ENFORCEMENT DECREE OF THE SPECIAL ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES
Presidential Decree No. 21656, Jul. 30, 2009
Amended by Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 22467, Nov. 2, 2010
Presidential Decree No. 22815, Apr. 1, 2011
Presidential Decree No. 23068, Aug. 5, 2011
Presidential Decree No. 23718, Apr. 10, 2012
Presidential Decree No. 23741, Apr. 20, 2012
Presidential Decree No. 23966, Jul. 20, 2012
Presidential Decree No. 24107, Sep. 21, 2012
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 24688, Aug. 13, 2013
Presidential Decree No. 24697, Aug. 27, 2013
Presidential Decree No. 24852, Nov. 20, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25700, Nov. 4, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26157, Mar. 24, 2015
Presidential Decree No. 26369, jun. 30, 2015
Presidential Decree No. 26442, Jul. 24, 2015
Presidential Decree No. 26716, Dec. 15, 2015
Presidential Decree No. 26928, Jan. 22, 2016
Presidential Decree No. 26980, Feb. 12, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 27960, Mar. 27, 2017
Presidential Decree No. 28091, jun. 2, 2017
Presidential Decree No. 28212, Jul. 26, 2017
Presidential Decree No. 28276, Sep. 5, 2017
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 2 (Request for Designation of Free Economic Zones) |
| (1) | Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") intends to request the designation of any free economic zone in accordance with Article 4 (1) of the Special Act on Designation and Management of Free Economic Zones (hereinafter referred to as the "Act"), he/she shall separately take measures to stabilize the prices of real estate, including land, buildings, etc. located in an area to be developed into a free economic zone and in its surrounding areas and have prior consultations with the Minister of Trade, Industry and Energy and the Minister of Land, Infrastructure and Transport. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | A Mayor/Do Governor may request the heads of relevant central administrative agencies to take necessary measures to stabilize real estate prices in a free economic zone and its surrounding areas. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 2-2 (Hearing Opinions of Residents) |
| (1) | When a Mayor/Do Governor intends to hear the opinions of residents to request the designation of a free economic zone pursuant to the latter part of Article 4 (2) of the Act, he/she shall publicly announce the following matters in the public bulletin and via the website of the relevant local government and may publicly announce such matters through two or more daily newspapers that are mainly distributed in the relevant Special Metropolitan City, a Metropolitan City, Do or a Special Self-Governing Province (hereinafter referred to as "City/Do"). In such cases, the Mayor/Do Governor shall make such documents available for perusal by all residents under his/her jurisdiction for not less than 14 days from the date of such announcement: |
| 1. | The name, location and area of the district subject to the designation of a free economic zone; |
| 2. | Key details of a development plan for a free economic zone under Article 4 (2) of the Act (hereinafter referred to as "development plan for a free economic zone"); |
| 3. | Period and methods of perusal of the relevant documents. |
| (2) | A resident who has any opinion concerning matters publicly announced pursuant to paragraph (1) may submit a written opinion to the competent Mayor/Do Governor within the period of perusal under paragraph (1). |
| (3) | A Mayor/Do Governor shall review whether the opinion submitted pursuant to paragraph (2) is reflected in the development plan for a free economic zone and then notify the resident who has submitted the relevant opinion of the results thereof within 15 days from the date the period of perusal ends. |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 2-3 (Consultation on Development of Free Economic Zones) |
| (1) | The head of a relevant administrative agency, in receipt of a request by the Minister of Trade, Industry and Energy for consultation under the former part of Article 4 (4) of the Act, shall comply with such request with his/her opinion within 20 days from the date he/she receives such request: Provided, That where any other statutes provide for special provisions related to the consultation period for a decision on or modification of a plan for the development of free economic zones, the head shall comply with such statutes. |
| (2) | Where the head of a relevant administrative agency in receipt of a request for consultation under paragraph (1) is not able to comply therewith within the consultation period due to unavoidable circumstances, he/she shall notify the grounds and deadline for reply and state his/her opinion within such deadline. |
[This Article Newly Inserted by Presidential Decree No. 26716, Dec. 15, 2015]
| Article 2-4 (Phased Development of Free Economic Zones) |
"Where requirement prescribed by Presidential Decree has been fulfilled" in Article 4 (7) of the Act means any of the following cases: <Amended by Presidential Decree No. 24688, Aug. 13, 2013; Presidential Decree No. 25700, Nov. 4, 2014> | 1. | Where the land required for the development of a free economic zone is owned by the State or the public or is owned by an expected operator of a development project under Article 6 (1) 3 of the Act (hereinafter referred to as "expected development project operator") or a development project operator under Article 7 (2) of the Act (hereinafter referred to as "development project operator"); |
| 2. | Where a development project under subparagraph 5 of Article 3-3 of the Act (hereinafter referred to as "development project") is conducted at a unit district for a development project, the size of which is at least two million square meters, among unit districts for a development project under Article 6 (1) 3-2 of the Act (hereinafter referred to as "unit district for a development project") and the area of which subject to phased development is at least 30/100 of the size of the unit district for a development project; |
| 4. | Where a development plan for a free economic zone is established to implement the development in phases in accordance with other statutes. |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 3 (Public Announcement, etc. of Designation of Free Economic Zones) |
| (1) | Where the Minister of Trade, Industry and Energy designates any free economic zone in accordance with Article 4 (8) of the Act, he/she shall publicly announce the following matters in the Official Gazette: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 24688, Aug. 13, 2013> |
| 1. | The name, location and area of the free economic zone; |
| 2. | Objectives of designating the free economic zone; |
| 3. | Location and size of the development project, and an expected operator or an operator of the development project; |
| 4. | Duration of development projects, means to secure finances and methods of implementing the development project (referring to the duration of the development project, means to secure finances and methods of implementing the development projection in each phase, where the development project is undertaken in phases in accordance with Article 4 (7) of the Act); |
| 5. | Programs for utilizing land and for major infrastructure; |
| 6. | Programs for accommodating population and constructing residential buildings; |
| 7. | Programs for inducing investments from foreigners and creating an environment for their settlement; |
| 8. | Means to peruse relevant books; |
| 9. | Other matters deemed necessary by the Free Economic Zone Committee pursuant to Article 25 of the Act (hereinafter referred to as the "Committee"). |
| (2) | Where the Minister of Trade, Industry and Energy modifies the details of a development plan for a free economic zone in accordance with Article 7 of the Act, he/she shall publicly announce the grounds therefor and matters falling under the subparagraphs of paragraph (1) in the Official Gazette. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | Where the Minister of Trade, Industry and Energy revokes the designation of a free economic zone pursuant to Article 8 of the Act or excludes a unit district for a development project under Article 6 (1) 3-2 of the Act from a free economic zone and where the designation of a free economic zone is deemed revoked pursuant to Article 8-2 of the Act, he/she shall publicly announce the matters falling under the subparagraphs of paragraph (1) (the matters under paragraph (1) 1 through 3, where the entire designation of a free economic zone is revoked) and the following matters in the Official Gazette: <Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 24688, Aug. 13, 2013> |
| 1. | The area for the revocation of the designation of the relevant free economic zone; |
| 2. | The grounds for the revocation of the designation of the relevant free economic zone; |
| 3. | The date of designation of the relevant free economic zone and the date the revocation of such designation become effective; |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 4 (Requirements for Designation of Free Economic Zones) |
"Other requirements prescribed by Presidential Decree" in subparagraph 7 of Article 5 of the Act means the following matters: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> | 1. | To easily secure professional human resources required for a plan for attracting industries under Article 6 (1) 9 of the Act, such as infrastructure for transportation and communications, and living conditions, etc.; |
| 2. | To ensure sustainable development that does not waste resources including economy, society, environment, etc. for the future generation, or undermine conditions; |
| 3. | To be equipped with professional human resources and organizations in charge of developing the relevant free economic zone and attracting foreign investment; |
| 4. | Other matters publicly announced by the Minister of Trade, Industry and Energy after undergoing deliberation by the Committee. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 4-2 Deleted. <by Presidential Decree No. 23068, Aug. 5, 2011> |
| Article 5 (Development Plans for Free Economic Zones) |
| (1) | "Matters prescribed by Presidential Decree" in Article 6 (1) 16 of the Act means the following matters: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| 1. | Duration of a development project; |
| 2. | Matters concerning infrastructure, such as water supply, energy, traffic, and information and communications; |
| 3. | Programs for creating cultural facilities and parks, as well as greenbelts; |
| 4. | Urban landscape programs; |
| 5. | Programs for existing buildings, structures, etc. to be kept intact; |
| 6. | Programs for underground installations, including utility tunnels, etc.; |
| 7. | Matters concerning the inducement of major facilities and standards for installing them; |
| 8. | Examination of the economic efficiency with respect to programs for constructing key establishments, including major infrastructure, etc., necessary to develop any free economic zone. |
| (2) | A development plan for a free economic zone shall be accompanied by the following documents and drawings: |
| 1. | A topographic map drawn to a scale of 1:25,000 or greater, which indicates the location of the relevant free economic zone, and a topographic map drawn to a scale of 1:5,000 or greater, which indicates the location of the relevant free economic zone; |
| 2. | A land registration map or forest land map, which indicates the boundaries of the relevant free economic zone. |
| (3) | When deemed necessary, the Minister of Trade, Industry and Energy may request the relevant Mayor/Do Governor for additional matters to be included in a development plan for a free economic zone. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 5-2 (Modification of Development Plans for Free Economic Zones) |
