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PUBLIC PROPERTY AND COMMODITY MANAGEMENT ACT

Act No. 7665, Aug. 4, 2005

Amended by Act No. 8423, May 11, 2007

Act No. 8635, Aug. 3, 2007

Act No. 8852, Feb. 29, 2008

Act No. 9174, Dec. 26, 2008

Act No. 10006, Feb. 4, 2010

Act No. 10345, jun. 8, 2010

Act No. 10580, Apr. 12, 2011

Act No. 11690, Mar. 23, 2013

Act No. 12201, Jan. 7, 2014

Act No. 12844, Nov. 19, 2014

Act No. 13017, Jan. 20, 2015

Act No. 13383, jun. 22, 2015

Act No. 14197, May 29, 2016

Act No. 14186, May 29, 2016

Act No. 14839, Jul. 26, 2017

Act No. 15794, Oct. 16, 2018

Act No. 17765, Dec. 29, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to protect public property and commodities and to ensure appropriate acquisition, retainment, preservation, operation and disposal thereof.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 2 (Definitions)
The terms used in this Act are defined as follows:
1. The term "public property" means any property prescribed in each subparagraph of Article 4 (1), which falls under the ownership of a local government at a cost to the local government, by contributed acceptance, or by enforcement of statutes;
2. The term "commodity" means any movable property owned or kept for use by a local government, excluding the following:
(a) Cash;
(b) Securities;
(c) Public property prescribed in Article 4;
3. The term "contributed acceptance" means the gratuitous transfer of the ownership of property prescribed in any subparagraph of Article 4 (1) to a local government by a person other than a local government, and the acceptance thereof by the local government;
4. The term "management" means any and all activities performed for the purposes of acquiring, operating, retaining, or preserving public property and commodities;
5. The term “relevant local government” means a local government that owns public property or commodities;
6. The term "disposal" means the transfer of the ownership of any public property or commodities to a person other than the relevant local government by means of sale, exchange, transfer, trust, contribution in kind, etc.;
7. The term "permission for use or profit-making" means permitting any person other than the relevant local government to use or profit from any administrative property prescribed in Article 5 (2) for a fixed period, whether for a fee or at no charge;
8. The term "loan contract" means any contract concluded to allow any person other than the relevant local government to use or profit from any general property prescribed in Article 5 (3) or commodities for a fixed period, whether for a fee or at no charge.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 2-2 (Relationship to Other Statutes)
Except as otherwise provided in other statutes, this Act shall apply to management or disposal of any public property and commodities.
[This Article Newly Inserted on Feb. 4, 2010]
 Article 3 (Duty of Care of Public Officials Managing Public Property or Commodities)
Any public official engaged in duties of managing public property or commodities shall comply with this Act and other statutes or regulations pertaining to management of public property or commodities and perform his or her duties with due care as a good manager.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 3-2 (Basic Principles for Management and Disposal of Public Property and Commodities)
Where a local government manages or disposes of any public property, it shall comply with the following principles:
1. The common interests of the relevant local government shall be served;
2. The acquisition or disposal of public property shall be made to strike a balance;
3. The local government shall consider its public values and utility;
4. The local government shall follow transparent and efficient procedures.
[This Article Newly Inserted on Feb. 4, 2010]
CHAPTER II COMMON PROVISIONS ON PUBLIC PROPERTY
 Article 4 (Scope of Public Property)
(1) The scope of public property shall be as follows: <Amended on Feb. 4, 2010; Jan. 20, 2015>
1. Real estate and the appurtenances thereof;
2. Vessels, floating bridges, floating docks, and aircraft and the appurtenances thereof;
3. Important machinery and apparatuses used for public-managed projects or public-managed facilities;
4. Superficies, easements, leasehold rights, mining rights, and other rights equivalent thereto;
5. Any of the following rights (hereinafter referred to as "intellectual property"):
(a) Patent rights, utility model rights, design rights, and trademark rights registered under the Patent Act, the Utility Model Act, the Design Protection Act and the Trademark Act;
(b) Copyrights, neighboring copyrights, rights of database producers and other rights protected under the Copyright Act and registered with the Korea Copyright Commission pursuant to Articles 53 and 112 (1) of the same Act (hereinafter referred to as "copyright, etc.");
(c) Plant variety rights defined in subparagraph 4 of Article 2 of the Act on the Protection of New Varieties of Plants;
(d) Intellectual property rights defined in subparagraph 3 of Article 3 of the Framework Act on Intellectual Property, other than the intellectual property rights provided for in items (a) through (c): Provided, That any right not registered under the Copyright Act shall be excluded herefrom;
6. Stocks, rights arising from an investment, corporate bonds, local bond securities, state bond securities and other equivalent securities;
7. Beneficial right of real estate trust;
8. Property under construction among those prescribed in subparagraph 1 or 2.
(2) The scope of machinery and apparatuses referred to in paragraphs (1) 3 shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 5 (Classifications and Types of Public Property)
(1) Public property shall be classified into administrative property and general property, according to its purpose of use.
(2) “Administrative property” means the following property:
1. Property for official use: Property that a local government directly uses or decides to directly use for administrative or business purposes or as a residential campus for public officials, and property under construction for such purposes;
2. Property for public use: Property that a local government directly uses or decides to directly use for public purposes, and property under construction for such purposes;
3. Property for enterprises: Property that a local government uses or decides to use for an enterprise managed by the local government or as a residential campus for employees belonging to such enterprise, and property under construction for such purpose;
4. Property for preservation: Property that a local government preserves or decides to preserve pursuant to statutes, regulations, municipal ordinances or rules, or for other necessities.
(3) “General property” means all public property other than administrative property.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 6 (Protection of Public Property)
(1) No person shall use or profit from public property unless he or she complies with the procedures and methods prescribed by this Act or any other Act.
(2) No administrative property shall be subject to acquisition by prescription, notwithstanding Article 245 of the Civil Act.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 6-2 (Demand for Data on Public Property)
(1) The Minister of the Interior and Safety may have the heads of local governments submit data on the management status, etc. of public property in order to promote the efficient use of public property, etc. <Amended on Jul. 26, 2017>
(2) The Minister of the Interior and Safety may instruct and supervise the heads of local governments regarding management, etc. of public property or require them to take other necessary measures. <Amended on Jul. 26, 2017>
[This Article Newly Inserted on Jan. 20, 2015]
 Article 7 (Contributed Acceptance)
(1) Where any person intends to donate his or her property prescribed in any subparagraph of Article 4 (1) to a local government, the head of the local government may accept the donation, as prescribed by Presidential Decree.
(2) Where it is impracticable for a local government to manage the property to be donated pursuant to paragraph (1); where a local government does not need such property; or where the donation is subject to a condition, the local government shall not accept the donation, as prescribed by Presidential Decree: Provided, That the donation is not deemed to be subject to a condition in any of the following cases:
1. Where any property, which is to be donated as administrative property, is donated on condition that the donor, his or her heir, or other general successor shall be permitted to use the property free of charge;
2. Regarding any administrative property whose use is repealed, where a person donates a facility to be used as a substitute for the administrative property on condition that such administrative property to be disused shall be transferred to the donor, his or her heir, or other general successor pursuant to Article 40 (1) 3, to the extent of the expenses incurred by him or her.
[This Article Wholly Amended on Jan. 20, 2015]
 Article 8 (Restriction on Acquisition of Property on Which Private Rights Have Been Established)
No property on which private rights have been established shall be acquired as public property unless such rights are extinguished: Provided, That the foregoing shall not apply when the property is acquired by a court ruling. <Amended on Feb. 4, 2010; Jan. 20, 2015>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 9 (Registration on Official Register)
(1) Upon acquiring any public property or accepting any donation, the head of a local government shall record or register it or take any other measures necessary for preserving the right without delay, as prescribed by statutes or regulations. <Amended on Feb. 4, 2010>
(2) The rightful person enlisted on the title deed of public property, such as real estate or other rights, which should be recorded or registered in the official register, shall be the relevant local government: Provided, That as for any public property belonging to the special account for educational expenses prescribed in the Local Education Autonomy Act, the name of its competent authority, "superintendent of education", shall be enlisted additionally on the title deed.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 10 (Formulation and Amendment of Public Property Management Plan)
(1) Before the local council sets the budget, the head of a local government shall formulate a plan for acquisition and disposal of public property (hereinafter referred to as "management plan") each year and obtain approval thereof from the local council. In such cases, the foregoing shall also apply when the plan is revoked or partially amended after its formulation for any unavoidable reasons. <Amended on Feb. 4, 2010; Jan. 20, 2015>
(2) The head of the local government shall submit the management plan to the local council 50 days before the commencement of a fiscal year in cases of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, and a Special Self-Governing Province; and 40 days before the commencement of a fiscal year in cases of a Si/Gun/Gu (referring to an autonomous Gu). <Newly Inserted on Jan. 20, 2015>
(3) Notwithstanding paragraph (2), where a business plan is amended during the fiscal year or where there is a reason for urgent acquisition or disposal of public property, a management plan may be prepared and submitted during that fiscal year. In such cases, the submission procedures shall be in accordance with Article 46 of the Local Autonomy Act. <Newly Inserted on Jan. 20, 2015>
(4) The scope of public property to be included in a management plan, and the standards for preparing or amending a management plan shall be prescribed by Presidential Decree. <Amended on Jan. 20, 2015>
