regarding the revocation, change or suspension of a disposition or the suspension or change of the relevant construction works;
7. An executive officer of an association (referring to the representative of owners of land or other property, if a project is implemented by such owners of land or other property) who discloses any false document or relevant materials referred to in Article 54 (5);
8. An executive officer of an association (referring to the representative of owners of land or other property, if a project is implemented by such owners of land or other property) who allows the inspection of, or delivers a copy of, any document or relevant materials referred to in Article 54 (6) which contain a false representation upon receipt of a request for inspection or copying.
 Article 62 (Penalty Provisions)
Each of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won:
1. A person who uses a building, etc. without obtaining approval of completion required under Article 39 (1); and a person who uses a building without obtaining permission for use from the head of a Si/Gun pursuant to paragraph (5) of the same Article;
2. A person who fails to undergo an audit pursuant to Article 54 (3);
3. An executive officer of an association (referring to the representative of the liquidator of an association or owners of land or other property, if a project is implemented by the liquidator of an association or owners of land or other property, or the representative of a qualified developer if the qualified developer designated under Article 19 is the project implementer) who fails to disclose the documents and materials related to the implementation of the relevant project via the Internet and by other means; or who fails to comply with a request of an association member or an owner of land or other property for the inspection or copying of such documents and materials, in violation of Article 54 (5);
4. An executive officer of an association (referring to the representative of the liquidator of an association or owners of land or other property, if a project is implemented by the liquidator of an association or owners of land or other property, or the representative of a qualified developer, if the qualified developer designated under Article 19 is the project implementer) who fails to prepare stenographic records, etc. or to keep related materials until the time of liquidation, in violation of Article 54 (6).
 Article 63 (Joint Penalty Provisions)
If the representative of a corporation or an agent or employee of, or any other person employed by, a corporation or an individual commits any violation prescribed in Articles 59, 60, 61, and 62 in conducting the business affairs of the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be subject to a fine prescribed in the relevant provision: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such violation.
 Article 64 (Administrative Fines)
(1) Each person who refuses, evades, or interferes with an on-site inspection conducted by an inspection team pursuant to Article 54 (4) shall be subjcet to an administrative fine of ten million won;
(2) Each of the following persons shall be subjcet to an administrative fine not exceeding five million won:
1. A person who neglects to give notice required under Article 40 (1);
2. A person who neglects to report or submit data pursuant to Article 54 (2).
(3) Administrative fines prescribed in paragraphs (1) and (2) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si/Gun/autonomous Gu, as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Applicability to Request for Sale)
(1) Article 35 shall begin to apply from the first application filed to obtain authorization to establish an association after this Act enters into force.
(2) Notwithstanding paragraph (1), the project implementer of a housing improvement project in a city block may request sale pursuant to Article 35, although it has filed an application for authorization to establish an association before this Act enters into force, and in such cases, "date of receipt of outcomes of deliberation" in Article 35 (1) shall be deemed "date on which this Act enters into force".
Article 3 (General Transitional Measures)
Any disposition issued, procedure taken, and act done under the provisions related to housing improvement projects in a city block and housing reconstruction projects (referring to housing reconstruction projects implemented in zones other than improvement zones; hereinafter the same shall apply) of the previous Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as the "previous Act"), as at the time this Act enters into force, shall be deemed issued, taken, and done under the relevant provisions of this Act.
Article 4 (Transitional Measures concerning Housing Improvement Projects in City Blocks, etc.)
Any housing improvement project in a city block and housing reconstruction project being implemented pursuant to the former Act shall be respectively deemed a housing improvement project in a city block and a small-scale reconstruction project implemented under this Act.
Article 5 (Transitional Measures concerning Committees of Promoters to Establish Associations)
Notwithstanding Article 21, a committee of promoters to establish an association, which was approved to implement a housing reconstruction project under the former Act before this Act enters into force, may perform the business affairs prescribed in Article 32 of the Act on the Improvement of Urban Areas and Residential Environments, such as selecting or replacing an improvement project management contractor, to implement a small-scale reconstruction project under this Act.
Article 6 (Transitional Measures concerning Formulation of Management and Disposal Plans)
Timing, procedures, etc. for formulating a management and disposal plan for a housing improvement project in a city block or a housing reconstruction project, for which an application has been filed to obtain approval of a project implementation or authorization for a project implementation plan under the former Act as at the time this Act enters into force, shall be governed by the former Act.
Article 7 (Transitional Measures concerning Penalty Provisions, etc.)
Application of penalty provisions and administrative fines for any violations committed regarding any housing improvement project in a city block and housing reconstruction project before this Act enters into force shall be governed by the former Act.
Article 8 Omitted.
Article 9 (Relationship to Other Statutes)
A citation of the former Act or any provision thereof in another statute, as at the time this Act enters into force, shall be deemed a citation of this Act or the provision thereof, if such corresponding provision exists herein.
ADDENDA <Act No. 14719, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 3 of the Addenda shall enter into force on February 9, 2018.
Articles 2 and 3 Omitted.