REGIONAL DEVELOPMENT ASSISTANCE ACT
Act No. 12737, jun. 3, 2014
Amended by Act No. 12738, jun. 3, 2014
Act No. 13380, jun. 22, 2015
Act No. 13805, Jan. 19, 2016
Act No. 13797, Jan. 19, 2016
Act No. 14345, Dec. 2, 2016
Act No. 15489, Mar. 20, 2018
Act No. 15607, Apr. 17, 2018
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to stimulate regional economies and to contribute to the balanced development of national land by comprehensively and systematically providing support thereto so that regional development projects are efficiently implemented by developing regional growth potential and by accelerating public and private investment.
The terms used in this Act shall be defined as follows: <Amended by Act No. 14345, Dec. 2, 2016>
| 1. | The term "regional development plan" means a plan formulated pursuant to Article 7 to comprehensively and systematically develop an underdeveloped area having growth potential, or hub or surrounding areas; |
| 2. | The term "regional development project zone" means a zone designated and publicly notified pursuant to Articles 11 and 16 to promote a regional development project; |
| 3. | The term "regional development project" means a project to be implemented in a regional development project zone with approval of an implementation plan pursuant to Article 23 to create growth dynamics and to facilitate self-sufficient development; |
| 4. | The term "leading investment district" means a district designated and publicly notified pursuant to Article 45 to be developed as a hub for growth of the relevant region and to particularly stimulate private investment; |
| 6. | The term "hub area" means an area having a strong base of human resources and material resources necessary for performing the functions of industries, culture, tourism, transportation, logistics, etc. and thus a center linked with surrounding areas; |
| 7. | The term "regional stimulation area" means an underdeveloped area requiring special consideration for regional development from the State and a local government as the area's level of development is substantially lower than other areas and the backwardness thereof is huge, which is designated by the Minister of Land, Infrastructure and Transport pursuant to Article 67. |
| Article 3 (Responsibilities of State and Local Governments) |
| (1) | The State may formulate and promote comprehensive policies for regional development and prepare support measures. |
| (2) | A local government shall formulate and implement plans and policies for regional development with participation of residents and through mutual cooperation with the State and other local governments. |
| Article 4 (Scope of Application) |
This Act shall apply to areas other than the Seoul Metropolitan area (referring to the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act; hereinafter the same shall apply) and the Jeju Special Self-Governing Province: Provided, That underdeveloped areas in the Seoul Metropolitan area shall also be subject to this Act.
| Article 5 (Relationship with Other Acts) |
Where exceptions apply to restrictions on regional development plans, regional development project zones and regional development projects, this Act shall have priority over other Acts: Provided, That where other Acts have more lenient provisions than those of this Act, such other Acts shall apply.
| Article 6 (Relationship with Other Plans) |
CHAPTER II ACCELERATION OF REGIONAL DEVELOPMENT PROJECTS
Section 1 Formulation and Details of Regional Development Plans
| Article 7 (Formulation of Regional Development Plans) |
| (1) | Where a Metropolitan City Mayor, Special Self-Governing City Mayor or Do Governor (hereinafter referred to as "Mayor/Do Governor") intends to promote any of the following regional development projects, he/she shall formulate a regional development plan. In such cases, where the area for which a regional development plan is to be formulated extends over the boundaries of at least two jurisdictional areas of Metropolitan Cities, Special Self-Governing Cities and Dos (hereinafter referred to as "City/Do"), the relevant Mayors and Do Governors shall jointly formulate such plan: |
| 1. | A regional development project to comprehensively and systematically develop underdeveloped areas linking an underdeveloped area and its surrounding areas; |
| 2. | A regional development project to comprehensively and systematically develop a hub area and its surrounding areas as a strategic base for regional development or to develop a specialized industry linking the hub area and its surrounding areas; |
| 3. | A regional development project for intensive linkage and development for a special social and economic purpose of the State, which is prescribed by Presidential Decree. |
| (2) | Where necessary to promote regional development projects under paragraph (1) by linking them with national policy projects that have substantial influence on the national economy or where deemed necessary to promote regional development projects under paragraph (1) at the request of the heads of relevant central administrative agencies, the Minister of Land, Infrastructure and Transport may formulate regional development plans. |
| (3) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor formulates a regional development plan pursuant to paragraph (1) or (2), he/she shall hear the opinions of the heads of Sis, Guns or Gus (referring to the heads of autonomous Gus; hereinafter the same shall apply), residents and specialists in advance, as prescribed by Presidential Decree. |
| (4) | Except as otherwise expressly prescribed in paragraphs (1) through (3), details of the standards necessary for formulating, implementing, etc. regional development plans shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 8 (Approval for Regional Development Plans) |
| (1) | Where a Mayor/Do Governor intends to formulate or amend (excluding modifying insignificant matters prescribed by Presidential Decree) a regional development plan, he/she shall obtain approval from the Minister of Land, Infrastructure and Transport: Provided, That where insignificant matters prescribed by Presidential Decree are modified as follows, he/she shall pre-consult with the Minister of Land, Infrastructure and Transport: <Amended by Act No. 14345, Dec. 2, 2016> |
| 1. | Where he/she receives funding from the State regarding the regional development plan; |
| 2. | Where the scale of development following approval of the regional development plan exceeds that prescribed by Presidential Decree. |
| (2) | The Minster of Land, Infrastructure and Transport may have a Mayor/Do Governor who files an application for approval pursuant to paragraph (1) submit an examination report on the necessity, relevance, etc. of the relevant regional development plan, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (3) | Where the Minster of Land, Infrastructure and Transport intends to formulate or amend a regional development plan pursuant to Article 7 (2) or to approve a formulated, amendment to a, regional development plan pursuant to paragraph (1), he/she shall submit the plan to the National Land Policy Committee under Article 26 of the Framework Act on the National Land (hereinafter referred to as "National Land Policy Committee") for deliberation after consulting with the heads of relevant central administrative agencies. |
| (4) | Where the National Land Policy Committee deliberates on the formulation and amendment and approval of a formulated, or amendment to a, regional development plan pursuant to paragraph (3), it shall consider the following matters: |
| 1. | The plan shall not be similar to or overlap with other plans or projects under other Acts: Provided, That where such are deemed to achieve economies of scale or effects of integration, this shall not apply; |
| 2. | The plan shall contribute to stimulating regional economy and creating growth dynamics; |
| 3. | The plan shall be realizable within the planned period; |
| 4. | The planned regional development shall be sustainable; |
| 5. | Necessary funds and financing plans shall be reasonable. |
| (5) | Except in extenuating circumstance, the heads of central administrative agencies in receipt of a request for consultation under paragraph (3) shall present opinions within 20 days from the date such request is received. In such cases, if they fail to submit opinions within such period, consultation shall be deemed held. |
| Article 9 (Details of Regional Development Plans) |
A regional development plan shall include the following matters:
| 1. | Name of the plan, planned area and scope; |
| 2. | Objectives of the plan and basic policies; |
| 3. | General direction-setting for development; |
| 4. | Matters concerning strategies for development by linking relevant local governments; |
| 5. | Matters concerning strategies differentiated from existing plans formulated pursuant to other statutes; |
| 6. | Matters concerning attracting enterprises and accelerating investment; |
| 7. | Matters concerning necessary financial resources and financing plans; |
| 8. | The following matters necessary based upon the characteristics of relevant regions: |
| (a) | Matters concerning reorganizing and expanding social overhead capital facilities; |
| (b) | Matters concerning expanding manufacturing infrastructure, developing a regional specialized industry, etc.; |
| (c) | Matters concerning developing historical, cultural and tourism resources; |
| (d) | Matters concerning improving environmental conservation, employment, education and residential environment; |
| 9. | Other matters necessary for regional development, prescribed by Presidential Decree. |
| Article 10 (Restrictions on Formulation of Regional Development Plans) |
Where deemed necessary for balanced regional development, the Minister of Land, Infrastructure and Transport may determine the total size of the areas subject to regional development plans by City/Do and the total number of regional development plans that can be formulated, as prescribed by Presidential Decree.