(5) Where a management plan is approved by a local council, it shall be deemed that the local council’s approval has been obtained for the acquisition and disposal of important property pursuant to Article 39 (1) 6 of the Local Autonomy Act. <Amended on Jan. 20, 2015>
[This Article Wholly Amended on Dec. 26, 2008]
[Title Amended on Jan. 20, 2015]
 Article 11 (Change or Abolition of Use)
The head of a local government shall undergo deliberation of the public property council referred to in Article 16 (hereinafter referred to as “public property council”) in any of the following cases:
1. When intending to change or abolish the use of administrative property according to the criteria prescribed by Presidential Decree;
2. When intending to change general property to administrative property through change of use.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 12 (Transfer of Property between Accounts)
Where any property belonging to one of the accounts of a local government is to be transferred to another, such transfer shall be done onerously: Provided, That where it is transferred for any official or public use, the transfer may be done gratuitously through deliberation of the public property council of the relevant local government.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 13 (Prohibition on Constructing Permanent Facilities)
No person, other than the head of the relevant local government, shall construct any types of structures, such as buildings, ditches and bridges, and other permanent facilities on public property: Provided, That the foregoing shall not apply to cases prescribed by Presidential Decree where no disruption is caused to the use of the relevant public property.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 14 (Delegation of Management of Public Property and Relevant Duties)
(1) Where the head of a local government manages or disposes of the public property under his or her jurisdiction, he or she may delegate the management or disposal of the public property to a public official under his or her jurisdiction; the Special Metropolitan City Mayor, a Special-Self Governing City Mayor, or a Do Governor may delegate the management or disposal of the property to the head of Si/Gun/Gu (the head of a Gu refers to the head of an autonomous Gu; hereinafter the same shall apply).
(2) The public official delegated under paragraph (1) shall be referred to as "property manager."
(3) The handling of expenses incurred in the management or disposal of public property delegated under paragraph (1) shall be prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 15 (Restrictions on Conduct of Property Managers)
(1) No property manager or any other public official engaged in duties related to public property shall acquire public property which he or she handles or exchange it with his or her private property: Provided, That the foregoing shall not apply where he or she obtains permission therefor from the head of the relevant local government.
(2) Any conduct committed in violation of paragraph (1) shall be null and void.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 16 (Public Property Council)
(1) A public property council shall be established under each local government to advise on the management and disposal of public property to the head of the local government.
(2) The public property council referred to in paragraph (1) shall deliberate on the following: <Amended on Jan. 20, 2015>
1. Where a management plan is formulated or amended pursuant to Article 10;
2. Where any property is transferred between accounts gratuitously pursuant to the proviso of Article 12;
3. Where usage fees or rental fees are reduced or exempted pursuant to Article 24 or 34;
4. In other cases prescribed by ordinance of the relevant local government with respect to management, operation, disposal, etc. of public property.
(3) The public property council referred to in paragraph (1) shall consist of at least seven and up to 15 members, including one chairperson and two vice chairpersons, as prescribed in the following: <Newly Inserted on Jan. 20, 2015>
1. The vice head of the relevant local government shall serve as the chairperson of the public property council;
2. The director general in charge of property management in the relevant local government and one civilian member shall respectively serve as a vice chairperson of the council; the vice chairperson who is a civilian member shall be elected among and by the members of the public property council;
3. The members of the council shall be appointed or commissioned by the head of the local government from among the public officials under its jurisdiction and persons with abundant knowledge and experience in the field of public property. In such cases, the fixed number of civilian members shall constitute a majority of the total fixed number of members of the council.
(4) Other matters necessary for the composition and operation of a public property council shall be prescribed by Presidential Decree. <Newly Inserted on Jan. 20, 2015>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 17 (Consultation on Bills of Statutes or Regulations Related to Public Property)
Where the head of a central administrative agency intends to enact, amend, or repeal any statute or regulation related to the management and disposal of public property, he or she shall consult in advance with the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 18 (Payment of Expenses for Public Property of Local Governments Used by the State)
Where the State uses public property of a local government, it shall bear the expenses incurred in the management thereof: Provided, That the foregoing shall not apply when consent is obtained from the local council.
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER III ADMINISTRATIVE PROPERTY
 Article 19 (Restrictions on Disposal)
(1) No administrative property shall be lent, sold, exchanged, transferred, trusted, paid in substitutes, or made an object of any investment, and no private right shall be established on administrative property: Provided, That the foregoing shall not apply in any of the following cases: <Amended on Feb. 4, 2010>
1. Where the administrative property is transferred to the State or another local government on condition that its use and nature are maintained, as prescribed by Presidential Decree;
2. Where the administrative property is exchanged with property owned by a person other than the relevant local government to manage it as administrative property;
3. Where superficies or divided superficies for installing structures are established to the extent that they do not impede the purpose and use of the relevant administrative property for the purpose of implementing a public works project referred to in Article 4 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects.
(2) Where any administrative property is transferred pursuant to paragraph (1) 1, a special agreement shall be registered stating that the transfer contract shall be canceled should the property that has been transferred be used for any purpose other than the purpose of the transfer within 10 years.
(3) The types, prices, etc. of administrative property exchanged pursuant to paragraph (1) 2 may be restricted as prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
(4) Where any administrative property is to be exchanged with another property pursuant to paragraph (1) 2, if the prices of the two are not the same, the difference shall be paid in cash. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 20 (Permission for Use or Profit-Making)
(1) The head of a local government may grant permission to use or profit from any administrative property to the extent not detrimental to its use or purpose;
(2) Where the head of a local government intends to grant permission to use or profit from any administrative property under paragraph (1), he or she shall allow open bidding: Provided, That he or she may hold a nominated competitive bid or enter into a private contract in any of the following cases: <Amended on Feb. 4, 2010; Jan. 7, 2014; Jan. 20, 2015>
1. Cases prescribed by Presidential Decree which are deemed necessary in view of the purpose, nature, etc. of the permission;
2. Where the donor, his or her heir, or other general successor prescribed in the proviso of Article 7 (2) is granted permission to use or profit from administrative property free of charge.
(3) No person granted permission to use or profit from administrative property under paragraph (1) shall allow another person to use or profit from the administrative property: Provided, That where the person granted permission to use or profit from administrative property under paragraph (1) happens to be the donor of the administrative property, his or her heir, or other general successor prescribed in the proviso of Article 7 (2), he or she may allow another person to use or profit from such administrative property after obtaining approval of the head of a local government.
(4) Where it is deemed that using or profiting from administrative property under the proviso of paragraph (3) is detrimental to its purpose or use or will make it impracticable to restore the administrative property to its original state, the head of the local government shall not grant permission for such use or profit-making.
(5) A person granted permission to use or profit from administrative property under paragraph (1) shall return the administrative property in its original state when the permission period expires or when the permission for use or profit-making is revoked under Article 25: Provided That where the head of the local government approves in advance any change to the original state of the administrative property, it may be returned in such changed state.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 21 (Period of Permission for Use or Profit-Making)
(1) The period of permission to use or profit from any administrative property shall be up to five years from the date of obtaining the permission: Provided, That in cases prescribed in any subparagraph of Article 7 (2), the period of permission shall be up to the period from the date of obtaining permission for gratuitous use to the date when the total sum of usage fees reaches the value of the property donated, and such period shall not exceed 20 years in total (hereafter in this Article referred to as “total usable period”). <Amended on Jan. 7, 2014; Jan. 20, 2015>
(2) With respect to permission for use or profit-making granted under a private contract prescribed in Article 20 (2) 1, the head of a local government may renew the permission for use or profit-making before the permission period expires. In such cases, any renewed period of permission shall not exceed the period of permission prescribed in paragraph (1) each time renewal is granted. <Amended on Feb. 4, 2010; Jan. 20, 2015>
(3) The head of a local government may renew permission for use or profit-making by up to five years on only one occasion for a person not subject to paragraph (2) as well: Provided, That in cases prescribed in any subparagraph of Article 7 (2), the renewal may be allowed by up to 10 years within the total usable period on only one occasion. <Amended on Jun. 8, 2010; Jan. 7, 2014; Jan. 20, 2015>
(4) Where a person granted permission for use or profit-making falls under any of the following subparagraphs, the head of the relevant local government may extend the relevant permission period. In such cases, the permission period to be extended shall not exceed the period during which such person is not able to use or profit from the relevant administrative property for any of the following reasons: <Amended on Feb. 4, 2010>
1. Where he or she suffers damage due to natural disasters or other disasters;