| (1) | When the Minister of Trade, Industry and Energy is requested to modify a development plan for free economic zones under Article 7 (1) and (2) of the Act, he/she shall notify the Mayor/Do Governor or the development project operator in writing as to whether the development plan for free economic zones is modified within three months from the date he/she was requested to modify it except in extenuating circumstances. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | The period to go through the Mayor/Do Governor under the former part and latter part of Article 7 (2) of the Act shall be within one month. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (3) | "Where any important matter prescribed by Presidential Decree is intended for modification" in Article 7 (3) 1 of the Act means any of the following cases: <Amended by Presidential Decree No. 24688, Aug. 13, 2013; Presidential Decree No. 26716, Dec. 15, 2015> |
| 1. | Where the size of a unit district for a development project is changed by not less than the size under paragraph (4) 2. In such cases, paragraph (5) shall apply mutatis mutandis to the methods of calculating the size; |
| 2. | Where the method of development is changed to phased development under subparagraph 2 of Article 2-4. |
| (4) | "Insignificant matters prescribed by Presidential Decree" in Article 7 (4) of the Act means the following matters: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 23966, Jul. 20, 2012; Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25700, Nov. 4, 2014> |
| 1. | Change of name of the relevant free economic zone due to a change in administrative districts, etc.; |
| 2. | Change in the size of a unit district for a development project, which falls under any of the following items: |
| (a) | Where the total size of a unit district for a development project is at least one million square meters: Change in the size of less than 100,000 square meters; |
| (b) | Where the total size of a unit district for a development project is less than one million square meters: Change in the size of less than 10/100 of the unit district for a development project ; |
| 3. | Change in a land utilization plan, plan for major infrastructure, etc. within the size prescribed in subparagraph 2; |
| 4. | Change of less than 10/100 in the number of population to be accommodated in a unit district for a development project; |
| 5. | Change of plans for major infrastructure due to natural features of land and nature of soil; |
| 8. | Correction of the scale of execution due to errors, etc. insofar as no change in a development project execution district occurs; |
| 9. | Change of road plans, waterworks plans or sewerage plans prescribed by Ordinance of the Ministry of Trade, Industry and Energy; |
| 10. | Reduction in the duration of the development project, or extension thereof for up to one year; |
| 11. | Increase or decrease in business expenses within 10/100 on the basis of the amount stated in the items of methods of raising finances; |
| 12. | Replacement of a development project operator, such as cancellation or substitute designation of a project operator; |
| 13. | Other matters equivalent to those referred to in subparagraphs 1 through 12, prescribed by Ordinance of the Ministry of Trade, Industry and Energy. |
| (5) | Sizes under paragraph (4) 2 and 3 shall be calculated by adding the size to be changed under paragraph (4) 2 or 3 and the size changed under paragraph (4) 2 or 3 within the same development project district during the past year. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (6) | Where a request for change in matters under paragraph (4) 6 is filed, the Minister of Trade, Industry and Energy shall change them unless any extenuating circumstance exists. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 5-3 (Matters to be Consulted with Mayors/Do Governors in Developing Areas with Development Plans for Free Economic Zones yet to be Established) |
"Cases prescribed by Presidential Decree" in the proviso to Article 7-3 of the Act means any of the following cases: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> [This Article Newly Inserted by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 6 (Scope of Areas Contiguous to Free Economic Zones) |
"Distance determined by Presidential Decree" in the subparagraphs of Article 7-4 of the Act means two kilometers. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> [This Article Newly Inserted by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 6-2 (Restrictions on Acts) |
| (1) | "Act prescribed by Presidential Decree, such as the alternation in the form or quality of land, the construction of buildings, and the installation of structures" in the former part of Article 7-5 (1) of the Act means any of the following acts: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| 1. | Alteration in the form and quality of land and excavation; |
| 2. | Gathering soil, stones, gravel or sand; |
| 3. | New construction, reconstruction and expansion of buildings, or installation of structures; |
| 4. | Deforestation of bamboo or trees and planting; |
| 5. | Installation of, or storing goods difficult to move. |
| (2) | The competent Mayor/Do Governor shall grant permission to engage in an act falling under any subparagraph of paragraph (1) to the extent that does not hinder the relevant development project. In such cases, the competent Mayor/Do Governor shall hear the opinions of the relevant development project operator before granting permission. |
| (3) | Notwithstanding paragraph (1), any of the following acts in districts of a development project may be committed, even without permission from the competent Mayor/Do Governor: <Amended by Presidential Decree No. 25700, Nov. 4, 2014> |
| 1. | Change in the form and quality of land for cultivation; |
| 2. | Establishment of small structures to be directly used to produce agricultural, forest, and fishery products; |
| 3. | Temporary planting of ornamental plants in areas, other than farmland; |
| 4. | Installation or storage of any good of less than five tons, a single body, the part of which is less than one ton and can be easily classified; |
| 5. | Utilization of land within the extent not hindering development projects and damaging the natural landscape. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 6-3 (Revocation of Designation of Free Economic Zones) |
"Grounds prescribed by Presidential Decree" in Article 8 (1) 4 of the Act means cases where the designation of a development zone, area, district, etc. is in progress in accordance with other statutes and thus it is unnecessary to maintain the designation of a free economic zone taking into account plans for the use of land, attracting enterprises, etc. under the relevant statutes. [This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 6-4 (Legal Fiction of Revocation of Designation of Free Economic Zones) |
| (2) | When a Mayor/Do Governor intends to request the exclusion from the legal fiction of the revocation of designation of a free economic zone pursuant to the proviso to Article 8-2 (1) of the Act, he/she shall prepare a written request including the following matters six months before the date the period under the main sentence of Article 8-2 (1) of the Act expires and then submit such request to the Minister of Trade, Industry and Energy: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | The name, location and size of the free economic zone; |
| 2. | The size of the area subject to legal fiction of the revocation of designation; |
| 3. | Grounds for the exclusion from the legal fiction of the revocation of designation; |
| 4. | Plans for the future development of the area subject to legal fiction of the revocation of designation; |
| 5. | Other matters publicly announced by the Minister of Trade, Industry and Energy as deemed necessary. |
| (3) | Upon receipt of a request for the exclusion from the legal fiction of the revocation of designation pursuant to paragraph (2), the Minister of Trade, Industry and Energy shall notify the Mayor/Do Governor of the results of the deliberation and resolution by the Committee within three months from the date he/she receives such request. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 6-5 (Designation of Development Project Operators) |
| (1) | "Institution prescribed by Presidential Decree" in Article 8-3 (1) 3 of the Act shall be as follows: <Amended by Presidential Decree No. 23741, Apr. 20, 2012> |
| 2. | The Korea Highway Corporation under the Korea Expressway Corporation Act; |
| 6. | Deleted; <by Presidential Decree No. 25700, Nov. 4, 2014> |
| 8. | The Incheon International Airport Corporation under the Incheon International Airport Corporation Act; |
| (2) | "Person meeting qualification requirements prescribed by Presidential Decree, such as capital, etc." in Article 8-3 (1) 5 of the Act means any of the following persons: <Amended by Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 24688, Aug. 13, 2013; Presidential Decree No. 24697, Aug. 27, 2013; Presidential Decree No. 25700, Nov. 4, 2014> |
| 1. | A person whose corporate bond or corporate credit appraised by a credit rating company authorized for credit rating business under Article 335-3 of the Financial Investment Services and Capital Markets Act or a foreign credit rating agency internationally accredited falls under an investment-grade level or higher, and fulfills at least two requirements, including item (a), among the following requirements: |
| (a) | The equity capital in the latest year shall be at least 10/100 of total project cost, or the total amount of sales shall be at least 30/100 of total project cost (in cases of a corporation that falls under Article 8-3 (1) 6 of the Act, the equity capital in the latest year shall be at least 2.5/100 of total project cost or 50 billion won); |
| (b) | Debt ratio in the latest year shall be less than 1.5 times the average of the same type of industry; |
| (c) | Current net income shall have been generated for at least two years over the last three years; |
| 2. | A person who owns at least 50/100 of land size of the relevant unit district for a development project; |
| 3. | Association established for the development of free economic zones by land owners in free economic zones, which meets all of the following requirements: |
| (a) | It shall obtain consent from land owners corresponding to at least two thirds of land size in the relevant area; |
| (b) | It shall obtain consent from at least a half of the total number of land owners of the relevant area; |
| 5. | A foreign-invested enterprise established for the purpose of conducting a development project, which falls under any of the followings: |
| (b) | The amount of foreign investment shall be at least 5/100 of the total project expenses; |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 6-6 (Implementation Orders to Development Project Operators) |
When a Mayor/Do Governor intends to issue an implementation order under Article 8-4 (2) of the Act, he/she shall notify such order in writing, indicating the following matters: | 1. | A relevant unit district for a development project and the operator thereof; |
| 2. | The grounds for and details of the implementation order; |
| 3. | The deadline for complying with the implementation order; |
| 4. | Other matters recognized by the Mayor/Do Governor as necessary. |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 6-7 (Benchmark Amount for Purchase Consultation) |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 7 (Preparation of Implementation Plans) |
Each development project operator shall prepare an implementation plan under Article 9 (1) of the Act (hereinafter referred to as "implementation plan") in compliance with the master plan for free economic zones under Article 3-2 of the Act and the development plan for a free economic zone. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 8 (Application for Approval of Implementation Plans) |
| (1) | Where a development project operator intends to obtain approval of an implementation plan or approval for modification thereof in accordance with Article 9 (1) of the Act, he/she shall prepare an application specifying the following matters and file such application with the competent Mayor/Do Governor: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | The location and area of the development project he/she intends to undertake; |
| 2. | The duration of the development project; |
| 3. | Schedule to secure and utilize land required for the development project; |
| 4. | Where the development project is undertaken in phases in accordance with Article 4 (7) of the Act, the program for implementing the development project in each phase; |
