ENFORCEMENT DECREE OF THE ACT ON THE IMPROVEMENT OF URBAN AREAS AND RESIDENTIAL ENVIRONMENTS
Wholly Amended by Presidential Decree No. 28628, Feb. 9, 2018
Amended by Presidential Decree No. 28806, Apr. 17, 2018
Presidential Decree No. 28873, May 8, 2018
Presidential Decree No. 29045, Jul. 16, 2018
Presidential Decree No. 29209, Oct. 2, 2018
Presidential Decree No. 29360, Dec. 11, 2018
CHAPTER I GENERAL PROVISIONS
| Article 2 (Scope of Dilapidated and Substandard Structures) |
| (1) | "Structure specified by Presidential Decree" in subparagraph 3 (b) of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments (hereinafter referred to as the "Act") means a structure that falls within the following categories, among structures not subject to seismic safety assessment under building-related statutes and regulations as at the time such structure is constructed or substantially repaired: |
| 1. | A structure that is unlikely to maintain its functions due to deterioration of or damage to facilities for water supply, drainage, sewage, etc. or roofs, outer walls or finishes; |
| 2. | A structure that is unlikely to assure its structural safety because findings from a safety inspection conducted by a safety inspection institution under Article 12 (4) of the Act indicate that its durability, load carrying capacity, etc. are anticipated to cease to meet the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport under Article 12 (5) of the Act. |
| (2) | A structure that may be specified pursuant to subparagraph 3 (c) of Article 2 of the Act by ordinance of the Special Metropolitan City or a Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province or a large city with a population of at least 500,000 residents, other than the Seoul Special Metropolitan City or Metropolitan Cities or Special Self-Governing City referred to in Article 175 of the Local Autonomy Act, (hereinafter referred to as "City/Do ordinance") means a structure that falls within the following categories: |
| 2. | A structure in an area where smoke, noise, etc. from a factory could be a hazard; |
| 3. | A structure where the cost of repairing and reinforcing it to use it for up to 40 years from the date of completion is estimated to exceed the cost of constructing a new structure after demolishing it. |
| (3) | A structure that may be specified by City/Do ordinance pursuant to subparagraph 3 (d) of Article 2 of the Act means a structure that falls within the following categories: |
| 1. | A structure where the period specified by City/Do ordinance within the range between 20 and 30 years after completion has already expired; |
| Article 3 (Fundamental Infrastructure) |
"Facilities specified by Presidential Decree" in subparagraph 4 of Article 2 of the Act means the following: | 5. | Water supply facilities for fire-fighting; |
| 6. | Facilities for emergency evacuation; |
| 7. | Gas supply facilities; |
| 8. | District heating facilities; |
| 9. | Common facilities constructed in an improvement zone designated and publicly notified for an residential environment improvement project and included in the relevant project implementation plan under Article 52 of the Act (hereinafter referred to as "project implementation plan") to be managed by the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si, Gun, or autonomous Gu (hereinafter referred to as the "head of the relevant Si/Gun/autonomous Gu"). |
| Article 4 (Common Facilities) |
"Facilities specified by Presidential Decree" in subparagraph 5 of Article 2 of the Act means the following: | 1. | A shop, laundry, restroom and waterworks for public use; |
| 2. | Facilities for older people and infants, such as nurseries, childcare centers and community centers for older people; |
| 3. | Other facilities specified by City/Do ordinance and used for purposes similar to those specified in subparagraphs 1 and 2. |
CHAPTER II FORMULATION OF MASTER PLANS AND DESIGNATION OF IMPROVEMENT ZONES
| Article 5 (Contents of Master Plans) |
| 2. | Objectives of improving urban and residential environments; |
| 3. | Schemes to revitalize functions of city centers and to prevent hollowing-out of city centers; |
| 4. | A plan to conserve historical relics and traditional structures; |
| 5. | Roles of the public sector and the private sector in each type of improvement project; |
| 6. | Matters concerning financing for implementing improvement projects. |
| Article 6 (Public Inspection for Formulating Master Plans) |
| (1) | When the Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si intends to make available a master plan to improve urban and residential environments (hereinafter referred to as "master plan") to residents pursuant to Article 6 (1) of the Act, he or she shall publicly announce the purpose and place for public inspection in the public gazette of the relevant local government and Internet (hereinafter referred to as public gazette, etc."); and shall keep relevant documents at the place for public inspection. |
| (2) | Any resident may present his or her written opinion to the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or to the head of the relevant Si during the period specified for public inspection under Article 6 (1) of the Act. |
| (3) | The Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si shall review the opinions presented pursuant to paragraph (2); and shall adopt such opinions, if he or she deems it necessary to adopt such opinions pursuant to Article 6 (1) of the Act; or shall notify the resident who presented such opinions of the grounds for not adopting such opinions, if the opinions are not acceptable. |
| 1. | Where the scale of fundamental infrastructure (excluding the facilities specified in subparagraph 9 of Article 3; hereafter in Articles 8 (3), 13 (4), 38 and 76 (3) the same shall apply) is increased; or where the area of fundamental infrastructure is reduced, by less than 10 percent; |
| 2. | Where the planned period of an improvement project is reduced; |
| 3. | Where the plan to construct common facilities is amended; |
| 4. | Where the plan to construct social welfare facilities, facilities for residents' cultural activities, etc. is amended; |
| 5. | Where the definitely specified area of a prospective improvement zone provided for in Article 5 (1) 9 of the Act (hereinafter referred to as "prospective improvement zone") is changed by less than 20 percent; |
| 6. | Where an amendment is made to the plan to implement an improvement project in phases under Article 5 (1) 10 of the Act (hereinafter referred to as "plan to implement an improvement project in phases"); |
| 7. | Where the building-to-land ratio (referring to the building-to-land ratio provided for in Article 55 of the Building Act; hereinafter the same shall apply) and the floor area ratio (referring to the floor area ratio provided for in Article 56 of the Building Act; hereinafter the same shall apply) are changed respectively by less than 20 percent; |
| 8. | Where any matter concerning financing necessary for implementing an improvement project is changed; |
| Article 7 (Areas Eligible for Formulation of Implementation Plans) |
| (1) | Pursuant to Article 8 (4) and (5) of the Act, the Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si/Gun/autonomous Gu may formulate an improvement plan under Article 8 (1) or (5) of the Act (hereinafter referred to as "improvement plan") for any area that meets the criteria prescribed in attached Table 1. |
| (2) | To formulate an improvement plan under paragraph (1), the Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si/Gun/autonomous Gu shall conduct a survey on the following matters to ascertain whether the relevant area meets the criteria prescribed in attached Table 1; and shall conduct a survey on changes to ascertain changes, when he or she intends to amend a formulated improvement plan: |
| 1. | The status of residents or industries; |
| 2. | The status of use and ownership of land and structures; |
| 3. | The status of constructed urban or Gun planning facilities and fundamental infrastructure; |
| 4. | The status of traffic in the relevant improvement zone and neighborhood; |
| 5. | Prices of land and structures and the status of lease of land and structures; |
| 6. | Residents' opinions on the improvement plan, implementation method, etc. for the relevant improvement project; |
| 7. | Other matters specified by City/Do ordinance. |
| (3) | The Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si/Gun/autonomous Gu may authorize a project implementer (referring to the representative of project implementers, if at least two project implementers are involved; hereinafter the same shall apply) to conduct the survey under paragraph (2). |
| Article 8 (Contents of Improvement Plans) |
| (1) | "Where a project meets the criteria prescribed by Presidential Decree" in the proviso to Article 9 (1) 10 of the Act means where the aggregate ratio of the following housing units to be leased for at least eight years to the total number of housing units to be built is at least 20/100: <Amended by Presidential Decree No. 29045, Jul. 16, 2018> |
| 2. | Housing units the management of which is to be outsourced to a housing rental management business operator defined in subparagraph 11 of Article 2 of the Special Act on Private Rental Housing (hereinafter referred to as "housing units under outsourced rental management"). |
| (2) | "Matters specified by Presidential Decree for efficient supply, etc. of publicly-funded private rental housing or housing units under outsourced rental management" in Article 9 (1) 10 (d) of the Act means the following: Provided, That matters specified in subparagraphs 2 and 3 shall be included only where such matters are necessary for the relevant improvement plan: <Amended by Presidential Decree No. 29045, Jul. 16, 2018> |
| 1. | The ratio of the number of publicly-funded private rental housing or housing units under outsourced rental management to the total number of housing units to be built; |
| 2. | A layout plan for publicly-funded private rental housing or housing units under outsourced rental management; |
| 3. | Characteristics of prospective tenants' families and the direction of operation of the rental business, in consideration of conditions, etc. of the neighborhood. |
| 2. | A plan to subdivide one improvement zone into at least two improvement zones or to consolidate or combine improvement zones, where it is intended to designate an improvement zone by subdividing an improvement zone into at least two improvement zones or by consolidating or combining improvement zones pursuant to Article 18 of the Act; |
| 3. | The person to be designated as the project implementer for a residential environment improvement project under Article 24 of the Act, where such residential environment improvement project is to be implemented as provided for in Article 23 (1) 2 of the Act; |
| 4. | The method for implementing the relevant improvement project; |
| 5. | A plan to improve and ameliorate existing structures; |
| 6. | A plan to construct fundamental infrastructure; |
| 7. | A plan regarding building boundaries of structures; |
| 8. | Findings from an examination of vulnerabilities to floods and other natural disasters; |
| 9. | Matters concerning housing supply in the relevant improvement zone and neighborhood; |
| 10. | Matters concerning safety and crime prevention; |
| 11. | Other matters specified by City/Do ordinance for efficiently implementing improvement projects. |
| Article 9 (Sizes of Houses and Construction Ratio) |
| 1. | The following in cases of a residential environment improvement project: |
| (a) | Housing units of the national standard housing size defined in subparagraph 6 of Article 2 of the Housing Act (hereinafter referred to as "national standard housing size"): Not exceeding 90/100 of the total number of housing units to be built; |
| (b) | Public rental housing units (referring to public rental housing units defined in the Special Act on Public Housing; hereinafter the same shall apply): Not exceeding 30/100 of the total number of housing units to be built: Provided, That the number of public rental housing units with an exclusive habitable area not exceeding 40 square meters shall not exceed 50/100 of the total number of public rental housing units; |
| (a) | Housing units of the national standard housing size: Not exceeding 80/100 of the total number of housing units to be built; |
| (b) | Rental housing units (referring to private rental housing units defined in the Special Act on Private Rental Housing and public rental housing units; hereinafter the same shall apply): Not exceeding 15/100 of the total number of housing units to be built (excluding the number of housing units increased by building them in excess of the floor area ratio stipulated in the relevant improvement plan pursuant to Article 54 (1) of the Act (the rental housing units supplied pursuant to Article 55 (1) of the Act shall be excluded herefrom; but the number of rental housing units with an exclusive habitable area not exceeding 40 square meters shall not exceed 40/100 of the total number of the relevant rental housing units (excluding the rental housing units supplied pursuant to Article 55 (1) of the Act; hereafter in this item the same shall apply): Provided, That, if the ratio of the number of rental housing units available for eligible tenants provided for in subparagraph 2 (a) (i) of attached Table 3 to the total number of housing units to be built in a redevelopment project implemented within the jurisdiction of the Special Metropolitan City Mayor or a Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of a Si/Gun/autonomous Gu in formulating an improvement plan exceeds the ratio of rental housing units determined and publicly notified by the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor"), the ratio of rental housing units may be increased by up to the ratio of rental housing units calculated as follows: |
| Ratio of rental housing units publicly notified by the Competent Mayor/Do Governor + (Total number of housing units to be built ? 5/100) |
|
| 3. | In cases of a reconstruction project, the number of housing units in the national standard housing size shall not exceed 60/100 of the total number of housing units to be built. |
| 1. | In cases of housing units to be sold to association members of a reconstruction project, the exclusive habitable area of each existing house (referring to a house existing prior to reconstruction) shall be reduced, or the size of each housing unit shall be increased by not more than 30 percent; |
| 2. | All housing units to be sold to any person other than association members shall be of a size not exceeding 85 square meters. |
| Article 10 (Structures Subject to Safety Inspections for Reconstruction Projects) |
| (1) | Where a safety inspection is requested pursuant to Article 12 (2) 1 of the Act, the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun/autonomous Gu (hereinafter referred to as the "Authority to formulate improvement plans") shall determine whether to conduct a safety inspection within 30 days from the date of such request pursuant to Article 12 (4) of the Act; and shall notify the requesting person of his or her determination, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. If the Authority to formulate improvement plans deems it necessary to adjust the timing of a reconstruction project before determining whether to conduct a safety inspection in such cases, due to the plan to implement improvement projects in phases, etc., he or she may adjust the timing for conducting the safety inspection. |
| (2) | If the Authority to formulate improvement plans finds, through on-site checks (hereinafter referred to as "on-site checks"), etc. conducted pursuant to Article 12 (4) of the Act, that the multi-family housing building for which a safety inspection was requested under Article 12 (2) 1 of the Act is not apparently a dilapidated and substandard structure, the Authority may determine that a safety inspection is unnecessary. <Amended by Presidential Decree No. 28873, May 8, 2018> |
| (3) | "Structures specified by Presidential Decree in a housing complex" in the proviso to Article 12 (3) of the Act means the following: <Amended by Presidential Decree No. 28873, May 8, 2018> |
| 1. | Houses which the Authority to formulate improvement plans finds it necessary to reconstruct promptly because the houses collapsed due to a natural disaster or other event; |
| 2. | Houses the Authority to formulate improvement plans finds it necessary to prohibit the use thereof, considering their structural safety; |
| 3. | Remaining structures, where standards for the number of dilapidated and substandard structures provided for in subparagraph 3 (d) of attached Table 1 are fully met; |
| 4. | Structures that the Authority to formulate improvement plans recognizes as inevitably included in an improvement zone for constructing infrastructure, such as access roads; |
| (4) | "Safety inspection institution specified by Presidential Decree" in Article 12 (4) of the Act means each of the following institutions: |
| (5) | To ensure the expertise in on-site checks, the Authority to formulate improvement plans may request the institution referred to in paragraph (4) 1 or 3 to conduct on-site checks. In such cases, the institution requested to conduct on-site checks shall submit the results thereof to the Authority within 20 days after receipt of such request. <Newly Inserted by Presidential Decree No. 28873, May 8, 2018> |
| (6) | Safety inspections for reconstruction projects under Article 12 (5) of the Act shall be categorized as follows: <Amended by Presidential Decree No. 28873, May 8, 2018> |
| 1. | Assessment of structural safety: Safety inspections for assessing structural or functional defects of dilapidated and substandard structures defined in Article 2 (1); |
| 2. | Assessment focused on structural safety and residential environments: Safety inspections for comprehensively assessing residential environments, such as structural safety including structural and functional defects, convenience, and comfortableness of dwelling in any dilapidated and substandard structure other than the dilapidated and substandard structures referred to in subparagraph 1. |