Section 2 Regional Development Project Zones
| Article 11 (Designation of Regional Development Project Zones) |
| (1) | Where a Mayor/Do Governor intends to promote a regional development project in any of the following areas, he/she may, directly or as proposed under Article 12, designate a regional development project zone. In such cases, if a regional development project zone extends over the boundaries of at least two Cities or Dos, the relevant Mayors or Do Governors shall jointly designate the zone: |
| 1. | An area deemed to require promotion of a regional development project based upon a regional development plan; |
| 2. | A small-scale area which, though not included in an area to be developed based upon a regional development plan, fuels no fear of sprawl because it has infrastructure, such as roads, water supply facilities, sewerage, etc., or because an infrastructure plan is formulated, etc., which meets the standards prescribed by Presidential Decree. |
| (2) | Where deemed necessary to promote a regional development project by linking it with a national policy project, etc. having substantial influence on the national economy or to promote a regional development project at the request of the head of a relevant central administrative agency, the Minister of Land, Infrastructure and Transport may directly designate a regional development project zone. |
| (3) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor (hereinafter referred to as "designating authority") designates a regional development project zone pursuant to paragraph (1) or (2), he/she shall consider the following matters: |
| 2. | The regional development project shall be publically beneficial, contributing to regional development, such as increase in employment, stimulation of the regional economy, etc.; |
| 3. | The regional development project shall be environmentally sustainable; |
| 4. | The regional development project shall suit the characteristics and circumstances of the area; |
| 5. | The regional development project, investment plan, etc. shall be viable; |
| 6. | The requirements prescribed by Presidential Decree shall be met. |
| (4) | Where a designating authority intends to designate a regional development project zone, it shall, in advance, hear the full opinion of a Mayor/Do Governor or the head of a Si, Gun or Gu having jurisdiction over the area. |
| (5) | Where an area to be designated as a regional development project zone pursuant to paragraphs (1) and (2) constitutes a natural park prescribed by Presidential Decree in the park area specified in subparagraph 5 of Article 2 of the Natural Parks Act, such area may be designated as a regional development project zone only if park facilities the types and size of which are prescribed by Presidential Decree, such as recreational boat marinas, trails, etc., are installed in such area. |
| (6) | Where a designating authority intends to designate a regional development project zone pursuant to paragraph (1) or (2); or to change the designated regional development project zone, it shall prepare a regional development project plan or a modified regional development project plan including the following matters: Provided, That the matters under subparagraphs 10 and 11 may be included therein after a regional development project zone is designated: |
| 1. | Name, location and size of a regional development project zone; |
| 2. | Objectives of designating a regional development project zone and period during which a regional development project is implemented; |
| 3. | Matters concerning the implementer of a regional development project and methods of implementing such project; |
| 4. | Environmental conservation plans and pollution prevention plans; |
| 5. | Plans for accommodating population, transportation and land utilization; |
| 6. | Where necessary to divide a regional development project zone or integrate regional development project zones under Article 13, plans for such division or integration; |
| 7. | Plans to build major infrastructure, such as roads, water supply facilities, sewerage, etc.; |
| 8. | Financing plans and annual investment plans; |
| 9. | Where health, medical, educational and welfare facilities are to be built, plans to build such facilities; |
| 10. | Matters concerning compensation plans and supply of developed land (including undeveloped land to be supplied under Article 33 (1) and direction-setting for development); |
| 11. | Where land, etc. is to be expropriated or utilized pursuant to Article 27, detailed list; |
| 12. | Where infrastructure is to be built in an area outside of the regional development project zone, a plan to finance building such infrastructure; |
| 13. | Matters concerning business feasibility; |
| 14. | Other matters necessary for designating a regional development project zone. |
| (7) | Where a designating authority intends to designate a regional development project zone, it shall submit the case to the National Land Policy Committee or a regional development coordination committee under Article 42 for deliberation. The same shall also apply to any change to the designated regional development project zone: Provided, That this shall not apply to any modification to insignificant matters prescribed by Presidential Decree. |
| (8) | Where a Mayor/Do Governor intends to designate a regional development project zone in any of the following cases, he/she shall pre-consult with the Minister of Land, Infrastructure and Transport. The same shall apply to any change to a designated regional development project zone: |
| 1. | Where he/she intends to receive the State’s financial support; |
| 2. | Where the scale of the regional development project zone to be developed following designation exceeds the scale prescribed by Presidential Decree. |
| (9) | Except as otherwise expressly prescribed in paragraphs (1) through (8), the details of standards, procedures, etc. necessary for designating or changing a regional development project zone shall be prescribed by Presidential Decree. |
| Article 12 (Proposal to Designate and Modify Regional Development Project Zones) |
| (1) | The head of a Si, Gun or Gu and a person falling under Article 19 (1) 2 through 6 may propose a Mayor/Do Governor to designate a regional development project zone or to modify such designation. |
| (2) | A person who proposes a Mayor/Do Governor to designate a regional development project zone or to change the designation of a regional development project zone shall submit a regional development project plan or an amended regional development project plan including the matters referred to in subparagraphs of Article 11 (6). |
| Article 13 (Division or Integration of Regional Development Project Zones) |
| (1) | Where deemed necessary to efficiently promote a regional development project; to enhance the feasibility of such project; or to maintain, etc. public facilities specified in subparagraph 13 of Article 2 of the National Land Planning and Utilization Act, a designating authority may designate a regional development project zone after dividing it into at least two regional development project zones or integrating at least two regional development project zones situated far apart into a regional development project zone. |
| (2) | Where a designating authority designates a regional development project zone after division or integration pursuant to paragraph (1), matters necessary for such procedures, methods, etc. shall be prescribed by Presidential Decree. |
| Article 14 (Hearing Opinion of Residents, etc.) |
| (1) | Where a designating authority intends to designate a regional development project zone, it shall directly hear opinions of the residents, relevant specialists, etc. through public inspection or public hearing; or it shall have the head of a Si (including the Special Metropolitan City Mayor if the designating authority is the Minister of Land, Infrastructure and Transport), Gun or Gu hear such opinion. The same shall also apply to any change to the regional development project zone (excluding modification to insignificant matters prescribed by Presidential Decree). |
| (2) | Matters necessary for the procedures for the public inspection under paragraph (1), methods thereof, or for the timing for public hearing, procedures for holding a public hearing, public announcement, etc. shall be prescribed by Presidential Decree. |
| Article 15 (Pre-consultation, etc.) |
| (1) | Where a designating authority intends to designate a regional development project zone or to change the designation, it shall pre-consult with the heads of relevant administrative agencies on the regional development project plan or the amended regional development project plan including the matters referred to in subparagraphs of Article 11 (6): Provided, That this shall not apply to any modification to insignificant matters prescribed by Presidential Decree. |
| (3) | Except as otherwise expressly provided for in relevant statutes, such as the Environmental Impact Assessment Act, the period for consultation under paragraph (1) shall not exceed 20 days; where deemed necessary by a designating authority upon request from the head of a relevant administrative agency, the period may be extended only once by up to ten days. In such cases, where no opinion is submitted within the period for consultation, consultation shall be deemed held. |
| Article 16 (Public Notification of Designation of Regional Development Project Zones) |
| (1) | Where a designating authority designates a regional development project zone or changes the designation, it shall publicly notify the details in the official gazette or public report as prescribed by Presidential Decree, and send a copy of relevant documents to the head of a Si (including the Special Metropolitan City Mayor if the designating authority is the Minister of Land, Infrastructure and Transport), Gun or Gu having jurisdiction over the relevant regional development project zone. |
| (2) | A designating authority or the head of a Si, Gun or Gu shall make the details of public notification available for public inspection under paragraph (1) for at least 14 days. |
| (3) | Where a regional development project zone is designated and publicly notified, the following matters approved, determined, designated, formulated, etc. after consulting with the heads of relevant administrative agencies shall be deemed approved, determined, designated, formulated, etc. on the date of public notification according to the details of public notification under paragraph (1): <Amended by Act No. 15607, Apr. 17, 2018> |
| Article 17 (Restrictions on Engaging in Activities, etc.) |
| (1) | A person who intends to engage in activity prescribed by Presidential Decree, such as constructing a building, installing a structure, changing the form and quality of land, collecting earth and stones, dividing land, stacking goods, cutting or planting bamboo or trees, etc., shall obtain permission from the Seoul Special Metropolitan City Mayor, or the head of a Si, Gun or Gu. The same shall apply to any modification to permitted matters. |
| (2) | Notwithstanding paragraph (1), any of the following activities may be performed without permission: |
| 1. | Any activity performed as part of emergency measures need to recover from or to cope with a disaster; |
| 2. | Any activity not interfering with attaining the objective of designating a regional development project zone, which is prescribed by Presidential Decree. |
| (3) | Pursuant to relevant statutes, a person who commences construction works or a project for any activity that has been already permitted pursuant to paragraph (1) at the time of designating or publicly notifying a regional development project zone, or that does not require permission, may continue such construction works or project after submitting a report thereon to the Special Metropolitan City Mayor or the head of s Si, Gun or Gu, as prescribed by Presidential Decree. |
| (4) | The Special Metropolitan City Mayor or the head of s Si, Gun or Gu may order a person who violates paragraph (1) to reinstate the relevant area, and if such person who is issued such order fails to comply therewith, the Mayor, etc. may reinstate such area in lieu of such person according to the Administrative Vicarious Execution Act. |
| Article 18 (Rescission of Designation of Regional Development Project Zones) |
| (1) | Where an application for approval of an implementation plan under Article 22 is not filed within three years from the date a regional development project zone is publicly notified, designation of the regional development project zone shall be deemed rescinded on the day following the date on which three years have passed therefrom. |
| (2) | In any of the following cases, a designating authority may rescind the designation of a regional development project zone after deliberation by the National Land Policy Committee or a regional development coordination committee under Article 42: Provided, That in cases falling under subparagraph 3, deliberation may be omitted: |
| 1. | Where construction works or a project do not commence within two years from the day approval of an implementation plan under Article 23 is publicly notified; |
| 2. | Where the designating authority deems that the objective of designating a regional development project zone is not attainable; |
| 3. | Where completion of construction (in cases of a project implemented by a land substitution method, disposition of land substitution) is publicly announced pursuant to Article 39. |
| (3) | Where the designation of a regional development project zone is rescinded pursuant to paragraphs (1) and (2), the matters approved, determined, designated, formulated, etc. under subparagraphs of Article 16 (3) or authorized, permitted, etc. under Article 24 shall be deemed reinstated before the regional development project zone is designated or shall be abrogated: Provided, That where the designation of a regional development project zone is rescinded pursuant to paragraph (2) 3, such matters shall not be deemed reinstated or abrogated. |
| (4) | Where the designation of a regional development project zone is rescinded pursuant to paragraphs (1) and (2), Article 16 (1) and (2) shall apply mutatis mutandis. |
Section 3 Designation of Regional Development Project Implementers, Approval of Implementation Plans, Etc.