| 6. | Measures for renting, or supplying for lotting-out, the part of the land for facilities for industry and distribution to foreign-invested enterprises pursuant to Article 9 (5) of the Act; |
| 7. | Where the building-to-land ratio or floor space index is separately provided under Article 9-2 of the Act, the necessity of application of relevant special cases and the details thereof; |
| 10. | The name and address of the relevant development project operator; |
| 11. | Other matters deemed necessary to undertake the development project and publicly announced by the Minister of Trade, Industry and Energy. |
| (2) | Each application for approval of an implementation plan under paragraph (1) shall be accompanied by the following documents and drawings: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 23966, Jul. 20, 2012> |
| 2. | The site map drawn on the basis of the land registration map; |
| 3. | Planned floor plan design and summary drawing documents; |
| 4. | A financial plan and a document attesting such plan (including annual investment plans, annual plans for securing financial resources and annual plans for recovery of money invested, etc.); |
| 5. | Programs for inducing foreign investment; |
| 7. | Programs for utilizing, earning profit therefrom, managing, and disposing of (including matters with respect to the methods and prices of disposal) the land and facilities created by the development project; |
| 9. | Documents concerning measures to preserve cultural heritage; |
| 10. | Written records concerning installation, relocation, removal, reversion, transfer of control, transfer, etc. of public facilities; |
| 11. | A detailed statement concerning the location, lot number, category, area, ownership and rights, other than the ownership of the land, etc. to be expropriated, and a document stating the name and address of the landowner or the rightful claimant of the land; |
| 12. | A detailed statement concerning existing factories or buildings, etc. that are intended to be kept intact as they are; |
| 13. | Programs for reversing and replacing public facilities and land, etc.; |
| 14. | Documents necessary for consultations with the heads of administrative agencies concerned under Article 11 (2) of the Act. |
| (3) | Except as otherwise provided for in paragraphs (1) and (2), the Minister of Trade, Industry and Energy may prescribe and publicly announce matters necessary for establishing an implementation plan, such as methods of preparing accompanied drawings and documents. <Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011; Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 9 (Procedures for Approving Implementation Plans) |
| (1) | A relevant development project operator shall file an application for approving an implementation plan under Article 9 (1) of the Act within 18 months from the date of designation as a development project operator with the competent Mayor/Do Governor, and also submit a copy of his/her implementation plan to the Minister of Trade, Industry and Energy: Provided, That where the deadline for approval of implementation plans has been extended under Article 9 (3) of the Act, the deadline for application for approval of implementation plans shall be also deemed extended as much as the relevant extended deadline. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | When a Mayor/Do Governor is requested to approve an implementation plan or approve modification to an implementation plan under Article 9 (1) of the Act, he/she shall notify, in writing, a relevant development project operator as to whether he/she approves the implementation plan or approves modification to the implementation plan within five months from the date on which he/she is requested for approval or approval of modification, unless any extenuating circumstances exist. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 9-2 (Matters to be Consulted in Approving Implementation Plans) |
"Implementation plan that meets the criteria prescribed by Presidential Decree" in Article 9 (2) of the Act means any of the following implementation plans: <Amended by Presidential Decree No. 26716, Dec. 15, 2015> | 1. | An implementation plan in which any matter related to the subsidization of State funds is newly inserted or amended in a financing plan; |
| 2. | An implementation plan which involves the confirmation or confirmation of amendment to a development plan for a free economic zone (excluding cases falling under any subparagraph of Article 5-2 (4)); |
| 3. | An implementation plan that has a matter that the Committee has requested to add while deliberation on or resolution of a development plan for a free economic zone. |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 10 Deleted. <by Presidential Decree No. 23068, Aug. 5, 2011> |
| Article 11 (Timing of Submission of Environmental Impact Assessment Reports, etc.) |
Environmental impact assessment reports, traffic impact assessment and consultations shall be submitted and requested, or deliberation by the deliberation committee of traffic impact assessment shall be made, prior to granting of approval for an implementation plan, notwithstanding Article 47 of the Enforcement Decree of the Environmental Impact Assessment Act and Article 13-3 of the Enforcement Decree of the Urban Traffic Improvement Promotion Act. <Amended by Presidential Decree No. 23966, Jul. 20, 2012; Presidential Decree No. 26928, Jan. 22, 2016> [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 11-2 (Special Cases concerning the National Land Planning and Utilization Act) |
The Special Metropolitan City, Metropolitan Cities having jurisdiction over free economic zones or Sis/Guns located in free economic zones may separately set the building-to-land ratio or floor space index in the free economic zones by their municipal ordinances within 150/100 of the building-to-land ratio or floor space index to be applied to the relevant specific-use area: Provided, That where the specific-use area is altered under Article 11 (1) 16 of the Act, the building-to-land ratio or floor space index shall not be set separately. [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 11-3 Deleted. <by Presidential Decree No. 23068, Aug. 5, 2011> |
| Article 11-4 (Methods, etc. of Supply of Prepared Land) |
| (1) | "Where a development project operator supplies any prepared land for purposes determined by Presidential Decree, including inducement of foreign investment" in Article 9-7 (2) of the Act means any of the following cases: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 25700, Nov. 4, 2014> |
| 1. | Supplying any prepared land (hereinafter referred to as "prepared land") under Article 9-7 (1) of the Act to foreign-invested enterprises, foreign educational institutions, and foreign medical institutions; |
| 2. | Supplying prepared land to the State or local governments; |
| 3. | Cases where a small and medium enterprise cooperative or business operators’ organization supplies prepared land to its members or business operators pursuant to Article 6-5 (2) 4; |
| 4. | Other cases deemed necessary by a Mayor/Do Governor to induce foreign investment or revitalize free economic zones. |
| (2) | Where a development project operator intends to supply prepared land, he/she shall make a competitive bidding: Provided, That in any of the following cases, he/she may supply prepared land, by a free contract: |
| 1. | Supplying prepared land to any person falling under any subparagraph of paragraph (1); |
| 2. | Cases where he/she may supply prepared land by a free contract under related statutes. |
| (3) | Notwithstanding paragraphs (1) and (2), the site for construction of a house not larger than the size of national housing defined in subparagraph 6 of Article 2 of the Housing Act (including sites for rental housing), the site for a detached house which is not larger than 330 square meters, sites for industrial facilities, and logistics facilities may be supplied by method of drawing of lots. <Newly Inserted by Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 27444, Aug. 11, 2016> |
| (4) | Where a development project operator intends to supply prepared land, he/she shall publicly announce the following matters by no later than ten days prior to the deadline for application for supply (by no later than five days in cases of emergency or re-supply): Provided, That public announcement may be omitted in cases of supplying prepared land by a free contract under the proviso to paragraph (2): <Amended by Presidential Decree No. 24107, Sep. 21, 2012> |
| 1. | The location, area, and purpose of use of prepared land; |
| 2. | The timing, method, and conditions of supply; |
| 3. | Supply price or method of determination of supply price; |
| 4. | Qualifications of persons entitled to supply and method of selection. |
| (5) | Standards for price per purpose of use of prepared land shall be as provided for in attached Table 1: Provided, That in cases of supplying prepared land at a price below the cost of creation under Article 9-7 (2) of the Act, it shall comply with standards for price prescribed by the development project operator through consultation with the competent Mayor/Do Governor. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No 24107, Sep. 21, 2012> |
| (6) | Details necessary for the supply of prepared land, other than matters provided for in paragraphs (1) through (5) shall be prescribed and announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 24442, Mar. 23, 2013 > |
[This Article Newly Inserted by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 11-5 (Re-Investment of Development Gains) |
Each development project operator shall reinvest 10/100 of gains generated from development pursuant to Article 9-8 (1) of the Act. <Amended by Presidential Decree No. 24688, Aug. 13, 2013; Presidential Decree No. 25700, Nov. 4, 2014> [This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 12 (Public Announcement of Approval for Implementation Plans) |
A Mayor/Do Governor shall publish the following matters in the public bulletin with regard to an implementation plan under Article 10 (1) of the Act: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> | 1. | The name of the unit district for a development project and the name of the development project operator (in cases of a corporation, the name of such corporation and the representative thereof); |
| 2. | Objectives and a summary of the development project; |
| 3. | The location and area of the unit district for a development project; |
| 4. | The duration of the development project; |
| 5. | Details of the land, etc. to be expropriated or used: Provided, That details of the land, etc. included in the publication of designation of the relevant free economic zone shall be excluded. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 12-2 (Procedures for Legal Fiction of Authorization, Permission, etc.) |
The head of a relevant administrative agency, upon receipt of a request for consultations from a Mayor/Do Governor under Article 11 (2) of the Act, shall submit his/her opinions within 20 days from the date such request is received. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 26157, Mar. 24, 2015> [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 12-3 Deleted. <by Presidential Decree No. 23068, Aug. 5, 2011> |
| Article 13 (Completion Inspection) |
| (1) | Where a development project operator intends to undergo a completion inspection in accordance with Article 14 (1) of the Act, he/she shall file an application for the completion inspection, accompanied by the following documents, with the Mayor/Do Governor: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Written records of completion of works (including drawings and specification of completion of works and photos showing completion of works); |
| 2. | The map of cadastral survey; |
| 3. | Written records of land areas by purpose of use; |
| 4. | Written records of reverted public facilities, etc. and the drawings thereof; |
| 5. | Other documents prescribed by Ordinance of the Ministry of Trade, Industry and Energy. |
| (2) | Upon receipt of any application for work completion inspections, the Mayor/Do Governor shall check whether the relevant development project has been undertaken in compliance with the relevant implementation plan and if he/she recognizes that the relevant development project has been undertaken in compliance with such plan, he/she shall deliver an inspection certificate of work completion to the relevant development project operator and publicly announce the following matters in the public bulletin: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | The name of the development project; |