| (7) | Except as otherwise expressly provided for in paragraphs (1) through (6), the procedure for requesting safety inspection under Article 12 (2) of the Act and further details necessary for processing such request may be prescribed by City/Do ordinance. <Amended by Presidential Decree No. 28873, May 8, 2018> |
| Article 11 (Assessment of Validity of Findings from Safety Inspections) |
| (1) | Upon receipt of a report on findings from a safety inspection, submitted by an institution specialized in safety examinations referred to in Article 10 (4) 2 pursuant to Article 13 (1) of the Act, a Mayor/Do Governor may request any of the safety inspection institutions referred to in Article 10 (4) 1 or 3 to assess the validity of the report on findings from a safety inspection pursuant to Article 13 (2) of the Act. |
| (2) | Expenses incurred in assessing the validity of findings from a safety inspection under Article 13 (2) or (3) of the Act shall be borne by the Minister of Land, Infrastructure and Transport or the competent Mayor/Do Governor, whoever requested an assessment of the validity. |
| (3) | An institution requested to assess the validity of findings from a safety inspection under Article 13 (2) or (3) of the Act shall submit its assessment to the competent Mayor/Do Governor within 60 days from the date it was requested to assess the validity: Provided, That the aforesaid period may be extended only once by up to 30 days, in special circumstances. |
| Article 12 (Proposals to Formulate Improvement Plans) |
| (1) | When the owner of a plot of land or structure intends to propose the Authority to formulate improvement plans to formulate an improvement plan pursuant to Article 14 (1) of the Act, he or she shall obtain consent thereto from persons involved at least at the ratio specified by City/Do ordinance, which shall not exceed 2/3 of the owners of a plot of land or structure and persons owning not more than 2/3 of the area of the land involved, and then shall submit a proposal in the Form prescribed by City/Do ordinance to the Authority to formulate improvement plans, along with documents of the improvement plan, an explanatory statement of the plan and other necessary documents. |
| (2) | Upon receipt of a proposal under paragraph (1), the Authority to formulate improvement plans shall notify the proposer of his or her determination on whether to reflect the proposal in the improvement plan, within 60 days from the date of the proposal: Provided, That the aforesaid period may be extended only once by up to 30 days, in special circumstances. |
| (3) | When the Authority to formulate improvement plans reflects a proposal submitted under paragraph (1) in the improvement plan, the Authority may utilize the documents of the improvement plan and the explanatory statement submitted along with the proposal for formulating the improvement plan. |
| (4) | Except as otherwise expressly provided for in paragraphs (1) through (3), further details necessary for proposing the formulation of improvement plans may be prescribed by City/Do ordinance. |
| Article 13 (Residents' Public Inspection for Designating Improvement Zones) |
| (1) | When the Authority to formulate improvement plans intends to make an improvement plan available to residents for public inspection pursuant to Article 15 (1) of the Act, the Authority shall publicly pre-announce the purpose and place for public inspection in the public gazette, etc. of the relevant local government; and shall keep relevant documents at the place for public inspection. |
| (2) | Any resident may present his or her written opinion to the Authority to formulate improvement plans during the period specified for public inspection under Article 15 (1) of the Act. |
| (3) | The Authority to formulate improvement plans shall review the opinion submitted pursuant to paragraph (2); and shall adopt such opinion, if the Authority deems it necessary to adopt such opinion under Article 15 (1) of the Act; or if not adopted, shall notify the resident who presented such opinion of the grounds therefor. |
| 1. | Where the area of an improvement zone is changed by less than 10 percent (excluding where an improvement zone is subdivided or improvement zones are consolidated or combined, pursuant to Article 18 of the Act); |
| 2. | Where the location of any fundamental infrastructure is changed and where the scale of any fundamental infrastructure is changed by less than 10 percent; |
| 3. | Where the plan to construct common facilities is amended; |
| 4. | Where the disaster prevention plan is amended; |
| 5. | Where the scheduled timing for implementing an improvement project is adjusted by not more than three years; |
| 6. | The main use of a structure (referring to the use of the largest floor area in the relevant structure; hereinafter the same shall apply) is changed to any of uses prescribed in attached Table 1 of the Enforcement Decree of the Building Act; |
| 7. | Where the building-to-land ratio or the floor area ratio of structures is reduced or increased by less than 10 percent; |
| 8. | Where the maximum height of structures is changed; |
| 11. | Where an improvement plan is amended according to the outcomes of deliberation under relevant statutes and regulations, including a traffic impact assessment under the Urban Traffic Improvement Promotion Act; |
| 12. | Where any of the matters specified by City/Do ordinance, similar to those specified in subparagraphs 1 through 8, 10 and 11, is changed. |
| Article 14 (Methods for Making Cash Payments for Relaxing Floor Area Ratio Requirements) |
| (2) | A project implementer who intends to make cash payment pursuant to Article 17 (4) of the Act shall obtain consent from a majority of the owners of a plot of land or structure (referring to association members, where an association established pursuant to Article 35 of the Act exists). The area of the land donated by making cash payment shall not exceed 1/2 of the total donated area. |
| (3) | An amount payable in cash made under Article 17 (4) of the Act shall be determined using the arithmetic mean of the amounts appraised by at least two appraisal business entities (referring to appraisal business entities under the Act on Appraisal and Certified Appraisers) designated by the head of the relevant Si/Gun/autonomous Gu for the donated land. |
| (4) | The base date for calculating an amount payable in cash under paragraph (3) shall be the date approval of the relevant project implement plan is publicly notified under Article 50 (7) of the Act (referring to approval of the initial project implementation plan in which the improvement plan regarding such cash payment is reflected): Provided, That, if a project implementer fails to apply for approval of a management and disposal plan under Article 74 by the third anniversary of the base date, such amount shall be re-calculated pursuant to paragraph (3) as at the day immediately following the third anniversary of the base date. |
| (5) | A project implementer shall pay the amount calculated pursuant to paragraph (3) as payable in cash to the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor or Special Self-Governing Province Governor or the head of the relevant Si or Gun (excluding the head of a Gun in a Metropolitan City). |
| (6) | When the Special Metropolitan City Mayor or a Metropolitan City Mayor intends to use an amount received under paragraph (5), he or she shall seek the opinion of the head of the relevant Gu or the head of the relevant Gun in the Metropolitan City having jurisdiction over the relevant improvement project. |
| (7) | Except as otherwise expressly provided for in paragraphs (3) through (6), detailed guidelines for calculating an amount payable in cash, the methods for paying and using such amount and other necessary matters may be prescribed by City/Do ordinance. |
| Article 15 (Activities Subject to Permission) |
| 1. | Building a structure or other related activities: Building a structure (including temporary structures) under Article 2 (1) 2 of the Building Act or changing the special use of such structure; |
| 3. | Changing the form or quality of land: Changing the shape of land by cutting, filling, leveling or paving it; land excavation; reclaiming land from public waters; |
| 4. | Extracting soil and stone: Extracting soil and stone, including earth, sand, gravel and rock: Provided, That activities for changing the form or quality of land constitute the activities referred to in subparagraph 3; |
| 6. | Storing materials: Storing materials not easily movable, for at least one month; |
| 7. | Lumbering or planting bamboo or trees. |
| (2) | If a project implementer exists when the head of a Si/Gun/autonomous Gu intends to permit activities specified in any subparagraph of paragraph (1) pursuant to Article 19 (1) of the Act, the head of the Si/Gun/Gu shall seek the project implementer's opinion thereon. |
| 1. | Installing portable structures specified by Ordinance of the Ministry of Land, Infrastructure and Transport to use them directly for producing agricultural or fishery products; |
| 2. | Changing the form or quality of land for cultivation; |
| 3. | Extracting soil and stone to the extent not hindering the development of an improvement zone nor damaging natural landscape; |
| 4. | Storing materials on a building site to remain in an improvement zone; |
| 5. | Temporarily planting ornamental bamboo or trees (excluding temporarily planting such bamboo or trees on farmland). |
| (4) | A person obligated to report an activity under Article 19 (3) of the Act shall report his or her activity to the head of the relevant Si/Gun/autonomous Gu, along with the progress of the relevant construction works or project and the implementation plan, within 30 days from the date of designation and public notice of the relevant improvement zone. |
| Article 16 (Restrictions on Activities) |
| (1) | When the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu; hereinafter the same shall apply) intends to restrict activities under Article 19 (7) of the Act, he or she shall publicly pre-notify the area subject to restriction, the grounds for restriction, restricted activities and the period of restriction. |
| (2) | If the person who intends to restrict activities under paragraph (1) is the Minister of Land, Infrastructure and Transport, he or she shall refer the intended restriction to the Central Urban Planning Committee established pursuant to Article 106 of the National Land Planning and Utilization Act (hereinafter referred to as the "Central Urban Planning Committee") for deliberation; and if such person is a Mayor/Do Governor or the head of a Si/Gun/Gu, he or she shall refer the intended restriction to the local urban planning committee established in the relevant local government pursuant to Article 113 of said Act (hereinafter referred to as "local urban planning committee") for deliberation. |
| (3) | If the person who intends to restrict activities is the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor, he or she shall seek the opinion of the head of the Si/Gun/autonomous Gu having jurisdiction over the area subject to the intended restriction, before deliberation by the Central Urban Planning Committee or the relevant local urban planning committee. |
| (4) | Public notice given by the Minister of Land, Infrastructure and Transport under paragraph (1) shall be published in the Official Gazette; and such public notice given by a Mayor/Do Governor or the head of a Si/Gun/Gu shall be published in the public gazette of the relevant local government. |
| (5) | Any person who intends to engage in an activity specified in any subparagraph of Article 19 (7) of the Act in an area in which activities are restricted under Article 19 (7) of the Act shall obtain a permit for such activity from the head of the relevant Si/Gun/autonomous Gu. |
| Article 17 (Subsidizing Expenses of Promoters' Committee or Association) |
| 1. | Service fees for specialized management of an improvement project; |
| 4. | Other expenses specified by City/Do ordinance as used by the relevant committee for establishing an association, established pursuant to Article 31 of the Act, or the relevant association to engage in the business activities specified in Article 32, 44 or 45 of the Act. |
| (2) | The rate of subsidization of expenses and the method for subsidization under paragraph (1) and other necessary matters shall be prescribed by City/Do ordinance. |
CHAPTER III IMPLEMENTATION OF IMPROVEMENT PROJECTS
SECTION 1 Methods for Implementing Improvement Projects
| Article 18 (Exception to Tenants' Consent) |
"If the number of households of tenants does not exceed 1/2 of the number of the owners of a plot of land or structure or if any of the reasons specified by Presidential Decree exists" in the proviso to Article 24 (3) of the Act means any of the following cases: | 1. | Where the number of households of tenants does not exceed 1/2 of the number of owners of a plot of land or structure; |
| 2. | Where a Mayor/Do Governor concludes it unnecessary to build rental housing because rental housing units, including public rental housing units, are sufficiently available for tenants in the Si/Gun/Gu in which the relevant improvement zone is located as at the date the improvement zone is designated and publicly announced under Article 16 (2) of the Act; |
| Article 19 (Requirements for Co-Implementers of Redevelopment Projects) |
| Article 20 (Public Notice of Designation of Project Implementers) |
| 1. | The category and name of the relevant improvement project; |
| 2. | The name and address of the project implementer (if the project implementer is a corporation, referring to the name and principal place of business of the corporation and the name and address of its representative; hereinafter the same shall apply); |
| 3. | The location and area of the improvement zone (if an improvement zone is subdivided into at least two zones under Article 18 of the Act, referring to each subdivided zone; hereinafter the same shall apply); |
| 4. | The scheduled dates of commencement and completion of the improvement project. |
| (2) | The head of a Si/Gun/autonomous Gu shall give notice to the owners of a plot of land or structure of the matters specified in paragraph (1), as publicly notified under the main sentence of Article 26 (2) of the Act and the main sentence of Article 27 (2) of the Act. |
| Article 21 (Requirements for Qualified Developers) |
"Person who meets the requirements prescribed by Presidential Decree" in Article 27 (1) of the Act means any of the following: | 1. | A person owning at least 50 percent of the whole area of the improvement zone and recommended by at least 50 percent of the owners of a plot of land or structure; |
| 3. | A trust business entity to which at least 1/3 of the whole area of the improvement zone is placed in trust. |
| Article 22 (Determination to Authorize Project Agents to Commence Projects and Effect of Determination) |
| (1) | When the head of a Si/Gun/autonomous Gu determines to directly implement an improvement project or to authorize a qualified developer provided for in Article 27 of the Act (hereinafter referred to as "qualified developer"), the Korea Land and Housing Corporation or a local government-invested public corporation to implement an improvement project on his or her behalf (hereinafter referred to as "determination to authorize a project agent to commence a project"), pursuant to Article 28 (1) of the Act, he or she shall publicly notify the following matters in the public gazette, etc. of the relevant local government: |
| 2. | The date of determination to authorize a project agent to commence a project; |
| 3. | The project agent (referring to the head of a Si/Gun/autonomous Gu, the Korea Land and Housing Corporation, a local government-invested public corporation or qualified developer authorized to perform an improvement project as a project agent pursuant to Article 28 (1) of the Act; hereinafter the same shall apply); |
| 4. | The scope of works to be performed by the project agent. |
| (2) | The head of a Si/Gun/autonomous Gu shall give notice of the details publicly notified under paragraph (1) to the owners of a plot of land or structure and the relevant project implementer. |
| (3) | Where a project agent performs an improvement project on behalf of the project implementer pursuant to Article 28 (1) of the Act, it shall perform the duties of the project implementer and manage property in its own name and on the project implementer's account from the day immediately following the date public notice is given under paragraph (1) until the date public notice of the completion of the project is given by the project agent under Article 23. In such cases, dispositions, procedures and other activities made, taken and performed by or regarding the project implementer pursuant to the Act, an order issued under the Act or articles of association, etc. shall be deemed made, taken and performed by or regarding the project agent. |
| (4) | When a project agent intends to dispose of property, borrow funds or engage in any activity that will impose a financial burden on the project implementer, it shall obtain approval from the head of the relevant Si/Gun/autonomous Gu, if the project agent is not the head of a Si/Gun/autonomous Gu. |
| (5) | A project agent that engages in any of the business activities specified in paragraphs (3) and (4) shall exercise a duty of due care as a good fiduciary; and may request cooperation from the project implementer, as necessary. The project implementer shall comply with such request, except in special circumstances. |
| Article 23 (Completion of Performance as Project Agents) |