2. Where the use of the property is restricted due to causes attributable to the relevant local government.
(5) Any person who intends to obtain renewal of permission for use or profit-making pursuant to paragraphs (2) and (3) or to obtain an extension of the period of permission for use or profit-making pursuant to paragraph (4) shall apply to the head of the local government for the renewal of permission for use or profit-making or for an extension of the period of permission for use or profit-making at least one month prior to the expiration of the period of the relevant permission for use or profit-making. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 22 (Usage Fees)
(1) Where the head of a local government grants permission to use or profit from any administrative property, he or she shall collect usage fees each year, which shall be determined by applying the rates and calculation methods prescribed by Presidential Decree.
(2) The usage fees prescribed in paragraph (1) shall be paid in a lump sum within a period prescribed by Presidential Decree: Provided, That in cases prescribed by Presidential Decree where it is deemed impracticable to require a lump sum payment of the usage fees, the usage fees may be paid in installments in the amount determined by adding the interest prescribed by Presidential Decree in consideration of the level of the interest rate of one-year term deposits.
(3) Where payment in installments is allowed pursuant to the proviso of paragraph (2), it may be required to deposit guaranty money of up to a certain amount or to conclude performance guarantee insurance with the local government being the insured.
(4) Deleted. <Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 23 (Adjustment of Usage Fees)
(1) Where a person (his or her heir or other general successor shall be deemed the same person as his or her predecessor) continuously uses or profits from the same administrative property for over one year, and if the annual usage fees for the relevant year calculated pursuant to Article 22 (1) increase by at least 5/100 compared to the annual usage fees for the preceding year, the head of a local government may reduce the usage fees by the increased amount, as prescribed by Presidential Decree. <Amended on Jan. 7, 2014>
(2) Where general property becomes subject to paying usage fees prescribed in this Act for such reasons as change of use, paragraph (1) shall apply mutatis mutandis to calculation of its usage fees.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 24 (Reduction of or Exemption from Usage Fees)
(1) Notwithstanding Article 22, the head of a local government may exempt the relevant usage fees when granting permission to use or profit from administrative property in any of the following cases:
1. Where the State or a local government intends to directly use the administrative property for official or public use or for non-profit public service;
2. Regarding any donated property accepted for the purpose of using it as administrative property, where permission is granted to the donor, his or her heir, or other general successor to allow him or her to use or profit from such property pursuant to the proviso of Article 7 (2);
3. Where a person who plans to build and donate a new building, etc. intends to use the site for the new building, etc., during the period of construction thereof;
4. Other cases prescribed by Presidential Decree and agreed by the local council, such as granting local residents affected by natural disasters or other disasters permission to use or profit from the administrative property for a certain period.
(2) Notwithstanding Article 22, in cases prescribed by Presidential Decree including where it is necessary to vitalize the local economy, the head of a local government may reduce usage fees as prescribed by Presidential Decree.
(3) Where a person who has obtained permission to use or profit from administrative property is unable to use such property for a certain period due to natural disasters or other disasters, the head of a local government may reduce the usage fees and interest thereon over the period required for complete recovery from the relevant disaster by the amount calculated by applying a daily rate.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 25 (Cancellation of Permission for Use or Profit-Making)
(1) Where any person who has obtained permission to use or profit from administrative property pursuant to Article 20 (1) falls under any of the following, the head of a local government may revoke such permission:
1. Where he or she allows another person to use or profit from the administrative property for which permission for use or profit-making has been granted, in violation of Article 20 (3);
2. Where he or she neglects the management of the relevant administrative property or violates the purpose of its use;
3. Where he or she alters the original state of the administrative property for which permission for use or profit-making has been granted, without obtaining approval of the head of the relevant local government;
4. Where he or she is found to have obtained permission by making a false statement, submitting any false documentary evidence, or engaging in any other improper conduct;
5. Where he or she fails to pay usage fees within the payment deadline prescribed in Article 22 (2).
(2) Where administrative property for which permission for use or profit-making has been granted is directly required by the State or a local government for its official or public use, the head of the local government may revoke such permission.
(3) Where a person who has obtained permission for use or profit-making suffers a loss due to revocation referred to in paragraph (2), compensation shall be paid as prescribed by Presidential Decree.
(4) Where the head of a local government revokes permission for using or profit-making from administrative property, which has been donated, under paragraph (1) or (2), and if there is a person using or profiting from such administrative property under the proviso of Article 20 (3), the head of the local government shall notify him or her of such revocation.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 26 (Hearings)
Where the head of a local government intends to revoke permission to use or profit from any administrative property pursuant to Article 25 (1), he or she shall hold a hearing thereon.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 27 (Entrustment of Management of Administrative Property)
(1) Where it is deemed necessary for the efficient management of administrative property, the head of a local government may entrust the management of such property (hereinafter referred to as "entrustment of management") to a person other than a local government, as prescribed by Presidential Decree.
(2) The head of a local government shall entrust the management of administrative property under paragraph (1) by an open competitive bid: Provided, That where it is deemed necessary in view of the purpose, nature, and scale of a contract, regional characteristics, etc., the eligibility to participate in a bid may be limited, or a restrictive tender or private contract may be used, as prescribed by Presidential Decree. <Newly Inserted on Jan. 20, 2015>
(3) Where the head of a local government entrusts the management of administrative property under paragraph (1), he or she may calculate and collect entrustment fees each year as prescribed by Presidential Decree. <Newly Inserted on Jan. 20, 2015>
(4) A person who has been entrusted with the management of administrative property under paragraph (1) shall be deemed to have obtained permission to use or profit from such administrative property under Article 20. <Newly Inserted on Feb. 4, 2010; Jan. 20, 2015>
(5) A person deemed to have obtained permission to use or profit from administrative property pursuant to paragraph (4) may sublease the administrative property to a third party to the extent that he or she does not violate the terms of entrustment of management. <Newly Inserted on Feb. 4, 2010; Jan. 20, 2015>
(6) A person who has been entrusted with management pursuant to paragraph (1) may collect usage fees after obtaining approval of the head of the relevant local government in advance to cover expenses for the management; or where the income from usage fees has grown due to efficient management, etc. of the administrative property, a person entrusted with management may take all or part of the increased income as his or her income. <Amended on Feb. 4, 2010; Jan. 20, 2015>
(7) A local government may grant subsidies to a person entrusted with management to cover the expenses incurred therein. <Amended on Feb. 4, 2010; Jan. 20, 2015>
(8) The following matters shall be prescribed by Presidential Decree: <Amended on Feb. 4, 2010; Jan. 20, 2015>
1. The qualifications of a person for being entrusted with management;
2. The duration of entrustment of management, and the management of entrusted property;
3. Payment of expenses using usage fees prescribed in paragraph (6);
4. Taking all or part of an increase in the income from usage fees as the income of a person entrusted with management;
5. Other necessary matters regarding the entrustment of management.
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER IV GENERAL PROPERTY
SECTION 1 Common Provisions
 Article 28 (Management and Disposal)
(1) Any general property may be lent, sold, exchanged, transferred, or trusted, or a private right may be established on it; in such cases, it may be made an object of an investment in kind or of payment in substitutes, as prescribed by statutes, regulations, or municipal ordinances.
(2) Matters concerning the scope and details of establishing a private right on general property, contribution in kind, and payment in substitutes shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 29 (Methods of Contract)
(1) Any contract for lending or selling general property shall be made by an open competitive bid after providing public announcement thereof: Provided, That in cases prescribed by Presidential Decree, a nominated competitive bid or private contract may be made; in cases of securities, public sale of securities prescribed in Article 9 (9) of the Financial Investment Services and Capital Markets Act shall be used; and in cases of selling general property referred to in Article 4 (1) 2 and 3 of this Act, Article 76 (2) shall apply mutatis mutandis. <Amended on Feb. 4, 2010; Jan. 20, 2015>
(2) When selling securities pursuant to the proviso of paragraph (1), matters necessary for calculating the price shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 30 (Pricing of Property Subject to Disposal)
The price of general property to be disposed of shall be determined in consideration of the market price, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 2 Loan
 Article 31 (Loan Periods)
(1) The period of lending general property shall not exceed the periods classified as follows: Provided, That the foregoing shall not apply in cases prescribed by Presidential Decree to promote the local economy:
1. Land and its fixtures: Five years;
2. The property other than those under subparagraph 1: One year.
(2) Where property is lent through a private contract under the proviso of Article 29 (1), the head of a local government may renew the loan contract before the loan period expires. In such cases, any renewed period of loan shall not exceed the loan period prescribed in paragraph (1) each time renewal is granted. <Amended on Feb. 4, 2010>
(3) The head of a local government may renew a loan contract only on one occasion for a person not subject to paragraph (2) as well. In such cases, any renewed period of loan shall not exceed the loan period prescribed in paragraph (1). <Amended on Feb. 4, 2010; Jan. 7, 2014>
