ENFORCEMENT DECREE OF THE REGIONAL DEVELOPMENT ASSISTANCE ACT
Presidential Decree No. 25942, Dec. 30, 2014
Amended by Presidential Decree No. 26928, Jan. 22, 2016
Presidential Decree No. 27285, jun. 28, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27472, Aug. 31, 2016
Presidential Decree No. 27473, Aug. 31, 2016
Presidential Decree No. 27972, Mar. 29, 2017
Presidential Decree No. 28097, jun. 2, 2017
CHAPTER I GENERAL PROVISIONS
CHAPTER II PROMOTION OF REGIONAL DEVELOPMENT PROJECTS
Section 1 Formulation and Details of Regional Development Plans
| Article 2 (Formulation of Regional Development Plans) |
| 1. | A regional development project to comprehensively and systematically develop a railroad station built and operated on the high-speed rail line under subparagraph 2 of Article 2 of the Railroad Construction Act and its surrounding areas; |
| Article 3 (Hearing Opinions of Residents, etc.) |
| (1) | Where the Minister of Land, Infrastructure and Transport, a Metropolitan City Mayor, Special Self-Governing City Mayor or Do Governor (hereinafter referred to as "Mayor/Do Governor") intends to hear opinions of the heads of relevant Sis, Guns or Gus (referring to the heads of autonomous Gus; hereinafter the same shall apply) pursuant to Article 7 (3) of the Act, he/she shall have them submit written opinions on the direction-setting for developing the relevant area and on the development projects necessary for such area, etc. |
| (2) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor intends to hear opinions of residents and relevant specialists pursuant to Article 7 (3) of the Act, he/she shall formulate a draft regional development plan; the Minister of Land, Infrastructure and Transport shall publicly announce the main points of the draft regional development plan in the Official Gazette and post them on the website, and a Mayor/Do Governor in the official report and on the website of the relevant Metropolitan City, Special Self-Governing Province or Do (hereinafter referred to as "City/Do") and send the details of the public announcement to the heads of relevant Sis, Guns or Gus to make them available for public inspection for at least 14 days. |
| (3) | A person who has opinions on the details of a draft regional development plan publicly announced pursuant to paragraph (2) may submit written opinions to the head of the relevant Si, Gun or Gu during the period for the public inspection. |
| (4) | The head of a Si, Gun or Gu shall submit the written opinion received pursuant to paragraph (3) and a written review on the opinion to the Minister of Land, Infrastructure and Transport or the relevant Mayor/Do Governor. |
| (5) | Where deemed necessary to gather consensus from residents and the relevant specialists on a draft regional development plan, the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may hold a public hearing. |
| (6) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor intends to hold a public hearing pursuant to paragraph (5), he/she shall publicly announce the following matters at least once in a daily nationwide newspaper or daily local newspaper covering the relevant area by not later than 14 days before the public hearing: |
| 1. | Objectives of the public hearing; |
| 2. | Date and venue of the public hearing; |
| 3. | Summary of a draft regional development plan. |
| (7) | Residents, specialists, etc. having opinions on the details of a draft regional development plan may attend a public hearing, directly state their opinions or submit written opinions (including an electronic document). |
| Article 4 (Modification of Insignificant Matters in Regional Development Plans) |
| (1) | "Modifying insignificant matters prescribed by Presidential Decree" in Article 8 (1) of the Act means: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| 1. | Modifying the scale of a regional development project (excluding road works; hereafter the same shall apply in this paragraph) under a regional development plan, falling under any of the following: |
| (a) | Increasing or decreasing the scale by up to 300,000 square meters where the scale of the relevant regional development project exceeds one million square meters; |
| (b) | Increasing or decreasing the scale by up to 30/100 where the scale of the relevant regional development project is less than one million square meters; |
| 2. | Modifying the project expense where the project expense for a regional development project under a regional development plan is less than three billion won, falling under any of the following: |
| (a) | Where the project expense modified is less than three billion won; |
| (b) | Where the project expense modified exceeds three billion won, but the amount increased is less than 30/100 of the original project expense; |
| 3. | Modifying road works under a regional development plan without changing the start point, end point and number of lanes of the road involved in a regional development project, falling under any of the following: |
| (a) | Modifying the length of a route by up to 30/100; |
| (b) | Modifying the width of the relevant road by up to 30/100; |
| 4. | Incorporating in a regional development plan the result of consultation between relevant administrative agencies regarding designating a regional development project zone under Article 11 of the Act or granting approval of an implementation plan under Article 23 of the Act; |
| 5. | Modifying any insignificant matter of a regional development project zone under the main text of Article 11 (6) of the Act; |
| 6. | Incorporating in a regional development plan any matter determined or modified pursuant to other Acts; |
| 7. | Correcting errors in land surveying, clerical errors or similar. |
| (2) | "Where the scale exceeds that prescribed by Presidential Decree" in Article 8 (1) 2 of the Act means cases where the scale of development under a regional development project exceeds one million square meters. <Newly Inserted by Presidential Decree No. 28097, Jun. 2, 2017> |
| Article 5 (Public Announcement of Regional Development Plans) |
| (1) | Where a Mayor/Do Governor obtains approval to formulate or amend a regional development plan pursuant to Article 8 (1) of the Act, he/she shall publicly announce the details in the public report of the relevant City/Do. |
| (2) | Where the Minister of Land, Infrastructure and Transport directly formulates and modifies a regional development plan pursuant to Articles 7 (2) and 8 (3) of the Act, he/she shall publicly announce the details in the Official Gazette. |
| (3) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor publicly announces a formulated or amended regional development plan pursuant to paragraphs (1) and (2), he/she shall send a copy of relevant documents, design drawings, etc. to the heads of Sis, Guns and Gus, and the heads of Sis, Guns and Gus shall make the copy of relevant documents, design drawings, etc. available for public inspection for at least 14 days. |
| Article 6 (Details of Regional Development Plans) |
| 1. | Promoting a regional development project; |
| 2. | Matters concerning areas requiring particularly intensive development and the methods of development; |
| 3. | Other matters the Minister of Land, Infrastructure and Transport deems necessary for regional development. |
| Article 7 (Restrictions on Formulating Regional Development Plans) |
When the Minister of Land, Infrastructure and Transport determines the total size of an area subject to a City/Do regional development plan and the total number of regional development plans that can be formulated pursuant to Article 10 of the Act, he/she shall consider relevant City's or Do's demand for development, balance with other Cities or Dos, etc.; and shall submit the case for deliberation by the National Land Policy Committee under Article 26 of the Framework Act on National Land (hereinafter referred to as "National Land Policy Committee").
Section 2 Regional Development Project Zones
| Article 8 (Standards for Designating Small-Scale Regional Development Project Zones) |
"Area which meets the standards prescribed by Presidential Decree" in Article 11 (1) 2 of the Act means an area meeting all of the following requirements: | 1. | The area shall fall under either of the following: |
| 3. | The area to be designated as a regional development project zone shall be less than 30,000 square meters. |
| Article 9 (Requirements for Designating Regional Development Project Zones) |
"Requirements prescribed by Presidential Decree" in Article 11 (3) 6 of the Act means that the effect of regional development is huge by linking a regional development project with other regional development projects under other statutes being or scheduled to be implemented in the environs.