| (1) | When the ground for appointing a project agent under any subparagraph of Article 28 (1) of the Act ceases to exist or the registration is completed under Article 88 (1) of the Act, the project agent shall complete its performance of the relevant project. In such cases, the project agent shall pre-report its intention to complete the performance of the project to the head of the relevant Si/Gun/autonomous Gu, if the project agent is not the head of a Si/Gun/autonomous Gu. |
| (2) | Upon completion of a project agent's performance of a project under paragraph (1), the head of the relevant Si/Gun/autonomous Gu shall publicly notify the matters specified in Article 22 (1) and the date of completion of the project agent's performance of a project in the public gazette, etc. of the relevant local government; and shall give notice thereof to the owners of a plot of land or structure and the project implementer, respectively. |
| (3) | When the completion of a project agent's performance of a project is publicly notified pursuant to paragraph (2), the project agent shall without delay transfer the project to the project implementer; and the project implementer shall accept the transfer of the project, unless the project implementer has just cause for rejection. |
| (4) | Upon completion of the transfer and acceptance of an improvement project under paragraph (3), rights and obligations that the project agent acquired or assumed while performing the project shall be succeeded to by the project implementer. |
| (5) | When a project agent claims reimbursement of fees or costs from the project implementer after it completes the performance of the relevant project under paragraph (1), the project agent may ask for interest on the fees or costs from the day it disbursed such fees or costs. |
| Article 24 (Contracting Methods and Selection of Contractors) |
| (1) | "Cases specified by Presidential Decree according to the scale of a contract, the occurrence of a disaster or other relevant factors" in the proviso to Article 29 (1) of the Act means the following: |
| 1. | Where it is intended to allow only invited bidders to participate in a competitive bidding process: The relevant case shall meet any of the following criteria: |
| (a) | Where it is impracticable for any person, other than those who have special equipment, technology, materials, goods or performance records based upon the nature or purpose of the contract, to attain the objectives of the contract and the number of bidders does not exceed 10; |
| (b) | Where the relevant project consists of construction works under the Framework Act on the Construction Industry (excluding specialized projects; hereafter in this Article the same shall apply), with an estimated price not exceeding 300 million won; |
| (d) | Where the relevant project consists of construction works performed under any statute or regulation governing construction works (excluding the Framework Act on the Construction Industry), the estimated price of which does not exceed 100 million won; |
| (e) | Where the contract is for manufacturing or purchasing goods, providing services or conducting other activities, the estimated price of which does not exceed 100 million won; |
| 2. | Where it is intended to enter into a no-bid contract through negotiations: The relevant case shall meet any of the following criteria: |
| (c) | Where the relevant project consists of construction works performed under any statute or regulation governing construction works (excluding the Framework Act on the Construction Industry), the estimated price of which does not exceed 80 million won; |
| (d) | Where the contract is for manufacturing or purchasing goods, providing services or conducting other activities, the estimated price of which does not exceed 50 million won; |
| (e) | Where there is no enough time to award a contract through a competitive bidding process to cope with any unforeseen event, such as litigation and recovery from a disaster; |
| (f) | Where no bidder succeeds in a general competitive bidding process or where bidding failed at least twice because no more than one bidder participated in the bidding. |
| 3. | A contract for construction works performed pursuant to any statute or regulation governing construction works (excluding the Framework Act on the Construction Industry), the estimated price of which exceeds 200 million won; |
| 4. | A contract for manufacturing or purchasing goods, providing services or conducting any activity, the estimated price of which exceeds 200 million won. |
| (3) | "Improvement project not bigger than the scale specified by Presidential Decree" in the proviso to Article 29 (4) of the Act means an improvement project for not more than 100 association members. |
| (4) | "Competitive bidding prescribed by Presidential Decree" in Article 29 (7) of the Act means a bidding method that meets all the following requirements: |
| 1. | It shall be a general competitive bidding process; a limited competitive bidding process; or an invited bidding process; |
| 2. | The bidding process referred to in subparagraph 1 shall be publicly announced at least once in daily newspapers distributed in the relevant area; and an on-site presentation session shall be held for prospective bidders; |
| 3. | A joint promotional presentation session shall be held for residents in the relevant area; |
| 4. | The submitted bids shall be submitted for voting by the owners of a plot of land or structure, and the result of the vote shall be reflected in selecting the successful bidder. |
SECTION 2 Committees for Promoting Establishment of Association and Establishment of Associations
| Article 25 (Consent of Owners of Plots of Land or Structures to Organize Promoters' Committee) |
| (1) | A person who intends to obtain consent of the owners of a plot of land or structure pursuant to Article 31 (1) of the Act shall enter details about the chairperson of the promoters' committee (hereinafter referred to as "chairperson of the promoters' committee"), members of the promoters' committee, business activities of the promoters' committee under Article 32 (1) of the Act and the operating rules under Article 34 (1) of the Act in the Consent Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; and then shall obtain consent of the owners of a plot of land or structure on the Form. |
| (2) | Pursuant to Article 31 (3) of the Act, a person who intends to obtain consent of the owners of a plot of land or structure shall explain and notify the following matters to such owners: |
| 1. | Matters and objectives to which such persons intend to obtain consent; |
| 2. | Matters to which consenters are deemed to consent; |
| 3. | Procedures and methods for withdrawing consent or expressing dissent pursuant to Article 33 (2). |
| Article 26 (Business Activities of Promoters' Committee) |
| 2. | Receiving written consents from the owners of a plot of land or structure; |
| 3. | Holding an inaugural general meeting for establishing an association (hereinafter referred to as "inaugural general meeting"); |
| 4. | Preparing draft articles of association; |
| 5. | Other business activities specified by the operating rules of the promoters' committee. |
| Article 27 (Methods and Procedures for Holding Inaugural General Meetings) |
| (2) | A promoters' committee (referring to the representative of the owners of a plot of land or structure who promote the establishment of an association, if no promoters' committee is organized pursuant to the former part of Article 31 (4) of the Act) shall publish the purposes, agenda, date, time, venue for the inaugural general meeting, qualifications for attending the meeting, required materials, etc. to the public via its website; and shall give notice of the same information to the owners of a plot of land or structure by registered mail, by not later than 14 days before the inaugural general meeting. |
| (3) | The inaugural general meeting shall be convened by the chairperson of the promoters' committee (referring to the representative of the owners of a plot of land or structure, if no promoters' committee is organized pursuant to the former part of Article 31 (4) of the Act; hereafter in this Article the same shall apply), ex officio or upon request from at least 1/5 of the owners of a plot of land or structure: Provided, That, if the promoters' committee chairperson fails to convene the inaugural general meeting within two weeks, despite the request from at least 1/5 of the owners of a plot of land or structure, the representative of the persons requesting the meeting may convene the meeting. |
| (4) | Resolutions on the following matters shall be adopted at an inaugural general meeting: |
| 1. | Ratification of articles of association; |
| 2. | Appointment of an executive officer of the association under Article 41 of the Act (hereinafter referred to as "association executive officer"); |
| 3. | Appointment of a representative; |
| 4. | Other necessary matters specified in the prior notice given pursuant to paragraph (2). |
| (5) | A majority of the owners of a plot of land or structure (limited to the owners of a plot of land or structure who consent to establish an association, in cases of a reconstruction project) shall constitute a quorum; and any resolution thereof shall require a concurring vote of at least a majority of the owners of a plot of land or structure present in the meeting: Provided, That association executive officers and representatives shall be elected according to the articles of association ratified pursuant to paragraph (4) 1. |
| (6) | Except as otherwise provided for in paragraphs (1) through (5), if no promoters' committee is organized pursuant to Article 31 (4) of the Act for an improvement project implemented with public assistance under Article 118 of the Act, procedures for conducing the business activities specified in subparagraphs 2 through 4 of Article 26 and other necessary matters may be prescribed by City/Do ordinance. |
| Article 28 (Operating Rules of Promoters' Committee) |
| 1. | Accounting of operating expenses of the promoters' committee; |
| 2. | Selection of a management entity specialized in improvement projects under Article 102 of the Act (hereinafter referred to as "management entity specialized in improvement projects"); |
| 3. | Other business activities that the Minister of Land, Infrastructure and Transport deems necessary for efficiently implementing an improvement project. |
| Article 29 (Operation of Promoters' Committee) |
| (1) | Pursuant to Article 34 (5) of the Act, a promoters' committee shall post the following information at a place readily visible to the owners of a plot of land or structure; or shall publish the same via Internet, etc.; and shall give written notice of such information to the owners of a plot of land or structure, if necessary, to ensure that the owners of a plot of land or structure are fully informed thereof: Provided, That notice of the matters specified in subparagraphs 8 and 9 shall be given to the owners of a plot of land or structure who consented to organize the promoters' committee by registered mail, by not later than 60 days before the filing date of an application for authorization to establish an association under Article 35 of the Act (hereinafter referred to as "authorization to establish an association"): |
| 2. | Selection of a management entity specialized in improvement projects; |
| 3. | A draft project implementation plan, including the maximum cost to be borne by the owners of a plot of land or structure; |
| 4. | Selection of members of the promoters' committee; |
| 5. | Matters that could incur a financial burden for the owners of a plot of land or structure or cause a change in any right or obligation of the owners of a plot of land or structure; |
| 7. | Methods and procedures for holding an inaugural general meeting; |
| 8. | Withdrawing consent to establish of an association (including expression of dissent under the proviso to Article 31 (2) of the Act) and the method for withdrawal; |
| 9. | Matters to be included in a written consent to establish an association under Article 30 (2). |
| (2) | A promoters' committee shall post a quarterly statement of expenditure at a place readily visible to the owners of a plot of land or structure; or shall publish such statement via Internet, etc. to make it available to the owners of a plot of land or structure for inspection. |
| Article 30 (Methods for Applying for Authorization to Establish Associations) |
| (1) | Consent of the owners of a plot of land or structure under Article 35 (2) through (4) of the Act shall be obtained in the Consent Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (2) | The Consent Form referred to in paragraph (1) shall contain the following information: |
| 1. | Schematic design of the structure to be built; |
| 2. | The cost and expenses of the relevant improvement project (hereinafter referred to as "improvement project costs"), including construction cost; |
| 3. | Standards for apportioning the improvement project costs; |
| 4. | Vesting ownership in property after completion of the project; |
| 5. | The association's articles of association. |
| (3) | When the establishment of an association is authorized, the association shall notify the owners of a plot of land or structure of details of the authorization, as stipulated in its articles of association; and shall make such details available to interested persons for inspection. |
| Article 31 (Modification of Minor Matters in Authorization to Establish Associations) |
| 1. | Obvious mistakes, typographical errors and omissions; |
| 2. | The name and principal place of business of the association and the name and address of the president of the association (limited to where the president of the association is not replaced); |
| 3. | Replacing an association member or admission of a new association member, where an association member's rights are transferred by the sale of a plot of land or structure or by other event; |
| 4. | Replacing an association executive officer or a representative (limited to where such replacement occurs according to a resolution in a general meeting under Article 45 of the Act or a resolution in a representatives' meeting under Article 46 of the Act); |
| 5. | Amending the schematic designs of the structures to be built; |
| 6. | Changing any of the improvement project costs; |
| 7. | Where association members are changed, as stipulated by articles of association, due to cash settlements; |
| 8. | Matters that shall be modified according to the amended improvement zone or improvement plan under Article 16 of the Act: Provided, That a change in the area of the improvement zone by at least 10 percent shall be excluded herefrom; |
| 9. | Other matters specified by City/Do ordinance. |
| Article 32 (Provision of Information including Estimated Charges) |
"Information specified by Presidential Decree, including estimated charges" in Article 35 (8) of the Act means the following: | 1. | The estimated amount of the charge apportioned to the owners of each plot of land or each structure and the ground for calculating the amount; |
| 2. | Information specified by City/Do ordinance regarding the calculation of estimated charges, etc. |
| Article 33 (Methods for Counting Number of Consenting Owners of Plots of Land or Structures) |
| (1) | The number of consenting owners of a plot of land or structure under Article 12 (2), 28 (1) or 36 (1) of the Act or Article 12, 14 (2) or 27 of this Decree (referring to the landowners in counting the number of consenters related to an area of land; hereafter in this Article the same shall apply) shall be determined according to the following guidelines: |
| 1. | In cases of a residential environment improvement project or a redevelopment project, the number shall be determined as follows: |
| (a) | If one lot of land or structure is co-owned by several persons, one person representing such persons shall be deemed the owner of the plot of land or structure: Provided, That, if one lot of land or structure in a traditional market or a shopping district, defined in Article 2 of the Special Act on the Development of Traditional Markets and Shopping Districts, is located in a redevelopment zone and is co-owned by several persons, one person representing such persons with consent of at least 3/4 of the owners of the plot of land or structure may be determined as the owner of the plot of land or structure; |
| (b) | If a plot of land is encumbered by a surface right, one person representing the owner of the plot of land and the person holding the surface right in the plot of land shall be deemed the owner of the plot of land or structure; |
| (c) | If one person owns several lots of land or several structures, the owner of such lots of land or structures shall be deemed one owner, regardless of the number of lots of land or structures: Provided, That, where the owners of a plot of land or structure implement a redevelopment project pursuant to Article 25 (1) 2 of the Act, the number of the owners of a plot of land or structure at the time of designation of the relevant improvement zone shall be counted in determining the number of owners of a plot of land or structure regarding the plots of land or structures that the owners of a plot of land or structure acquire for implementing the improvement project after the improvement zone is designated, but the number of consenting owners shall be determined according to the intention of the owners who acquire such land or structures; |
| (d) | Where several persons co-own at least two plots of land or structures, one person representing such co-owners shall be determined as the owner of the plots of land or structures; |
| 2. | In cases of a reconstruction project, the number shall be determined as follows: |
| (a) | Where ownership in a plot of land or a strata title in a structure is co-owned by several persons, one person representing such persons shall be deemed the owner of the land or structure; |
| (b) | Where one person has ownership in at least two lots of land or a strata title in at least two units of a structure, such owner of the land or structure shall be deemed one owner, regardless of the ownership or strata title of the number of lots of land or units of structure; |