| 2. | The name and address of the development project operator; |
| 3. | The location and area of the development project and the area by purpose of use; |
| 4. | The date of completion of works; |
| 5. | Matters concerning management and disposal of major facilities; |
| 6. | Other matters deemed necessary and publicly announced by the Minister of Trade, Industry and Energy. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 14 (Use of Land, etc. prior to Completion Inspection) |
| (1) | Where any person who has rented or purchased, by contract, any land developed or any facility installed under a development project, requests for permission to use them prior to a completion inspection, the relevant development project operator shall, if the use of such land and facility prior to the completion inspection is deemed not to impede his/her development project, file an application for permission for use prior to completion inspection without delay, accompanied by the following documents, with the Mayor/Do Governor, pursuant to the proviso to Article 14 (3) of the Act: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| 1. | Documents stating the grounds for using them and the urgency of using them prior to a completion inspection; |
| 2. | Documents showing the current progress of works involving such land and facility to be used; |
| 3. | Written opinion presented by the inspector of works or the supervisor of works with regard to the possibility of use of land and facilities to be used and their safety, etc.; |
| 4. | Drawings and photos showing such land and facilities to be used in the completion stage; |
| 5. | The explicit survey of the land to be used. |
| (2) | Upon receipt of an application from the relevant development project operator for using land and facilities under paragraph (1), the Mayor/Do Governor shall determine whether the developed land and installed facilities can be used in accordance with their intended purpose and then impose a disposition to grant permission or not to grant permission within 30 days from the date on which he/she receives such application. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 14-2 (Scope of Installation of Infrastructure) |
The scope of facilities to be installed by type under Article 14-2 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 23718, Apr. 10, 2012; Presidential Decree No. 23741, Apr. 20, 2012> | 1. | Roads: Roads meeting all of the following requirements: |
| (b) | That it shall be a national highway, Do road, or State-subsidized Do road under the Road Act, which is to be installed by local governments; |
| 2. | Waterworks and sewerage: Ducts of waterworks and sewerage not linked with the ducts of waterworks and sewerage within a free economic zone but just pass through the zone; |
| 3. | Electricity facilities: Electricity facilities to the boundary line of individual plot of land (hereinafter referred to as "individual plot of land") adjacent to an urban and Gun planning road with a width of six meters or wider on the land utilization plan within a free economic zone, which shall be facilities being the mainstay outside the free economic zone: Provided, That where main electricity facilities within a free economic zone are installed underground upon the request of a development project operator, the person who supplies electricity and the person who requests to install it underground shall bear the expenses incurred in installing main electricity facilities underground within a free economic zone in the ratio of 50:50; |
| 4. | Gas supply facilities: Gas supply facilities to the boundary line [to a fixed pressure control room where a fixed pressure control room is installed within the individual plot of land to supply gas for cooking or individual heating (excluding central heating)] of each individual plot of land within the free economic zone, which shall be facilities being the mainstay outside the free economic zone; |
| 5. | District heating facilities: Heat transfer pipes to the control valve at the entrance of each machine room of individual plot of land from the diverging point of heat transfer pipe, which shall be the mainstay outside the free economic zone; |
| 6. | Communications facilities: Cable facilities to the boundary line outside the individual plot of land from the facilities being the mainstay of the free economic zone and cable facilities from the facilities being the mainstay outside the free economic zone to the first terminal in the individual plot of land. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 15 (Funding Support for Local Governments) |
| 1. | The scale of job creation; |
| 2. | The effects of technology transfer; |
| 3. | The type of business run and the amount of investment made by foreign-invested enterprises located in free economic zones (hereinafter referred to as "foreign-invested enterprise located in a free economic zone"); |
| 4. | The scope of contribution by local governments to induce foreign investments; |
| 5. | The ripple effects of foreign investments on the local economy as well as the national economy. |
| (2) | Upon receipt of requests from local governments for subsidization, the heads of central administrative agencies shall subsidize such local governments according to the subsidization standards set by the Committee: Provided, That where subsidies are granted under Article 14 of the Foreign Investment Promotion Act as the foreign investment areas under Article 18 of the same Act are designated within a free economic zone, no subsidies shall be granted. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 16 (Reduction of or Exemption, etc. from Rents on National and Public Property) |
| (1) | Deleted. <by Presidential Decree No. 26157, Mar. 24, 2015> |
| (2) | The reduction or exemption rate applied to rents on national property provided for in the former part of Article 16 (4) of the Act shall be determined by the head of the competent central government agency of the relevant national property (including any person to whom it is delegated or entrusted under Article 28 (1) or 29 (1) of the State Property Act; hereinafter the same shall apply) within the scope of 100/100 of the rents on the relevant national property. <Amended by Presidential Decree No. 22815, Apr. 1, 2011; Presidential Decree No. 26157, Mar. 24, 2015> |
| (3) | Any foreign-invested enterprise located in a free economic zone that intends to qualify for reduction of or exemption from rents on national property in accordance with the former part of Article 16 (4) of the Act shall file an application for the reduction of or exemption from the rents with the head of the competent central government agency of the relevant national property. <Amended by Presidential Decree No. 22815, Apr. 1, 2011; Presidential Decree No. 26157, Mar. 24, 2015> |
| (4) | Any foreign-invested enterprise located in a free economic zone that intends to have rents on any public property reduced or exempted in accordance with the former part of Article 16 (4) of the Act shall file an application for the reduction of or exemption from rents with the head of the relevant local government. <Amended by Presidential Decree No. 26157, Mar. 24, 2015> |
| (5) | The relevant local government shall prescribe details, such as the business entitled to the reduction of or exemption from rents on public property and the reduction or exemption rate of rents provided for in the former part of Article 16 (4) of the Act in municipal ordinance, taking into account the creation of jobs and effects on the revitalization of free economic zones and the local economy, etc. <Amended by Presidential Decree No. 26157, Mar. 24, 2015> |
| (6) | If the State and a local government sell any national or public property to any development project operator or any foreign-invested enterprise located in a free economic zone in accordance with Article 16 (5) of the Act and any purchaser is deemed to face difficulty in paying the purchase price in lump sum, it may extend the payment deadline of the purchase price or allow the purchaser to pay the purchase price in installments according to the following methods. In such cases, the interest applied shall not exceed four percent per annum: |
| 1. | In cases of national property: The payment deadline of the purchase price is extended within one year or the purchase price is paid in installments within 20 years; |
| 2. | In cases of public property: The payment deadline of the purchase price is extended or the purchase price is paid in installments, as prescribed by municipal ordinance. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 17 (Prioritized Support for Infrastructure) |
| (1) | The infrastructure the State or local governments shall give priority to supporting under Article 18 of the Act shall be as follows: |
| 1. | National expressways, general national highways, Special Metropolitan City highways, Metropolitan City highways, local highways and State-subsidized local highways, which all link free economic zones with outside areas; |
| 2. | Principal roads inside free economic zones; |
| 3. | Railway, subway, airport and harbor facilities; |
| 4. | Parks and green areas; |
| 5. | Utility tunnels, tap-water and sewage systems, and waste-disposal facilities; |
| 6. | Other infrastructure deliberated and decided on by the Committee as requiring preferential subsidization to revitalize free economic zones. |
| (2) | The State may subsidize infrastructure referred to in each subparagraph of paragraph (1) within 50/100 of the construction cost: Provided, That if deemed necessary to revitalize free economic zones, the State may subsidize the construction cost of up to the whole amount thereof after undergoing deliberation and resolution thereon by the Committee, exceeding 50/100 of the construction cost. |
| (3) | Where the State provides subsidization under paragraph (2), it shall determine infrastructures subject to subsidization and the scope of subsidization after undergoing deliberation and resolution thereon by the Committee. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 18 (Provision of Foreign-Language Services) |
| (1) | Foreign-language services rendered under Article 20 (1) of the Act shall be provided in English in principle and if deemed necessary, other foreign-language services may be rendered. |
| (2) | The scope of foreign-language services under Article 20 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Statutes governing the designation and operation of free economic zones; |
| 2. | Development plans of free economic zones; |
| 3. | Various official business manuals and information materials compiled by administrative agencies in connection with the development project; |
| 4. | Documents sent to foreigners (including organizations of foreigners; hereinafter the same shall apply) in free economic zones; |
| 5. | Replies to civil petitions filed by foreigners in free economic zones; |
| 6. | Handling of queries and complaints from foreigners and counseling for foreigners in free economic zones; |
| 7. | Various publications and public notices made under this Act; |
| 8. | Other matters deemed necessary to ensure the conveniences of foreigners and publicly announced by the Minister of Trade, Industry and Energy. |
| (3) | If requested by foreigners in free economic zones, relevant administrative agencies shall translate materials under each subparagraph of paragraph (2) into English and provide foreigners with them and such administrative agencies may, if deemed necessary, render interpretation services. |
| (4) | For the purpose of rendering foreign-language services under the subparagraphs of paragraph (2), relevant administrative agencies shall post necessary professionals, including interpreters, translators, etc., and compile and keep relevant materials, etc. |
| (5) | Relevant administrative agencies may, if requested by foreigners in free economic zones, assist with their handling of civil-petition affairs, including preparation and submission, etc. of their civil petitions. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 19 (Payment in Ordinary Transactions) |