| Article 10 (Types and Scale of Natural Parks and Park Facilities) |
| 1. | Hanryeohaesang National Park; |
| 2. | Dadohaehaesang National Park. |
| 1. | Marina: The size of its site shall not exceed 15,000 square meters; |
| 2. | Hiking course: The width of its course shall not exceed three meters (six meters for a vehicular traffic section); |
| 3. | Observation deck: The size of its site shall not exceed 3,000 square meters (400 square meters where all or part of an observation deck is installed in a nature preservation district of a park under Article 18 (1) 1 of the Natural Parks Act). |
| Article 11 (Modifying Insignificant Matters concerning Regional Development Project Zones) |
"Modifying insignificant matters prescribed by Presidential Decree" in the proviso to Article 11 (7) of the Act means any of the following: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> | (a) | Increasing or decreasing the scale by up to 300,000 square meters where the scale of the relevant regional development project zone (excluding a road works project) exceeds one million square meters, increase or decrease of less than 300,000 square meters; |
| (b) | Increasing or decreasing the scale by up to 30/100 where the scale of the relevant regional development project zone (excluding a road works project) is less than one million square meters; |
| (c) | Modifying road works to be implemented in a regional development project zone without changing the start point, end point and number of lanes of the road, falling under any of the following: |
| (i) | Modifying the length of a route by up to 30/100; |
| (ii) | Modifying the width of the relevant road by up to 30/100; |
| 2. | Reducing the project period or extending the project period by up to one year; |
| 4. | Modifying the land utilization plan by up to 30/100 of the scale of site for each main use; |
| 5. | Modifying the project expense, falling under any of the following: |
| (a) | Modifying the project expense by up to 10/100; |
| (b) | Modifying the project expense exceeding 10/100, preconsulted on with the Minister of Land, Infrastructure and Transport and the heads of relevant central administrative agencies (limited to projects subsidized by the State); |
| (c) | Modifying the project expense not exceeding three billion won, falling under any of the following: |
| (i) | Where the project expense modified is less than three billion won; |
| (ii) | Where the project expense modified exceeds three billion won, but the amount increased is less than 30/100 of the original project expense; |
| 6. | Correcting errors in land surveying or clerical errors or similar. |
| Article 12 (Documents to be Included in Formulated or Amended Regional Development Project Plans) |
A regional development project plan formulated or amended pursuant to Article 11 (6) of the Act to designate or modify a regional development project zone shall be accompanied by the following documents and design drawings: | 3. | A location map with a scale of at least 1:25,000; |
| 4. | A drawing on a topographic map or cadastral map with a scale of at least 1:5,000 specifying the regional development project plan or the modified regional development project plan; |
| 5. | A cadastral map or forest land map showing boundaries of the regional development project zone; |
| 6. | Data for inspecting the status of incorporated sites and forest land; |
| 7. | Photographs of the current regional development project zone. |
| Article 13 (Scale of Regional Development Project Zones to be Preconsulted when Designating Regional Development Project Zones) |
| Article 14 (Methods, etc. of Dividing and Integrating Regional Development Project Zones) |
| (1) | The cases where a regional development project zone can be divided into at least two regional development project zones pursuant to Article 13 (1) of the Act means where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor (hereinafter referred to as "designating authority") deems it necessary for efficiently promoting a regional development project, and the scale of respective regional development project zones after division exceeds 10,000 square meters. |
| (2) | The case where at least two areas located apart from each other (limited to where the areas are in the same City/Do or in adjoining Cities/Dos) can be designated as a regional development project zone (hereafter in this Article, referred to as "integrated development") shall be where at least one area with a size of at least 10,000 square meters and falling under any of the following is included in the regional development project zone: <Amended by Presidential Decree No. 27972, Mar. 29, 2017> |
| 3. | Any of the following areas or districts (limited to where disasters, etc. can be prospectively prevented or restoration is possible as disaster-prevention facilities, resident safety facilities, etc. are installed under a regional development project): |
| 5. | Other areas the designating authority deems that integrated development is necessary for efficiently implementing a regional development project. |
| (3) | Where a project implementer (hereinafter referred to as "implementer") designated pursuant to Article 19 of the Act intends to expropriate or use mutually separate land under Article 27 (1) of the Act and implement a regional development project using an integrated development method, he/she shall obtain approval on respective parcels of land subject to expropriation or use from landowners under the proviso to Article 27 (1) of the Act. |
| (4) | Where an implementer implements a regional development project using an integrated development method, he/she shall preferentially develop land in an area referred to in paragraph (2): Provided, That where necessary due to the characteristics of a regional development project, the designating authority may differently determine the order of preference. |
| Article 15 (Hearing Opinions on Designating and Modifying Regional Development Project Zones) |
| (1) | Where modifying insignificant matters prescribed by Presidential Decree under the latter part of Article 14 (1) of the Act shall be cases falling under any of subparagraphs 2 through 6 of Article 11. |
| (2) | Where a designating authority intends to have the head of a Si (including the Special Self-Governing City Mayor if the designating authority is the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), Gun or Gu, who has jurisdiction over an area subject to designation of a regional development project or modification of the designation, hear opinions from residents, relevant specialists, etc., pursuant to Article 14 (1) of the Act, it shall send a copy of relevant documents to the head of the relevant Si, Gun or Gu. |
| (3) | Where the head of a Si, Gun or Gu receives relevant documents pursuant to paragraph (2), he/she shall, without delay, publicly announce the name, location, scale, etc. of the regional development project zone to be designated or modified in the public report and on the website of the relevant Si (including a Special Self-Governing City if the designating authority is the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), Gun or Gu (referring to an autonomous Gu); and shall make the documents available for public inspection for at least 14 days. <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| (4) | Any person who has an opinion on designating or modifying a regional development project zone may submit a written opinion to the head of a Si, Gun or Gu within the public inspection period under paragraph (3). |
| (5) | The head of a Si, Gun or Gu shall submit a written opinion on designating or modifying a regional development project zone and his/her review on the opinion to the designating authority. |
| (6) | A designating authority shall examine whether to consider the opinion received pursuant to paragraph (5), and notify the result to the person who submits such opinion within 60 days from the date the public inspection period ends. |
| Article 16 (Public Hearings) |
| (1) | Where the scale of a regional development project zone exceeds one million square meters, the designating authority shall hold a public hearing under Article 14 (1) of the Act after the public inspection period under Article 15 (3) ends. |
| (2) | Where a designating authority intends to hold a public hearing pursuant to paragraph (1), it shall publicly announce the following matters at least once in a general daily nationwide newspaper or in a general daily local newspaper covering the relevant region by not later than 14 days before the date the public hearing is to be held: Provided, That this shall not apply where the following matters have been already publicly announced under Article 15 (3): |
| 1. | Objectives of a public hearing; |
| 2. | Date and venue for a public hearing; |
| 3. | Summary of designation of a regional development project zone and a regional development project plan. |
| (3) | Where a public hearing has not been held two times due to reasons not attributable to the designating authority or was held but no ordinary progress has been made, the public hearing may be omitted. In such case, residents' opinions shall be heard by publicly announcing by a method under paragraph (2) the reason why public hearing is omitted, and the timing, alternative methods, etc. for submitting opinions. |
| (4) | A public hearing shall be presided over by a person designated by the designating authority. |
| (5) | Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary for holding public hearings shall be prescribed by the Minister of Land, Infrastructure and Transport or by Municipal Ordinance of relevant local government. |
| Article 17 (Pre-Consultation, etc.) |
| (1) | "Where modifying insignificant matters prescribed by Presidential Decree" in the proviso to Article 15 (1) of the Act means cases referred to in subparagraphs 1 through 6 of Article 11. |
| Article 18 (Public Announcement of Designating Regional Development Project Zones) |
Where a designating authority designates a regional development project zone or modifies the designation pursuant to Article 16 (1) of the Act, it shall publicly announce the matters referred to in Article 11 (6) of the Act (in cases of modification, applicable only to the matters modified) in the Official Gazette or public report.
| Article 19 (Restrictions on Engaging in Activities, etc.) |
| (1) | Pursuant to Article 17 (1) of the Act, engaging in the following activities in a regional development project zone shall be permitted by the relevant Special Self-Governing Province Mayor or the head of the relevant Si, Gun or Gu: |
| 1. | Constructing a building: Constructing, substantially repairing, or changing the use of, a building (including a temporary building) under Article 2 (1) 2 of the Building Act; |
| 3. | Changing the form and quality of land: Changing the shape of land by cutting, filling-up, leveling, paving, etc. land, excavating land or reclaiming public waters; |
| 4. | Collecting soil and stones: Collecting soil and stones, such as earth, sand, aggregates, rocks, etc.: Provided, That collecting soil and stones to change the form and quality of land shall be governed by subparagraph 3; |
| 6. | Stacking things: Stacking things that are hard to move at least once; |
| 7. | Cutting or planting bamboo and trees. |
| (2) | Where a project implementer is already designated pursuant to Article 19 of the Act when the Special Self-Governing City Mayor or the head of a Si, Gun or Gu grants permission pursuant to Article 17 (1) of the Act, opinions of the project implementer shall be considered. |
| 1. | Installing a temporary structure prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, used directly for producing agricultural products, forest products or marine products; |
| 2. | Changing the form and quality of land for cultivation; |
| 3. | Collecting soil and stones insofar as it does not impede the development of a regional development project zone and does not harm natural scenery; |
| 4. | Stacking things on a site determined to be preserved within a regional development project zone; |
| 5. | Temporarily planting ornamental bamboo and trees (excluding temporarily planting trees in a farmland). |
| (4) | A person subject to reporting pursuant to Article 17 (3) of the Act shall submit a report accompanied by the following documents to the Special Self-Governing City Mayor or the head of relevant Si, Gun or Gu as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport within 30 days from the date a regional development project zone is designated and publicly announced: |
| 1. | A document proving that permission is granted pursuant to relevant statutes or that permission is not required; |
| 2. | Photographs evidencing the progress of construction works as at the reporting date; |
| 3. | Documents relating to construction works or a project (applicable only to changing the form and quality of land or collecting soil and stones under paragraph (3) 2 or 3), such as lay-out drawings, etc.; |
| 4. | Design drawings (applicable only to installing a structure under paragraph (3) 1). |
Section 3 Designation of Implementers of Regional Development Projects, Approval of Implementation Plans, etc.