| (c) | Where several persons co-own title in at least two lots of land or a strata title in at least two units of a structure, one person representing such co-owners shall be determined as the owner of the land or structure; |
| 3. | Any person who acquires a plot of land or structure from a person who consented to organize a promoters' committee or to establish an association shall be deemed to consent to organize the promoters' committee or to establish the association; |
| 4. | If a person failed to have his or her resident registration number recorded in the relevant Land Register, Building Register, Land Cadastre or Building Cadastre as at the time he or she was recorded as the owner of the relevant property; his or her registered address at that time is different from his or her current address; and his or her whereabouts is unknown, such person shall be disregarded for counting the number of the owners or co-owners of a plot of land or structure; |
| 5. | The property management authority responsible for each parcel of state or public land shall be deemed the owner of such land. |
| 1. | The owner of a plot of land or structure may withdraw consent or express dissent until before an application for authorization, permission, etc. is filed based on such consent; |
| 2. | Notwithstanding subparagraph 1, the owner of a plot of land or structure may withdraw consent in either of the following cases within 30 days from the date of initial consent: Provided, That the owner of a plot of land or structure may withdraw consent in the case referred to in item (b) after the inaugural general meeting for establishing an association under Article 32 (3) of the Act, even within 30 days from the date of initial consent: |
| (b) | Consent to establish an association under Article 35 of the Act (limited to where any of the matters specified in Article 30 (2) is not changed after consenting). |
| (3) | The owner of a plot of land or structure who intends to withdraw consent or express dissent under paragraph (2) shall write his or her name and place his or her fingerprint on a letter of withdrawal and shall dispatch the letter of withdrawal to the other party to the consent and the head of the relevant Si/Gun/autonomous Gu, respectively, by certified mail, along with a copy of his or her identification certificate, such as the resident registration certificate or passport, enclosed therewith. Upon receipt of such letter of withdrawal, the head of a Si/Gun/autonomous Gu shall without delay notify the other party to the consent of the receipt of such letter of withdrawal. |
| (4) | Withdrawing consent or expressing dissent under paragraph (2) takes effect at the earlier of the time a letter of withdrawal is delivered to the other party to the consent under the former part of paragraph (3), and the time the head of the relevant Si/Gun/autonomous Gu notifies the other party to the consent of the receipt of the letter of withdrawal under the latter part of paragraph (3). |
| Article 34 (Methods for Stamping Consent Forms) |
| (1) | Any person who wishes to have a Consent Form stamped under Article 36 (3) of the Act shall state details required under Article 25 (1) or 30 (2) in the Consent Form; and shall apply for stamping to the head of the relevant Si/Gu/autonomous Gu, along with relevant documents attached thereto. |
| (2) | Upon receipt of an application under paragraph (1), the head of a Si/Gu/autonomous Gu shall examine formalities, including whether required details are stated in the Consent Form; and then shall stamp the Consent Form after allocating a serial number on it. |
| (3) | The head of a Si/Gu/autonomous Gu shall deliver the stamped Consent Form to the applicant within 20 days from the filing date of the application under paragraph (1). |
| Article 35 (Special Provisions concerning Reuse of Consent Forms of Owners of Plots of Land or Structures) |
The requirements for reusing Consent Forms of the owners of a plot of land or structure under Article 37 (1) of the Act are as follows: | (a) | An association shall give notice to the owners of a plot of land or structure stating that the Consent Forms they have submitted may be re-used and the procedure and method for expressing dissent; |
| (b) | At least 60-day period for expressing dissent shall be clearly stated in the notice given under item (a); |
| (a) | An association shall give notice to the owners of a plot of land or structure to explain that the Consent Forms they have submitted may be re-used and the procedure and method for expressing dissent; |
| (b) | At least 90-day period for expressing dissent shall be clearly stated in the notice given under item (a); |
| (c) | Details of changes in the relevant improvement project, such as changes in the improvement zone; the association's articles of association; the improvement project cost; the estimated charge payable by each person and the total floor area of the structures to be built, shall be included in the notice given under item (a); |
| (d) | The maximum limit to all the following changes shall be less than 10/100: |
| (i) | A change in the area of the relevant improvement zone; |
| (ii) | An increase in the improvement project cost (excluding an increase in the producer price and the amount of cash settlements under Article 73 of the Act); |
| (iii) | A change in the total floor area of structures to be newly built; |
| (e) | The objectives and method for the improvement project that the association, the authorization to establish which was finally nullified or revoked, intended to implement shall be the same as the objectives and method for the improvement project that the association to be newly established intends to implement; |
| (f) | An inaugural general meeting for establishing a new association shall be held within three years from the date the nullification or revocation of the establishment of the former association became final and conclusive. |
| Article 36 (Matters to Be Registered regarding Associations) |
| 1. | The objectives for establishment; |
| 2. | The association's name; |
| 3. | The principal place of business; |
| 4. | The date of authorization for establishment; |
| 5. | Names and addresses of executive officers; |
| 6. | Details of restrictions, if any executive officer's authority to represent the association is restricted. |
| Article 37 (Association Members) |
| (1) | "Period specified by Presidential Decree" in Article 39 (2) 4 of the Act means either of the following periods. If an owner acquired ownership in a house by inheritance from a decedent in such cases, the period for which the decedent had owned and resided in the house shall be added to such periods: |
| 1. | The period of ownership: 10 years; |
| 2. | The period of residence (based on the relevant resident registration record under Article 7 of the Resident Registration Act; if the owner does not reside in the house but his or her spouse or any of his or her lineal ascendants or descendants resides in the house, the period of residence by such person shall be added to the period of residence): Five years. |
| 1. | Where a person who has continuously owned a structure included in a reconstruction project for at least three years, although no application for authorization for implementing the project has been filed for three years since the date of authorization to establish the relevant association (if an owner acquired such structure by inheritance from a decedent, the period for which the decedent had owned it shall be added to the period of ownership; hereafter in subparagraphs 2 and 3 the same shall apply), transfers the structure to a third person before an application for authorization for implementing the project is filed; |
| 2. | Where a person who has continuously owned a plot of land or structure included in a reconstruction project for at least three years, although the project has not commenced within three years from the date of approval of the project implementation plan, transfers the structure to a third person before the project commences; |
| 3. | Where a person has continuously owned a plot of land included in a reconstruction project for at least three years, although the project has not been completed even after three years from the date of commencement; |
| 5. | Where a plot of land or structure included in a reconstruction project is sold through an auction or public auction because its owner fails to pay any debt to the State, a local government or a financial institution (referring to any of the financial institutions referred to in the items of subparagraph 1 of Article 71 of the Enforcement Decree of the Housing Act); |
| 6. | Where a contract for transferring a structure or plot of land (limited to where the date of contract can be verified with the details of payment, such as a contract deposit) was executed before the relevant area is designated as a high-speculation area under Article 63 (1) of the Housing Act (hereinafter referred to as "high-speculation area") and the transaction of real estate is reported pursuant to Article 3 of the Act on Report on Real Estate Transactions, Etc., within 60 days from the date of designation of the high-speculation area. |
| Article 38 (Mandatory Provisions of Articles of Association) |
| 1. | The category and name of the relevant improvement project; |
| 2. | The terms of office of executive officers, the allocation of duties among executive officers, performance of duties as acting executive officers, etc.; |
| 3. | The organization, opening and functions of a representatives' meeting, the method for exercising voting rights in the meeting and other matters regarding the operation of the meeting; |
| 5. | Matters regarding a management entity specialized in improvement projects; |
| 6. | Accounting and contracting for implementing the relevant improvement project; |
| 7. | Estimation of the allocated cost of fundamental infrastructure and common facilities; |
| 8. | Methods for public announcement, public inspection and notification; |
| 9. | The method for appraisal rights in land, structures, etc.; |
| 10. | The management and disposal plan under Article 74 (1) of the Act (hereinafter referred to as "management and disposal plan") and settlement (including matters regarding collection and payment in installments); |
| 11. | Amending the project implementation plan; |
| 12. | Merging with another association or dissolution of the association; |
| 13. | Construction and disposal of rental housing; |
| 14. | The scope of matters subject to resolution in a general meeting; |
| 15. | Rights and obligations of association members; |
| 16. | Hiring of employees for the association, designation of full-time executive officers, among executive officers, and remuneration for employees and full-time executive officers; |
| 17. | Other matters specified by City/Do ordinance. |
| Article 39 (Modification of Minor Matters in Articles of Association) |
| 2. | The number of association executive officers and the scope of duties; |
| 3. | Rights and duties of, and remuneration for, association executive officers, the method for appointing association executive officers, and replacement and removal of association executive officers referred to in Article 40 (1) 6 of the Act; |
| 4. | The procedures and timing for convening general meetings and the method for passing resolutions in the general meetings referred to in Article 40 (1) 10 of the Act; |
| 5. | The terms of office of executive officers, the allocation of duties among executive officers, performance of duties as acting executive officers, etc. referred to in subparagraph 2 of Article 38; |
| 6. | The organization, opening and functions of a representatives' meeting, the method for exercising voting rights in the meeting and other matters regarding the operation of the meeting referred to in subparagraph 3 of Article 38; |
| 7. | Matters regarding a management entity specialized in improvement projects referred to in subparagraph 5 of Article 38; |
| 8. | Methods for public announcement, public inspection and notification referred to in subparagraph 8 of Article 38; |
| 9. | Construction and disposal of rental housing referred to in subparagraph 13 of Article 38; |
| 10. | The scope of matters subject to resolution in a general meeting referred to in subparagraph 14 of Article 38; |
| 11. | Hiring of employees for the association, designation of full-time executive officers, among executive officers, and remuneration for employees and full-time executive officers referred to in subparagraph 16 of Article 38; |
| 12. | Other matters specified by City/Do ordinance. |
| Article 40 (Number of Association Executive Officers) |
An association shall have at least three directors pursuant to Article 41 (1) of the Act, and between one and three auditors: Provided, That, if the number of the owners of a plot of land or structure exceeds one hundred, the number of directors shall be at least five.
| Article 41 (Selection of Special Administrators of Associations) |
"Person who meets the requirements prescribed by Presidential Decree" in the proviso to Article 41 (5) of the Act means any of the following persons: | 1. | A person who has at least five years’ work experience in any business related to improvement projects after qualifying as any of the following professionals: |
| (b) | Certified public accountant; |
| (c) | Certified judicial scrivener; |
| (d) | Certified tax accountant; |
| (f) | Professional engineer specialized in urban planning or architecture; |
| (h) | Licensed administrative agent (referring to a licensed administrative agent in general service; hereinafter the same shall apply); |
| 2. | A person who has at least five years’ work experience as an association executive officer; |
| 3. | A public official or an executive officer or employee of a public institution who has at least five years’ work experience in affairs related to improvement projects; |
| 4. | A person who has at least 10 years’ work experience in affairs related to improvement projects as an employee of a management entity specialized in improvement projects; |
| 6. | A person who has at least five years’ aggregate work experience referred to in subparagraphs 1 through 5. Work experience in different professions during a certain period in such cases shall not be aggregated; only 1/2 of the period during which a person engaged in the professions referred to in paragraphs 4 and 5 shall be included in calculating work experience. |
| (2) | If the head of a Si/Gun/autonomous Gu deems it necessary to select a special administrator for an association under the proviso to Article 41 (5) of the Act (hereinafter referred to as "special administrator of an association") or if at least 1/3 of members of an association (referring to the owners of a plot of land or structure, in cases of a promoters' committee; hereafter in this Article the same shall apply) requests the head of the relevant Si/Gun/autonomous Gu to select a special administrator of the association, the head of the relevant Si/Gun/autonomous Gu may select the special administrator of the association through open invitation. In such cases, the head of the relevant Si/Gun/autonomous Gu shall seek the opinion of the relevant association or promoters' committee. |
| (3) | The special administrator of the association shall complete a training program under Article 115 of the Act of at least 60 hours, within six months after appointment: Provided, That the foregoing shall not apply where the special administrator has completed such training program of at least 60 hours during the most recent three years prior to his or her appointment. |
| (4) | The term of office of the special administrator of an association shall be three years. |
| Article 42 (Matters Subject to Resolution in General Meetings) |
| 1. | Merging with another association or dissolution of the association; |
| 2. | Appointing and dismissing representatives; |
| 3. | Amending the schematic designs of the structures to be built; |
| 4. | Changing the improvement project costs. |
| (2) | "General meeting and a general meeting held to pass a resolution to formulate or amend a project implementation plan or to formulate or amend a management and disposal plan" in the proviso to Article 45 (6) of the Act means the following general meetings: |
| 1. | An inaugural general meeting; |
| 2. | A general meeting held to pass a resolution to formulate or amend a project implementation plan; |
| 3. | A general meeting held to pass a resolution to formulate or amend a management and disposal plan; |
| 4. | A general meeting held to expend or change the improvement project cost. |
| Article 43 (Matters for Which Representatives' Meetings Are Not Permitted to Exercise Powers of General Meetings on Their Behalf) |
| 1. | Amending articles of association under Article 45 (1) 1 of the Act (a modification of any minor matter under Article 40 (4) of the Act shall be limited to cases specified by the Act or articles of association as those subject to resolution in a general meeting); |
| 3. | Executing contracts that will impose a burden on association members, except for matters stipulated in the budget under Article 45 (1) 4 of the Act; |
| 4. | Selecting and replacing a contractor, designer or appraisal business entity under Article 45 (1) 5 of the Act (an appraisal business entity selected and retained by the head of a Si/Gun/Gu under a contract entered into pursuant to Article 74 (2)); |
| 6. | Appointing and dismissing association executive officers under Article 45 (1) 7 of the Act and appointing and dismissing representatives under Article 42 (1) 2: Provided, That appointing an association executive officer (other than the president of the association) or a representative to fill a vacancy arising before the expiration of the term for which his or her predecessor was appointed, as stipulated by articles of association, shall be excluded herefrom; |
| 10. | Merging with another association or dissolution of an association under Article 42 (1) 1: Provided, That the dissolution of an association upon completion of the relevant project shall be excluded herefrom; |