The price in an ordinary transaction in any free economic zone under Article 21 of the Act, the amount of which is not more than 20,000 U.S. dollars per transaction, may be paid directly by means of foreign payment between the parties to such ordinary transaction. <Amended by Presidential Decree No. 26716, Dec. 15, 2015> [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 20 (Appointment of Foreign Teachers, etc.) |
| (1) | Qualifications for foreign teachers appointed to teach the curriculum of international high schools under Article 22 (7) of the Act (hereinafter referred to as "international high school") shall be as follows: |
| 2. | Persons who have taught for not less than three years after obtaining teaching qualifications in accordance with laws of their countries. |
| (2) | Any person authorized to appoint teachers may appoint any foreigner as a lecturer if necessary to administer the curriculum of an international high school. |
| (3) | Qualifications referred to in each subparagraph of paragraph (1) shall apply to qualifications for appointment of foreign lecturers under paragraph (2): Provided, That any foreigner who has earned a bachelor's degree or higher in accordance with laws of his/her country shall be deemed to meet such qualifications. |
| (4) | If any foreigner falling under the proviso to paragraph (3) is appointed as a lecturer, he/she shall undergo training for not less than one week, which is conducted by the head of the relevant international high school, within six months from the date of his/her appointment. |
| (5) | Foreign teachers referred to in paragraph (1) shall be contracted every five years and they may teach only languages of their home countries and subjects deemed necessary by the head of the international high school. The term of appointment for foreign lecturers under paragraph (2) shall be not more than one year and their term of appointment may, if necessary, be extended within three years. |
| (7) | The services of foreign teachers and lecturers shall be governed by their respective employment contracts. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 20-2 (Requirements, etc. for Establishment of Foreign Medical Institutions) |
| (1) | "Matters prescribed by Presidential Decree, such as the scale of capital, etc." referred to in Article 23 (1) 3 of the Act" refers to the following: <Amended by Presidential Decree No. 26157, Mar. 24, 2015> |
| 1. | The amount of capital shall be at least five billion won; |
| 2. | A cooperative system shall be established, such as the conclusion of a management treaty with a medical institution established and operated in accordance with foreign Acts; |
| 3. | Those with foreign doctor's or dentist's licenses under Article 23 (6) of the Act shall be secured more than the ratio prescribed by Ordinance of the Ministry of Health and Welfare. |
| (2) | Provisions concerning capital under the Commercial Act shall apply to matters concerning capital in paragraph (1) 1. |
| (3) | Necessary matters concerning the cooperative system under paragraph (1) 2 and the procedures for permitting the establishment of foreign medical institutions under Article 23 (1) of the Act shall be prescribed by Ordinance of the Ministry of Health and Welfare. |
[This Article Wholly Amended by Presidential Decree No. 23741, Apr. 20, 2012]
| Article 20-3 (Scope of Business Incidental to Medical Institutions) |
"Incidental business prescribed by Presidential Decree, such as establishment, operation, etc. of a therapeutic hot spring under Article 9 of the Hot Spring Act" in the subparagraphs of Article 23-2 of the Act means the following business: | 3. | Tourist accommodation business under Article 3 (1) 2 of the Tourism Promotion Act, tourist-use facility business under subparagraph 3 of the same paragraph and international conference service under subparagraph 4 of the same paragraph. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 20-4 (Requirements for Granting Permission to Engage in Casino Business for Foreign Investors) |
"Matters prescribed by Presidential Decree, such as the credit standing of investors, etc." in Article 23-3 (1) 3 of the Act means the following matters: <Amended by Presidential Decree No. 21765, Oct. 1, 2009; Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 24697, Aug. 27, 2013; Presidential Decree No. 26442 Jul. 24, 2015; Presidential Decree No. 28276, Sep. 5, 2017> | 1. | That any of the following items shall be met: |
| (a) | That the credit rating received from two or more credit rating companies referred to in the items of Article 6-5 (2) 1 or from an internationally accredited foreign credit rating agency shall be an investment-grade level or higher; |
| (b) | That a person who receives a notification of suitability pursuant to Article 20-6 (3), shall have fully invested the amount to be invested specified in the investment plans referred to in 20-5 (1) 3. |
| 2. | That the investment plan under Article 20-5 (1) 3 shall include matters prescribed in any of the following items: |
| (b) | Contents that a total of at least 300 million U.S. dollars shall be invested by no later than the time the commencement of casino business is reported under Article 20-7 (2) and investments are completed in compliance with the investment plan by not later than two years after the commencement of business; |
| 3. | That facilities to be used for business facilities under Article 20-7 (1), which fall under any of the following items shall be ready at the time permission for casino business is applied: |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 20-5 (Application, etc. for Permission to Engage in Casino Business) |
| (1) | Any person who intends to apply for permission to engage in casino business under Article 23-3 (2) of the Act shall submit an application (including an application via electronic documents) for permission to engage in foreigner invested casino business prescribed by Ordinance of the Ministry of Trade, Industry and Energy together with the following documents (including electronic documents) to the Minister of Culture, Sports and Tourism. In such cases, the Minister of Culture, Sports and Tourism shall verify a corporation registration certificate (limited to corporations) through common use of administrative information under Article 36 (1) of the Electronic Government Act: <Amended by Presidential Decree No. 22467, Nov. 2, 2010; Presidential Decree No. 24107, Sep. 21, 2012; Presidential Decree No. 24442, Mar. 23, 2013> |
| 3. | Investment plans (including financing plans and investment agreement specifying the project entity, location and size of the area for project, total project period and implementation schedule, project feasibility analysis, land use plan by purpose of use, size of facilities and placement plan, amount to be invested and time limit for investment, and other matters that the Minister of Culture, Sports and Tourism deems necessary); |
| 4. | Plans for operating the casino; |
| 5. | Articles of incorporation (limited to corporations). |
| (2) | When any person who has obtained permission to engage in casino business under Article 23-3 (1) of the Act intends to modify an investment plan under paragraph (1) 3, he/she shall consult with the Minister of Culture, Sports and Tourism. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 20-6 (Requests for Preliminary Review) |
| (1) | The Minister of Culture, Sports and Tourism may decide the following matters and publicly announce them to enable a person who intends to apply for permission for engagement in casino business under Article 23-3 (1) of the Act to request a preliminary review under Article 30 (1) of the Civil Petitions Treatment Act: <Amended by Presidential No. 26442, Jul. 24, 2015; Presidential Decree No. 26980, Feb. 12, 2016; Presidential Decree No. 28276, Sep. 5, 2017> |
| 2. | Number of businesses to be permitted; |
| 3. | Detailed procedure of preliminary review; |
| 4. | Other necessary matters for the sound operation of the casino business and the promotion of tourism business. |
| (2) | A person who intends to apply for a preliminary review shall submit the following documents to the Minister of Culture, Sports and Tourism: <Amended by Presidential No. 26442, Jul. 24, 2015> |
| 2. | Documents prescribed in each subparagraph of Article 20-5 (1) (excluding the documents proving that the person satisfies the requirements prescribed in subparagraph 1 and 3 of Article 20-4 from among documents referred to in Article 20-5 (1) 2); |
| 3. | Documents proving that the person satisfied any of the following items: |
| (a) | Documents proving that the person satisfies the requirements prescribed in subparagraph 1 of Article 20-4; |
| (b) | Documents proving that the person has deposited at least 40/100 of 500 million U.S. dollars under Article 23-3 (1) 1 of the Act in compliance with the public notice of the Minister of Culture, Sports and Tourism; |
| (c) | Documents proving that the person has financial ability to invest, such as affirmation certificates of loans or investments, etc. issued by a financial institute as prescribed and publicly notified by the Minister of Culture, Sports and Tourism. |
| (3) | Upon receipt of a request for preliminary review under paragraph (2), the Minister of Culture, Sports and Tourism shall review such request within 90 days and notify the result thereof: Provided, That when necessary to confirm the factual relationship, etc., the period may be extended within the limit of 30 days. <Amended by Presidential No. 26442, Jul. 24, 2015> |
| (4) | In making a notification of suitability as a result of preliminary review under paragraph (3), the Minister of Culture, Sports and Tourism may stipulate the following matters: <Amended by Presidential No. 26442, Jul. 24, 2015; Presidential No. 28276, Sep. 5, 2017> |
| 1. | The requester shall comply with the time limit for investment specified in the investment plans referred to in Article 20-5 (1) 3; |
| 2. | The requester shall acquire at least 2/3 of the private land located in the area for a project within two years from the date of receipt of the suitability notification, and shall secure ownership of or right to use state-owned land and public land; |
| 3. | The requester shall apply for a casino business within four years from the date of receipt of suitability after fulfilling the requirements under the subparagraphs of Article 23-3 (1) of the Act and the subparagraphs of Article 20-4: Provided, That the Minister of Culture, Sports and Tourism may extend the period for applying for permission where deemed necessary to smoothly proceed with a project within the time limit specified in any of the following cases: |
| (a) | Where investment is delayed due to natural disasters: the time delayed; |
| (b) | Where investment is delayed due to an order to suspend construction or any other orders issued by a court or an administrative agency: the time delayed; |
| (c) | Where an amount equivalent to 5/100 of the total project expenses is additionally invested: a half of the time for investment specified in the investment plans under Article 20-5 (1) 3; |
| (d) | Where the Minister of Culture, Sports and Tourism deems it necessary to extend the period for a project: four years (referring to the sum of the periods to be extended if two or more cases are deemed to be in need of extension of periods. |
| 4. | Where any content of the investment plans under Article 20-5 (1) 3 submitted at the time of preliminary review is to be modified, it shall be done within the scope classified as follows: Provided, That the project entity and the location of the area for project shall not be changed: |
| (a) | The scope of a decrease in the size of an area for a project or the size of an area for facility installment or the modification of the size of land subject to a land use plan by purpose of use shall not exceed 10/100; |
| (b) | The range of extension of the total project area or the decrease in total project costs shall not exceed 10/100; |
| 5. | The requested matter shall satisfy the criteria, procedure, and method for preliminary review publicly announced by the Minister of Culture, Sports and Tourism pursuant to subparagraph 5. |