| Article 20 (Standards for Designating Implementers, Procedures therefor, etc.) |
| (1) | An implementer shall be designated through public bidding process or by a designating authority after hearing opinions of the Special Self-Governing City Mayor or of the head of relevant Si, Gun or Gu. |
| (2) | Where a designating authority designates an implementer through public bidding process under paragraph (1), it shall publicly announce the following matters in the Official Gazette or in at least two general daily nationwide newspapers or daily local newspapers covering relevant area: |
| 1. | Name, location and objective of the regional development project; |
| 2. | Period for implementing the regional development project; |
| 3. | Matters concerning the qualification of an implementer; |
| 4. | Procedures for evaluating and selecting an implementer; |
| 5. | Evaluation standards for selecting an implementer; |
| 6. | Other matters necessary for designating an implementer. |
| (3) | A person who intends to be designated as an implementer of a regional development project zone pursuant to paragraph (1) shall submit an application for designation stating the following matters, to the designating authority: Provided, That this shall not apply where the State or a City/Do directly implements a regional development project: |
| 1. | Name of an implementer, name of a representative and location; |
| 2. | Name, location and objective of the regional development project; |
| 3. | Period for implementing the regional development project. |
| (4) | An application for designation under paragraph (3) shall be accompanied by the following documents and design drawings: |
| 4. | Annual investment plans; |
| 5. | Documents proving that paragraph (6) applies (applicable only where a private investor under Article 19 (1) 5 of the Act files an application). |
| (5) | "A public institution prescribed by Presidential Decree" in Article 19 (1) 2 of the Act means any of the following public institutions: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| 5. | The Korea Tourism Organization under the Korea Tourism Organization Act (hereinafter referred to as "Korea Tourism Organization"); |
| 7. | The Korea Racing Authority under the Korea Racing Authority Act (hereinafter referred to as "Korea Racing Authority"). |
| (6) | "A private investor who meets the requirements prescribed by Presidential Decree, such as capital, etc." in Article 19 (1) 5 of the Act means any of the following persons: |
| 1. | Where an individual, a corporation incorporated pursuant to the Commercial Act or Civil Act, or a cooperative established pursuant to the Framework Act on Cooperatives intends to directly implement a development project (including where at least two private investors intend to jointly implement a project): Any of the following persons: |
| (a) | A person whose registered business is of a business category (limited to civil engineering works or civil engineering and building works) implementing general construction works under the Framework Act on the Construction Industry (limited to where the evaluated amount performed by the construction contractor for the year publicly announced pursuant to Article 23 of the same Act or his/her capital exceeds the average annual business expense (excluding compensation expenses) specified by a regional development project plan); |
| (b) | A person who owns at least 50/100 of land in a regional development project zone; |
| (c) | A real estate trust company entrusted with land of a size equivalent to at least 1/3 of land in a regional development project zone; |
| 2. | Where a private investor establishes an enterprise exclusively in charge of a regional development project to participate in a regional development project as an implementer: An enterprise exclusively in charge of a regional development project of which proportion of equity capital raised for the total project expense exceeds 10/100 of the total project expense specified in the regional development project plan. In such case, where several enterprises invest in the enterprise exclusively in charge of a regional development project, the total of investment proportions of three enterprises with high equity proportion shall exceed 50/100. |
| (7) | Where a designating authority designates an implementer pursuant to Article 19 (1) of the Act, it shall issue a certificate of designation prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and prepare and manage a book of designated implementers. |
| Article 20-2 (Vicarious Implementation of Regional Development Projects) |
| (1) | Where an implementer intends to have a regional development project implemented on his/her behalf pursuant to Article 19 (6) of the Act, he/she shall select a substitute implementer from among registered construction businesses under Article 9 of the Framework Act on Construction Industry. |
| (2) | The scope of a regional development project to be implemented vicariously shall be as follows: |
| 3. | Construction works of infrastructure; |
| 4. | Sale of developed land. |
| (3) | The size of land for a regional development project to be implemented vicariously shall be as follows: |
| 1. | Where the size of land to be developed by a regional development project exceeds 30,000 square meters: by up to 50/100; |
| 2. | Where the size of land to be developed by a regional development project is less than 30,000 square meters: by up to 100/100. |
| (4) | Where an implementer intends obtain approval for vicariously implementing a regional development project pursuant to Article 19 (7) of the Act, he/she shall submit an application for vicarious implementation of a regional development project stating the following matters to the designating authority: |
| 1. | Name (if a corporation, the names of the corporation and of its representative) and address of the substitute implementer; |
| 2. | Name, location and scale of a regional development project zone to be vicariously implemented; |
| 3. | Summary of an implementation plan for a regional development project to be vicariously implemented including the following matters: |
| (a) | Objectives of the project; |
| (b) | Summary and the type of project; |
| (c) | Period for implementing the project. |
[This Article Newly Inserted by Presidential Decree No. 28097, Jun. 2, 2017]
| Article 20-3 (Designating, etc. General Project Managers) |
| (1) | Where a designating authority intends to designate a general project manager pursuant to Article 19-2 (1) of the Act, it shall receive a general project manager‘s implementation plan from a person who intends to be designated as a general project manager including the following matters; and shall evaluate the plan: |
| 1. | A general management plan for the relevant regional development project; |
| 2. | Outcomes of implementing a regional development project; |
| 3. | Other matters prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (2) | Where a designating authority designates a general project manager, it shall preconsult with the head of a Si (including the Special Self-Governing City Mayor if the designating authority is the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), Gun or Gu having jurisdiction over the relevant area. |
| 1. | Examining the methods of promoting a project and of increasing private investment; |
| 2. | Coordinating between interested parties; |
| 3. | Proposing a new regional development project; |
| 4. | Other duties a designating authority requests as necessary for a regional development project. |
| (4) | The head of a Si, Gun or Gu may fully or partially subsidize expenses necessary for performing the duties of a general project manager. |
| (5) | Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary for performing the duties of general project managers shall be prescribed and publicly announced by the Minister of Land, Infrastructure and Transport. |
[This Article Newly Inserted by Presidential Decree No. 28097, Jun. 2, 2017]
| Article 21 (Expenses Incidental to Acquisition of Land, etc.) |
| 1. | Fees for registration subsequent to acquisition of land and incidental expenses; |
| 2. | Design fees and incidental expenses. |
| Article 22 (Entrustment of Construction Works, etc. of Public Facilities) |
| (2) | "Public institution prescribed by Presidential Decree" in Article 21 (1) of the Act means the following: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| 1. | The Korea Land and Housing Corporation; |
| 2. | The Korea Water Resources Corporation; |
| 3. | The Korea Tourism Organization; |
| 4. | The Korea Rural Community Corporation; |
| 5. | The Korea Railroad Corporation; |
| 6. | The Korea Rail Network Authority; |
| 7. | The Korea Racing Authority. |
| (3) | Where an implementer intends to implement a regional development project by entrusting part of the project to the agency entrusted under Article 21 (1) of the Act, he/she shall conclude an agreement on the following matters with the agency entrusted, such as the State or a local government: |
| 1. | Place of the entrusted project; |
| 2. | Type, size and amount of the entrusted project and the standards for designing the construction; |
| 3. | Period for implementing the entrusted project (including the date scheduled to commence and complete the project and a process plan); |
| 4. | Methods of paying expenses necessary for the entrusted project and matters concerning the management of funds; |
| 5. | Where an implementer supplies real estate, machinery, materials or workers, matters concerning the management thereof; |
| 6. | Matters concerning risk-taking; |
| 7. | Other matters necessary for clarifying the details of the entrusted project. |
| Article 23 (Entrustment of Purchase, etc. of Land) |
| (1) | "Public institution prescribed by Presidential Decree" in Article 21 (2) of the Act means the following: <Amended by Presidential Decree No. 27473, Aug. 31, 2016> |
| 1. | The Korea Land and Housing Corporation; |