| 11. | Amending the schematic designs of the structures to be built under Article 42 (1) 3; |
| 12. | Changing the improvement project costs under Article 42 (1) 4. |
| Article 44 (Representatives' Meetings) |
| (1) | Representatives shall be elected from among association members. |
| (2) | Representatives shall be appointed or dismissed as stipulated by articles of association. |
| (3) | The number of representatives shall be stipulated by articles of association within the maximum specified in Article 46 (2) of the Act. |
| (4) | The president of an association shall convene a representatives' meeting as the president deems necessary: Provided, That the president of an association shall convene a representatives' meeting within 14 days from the relevant date in either of the following cases: |
| 1. | When a request to convene a meeting is made as stipulated by articles of association; |
| 2. | When at least 1/3 of representatives (articles of association shall apply, if articles of association expressly stipulate otherwise) make a request to convene a meeting, specifying the purpose of the meeting. |
| (5) | If the president of an association does not convene a representatives' meeting, without just cause, within the period specified in the proviso to paragraph (4), against a request to convene a meeting under either subparagraph of paragraph (4), an auditor shall convene the meeting without delay; if no auditor convenes a meeting, the representative of persons requesting to convene the meeting under either subparagraph of paragraph (4) shall convene the meeting. In such cases, the auditor or representative shall obtain prior approval from the head of the relevant Si/Gun/autonomous Gu. |
| (6) | Where a representatives' meeting is convened pursuant to paragraph (5), the auditor or the representative of persons requesting to convene the meeting under either subparagraph of paragraph (4), whoever convenes the meeting; shall chair the meeting. |
| (7) | A representatives' meeting shall be convened by giving written notice of the purpose, agenda items, date, time and place of the meeting to each representative, by not later than seven days before opening the meeting. In such cases, details about objectives for convening the representatives' meeting shall be publicly announced as stipulated by articles of association. |
| (8) | A majority of the current representatives of the representatives' meeting shall constitute a quorum, and any resolution thereof shall require concurring votes by a majority of the representatives present in the meeting: Provided, That, if articles of association stipulate stricter requirements for quorum or voting, such stricter requirements shall apply. |
| (9) | A representatives' meeting may adopt resolutions only on the agenda items prior notice of which was given pursuant to the former part of paragraph (7): Provided, That the foregoing shall not apply to any agenda item adopted in the representatives' meeting, as stipulated by articles of association, among agenda items of which prior notice was not given. |
| (10) | A representative who has an interest in a specific case shall not exercise his or her voting right regarding the specific case. |
| Article 45 (Resident Representatives' Meetings) |
| (1) | A resident residents' meeting under Article 47 (1) of the Act (hereinafter referred to as "resident representatives' meeting") shall have one chairperson, one vice chairperson, and between one and three auditors. |
| 2. | Changes in the following matters: |
| (c) | Compensating for land and structures under Article 47 (5) 3 of the Act (including compensation for tenants, such as relocation expenses); |
| 4. | Changes in any matter referred to in subparagraph 3. |
| (3) | The head of a Si/Gun/autonomous Gu, the Korea Land and Housing Corporation or a local government-invested public corporation may partially subsidize a resident representatives' meeting for expenses incurred in operating the meeting, out of the relevant improvement project cost. |
| (4) | The election, replacement and dismissal of members of a resident representatives' meeting; the method of operating such meeting; funding operating expenses; and other matters necessary for operating a resident representatives' meeting, shall be determined by the resident representatives' meeting. |
SECTION 3 Project Implementation Plans
| Article 46 (Minor Modification of Approval of Project Implementation Plans) |
"To modify any of the minor matters specified by Presidential Decree" in the proviso to Article 50 (1) of the Act means any of the following: | 1. | Changing the improvement project costs by not more than 10 percent or according to approval of the relevant management and disposal plan: Provided, That the foregoing shall apply to projects for building national housing, defined in subparagraph 5 of Article 2 of the Housing Act, only where the amount of subsidies from the Housing and Urban Fund Act does not increase; |
| 2. | Extending the scale of appurtenant facilities and welfare facilities, other than structures (excluding relocation of such facilities); |
| 3. | Changing the area of a building site by not more than 10 percent; |
| 4. | Changing the interior layout or area of each housing unit by not more than 10 percent of the exclusive habitable area of each housing unit without changing the number of housing units and the exclusive habitable area of each housing unit (referring to the area included in the floor area in each housing unit supplied by the project implementer; hereafter in this subparagraph the same shall apply); |
| 5. | Changing materials for interior or exterior finishes; |
| 6. | Amendments following the fulfillment of any condition imposed upon approval of the relevant project implementation plan; |
| 7. | Changing the layout of structures or the alignment of roads in a housing complex without modifying designs for structures or the zoning for special-purpose structures; |
| 9. | Changing the name or place of business of the project implementer; |
| 10. | Amending the project implementation plan according to a modification of the improvement zone or an amendment of the improvement plan; |
| 11. | Amending the project implementation plan according to an amendment to the authorization to establish an association under the main sentence of Article 35 (5) of the Act; |
| 12. | Changing other matters specified by City/Do ordinance. |
| Article 47 (Formulation of Project Implementation Plans) |
| (2) | "Matters specified by City/Do ordinance, as prescribed by Presidential Decree" in Article 52 (1) 13 of the Act means matters specified by City/Do ordinance, among the following: |
| 1. | The category and name of the improvement project and the implementation period; |
| 2. | The location and area of the improvement zone; |
| 3. | The name and address of the project implementer; |
| 5. | A financial operating plan; |
| 6. | A list of structures that need not be demolished but require remodeling or repair and a remodeling or repair plan; |
| 7. | A list of structures, artificial structures, etc. in the improvement zone, deemed obstacles to the implementation of the improvement project; |
| 8. | A list of persons holding a right in a plot of land, a structure, etc. and a list of such rights; |
| 9. | Matters regarding the installation of utility tunnels; |
| 10. | A report and drawings of the fundamental infrastructure that will fall into disuse under Article 97 (1) of the Act and a report and drawings of the fundamental infrastructure to be newly constructed, as a consequence of the implementation of the improvement project (limited to where the project implementer is the Korea Land and Housing Corporation or a local government-invested public corporation); |
| 11. | A report and drawings of the fundamental infrastructure that will become disused under Article 97 (2) of the Act due to the implementation of the improvement project, appraisal reports issued by at least two appraisal business entities on such fundamental infrastructure, a report and drawings of the fundamental infrastructure to be newly constructed and a calculation sheet for the cost of constructing such fundamental infrastructure; |
| 12. | A report on State or public land transferred gratuitously to the project implementer; |
| 14. | A plan to demolish existing houses (including the status of building materials containing asbestos, if such materials are used; and a plan to remove and dispose of such building materials); |
| 15. | Matters regarding preferential sale, etc. to commercial tenants after completion of the improvement project. |
| Article 48 (Methods for Supplying Small Housing) |
| (1) | Small housing units that a project implementer shall supply to the transferee provided for in Article 55 (1) of the Act, among small housing units built by the project implementer pursuant to Article 54 (4) of the Act, shall be selected by public lottery, and the project implementer shall without delay notify the transferee referred to in the same paragraph of the result of the selection. |
| (2) | Where a project implementer supplies small housing units selected under paragraph (1), a Mayor/Do Governor or the head of a Si/Gun/Gu may acquire such housing units preferentially in the above-mentioned order: Provided, That, if a Mayor/Do Governor or the head of a Si/Gun/Gu is unable to acquire such small housing units, the Mayor/Do Governor shall request the Minister of Land, Infrastructure and Transport to designate a transferee. |
| (3) | Upon receipt of a request from a Mayor/Do Governor to designate a transferee under the proviso to paragraph (2), the Minister of Land, Infrastructure and Transport shall designate a transferee within 30 days; and shall notify the competent Mayor/Do Governor of the designated transferee; and the Mayor/Do Governor shall forward the notice without delay to the head of the relevant Si/Gun/Gu to discuss the supply of small housing with the transferee. |
| (5) | "If the requirements prescribed by Presidential Decree are met, such as alleviating the burden on the owners of a plot of land or structure" in the proviso to Article 55 (4) of the Act" means any of the following cases: |
| 1. | The ratio calculated by dividing the amount under item (a) by the amount under item (b) shall be less than 80/100. In such cases, the amounts under items (a) and (b) shall be calculated from the date approval of the relevant project implementation plan is publicly notified; but further details about the method for calculating such amounts shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport: |
| (a) | The amount calculated by subtracting the total project cost from the total value of building sites and structures after completion of the improvement project; |
| (b) | The total value of the land and structures prior to the commencement of the improvement project; |
| 2. | Where the competent Mayor/Do Governor deems that the burden of the owners of a plot of land or structure is excessive, based upon the improvement zone, the ratio of consenting owners of a plot of land or structure to the establishment of an association, the scale of the increase of the improvement project cost, the project period, etc. |
| 1. | If the mandatory lease period is at least 10 years: The price equivalent to 30/100 of the appraised value (referring to the arithmetic mean of the values appraised by at least two appraisal business entities designated by the head of the relevant Si/Gun/autonomous Gu; hereafter in subparagraph 2 the same shall apply); |
| 2. | If the mandatory lease period is less than 10 years: The price equivalent to 50/100 of the appraised value. |
| Article 49 (Public Inspection of Related Documents) |
In order to make available documents related to approval of a project implementation plan or the formulation of a project implementation plan to the general public pursuant to the main sentence of Article 56 (1) of the Act, the head of a Si/Gun/autonomous Gu shall publicly announce the purpose and place for public inspection in the public gazette, etc. of the relevant local government; and shall notify the owners of a plot of land or structure of the details of the public announcement.
| Article 50 (Special Provisions concerning Approval of Project Implementation Plans) |
| 1. | Article 44 of the Building Act prescribing the relationship between a building site and a road need not apply to any structure to be remained or remodeled, if it is concluded that exemption from applying the relationship will not impede accessibility to such structure; |
| 3. | Article 61 of the Building Act prescribing the building height restrictions to secure natural lighting, etc. need not apply to any remodeled structure; |
| 5. | Article 35 of the Housing Act prescribing standards for installing appurtenant facilities and welfare facilities may apply to structures to remain or be remodeled. |
| Article 51 (Request for Preferential Supply of Housing Units for Circulative Dwelling) |
| (1) | Pursuant to Article 59 (2) of the Act, a project implementer may request the Korea Land and Housing Corporation or a local government-invested public corporation to preferentially supply public rental housing units owned by the Korea Land and Housing Corporation or a local government-invested public corporation, as housing units for circulative dwelling prescribed in Article 59 (2) of the Act (hereinafter referred to as "housing units for circulative dwelling"), along with the following documents, after filing an application for approval of a management and disposal plan under Article 74 of the Act: |
| 1. | A copy of the public notice of approval of the project implementation plan; |
| 2. | A copy of the application for approval of the management and disposal plan; |
| 3. | The number of households to be relocated from the improvement zone; |
| 4. | A list of persons who wish to relocate to housing units for circulative dwelling, among the owners or tenants of houses referred to in Article 59 (1); |
| 5. | The timing for relocation and the period of use; |
| 6. | Other matters that the Korea Land and Housing Corporation or a local government-invested public corporation deems necessary. |
| (2) | Upon receipt of a request from a project implementer to supply public rental housing units under paragraph (1), the Korea Land and Housing Corporation or a local government-invested public corporation shall notify the project implementer of details about the following matters within 30 days from the date it receives such request: |
| 1. | The number of public rental housing units available for supply in the neighborhood of the relevant improvement zone; the sizes of such housing units; and when such housing units can be supplied; |
| 2. | Terms and conditions of the supply contract, including a security deposit; |
| 3. | Other matters that the Korea Land and Housing Corporation or a local government-invested public corporation deems necessary. |
| (3) | The number of housing units available for supply under paragraph (2) 1 shall not exceed 1/2 of the quantity of housing units available as at the date a request is made under paragraph (1): Provided, That the number or such housing units may exceed 1/2, if a deposit for lease on a deposit basis is likely to surge and thus it is necessary to increase the supply of housing units for circulative dwelling. |
| (4) | The Korea Land and Housing Corporation or a local government-invested public corporation shall supply housing units for circulative dwelling to a resident who is the head of a household whose average monthly income does not exceed 70 percent of average monthly income of urban workers in the preceding year (limited to persons who have resided in the relevant improvement zone for at least two years as at the date a request is made pursuant to paragraph (1)), in the following order of priority. If several persons with the same priority mutually compete, a housing unit shall be supplied preferentially to the person with the lowest average monthly income: |
| 1. | First priority: A tenant of a house demolished for implementing an improvement project (limited to persons who actually reside in the improvement zone) where the tenant owns no house; |
| 2. | Second priority: The owner of a house demolished for implementing an improvement project (limited to persons who actually reside in the improvement zone) where the tenant owns no house other than the demolished house. |
| (5) | Except as otherwise expressly provided for in paragraphs (1) through (4), detailed matters necessary for supplying housing units for circulative dwelling, such as executing a supply contract and the return of housing units for circulative dwelling, may be determined separately by the Korea Land and Housing Corporation or a local government-invested public corporation. |
| Article 52 (Sale or Lease of Housing Units for Circulative Dwelling) |
If a person residing in a housing unit for circulative dwelling wishes to continue residing in the housing unit, the Korea Land and Housing Corporation or a local government-invested public corporation may sell or continue leasing the housing unit to the person according to the following guidelines, pursuant to Article 59 (3) of the Act: | 1. | If the person residing in a housing unit for circulative dwelling wishes to purchase the housing unit, the Korea Land and Housing Corporation or a local government-invested public corporation may sell the housing unit to such person where the sale requirements and procedures provided for in Article 50-2 of the Special Act on Public Housing are satisfied. In such cases, the housing unit shall be classified into any of the rental housing referred to in Article 54 (1) of the Enforcement Decree of the Special Act on Public Housing according to the category determined at the time such housing unit is supplied as housing units for circulative dwelling; |
| 2. | If the person residing in a housing unit for circulative dwelling wishes to continue residing in the housing unit and satisfies the eligibility requirements for residing in a rental housing unit under Articles 48 and 49 of the Special Act on Public Housing, the Korea Land and Housing Corporation or a local government-invested public corporation may execute a lease contract preferentially with such person. |