| Article 19 (Designation of Implementers) |
| (1) | Any person who implements a regional development project (hereinafter referred to as "implementer") shall be designated by a designating authority from among the following persons based upon the standards and procedures prescribed by Presidential Decree, such as public bid: Provided, That a person falling under subparagraph 4 may be designated only if the entire regional development project is implemented by a land substitution method: |
| 1. | The State or a local government; |
| 3. | A local government-invested public corporation (hereinafter referred to as "local government-invested public corporation") established pursuant to the Local Public Enterprises Act; |
| 4. | A cooperative (hereafter in this Article, referred to as "cooperative") established by an owner of land located within the regional development project zone (a person who obtains a license to reclaim public waters under Article 28 of the Public Waters Management and Reclamation Act shall be construed as an owner of such public waters; and the public waters as land); |
| 5. | A private investor who meets the requirements prescribed by Presidential Decree, such as capital; |
| 6. | A corporation in which at least two out of the persons provided for in subparagraphs 1 through 3 and 5 invests to implement a regional development project. |
| (2) | Where a designating authority designates an implementer pursuant to paragraph (1), it shall consider the following matters: |
| 1. | Financial soundness and financing capacity; |
| 2. | Experience in implementing similar development projects; |
| 3. | Other matters publicly notified by the Minister of Land, Infrastructure and Transport as the designating authority deems necessary for seamlessly implementing the regional development project. |
| (3) | Where a designating authority designates an implementer pursuant to paragraph (1), it may preferentially designate a person who proposes to designate a regional development project zone pursuant to Article 12. |
| (4) | Where a designating authority designates an implementer pursuant to paragraph (1), it shall publicly notify the details in the official gazette or public report. |
| (6) | An implementer falling under paragraph (1) 1 through 3 or 6 (applicable only where a person falling under subparagraphs 1 through 3 of the same paragraph invests in excess of 50/100) may have a third person implement part of the regional development project on his/her behalf where deemed necessary for efficiently implementing the regional development project. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| (7) | Where an implementer intends to have part of a regional development project implemented by a vicarious implementer pursuant to paragraph (6), he/she shall obtain approval from the designating authority for matters prescribed by Presidential Decree, such as selecting a vicarious implementer, scope of development projects to be vicariously implemented , size of land so allowed. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| (8) | Where an implementer selects a vicarious implementer, it shall do so via a competitive bidding process. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| (9) | Other matters necessary for implementing part of regional development projects vicariously shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| Article 19-2 (Designation, etc. of General Project Managers) |
| (1) | To efficiently implement a regional development project, a designating authority may designate a person falling under Article 19 (1) 2 and 3 as the general project manager of the regional development project. |
| (2) | A general project manager designated pursuant to paragraph (1) may provide the following support: |
| 1. | Formulating a regionally specialized strategy, examining a long-term regional development plan, etc.; |
| 2. | Examining formulation, amendment, etc. of a regional development plan and implementation plan; |
| 3. | Examining a financing plan and detailed investment plan included in a regional development plan and implementation plan; |
| 4. | Analyzing appropriateness when designating an implementer; |
| 5. | Process management and coordination planning between respective regional development plans; |
| 6. | Analyzing feasibility of a project requiring creation of sites; |
| 7. | Analyzing appropriateness concerning supply of land; |
| 8. | Other support prescribed by Presidential Decree. |
| (3) | Except as otherwise expressly prescribed in paragraphs (1) and (2), matters necessary for designating, operating, etc. a general project manager shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 14345, Dec. 2, 2016]
| Article 20 (Revocation of Designation of Implementers, Substitute Designation, etc.) |
| (1) | In any of the following cases, a designating authority may revoke designation of an implementer: |
| 1. | Where an implementer fails to commence construction works or a project within two years after obtaining approval of an implementation plan under Article 23 or the regional development project is noticeably behind the schedule of the regional development project promotion plan; |
| 2. | Where the objective of a regional development project is deemed unattainable due to bankruptcy, insolvency or similar reasons. |
| (2) | Where a designating authority revokes designation of an implementer pursuant to paragraph (1), it may designate a substitute implementer. In such cases, Article 19 shall apply mutatis mutandis to designating a substitute implementer. |
| (3) | A substitute implementer designated pursuant to paragraph (2) shall succeed to the status of the former implementer regarding the designation of a regional development project zone and approval of an implementation plan. |
| (4) | Where a designating authority revokes designation of an implementer or designates a substitute implementer pursuant to paragraphs (1) and (2), it shall publicly notify the details in the official gazette or public report. |
| (5) | A substitute implementer designated pursuant to paragraph (2) shall, without delay, commence negotiating purchase of the land the former implementer has purchased. |
| (6) | Where no agreement is reached through negotiation under paragraph (5) or agreement is impossible, the designating authority may order the former implementer to sell the land purchased by him/her for the relevant regional development project to the substitute implementer designated pursuant to paragraph (2). In such cases, the designating authority shall notify the substitute implementer of such fact. |
| (7) | Where a substitute implementer designated pursuant to paragraph (2) is notified of an order to sell land under paragraph (6), he/she shall, without delay, negotiate the purchase of such land with the former implementer. |
| (8) | The standard amount of negotiated purchase under paragraph (7) shall be calculated by aggregating the land purchase price and an amount calculated by multiplying the land purchase price by the legal interest rate under Article 379 of the Civil Act: Provided, That where the above mentioned amount calculated exceeds the market price, the market price shall prevail. |
| (10) | Where a designating authority issues a sale order under paragraph (6) and the former implementer accrues a profit (referring to the amount calculated by subtracting the land purchase price, land creation cost and incidental expenses prescribed by Presidential Decree from the sale price) after the former implementer sells the land, the designating authority shall redeem such amount. |
| (11) | Where a former implementer fails to pay the redemption amount imposed pursuant to paragraph (10), the designating authority shall collect the amount as national taxes or local taxes in arrears are collected. |
| Article 21 (Entrustment of Implementation of Regional Development Projects) |
| (1) | Pursuant to Presidential Decree, an implementer may entrust the State, local government, public institution or local government-invested public corporation prescribed by Presidential Decree with business affairs relating to the construction of ports, railroads and public facilities prescribed by Presidential Decree and reclamation of public waters. |
| (2) | Pursuant to Presidential Decree, an implementer may entrust a relevant local government, public institution or local government-invested public corporation prescribed by Presidential Decree with business affairs such as conducting a basic study, purchasing land, compensating loss, relocating residents, etc. |
| (3) | Where an implementer entrusts duties pursuant to paragraphs (1) and (2), he/she shall pay an entrustment fee equivalent to the rate prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to an entrusted person. |
| Article 22 (Application for Approval of Implementation Plans) |
An implementer shall prepare an implementation plan stating the following matters and file an application for approval (excluding where the State or a local government is an implementer) with a designating authority: <Amended by Act No. 13880, Jun. 22, 2015>
| 1. | The name (in the case of a corporation, name of the corporation and its representative) and address of the implementer; |
| 2. | The name and objective of the project, location and size of land for the project and period for implementing the project; |
| 3. | A map indicating the land for the project; |
| 4. | A floor plan of the planned project and summary design drawing; |
| 5. | A plan to use and sell developed land, etc.; |
| 6. | An annual investment plan and financing plan; |
| 7. | Other matters prescribed by Presidential Decree. |
| Article 23 (Approval of Implementation Plans) |
| (1) | A designating authority shall approve an implementation plan after consulting with the heads of relevant administrative agencies and deliberating by the National Land Policy Committee or a regional development coordination committee under Article 42: Provided, That if the State or a local government is an implementer and the head of a relevant central administrative agency or local government directly formulates an implementation plan, the implementer shall consult with the designating authority after consulting with the heads of relevant administrative agencies, and such consultation shall be deemed approval of the implementation plan. <Amended by Act No. 13880, Jun. 22, 2015> |
| (2) | Paragraph (1) shall apply mutatis mutandis to amending or abrogating an approved implementation plan: Provided, That this shall not apply to any modification to insignificant matters prescribed by Presidential Decree. |
| (3) | Where a designating authority approves an implementation plan (including where the head of a central administrative agency or local government directly formulates an implementation plan pursuant to the proviso to paragraph (1)), the designating authority shall publicly notify such fact in the official gazette or public report as prescribed by Presidential Decree, and send a copy of relevant documents to the implementer and the head of a Si (including the Special Self-Governing City Mayor if the designating authority is the Minister of Land, Infrastructure and Land), Gun or Gu. In such cases, the designating authority or the head of Si, Gun or Gu shall make the implementation plan available for public inspection for at least 14 days. <Amended by Act No. 13880, Jun. 22, 2015> |
| Article 24 (Authorization, Permission, etc. Deemed Granted) |
| (1) | Where a designating authority approves an implementation plan or approves amendment to the implementation plan pursuant to Article 23; or the head of a central administrative agency or local government consults with the head of a relevant administrative agency pursuant to paragraph (3) on any details of the relevant implementation plan relating to permission, approval, evaluation, authorization, report, license, registration, consultation, designation, rescission, disposition, etc. (hereinafter referred to as "authorization, permission, etc.") under the attached Table when the head of a central administrative agency or local government formulates the implementation plan, such authorization, permission, etc. shall be deemed granted; where an implementation plan is publicly notified pursuant to Article 23 (3), authorization, permission, etc. under relevant Acts shall be deemed publicly notified or announced. <Amended by Act No. 13880, Jun. 22, 2015> |
| (2) | A person who intends to obtain deemed authorization, permission, etc. shall submit relevant documents prescribed by relevant Acts when he/she files an application for approval of an implementation plan. |
| (3) | Where a designating authority approves an implementation plan stating any matter in attached Table, or the head of a central administrative agency or local government formulates such implementation plan, the designating authority shall pre-consult with the head of a relevant administrative agency. In such cases, the head of a relevant administrative agency shall submit opinion within 20 days from the date he/she receives a request for consultation; if no opinion is submitted within such period, consultation shall be deemed held. <Amended by Act No. 13880, Jun. 22, 2015> |
| (4) | Where a designating authority approves an implementation plan or the head of a central administrative agency or the head of a local government formulates an implementation plan, the designating authority may hold a conference with authorization and permission on its agenda in which relevant administrative agencies participate to process authorization, permission, etc. <Amended by Act No. 13880, Jun. 22, 2015> |
| (5) | The composition, function, and operation of a conference with authorization and permission on its agenda under paragraph (4) and other necessary matters shall be prescribed by Presidential Decree. |
| (6) | Where authorization, permission, etc. granted under Acts are deemed granted pursuant to paragraph (1), license fees or charges shall be exempt. |
| Article 25 (Designation En Bloc of Regional Development Project Zones, etc. and Approval thereof) |
| (1) | To expedite a regional development project, a person falling under Article 19 (1) 1 through 6 may submit documents necessary for designating a regional development project zone under Article 11, designating an implementer under Article 19 and approval of an implementation plan under Article 23 en bloc to the designating authority (excluding where the designating authority is an implementer) and obtain relevant designation and approval. <Amended by Act No. 14345, Dec. 2, 2016> |
| (2) | Where a designating authority intends to grant designation and approval en bloc pursuant paragraph (1), it shall grant designation and approval following deliberation by the National Land Policy Committee or a regional development coordination committee under Article 42 after undergoing necessary procedures, such as gathering consensus from residents; examining requirements or considerations relating to designation and approval; consulting with relevant administrative agencies. <Amended by Act No. 14345, Dec. 2, 2016> |