| 2. | The Korea Water Resources Corporation; |
| 3. | The Korea Rural Community Corporation; |
| 4. | The Korea Expressway Corporation under the Korea Expressway Corporation Act; |
| 5. | The Korea Appraisal Board under the Korea Appraisal Board Act. |
| (2) | Where an implementer intends to entrust a basic inspection; purchasing land; compensating losses; or relocating residents, he/she shall conclude an agreement on the matters prescribed in Article 22 (3). |
| Article 24 (Approval, etc. for Implementation Plans) |
| (1) | "Matters prescribed by Presidential Decree" in subparagraph 7 of Article 22 of the Act means the following: |
| 2. | A compensation plan (including a relocation plan); |
| 3. | A plan for buildings, structures, etc. to be remained; |
| 4. | A plan for subdividing a construction zone (applicable only where a subdivision plan exists); |
| 6. | A land-substitution plan for a former landowner (applicable only where a land-substitution plan exists); |
| 7. | Documents concerning measures for preserving cultural heritage; |
| 8. | Documents required for consulting with the heads of relevant administrative agencies; |
| 9. | Details of land, etc. to be expropriated or used (limited only if necessary). |
| (2) | "Where modifying insignificant matters prescribed by Presidential Decree" in the proviso to Article 23 (2) of the Act means where modifying the matters under Article 11. |
| (3) | Where a designating authority approves an implementation plan for a regional development plan (hereinafter referred to as "implementation plan") pursuant to Article 23 (3) of the Act, it shall publicly announce the following matters in the Official Gazette or public report: |
| 1. | Name (if a corporation, the names of the corporation and its representative) and address of an implementer; |
| 2. | Name and objective of the project, location and size of land subject to the implementation of the project, and period for implementing the project; |
| 3. | Location map of land subject to the project; |
| 4. | Ground plan and summary design drawings; |
| 5. | An annual investment plan and a financing plan; |
| 6. | Details of land, etc. to be expropriated or used (applicable only if necessary). |
| (4) | A designating authority shall notify and submit to the relevant registry the matters concerning paragraph (3) 1 and 2 and a land statement on the zone in which a regional development project is implemented by a land substitution method under Article 26 (1) of the Act. |
| Article 25 (Organization, etc. of Conference on Deemed Authorization and Permission) |
| (1) | A designating authority shall organize a conference on deemed authorization and permission (hereinafter referred to as "conference") under Article 24 (4) of the Act with the heads of relevant administrative agencies who grant, make or impose permission, approval, examination, authorization, report, license, registration, consultation, designation, rescission, disposition, etc. (hereinafter referred to as "authorization, permission, etc.") under the attached Table of the Act. |
| (2) | A designating authority shall hold a conference within ten days from the date an application for approval of an implementation plan under Article 22 of the Act is filed. In such cases, the designating authority shall notify the heads of relevant administrative agencies by not later than three days before the conference. |
| (3) | The heads of relevant administrative agencies who attend a conference shall submit their opinions as to whether they approve or disapprove the matters on authorization, permission, etc.: Provided, That where it is difficult to submit opinions at the conference as the detailed matters of relevant statutes are to be examined, they may submit opinions within five days from the date of the conference. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for operating a conference shall be publicly announced by the Minister of Land, Infrastructure and Transport or prescribed by Municipal Ordinance of relevant local government. |
Section 4 Implementation, etc. of Regional Development Projects
| Article 26 (Methods, etc. of Calculating Number of Assenters) |
| (1) | Where the size of land subject to a regional development project under the proviso to Article 27 (1) of the Act is to be calculated, the size of national land or public land shall be included therein. |
| (2) | The method of calculating the number of assenters under Article 27 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| 1. | Where several persons share joint ownership over land or a building: To deem the representative of co-owners, approved by other co-owners, as the owner of the land or the building: Provided, That in cases of sectional owners under subparagraph 2 of Article 2 of the Act on Ownership and Management of Condominium Buildings, a sectional owner shall be respectively deemed a owner of land; |
| 2. | Where the sectional ownership under subparagraph 1 of Article 2 of the Act on Ownership and Management of Condominium Buildings is divided after the date of public announcement and public inspection under Article 15 (3), and thus the number of landowners increases: To calculate based on the number of landowners before the date of public announcement and public inspection, and to exclude the increased number of landowners from the total number of landowners; |
| 3. | Where national land or public land is included: To obtain approval from at least 1/2 the owners of land excluding national land or public land, and if the number of such landowners belows the quorum for approval under Article 27 (2) of the Act, to obtain approval from the management agencies of national land or public land. |
| (3) | Where the owners of land and buildings approve or withdraw approval, they shall submit a written approval or written withdrawal prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to the implementer, and the representative of co-owners of land and buildings shall submit such documents accompanied by a written approval for designating the representative and by documents proving the identities of the representative of co-owners and co-owners. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), detailed matters concerning the methods and procedures for calculating the number of assenters shall be determined and publicly announced by the Minister of Land, Infrastructure and Transport. |
| Article 27 (Volume of Land Bonds to be Issued) |
The volume of land bonds under Article 30 (1) of the Act to be issued shall be limited so that the size of land or buildings, the price of which is to be paid by land bonds, does not exceed 1/2 of the size of land developed by the relevant regional development project or the size of buildings, which are being sold.
| Article 28 (Institutions Guaranteeing Land Bonds) |
| Article 29 (Plans to Issue Land Bonds) |
| 1. | Name of the implementer; |
| 2. | Total volume of the land bonds issued; |
| 3. | Interest rate of the land bonds; |
| 4. | Face value of the land bonds issued and time of issuance; |
| 5. | Area subject to land bonds or the purpose of use of land subject to land bonds; |
| 6. | Methods of estimating the land price; |
| Article 30 (Public Announcement of Issuance of Land Bonds) |
| Article 31 (Conditions, etc. for Issuing Land Bonds) |
| (1) | The interest rate of land bonds shall be set by the issuer based upon bank interest rates on deposits when issued and the circumstances of real estate supply and demand. |
| (2) | Land bonds shall be registered securities. |
| Article 32 (Subscription, etc. for Land Bonds) |
A person who intends to acquire land bonds instead of the price of land, etc. that he/she has sold (hereinafter referred to as "subscriber") shall prepare two copies of an application for subscription for land bonds stating the following matters and submit them to the implementer:
| 2. | Name (if a corporation, the names of the corporation and of its representative) and address of the subscriber; |
| 3. | Details of land, etc. owned by the subscriber; |
| 4. | Amount that the subscriber is to receive as the price of land sold, etc.; |
| 5. | Amount of land bonds the subscriber intends to acquire. |
| Article 33 (Matters to be Stated in Land Bonds) |
On the land bonds the following matters shall be stated and the issuer shall place his/her name and stamp:
| 1. | Matters under subparagraphs 1 through 3 and 6 of Article 29; |
| 2. | Numbers of land bonds; |
| 3. | Date land bonds are issued. |
| Article 34 (Keeping Land Bond Registers) |
The issuer of land bonds shall keep a land bond register (hereinafter referred to as "land bond register") stating the following matters in his/her main office:
| 1. | Serial numbers of land bonds; |
| 2. | Date land bonds are issued; |
| 3. | Matters under subparagraphs 2 through 6 of Article 29; |
| 4. | Names and addresses of the owners of land bonds; |
| 5. | Date land bonds are acquired. |
| Article 35 (Transfer, etc. of Land Bonds) |
| (1) | Where land bonds are transferred, the person who acquires them shall request that his/her name and address be stated in the land bond register; if the acquirer's name and address are not stated in the land bond register and the acquirer's name is not stated on the land bonds, the acquirer cannot prevail against the issuer or a third party. |
| (2) | Where land bonds are pledged, and the name and address of a pledgee is not stated in the land bond register, the pledgee cannot prevail against the issuer or a third party. |
| (3) | Where a pledge is established pursuant to paragraph (2), the issuer shall indicate such fact on the land bonds. |
| Article 36 (Notification to Owners of Land Bonds) |
Notification or peremptory notice to the owner of land bonds shall be directed to the address stated in the land bond register: Provided, That where the owner of land bonds notifies the issuer of land bonds of a separate address, the issuer shall send a notice to the separate address.