SECTION 4 Measures for Implementing Improvement Projects
| Article 53 (Installation of Temporary Dwelling Facilities) |
| 1. | Where a purchase and sale contract is already executed with a third party for structure or plot of land necessary for installing a temporary dwelling facility under Article 61 (1) of the Act (hereinafter referred to as "temporary dwelling facility"); |
| 2. | Where a plan to use a structure or plot of land has been finalized before an application for use the structure or plot of land necessary for installing a temporary dwelling facility is filed; |
| 3. | Where a permit has been issued to a third party to use a structure or plot of land necessary for installing a temporary dwelling facility. |
| Article 54 (Compensation for Losses) |
| (2) | In assessing losses caused by discontinuing or suspending business operations due to an improvement project, the period of suspension of business operations shall not exceed four months: Provided, That such losses shall be assessed for the period business operations are actually suspended in either of the following cases, but the period of suspension of business operations shall not exceed two years in such cases: |
| 1. | Where it is impossible to continue business operations for at least four months due to prohibition or restriction on business operations for the relevant improvement project; |
| 2. | Where it is objectively impracticable to relocate business facilities within four months due to distinct characteristics of the relevant business as the scale of business facilities is substantial or relocation requires precision. |
| (3) | Where a person is compensated for business losses under paragraph (2), the date of public announcement of public inspection under Article 13 (1) shall be deemed the time such person is recognized as eligible for such compensation. |
| (4) | Where a person is compensated for expenses incurred in relocating his or her dwelling, the date of public announcement of public inspection under Article 13 (1) shall be deemed the time such person is recognized as eligible for such compensation. |
| Article 55 (Special Provisions concerning Floor Area Ratio Requirements) |
| (1) | A project implementer shall submit the following documents to the head of the relevant Si/Gun/autonomous Gu; and shall consult with the head of the relevant Si/Gun/autonomous Gu thereon before filing an application for approval of a project implementation plan, if the implementer wishes to become eligible for the application of a floor area ratio requirement relaxed under Article 66 of the Act: |
| 1. | A report on the status of tenants in the relevant improvement zone; |
| 2. | A plan to compensate tenants for their losses. |
| (2) | Upon receipt of a request for consultation under paragraph (1), the head of the relevant Si/Gun/autonomous Gu shall notify the project implementer of his or her opinion; and the project implementer notified that it is eligible for the relaxed floor area ratio requirement, shall include a plan to compensate tenants for their losses referred to in paragraph (1) 2, in the project implementation plan it formulates. |
| Article 56 (Special Provisions concerning Scope of Reconstruction Projects) |
| Article 57 (Special Provisions concerning Relaxation of Building Regulations) |
| (a) | Article 55-2 (7) 2 (c) of the Regulations on Standards, etc. for Housing Construction need not apply to the installation of children's playgrounds referred to in subparagraph 14 (a) of Article 2 of the Housing Act; |
| (b) | Notwithstanding the standards for installing each category of welfare facilities referred to in Article 35 (1) 4 of the Housing Act, welfare facilities referred to in subparagraph 14 of Article 2 of the Housing Act may be installed as necessary up to the maximum total area of welfare facilities to be installed (excluding children's playgrounds). |
| Article 58 (Application of Other Statutes or Regulations) |
"Area specified by Presidential Decree" in the main sentence of Article 69 (1) of the Act means either of the following special-purpose areas: <Amended by Presidential Decree No. 29045, Jul. 16, 2018>
SECTION 5 Management and Disposal Plans
| Article 59 (Procedures for Filing Applications to Purchase Building Sites or Units) |
| (1) | "Matters specified by Presidential Decree, including details of the building sites or structures for sale" in the main sentence of Article 72 (1) of the Act means the following: |
| 1. | Details of authorization for implementing a project; |
| 2. | The category and name of an improvement project and the location and area of an improvement zone; |
| 3. | The period and place for filing applications to purchase a building site or unit; |
| 4. | Details of building sites or structures for sale; |
| 5. | Eligibility requirements for filing applications to purchase a building site or unit; |
| 6. | Methods for filing applications to purchase a building site or unit; |
| 7. | Methods for reporting rights held by any person other than the owners of a plot of land or structure; |
| 8. | Measures to be taken regarding persons failing to file an application to purchase a building site or unit; |
| 9. | Other matters specified by City/Do ordinance. |
| 1. | Matters specified in paragraphs (1) 1 through 6 and 8; |
| 2. | An application to purchase a building site or unit; |
| 3. | Other matters specified by City/Do ordinance. |
| (3) | A person who intends to apply to purchase a building site or unit pursuant to Article 72 (3) of the Act shall clearly indicate his or her ownership in the application to purchase a building site or unit referred to in paragraph (2) 2; and shall submit the application to the relevant project implementer, along with a certified transcript of the register of the plot of land or structure owned by him or her or a certificate of the land reserved for replotting. If a person intends to file an application to purchase a building site or unit by mail in such cases, such application shall be sent by mail certifying that the application is dispatched during the period set for filing applications to purchase a building site or unit under paragraph (1) 3. |
| (4) | If the owner of a plot of land or structure involved in a redevelopment project intends to purchase a building site or unit (excluding a house) by paying a certain contribution, toward the cost required for implementing the improvement project, such as the construction cost, in addition to the building site or unit that the owner is entitled to acquire in exchange for the plot of land or structure previously held by such owner and provided for the redevelopment project, such owner shall clearly state such intention when filing an application to purchase a building site or unit under paragraph (3); and shall pay 10 percent of the price referred to in Article 72 (1) 1 of the Act to the project implementer. In such cases, if a person paid such contribution but fails to pay the charge apportioned under subparagraph 3 of Article 62 by the specified deadline is entitled to purchase a building site or unit (excluding a house) only in proportion to the amount paid thereby. |
| (5) | Upon receipt of an application to purchase a building site or unit under paragraph (3), a project implementer may permit the applicant not to submit accompanying documents, if it can verify such documents through administrative data matching information available for sharing under Article 36 (1) of the Electronic Government Act. |
| Article 60 (Measures for Persons Failing to File Application to Purchase Building Sites or Units) |
| (1) | When a project implementer settles the transaction with the owner of a plot of land or structure or the holder of any right in such land or structure by paying the price for such property or right in cash pursuant to Article 73 (1) of the Act, the amount of settlement money shall be determined by agreement between the project implementer and the owner of a plot of land or structure or the holder of the right in such property. In such cases, Article 68 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply to the selection of appraisal business entities for determining the amount of compensation for losses incurred by a redevelopment project. |
| (2) | "Interest rate specified by Presidential Decree" in the latter part of Article 73 (3) of the Act means any of the following rates: |
| 1. | The interest rate for the number of delayed days not exceeding six months: 5/100; |
| 2. | The interest rate for the number of delayed days exceeding six months but not exceeding twelve months: 10/100; |
| 3. | The interest rate for the number of delayed days exceeding twelve months: 15/100. |
| Article 61 (Minor Modification of Management and Disposal Plans) |
"To modify any of the minor matters specified by Presidential Decree" in the proviso to Article 74 (1) of the Act means any of the following: <Amended by Presidential Decree No. 29045, Jul. 16, 2018> | 1. | Where a simple correction is made due to a miscalculation, a typographical error, an omission, etc. (limited to where no one is disadvantaged by such correction); |
| 3. | Where a management and disposal plan is amended according to a court ruling on a claim seeking sale of any asset, right or interest under Article 64 of the Act; |
| 4. | Where a change in any right or obligation under Article 129 of the Act does not require amending the plan for building sites and units for sale; |
| 5. | Where a management and disposal plan is amended to supply rental housing units to the owners of a plot of land or structure who waive their rights to purchase a housing unit; |
| Article 62 (Contents of Management and Disposal Plans) |
| 1. | A list of lots of land, structures, and other rights previously owned or held by each holder or right-holder, when transacting by paying the price in cash under Article 73 of the Act; and the method for settlement; |
| 2. | A list of reserved areas, etc. under the former part of Article 79 (4) of the Act; the estimated value of such property; and methods for disposing of such property; |
| 3. | A plan to sell building sites and structures in proportion to the cost to be borne under Article 63 (1) 4; limits on the cost to be borne; and methods and timing for paying such cost. In such cases, the standard limit on the building site or unit a person may purchase in return for the cost borne shall be 50 percent of the cost to be borne in proportion to the value of a plot of land or structure previously owned by the person, except as otherwise expressly stipulated by articles of association, etc.; |
| 4. | A list of fundamental infrastructure to be newly constructed by implementing an improvement project and a list of fundamental infrastructure that will become disused; |
| 5. | The scheduled timing to demolish existing structures; |
| 6. | Other matters specified by City/Do ordinance. |
| Article 63 (Methods for Management and Disposal) |
| 1. | If the sizes of housing units for sale are restricted by City/Do ordinance, such housing units shall be supplied in sizes not bigger than specified sizes; |
| 2. | The site of each building shall be a separate lot of land: Provided, That the foregoing shall not apply to housing complexes; |
| 3. | Housing units shall be sold to the owners of a plot of land or structure (excluding holders of a surface right; hereafter in this paragraph the same shall apply) in the relevant improvement zone: Provided, That, in selling multi-family housing units, the owners of a plot of land or structure who do not meet criteria prescribed by City/Do ordinance concerning the amount, scale, the timing of acquisition or categories may be deemed ineligible purchasers, as prescribed by City/Do ordinance; |
| 4. | If a building site lot and a structure built thereon (excluding the part designated as a reserved area under the former part of Article 79 (4) of the Act or the part to be sold to any person other than association members) are sold to at least two persons, such lot of building site and structure shall be sold in proportion to the price of the plot of land and structure previously held by its owner (or the value of the right in the land reserved for replotting, if the method for implementing a project is changed pursuant to Article 93; hereafter in subparagraph 7 the same shall apply) and the cost borne by such owner pursuant to Article 59 (4) and subparagraph 3 of Article 62 (limited to redevelopment projects); |
| 5. | The common use area of a structure jointly acquired by eligible purchasers shall be co-owned by each right-holder, but each right-holder's share in such common use area shall be determined according to the location and floor area of the part acquired by each right-holder; and other factors; |
| 6. | Where a structure to be sold to at least two persons is built on one lot of building site, ownership in the building site shall be given in proportion to the area of the structure sold to each person (if a house and a structure for other use are built together on one lot of building site, shares in the building sites shall be distributed reasonably according to the use and size of the structure and other factors). In such cases, the land shall be co-owned by such persons; |
| 7. | The order of priority in the supply of housing units, appurtenant facilities and welfare facilities shall be determined in consideration of the value of existing lots of land or structures. Detailed guidelines in such cases may be prescribed by City/Do ordinance. |
| (2) | In cases of a reconstruction project, it shall be managed and disposed of under Article 74 (4) of the Act as follows: Provided, That, if an association has expressly different guidelines established with consent from all association members, such guidelines shall apply to a reconstruction project: |
| 1. | Paragraph (1) 5 and 6 shall apply to the reconstruction project; |
| 2. | Appurtenant facilities and welfare facilities shall be supplied to the owners of appurtenant facilities and welfare facilities (including the land appurtenant to such facilities; hereafter in this subparagraph the same shall apply): Provided, That one housing unit may be supplied in any of the following cases: |
| (a) | Where no new appurtenant or welfare facility is built and the value of existing appurtenant or welfare facilities exceeds the value calculated by multiplying the estimated value of a housing unit to be sold in the smallest size by the rate stipulated by articles of association, etc. (the rate shall be deemed 1, if no rate has been stipulated by articles of association, etc.; hereafter in item (b) the same shall apply); |
| (b) | The amount calculated by subtracting the estimated value of newly supplied appurtenant or welfare facilities from the value of existing appurtenant or welfare facilities shall exceed the value calculated by multiplying the estimated value of a housing unit to be sold in the smallest size by the rate stipulated by articles of association, etc.; |
| (c) | The estimated value of a newly built appurtenant or welfare facility to be sold in the smallest size shall exceed the estimated value of a housing unit to be sold in the smallest size. |
| Article 64 (Verification of Validity of Management and Disposal Plans) |
| (1) | "Public institutions specified by Presidential Decree" in the former part of Article 78 (3) of the Act means the following institutions: |
| 1. | The Korea Land and Housing Corporation or a local government-invested public corporation; |
| 2. | The Korea Appraisal Board. |
| Article 65 (Matters to Be Notified) |
| (1) | When a project implementer intends to copy related documents available for public inspection pursuant to Article 78 (5) of the Act, it shall give prior notice to the owners of a plot of land or structure of the plan for public inspection, such as the period and place for public inspection, and general information about related documents made available for public inspection. |
| (2) | Pursuant to Article 78 (5) and (6) of the Act, a project implementer shall give notice of the following matters to each applicant to purchase a building site or unit and shall also give notice of an amendment to the relevant management and disposal plan, when such amendment is publicly notified: |
| 1. | The category and name of the improvement project; |
| 2. | The area of the zone for the improvement project; |
| 3. | The name and address of the project implementer; |
| 4. | The date of approval of the management and disposal plan; |
| 5. | A list and price of the plot of land or structure previously owned by each eligible purchaser; and a list and estimated value of the building site or unit to be sold to each eligible purchaser. |
| Article 66 (Housing Supply) |
Where the project implementer of a residential environment improvement project implemented by any of the methods provided for in Article 23 (1) 1 through 3 of the Act and a person who builds houses on a building site supplied under Article 23 (1) 2 builds houses in an improvement zone pursuant to Article 79 (3) of the Act, the project implementer may separately determine rules on housing supply, with approval from the head of the relevant Si/Gun/autonomous Gu, within the limitations provided for in attached Table 2.
| Article 67 (Procedures for Filing Applications to Purchase Building Sites or Units Supplied to General Public) |
Article 54 of the Housing Act shall apply mutatis mutandis to the procedures for public announcement and filing applications, conditions of supply, methods and procedures for supply where housing units are sold to persons who are not association members pursuant to Article 79 (4) of the Act. In such cases, "project operator" shall be construed as "project implementer (referring to the Korea Land and Housing Corporation or a local government-invested public corporation, if the Korea Land and Housing Corporation or a local government-invested public corporation is a co-project implementer)".