| (3) | Notwithstanding paragraph (2), where a designating authority is an implementer, designation and approval shall be deemed granted en bloc when the procedures necessary for designation and approval under paragraph (2) are completed. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| (4) | Article 16 (1) and (2) shall apply mutatis mutandis to publicly notifying designation and approval en bloc under paragraph (2). |
Section 4 Implementation, etc. of Regional Development Projects
| Article 26 (Methods of Implementing Regional Development Projects) |
| (1) | A regional development project may be implemented by an implementer by acquiring and using land, etc. in a regional development project zone through negotiation; by expropriating or using land, etc.; by employing a land substitution; or by combining such methods. |
| (2) | Except as otherwise expressly provided for in this Act, the Urban Development Act shall apply mutatis mutandis where a regional development project is fully or partially implemented through land substitution. |
| Article 27 (Expropriation, etc. of Land, etc.) |
| (1) | Where necessary to implement a regional development project, an implementer may expropriate or use land, articles or rights (hereinafter referred to as "land, etc.") under Article 3 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects: Provided, That an implementer under Article 19 (1) 5 and 6 (excluding where a person under subparagraphs 1 through 3 of the same paragraph invests in excess of 50/100) may expropriate and use land, etc. only if deemed necessary to implement a regional development project for public benefit as determined by the Minister of Land, Infrastructure and Transport. <Amended by Act No. 13880, Jun. 22, 2015> |
| (2) | An implementer under the proviso to paragraph (1) shall purchase land equivalent to 2/3 the size of land for a regional development project and obtain approval from at least 1/2 the total number of owners of land and owners of buildings each. In such cases, the cut-off date for determining whether requirements for approval are met shall the date of designation or public notification of the regional development project zone; if the implementer acquires land or buildings on or after such cut-off date, he/she shall be included in the total number of owner(s) of land and buildings necessary for determining whether requirements for approval are met and deemed an assenter, and other matters necessary for requirements for approval, such as methods of calculating the number of assenters and procedures for approval shall be prescribed by Presidential Decree. <Amended by Act No. 13880, Jun. 22, 2015> |
| Article 28 (Establishment, etc. of Divided Surface Rights over Public Facilities) |
| (1) | Where use of a portion below or above of the surface of public facilities, such as roads, railroads, urban parks, etc., is necessary for a regional development project, the implementer may consult with the management agency or owner of the public facilities under a premise of establishing or transferring a divided surface right over the relevant portion below or above the surface of the public facilities. |
| (2) | Where agreement to use the portion below or above the surface of public facilities is reached between an implementer and the management agency or owner of the public facilities pursuant to paragraph (1), a divided surface right shall be established for the implementer or a divided surface right shall be transferred thereto. |
| (4) | Matters necessary for procedures for registration for a divided surface right established pursuant to paragraphs (2) and (3) shall be prescribed by Supreme Court Regulations. |
| (5) | The period during which a divided surface right under paragraphs (2) and (3) continues to exist may be while the relevant facility exists notwithstanding Article 281 of the Civil Act. |
| Article 29 (Relocation Measures, etc.) |
| Article 30 (Issuance of Land Bonds) |
| (1) | Where a landowner agrees, the implementer may issue bonds (hereinafter referred to as "land bond") that pay part of the land price, etc. with land or buildings developed through a regional development project as prescribed by Presidential Decree: Provided, That where the implementer falls under Article 19 (1) 4 through 6, he/she may issue land bonds only if repayment of the land bonds is guaranteed by a finance company, etc. prescribed by Presidential Decree. |
| (2) | Where an implementer (excluding where a designating authority is an implementer) intends to issue land bonds pursuant to paragraph (1), he/she shall formulate a plan to issue land bonds and obtain approval from the designating authority in advance. |
| (3) | Methods, procedures, and conditions for issuing land bonds and other necessary matters shall be prescribed by Presidential Decree. |
| Article 31 (Advance Money) |
| (1) | An implementer may, in advance, obtain all or part of the price of land, a building, structure, etc. developed through a regional development project (hereinafter referred to as "developed land, etc.") or undeveloped land under Article 33 (1) from a person who intends to obtain or use developed land, etc., as prescribed by Presidential Decree. |
| (2) | Where an implementer (excluding cases in which a designating authority is an implementer) intends to obtain all or part of the price of developed land, etc., in advance, he/she shall obtain approval from the designating authority. |
| Article 32 (Use and Sale of Developed Land, etc.) |
| (1) | Where an implementer intends to use, lease or sell developed land, etc., he/she shall do so according to the plan to use and sell developed land, etc. specified in the implementation plan. |
| (2) | The purpose of, procedures and methods for using, leasing or selling developed land, etc. under paragraph (1), eligibility for renting or purchasing developed land, etc. and other necessary matters shall be prescribed by Presidential Decree. |
| Article 33 (Supply, etc. of Undeveloped Land) |
| (1) | Where necessary for the nature-friendly, complex or three-dimensional development of part of a regional development area, a person who falls under any of Article 19 (1) 1 through 3 or 6 (applicable only where a person falling under Article 19 (1) 1 through 3 invests in excess of 50/100) may, with approval of the designating authority, supply some lots of undeveloped land (hereinafter referred to as "undeveloped land") within the regional development project site to any of the following persons. In such cases, the percentage of undeveloped land within the regional development project zone shall be prescribed by Presidential Decree: |
| 1. | The State or a local government; |
| 4. | A person selected in a bidding process implemented by the State or a local government for complex development, etc.; |
| 5. | A person who intends to directly use undeveloped land for a school site, factory site, etc. |
| (2) | Where an implementer submits an application for approval to a designating authority to supply undeveloped land pursuant to paragraph (1), he/she shall formulate an undeveloped land supply plan and submit it with the application. The same shall apply to any modification to the formulated supply plan. |
| (3) | An undeveloped land supply plan under paragraph (2) shall contain matters concerning a person who is supplied with and develops undeveloped land (hereinafter referred to as "undeveloped land developer" in this Article), details of supply of undeveloped land, etc. |
| (4) | Where an implementer concludes a supply contract with an undeveloped land developer according to the direction-setting for development under Article 11 (6) 10 and details of approval and a supply plan under paragraphs (1) and (2), he/she shall obtain a detailed plan from the undeveloped land developer and incorporate it in the implementation plan under Article 22. |
| (5) | Where a designating authority grants approval pursuant to paragraph (1), it may attach implementation conditions, such as development densities of building-to-land ratio, floor area ratio, etc., size and placement of land by use, building of infrastructure, and traffic management plans. |
| (6) | No undeveloped land developer (excluding the State or a local government) shall sell undeveloped land for a period prescribed by Presidential Decree not exceeding ten years: Provided, That this shall not apply where approval is obtained by a designating authority in advance, as prescribed by Presidential Decree, such as housing for relocation, public and cultural facilities. |
| (7) | In any of the following cases, a designating authority may revoke approval for supply of undeveloped land; or request an implementer to expedite development, reinstate undeveloped land, compensate for loss, rescind a contract to supply undeveloped land, or take other necessary measures: |
| 1. | Where an implementer fails to use land according to a plan to supply undeveloped land under paragraph (2); |
| 2. | Where an undeveloped land developer fails to implement a project according to the detailed plan under paragraph (4); |
| 3. | Where an implementer or undeveloped land developer fails to meet the implementation conditions under paragraph (5). |
| (8) | In any of the following cases, an implementer may rescind a contract to supply undeveloped land as prescribed by Presidential Decree: |
| 1. | Where an undeveloped land developer fails to commence construction works within the deadline specified in the detailed plan; |
| 2. | Where an undeveloped land developer delays implementation of a project past the deadline specified in the detailed plan after construction works commence; |
| 3. | Where an undeveloped land developer sells the entire or part of land supplied to him/her to a third party without obtaining consent from the implementer; |
| 4. | Where the supply contract under paragraph (4) is breached, such as a failure to use undeveloped land for the purpose specified in the detailed plan. |
| (9) | Matters necessary for the standards for selecting an undeveloped land developer, standards and procedures for supplying undeveloped land, supply price, scope of duties of an implementer and undeveloped land developer, methods of concluding a contract, etc. shall be prescribed by Presidential Decree. |
| Article 34 (Basic Inspection, etc.) |
| (1) | To formulate a regional development plan under Article 7, to designate a regional development project zone under Article 11 and to formulate an implementation plan under Article 22, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or an implementer may conduct an inspection or land survey as prescribed by Presidential Decree regarding impact on the population, economy, society, culture, land use, environment, transportation, housing, natural ecology and scenery. |
| (2) | Any person who intends to conduct an inspection or land survey pursuant to paragraph (1) may request the heads of relevant administrative agencies, public institutions or other relevant institutions to submit necessary data. In such cases, the heads of institutions in receipt of such request shall comply therewith, except in extenuating circumstances. |
| (3) | Where deemed necessary for conducting an inspection or land survey under paragraph (1), the Minister of Land, Infrastructure and Transport, Mayor/Do Governor or an implementer may enter a third party's land, use his/her land for storing materials or as temporary passageways, and change or eliminate bamboo, trees, soil, stones or other obstacles. |
| (5) | An implementer may request a designating authority to provide information necessary for proposing designation of a regional development project zone and for formulating an implementation plan. In such cases, the designating authority shall comply with the request, except in extenuating circumstances. |
| (6) | An implementer shall use the information received pursuant to paragraph (5) only for the purpose of proposing designation of a regional development project zone and for formulating an implementation plan. |
| (7) | Where an implementer provides information he/she received to a third party or uses it for a purpose other than its original purpose in violation of paragraph (6), the designating authority shall order the implementer to return or destroy the information or take other necessary measures. |
| Article 35 (Compensation for Losses Incurred by Entry to Land, etc.) |
| (2) | Articles 14, 15, 61, 63 through 65, 67, 68, 71 through 73, 75, 75-2, 76, 77 and 78 (5), (6) and (9) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis to the standards for compensation under paragraph (1). |
| Article 36 (Jurisdiction, etc. of Public Facilities) |
| (1) | Where an implementer installs a new public facility or a public facility substituting for an existing public facility through a regional development project, Articles 65 and 99 of the National Land Planning and Utilization Act shall apply mutatis mutandis to the jurisdiction of such public facility. In such cases, an implementer falling under Article 19 (1) 1 through 3 shall be deemed an implementer who is an administrative agency. |
| (2) | An implementer may request a person to be the management agency of a public facility pursuant to paragraph (1) to jointly inspect the public facility within 60 days before the period for implementation expires according to the implementation plan approved pursuant to Article 23. In such cases, the person in receipt of such request shall comply therewith, except in extenuating circumstances. |
| (3) | An implementer and a person to be the management agency of a public facility pursuant to paragraph (1) shall complete a joint inspection under paragraph (2) before the period for implementing a project approved pursuant to Article 23 expires: Provided, That this shall not apply where any extenuating circumstances exist which prevents the joint inspection within the period. |
| Article 37 (Restrictions on Sale of National Land and Public Land) |
| (1) | Land located in a regional development project zone, owned by the State or a local government and required for the regional development project shall not be sold for a purpose other than its original purpose. |
| (2) | Property located in a regional development project zone, owned by the State or a local government and required for the regional development project, may be sold by negotiated contract to the implementer, notwithstanding the State Property Act and the Public Property and Commodity Management Act. In such cases, the designating authority shall pre-consult with the heads of relevant administrative agencies regarding the discontinuation of use or sale of the property. |
| (3) | The heads of relevant administrative agencies in receipt of a request under the latter part of paragraph (2) shall discontinue to use the property, sell the property or take other necessary measures within 60 days from receipt of the request. |
Section 5 Completion Inspection, etc.