| 6. | Other matters the Minister of Culture, Sports and Tourism deems necessary for verifying the compliance with the investment plans, securement of land and facilities, transparent management of investment fund, fulfillment of agreed matters in the course of review, etc. |
| (5) | Necessary matters concerning the criteria, method, and procedure for preliminary review other than those prescribed in paragraphs (1) through (4) shall be announced by the Minister of Culture, Sports and Tourism after hearing the opinions of the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (6) | Where a person in receipt of notification of suitability as a result of preliminary review fails to comply with the matters stipulated in the subparagraphs of paragraph (4), he/she shall receive a notification of suitability again as a result of preliminary review. |
| (7) | Upon receipt of a request for preliminary review under paragraph (2), the Minister of Culture, Sports and Tourism may have an agency deemed capable of performing affairs such as examination and analysis of submitted documents and verification of facts carry out such affairs. In such cases, the Minister shall subsidize the agency therefor. |
[This Article Newly Inserted by Presidential Decree No. 24107, Sep. 21, 2012]
| Article 20-7 (Places of Casino Business, Timing to Commence Business, etc.) |
| (2) | Any person who intends to commence casino business shall submit a report on the commencement of business prescribed by Ordinance of the Ministry of Trade, Industry and Energy (including reports in electronic documents), together with the following documents (including reports in electronic documents) to the Minister of Culture, Sports and Tourism, as prescribed in Article 23-3 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 2. | Documents evidencing that 300 million U.S. dollars or more have been invested in tourism business according to details of investment plans under Article 20-5 (1) 3. |
| (3) | Each person who has been granted permission to engage in casino business shall submit documents evidencing that 500 million U.S. dollars or more have been invested in tourism business to the Minister of Culture, Sports and Tourism according to details of investment plans under Article 20-5 (1) 3 within 30 days from the date two years have elapsed from the commencement of business. |
| (4) | Documents evidencing investment under paragraphs (2) 2 and (3) shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 21 (Retransmission of Foreign Broadcasts) |
The number of foreign broadcasts channels which any CATV broadcasting business may retransmit under Article 24 of the Act shall not exceed 30/100 of the television broadcasting channels, radio broadcasting channels, and data broadcasting channels under operation, respectively. [This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 21-2 (Standards, etc. for Supplying Rental Houses for Exclusive Use by Foreigners) |
| (1) | Any person who intends to lease a rental house for exclusive use by foreigners (hereinafter referred to as "rental house for use by foreigners") under Article 24-2 (1) of the Act (hereinafter referred to as "rental housing business operator") shall have any of the following persons as the other party to a lease contract: |
| 2. | Foreign-invested enterprises, foreign educational institutions and foreign medical institutions. |
| (2) | Each rental housing business operator shall select a lessee based on matters falling under any of the following subparagraphs, and determine the methods of selection in advance and obtain approval from the head of a free economic zone where a rental house concerned is located (hereafter referred to as "head of administrative body concerned" in this Article): |
| 1. | Any person falling under paragraph (1) 1: Period of residence in Korea and number of dependent family members; |
| 2. | Any person falling under paragraph (1) 2: Scale of investment, timing of investment and number of employees. |
| (3) | Each rental housing business operator shall calculate key money for lease or rent based on costs of construction of rental house exclusively for use by foreigners and its incidental facilities, the level of key money for lease or rent of neighboring areas of the relevant rental house exclusively for use by foreigners, depreciation costs, repair and maintenance costs, etc., and obtain approval from the head of the relevant administrative body in advance: Provided, That if a rental house exclusively for use by foreigners is built by receiving subsidies from the State or local governments or the Housing and Urban Fund under Article 9 of the Housing and Urban Fund Act, standards announced by the Minister of Trade, Industry and Energy shall apply. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26369, Jun. 30, 2015> |
| (4) | Where a rental housing business operator intends to convert a rental house exclusively for use by foreigners into the object subject to sale in lots after the lapse of ten years from the commencement date of rent, he/she shall prepare a plan for sale in lots by preferentially considering those who have resided in the rental house concerned at the time of conversion for sale in lots, and obtain approval from the head of the administrative body concerned. |
[This Article Newly Inserted by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 22 (Matters Subject to Deliberation and Resolution by Committee) |
| 1. | Matters concerning prevention of illegal circulation of foreign currencies in free economic zones; |
| 2. | Matters concerning prevention of rampant and unplanned development and measures to stabilize prices of real estate in free economic zones; |
| 3. | Matters concerning the criteria for installation, etc. for the structures within the sports facilities under Article 9-3 of the Act; |
| 5. | Other matters deemed necessary for improving management conditions and living environment for foreigners and publicly announced by the Committee. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 23 (Composition of Committee) |
| (1) | The Vice Minister of Strategy and Finance, the Vice Minister of Education, the Vice Minister of Science and ICT, the Vice Minister of Foreign Affairs, the Vice Minister of the Interior and Safety, the Vice Minister of Culture, Sports and Tourism, the Vice Minister for Agriculture, Food and Rural Affairs, the Vice Minister of Health and Welfare, the Vice Minister of Environment, the Vice Minister of Employment and Labor, the Vice Minister of Land, Infrastructure and Transport, the Vice Minister of Oceans and Fisheries, and the Vice Minister of SMEs and Startups shall be ex officio members provided for in Article 25 (5) of the Act. In such cases, in the case of a ministry which has at least two Vice Ministers, the Vice Minister designated by the head of the relevant ministry shall be such ex officio member. <Amended by Presidential Decree No. 22075, Mar. 15, 2010; Presidential Decree No. 22269, Jul. 12, 2010; Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28212, Jul. 26, 2017> |
| (2) | Commissioned members provided for in Article 25 (6) of the Act shall be commissioned from among experts in the fields of labor, the environment, foreign investment, logistics, urban policies, etc. which are all related to free economic zones. |
| (3) | The term of office for commissioned members under paragraph (2) shall be two years, who may be recommissioned only twice. <Amended by Presidential Decree No. 26716, Dec. 15, 2015> |
| (4) | Where the position of a commissioned member is vacant, a new member shall be commissioned to fill the vacancy and the term of his/her office shall be reckoned from the date on which he/she is commissioned. <Amended by Presidential Decree No. 26716, Dec. 15, 2015> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 23-2 (Exclusion of, Challenge to, and Abstention of Member) |
| (1) | Where a member of the Committee falls under any of the following cases, he/she shall be excluded from deliberation or resolution by the Committee: |
| 1. | Where a member or a member's current or previous spouse is the party (including the executives where the party is a legal person or an organization; hereinafter the same shall apply in this subparagraph and subparagraph 2) or the joint right holder or joint liability holder with the party to the relevant agenda; |
| 2. | Where a member is a current or previous family member of the party to the relevant agenda; |
| 3. | Where a member has testified for, stated, advised on, researched, provided service for, or appraised the relevant agenda; |
| 4. | Where a member or the member's company is a current or previous agent of the party to the relevant agenda. |
| (2) | Where there exists a ground not to expect fair deliberation or resolution by a member, the party to the relevant agenda may apply for a challenge to such member to the Committee, and the Committee shall adopt a resolution on such application. In such cases, the member subject to such application for a challenge shall not participate in the resolution. |
| (3) | Where a member falls under the grounds for exclusion prescribed in the subparagraphs of paragraph (1), he/she shall voluntarily refrain from deliberation on or resolution of the relevant agenda. |
[This Article Newly Inserted by Presidential Decree No. 26716, Dec. 15, 2015]
| Article 23-3 (Dismissal of Committee Member) |
Where a member under Article 25 (6) of the Act falls under any of the following cases, the chairperson may dismiss such member: | 1. | Where a member is no longer capable of performing duties due to physical or mental disability; |
| 2. | Where a member has committed a misdeed regarding his/her duties; |
| 3. | Where a member is deemed inappropriate as a member due to delinquency of duties, injury to dignity, or any other grounds; |
| 4. | Where a member falling under any of the subparagraphs of Article 23-2 (1) fails to refrain from deliberation or resolution; |
| 5. | Where a member expresses difficulty performing his/her duties. |
[This Article Newly Inserted by Presidential Decree No. 26716, Dec. 15, 2015]
| Article 24 (Operation of Committee) |
| (1) | The chairperson shall represent the Committee and exercise overall control over the Committee's affairs. |
| (2) | The vice chairperson shall assist the chairperson and perform the chairperson's duties when the chairperson is unable to perform his/her duties due to any unavoidable cause. |
| (3) | The chairperson shall convene meetings of the Committee and preside over such meetings. |
| (4) | Where the chairperson convenes a meeting of the Committee, he/she shall notify in writing each member of the date, venue, and objectives, etc. of the meeting by no later than three days prior to the meeting: Provided, That the same shall not apply to an emergency. |
| (5) | The Committee's meetings shall open with the attendance of a majority of all incumbent members and its resolution shall require the concurring vote of a majority of those present. |
| (6) | The Committee shall have one secretary in charge of administrative affairs and the secretary shall be appointed by the Minister of Trade, Industry and Energy from among public officials belonging to divisions prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (7) | Details necessary for the operation, etc. of the Committee, other than those prescribed in paragraphs (1) through (6) shall be determined by the chairperson upon resolution by the Committee. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 25 (Hearing of Opinion) |
| (1) | If necessary, the public official of any central administrative agency, who is not an ex officio member may attend any meeting of the Committee to state his/her opinion. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (2) | If deemed necessary for deliberation, the Committee may have the Mayor/Do Governor having jurisdiction over the relevant free economic zone and any other interested person appear at a meeting of the Committee to hear his/her opinion. |
| (3) | A Mayor/Do Governor may attend a meeting of the Committee to state his/her opinion on the designation, operation, etc. of the relevant free economic zone. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
Members and relevant experts who appear at any meeting of the Committee may be paid allowances within budgetary limits: Provided, That the same shall not apply to public officials who appear at any meeting of the Committee in direct connection with their official duties.