| Article 37 (Advance Payment) |
| (1) | An implementer who intends to receive advance payment pursuant to Article 31 (1) of the Act shall obtain approval from the designating authority after meeting the following requirements: <Amended by Presidential Decree No. 26928, Jan. 22, 2016> |
| (a) | The implementer shall secure ownership over land that he/she intends to supply and mortgage thereon shall be deleted: Provided, That where he/she fails to secure ownership over land or to discharge a mortgage due to unavoidable reasons, the implementer, landowner and mortgagee shall have a joint agreement with the following details notarized and submit it to the designating authority: |
| (i) | The landowner shall not transfer the land to a third party or offer the land as security to any third party; |
| (ii) | Where a person who pays advance money undergoes a pre-use inspection under Article 38 of the Act or permission for use before construction completion under Article 41 of the Act, the landowner and pledgee shall, without delay, transfer the ownership and discharge the mortgage; |
| (b) | Construction works to develop a site for the regional development project shall commence on the land that the implementer intends to supply; |
| (i) | The amount of guarantee or insurance shall be an amount at least equivalent to the amount calculated by adding interest during the guarantee period or insurance period to the advance money; |
| (ii) | The guarantee period or insurance period shall commence before the date advance money is paid, and ends after at least one month from the scheduled date of construction completion: Provided, That where the project period is extended, a written guarantee, etc., the guarantee period of which is calculated by adding the extension to the original guarantee period or insurance period, shall be submitted. |
| (2) | After an implementer allows the supply of land or use of facilities before public announcement of construction completion, he/she shall not offer the land as security. |
| (3) | Where an implementer fails to implement a project as stipulated by a supply contract or a designating authority recognizes that an implementer is not able to implement a project due to insolvency, etc. (including a ruling or leave by a court under the Debtor Rehabilitation and Bankruptcy Act) of the implementer, the designating authority may use the guarantee, etc. for the return of advance money before completing construction works for the relevant regional development project. |
| Article 38 (Use and Sale of Developed Land, etc.) |
| (1) | Where an implementer intends to supply land, buildings, structures, etc. developed pursuant to Article 32 (1) of the Act (hereinafter referred to as "developed land, etc."), he/she shall lease or sell (hereinafter referred to as "supply") by lottery. |
| (2) | Notwithstanding paragraph (1), developed land, etc. to be used for a profit-making purpose, such as a site to build sales facilities, etc. may be supplied by competitive bid. |
| (3) | Notwithstanding paragraphs (1) and (2), in any of the following cases, an implementer may supply developed land, etc. by negotiated contract: <Amended by Presidential Decree No. 27444, Aug. 11, 2016> |
| 1. | Where the developed land, etc. is supplied to the State or a local government; |
| 2. | Where sites for public facilities that cannot be sold to private individuals, such as a school site, public building site, etc., are supplied to the State, a local government or a person qualified to build public facilities pursuant to the statutes; |
| 3. | Where minimum land required for maintaining and managing facilities that remain according to an implementation plan is supplied; |
| 4. | Where the developed land, etc. is supplied to a person selected in a special design contest, etc. as complex and three-dimensional development in a regional development project zone is necessary or eco-friendly and sustainable development is necessary; |
| 5. | Where the developed land, etc. is supplied as a site for housing smaller than national standard housing under subparagraph 6 of Article 2 of the Housing Act to the Korea Land and Housing Corporation, or to a local public enterprise established for housing business under the Local Public Enterprises Act; |
| 6. | Other cases where the developed land, etc. may be supplied under negotiated contract according to relevant statutes. |
| (4) | Where an implementer intends to supply developed land, etc. pursuant to paragraph (1), he/she shall publicly announce the following matters by not later than ten days (five days in cases of an emergency or resupply) before the deadline for an application for supply: Provided, That this shall not apply where persons to be supplied therewith are specified or their qualification is limited and individual notification is sent: |
| 1. | Name and address of the implementer and name of the representative; |
| 2. | Location and size (including total floor area and sectional area in the case of a building) of developed land, etc.; |
| 3. | Use of developed land, etc. (where use is restricted, including the details of the restriction); |
| 4. | Timing and methods for supply and conditions therefor; |
| 5. | Supply price (in cases of lease, including a security deposit and rent) or methods of determining the supply price; |
| 6. | Requirements for qualification for persons to be supplied with developed land, etc. and methods of selecting them; |
| 7. | Period and place to file an application for supply. |
| (5) | Where an implementer intends to supply developed land, etc. as a site listed in Article 39 (3), he/she may disqualify persons to be supplied with developed land, etc. or attach a condition thereto. |
| Article 39 (Supply Price, etc. of Developed Land, etc.) |
| (2) | Notwithstanding paragraph (1), the successful bid price shall be the supply price of developed land, etc. in cases of supply (excluding lease) under Article 38 (2). In such cases, the amount appraised pursuant to paragraph (1) shall be the minimum bid price. |
| (3) | Notwithstanding paragraphs (1) and (2), an implementer may supply developed land at a supply (excluding lease) price as follows: <Amended by Presidential Decree No. 27444, Aug. 11, 2016> |
| 1. | Where the developed land is supplied as a site for the following: Development cost: Provided, That where the supply price is prescribed by the following Acts, the standards under the relevant Acts shall prevail: |
| (a) | A site for industrial facilities, such as factories; knowledge industry-related facilities; cultural industry-related facilities; facilities related to the information and communications technology industry; recycling industry-related facilities; resource stockpiling facilities, etc.; a site for data processing facilities; a site for exhibition facilities; and a site for research facilities under Article 2 of the Industrial Sites and Development Act; |
| 2. | Where the developed land is supplied as a site for the following: Development cost or below: |
| (a) | A public office site; school site; public medical facility site; public welfare facility site; parking lot site (limited to where the developed land is supplied to the State or a local government); and automobile depot site; |
| (b) | A site for construction works for national standard housing with an area not exceeding 60 square meters only for residential use under subparagraph 6 of Article 2 of the Housing Act; |
| (4) | An amount calculated according to attached Table 1 shall be the development cost under paragraph (3). |
| (5) | The standards for calculating a security guarantee and rent, and lease period of developed land, etc. shall be as follows: |
| 1. | Security guarantee: 10/100 of the supply price determined under paragraphs (1) through (3); |
| 2. | Rent: An amount calculated by multiplying the supply price determined under paragraphs (1) through (3) by the interest rate determined and publicly announced by the Minister of Land, Infrastructure and Transport based upon the average bank interest rate for one-year deposit under the Banking Act when an implementation plan is approved or public announced under Article 23 of the Act: Provided, That the implementer may increase or decrease by up to 10/100 of the rent based upon the regional circumstances, results of supply, etc.; |
| 3. | Lease period: Within ten years: Provided, That where a lessee intends to renew the contract after the lease period, the lessor shall comply therewith except in extenuating circumstances. |
| Article 40 (Application, etc. of Supply Methods, etc. with Necessary Modifications) |
| (1) | Except as otherwise expressly provided for in Articles 38 and 39, Article 13-2 of the Enforcement Decree of the Housing Site Development Promotion Act shall apply mutatis mutandis to the supply methods and supply price of developed land, etc. |
| (2) | Notwithstanding paragraph (1), where a zone, district, complex, etc. is deemed designated pursuant to Article 16 (3) 4, 8, 9, 10 and 14 of the Act and an industrial complex for lease only is deemed designated pursuant to Article 46 (1) of the Act, the supply methods, supply price, etc. prescribed by relevant statutes shall prevail. |
| Article 41 (Supply of Undeveloped Land, Development Procedures, etc.) |
| (1) | Where an implementer intends to obtain approval from a designating authority for the supply and development of undeveloped land pursuant to Article 33 (1) of the Act, he/she shall submit a supply plan which includes the following. In such cases, the designating authority may approve the supply of undeveloped land after designating and publicly announcing a regional development project zone: |
| 1. | Location and size of land to be supplied, and purpose of supply; |
| 3. | A plan to accommodate population in the undeveloped land; a plan to utilize land; a plan to handle traffic; a plan to preserve the environment; a plan to install major infrastructure; and a plan to use the undeveloped land, etc.; |
| 4. | Conditions for use of the undeveloped land; |
| 5. | Expected supply price and main conditions of a contract; |
| 6. | Other matters the designating authority deems necessary in consideration of the properties of the project, determined in consultation with the implementer. |
| (2) | The proportion of a regional development project zone that can be supplied as undeveloped land under the latter part of Article 33 (1) of the Act shall not exceed 1/3 of the entire area of the regional development project zone. |
| (3) | "A period prescribed by Presidential Decree" in the main text of Article 33 (6) of the Act shall be the period that ends first: |
| 1. | Five years from the date completion of construction works to develop undeveloped land is publicly announced; |
| 2. | Ten years from the date a contract for supplying undeveloped land is concluded. |
| (4) | "Cases prescribed by Presidential Decree, such as housing for relocation, public and cultural facilities, etc." in the proviso to Article 33 (6) of the Act means where undeveloped land is used as follows: |
| 1. | A site for rental housing, such as housing for relocation, etc.; |
| 2. | A site for infrastructure, such as public and cultural facilities, etc.; |
| 3. | A site for facilities that are impracticable for an undeveloped land developer to directly install or operate. |
| (5) | Where an implementer rescinds a contract to supply undeveloped land pursuant to Article 33 (8) of the Act, he/she shall request the undeveloped land developer for correction at least two times; where the undeveloped land developer fails to take corrective measures, he/she may rescind the contract to supply undeveloped land. In such cases, the undeveloped land developer may submit his/her opinion on the request for correction. |
| (6) | An undeveloped land developer under Article 33 (9) of the Act shall be selected by negotiated contract: Provided, That an undeveloped land developer falling under Article 33 (1) 5 of the Act shall be selected by competitive bid; where a successful bidder can not be selected by the competitive bid at least twice, negotiated contract may be employed. |
| (7) | The supply price of undeveloped land under Article 33 (9) of the Act shall be determined by consultation between an implementer and an undeveloped land developer based upon an amount calculated by aggregating the assessed price of undeveloped land stated in a regional development project plan under Article 11 (6) 10 of the Act with the construction cost of infrastructure, etc. installed by the implementer on the undeveloped land. |
| (8) | The scope of duties of an implementer and undeveloped land developer under Article 33 (9) of the Act shall be determined by supply contract, and the implementer shall take charge of the duties under the relevant statutes, such as filing an application, etc. for authorization, permission, etc. for developing undeveloped land. |
| Article 42 (Scope, etc. of Basic Inspection) |
| (1) | The Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or an implementer may inspect or survey the following matters pursuant to Article 34 (1) of the Act: |
| 1. | Situation and trend of population change including the status by gender and by age; |
| 2. | Status of land use, obstacles and various development projects; |
| 3. | Status by industry and the trend of development; |
| 4. | Status of major infrastructure, such as roads, waterworks, or sewerage; |
| 5. | Status of tourism resources, types of tourism and tourism facilities; |
| 6. | Conservation of the natural environment and status of pollution; |
| 7. | Frequency and status of damage by storm and flood, landslide, ground failure and other disasters; |
| 9. | Other matters the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or an implementer deems necessary. |
| (2) | Where data on inspections or land survey conducted pursuant to other statutes regarding the matters of inspection and land survey under paragraph (1) exist, such data may be utilized. |
Section 5 Pre-Use Inspection, etc.