| Article 38 (Completion Inspection) |
| (1) | When an implementer (excluding an implementer who is a designating authority; hereinafter the same shall apply in this Article) completes construction works under a regional development project, he/she shall prepare a construction completion report and undergo a completion inspection. |
| (2) | A designating authority shall, without delay, conduct a completion inspection upon receipt of a construction completion report under paragraph (1). In such cases, if necessary for efficient completion inspection, the designating authority may request a relevant administrative agency, public institution, research institute, specialized institute, etc. to conduct a completion inspection. |
| (3) | A designating authority may request the head of a national agency, local government or public institution who is to acquire or manage a public facility stated in a construction completion report to participate in the completion inspection, and the person in receipt of such request shall comply therewith, except in extenuating circumstances. |
| (4) | Where necessary to efficiently implement a regional development project, an implementer may undergo a completion inspection under paragraph (1) on the completed part of construction works under the regional development project even before such works are fully completed. |
| Article 39 (Public Announcement of Construction Completion) |
| (1) | Where a designating authority deems that a regional development project is completed as specified in the implementation plan following the completion inspection under Article 38, it shall issue a construction completion certificate to the implementer and publicly announce the construction completion; where the regional development project is not completed as specified in the implementation plan, it shall, without delay, take necessary measures, such as supplementary construction works. |
| (2) | Where a designating authority is an implementer, and the implementer completes construction works under a regional development project, it shall publicly announce the construction completion. In such cases, if necessary to efficiently implement the regional development project, the designating authority may publicly announce the completed part of construction works under the regional development project before such works are fully completed. |
| Article 40 (Deemed Authorization, Permission, etc. Following Construction Completion) |
| (1) | Where a designating authority consults with the head of a relevant administrative agency regarding completion inspection, completion authorization, etc. subject to authorization, permission, etc. deemed granted pursuant to Article 24 when the completion inspection is conducted pursuant to Article 38 (2) or construction completion is publicly announced pursuant to Article 39, such completion inspection shall be deemed conducted, or completion authorization, etc. shall be deemed granted. |
| (2) | Where an implementer (excluding an implementer who is a designating authority) intends to be deemed to have undergone completion inspection or completion authorization, etc. pursuant to paragraph (1), he/she shall submit relevant documents under relevant Acts, together with an application for a completion inspection under Article 38 (1). |
| (3) | Where a designating authority conducts a completion inspection under Article 38 (2) or publicly announces construction completion under Article 39, and where the details thereof correspond to the completion inspection, completion authorization, etc. subject to authorization, permission, etc. deemed granted pursuant to Article 24, the designating authority shall pre-consult with the heads of relevant administrative agencies. |
| Article 41 (Use of Developed Land, etc. before Completion) |
Before a completion inspection or public announcement of construction completion under Article 38 or 39 is conducted or made, developed land, etc. shall not be used: Provided, That this shall not apply where permission for use is obtained from a designating authority as prescribed by Presidential Decree, such as where no impediment to the project, etc. remains.
Section 6 Regional Development Coordination Committee, etc.
| Article 42 (Regional Development Coordination Committee) |
| (1) | To deliberate on matters concerning a regional development project, such as designating a regional development project zone, each City/Do shall have a regional development coordination committee. |
| (2) | A regional development coordination committee shall deliberate on the following matters: |
| 1. | Matters concerning designating a regional development project zone by a Mayor/Do Governor and granting approval of an implementation plan for the zone; |
| 2. | Matters concerning examining and coordinating similarities and overlap with other plans and projects implemented in an area for which a regional development plan is established; |
| 3. | Matters for which the State’s financial support is necessary, such as building infrastructure necessary for a regional development project, and the amount of and timing for financial support; |
| 4. | Other matters prescribed by Presidential Decree. |
| Article 43 (Composition, etc. of Regional Development Coordination Committees) |
| (1) | A regional development coordination committee shall consist of not more than 20 members including a chairperson and a vice chairperson. |
| (2) | A Mayor/Do Governor shall become the chairperson of a regional development coordination committee; and a person designated by the chairperson from among members shall become vice chairperson. |
| (3) | The members of a regional development coordination committee shall be appointed or commissioned by the chairperson from among persons with abundant knowledge and experience. |
| (4) | Except as otherwise expressly prescribed in paragraphs (1) through (3), matters necessary for establishing, operating, etc. a regional development coordination committee shall be prescribed by Presidential Decree. |
| Article 44 (Comprehensive Regional Development Support Centers) |
| (1) | A Mayor/Do Governor may assist in performing regional development duties for a regional development project zone and a leading investment district; and shall establish a comprehensive regional development support center in the relevant City/Do. |
| (2) | A comprehensive regional development support center shall assist in performing the following duties: |
| 1. | Matters concerning formulating a regional development plan under Article 7; |
| 2. | Matters concerning designating a regional development project zone under Article 11; |
| 3. | Matters concerning formulating, and granting approval of, implementation plans under Articles 22 through 24; consulting on deemed authorization, permission, etc.; |
| 4. | Matters concerning deliberation by a regional development coordination committee under Article 42; |
| 5. | Matters concerning applications for designation of leading investment districts under Article 45; |
| 6. | Matters concerning providing information on regional development and managing an integrated regional development information network in the relevant area under Article 57; |
| 7. | Matters concerning evaluating the outcomes of implementing a regional development plan under Article 66; |
| 8. | Matters concerning authorization and permission for investment in a regional development project zone and a leading investment district, and resident enterprises ’construction, taxation, civil petition, etc.; |
| 9. | Matters concerning implementing a regional development project. |
| (3) | Except as otherwise expressly prescribed in paragraphs (1) and (2), matters necessary for establishing, operating, etc. a comprehensive regional development support center shall be prescribed by Presidential Decree. |
Section 7 Designation, etc. of Leading Investment Districts
| Article 45 (Designation, etc. of Leading Investment Districts) |
| (1) | Upon application of the head of a central administrative agency or a Mayor/Do Governor, the Minister of Land, Infrastructure and Transport may designate an area which needs to be developed as a hub for the growth in the relevant region or which particularly needs to attract more private investment as a leading investment district based upon the following matters; or may change or rescind the designation. In such cases, a regional development project zone shall be deemed designated, or the designation shall be deemed modified or rescinded, notwithstanding Article 11 (1) 1: <Amended by Act No. 13880, Jun. 22, 2015> |
| 1. | Infrastructure, such as an intercity transportation network, etc., shall be fully built, or building such infrastructure shall be possible; |
| 2. | Growth potential in the area's specialized industry, culture, tourism, etc., shall be excellent; |
| 3. | The expected size of investment or job creation shall meet the requirements prescribed by Presidential Decree; |
| 4. | The area shall meet the requirements prescribed by Presidential Decree, which can be readily developed as a hub for growth or in which it is easy to stimulate private investment. |
| (2) | Where the head of a central administrative agency or a Mayor/Do Governor applies for designation of a leading investment district pursuant to paragraph (1), he/she shall submit the examined opinion of a specialized evaluation institution designated pursuant to Article 65 (2). |
| (3) | Where the Minister of Land, Infrastructure and Transport intends to designate a leading investment district pursuant to paragraph (1); or change or rescind the designation, he/she shall submit the case to the Land Policy Committee for deliberation after consulting with the head of a relevant central administrative agency: Provided, That this shall not apply to any modification to insignificant matters prescribed by Presidential Decree. <Amended by Act No. 14345, Dec. 2, 2016> |
| (4) | Except as otherwise expressly prescribed in paragraphs (1) through (3), matters necessary for designating a leading investment district, and changing and rescinding the designation shall be prescribed by Presidential Decree. |
| (5) | Where the Minister of Land, Infrastructure and Transport designates a leading investment district pursuant to paragraph (1); or changes or rescinds the designation, he/she shall publicly notify such fact in the official gazette as prescribed by Presidential Decree, and send a copy of relevant documents to a Mayor/Do Governor or the head of a Si, Gun or Gu having jurisdiction over the relevant leading investment district. |
| (6) | A Mayor/Do Governor or the head of a Si, Gun or Gu in receipt of a copy of relevant documents pursuant to paragraph (5), shall make it available for public inspection for at least 14 days. |
| (7) | Where a designating authority which is an implementer intends to obtain en bloc the designation of an implementer under Article 19 and approval of an implementation plan under Article 23 when a leading investment district is designated under paragraph (1), Article 25 shall apply mutatis mutandis. <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| (8) | Where an implementer is designated or an implementation plan is approved as prescribed by relevant statutes regarding the following development projects for leading investment districts designated under paragraph (1) (limited to where consultation with the Minister of Land, Infrastructure and Transport is completed), an implementer shall be deemed designated under Article 19 or an implementation plan shall be deemed approved under Article 23: <Newly Inserted by Act No. 14345, Dec. 2, 2016> |
| Article 46 (Legal Fiction Following Designation, etc. of Leading Investment Districts) |
| (1) | Where a leading investment district is designated and publicly notified pursuant to Article 45, the following designation, etc. shall be deemed granted if the Minister of Land, Infrastructure and Transport has pre-consulted on the following matters with the heads of relevant administrative agencies: <Amended by Act No. 14345, Dec. 2, 2016> |
| 4. | Approval, determination, designation, formulation, etc. falling under Article 16 (3) 1 through 14. |
| (2) | A person who intends to be deemed designated, etc. under paragraph (1) shall submit relevant documents prescribed by relevant Acts when he/she applies for the designation of a leading investment district. |
| (3) | Where the Minister of Land, Infrastructure and Transport intends to designate a leading investment district, he/she shall pre-consult on the matters falling under paragraph (1) with the heads of relevant administrative agencies. In such cases, the heads of relevant administrative agencies shall submit opinions within 20 days from the date such request is received; and if no opinion is submitted within such period, consultation shall be deemed held. |
| Article 47 (Special Cases concerning the National Land Planning and Utilization Act) |
Notwithstanding Articles 36, 77 and 78 of the National Land Planning and Utilization Act, where deemed necessary to accelerate the complex and three-dimensional development of leading investment districts, the Minister of Land, Infrastructure and Transport may convert a leading investment district to a special-purpose area as prescribed by Presidential Decree so that high density development becomes possible or building-to-land ratio and floor area ratio can be mitigated.