(4) Where a person who has borrowed property falls under any of the following subparagraphs, the head of a local government may extend the loan period. In such cases, the loan period may be extended by up to the period during which such person is not able to use the property for the following reasons: <Amended on Feb. 4, 2010>
1. Where he or she suffers damage due to natural disasters or other disasters;
2. Where the use of the property is restricted due to causes attributable to the relevant local government.
(5) Any person who intends to obtain renewal of the loan contract pursuant to paragraphs (2) and (3) or who intends to obtain an extension of the loan period pursuant to paragraph (4) shall apply to the head of the local government for the renewal of the loan contract or for an extension of the loan period at least one month prior to the expiration of the loan period. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 32 (Rental Fees)
(1) Where a contract for lending general property is concluded, rental fees shall be collected by applying the rates and calculation methods prescribed by Presidential Decree.
(2) The rental fees prescribed in paragraph (1) shall be paid in a lump sum within a period prescribed by Presidential Decree: Provided, That in cases prescribed by Presidential Decree where it is deemed impracticable to require a lump sum payment of the rental fees, the rental fees may be paid in installments in the amount determined by adding the interest prescribed by Presidential Decree in consideration of the level of the interest rate of one-year term deposits.
(3) Where payment in installments is allowed pursuant to the proviso of paragraph (2), it may be required to deposit guaranty money of up to a certain amount or to conclude performance guarantee insurance with the local government being the insured.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 33 (Adjustment of Rental Fees)
(1) Where a person (his or her heir or other general successor shall be deemed the same person as his or her predecessor) continuously borrows the same general property for over one year, and if the annual rental fees for the relevant year calculated pursuant to Article 32 (1) increase by at least 5/100 compared to the annual rental fees for the preceding year, the head of a local government may reduce the rental fees by the increased amount, as prescribed by Presidential Decree. <Amended on Jan. 7, 2014>
(2) Where administrative property, which is subject to paying usage fees or occupation and usage fees under other statutes, becomes subject to payment of rental fees prescribed in this Act for such reasons as repeal of use, paragraph (1) shall apply mutatis mutandis to calculating its rental fees.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 34 (Reduction of or Exemption from Rental Fees)
(1) Notwithstanding Article 32, where a loan contract of general property is concluded, its rental fees may be reduced or exempted in any of the following cases:
1. Where the State or a local government intends to directly use the relevant general property for official or public use or for non-profit public service;
2. Other cases prescribed by Presidential Decree and agreed by the local council, including where it is deemed necessary to promote the local economy.
(2) Notwithstanding Article 32, in cases prescribed by Presidential Decree including where the property is lent to a foreign-invested enterprise, the head of a local government may wholly or partially reduce rental fees, as prescribed by ordinance of the local government. <Amended on Feb. 4, 2010>
(3) Where a person who has borrowed general property is not able to use the relevant general property for a certain period due to natural disasters or other disasters, the head of a local government may reduce the rental fees and interest thereon over the period required for complete recovery from the relevant disaster by the amount calculated by applying a daily rate.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 35 (Termination of Loan Contracts)
(1) Where any person who has borrowed general property falls under any of the following, the head of a local government may terminate or cancel the relevant loan contract: <Amended on Feb. 4, 2010>
1. Where the State or a local government needs the general property that has been lent in order to use it directly for official or public purposes;
2. Where he or she who has borrowed the general property neglects the management of the relevant property or violates the purpose of its use;
3. Where he or she subleases the general property that he or she has borrowed or alters its original state without obtaining approval of the head of the relevant local government;
4. Where he or she is found to have concluded the relevant contract by making a false statement, submitting any false documentary evidence, or engaging in any other improper conduct;
5. Where he or she fails to pay the rental fees within the payment deadline prescribed in Article 32 (2).
(2) Where the head of a local government terminates or cancels a contract under paragraph (1), he or she shall take necessary measures to restore the relevant rights without delay.
(3) Where the termination or cancelation of the contract for the reason prescribed in paragraph (1) 1 causes losses to the other party to the contract, the State or a local government to use the relevant property shall compensate for the losses, as prescribed by Presidential Decree.
(4) Deleted. <Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 3 Sale
 Article 36 (Sale of General Property)
(1) General property may be sold in cases other than the following cases: <Amended on Jan. 7, 2014>
1. Where the head of a local government intends to change the use of the relevant property from general property to administrative property under subparagraph 2 of Article 11 in order to use it for administrative purposes;
2. Where the disposal of general property is restricted pursuant to the National Land Planning and Utilization Act or other Acts;
3. Where general property is subject to restriction on disposal provided for in the standards for operation referred to in Article 94-2 (1) in consideration of the necessity of future administrative purposes, etc.;
4. In cases of property prescribed by Presidential Decree, which is designated by the head of a local government as requiring management by the local government.
(2) Where general property is to be sold for public purposes, the sale may be made to a purchaser specifying the purpose of the property and the period during which the property shall be used for that purpose, as prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 37 (Payment of Proceeds from Sale)
(1) The proceeds from the sale of any general property shall be paid in a lump sum within a period prescribed by Presidential Decree: Provided, That in cases prescribed by Presidential Decree where it is deemed impracticable to require a lump sum payment of the proceeds from the sale of general property, the payment may be made in installments with the interest determined by Presidential Decree in consideration of the level of the interest rate of one-year term deposits.
(2) The proviso of paragraph (1) shall not apply to the proceeds from the sale of movables among general property.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 38 (Termination of Sales Contract)
(1) Where any purchaser of general property falls under any of the following, the head of a local government may terminate or cancel the relevant sales contract: <Amended on Feb. 4, 2010>
1. Where he or she is found to have concluded the relevant contract by making a false statement, submitting any false documentary evidence, or engaging in any other improper conduct;
2. In cases of sale prescribed in Article 36 (2), where he or she fails to use the relevant property for its designated purpose or to comply with the period to use it for such designated purpose;
3. Where he or she fails to pay the purchase price by the payment deadline prescribed in Article 37 (1).
(2) Where the head of a local government terminates or cancels a contract under paragraph (1), he or she shall take necessary measures to restore the relevant rights without delay.
(3) Where the purchaser of general property fails to pay the purchase price by the payment deadline prescribed in Article 37 (1), the head of a local government may collect it in the same manner as delinquent local taxes are collected. <Amended on Jan. 7, 2014>
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 4 Exchange
 Article 39 (Exchange)
(1) The head of a local government may exchange land, buildings, or other fixtures on land, which is or are general property, with State property, public property of any other local government, or private property in any of the following cases: Provided, That the foregoing shall not apply when the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects is applied: <Amended on Feb. 4, 2010>
1. Where the relevant local government directly uses it as property for official or public purposes; or where it is necessary to increase the usefulness of property by keeping small-scale general property in one place for administrative purposes;
2. Where it is impracticable to dispose of the relevant property by other methods, such as sale, while it is necessary to increase the value and usability of general property;
3. Where the State or another local government requests exchange in order to directly use it for official or public purposes, or on the ground that it is necessary to increase the usefulness of property by keeping small-scale general property in one place for administrative purposes;
4. Where it is deemed necessary to vitalize the local economy or to enhance the welfare of local residents, in cases agreed by the local council.
(2) The types, prices, etc., of general property exchanged pursuant to paragraph (1) may be restricted, as prescribed by Presidential Decree.
(3) Where any property is to be exchanged with another property pursuant to paragraph (1), if the prices of the two are not the same, the difference shall be paid in cash
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 5 Transfer
 Article 40 (Transfer)
(1) General property may be transferred in any of the following cases:
1. Where the general property is needed to be used for official or public purposes in a Si/Gun/Gu (referring to an autonomous Gu) located in the relevant Special Metropolitan City, Metropolitan City, or Do;
2. Where general property, which has been created with a subsidy from the National Treasury or a local subsidy whose use has been designated or with a donation, is to be transferred according to the relevant use;
3. In cases of administrative property whose use is repealed, where the administrative property is transferred to a person who has prepared and provided another facility to substitute the said use, or to his or her heir or other general successor;
4. Where land located in an urban planning project implementation area is transferred to a local government that has executed the urban planning project;
5. In other cases prescribed by Presidential Decree, where the value of assets falls or it is not necessary to possess assets.
(2) Where any general property is transferred for any reason prescribed in paragraph (1) 1 or 2, a special agreement shall be registered stating that the transfer agreement shall be canceled should the general property that has been transferred be used for any purpose other than the purpose of the transfer within 10 years.
(3) The subject and scope of transfer provided for in paragraph (1) 2 shall be prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 41 (Cancellation of Transfer Contracts)