| Article 68 (Methods and Procedures for Acquiring Redeveloped Rental Housing) |
| (1) | If an association makes a request to acquire rental housing units built by implementing a redevelopment project (hereinafter referred to as "redeveloped rental housing units") pursuant to Article 79 (5) of the Act, the competent Mayor/Do Governor or the head of the relevant Si/Gun/autonomous Gu shall preferentially acquire such housing units; but if the Mayor/Do Governor or the head of the Si/Gun/autonomous Gu has difficulty in acquiring such housing units, due to any unavoidable constraint, such as lack of funding or personnel for management, he or she may request the Minister of Land, Infrastructure and Transport to designate the Korea Land and Housing Corporation or a local government-invested public corporation as the acquirer. |
| (2) | The price for acquiring redeveloped rental housing units under Article 79 (5) of the Act shall be determined by aggregating the construction cost and the value of appurtenant land according to the guidelines for determining the price for selling housing units provided for in Article 54 (5) of the Enforcement Decree of the Special Act on Public Housing; and the price of appurtenant land shall be determined using the arithmetic mean of the values appraised by at least two appraisal business entities as at the date approval of the relevant project implementation plan is publicly notified. The items to be added to the construction cost and the price of appurtenant land in such cases may be determined by agreement between the acquirer and the association. |
| (3) | Except as otherwise expressly provided for in paragraphs (1) and (2), prior negotiations for executing an agreement to acquire redeveloped rental housing, execution of an agreement for acquisition, the method for paying the price for acquisition and other necessary matters shall be determined separately by the acquirer. |
| Article 69 (Supply of Rental Housing) |
| (1) | The guidelines for conditions of lease, such as tenant eligibility requirements, the method for selecting tenants, a security deposit and rents and the guidelines for preferential sale to non-homeowner householders, where rental housing units are built pursuant to the main sentence of Article 79 (6) of the Act, may be determined separately by the project implementer or the person who builds such housing units on building sites supplied under Article 23 (1) 2 of the Act, with approval from the head of the relevant Si/Gun/autonomous Gu, within the limitations prescribed in attached Table 3. |
| (2) | Pursuant to the proviso to Article 79 (6) of the Act, an acquirer shall determine matters concerning eligibility requirements for tenants in redeveloped rental housing units, etc. within the following limitations: |
| 1. | To qualify as an eligible tenant, a person shall have not owned any house for at least one year; and have resided in the area in which the relevant improvement project is located for at least one year and priority shall be given based on how long a person owns no house and has lived in such area: Provided, That, if a Mayor/Do Governor acquires rental housing units pursuant to Article 79 (5) of the Act and Article 48 (2) of this Decree, he or she may separately determine tenant eligibility requirements, such as the area and period of residence; |
| 2. | A security deposit and a rent shall not exceed 90/100 of the market price in the area where the relevant improvement project is located; |
| (3) | Upon request from a project implementer or a person who builds houses on building sites supplied under Article 23 (1) 2 of the Act or if necessary for selecting tenants, the head of a Si/Gun/autonomous Gu may request the Minister of Land, Infrastructure and Transport to search relevant information through the computer network for housing to ascertain whether a person qualifies as an eligible tenant under paragraphs (1) and (2). |
| Article 70 (Supply of Undivided Co-Owned Houses) |
| (1) | The size of an undivided co-owned house prescribed in Article 80 of the Act (hereinafter referred to as "undivided co-owned house"), the period of co-ownership and eligible purchasers of the house are as follows: |
| 1. | An undivided co-owned house shall have an exclusive habitable area not exceeding 60 square meters; |
| 2. | The period of co-ownership of an undivided co-owned house shall be determined by the relevant project implementer within the maximum of 10 years from the date of acquisition of such ownership under Article 86 (2) of the Act; |
| 3. | To be an eligible purchaser of an undivided co-owned house, a person shall meet all the following criteria: |
| (a) | The price of the land or structure previously owned by the person, as calculated according to Article 74 (1) 5 of the Act, shall not exceed the sale price of the house referred to in subparagraph 1; |
| (b) | The person shall be a householder who actually resides in the relevant improvement zone as at the date of public announcement of the public inspection of the relevant improvement plan under Article 13 (1); |
| (c) | The person shall not own any house other than the house demolished to implement the relevant improvement project. |
| (2) | The methods and procedures for supplying undivided co-owned houses, the ratio of shares acquired, the rent for each share, the price of acquisition of a share and other necessary matters shall be determined separately by the relevant project implementer. |
| Article 71 (Supply of Land-Leasehold Housing Units to Owners of Small Land) |
| (1) | "Person who owns a plot of land or a house with an area not exceeding that specified by Presidential Decree" in Article 80 (2) of the Act means any of the following: |
| 1. | A person who owns a plot of land with an area of less than 90 square meters without any structure owned by the person; |
| 2. | A person who owns a structure actually used for dwelling with a floor area of less than 40 square meters, not on a plot of land owned by the person. |
| (2) | Notwithstanding paragraph (1), the area of a plot of land or of a structure may be otherwise determined by City/Do ordinance by not more than 1/2 of the area specified in either subparagraph of paragraph (1). |
| Article 72 (Preparation of Report on Property) |
| (1) | A project implementer shall prepare a report on property, take photographs, and video-record existing structures to formulate a management and disposal plan before demolishing structures pursuant to Article 81 (3) of the Act; and shall preserve them until before commencing the project. |
| (2) | A report on property to be prepared under paragraph (1) shall be accompanied by data about the total floor area of structures, floor plans according to actual measurements; and materials for main finishings for determining the prices of previous structures under Article 74 (1) 5 of the Act: Provided, That, if actually measured areas correspond with the areas in the actual building plans attached to the relevant Building Cadastre, such actual building plans may be provided in lieu of floor plans according to actual measurements. |
| Article 73 (Performance Bonds) |
SECTION 6 Measures Following Completion of Construction Works
| Article 74 (Approval of Completion) |
| (1) | If a project implementer who is not the head of a Si/Gun/Gu intends to obtain approval of completion of construction works pursuant to Article 83 (1) of the Act, it shall file an application for approval of completion of construction works with the head of the relevant Si/Gun/autonomous Gu in the Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the foregoing shall not apply where the project implementer (including co-project implementers) is the Korea Land and Housing Corporation and notifies the head of the relevant Si/Gun/autonomous Gu of the results of approval of completion internally processed under Article 19 (3) of the Korea Land and Housing Corporation Act and Article 41 (2) of the Enforcement Decree of said Act. |
| (2) | When the head of a Si/Gun/autonomous Gu approves the completion of a project pursuant to Article 83 (3) of the Act, he or she shall issue a certificate of completion, stating the following information, to the project implementer in the Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: |
| 1. | The category and name of the improvement project; |
| 2. | The location and name of the zone for the improvement project; |
| 3. | The name and address of the project implementer; |
| 4. | Details of approval of completion. |
| (3) | When a project implementer notifies the head of a Si/Gun/autonomous Gu of the results of approval of completion internally processed under the proviso to paragraph (1) or receives a certificate of approval of completion under paragraph (2), the project implementer shall without delay notify eligible purchasers thereof. |
| (4) | When the head of a Si/Gun/autonomous Gu publicly notifies the completion of construction works under Article 83 (3) and (4), he or she shall include the matters specified in paragraph (2) in the public notice. |
| Article 75 (Permission for Use Prior to Approval of Completion) |
| (1) | "If a completed structure can be used without any problem or if such structure meets the criteria prescribed by Presidential Decree" in the main sentence of Article 83 (5) of the Act means the following cases: |
| 1. | The completed structure shall have facilities for electricity, water supply, heating, waterworks and sewerage; and thus there is no problem in using such structure; |
| 2. | The completed structure shall meet the requirements prescribed in the management and disposal plan; |
| 3. | Residents shall be safe from hazards caused by vehicular traffic, noise, dust, etc. due to construction works. |
| (2) | When a project implementer intends to obtain permission for use under the main sentence of Article 83 (5) of the Act, the project implementer shall file an application with the head of the relevant Si/Gun/Gu in the Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (3) | When the head of a relevant Si/Gun/Gu grants permission for use under Article 83 (5) of the Act, he or she may grant permission for use separately for each building, household or block. |
| Article 76 (Appraisal of Standard Price for Settlement) |
| (1) | The price of a plot of land or structure previously owned by a person who has purchased a building site or structure shall be appraised by either of the following methods under Article 89 (3) of the Act: |
| 2. | In cases of a reconstruction project, such price shall be appraised according to the guidelines determined by the relevant project implementer: Provided, That Article 74 (2) 1 (b) of the Act may apply mutatis mutandis where it is intended to have prices appraised by appraisal business entities. |
| (2) | The price of a building site or structure sold shall be appraised by either of the following methods pursuant to Article 89 (3) of the Act: |
| 2. | In cases of a reconstruction project, such price shall be appraised according to the guidelines determined by the relevant project implementer: Provided, That Article 74 (2) 1 (b) of the Act may apply mutatis mutandis where it is intended to have prices appraised by appraisal business entities. |
| (3) | In appraising the price under paragraph (2), the following cost and expenses shall be added to the price, but subsidies provided under Article 95 of the Act shall be deducted from the price: |
| 1. | Expenses incurred in conducting inspections, land surveying, design works and supervision for the improvement project; |
| 3. | Registration fees, personnel expenses, communications expenses, office supply expenses, interest and other necessary expenses incurred in managing the improvement project; |
| 4. | An amount equivalent to interest on loans obtained pursuant to Article 95 of the Act, if such loans have been obtained; |
| 5. | The cost of constructing fundamental infrastructure and common facilities (excluding the cost borne by the head of the relevant Si/Gun/Gu under Article 95 (1) of the Act); |
| 6. | Expenses specified in articles of association, etc., out of expenses paid to conduct safety inspections, select a management entity specialized in improvement projects, conduct audits, appraisal and perform other activities for promoting the improvement project. |
| (4) | The weighted value for each floor or location may be considered in appraising the prices of structures referred to in paragraphs (1) and (2). |
CHAPTER IV APPORTIONMENT OF COSTS
| Article 77 (Major Fundamental Infrastructure) |
"Major fundamental infrastructure and common facilities specified by Presidential Decree" in Article 92 (2) 1 of the Act means the following facilities: | 2. | Waterworks and sewerage systems; |
| Article 78 (Costs Borne by Managers of Fundamental Infrastructure) |
| (1) | The total cost to be borne by the manager of fundamental infrastructure under Article 94 (1) of the Act shall not exceed 1/3 of the cost incurred in implementing the relevant improvement project (excluding the cost referred to in Article 76 (3) 1; hereafter in this paragraph the same shall apply): Provided, That, if the improvement of other fundamental infrastructure is the main work of the improvement project, the total cost borne by such manager may be increased by up to 1/2 of the cost incurred in implementing the relevant improvement project. |
| (2) | When the head of a Si/Gun/autonomous Gu intends to apportion to the manager of fundamental infrastructure the improvement project cost pursuant to Article 94 (1) of the Act, he or she shall give notice stating details of the cost incurred in implementing the improvement project and the amount apportioned to the relevant manager. |
| Article 79 (Subsidies and Loans) |
| (1) | "Fundamental infrastructure, temporary housing facilities and common facilities in a residential environment improvement project, specified by Presidential Decree" in the former part of Article 95 (1) of the Act means all fundamental infrastructure, temporary housing facilities and common facilities in a residential environment improvement project. |
| (2) | "Area specified by Presidential Decree" in Article 95 (1) 2 of the Act means an area that meets all the following criteria at the time the area is designated as an improvement zone (or at the time such designation is changed): |
| 2. | An area where structures aged at least 20 years since completion is at least 50/100 of all structures in the improvement area. |
| (3) | The amount of a subsidy or loan that the State or a local government may provide pursuant to Article 95 (1) of the Act shall not exceed 80 percent of expenses of basic surveys and the cost of projects for fundamental infrastructure and temporary housing facilities, respectively (or 100 percent of such expenses and costs, where a Mayor/Do Governor provides a subsidy or loan to the head of the relevant Si/Gun/autonomous Gu for an improvement zone where a residential environment improvement project is implemented as prescribed in Article 23 (1) 1 of the Act). |
| (4) | The amount of a subsidy that may be provided by the State or a local government under Article 95 (3) of the Act shall not exceed 50 percent of expenses of basic surveys; the cost of projects for fundamental infrastructure and temporary housing facilities; and operating expenses of the association, respectively. |
| (5) | Pursuant to Article 95 (3) of the Act, the State or a local government may provide or arrange a loan for not more than 80 percent of the following expenses and costs, respectively: |
| 1. | Expenses of basic surveys; |
| 2. | The cost of projects for fundamental infrastructure and temporary housing facilities; |
| 3. | Compensation for tenants; |
| 4. | Expenses of relocating residents; |
| 5. | Other expenses and costs specified by City/Do ordinance (limited to where a local government provides or arranges a loan). |
| Article 80 (Gratuitous Transfer of State or Public Land) |
| (1) | A project implementer, to whom a State or a local government has gratuitously transferred a parcel of land pursuant to Article 101 (1) of the Act, shall submit a copy of the public notice of approval of the relevant project implementation plan to the head of the management authority for the land, or to the head of the relevant local government; and shall request the management authority or the head of the relevant local government to complete the process for registering the transfer of ownership of the land. In such cases, the management authority for the land or the head of the relevant local government shall verify the certified transcript of the Land Cadastre for the land or the certificate of entries in the relevant register by matching such certified transcript or certificate against administrative information available for sharing under Article 36 (1) of the Electronic Government Act. |
| (3) | Immediately upon receipt of a request under paragraph (1), a management authority or the head of a local government shall issue documents necessary for registering the transfer of ownership to the project implementer. |
| (4) | When approval of a project implementation plan is revoked under Article 113 of the Act, the project implementer shall take measures necessary for returning the land gratuitously transferred under Article 101 (1) of the Act to the State or a local government, whoever is the original owner; and shall immediately file an application for registering the transfer of ownership with the competent registry. |
CHAPTER V MANAGEMENT ENTITIES SPECIALIZED IN IMPROVEMENT PROJECTS
| Article 81 (Standards for Registering Management Entities Specialized in Improvement Projects) |
| (1) | The standards for registering management entities specialized in improvement projects under the main sentence of Article 102 (1) of the Act are as prescribed in attached Table 4. |
| (2) | "Minor matters specified by Presidential Decree" in the main sentence of Article 102 (1) of the Act means an increase in capital or the number of technical personnel. |
| (3) | "Institutions specified by Presidential Decree" in the proviso to Article 102 (1) of the Act means the following institutions: |
| 2. | The Korea Appraisal Board. |
| Article 82 (Registration Procedures and Fees) |
| (1) | A person who wishes to be registered as a management entity specialized in improvement projects; or to register any modification regarding such registration, pursuant to Article 102 (1) of the Act, shall file an application with the competent Mayor/Do Governor in the Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport and shall file an application for modifying such registration with the competent Mayor/Do Governor within two months, if registered matters are modified. |
| (2) | Upon receipt of an application under paragraph (1), a Mayor/Do Governor shall register the applicant in the Register of management entities specialized in improvement projects, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, and shall issue a certificate of registration, except in the following cases: |
| 2. | Where an applicant fails to meet the standards for registration prescribed in attached Table 4. |
| (3) | An applicant for registration (except of modifications of such registration) of a management entity specialized in improvement projects under Article 102 (1) of the Act shall pay fees prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 83 (Restrictions on Business Activities of Management Entities Specialized in Improvement Projects) |
| (1) | For the purposes of Article 103 of the Act, a person in either of the following relationships with a management entity specialized in improvement projects shall be deemed the management entity specialized in improvement projects: |
| 2. | A person who has a cross-shareholding in the management entity specialized in improvement projects. |
| Article 84 (Criteria for Revoking Registration of Management Entities Specialized in Improvement Projects or Suspending Their Business Operations) |
The criteria for revoking registration or suspending business operations under Article 106 (1) of the Act are as prescribed in attached Table 5.