| Article 48 (Special Cases concerning the Building Act) |
| (1) | Where deemed necessary for a regional development project, the Minister of Land, Infrastructure and Transport may designate part of a leading investment district as a special construction zone under Article 69 of the Building Act. |
| (3) | Notwithstanding Article 70 of the Building Act, the Minister of Land, Infrastructure and Transport may permit the construction of buildings by an implementer falling under Article 19 (1) 5 or 6 within a special construction zone. |
| Article 49 (Special Cases concerning Supply of Housing) |
| (1) | In any of the following cases, an implementer in a leading investment district may preferentially provide land developed for the construction of housing to resident enterprises, educational institutions or medical institutions: |
| 1. | Where a resident enterprise intends to construct houses for employees; |
| 2. | Where a newly-established educational institution intends to construct houses for teachers and other employees; |
| 3. | Where a newly-established medical institution intends to construct houses for doctors, nurses and other employees. |
| (2) | Where necessary to provide housing to employees of a resident enterprise; teachers or other employees of a newly-established educational institution; doctors, nurses or other employees of a newly-established medical institution in a leading investment district, an implementer may preferentially provide housing to them notwithstanding Article 54 of the Housing Act. In such cases, standards for providing housing may be prescribed separately by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 13805, Jan. 19, 2016> |
| Article 50 (Support, etc. for Developing Leading Investment Districts) |
| (2) | To build infrastructure for developing the tourism industry in a leading investment district or to promote tourism publicity projects, etc., the Minister of Culture, Sports and Tourism may provide loans or subsidies from the tourism promotion and development fund under the Tourism Promotion and Development Fund Act. |
Section 8 Support for Implementers and Resident Enterprises
| Article 51 (Reduction of and Exemption from Taxes, Charges, etc.) |
| (1) | To seamlessly implement a regional development project in a regional development project zone or leading investment district, the State or a local government may grant implementers and Korean or foreign enterprises occupying the relevant regional development area or leading investment district (hereinafter referred to as "resident enterprise") reduction of, or exemption from, tax, such as corporate tax, income tax, tariffs, comprehensive real estate holding tax, value-added tax, acquisition tax, property tax, as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, the Customs Act and the Act on Special Rural Development Tax. |
| (2) | Where necessary to seamlessly implement a regional development project in a regional development project zone or leading investment district, the State or a local government may grant implementers reduction of, or exemption from, the following charges, etc., or need not impose the charges, etc. as prescribed by applicable Acts: |
| 3. | Intercity transportation facility charges under the Special Act on the Management of Intercity Transport in Metropolitan Areas; |
| 5. | Expenses incurred in creating substitute grassland under the Grassland Act; |
| 7. | Fees for occupying or using a river under the River Act. |
| Article 52 (Lease and Sale of State Property and Public Property) |
| (2) | Where a resident enterprise fails to use State property or public property within the period prescribed by Presidential Decree, the State or local government may rescind the lease or sale contract concluded under paragraph (1). |
| (4) | Notwithstanding Article 18 (1) of the State Property Act and Article 13 of the Public Property and Commodity Management Act, where land owned by the State or a local government is leased pursuant to paragraph (1), factories or other permanent facilities may be built on such land. In such cases, a condition shall be attached that, based upon the types, etc. of the facilities, the facilities be donated to the State or local government after the period lapses or the land revert to the State or local government after being reinstated. |
| Article 53 (Support for Authorization and Permission for Resident Enterprises) |
| (1) | The State or a local government may assist resident enterprises in handling construction, taxation, civil petitions, attracting investment , etc. en bloc. |
| (2) | Where a resident enterprise intends to request support under paragraph (1) from a local government in which a comprehensive regional development support center is established pursuant to Article 44, it shall file an application with the comprehensive regional development support center according to the procedures prescribed by Presidential Decree. |
| Article 54 (Financial Support for Resident Enterprises) |
| (1) | Pursuant to relevant statutes, the State and a local government may provide financial support to enterprises occupying a regional development project zone, such as providing a loan to purchase land; granting reduction of, or exemption from, lease charges; or subsidizing a regional development project. |
| (2) | The State and local governments may provide financial support to resident enterprises towards the costs required for installing convenience facilities, such as medical facilities, educational facilities, or housing. |
| Article 55 (Building Infrastructure, Support for Subsidies, etc.) |
| (1) | To seamlessly implement a regional development project and increase investment, the State and a local government may directly install facilities prescribed by Presidential Decree, such as roads, railroads, etc. or subsidize the installation. |
| (2) | Matters regarding projects eligible for support from the State under paragraph (1), scope, etc. of support shall be prescribed by Presidential Decree. |
| (3) | Where the State subsidizes a development project to be implemented by a local government of a underdeveloped area pursuant to paragraph (1), the State may increase subsidies at the subsidy rate prescribed by Presidential Decree based upon the level of backwardness, financial capability, etc. of the local government, notwithstanding the differential subsidy rate under Article 10 of the Subsidy Management Act and other subsidy rates prescribed by other Acts. |
| Article 56 (Guarantee of Debts by Local Governments) |
| (1) | Where an implementer concludes a financial contract with a finance company, a local government may guarantee part of the debt borne by the implementer against the finance company regarding the regional development project following a resolution by a local council. |
| Article 57 (Establishment and Operation of Integrated Regional Development Information Network) |
| (1) | To seamlessly implement a regional development project and to stimulate private investment, the Minister of Land, Infrastructure and Transport may establish and operate an integrated regional development information network (hereinafter referred to as "integrated information network") that can provide information on regional development, such as industrial sites, urban planning, environment, infrastructure, housing sites, tourism, cultural property, etc. jointly with relevant central administrative agencies or Mayors/Do Governors as prescribed by Presidential Decree. |
| (2) | A Mayor/Do Governor shall input and manage information on the status of regional development projects being promoted in his/her jurisdictional area or regional development project plans determined in the integrated information network as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (3) | The Minister of Land, Infrastructure and Transport may outsource establishing and operating an integrated information network to a specialized institution. |
| (4) | A specialized institution to which establishing and operating an integrated information network are outsourced pursuant to paragraph (3) may request the head of a central administrative agency or the head of a local government, etc. to provide necessary data or information for establishing and operating the integrated information network. In such cases, the head of an institution in receipt of such request shall comply therewith, except in extenuating circumstances. |
| Article 58 (Re-investment of Development Gains) |
| (1) | An implementer who implements at least two regional development projects may reinvest all or some of development gains (referring to the development gains excluding development charges imposed pursuant to Article 3 of the Restitution of Development Gains Act) from a regional development project in another regional development project. |
| (2) | An implementer who intends to reinvest development gains pursuant to paragraph (1) shall take necessary measures, such as keeping separate accounts of development gains, etc. |
| (3) | Projects to be reinvested pursuant to paragraph (1), scope of reinvestment and other necessary matters shall be prescribed by Presidential Decree. |
| Article 59 (Special Cases concerning the Special Act on Management of Intercity Transport in Metropolitan Areas) |
| (1) | Where a regional development project zone designated or modified by the Minister of Land, Infrastructure and Transport pursuant to Article 11 (2) corresponds to a large-scale development project under Article 7-2 (1) of the Special Act on the Management of Intercity Transport in Metropolitan Areas, the Minister of Land, Infrastructure and Transport may formulate intercity transportation improvement measures, notwithstanding Article 7-2 (1) of the same Act. In such cases, the Minister of Land, Infrastructure and Transport may seek opinions from the implementer. |
| (2) | When the Minister of Land, Infrastructure and Transport formulates intercity transportation improvement measures under paragraph (1), he/she shall determine the measures before granting approval of an implementation plan under Article 23 after hearing opinions of the Mayors/Do Governors, and notify the Mayors/Do Governors of such measures notwithstanding Article 7-2 (3) of the Special Act on the Management of Intercity Transport in Metropolitan Areas. |
| (3) | The Mayors/Do Governors in receipt of a request for an opinion under paragraph (2) shall submit their opinions within 30 days from the date such request is received; and if no opinion is submitted within such period, they shall be deemed to have no opinion. |
| Article 60 (Special Cases concerning Installation and Utilization of Sports Facilities Act) |
| Article 61 (Special Cases concerning Establishment of Private Schools) |
| (1) | Where an implementer intends to establish a school in a regional development area to develop human resources meeting the characteristics of the area and to improve the educational environment, he/she shall formulate a regional development plan and an implementation plan including a plan to establish a school. |
| (2) | Where a designating authority intends to approve a regional development project plan or an implementation plan including a plan to establish a school under paragraph (1), he/she shall pre-consult with the Minister of Education or the superintendent of education. |
| (3) | Where an implementer applies for approval of an action plan pursuant to Article 4 of the School Facilities Projects Promotion Act to implement a school facility project included in the regional development plan or implementation plan approved following consultation under paragraph (2), the superintendent of education shall review and approve it. |
| Article 62 (Special Cases concerning Operation of Schools and Educational Courses) |
| (1) | To develop human resources in a regional development project zone meeting the characteristics of the area and to improve educational environment, a school or education courses subject to special treatment under Article 61 of the Elementary and Secondary Education Act shall be designated by the relevant superintendent of education upon the recommendation of the head of a Si or Gun. |