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 27 (Duties, etc.) |
| (1) | If deemed necessary to perform duties concerning the designation and operation of free economic zones, the Minister of Trade, Industry and Energy may request relevant administrative agencies, relevant institutions, organizations, etc. to dispatch their public officials, executive officers or employees. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 27-2 (Exclusion from Application of Special Cases concerning Handling of Administrative Affairs) |
| (1) | “Unit districts for development projects whose development and investment levels exceed the standards prescribed by Presidential Decree” in the main sentence of Article 27 (2) of the Act means unit districts for development projects where buildings approved for use under Article 22 of the Building Act are located in at least 90/100 of their prepared land area (excluding land for public facilities in accordance with the classification of prepared land by usage referred to in attached Table 1) due to development and investment in progress. |
| (2) | “Adjoining unit districts for development projects prescribed by Presidential Decree” in the proviso to Article 27 (2) of the Act means unit districts for development projects located in the same Si/Gun/Gu (referring to an autonomous Gu) publicly notified by the Minister of Trade, Industry and Energy as he/she deems it necessary to make a blanket request to exclude from application of special cases concerning the handling of administrative affairs in order to promote an efficient development of a free economic zone and convenience of its residents’ lives. |
| (3) | Where the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) requests exclusion from application of special cases concerning the handling of administrative affairs under Article 27 (2), he/she shall prepare and submit to the Minister of Trade, Industry and Energy a written request containing the following information: |
| 1. | Current status including the name, location, and area of the relevant unit district of a development project; |
| 2. | Current status including the name, location, and area of a free economic zone in which the relevant unit district of a development project is located; |
| 3. | Current status of approval of the use of buildings existing in the prepared land under paragraph (1); |
| 4. | Outcomes of consultation with the competent Mayor/Do Governor; |
| 5. | Other matters deemed necessary by the Minister of Trade, Industry and Energy to determine whether to exclude from application of special cases concerning the handling of administrative affairs. |
| (4) | Where the Minister of Trade, Industry and Energy receives a written request under paragraph (3), he/she shall undergo deliberation and resolution by the Committee within three months after the receipt of the written request and notify the head of a Si/Gun/Gu of such result, except in extenuating circumstances. |
[This Article Newly Inserted by Presidential Decree No. 28091, Jun. 2, 2017]
| Article 28 (Administrative Bodies in Free Economic Zones) |
| (1) | An administrative body under Article 27-2 (1) of the Act (hereinafter referred to as "free economic zone authority") shall perform administrative affairs under Article 27 of the Act and Article 31 (3) of this Decree, or administrative affairs delegated by the State or a City/Do in accordance with municipal ordinances or rules. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (2) | Where a Mayor/Do Governor intends to establish a free economic zone authority, he/she shall determine the timing for establishing such free economic zone authority, taking into account the level of development of the relevant free economic zone, administrative demand arising in the relevant free economic zone, the increase in the number of permanent residents in the relevant free economic zone, etc. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (3) | Where a Mayor/Do Governor intends to appoint the commissioner of a free economic zone authority under Article 27-2 (2) of the Act (hereinafter referred to as "commissioner of a free economic zone authority"), he/she shall give priority to considering any of the following persons: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| 1. | Any person who has experience in taking charge of duties related to free economic zones; |
| 2. | Any person who has experience in developing cities, logistics or social infrastructure; |
| 3. | Any person who has experience in inducing foreign-invested enterprises or foreign capital. |
| (4) | If necessary for the development projects in the relevant free economic zone, the commissioner of a free economic zone authority may request relevant administrative agencies or relevant institutions and organizations to dispatch their public officials, executives or employees. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| (5) | The Minister of Trade, Industry and Energy may subsidize following expenses to a free economic zone authority pursuant to Article 27-2 (5) of the Act: <Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 24852, Nov. 20, 2013> |
| 1. | Expenses incurred in operating a free economic zone authority, expenses incurred in inducing investment from domestic and foreign enterprises, expenses incurred in conducting research and development, etc.; |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 28-2 (Delegation, etc. of Appointment Authority) |
| (1) | A Mayor/Do Governor shall delegate the following authority to the commissioner of a free economic zone authority under Article 27-4 (1) of the Act: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24852, Nov. 20, 2013> |
| 1. | Rights to transfer public officials in general services belonging to free economic zone authorities; |
| 2. | Rights to appoint public officials in technical and contractual services belonging to free economic zone authorities. |
| (2) | A Mayor/Do Governor shall have prior consultations with the commissioner of a free economic zone authority before transferring or dispatching public officials in general services under his/her control to the free economic zone authority. <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 28-3 (Accounting and Finance of Free Economic Zone Authorities) |
| (1) | The revenues and expenses of a free economic zone authority under Article 27-6 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Revenues of a free economic zone authority: |
| (a) | Subsidies provided by the State in accordance with the Act; |
| (b) | Shares borne by a local government or transferred money from general accounts; |
| (c) | Project profits, etc. accrued in the course of executing a project for a free economic zone, such as revenues from the sales of land, etc.; |
| (d) | Rents of public facilities located in a free economic zone and other use fees, charges, revenues, etc.; |
| (e) | Other items the Minister of Trade, Industry and Energy deems necessary to be included in the revenues for the promotion of a free economic zone; |
| 2. | Expenses of a free economic zone authority: |
| (a) | Project expenses necessary to develop a free economic zone under the Act and to induce investment, such as expenses incurred in installing infrastructure, etc.; |
| (b) | Operating expenses of a free economic zone authority; |
| (c) | Other expenses the Mayor/Do Governor deems necessary to be included in the expenses for the promotion of a free economic zone. |
| (2) | Detailed methods of management and other necessary matters concerning the accounting and finance under paragraph (1) shall be determined by the following classifications: |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 29 (Functions, etc. of Ombudsmen) |
| (1) | Each ombudsman provided for in Article 28 (1) of the Act shall be commissioned by a Mayor/Do Governor from among persons who have profound experience in the business of foreign investment and are proficient in foreign languages. |
| (2) | The term of office for each ombudsman shall be three years, who may be reappointed three times only. |
| (3) | Each ombudsman shall perform the following duties: |
| 1. | Helping to solve the problems facing foreigners and foreign-invested enterprises located in a free economic zone; |
| 2. | Gathering information on managerial difficulties facing foreign-invested enterprises located in a free economic zone; |
| 3. | Gathering information on problems associated with living conditions facing foreigners located in a free economic zone; |
| 4. | Devising ways to solve problems referred to in subparagraphs 2 and 3, and proposing them to administrative agencies concerned. |
| (4) | Each ombudsman may request relevant administrative agencies or organizations for cooperation in performing his/her duties under paragraph (3) and in such cases, the relevant administrative agencies or organizations shall, upon receipt of such request, notify the ombudsman of their opinions within seven days from the date of the request. |
| (6) | Each ombudsman shall analyze, each quarter, his/her track records of resolving difficulties and report the outcomes thereof to the Committee within one month after completion of each quarter. |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 29-2 (Assessment of Outcomes of Projects by Free Economic Zone) |
To assess the outcomes of projects in each free economic zone pursuant to Article 28-3 of the Act, the Minister of Trade, Industry and Energy shall determine guidelines for detailed matters, such as criteria for, timing of, methods, etc. of assessment, following deliberation and resolution thereon by the Committee. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> [This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
| Article 30 (Inappropriate Types of Business, etc.) |
| (1) | "Types of business or facilities prescribed by Presidential Decree" in Article 29 (1) of the Act means any of the following types of business or facilities: |
| 1. | Types of business or facilities that undermine a comfortable residential environment; |
| 2. | Types of business or facilities that are harmful to the quality of air, soil and marine environment; |
| 3. | Types of business or facilities that may impede the inducement of foreign investments by harming corporate environments or living conditions; |
| 4. | Types of business or facilities that are determined to be significantly low in its contribution to the development of the national economy in technology transfer, job creation, etc. |
| (2) | Where the Minister of Trade, Industry and Energy orders the relevant enterprise to suspend its business or close relevant facilities in accordance with Article 29 (2) of the Act, he/she may arrange any industrial complex as an alternative location for the type of business or facilities which can be located in such industrial complex, after having consultations with the authorized manager or the management institution of such industrial complex provided for in Article 30 of the Industrial Cluster Development and Factory Establishment Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 31 (Delegation of Authority) |
| (1) | The heads of central administrative agencies shall delegate the following authority to Mayors/Do Governors under Article 30 (1) of the Act: <Amended by Presidential Decree No. 23068, Aug. 5, 2011> |
| 1. | Public announcement in the Official Gazette of the details of modification of development plans for free economic zones under Article 7-2 (1) or (2) of the Act and of the details of modification under paragraph (3) of the same Article, which concern insignificant matters under paragraph (4) of the same Article; |
| 2. | through 6. Deleted; <by Presidential Decree No. 23068, Aug. 5, 2011> |
| 8. | and 9. Deleted; <by Presidential Decree No. 23068, Aug. 5, 2011> |
| 10. | Public announcement of any inappropriate type of business, etc. under Article 29 (1) of the Act, business suspension of any inappropriate type of business, etc. or an order to close any facility under paragraph (2) of the same Article, hearings provided for in paragraph (3) of the same Article and vicarious execution provided for in paragraph (4) of the same Article. |
| (2) | When a Mayor/Do Governor has performed duties delegated under paragraph (1), he/she shall send copies of the relevant documents to the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | Each Mayor/Do Governor shall delegate the following authority to the commissioner of a free economic zone authority pursuant to Article 30 (3) of the Act: <Amended by Presidential Decree No. 23068, Aug. 5, 2011; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Request for modification of a development plan for a free economic zone under the latter part of Article 7 (1) of the Act; |
| 2. | A route of request for modification of a development plan by a development project operator under Article 7 (2) of the Act; |