| Article 43 (Public Announcement of Construction Completion) |
| 1. | Name and location of the project; |
| 3. | Size of the area on which the project is implemented and size by use; |
| 5. | Matters concerning sale of major facilities. |
| Article 44 (Permission for Use Before Construction Completion) |
| (1) | Where an implementer intends to use developed land, etc. before construction works are completed pursuant to the proviso to Article 41 of the Act, he/she shall specify the extent of use and submit an application for permission to use the developed land, etc. before the construction works are completed, prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport accompanied by a review as to whether such use obstructs progress of the project. |
| (2) | Where a designating authority receives an application for use under paragraph (1), it shall ascertain whether the use obstructs the project to be implemented in the future and determine whether to grant permission. |
Section 6 Regional Development Coordination Committees, etc.
| Article 45 (Matters to be Deliberated by Regional Development Coordination Committees) |
| 3. | Other matters for which a Mayor/Do Governor deems necessary for deliberating by a regional development coordination committee under Article 42 (1) of the Act (hereinafter referred to as "regional development coordination committee"). |
| Article 46 (Establishment of Regional Development Coordination Committees) |
| (1) | A regional development coordination committee shall consist of the following persons pursuant to Article 43 (3) of the Act: <Amended by Presidential Decree No. 28097, Jun. 2, 2017> |
| 1. | A public official of a bureau director-general level in charge of duties relating to regional development of the relevant City/Do; |
| 2. | The head of a regional environmental office; the head of a regional office of construction management; and the head of a regional office of the Forest Service; |
| 3. | Persons entrusted by the chairperson of a regional development coordination committee based upon gender equality from among persons with abundant knowledge and experience in the field of regional development, such as planning of the national land, cities, tourism, logistics, science and technology, finance, environment, national defense, military installations, etc. |
| (2) | The term of office of a member entrusted by the chairperson of a regional development coordination committee pursuant to paragraph (1) 3 shall be two years, renewable for only one further term. |
| (3) | The chairperson of a regional development coordination committee (hereinafter referred to as "chairperson") shall represent the regional development coordination committee and have general control over the duties of the regional development coordination committee. |
| (4) | Where the chairperson is unable to perform duties due to inevitable circumstances, the vice chairperson shall perform the duties of the chairperson; where both the chairperson and vice chairperson are unable to perform duties due to inevitable circumstances, a member designated by the chairperson shall perform the duties of the chairperson on his/her behalf. |
| (5) | A regional development coordination committee shall have an executive secretary who processes its duties and a division director level official in charge of duties relating to regional development of the relevant City/Do shall be qualified as the executive secretary. |
| Article 47 (Operation of Regional Development Coordination Committees) |
| (1) | The chairperson shall convene a meeting of a regional development coordination committee and preside over the meeting. |
| (2) | If the chairperson intends to convene a meeting of a regional development coordination committee, he/she shall notify each member of the date, venue and agenda items by not later than ten days before the meeting: Provided, That in cases of emergency, this shall not apply. |
| (3) | A meeting of a regional development coordination committee shall be held with the attendance of a majority of members on the register; and a resolution shall be passed with concurring votes of a majority of the members present. |
| (4) | The members of a regional development coordination committee may be paid allowances and reimbursed travelling expenses as prescribed by Municipal Ordinance of relevant City/Do: Provided, That this shall not apply where a public official attends a meeting directly regarding his/her duties. |
| (5) | A regional development coordination committee shall take and keep meeting minutes. |
| (6) | Where a request for the disclosure of meeting minutes is filed after a certain period prescribed by Municipal Ordinance of the relevant City/Do within one year from the date of the meeting, the City/Do shall disclose the minutes: Provided, That this shall not apply to the part concerning personally identifiable information, such as names, resident registration numbers, addresses, etc., likely to compromise fairness in deliberation. |
| (7) | The disclosure of meeting minutes under paragraph (6) shall be made by public inspection. |
| (8) | Except as otherwise expressly provided for in paragraphs (1) through (7), matters necessary for the operation of a regional development coordination committee shall be prescribed by Municipal Ordinance of the relevant City/Do. |
| Article 48 (Disqualification of and Voluntary Refrainment by Members) |
| (1) | Where a member of a regional development coordination committee falls under any of the following, he/she shall be disqualified from deliberation: |
| 1. | Where the member, a person who is a spouse or has been a spouse of the member is a party, joint right holder or joint obligator; |
| 2. | Where the member is or has been a relative of a party; |
| 3. | Where a member or a corporation to which the member belongs is a consultant or adviser, etc. to a party regarding legal matters, business administration, etc.; |
| 4. | Where the member or a corporation to which the member belongs is engaged or has been engaged as an agent; |
| 5. | Where the member receives services regarding the matters on the agenda or is directly engaged therein by other means; |
| 6. | Where a member is a party directly interested to the matters on agenda. |
| (2) | Where a member falls under any of paragraph (1), he/she shall voluntarily refrain from deliberation. |
| (3) | Where a member fails to apply for voluntary refrainment even though he/she falls under any of paragraph (1), a Mayor/Do Governor may terminate the entrustment agreement with him/her. |
| Article 49 (Establishment and Operation of Comprehensive Regional Development Support Committees) |
| (1) | A person nominated by a Mayor/Do Governor from among division director level officials in charge of duties relating to the regional development of the City/Do shall become the head of a comprehensive regional development support center established in the City/Do (hereinafter referred to as "comprehensive regional development support center") pursuant to Article 44 (1) of the Act, and public officials in charge of duties relating to regional development planning and regional development projects, such as regional development, urban planning, industrial complex, architecture, taxation, environment, etc., shall become the members thereof. |
| (2) | Where necessary, a Mayor/Do Governor may request the heads of agencies relating to a regional development project, such as the head of a regional environmental office; head of a regional office of construction management; and the head of a regional office of the Forest Service, etc., to dispatch affiliated officials. In such cases, the period, methods, etc. for supporting human resources may be adjusted through consultation between the heads of relevant agencies. |
| (3) | To reasonably implement duties relating to formulating, etc. a regional development plan, a Mayor/Do Governor may organize an advisory group in a comprehensive regional development support center, which consists of specialists with abundant knowledge and experience in the fields of regional development, urban planning, industrial complex, architecture, environment, etc., or entrust relevant specialists with the duties of specialized members. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for establishing, operating, etc. a comprehensive regional development support center shall be prescribed by Municipal Ordinance of relevant City/Do. |
Section 7 Designating, etc. Leading Investment Districts
| Article 50 (Standards for Designating, etc. Leading Investment Districts) |
| (1) | "Standards prescribed by Presidential Decree" in Article 45 (1) 3 of the Act means cases in which total investment in the projects implemented in an area to be designated as a leading investment district is at least 100 billion won or it is possible to create at least 300 new jobs by the projects: Provided, That in an underdeveloped area, the total investment shall be at least 50 billion won; at least 100 new jobs shall be created. |
| (2) | Notwithstanding paragraph (1), the Minister of Land, Infrastructure and Transport may determine different standards for total investment and expected number of jobs created according to regional characteristics, site conditions, project characteristics, etc. after deliberation by the National Land Policy Committee. |
| 1. | That it shall be an area expected to create growth dynamics for regional economics and to have a great ripple effect on the surrounding areas; |
| 2. | That it shall be an area requiring development to become a livelihood base for the area; |
| 3. | That it shall be an area in which private investment is realizable. |
| Article 51 (Application, etc. for Designating, etc. Leading Investment Districts) |
| (1) | Where the head of a central administrative agency or a Mayor/Do Governor intends to apply for designating or modifying a leading investment district to the Minister of Land, Infrastructure and Transport pursuant to Article 45 (1) of the Act, he/she shall formulate a plan for designating a leading investment district (hereinafter referred to as "designation plan") including the following matters and submit it to the Minister of Land, Infrastructure and Transport: |