| (2) | The standards for recommending schools subject to special treatment under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | Schools operated pursuant to paragraph (1), and teachers, students, etc. who participate in the educational courses operated pursuant to paragraph (1) shall not be disadvantaged due to such fact. |
| Article 63 (Installation and Operation of Medical Institutions) |
| (1) | Where an implementer intends to install and operate a medical institution to secure medical infrastructure in a regional development project zone, he/she shall formulate a regional development project plan and an implementation plan including a plan to install a medical institution. |
| (2) | Where a designating authority intends to approve a regional development project plan or an implementation plan that includes a plan to install a medical institution under paragraph (1), he/she shall pre-consult with the Minister of Health and Welfare or a Mayor/Do Governor. |
| (3) | Where an implementer applies for authorization or permission to install a medical institution included in a regional development project plan or an implementation plan approved following consultation under paragraph (2), a Mayor/Do Governor shall examine such application and grant said authorization or permission. |
| (5) | A medical institution in a regional development project zone may perform incidental business prescribed by Presidential Decree, notwithstanding Article 49 of the Medical Service Act. |
| Article 64 (Contribution, etc. to Regional Economic Development) |
Any implementer or resident enterprise in a regional development project zone shall endeavor to develop the economy of the relevant area, such as employing residents, purchasing goods sold in the area, connecting with the industry and universities in the area, etc.
| Article 65 (Evaluation of Business Feasibility of Regional Development Projects) |
| (1) | The Minister of Land, Infrastructure and Transport may formulate and implement standards for evaluating business feasibility, such as demand for development projects and cost and benefit analysis so that regional development projects are promoted efficiently. |
| (2) | The Minister of Land, Infrastructure and Transport may designate a specialized evaluation institution to evaluate business feasibility, etc. of a regional development project. |
| (3) | Details of the standards necessary for designating a specialized evaluation institution, procedures for designation, revocation of designation, etc. under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 66 (Evaluation of Results of Implementation of Regional Development Projects) |
| (1) | The Minister of Land, Infrastructure and Transport shall evaluate the results of implementation by regional development plan or by Si/Gun periodically or occasionally. In such cases, where necessary for efficient evaluation, he/she may outsource evaluation to a specialized institution prescribed by Presidential Decree. |
| (2) | Where necessary for evaluation under paragraph (1), the Minister of Land, Infrastructure and Transport may request the heads of relevant administrative agencies to submit relevant data. In such cases, the heads of relevant administrative agencies shall comply with such request, except in extenuating circumstances. |
| (3) | The Minister of Land, Infrastructure and Transport shall notify the heads of relevant administrative agencies of the findings of evaluation under paragraph (1); where the heads of relevant administrative agencies provide administrative and financial support according to the relevant plan, they may incorporate the findings of evaluation in the plan. |
| (4) | Standards, methods, procedures, etc. for evaluating a regional development plan and other necessary matters shall be determined by the Minister of Land, Infrastructure and Transport following deliberation by the National Land Policy Committee. |
| (5) | The Minister of Land, Infrastructure and Transport shall formulate and implement necessary measures to develop specialized evaluation institutions for inspecting, analyzing and evaluating regional development projects. |
CHAPTER III DESIGNATION OF REGIONAL STIMULATION AREAS AND SUPPORT THEREFOR
| Article 67 (Designation of Regional Stimulation Areas) |
| (1) | The Minister of Land, Infrastructure and Transport may designate an area of which level of development is substantially lower than other areas and the backwardness thereof is huge among underdeveloped areas as a regional stimulation area at the request of a Mayor/Do Governor. In such cases, a regional simulation area shall be designated to the extent necessary for attaining the objective of the designation. |
| (2) | When the Do Governor requests the designation of a regional stimulation area pursuant to paragraph (1), he/she shall pre-consult with the head of a relevant Si or Gun. |
| (3) | When the Do Governor requests designation of a regional stimulation area pursuant to paragraph (1), he/she shall submit the findings of comprehensive evaluation according to the standards publicly notified by the Minister of Land, Infrastructure and Transport, such as gross regional product, financial situation, regional industry, rate of population change, etc. together with the request. |
| (4) | Details of requirements for designating a regional stimulation area under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 68 (Procedures, etc. for Designating Regional Stimulation Areas) |
| (1) | Where the Minister of Land, Infrastructure and Transport designates a regional stimulation area, he/she shall pre-consult with the heads of relevant central administrative agencies. The same shall apply to any modification to a designated regional stimulation area. |
| (2) | When the Minister of Land, Infrastructure and Transport designates a regional stimulation area or modifies the designation, he/she shall publicly notify such fact in the official gazette. |
| Article 69 (Rescission of Designation of Regional Stimulation Areas) |
Where the objective of designating a regional stimulation area is attained following support for the regional stimulation area or the completion of a development project, etc. or prospects for development become unlikely, the Minister of Land, Infrastructure and Transport may rescind the designation of the regional stimulation area after consulting with the head of the relevant central administrative agency or the head of the relevant local government.
| Article 70 (Support for Regional Stimulation Areas) |
The State and local governments may preferentially support the following matters as prescribed by Presidential Decree for developing regional stimulation areas: <Amended by Act No. 13880, Jun. 22, 2015>
| 2. | Establishing and inducing educational, cultural and tourism facilities and improving transportation services; |
| 3. | Promoting the agricultural and forestry industry, the maritime industry and the fishery industry; |
| 4. | Other matters prescribed by Presidential Decree. |
| Article 71 (Establishment of Special Account for Developing Underdeveloped Area) |
| (1) | To implement regional development projects or to support projects and activities for boosting investment in underdeveloped areas, such as regional stimulation areas, a Do Governor or the head of a Si or Gun may establish a special account for developing underdeveloped areas (hereinafter referred to as "special account"). |
| (2) | The special account shall be comprised of the following funds: |
| 1. | Funds transferred from the general account; |
| 3. | Donations from individuals or corporations; |
| (3) | The special account shall be used for the following purposes: |
| 1. | Expenses necessary for establishing, inspecting and studying regional development project plans and for regional development projects; |
| 2. | Expenses for establishing, operating and managing the special account; |
| 3. | Expenses for providing subsidies or loans to underdeveloped areas; |
| 4. | Other necessary matters, prescribed by Municipal Ordinance of the relevant local governments. |
| (4) | Matters necessary for establishing, operating and managing the special account shall be prescribed by Municipal Ordinance of the relevant local governments according to the standards prescribed by Presidential Decree. |
CHAPTER IV SUPPLEMENTARY PROVISIONS
| Article 72 (Conversion of Districts, etc. under Other Acts) |
| (1) | A person who designates an area, district, zone, etc. pursuant to other Acts for a development project prescribed by Presidential Decree may request the Minister of Land, Infrastructure and Transport to convert such area, district, zone, etc. into a regional development project zone and designate him/her as an implementer if the area, district, zone, etc. (hereinafter referred to as "existing district, etc.") designated pursuant to such Acts falls under any of the following: |
| 1. | Where a development plan or project plan for the existing district, etc. is formulated, but a project implementer under the relevant Act is not designated within two years from the date of designation of the existing district, etc.; |
| 2. | Where a project implementer of the existing district, etc. is designated, but the implementation plan under the relevant Act is not approved within two years from the date of designation of the project implementer. |
| (2) | Where an existing district, etc. subject to conversion pursuant to paragraph (1) falls under all of the following, the Minister of Land, Infrastructure and Transport may convert the existing district, etc. into a regional development project zone and designate the project implementer of the existing district, etc. as an implementer under this Act following deliberation by the National Land Policy Committee: |
| 1. | Where the existing district, etc. is consistent with a district development plan being formulated or already formulated; |
| 2. | Where the existing district, etc. meets the requirements referred to in subparagraphs of Article 11 (3). |
| (3) | Where the Minister of Land, Infrastructure and Transport converts an existing district, etc. into a regional development project zone and designates the project implementer of the existing district, etc. as an implementer pursuant to paragraph (2), he/she shall publicly notify such fact in the official gazette and send a copy of relevant documents to a person who applies for conversion under paragraph (1); the head of a relevant central administrative agency; a Mayor/Do Governor; or the head of a Si, Gun or Gu, as prescribed by Presidential Decree. |
| (4) | Where a person who applies for conversion pursuant to paragraph (1) receives a copy of relevant documents pursuant to paragraph (3), he/she shall, without delay, rescind the designation of an existing district, etc. except in extenuating circumstances and notify the Minister of Land, Infrastructure and Transport after publicly notifying such fact in the official gazette or in a public report. |
| (5) | The head of a central administrative agency, a Mayor/Do Governor or the head of a Si, Gun or Gu in receipt of a copy of relevant documents pursuant to paragraph (3) shall make it available for public inspection for at least 14 days. |
| (6) | Where an existing district, etc. or project implementer is converted into a regional development project zone or implementer, respectively pursuant to paragraph (2), such existing district, etc. or project implementer shall be deemed designated as a regional development project zone or an implementer pursuant to this Act. |
| (7) | Where an existing district, etc. or project implementer is converted into a regional development project zone or implementer, respectively pursuant to paragraph (2), the period during which an owner of land, etc., purchased after negotiation or expropriated for implementing a project in the existing district, etc., can exercise a right to repurchase shall be counted from the day conversion into a regional development project zone or an implementer is publicly notified pursuant to paragraph (3), notwithstanding Article 91 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects. |