| Article 85 (Association's Articles of Association) |
The articles of association of the organization comprised of management entities specialized in improvement projects established pursuant to Article 109 of the Act (hereinafter referred to as the "Association") shall include provisions concerning the following: | 3. | Principal place of business; |
| 4. | Admission into and withdrawal from membership; |
| 5. | Business activities and performance of such business activities; |
| 6. | The authorized number and terms of office of executive officers and methods for electing executive officers; |
| 7. | General meetings and directors' meetings; |
| 8. | Organization and operation; |
| 9. | Assets and accounting; |
| 10. | Amendment of articles of association; |
| 11. | Matters deemed necessary for operating the Association, in addition to the matters specified in subparagraphs 1 through 10. |
| Article 86 (Approval to Establish Association and Revocation of Approval for Establishment) |
| (1) | If an application for approval to establish an Association under Article 109 (4) of the Act meets the following standards, the Minister of Land, Infrastructure and Transport may approve the establishment of the Association: |
| 1. | Objectives and business activities of the Association shall be feasible; |
| 2. | Members of the Association shall be management entities specialized in improvement projects; |
| 3. | The Association shall have sufficient capability to perform intended business activities; and shall have an established financial basis or shall be able to establish a financial basis; |
| 4. | The Association's name shall be different from the name of any other corporation. |
| (2) | In any of the following cases, the Minister of Land, Infrastructure and Transport may revoke approval to establish the Association under Article 109 (6): Provided, That approval for establishment shall be revoked in cases falling under subparagraph 1 or 3: |
| 1. | If the Association obtained approval for establishment by fraud or other wrongful means; |
| 2. | If the Association breaches any condition of approval for establishment; |
| 3. | If the Association becomes unable to attain its objectives; |
| 4. | If the Association engages in any business activity other than its proper business activities. |
| (3) | The Minister of Land, Infrastructure and Transport shall hold hearings to revoke approval to establish the Association under paragraph (2). |
| Article 87 (Supervision of Association) |
| (1) | If the Minister of Land, Infrastructure and Transport deems it necessary to investigate or inspect the Association's business activities pursuant to Article 110 (2) of the Act, he or she may authorize public officials of the Ministry to enter the Association's place of business and conduct investigations or inspections. |
| (2) | Public officials who investigate or inspect the Association's business activities under paragraph (1) shall carry a certificate indicating their authority; and shall produce it to interested persons. |
Pursuant to Article 112 of the Act, any project implementer, other than the head of a Si/Gun/autonomous Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, or a promoters' committee shall undergo an audit in any of the following cases: | 1. | In cases falling under Article 112 (1) 1 of the Act, if the sum of the amount received or disbursed before books of accounts and relevant documents are transferred from the promoters' committee to the project implementer; and the confirmed amount to be disbursed according to contracts, etc. is not less than 350 million won; |
| 2. | In cases falling under Article 112 (1) 2 of the Act, if the amount received or disbursed by the date approval of a project implementation plan is publicly notified is at least 700 million won; |
| 3. | In cases falling under Article 112 (1) 3 of the Act, if the amount received or disbursed by the filing date of an application for approval of completion is at least 1 billion 400 million won. |
| 1. | Written consents of the owners of a plot of land or structure; |
| 2. | Minutes of general meetings; |
| 3. | Documents regarding contracts related to the improvement project; |
| 4. | The project implementation plan, the management and disposal plan and documents related to accounting, including audit reports; |
| 5. | Documents related to disputes, where disputes have arisen in the course of implementing the improvement project. |
| Article 89-2 (Criteria for Imposing Penalty Surcharges) |
| (1) | The criteria for imposing penalty surcharges pursuant to Article 113-2 of the Act shall be as specified in attached Table 5-2. |
| (2) | Where a Mayor/Do Governor intends to issue an order to revoke the selection of a contractor or to impose a penalty surcharge pursuant to Article 113-2 of the Act, he or she shall notify the relevant person of the violation committed, the type of a disposition, and the amount of the penalty surcharge (limited to where a penalty surcharge is imposed) in writing. |
| (3) | Upon receipt of a notice imposing a penalty surcharge under paragraph (2), the relevant person shall pay the penalty surcharge to a receiving agency designated by the competent Mayor/Do Governor, within 20 days after receipt of such notice or within such period, not less than 20 days, as the Mayor/Do Governor may separately prescribe: Provided, That if it is impracticable to pay the penalty surcharge within the period due to a natural disaster or any other unavoidable circumstances, the person shall pay it within seven days from the date such grounds cease to exist. |
| (4) | A receiving agency in receipt of a penalty surcharge under paragraph (3) shall issue a receipt to the payer and notify the competent Mayor/Do Governor of such fact without delay. |
[This Article Newly Inserted by Presidential Decree No. 29209, Oct. 2, 2018]
| Article 89-3 (Restrictions on Participation in Bidding for Improvement Projects) |
| (1) | The criteria for restricting participation in bidding for improvement projects pursuant to Article 113-3 of the Act shall be as specified in attached Table 5-2. |
| (2) | Where a Mayor/Do Governor intends to restrict participation in bidding for improvement projects pursuant to Article 113-3 (1) of the Act, he or she shall publish the following matters in the public gazette of the competent local government, and shall post such matters on its website during the period for restricting participation in bidding to ensure that such matters are available for public inspection: |
| 1. | Company name (trade name), name (the representative's name if the company is a corporation), and business registration number (corporation registration number if the company is a corporation); |
| 2. | Period for restricting participation in bidding; |
| 3. | Specific grounds for restricting participation in bidding. |
| (3) | Where the execution of restrictions on participation in bidding for improvement projects placed pursuant to paragraph (2) is suspended or where the suspension of such execution is canceled, the competent Mayor/Do Governor shall publish such fact in the public gazette of the competent local government without delay, and post it on its website to ensure that such matters are available for public inspection. |
| (4) | The competent Mayor/Do Governor shall notify, without delay, the head of the relevant Si/Gun/Gu and the project implementer in his or her jurisdiction of the matters relating to restrictions on bidding made public pursuant to paragraphs (2) and (3). |
[This Article Newly Inserted by Presidential Decree No. 29209, Oct. 2, 2018]
| Article 90 (Implementation of Training Programs) |
| 1. | The housing construction system; |
| 2. | Systems related to urban and housing improvement projects; |
| 3. | Accounting and tax practices for improvement projects; |
| 4. | Other matters determined by the Minister of Land, Infrastructure and Transport. |
| Article 91 (Disputes Subject to Mediation by Mediation Committee) |
| 1. | A dispute on surrender of a structure or plot of land; |
| 2. | A dispute arising in the course of negotiations for compensating for losses; |
| 3. | A dispute on a resolution in a general meeting; |
| 4. | A dispute on any other matters specified by City/Do ordinance. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 92 (Obligation of Owners of Plots of Land or Structures to Explain) |
| Article 93 (Change of Methods for Implementing Projects) |
Pursuant to Article 123 (1) of the Act, the head of a Si/Gun/autonomous Gu may approve the change of the method of a redevelopment project implemented by supplying replotted lots of land pursuant to Article 69 (2) of the Act to the method by which structures are built and supplied according to the management and disposal plan approved under Article 74 of the Act in all or part of the improvement zone.
| Article 94 (Disclosure of Documents and Notification) |
| 1. | Public announcement of building units or lots for sale under Article 72 (1) of the Act and applications to purchase a building site or unit; |
| 2. | Annual financial operating plans; |
| 3. | Monthly progress of construction works of the improvement project; |
| 4. | Amendments of detailed contracts entered into with service providers, including designers, contractors and management entities specialized in improvement projects; |
| 5. | Changes in the improvement project cost. |
| (2) | Pursuant to Article 124 (2) of the Act, the chairperson of a promoters' committee or a project implementer (referring to association executive officers, in cases of an association; or the representative of the owners of a plot of land or structure, if a redevelopment project is implemented by the owners of a plot of land or structure pursuant to Article 25 (1) 2 of the Act) shall notify association members or the owners of a plot of land or structure, in writing, of the following matters by the fifteenth day of the month following the end of each quarter: |
| 1. | A list of documents and materials to be disclosed; |
| 2. | A summary of documents and materials to be disclosed; |
| 4. | The scope of information to be disclosed to each category of eligible persons; |
| 5. | Methods of inspection and copying; |
| 6. | Fees required for photocopying. |
| 1. | Representatives' meeting and directors' meetings held regarding service contracts (including the amendment of contracts) and the selection of service providers; |
| 2. | Representatives' meeting and directors' meetings held regarding the appointment, removal or punishment of association executive officers or representatives or qualifications of the owners of a plot of land or structure (if an association exists, referring to association members). |
| Article 95 (Urban and Residential Environment Improvement Fund) |
| (1) | "Percent specified by Presidential Decree" in Article 126 (2) 4 of the Act means 20 percent in cases of State land and 30 percent in cases of public land: Provided, That the competent authority shall consult with the head of the relevant central government agency defined in subparagraph 11 of Article 2 of the State Property Act about such percentage in cases of State land. |
| (2) | "Percent specified by Presidential Decree" in Article 126 (2) 6 of the Act means either of the following percentages: Provided, That percentages otherwise specified by ordinance of the relevant local government in excess of the following may apply: |
| 1. | In cases of local consumption tax imposed and collected under the Local Tax Act: Three percent; |
| 2. | In cases of property tax imposed and collected under the Local Tax Act: 10 percent. |
| Article 96 (Delegation of Authority) |
| (1) | Pursuant to Article 128 (1) of the Act, the Minister of Land, Infrastructure and Transport shall delegate his or her authority to investigate management entities specialized in improvement projects under Article 107 of the Act to each Mayor/Do Governor. |
| (2) | Pursuant to Article 128 (2) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the administrative work specified in subparagraphs 1 and 2 to the following institutions: |
| 1. | Establishing and operating a comprehensive information system for management entities specialized in improvement projects under Article 108 of the Act: The Korea Appraisal Board; |
| (3) | The Association to whom administrative work for implementing training programs under Article 115 of the Act is entrusted pursuant to paragraph (2) shall determine detailed matters necessary for implementing the training programs, such as curriculum, trainees, training hours and training expenses; and shall obtain approval thereof from the Minister of Land, Infrastructure and Transport, before implementing such training programs under the same Article. |
| Article 97 (Processing of Personally Identifiable Information) |
A Mayor/Do Governor, the head of a Si/Gun/autonomous Gu or a project implementer (including persons to whom the relevant authority is delegated or entrusted, if such authority is delegated or entrusted) may process data containing a resident registration number or an alien registration number referred to in Article 19 of the Enforcement Decree of the Personal Information Protection Act, if inevitable to execute any of the following administrative work: | 2. | Verifying qualifications of the owners of a plot of land or structure for performing work related to methods, etc. for the owners of a plot of land or structure to provide consent under Article 36 of the Act; |
| 5. | Ascertaining grounds for disqualification of association executive officers under Article 43 of the Act; |
| 10. | Ascertaining grounds for disqualification of management entities specialized in improvement projects under Article 105 of the Act; |
| 12. | Conducting investigations, etc. of management entities specialized in improvement projects under Article 107 of the Act. |
| Article 98 (Review of Regulation) |
The Minister of Land, Infrastructure and Transport shall review the validity of the following matters once every three years from January 1, 2017 (referring to the day before January 1 of every third year) and shall take measures, such as making improvements:
| 1. | Areas eligible for formulation of an implementation plan under Article 7 and attached Table 1; |
| 2. | Requirements for co-implementers and qualified developers under Articles 19 and 21; |
| 3. | Procedures, etc. for filing applications to purchase a building site or unit under Article 59; |
| 4. | Standards for registering management entities specialized in improvement projects under Article 81 and attached Table 4; |
| 5. | Criteria for revoking registration or suspending business operations under Article 84 and attached Table 5; |
| 6. | Audits under Article 88. |
CHAPTER VIII PENALTY PROVISIONS
| Article 99 (Imposition of Administrative Fines) |
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on February 9, 2018.
Article 2 (Applicability to Residents' Public Inspection for Designating Improvement Zones)
The amended provisions of Article 13 (4) 1 shall begin to apply to the first improvement plan the Authority to formulate improvement plans amends following the subdivision of an improvement zone or the consolidation or combination of improvement zones, after this Decree enters into force. Article 3 (Applicability to Base Date for Calculating Amount Payable in Cash to Relax Floor Area Ratio Requirements)
The amended provisions of Article 14 (4) shall begin to apply to the first application for approval of a project implementation plan (or for approval to amend such plan) filed after this Decree enters into force. Article 4 (Applicability to Restrictions on Transfer of Status of Association Members in High-Speculation Areas)
The amended provisions of Article 37 (2) 6 shall also apply to the areas designated as high-speculation areas before this Decree enters into force. Article 5 (Applicability to Special-Purpose Areas in Residential Environment Improvement Projects)
The amended provisions of subparagraph 1 of Article 58 shall begin to apply to the first improvement zone for a residential environment improvement project designated after this Decree enters into force. Article 6 (Applicability to Audits)
The amended provisions of Article 88 shall begin to apply to the first case where any project implementer, other than the head of a Si/Gun/autonomous Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, or a promoters' committee undergoes an audit after this Decree enters into force. Article 7 (Applicability to Obligation of Owners of Plots of Land or Structures to Explain)
The amended provisions of Article 92 shall apply begin to apply to the first case where the owner of a plot of land or structure enters into a contract for a transaction of real estate, such as sale and purchase, lease on a deposit basis, rental or creation of a surface right, with regard to a plot of land or structure owned by him or her in an improvement zone after this Decree enters into force. Article 8 (Applicability to Preservation of Relevant Materials)
The amended provisions of Article 94 (3) shall begin to apply to the first meeting referred to in the amended provisions of any subparagraph of Article 94 (3) held after this Decree enters into force. Article 9 (Special Provisions concerning Restrictions on Transfer of Association Members in High-Speculation Areas)
| (1) | Notwithstanding the amended provisions of Article 37 (2) 1, a person who acquires a structure from any transferor who meets all the following criteria is eligible as a member of an association: |
| 2. | The transferor has continuously owned the structure until the time of transfer (if the owner inherited the structure from a decedent, the period for which the decedent owned the structure shall be added to the period of ownership by the transferor; hereafter in paragraph (2) the same shall apply); |
| 3. | The transferor transfers the structure before an application for authorization for implementing the project is filed. |
| (2) | Notwithstanding the amended provisions of Article 37 (2) 2, any person who acquires a plot of land or structure from a transferor who meets all the following criteria is eligible as a member of an association: |
| 2. | The transferor has continuously owned the plot of land or the structure until the time of transfer; |
| 3. | The transferor transfers the plot of land or structure before the project commences. |
Article 10 (General Transitional Measures)
Article 11 (Transitional Measures concerning Formulation of Improvement Plans)
Article 12 (Transitional Measures concerning Sizes of Houses and Construction Ratio)
| 1. | Where a housing reconstruction project association granted approval of a management and disposal plan as at the time the Act on the Improvement of Urban Areas and Residential Environments, partially amended by Presidential Decree No. 21285, was in force obtained consent from all the owners of a plot of land or structure (or where such association obtained consent from a majority of association members at a general meeting if no housing supply contract had been entered into with association members); |
| 2. | Where a housing reconstruction project association that had entered into a housing supply contract with any person other than association members obtained consent from all the owners of a plot of land or structure and all occupants who entered into the housing supply contract. |
| (8) | Notwithstanding the amended provisions of Article 9 (1) 2, the previous provisions shall apply where an application was filed to obtain authorization for implementing an urban environment improvement project before this Decree enters into force. |
Article 13 (Transitional Measures concerning Methods for Counting Number of Consenting Owners of Plots of Land or Structures)
Article 14 (Transitional Measures concerning Procedures for Settlement in Cash with Persons Failing to File Application to Purchase Building Sites or Units)
If a project implementer has entered into an agreement on settlement money with the owner of a plot of land or structure or the holder of any right in such land or structure, who did not apply to purchase a building site or unit pursuant to the previous provisions of Article 48 before this Decree enters into force, the parties to such agreement shall be deemed to have executed an agreement on settlement money pursuant to the amended provisions of Article 60 (1). Article 15 (Transitional Measures concerning Guidelines for Management and Disposal)
Article 16 Omitted.
Article 17 (Relationship with Other Statutes or Regulations)
ADDENDA <Presidential Decree No. 28806, Apr. 17, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 28873, May 8, 2018>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 29045, Jul. 16, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 17, 2018.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 29209, Oct. 2, 2018>
This Decree shall enter into force on October 13, 2018.
ADDENDA <Presidential Decree No. 29360, Dec. 11, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on December 13, 2018. (Proviso Omitted.)
Article 2 Omitted.