| 1. | Name, location and size of a leading investment district; |
| 2. | Objectives and necessity for designating a leading investment district and the period for implementation; |
| 3. | Methods of developing and managing a leading investment district; |
| 4. | Projects to be invested, scale of investment, number of new jobs to be created and details of projects; |
| 5. | Possibility of invited investment being realized; |
| 6. | Expenses and ripple effects following designation of a leading investment district; |
| 7. | Financing plans and annual investment plans; |
| 8. | A plan to install major infrastructure (only if necessary); |
| 9. | A plan to install medical, educational and welfare facilities (only if necessary). |
| (2) | A designation plan shall be accompanied by the following documents: |
| (3) | Except as otherwise expressly provided for in paragraphs (1) and (2), detailed matters necessary for designating and modifying a leading investment district, etc. shall be prescribed by the Minister of Land, Infrastructure and Transport. |
| Article 51-2 (Modifying Insignificant Matters regarding Leading Investment Districts) |
"Modifying insignificant matters prescribed by Presidential Decree" in the proviso to Article 45 (3) of the Act means modifying the matters referred to in Article 11. [This Article Newly Inserted by Presidential Decree No. 28097, Jun. 2, 2017]
| Article 52 (Rescission of Designation of Leading Investment Districts) |
| (1) | Where a leading investment district fails to meet the requirements for designation as a leading investment district under Article 45 (1) of the Act, the Minister of Land, Infrastructure and Transport may rescind the designation. |
| (2) | Where the Minister of Land, Infrastructure and Transport intends to rescind the designation of a leading investment district as it fails to attract the expected amount of investment or create the expected number of new jobs under Article 45 (1) 3 of the Act, he/she shall require the head of a central administrative agency or a Mayor/Do Governor to have investors meet requirements, specifying a period by up to six months: Provided, That in extenuating circumstances, the Minister of Land, Infrastructure and Transport may extend the period by up to six months only once. |
| (3) | Where the relevant investor fails to meet the requirements for designation within the specified implementation period under paragraph (2), the Minister of Land, Infrastructure and Transport may request the National Land Policy Committee to deliberate on the rescission of designation of a leading investment district within 30 days from the end of the implementation period. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), detailed matters necessary for rescinding designation of a leading investment district shall be prescribed by the Minister of Land, Infrastructure and Transport. |
| Article 53 (Public Announcement of Designation, etc. of Leading Investment Districts) |
| (1) | Where the Minister of Land, Infrastructure and Transport designates a leading investment district or modifies the designation pursuant to Article 45 (5) of the Act, he/she shall publicly announce the matters (referring to the matters modified in cases of modification) under Article 51 (1) in the Official Gazette. |
| (2) | Where the Minister of Land, Infrastructure and Transport rescinds designation of a leading investment district pursuant to Article 45 (5) of the Act, he/she shall publicly announce the following matters in the Official Gazette: |
| 1. | Name, location and size of the leading investment district; |
| 2. | Name (if a corporation, the names of the corporation and its representative) and address of the implementer; |
| 3. | Grounds for rescission. |
| Article 54 (Exceptions to the National Land Planning and Utilization Act) |
Section 8 Support for Implementers and Resident Enterprises
| Article 55 (Termination of Contracts for Lease and Sale of State Property and Public Property) |
| Article 56 (Reduction of and Exemption from Rent for State Property) |
| (1) | Pursuant to Article 52 (5) of the Act, the State may grant reduction of, or exemption from, rent for State property to resident enterprises in a leading investment district under Article 45 of the Act located in a regional development project zone designated and publicly announced according to a regional development plan formulated pursuant to Article 7 (1) 1 of the Act. |
| (2) | The rent reduction percentage for State property under paragraph (1) shall be determined by the administrative office of the State property (including persons delegated or entrusted with administration pursuant to Article 28, 29 or 42 (1) of the State Property Act; hereafter in this Article, referred to as "State property administrative office") by up to 20/100 of the rent for the State property. |
| (3) | A resident enterprise shall apply for reduction of, or exemption from, the rent for the State property pursuant to paragraph (1) to the relevant State property administrative office. |
| (4) | Relevant statutes, such as the State Property Act, shall apply to the basis for calculating rent for State property and procedures for lease. |
| Article 57 (Application, etc. for Support for Authorization or Permission for Resident Enterprises) |
| (1) | Where an enterprise occupying a regional development project zone intends to seek support for authorization, permission, etc. pursuant to Article 53 (1) of the Act, it shall prepare a support application prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport and submit it to the comprehensive regional development support center. |
| (2) | A support application under paragraph (1) shall be accompanied by relevant documents prescribed by relevant statutes, such as architecture, taxation, civil petitions, or invitations for investment. |
| (3) | Upon receipt of a support application pursuant to paragraph (1), the head of a comprehensive regional development support center shall, without delay, examine and manage it; and shall notify the applicant of the result. |
| (4) | Where necessary for the examination and management under paragraph (3), a comprehensive regional development support center may visit and inspect the enterprise that applies for support. |
| (5) | Except as otherwise expressly provided for in paragraphs (1) through (4), matters necessary for applying for support for authorization and permission shall be prescribed by Municipal Ordinance of relevant local government. |
| Article 58 (Building Infrastructure and Providing Subsidies, etc.) |
| (3) | Development projects to which an increased subsidy can be supported pursuant to Article 55 (3) of the Act, detailed matters, such as support rate, etc. shall be publicly announced by the Minister of Land, Infrastructure and Transport after consultation by the Minister of Strategy and Finance. |
| Article 59 (Establishment, Operation, etc. of Integrated Regional Development Information Network) |
Information relating to regional development for which an integrated regional development information network is to be established and operated pursuant to Article 57 of the Act shall be as follows: | 1. | Information necessary for formulating and implementing regional development plans under Article 7 of the Act; |
| 4. | Information provided by relevant agencies, such as industrial sites, urban planning, environment, infrastructure, housing site, tourism, cultural heritage, etc. necessary for efficiently implementing regional development under Article 57 (4) of the Act; |
| Article 60 (Projects in which Development Gains are to be Reinvested, Scope, etc.) |
Where an implementer reinvests development gains pursuant to Article 58 (1) of the Act, he/she shall preferentially reinvest in the following projects related to the relevant regional development project:
| Article 61 (Standards for Recommendation of Autonomous Schools) |
| 1. | Where it is necessary for cultivating human resources and improving educational conditions appropriate for the characteristics of the regional development project zone and an implementer makes such request; |
| 2. | Where a regional development project zone has at least two high schools and it is deemed necessary for cultivating human resources and improving educational conditions appropriate for the characteristics of the area. |
| Article 62 (Incidental Businesses of Medical Foundations) |
| 4. | Establishing and managing private crematory facilities or private charnel facilities under Article 15 (1) of the Act on Funeral Services, Etc. |
| Article 63 (Designation, etc. of Specialized Evaluation Institutions) |
| 1. | It shall be a corporation incorporated pursuant to the Civil Act or other Acts; |
| 2. | It shall have an organization to perform relevant duties; |
| 3. | It shall have specialized human resources with a doctorate in the fields relating to the relevant duties; |
| 4. | It shall have a track record of specialized inspection, research, evaluation, consulting, etc. in the fields relating to the relevant duties; |
| 5. | It shall meet the requirements necessary for evaluating feasibility of a regional development project, determined and publicly announced by the Minister of Land, Infrastructure and Transport. |
| (2) | Where the Minister of Land, Infrastructure and Transport intends to designate a specialized evaluation institution pursuant to Article 65 (2) of the Act, he/she shall designate a specialized evaluation institution by competitive bidding process or directly designate it from among the institutions under Article 64 that meet the requirements referred to in paragraph (1). |
| (3) | Matters necessary for the methods of competitive bid under paragraph (2) shall be prescribed by the Minister of Land, Infrastructure and Transport. |
| (4) | Where a specialized evaluation institution designated pursuant to Article 65 (2) of the Act falls under any of the following, the Minister of Land, Infrastructure and Transport may revoke the designation: Provided, That where subparagraph 1 applies, he/she shall revoke the designation: |