| (8) | Where an existing district, etc. or project implementer is converted into a regional development project zone or implementer, respectively pursuant to paragraph (2), a designating authority shall incorporate such fact in a regional development plan. |
| (9) | Necessary matters, such as documents to be submitted together with an application for conversion into a regional development project zone or into an implementer under paragraph (1), etc., shall be prescribed by Presidential Decree. |
| Article 73 (Articles Applicable Mutatis Mutandis to Projects Outside Regional Development Project Zones) |
| Article 74 (Measures for Stabilization of Real Estate Prices and Prevention of Uncontrolled Development) |
| (1) | The Minister of Land, Infrastructure and Transport, a Mayor/Do Governor and the head of a Si, Gun and Gu shall take measures necessary for stabilizing the prices of real estate in a regional development project zone and surrounding areas. |
| (2) | The Minister of Land, Infrastructure and Transport and a Mayor/Do Governor shall request the heads of relevant central administrative agencies to take the following measures regarding an area in which real estate speculation or sharp increase in real estate prices is expected due to designation as a regional development project zone: <Amended by Act No. 13797, Jan. 19, 2016> |
| 4. | Other measures necessary for stabilizing real estate prices. |
| Article 75 (Revocation, etc. of Designation) |
| (1) | Where an implementer falls under any of the following, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si, Gun or Gu may revoke authorization, approval, permission or designation under this Act; suspend the effect thereof; cease or modify construction; reconstruct or relocate buildings, etc.; impose other necessary dispositions; or issue an order: |
| 1. | Where he/she obtains authorization, approval, permission or designation under this Act by fraud or other improper means; |
| 2. | Where he/she fails to obtain approval of an implementation plan or implements a regional development project inconsistently with the details of approval; |
| 3. | Where he/she fails to comply with an order to reinstate under Article 17 (4); |
| 4. | Where he/she uses information on regional development for a purpose other than the original purpose in violation of Article 34 (6); |
| 5. | Where it is impracticable to continue a regional development project or deemed to greatly harm public interest due to circumstantial changes; |
| 6. | Where he/she implements construction works under an illegal regional development project. |
| (2) | When the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si, Gun or Gu imposes dispositions or issues an order under paragraph (1), he/she shall publicly notify such fact as prescribed by Presidential Decree. |
| Article 76 (Report, Inspection, etc.) |
| (1) | Where necessary for enforcing this Act, the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may require an implementer to submit a report or data; and shall have affiliated public officials enter the office or workplace of the implementer or other necessary places to inspect duties relating to a regional development project. |
| (2) | Public officials who inspect the duties relating to a regional development project under paragraph (1) shall carry a certificate indicating their authority and present it to interested parties. |
| (3) | Matters necessary for certificates under paragraph (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
Where the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si, Gun or Gu intends to revoke authorization, approval, permission or designation under this Act, he/she shall hold a hearing.
| Article 78 (Administrative Appeals) |
Any person dissatisfied with a disposition imposed by an implementer pursuant to this Act may file for an administrative appeal under the Administrative Appeals Act: Provided, That except as otherwise expressly provided for in other Acts, regarding a disposition imposed by an implementer who is not an administrative agency, the Central Administrative Appeals Commission shall examine and determine the case if the designating authority is the Minister of Land, Infrastructure and Transport; and an administrative appeals commission under a Mayor/Do Governor shall examine and determine the case if the designating authority is a Mayor/Do Governor.
| Article 79 (Delegation or Entrustment of Authority) |
The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may delegate or entrust part of the authority granted under this Act to the head of a local government, head of an affiliated institution or an implementer as prescribed by Presidential Decree. <Amended by Act No. 14345, Dec. 2, 2016>
| Article 80 (Legal Fiction as Public Official in Application of Penalty Provisions) |
CHAPTER V PENALTY PROVISIONS
| Article 81 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:
| 1. | A person who engages in an activity under Article 17 (1) without obtaining permission or permission for change under the same paragraph; |
| 2. | A person who implements a regional development project without being designated as an implementer under Article 19 (1); |
| 3. | A person who fails to comply with an order to sell land under Article 20 (6) without good cause; |
| 4. | A person who implements a regional development project after obtaining approval of, or approval for amendment of, an implementation plan under Article 23 by fraud or other improper means, or a person who implements a regional development project without obtaining approval of an implementation plan under the same Article; |
| 5. | A person who receives advance payment without obtaining approval under Article 31 (2); |
| 6. | A person who uses, leases or sells developed land, etc., in violation of a plan to use or sell developed land, etc. under Article 32 (1); |
| 7. | A person who supplies undeveloped land without obtaining approval for a contract to supply developed land, etc. under Article 33 (1) and (2), or concludes a supply contract by improper means; |
| 8. | A person who sells undeveloped land, in violation of Article 33 (6). |
| Article 82 (Joint Penalty Provisions) |
Where the representative of a corporation or an agent or employee of, or other persons employed by, the corporation or individual violates Article 81 regarding the duties of the corporation or individual, not only shall the violator be punished but the corporation or individual also shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where the corporation or individual has not neglected to exercise due care and supervision regarding the duties to prevent violations.
| Article 83 (Administrative Fines) |
| (1) | Any of the following persons shall be punished by an administrative fine not exceeding 10 million won: |
| 1. | A person who refuses, obstructs or evades an inspection or land survey under Article 34; |
| 2. | A person who refuses, obstructs or evades a completion inspection under Article 38; |
| 3. | A person who uses developed land, etc. before a completion inspection or public announcement of construction completion under Article 41 or uses developed land, etc. without permission for use; |
| 4. | A person who refuses, obstructs or evades an inspection or fails to submit a report under Article 76. |
| (2) | The administrative fines under paragraph (1) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015.
Article 2 (Repeal of Other Acts)
The Special Act on the Promotion of Development Investments in Underdeveloped Areas is hereby repealed.
Article 3 (Transitional Measures concerning Repeal of the Special Act on the Promotion of Development Investments in Underdeveloped Areas)
| (1) | Any comprehensive development plan for underdeveloped areas, development facilitation district in an underdeveloped area, investment facilitation district in an underdeveloped area and any project implementer under the former Special Act on the Promotion of Development Investments in Underdeveloped Areas in force as at the time this Act enters into force shall be deemed a regional development plan, regional development project zone and implementer under this Act, respectively. |
| (3) | Where a comprehensive development plan, investment facilitation district and project implementer are to be deemed a regional development plan, regional development project zone or implementer, respectively, pursuant to paragraph (1) when the relevant construction works or a project do not commence within five years after this Act enters into force, the designation of a regional development plan (limited to the part for which the relevant construction works or a project do not commence pursuant to this Act), regional development project zone or implementer shall be deemed to have become void, rescinded or revoked on the day immediately following the day on which five years have elapsed after this Act enters into force. |
Article 4 (Transitional Measures concerning Amendment to the Balanced Regional Development and Support for Local Small and Medium Enterprises Act)
| (2) | A project under a multi-districts development project plan that is deemed a regional development plan pursuant to paragraph (1) shall be implemented according to the procedures under the respective Acts related to the relevant project, notwithstanding this Act. |
| (3) | A development plan for a development promotion district; development plan for a specific region; development plan for a regional comprehensive development district formulated under the former Balanced Regional Development and Support for Local Small and Medium Enterprises Act as at the time this Act enters into force, shall be deemed a regional development plan under this Act; and a development promotion district; a specific region; a regional comprehensive development district (limited to a region subject to a development project included in a development plan publicly notified pursuant to the former Act); and the project implementer designated and publicly notified under the former Balanced Regional Development and Support for Local Small and Medium Enterprises Act, shall be deemed a regional development project zone and an implementer under this Act. |
| (4) | Where a former designation is to be deemed a regional development plan, regional development project zone or implementer pursuant to paragraph (3) and the construction works or a project do not commence within five years after this Act enters into force, the designation of a regional development plan (limited to the part for which the relevant construction works or a project do not commence pursuant to this Act), regional development project zone and implementer shall be deemed to have become void, rescinded or revoked on the day immediately following the day on which five years have elapsed after this Act enters into force. |
Article 5 (Transitional Measures concerning Projects Implementation Plan for Which is Approved)
Article 6 (Transitional Measures concerning Support by State or Local Governments)
Article 7 (Transitional Measures concerning Administrative Dispositions)
Article 8 (Transitional Measures concerning Penalty Provisions, etc.)
Article 9 Omitted.
Article 10 (Relationship with Other Acts)
ADDENDA <Act No. 12738, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted)
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 13380, Jun. 22, 2015>
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 27 (1) and (2) shall enter into force on the date of its promulgation.
ADDENDA <Act No. 13797, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation
Articles 2 through 11 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDUM <Act No. 14345, Dec. 2, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 15489, Mar. 20, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 15607, Apr. 17, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation
Articles 2 through 7 Omitted.