(1) Where any person to whom general property has been transferred falls under any of the following, the relevant transfer contract may be canceled:
1. Where the transferee fails to use general property, which has been transferred by designating its purpose, for its designated purpose even after the designated date passes; or where the transferee uses the general property for such designated purpose for a while but ceases to use it for the purpose during the designated period;
2. Where the transferee is found to have concluded the contract by making false statements, submitting false documentary evidence, or engaging in any other improper conduct.
(2) Where the head of a local government cancels a contract under paragraph (1), he or she shall take necessary measures to restore the relevant rights without delay.
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 6 Trust
 Article 42 (Trust of General Property)
(1) General property (limited to land and its fixtures; hereafter in this Section the same shall apply) may be trusted to a trust company which transacts the business of real estate trust.
(2) The trust of any general property prescribed in paragraph (1) shall not be made with intent to obtain the results of a gratuitous loan, exchange, or transfer in violation of this Act, and the beneficiary shall not be a person other than the relevant local government.
(3) The types of trust referred to in paragraph (1) shall be as follows:
1. Sale-type trust: A trust that develops general property that has been trusted, and pays the proceeds from selling the property to a local government;
2. Rent-type trust: A trust that develops general property that has been trusted, and pays the proceeds generated from leasing the property for a certain period to a local government;
3. Hybrid trust: A trust that develops general property that has been trusted, selling part of the property and leasing part of the property for a certain period to pay the proceeds generated therefrom to a local government.
(4) The trust periods according to the types of trust prescribed in paragraph (3) shall be as follows:
1. Sale-type trust: Until the sale is completed, up to a period of five years;
2. Rent-type trust and hybrid trust: Up to a period of 30 years.
(5) The trust periods referred to in paragraph (4) may be renewed. In such cases, the renewed period shall not exceed the trust period provided for in paragraph (4) for each time renewal is granted.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 43 (Trust Fees)
Necessary matters concerning the method of vesting the proceeds generated from the trust in a local government, the trust fees to be paid to trust companies, the scope of selecting trust companies, etc. pursuant to Article 42 shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 43-2 (Entrustment of General Property)
(1) The head of a local government may entrust the duties of managing or disposing of general property to a person, prescribed by Presidential Decree, as a corporation established under a special Act for the purpose of efficiently managing or disposing of general property.
(2)  A person entrusted with the duties under paragraph (1) (hereafter in this Section referred to as “entrusted institution”) shall manage or dispose of the entrusted property with due care as a good manager. <Amended on Feb. 4, 2010>
(3) No entrusted institution shall engage in any of the following conduct without approval of a local government:
1. Using the entrusted property for purposes other than the purpose of entrustment;
2. Altering the original state of the entrusted property.
(4) The head of a local government may terminate the entrustment of all or part of the property in any of the following cases:
1. Where the entrusted property is required for official or public purposes;
2. Where the entrusted institution has violated this Act.
(5) The scope of institutions to be entrusted with the duties, the entrustment period, and other matters necessary for entrustment shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Dec. 26, 2008]
[Title Amended on Feb. 4, 2010]
 Article 43-3 (Development of Entrusted Property)
(1) An entrusted agency may develop general property entrusted with the management thereof, with approval from the head of a local government, and may pay revenues accruing therefrom to the local government. <Amended on Dec. 29, 2020>
(2) Development referred to in paragraph (1) means the following: <Newly Inserted on Dec. 29, 2020>
1. Acts such as building, substantial repair, and remodeling defined in Article 2 of the Building Act;
(3) The types of development referred to in paragraph (1) shall be as follows: <Amended on Dec. 29, 2020>
1. Sale-type development: Developing the property that has been entrusted, and paying the proceeds from selling the property to a local government;
2. Rent-type development: Developing the property that has been entrusted, and paying the proceeds generated from leasing it for a certain period to a local government;
3. Hybrid development: Developing the property that has been entrusted, and selling part of the property and leasing part of the property for a certain period to pay the proceeds generated therefrom to a local government.
(4) The entrustment period for each type of development prescribed in paragraph (3) shall be as follows: <Amended on Dec. 29, 2020>
1. Sale-type development: Until the sale is completed, but up to a period of five years;
2. Rent-type development: Up to a period of 30 years;
3. Hybrid-type development: In cases of sale-type development, until the sale is completed, up to a period of five years; and in cases of rent-type development, up to a period of 30 years.
(5) The entrustment periods referred to in paragraph (4) may be renewed. In such cases, the renewed period shall not exceed the entrustment period provided for in paragraph (4), each time renewal is granted. <Amended on Dec. 29, 2020>
(6) A local government may use part of the property developed under paragraph (1) as administrative property. In such cases, the price for the portion used by the local government may be paid by such methods as subtracting the relevant amount from the proceeds to be paid to the local government. <Amended on Feb. 4, 2010; Dec. 29, 2020>
(7) In cases of developing general property under paragraph (1), the following matters shall be considered: <Newly Inserted on Dec. 29, 2020>
1. Soundness of financial management, such as increase of financial revenue;
2. Convenience for the public, such as providing public facilities;
3. Contribution to local development, such as improvement of surrounding environments;
4. Other necessities for achieving administrative objectives, in addition to the matters prescribed in subparagraphs 1 through 3.
[This Article Newly Inserted on Dec. 26, 2008]
 Article 43-4 (Fees to Entrusted Institutions)
Necessary matters concerning the method of vesting the proceeds from developing the entrusted property in a local government, the fees to be paid to entrusted institutions, etc. pursuant to Article 43-2 shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Dec. 26, 2008]
CHAPTER IV-2 SPECIAL CASES CONCERNING MANAGEMENT AND DISPOSAL OF INTELLECTUAL PROPERTY
 Article 43-5 (Permission to Use or Profit from Intellectual Property)
(1) A person who has obtained permission to use, profit from, or borrow intellectual property (hereinafter referred to as "permission for use, etc.") may allow any third person to use or profit from such intellectual property after obtaining approval therefor from the head of the relevant local government, notwithstanding the main sentence of Article 20 (3) and Article 35 (1).
(2) A person who has obtained permission for use, etc. of copyright, etc., may transform, change, or adapt the relevant work after obtaining approval therefor from the head of the local government that manages the relevant intellectual property.
[This Article Newly Inserted on Jan. 20, 2015]
 Article 43-6 (Methods of Granting Permission for Use of Intellectual Property)
(1) Where the head of a local government intends to grant permission for use, etc. of intellectual property, notwithstanding the main sentence of Article 20 (2) and the main sentence of Article 29 (1), he or she shall do so by a private contract, and may grant permission to several persons at a time or on several occasions.
(2) No person who obtains permission for use, etc. pursuant to paragraph (1) shall interfere with the use of the relevant intellectual property by any third person.
(3) The head of a local government may revoke permission for use, etc., granted to a person who interferes with the use of the relevant intellectual property by any third person in violation of paragraph (2).
(4) Where no person, other than the relevant applicant, intends to obtain permission for use, etc., during the period of permission for use, etc., provided for in Article 43-9 (1); or where it is deemed particularly necessary to efficiently manage intellectual property as prescribed by Presidential Decree, notwithstanding paragraph (1), the head of a local government may grant permission for use, etc., only to a specific person. In such cases, the main sentence of Article 20 (2) and the main sentence of Article 29 (1) shall apply to the methods of granting permission for use, etc.
[This Article Newly Inserted on Jan. 20, 2015]
 Article 43-7 (Usage Fees of Intellectual Property)
(1) Where permission for use, etc. of intellectual property is granted, notwithstanding Articles 22 (1) and 32 (1), usage fees or rental fees shall be collected in an amount prescribed by Presidential Decree taking into account revenue from the relevant intellectual property, etc.
(2) Articles 23 and 33 (1) shall not apply where a person (his or her heir or other general successors shall be deemed the same person as his or her predecessor) continuously uses or profits from the same intellectual property.
[This Article Newly Inserted on Jan. 20, 2015]
 Article 43-8 (Exemption from or Reduction of Usage Fees or Rental Fees of Intellectual Property)
Except as provided in Articles 24 (1) and 34 (1), usage fees or rental fees may exempted or reduced, as prescribed by Presidential Decree, in any of the following cases: <Amended on Jun. 22, 2015; Oct. 16, 2018>
1. Where policies are implemented for increasing income of farmers defined in subparagraph 2 of Article 3 of the Framework Act on Agriculture, Rural Community and Food Industry and of fishers defined in subparagraph 3 of Article 3 of the Framework Act on Fisheries and Fishing Villages Development; for expanding exports by small and medium businesses defined in Article 2 of the Framework Act on Small and Medium Enterprises; for supporting business starters and business re-starters defined in subparagraphs 2 and 2-2 of Article 2 of the Support for Small and Medium Enterprise Establishment Act; or for facilitating establishment of venture businesses defined in Article 2 (1) of the Act on Special Measures for the Promotion of Venture Businesses, and where other policies equivalent thereto are implemented: Exemption;
2. In other cases where it is deemed necessary to utilize intellectual property for public purposes: Reduction.
[This Article Newly Inserted on Jan. 20, 2015]
 Article 43-9 (Period of Permission for Use of Intellectual Property)
(1) Notwithstanding Article 21 or 31, the period of permission to use or borrow intellectual property shall be prescribed by Presidential Decree within a period of five years.
(2) Where the period of permission to use or borrow intellectual property (excluding intellectual property prescribed by Presidential Decree) referred to in paragraph (1) expires, the period of permission for use, etc. previously granted may be renewed by a period not exceeding the period of permission to use or borrow prescribed in paragraph (1): Provided, That the permission for use, etc., granted under Article 43-6 (4) may be renewed only on one occasion.