| 1. | Where it obtains designation deceitfully or fraudulently; |
| 2. | Where it ceases to meet the requirements for designation referred to in paragraph (1); |
| 3. | Where the duties performed by it is found deviating from the objective of designation, such as that it fails to appropriately perform duties of evaluation, etc. of business feasibility, etc. |
| Article 64 (Specialized Institutions for Vicarious Evaluation of Results of Implementation of Regional Development Projects) |
"A specialized institution prescribed by Presidential Decree" in the latter part of Article 66 (1) of the Act means the following: | 2. | The Korea Land and Housing Corporation; |
| 3. | An institution performing functions similar to those of the institutions under subparagraphs 1 and 2, designated and publicly announced by the Minister of Land, Infrastructure and Transport. |
CHAPTER III DESIGNATION OF REGIONAL STIMULATION AREAS AND SUPPORT THEREFOR
| Article 65 (Requirements for Designating Regional Stimulation Areas) |
Where the Minister of Land, Infrastructure and Transport intends to designate a regional stimulation area pursuant to Article 67 (1) of the Act, he/she shall consider the following: | 1. | That the gross regional domestic product or the level of financial self-reliance of the area is substantially lower than that of other areas; |
| 2. | That the population of the relevant area is decreasing continuously or stagnant for a certain period; |
| 3. | That it is necessary to create a new income base as the former regional industry abruptly decays due to changes in economic circumstances; |
| 4. | That special support is necessary for balanced development based upon the regional characteristics, such as accessibility to the area, disasters, damage, etc. |
| Article 66 (Preferential Support for Regional Stimulation Areas) |
| (1) | The detailed items, percentage of support, etc. that the State provides preferentially to regional stimulation areas pursuant to Article 70 of the Act shall be determined by the Minister of Land, Infrastructure and Transport after consultation by the Minister of Strategy and Finance. |
| (2) | The detailed items, percentage of support, etc. that a local government provides preferentially pursuant to Article 70 of the Act shall be prescribed by Municipal Ordinance of the relevant local government. |
| Article 67 (Operation of Special Account) |
| (1) | A Do Governor may operate a special account for developing an underdeveloped area under Article 71 of the Act by integrating it with a special account of similar character operated by the local government, as prescribed by Municipal Ordinance of the local government. |
| (2) | Where necessary, the Minister of Land, Infrastructure and Transport may have the head of a local government submit a report on the status of a special account for developing an underdeveloped area. |
CHAPTER IV SUPPLEMENTARY PROVISIONS
| Article 68 (Districts, etc. subject to Conversion, etc. under other Acts) |
| (1) | "Area, district, zone, etc. for a development project prescribed by Presidential Decree" in Article 72 (1) of the Act means the following: <Amended by Presidential Decree No. 27285, Jun. 28, 2016> |
| 6-2. | An urban advanced logistics complex (excluding complexes designated by the Minister of Land, Infrastructure and Transport) under Article 22-2 (1) of the Development and Management of Logistics Facilities; |
| 11. | A station area development district (excluding districts designated by the Minister of Land, Infrastructure and Transport) under Article 4 (1) of the Act on Developing and Using Station Areas; |
| 13. | Other areas, districts, zones, etc. for development projects as publicly announced by the Minister of Land, Infrastructure and Transport as he/she deems necessary after deliberation by the National Land Policy Committee. |
| (2) | If a regional development project zone or an implementer is to be converted under Article 72 (1) of the Act, a conversion plan stating the matters under Article 11 (6) of the Act shall be submitted to the Minister of Land, Infrastructure and Transport together with the following documents: |
| 1. | Documents submitted to a designating authority pursuant to relevant Acts to obtain designation of an area, district, zone, etc. (hereafter referred to as "existing district, etc" in this Article) pursuant to relevant Acts; |
| (3) | Where the Minister of Land, Infrastructure and Transport converts the existing district, etc. into a regional development project zone or converts a project implementer of an existing district, etc. into an implementer under the Act pursuant to Article 72 (2) of the Act, he/she shall publicly announce the matters referred to in Article 11 (6) of the Act and grounds for conversion in the Official Gazette. |
| (5) | Where the repurchase right holder is unidentified without fault of an implementer, or his/her whereabouts is unknown, a public announcement may be substituted for notification, notwithstanding paragraph (4). |
| (6) | The public announcement under paragraph (5) may be made by an implementer by sending documents to be publicly announced to the head of a Si, Gun or Gu (including the head of a Gu that is not an autonomous Gu) and by posting them on the bulletin board of the relevant Si, Gun or Gu (including a Gu that is not an autonomous Gu) for 14 days. In such cases, such documents shall be deemed served on a person who is to be delivered such notification 14 days from the date such documents are posted. |
| Article 69 (Public Announcement of Revocation, etc. of Designation) |
When the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si, Gun or Gu imposes a disposition or issues an order under Article 75 (1) of the Act, he/she shall publicly announce the following matters in the Official Gazette or public report: | 1. | Name of the regional development project; |
| 2. | Name (if a corporation, the names of the corporation and its representative) and address of the implementer; |
| 3. | Location of the area in which the project is to be implemented; |
| 4. | Details of the disposition and reasons for the disposition. |
| Article 69-2 (Delegation of Authority) |
| (1) | The Minister of Land, Infrastructure and Transport shall delegate the following authorities on regional development projects to the head of a regional office of construction management pursuant to Article 79 of the Act: |
| 1. | Consulting on modifying insignificant matters of a regional development project under the latter part of Article 8 (1) of the Act; |
| 2. | Preconsulting with a Mayor/Do Governor on designating and modifying a regional development project zone under Article 11 (8) of the Act; |
| 3. | Issuing an order to submit a report or data, and inspecting duties relating to a regional development project under Article 76 of the Act; |
| (2) | The Minister of Land, Infrastructure and Transport shall delegate the following authorities on a leading investment zone deemed designated pursuant to Article 79 of the Act, as a regional development project zone under the latter part of Article 45 (1) of the Act to a Mayor/Do Governor: Provided, That where the project implementer is the State or a Mayor/Do Governor, this shall not apply: |
| 6. | Necessary measures, such as issuing a certificate of pre-use inspection, publicly announcing construction completion, implementing supplementary construction works, etc. under Article 39 of the Act; |
| 7. | Consulting with the heads of relevant administrative agencies for pre-use inspection, completion authorization, etc. under Article 40 (3) of the Act; |
| 8. | Granting permission for use of developed land before construction completion, etc. under the proviso to Article 41 of the Act; |
| 9. | Imposing necessary dispositions, such as authorization, approval, permission, cancellation of designation, etc. or issuance of an order under Article 75 (1) of the Act, and public announcement under paragraph (2) of the same Article; |
[This Article Newly Inserted by Presidential Decree No. 28097, Jun. 2, 2017]
CHAPTER V PENALTY PROVISIONS
| Article 70 (Imposition of Administrative Fines) |
| (1) | The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor shall impose administrative fines on a person falling under Article 83 (1) 1 (only where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor conducts a basic inspection, etc.) through 4 of the Act. |
| (2) | The head of a Si, Gun or Gu shall impose an administrative fine on a person falling under Article 83 (1) 1 of the Act (only where the head of a Si, Gun or Gu conducts a basic inspection, etc.). |
| (3) | The standards for imposing an administrative fine under Article 83 (1) of the Act shall be as listed in the attached Table 2. |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Article 2 (Repeal of Other Statutes)
The Enforcement Decree of the Special Act on the Promotion of Development Investments in Underdeveloped Areas shall be repealed.
Article 3 Omitted.
Article 4 (Relationship with other Statutes)
Where the Enforcement Decree of the Special Act on the Promotion of Development Investments in Underdeveloped Areas, the Enforcement Decree of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act or provisions thereof are cited in other statutes as at the time this Decree enters into force, and this Decree contains provisions corresponding thereto, this Decree or the relevant provisions of this Decree shall be deemed cited in lieu of the former provisions.
ADDENDA <Presidential Decree No. 26928, Jan. 22, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 25, 2016.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27285, Jun. 28, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 30, 2016.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 12, 2016.
Articles 2 through 8 Omitted.
ADDENDUM <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 27473, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 27972, Mar. 29, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 30, 2017.
Articles 2 through 10 Omitted.
ADDENDUM <Presidential Decree No. 28097, Jun. 2, 2017>
This Decree shall enter into force on June 3, 2017.