| 3. | Consultation on the development of an area for which a development plan for a free economic zone has yet to be established under the proviso to Article 7-3 of the Act; |
| 5. | Permission for the alteration in the form and quality of land, the construction of a building, the installation of structures, etc. under Article 7-5 (1) of the Act; |
| 9. | Consultation with the Minister of Trade, Industry and Energy or the heads of relevant ministries under Article 8-3 (3) of the Act; |
| 13. | Public announcement of the revocation of designation of a development project operator and substitute designation under Article 8-5 (4) of the Act; |
| 19. | Consultation with a development project operator and reflecting the consulted matters into an implementation plan under Article 9 (5) of the Act; |
| 24. | Work completion inspections under Article 14 (1) of the Act and permission for use of land, etc. before a work completion inspection under the proviso to paragraph (3) of the same Article (including prior consultation with the heads of relevant administrative agencies); |
| (4) | In handling administrative affairs under subparagraphs 8, 12, 16, and 27 among administrative affairs delegated under paragraph (3), a Mayor/Do Governor may present his/her opinions to the commissioner of a free economic zone authority in advance. <Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011> |
[This Article Wholly Amended by Presidential Decree No. 21656, Jul. 30, 2009]
| Article 31-2 (Processing of Personally Identifiable Information) |
| Article 32 (Re-Examination of Regulations) |
| (1) | The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every three years from each base date (referring to the period that ends on the day before the base date of every third year), and take measures for improvement, etc.: <Amended by Presidential Decree No. 25840, Dec. 9, 2014> |
| 1. | Insignificant matters of development plans for free economic zones under Article 5-2 (4): January 1, 2014; |
| 2. | Acts required to obtain permission or permission for change in districts of a development project under Article 6-2: January 1, 2014; |
| 3. | Scope of development project operators under Article 6-5: January 1, 2014; |
| 4. | Ratio of re-investment of development gains under Article 11-5: January 1, 2014; |
| 5. | Requirements for establishment of foreign medical institutions under Article 20-2: January 1, 2014; |
| 6. | Requirements for permission for casino business for foreign investors: January 1, 2014; |
| 7. | Methods for selecting a lessee concerning rental houses for foreigners' exclusive use, standards for calculating security deposits or rents, conversion for sale in lots by giving priority to considering those who have resided in the relevant rental house: January 1, 2014. |
| (2) | The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every two years from each base date (referring to the period that ends on the day before the bate of every second year), and take measures for improvement, etc.: <Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014> |
| 1. | Matters to be included in an application for approval for implementation plans under Article 8 and documents attached thereto: January 1, 2015; |
| 2. | Procedures for granting approval for implementation plans under Article 9: January 1, 2015; |
| 3. | Matters subject to consultations in granting approval for implementation plans under Article 9-2: January 1, 2015. |
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 33 (Imposition and Collection of Administrative Fines) |
[This Article Newly Inserted by Presidential Decree No. 23068, Aug. 5, 2011]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on July 1, 2003. |
| (2) | Deleted. <by Presidential Decree No. 18816, Apr. 28, 2005> |
ADDENDA <Presidential Decree No. 18548, Sep. 17, 2004>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 18816, Apr. 28, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measures concerning Restriction on Acts within Districts of Development Projects) Any person who has commenced activities under the amended provisions of Article 8-2 (1) of the amended Act by obtaining permission or authorization (including cases where it is not necessary to obtain permission or authorization under the related statutes) under the related statutes as at the time the amended Act enters into force, under Article 4 (2) of the Addenda to the amended Act from among the Act on Designation and Management of Free Economic Zones (Act No. 7349) (hereinafter referred to as the "amended Act") shall file a report with the competent Mayor/Do Governor on plans for relevant activities and the status of progress within three months from the date on which this Decree enters into force. |
ADDENDA <Presidential Decree No. 20529, Jan. 8, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Insignificant Matters, etc.)
The amended provisions of Articles 6, 9 (2), 10, 12-3, and 31 shall apply beginning with the first development plan for a free economic zone or the first implementation plan that is requested for modification or applied for approval of modification after this Decree enters into force.
ADDENDUM <Presidential Decree No. 20655, Feb. 29, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 20937, Jul. 24, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Calculation of Changed Size)
The amended provisions of Articles 6 (3) and 10 (4) shall apply beginning with the first development plan for a free economic zone or the first implementation plan that is requested for modification or applied for approval of modification after this Decree enters into force. Article 3 (Applicability concerning Liability for Installation Expenses of Electricity Facilities)
The amended provisions of subparagraph 3 of Article 14-2 shall also apply to cases where the relation of liability for installment expenses for main electricity facilities has not been established as at the time this Decree enters into force. [This Article Newly Inserted by Presidential Decree No. 21656, Jul. 30, 2009]
ADDENDA <Presidential Decree No. 21185, Dec. 24, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 21626, Jul. 7, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 21656, Jul. 30, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 22467, Nov. 2, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 22815, Apr. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 2011.
Articles 2 through 10 Omitted.
ADDENDA <Presidential Decree No. 23068, Aug. 5, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 28-3 shall enter into force on October 5, 2011. Article 2 (Applicability concerning Publication of Designation of Free Economic Zones)
A free economic zone designated pursuant to the former provisions as at the time this Decree enters into force shall be deemed designated pursuant to the amended provisions of subparagraph 4 of Article 4. Article 3 (Applicability concerning Designation of Development Project Operators)
The amended provisions of Article 6-5 shall apply beginning with the first application for a development project operator, which is publicly announced after this Decree enters into force. Article 4 (Applicability concerning Documents Accompanied with Written Applications for Approval of Implementation Plans)
The amended provisions of Article 8 (2) 7 shall apply beginning with the first implementation plan, the approval or approval of modification of which is filed after this Decree enters into force. Article 5 (Applicability concerning Re-Investment of Development Gains)
The amended provisions of Article 11-5 shall apply beginning with the first implementation plan, the approval of which is filed after this Decree enters into force.
ADDENDA <Presidential Decree No. 23718, Apr. 10, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 15, 2012. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDUM <Presidential Decree No. 23741, Apr. 20, 2012>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 20-2 shall enter into force on June 1, 2012.
ADDENDA <Presidential Decree No. 23966, Jul. 20, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 22, 2012. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 24107, Sep. 21, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Modification of Insignificant Matters of Development Plans for Economic Fee Zones)
The amended provisions of Article 5-2 shall apply to the plans for economic free zones requested to modify after this Decree enters into force. Article 3 (Applicability concerning Designation of Development Project Operators)
The amended provisions of Article 6-5 shall apply to the invitations for public participation for development project operators publicly notified after this Decree enters into force. Article 4 (Applicability to Standards for Supply Price of Prepared Land)
The amended provisions on the standards for supply price of prepared land under attached Table 1 shall apply to the prepared land supplied in accordance with the implementation plans approved or approved for modification after this Decree enters into force.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 24688, Aug. 13, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Standards for Prices of Land for Industrial Facilities)
The amended provisions of attached Table 1 shall apply to the implementation plans the approvals of which are applied after this Decree enters into force.
Article 3 (Transitional Measures concerning Re-investment of Development Gains)
Notwithstanding the amended provisions of Article 11-5, implementation plans approved (including the approval of the modification thereof; hereinafter the same shall apply) or the approval of which are applied for before this Decree enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 24697, Aug. 27, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 29, 2013. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Presidential Decree No. 24852, Nov. 20, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 12, 2013.
Articles 2 through 9 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Presidential Decree No. 25700, Nov. 4, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Re-investment of Development Gains)
When approval for implementation plans (including approval for change; hereinafter the same shall apply) is granted under Article 9 (1) of the Act or an application for approval for implementation plans is filed before this Decree enters into force, the former provision shall govern, notwithstanding the amended provisions of Article 11-5. Article 3 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That amended provisions of Presidential Decree which have been promulgated before this Decree enters into force, but the enforcement date of which has not arrived, among amended provisions of Presidential Decree under Article 5 of the Addenda, shall enter into force on the date the relevant Presidential Decree enters into force, respectively. Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26157, Mar. 24, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 16 shall enter into force on July 1, 2015. Article 2 (Transitional Measures concerning Period for Consultations regarding Legal Fiction of Authorization or Permission)
The period for submission of opinions by the heads of relevant administrative agencies, upon receipt of a request for consultations from the Mayor/Do Governor before this Decree enters into force, shall be governed by the previous provisions, notwithstanding the provisions of Article 12-2.
ADDENDA <Presidential Decree No. 26369, Jun. 30, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2015.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 26442, Jul. 24, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26716, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Consecutive Appointment of Member)
The amended provisions of Article 23 (3) shall also apply to the members appointed under Article 23 (2) before this Decree enters into force.
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. 26980, Feb. 12, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 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. 27960, Mar. 27, 2017>
This Decree shall enter into force on March 30, 2017. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 28091, Jun. 2, 2017>
This Decree shall enter into force on June 3, 2017.
ADDENDA <Presidential Decree No. 28212, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 28276, Sep. 5, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Credit Rating Requirement for Permission to Engage in Casino Business)
The amended provisions of Article 20-4 (1) shall also apply to a person who receives a notification of suitability of a preliminary review before this Decree enters into force. Article 3 (Applicability to Extension of Periods for Requesting Permission for Casino Business)
The amended provisions of Article 20-6 (4) 3 and Article 20-6 (4) 4 (b) shall also apply to a person who receives a notification of suitability of a preliminary review before this Decree enters into force.