[This Article Newly Inserted on Jan. 20, 2015]
 Article 43-10 (Vesting of Copyright)
(1) Where the head of a local government concludes a contract for producing a work with a person, other than the relevant local government, he or she shall prescribe matters regarding the vesting of copyright on the work in the contract.
(2) Where the head of a local government concludes a contract for collaborative creation with a person, other than the relevant local government, notwithstanding Article 8, the copyright on the end product shall be jointly owned; the shares therein shall be equally divided, except as otherwise provided for: Provided, That the principal agent in whom the copyright is vested, the share ratio, etc., may be otherwise determined taking into consideration the level of contribution to the end product and the characteristics of the subject matter of the contract, such as national security, national defense and diplomatic relations.
(3) Where the head of a local government concludes a contract under paragraphs (1) and (2), he or she shall conclude no contract to the effect that the copyright on the end product is fully vested in a person, other than the relevant local government.
[This Article Newly Inserted on Jan. 20, 2015]
CHAPTER V PUBLIC PROPERTY REGISTER AND REPORTING
 Article 44 (Register and Inspections)
(1) The head of a local government and the head of each government agency shall take necessary measures for preserving its right to the public property under its jurisdiction, such as the record and registration thereof, according to the classifications and types of the relevant public property prescribed in Article 5; and prepare the register of the public property by attaching relevant drawings and other evidential documents thereto. In such cases, electronic data may substitute for the public property register.
(2) A property manager shall inspect the actual status of the public property under his or her jurisdiction each year; prepare and retain the records on matters regarding the management of and changes to such property; and report the results thereof to the head of the relevant local government.
(3) Where it is deemed necessary to efficiently manage public property, the head of a local government may request a specialized institution to inspect the actual management status of public property, determining the scope of public property subject to inspection, the period of inspection, the matters to be inspected, the cost of inspection, etc.
(4) Matters necessary for the scope, methods, etc. of the inspection of the actual status of public property referred to in paragraph (2) shall be prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 45 (Perusal of Property-Related Official Books)
Where it is necessary to manage public property (including disposition on delinquency), any public official in charge of duties regarding public property or any person entrusted with duties of managing or disposing of general property pursuant to Article 43-2 may request the head of the registry office or the head of any other relevant administrative agency to allow the perusal or reproduction of any necessary documents, or to issue a certified copy or extract, or a certificate of registered matters, of such documents, without any charge. <Amended on Feb. 4, 2010; Apr. 12, 2011>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 46 (Price Assessment)
Any accounting treatment of public property, including assessment of the price of public property, shall be in conformity with the accounting standards prescribed in Article 12 of the Local Accounting Act. <Amended on May 29, 2016>
[This Article Wholly Amended on Feb. 4, 2010]
 Article 47 (Preparation of Reports on Actual Status of Public Property)
(1) The head of a local government shall prepare a report on the increase or decrease of the public property under its jurisdiction between the immediately preceding fiscal year and the relevant fiscal year, and a report on the current value of such public property based on the revised prices as of December 31 of each year, as prescribed by Presidential Decree; and submit them to the relevant local council.
(2) Where the head of a local government prepares a report on the increase or decrease of public property pursuant to paragraph (1), he or she shall examine and analyze the increase or decrease from the immediately preceding year organized by causes therefor and by relevant detail.
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER VI COMMON PROVISIONS ON COMMODITIES
 Article 48 Deleted. <Feb. 4, 2010>
 Article 49 (Classification of Commodities)
(1) When using or disposing of commodities under his or her jurisdiction, the head of a local government shall classify the commodities by function, nature, agency, and item, according to the purpose of the use or disposal thereof so as to promote the appropriateness of its use or disposal.
(2) The classification prescribed in paragraph (1) shall not be contrary to the purpose of commodity-related expenses stated in the budget of the relevant local government: Provided, That where it is impracticable to classify the commodities according to the purpose stated in the budget for any special reason, they may be classified otherwise.
(3) The criteria for the classification of commodities and other matters necessary for classifying commodities under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 50 (Prohibition of Investment)
The head of a local government shall not use commodities for investment purposes or establish a private right on them, except in accordance with statutes or municipal ordinances.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 51 (Standardization)
The head of a local government shall standardize the commodities used by its organs as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 52 (Commodity Management Officers)
(1) The head of a local government may delegate the duties related to managing the commodities under his or her jurisdiction to a public official under his or her jurisdiction.
(2) A public official delegated with the duties under paragraph (1) shall be referred to as a "commodity management officer."
[This Article Wholly Amended on Dec. 26, 2008]
 Article 53 (Commodity Accounting Officials)
(1) A commodity management officer (including public officials who take partial charge of commodity management duties pursuant to Article 55 (1); hereinafter the same shall apply) may delegate duties related to the acquisition, disbursement and custody of commodities (excluding duties related to orders of acquisition or disbursement) that he or she manages to a public official of the government office to which he or she belongs, as prescribed by Presidential Decree.
(2) A public official delegated with duties of the acquisition, disbursement and custody of commodities under paragraph (1) shall be referred to as a “commodity accounting official.”
[This Article Wholly Amended on Dec. 26, 2008]
 Article 54 (Commodity Operating Officers)
(1) A commodity management officer may, where necessary, require public officials of the government office to which he or she belongs to use commodities according to the purpose of the business affairs or projects of the local government or according to their use, or delegate duties relating to maintaining, preserving and operating commodities in use (hereinafter referred to as “duties related to using commodities”) to such public officials, as prescribed by Presidential Decree.
(2) A public official delegated with duties related to using commodities under paragraph (1) shall be referred to as a "commodity operating officer."
[This Article Wholly Amended on Dec. 26, 2008]
 Article 55 (Taking Partial Charge of Duties of, and Acting for, Management Agencies)
(1) The head of a local government may have a public official to take partial charge of the duties of commodity management; a commodity management officer may have a public official to take partial charge of the duties of a commodity accounting official, as prescribed by Presidential Decree.
(2) Where a commodity management officer is not able to perform his or her duties for any unavoidable reasons, the head of a local government may designate a public official to act on his or her behalf; where a commodity accounting official or a commodity operating officer is not able to perform his or her duties for any unavoidable reasons, a commodity management officer may designate a public official to act on his or her behalf, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 56 (Sharing of Information on Management of Commodities)
In order to efficiently and appropriately manage commodities of local governments, the Minister of the Interior and Safety may cooperate with the Administrator of the Public Procurement Service by sharing information on commodity management standards, etc. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER VII MANAGEMENT OF COMMODITIES
SECTION 1 Common Provisions
 Article 57 (Plans for Controlling Supply and Demand of Commodities)
(1) The head of a local government shall formulate a plan for the supply-demand control of commodities regarding the acquisition, use, and disposal of commodities for each fiscal year, in accordance with the budget and administrative affairs, or scheduled projects under his or her jurisdiction, as prescribed by Presidential Decree: Provided, That the foregoing shall not apply to commodities prescribed by the Presidential Decree.
(2) Where any cause arises requiring an amendment of the plan for the supply-demand control of commodities referred to in paragraph (1), the head of the local government may amend the plan.
(3) The head of a local government shall acquire, use, or dispose of commodities according to the plan for the supply-demand control of commodities referred to in paragraph (1) (where the plan is amended pursuant to paragraph (2), referring to the amended plan for the supply-demand control of commodities).
[This Article Wholly Amended on Dec. 26, 2008]
 Article 58 (Establishment of Commodity Management Standards)
The head of a local government shall determine the fixed number of major commodities and the standards for using them, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 59 (Inventory Control)
The head of a local government shall establish and administer inventory control standards to ensure appropriate inventory levels of commodities frequently used or to be kept in stock.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 60 (Inventory Investigation)
(1) The head of a local government shall conduct a regular inventory investigation of the commodities under his or her jurisdiction every two years as prescribed by Presidential Decree; where it is deemed necessary, he or she may conduct an occasional inventory investigation in addition to the regular inventory investigation.
(2) Where any loss or damage of commodities is found as a result of an inventory investigation referred to in paragraph (1), a report on the results of taking measures therefor shall be reported to the Board of Audit and Inspection without delay.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 61 (Inventory Adjustment)
Where any increase or decrease of the stock of commodities is found as a result of an inventory investigation prescribed in Article 60, if it is obvious that the change was due to clerical mistakes, the head of a local government may make an inventory adjustment as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 62 (Preparation of Reports on Actual Status of Commodities)
The head of a local government shall prepare a report on the increase or decrease of major commodities between the immediately preceding fiscal year and the relevant fiscal year and a report on the current value of major commodities as of December 31 of each year, as prescribed by Presidential Decree, and submit it to the relevant local council.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 63 (Transfer of Management of Commodities)
Where it is necessary to efficiently use or dispose of commodities, a commodity management officer may transfer the commodities under his or her management to the management of another commodity management officer in the same local government, as prescribed by Presidential Decree.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 64 (Maintenance of Commodities)
The head of a local government shall select commodities to be subject to maintenance, and manage them according to the maintenance standards, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 65 (Standard Form)
A commodity management officer, a commodity operating officer and a commodity accounting official (including any public official who takes partial charge of his or her duties under Article 55 (1); hereinafter the same shall apply) shall keep and maintain records of necessary matters using the standard form prescribed by Presidential Decree (including any entry and output data form necessary for computer processing; hereinafter the same shall apply).
[This Article Wholly Amended on Dec. 26, 2008]
 Article 66 (Computerization of Commodity Management)
The head of a local government shall computerize the duties of commodity management in order to efficiently manage commodities, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 67 (Restrictions on Conduct of Public Officials Engaged in Commodity Management)
(1) No public official engaged in duties of commodity management may acquire commodities that he or she manages from a local government: Provided, That the foregoing shall not apply to commodities prescribed by Presidential Decree.
(2) No conduct that constitutes a violation of paragraph (1) shall be effective.
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 2 Acquisition
 Article 68 (Acquisition)
(1) A commodity management officer shall request a public official in charge of contracts to take necessary measures for acquiring commodities covered by a plan for the supply-demand control of commodities referred to in Article 57 within the limit of such plan, and for acquiring other commodities as needed.
(2) A public official in charge of contracts shall, upon receipt of a request referred to in paragraph (1), take necessary measures to acquire the relevant commodities within the budget, as prescribed by Presidential Decree.
(3) No commodity shall be acquired without a tally process by a public official or technician who is designated by the head of a local government or by a public official to whom the relevant authority is delegated by such head.
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 3 Custody
 Article 69 (Principles of Custody)
Commodities shall be kept in the custody of facilities of the relevant local government with the due care of a good manager, so that they may be used or disposed of at any time: Provided, That the foregoing shall not apply when a commodity management officer deems it inappropriate to hold them in the custody of such facilities of the relevant local government in view of the use or disposal of such commodities or when any compelling reason otherwise exists.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 70 (Orders for Acquisition and Disbursements)
(1) A commodity management officer who intends to have commodities acquired or disbursed shall order a commodity accounting official to receive or disburse such commodities, specifying the categories of the commodities to be received or disbursed.
(2) No commodity accounting official may acquire and disburse commodities unless an order therefor is issued under paragraph (1).
[This Article Wholly Amended on Dec. 26, 2008]
 Article 71 (Disposal of Commodities Unfit for Use)
(1) A commodity accounting official shall report to a commodity management officer on commodities, if they are deemed to be unfit for use or to require repair or alterations among those kept in his or her custody (excluding those returned pursuant to an order issued under Article 73 (2)).
(2) Where it is deemed that any commodity requires repair or alterations according to a report referred to in paragraph (1) or Article 73 (1), a commodity management officer shall request a public official in charge of contracts or other related public official to take necessary measures for such repair or alterations.
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 4 Use
 Article 72 (Use)
A commodity management officer who has issued an order to acquire or disburse commodities to use them shall give notice thereof to a commodity operating officer, specifying the purposes of using such commodities; where there is no commodity operating officer, the notice shall be provided to a public official using commodities (hereinafter referred to as “public official using commodities”): Provided, That the foregoing shall not apply where such order to acquire or disburse commodities has been issued upon request by the commodity operating officer or public official using commodities.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 73 (Return of Commodities in Use)
(1) Where it is deemed that any commodity is not needed or fit for use or requires repair or alterations, among those in use, a commodity operating officer or public official using commodities shall report such fact to a commodity management officer.
(2) Upon receipt of a report referred to in paragraph (1), a commodity management officer shall ascertain the truth of the report and then order a commodity operating officer or public official using commodities to return the relevant commodity if such report is well-founded.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 74 (Loan)
(1) Commodities may be lent where they are intended for lending or where such lending is deemed not to obstruct the business or duties of a local government.
(2) The head of a local government may lend commodities free of charge in cases prescribed by Presidential Decree. <Newly Inserted on Feb. 4, 2010>
(3) Matters necessary for the rates of rental fees, the methods for calculating rental fees, the methods for paying rental fees, etc. when commodities are lent under paragraph (1) shall be prescribed by Presidential Decree. <Amended on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
SECTION 5 Disposition
 Article 75 (Decisions on Disuse)
(1) The head of a local government shall, where any commodity under his or her jurisdiction is no longer needed or fit for use, make a decision on the disuse of such commodity: Provided, That in cases of commodities prescribed by Presidential Decree, such decision may be made by a commodity management officer.
(2) The head of a local government or a commodity management officer may scrap any commodity subject to the decision on disuse he or she has made under paragraph (1) (hereinafter referred to as "commodity in disuse"), if the sale of such commodity is deemed inappropriate or disadvantageous to the local government or is impossible.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 76 (Sale)
(1) No commodity may be sold except those intended for sale or in disuse.
(2) With respect to commodities referred to in paragraph (1) that have not been sold, the head of a local government may establish special cases of sale, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 77 (Request for Disposal of Commodities in Disuse)
Where there are commodities in disuse that have not been disposed of by transfer of management of commodities prescribed in Article 63, transfer, sale, etc., the head a local government may request that the Administrator of the Public Procurement Service dispose of such commodities: Provided, That commodities in disuse that are recyclable may be transferred to the Administrator of the Public Procurement Service without compensation. <Amended on Feb. 4, 2010>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 78 (Transfer of Commodities in Disuse)
(1) With respect to commodities acquired using national subsidies provided for specifically designated purposes or donations that have become subject to a decision on disuse referred to in Article 75, the head of a local government may transfer such commodities according to their designated purposes.
(2) Where it is necessary to utilize commodities in disuse, the head of a local government may concede such commodities to the following, as prescribed by Presidential Decree: the State; other local governments; local government associations referred to in the Local Autonomy Act; institutions designated as a public institution by the Minister of Economy and Finance among the institutions prescribed in Article 4 (1) 1 through 3 of the Act on the Management of Public Institutions; local government-invested public corporations, local public agencies, education institutions or research institutes referred to in the Local Public Enterprises Act; social welfare corporations referred to in the Social Welfare Services Act; social enterprises prescribed in the Social Enterprise Promotion Act; veterans-related organizations designated by the Minister of Patriots and Veterans Affairs; nonprofit organizations performing duties or public projects entrusted by the head of a local government; local residents; or other public service agencies. <Amended on Feb. 4, 2010; Jan. 7, 2014>
[This Article Wholly Amended on Dec. 26, 2008]
 Article 79 (Exchange)
(1) Where it is especially necessary to efficiently manage certain commodities, a local government may exchange the commodities with commodities of the same kind owned by a person other than such local government.
(2) Where any commodity is to be exchanged with another commodity pursuant to paragraph (1), if the prices of the two are not the same, the difference shall be paid in cash: Provided, that the difference shall be paid in a lump sum.
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER VIII SUPPLEMENTARY PROVISIONS
 Article 80 (Collection of Overdue Charges)
Where any person fails to pay the usage fees, rental fees, proceeds from sale, exchange price, or indemnities with regard to public property by their respective payment deadlines, the head of a local government may collect overdue charges for the relevant amount (excluding any interest accrued thereon where the payment is deferred or made in installments), as prescribed by Presidential Decree. In such cases, the period for which the overdue charges are imposed shall not exceed 60 months from the payment deadline. <Amended on Jan. 7, 2014>
[This Article Wholly Amended on Feb. 4, 2010]
 Article 81 (Collection of Indemnities)
(1) With respect to a person who has used, profited from, or occupied public property or commodities (including cases where a person continues to use, profit from, or occupy public property or commodities without permission for use or profit-making or a loan contract after the period of permission for use or profit-making or a loan contract expires; hereinafter referred to as “occupation without permission”) without permission for use or profit-making or a loan contract, the head of a local government shall collect the amount equivalent to 120/100 of the usage fees or rental fees for the relevant public property or commodities (hereinafter referred to as “indemnity”), as prescribed by Presidential Decree: Provided, That in any of the following cases, indemnities shall not be collected: <Amended on Jan. 7, 2014>
1. Where a person (including his or her heir and general successor) has acquired the right to a certain property by paying a considerable price as a result of his or her belief that the title holder identified in an official register or other public records was a rightful owner, if such property is found to be public property or commodities after its acquisition and is attributed to a local government;
2. Where the State or a local government has allowed public property or commodities to be occupied, used, or profited from for a certain period due to measures against disasters or for any other unavoidable reason.
(2) The head of a local government may postpone collecting an indemnity or allow divided payments of the indemnity within a period of five years, as prescribed by Presidential Decree, taking into account the circumstances under which occupation without permission has occurred; the financial conditions of the occupant without permission; the use of the place occupied without permission, etc. <Amended on Jan. 7, 2014>
(3) Where an indemnity is collected, the usages fees and rental fees referred to in Articles 23 and 33 shall not be adjusted.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 82 (Additional Dues for Erroneous Payment)
Where a local government returns the usage fees, rental fees, proceeds from sale, or indemnities of public property which have been erroneously paid, it shall repay the relevant amount and interest accrued thereon, which shall be determined by Presidential Decree in consideration of the level of the interest rate of one-year term deposits, for the period from the day following the date on which such erroneous payment is made until the date the return is made.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 83 (Order to Restore to Original State)
(1) Where public property is occupied or facilities are installed on public property without just cause, the head of a local government may order the restoration to its or their original state or removal of the relevant facilities, or may take necessary measures therefor.
(2) Where a person in receipt of an order prescribed in paragraph (1) fails to comply with the order, such measures as restoring to the original state or removing facilities may be taken under the Administrative Vicarious Execution Act, and the expenses incurred in taking such measures may be collected.
[This Article Wholly Amended on Feb. 4, 2010]
 Article 84 (Monetary Reward for Reports on Concealed Public Property)
Any person who finds and reports on concealed public property may be paid a monetary reward as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 85 (Special Cases concerning Voluntary Restitution of Concealed Public Property)
Where any person acquires concealed public property in good faith and thereafter returns such property to a local government due to any of the following reasons, the property may be sold to such person through a private contract. In such cases, notwithstanding Article 37, such person may be permitted to purchase the property by installment payments over up to 12 years without interest thereon, or by paying a discounted purchase price in a lump sum calculated by deducting an amount equivalent to up to 80 percent of the original purchase price, as differentiated by the reason of his or her return and as prescribed by Presidential Decree:
1. Voluntary restitution;
2. Settlement in the litigation;
3. Other causes prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 86 (Due Wear and Tear of Commodities)
(1) Commodities with wear and tear caused by long-term custody, transportation or any other inevitable ground may be disposed of on the ground of due wear and tear.
(2) The categories, item names, and rates of due wear and tear of commodities that may be disposed of on the ground of due wear and tear shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 87 (Supply of Commodities)
No commodity shall be supplied to a contractor of construction work, manufacturing, etc. unless it is under a contract pursuant to this Act or other statutes.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 88 (Disposal of Damaged Commodities)
Where it is found that a commodity has been lost or damaged as indicated by an inventory investigation referred to in Article 60 (1), the head of a local government may issue an order for compensation referred to in Article 6 (1) of the Act on Liability of Accounting Personnel, Etc., as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 89 (Management of Movables Which Are Not Commodities)
(1) The movables (excluding the movables prescribed in any item of subparagraph 2 of Article 2) which are not commodities as defined in this Act, among the movables kept by a local government, may be managed in ways corresponding to the ways applicable to the commodities prescribed by this Act, as prescribed by Presidential Decree. <Amended on Feb. 4, 2010>
(2) The scope of movables other than commodities referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 90 (Inspection of Commodity Management)
The head of a local government shall regularly inspect the management of commodities and shall also conduct occasional inspections of the management of commodities under his or her jurisdiction when a commodity management officer, a commodity operating officer, or a commodity accounting official is replaced or otherwise such occasional inspection is needed, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 91 (Exclusion from Application to Some Commodities)
With respect to the management of commodities acquired with contract cost prescribed in Article 74 of the Local Finance Act and other commodities prescribed by Presidential Decree, part of this Act may not be applied, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 92 (Disclosure of Operational Status of Public Property and Commodities)
The head of a local government shall disclose important matters related to its financial operation, including the increase or decrease and the current status of public property, the increase or decrease and the current value of major commodities, to its residents at least once each fiscal year.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 92-2 (Utilization of Electronic Data Related to Public Property and Commodities)
(1) The Minister of the Interior and Safety may utilize electronic data on public property and commodities of local governments (hereinafter referred to as "electronic data") where it is necessary in implementing its policies for improving the system for managing public property and commodities, etc., and such data may be published through an information processing system, etc. designated and publicly notified by the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
(2) Matters necessary for the utilization of electronic data, the scope and procedures for publication, etc. pursuant to paragraph (1) shall be prescribed by Presidential Decree.
[This Article Newly Inserted on Feb. 4, 2010]
 Article 93 (Appointment of Accounting-Related Officers or Delegation)
The head of a local government may designate an official post in his or her government office in lieu of appointing a property manager, commodity management officer, commodity operating officer, or commodity accounting official; any person acting on his or her behalf; or any person who takes partial charge of his or her duties (hereinafter referred to as the "accounting-related officer"), or in lieu of delegating the duties of accounting-related officers.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 94 (Acting for, and Taking Partial Charge of Duties of, Accounting-Related Officers)
Where it is deemed necessary, the head of a local government or a public official delegated with his or her duties may appoint a public official who acts for an accounting-related officer to perform all of such officer’s duties or who takes partial charge thereof.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 94-2 (Standards for Operating Public Property and Commodities)
(1) The Minister of the Interior and Safety may establish the standards for operating public property and commodities so that local governments can handle the management and disposal of public property and commodities and its income and expenditure in a consistent manner. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>
(2) Pursuant to the standards for operating public property and commodities referred to in paragraph (1), a local government may enact and operate ordinances or rules prescribing matters pertaining to the management and disposal of public property and commodities and its income and expenditure.
[This Article Newly Inserted on Feb. 4, 2010]
 Article 94-3 (Operation of Office Buildings of Local Governments)
(1) The head of a local government shall manage office buildings of the local government appropriately.
(2) The standards of area for proper management, etc. of office buildings of local governments shall be prescribed by ordinance of the relevant local government within the scope prescribed by Presidential Decree, taking into account the number of residents, the number of public officials, etc. of the relevant local government.
[This Article Newly Inserted on Feb. 4, 2010]
 Article 95 (Mutual Transfer of Public Property and Commodities)
Where it is necessary to efficiently manage public property and commodities, the head of a local government may manage or dispose of them through mutual transfer, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 96 (Provision of Budgetary Incentives and Administrative Activity Expenses to Public Officials Managing Public Property or Commodities)
(1) Where a public official delegated with the duties of managing public property or commodities or a public official taking partial charge of such duties contributes to increasing budgetary revenue or saving budgetary expenditures by identifying concealed public property; collecting indemnities; or efficiently lending, using, trusting, selling, etc. public property or commodities, the head of a local government may pay such public official budgetary incentives pursuant to Article 48 of the Local Finance Act.
(2) The head of a local government may provide public officials in charge of public property with expenses for their administrative activities (referring to expenses incurred in performing duties for general supervision, maintenance and management of public property) within the budget.
(3) Matters necessary for the scope of paying incentives referred to in paragraph (1) shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 26, 2008]
 Article 97 (Application Mutatis Mutandis of the Local Finance Act)
(1) Except as provided in this Act, the Local Finance Act and the Act on Contracts to Which a Local Government Is a Party shall apply mutatis mutandis to the procedures for contracts concerning public property or commodities including the public announcement of a bid and drawing-up of a contract; extinctive prescription of monetary claims and debt obligations; restriction on participation in a bid by illegitimate business operators, etc. <Amended on Jan. 20, 2015>
(2) Where any person fails to pay usage fees referred to in Article 22 (1), rental fees referred to in Article 32 (1), overdue charges referred to in Article 80, or indemnities referred to in Article 81 (1) within the payment deadline, the relevant amount may be collected in the same manner as delinquent local taxes are collected. <Amended on Jan. 7, 2014>
[This Article Wholly Amended on Feb. 4, 2010]
 Article 98 (Application of Matters Related to Education, Science, and Physical Education)
With respect to matters pertaining to education, science, and physical education or matters pertaining to special accounts for educational expenses in this Act, the “head of a local government” or “Special Metropolitan City Mayor, Metropolitan City Mayor, or Do Governor” shall be construed as the “superintendent of education,” and the “Minister of the Interior and Safety” as the “Minister of Education.” <Amended on Mar. 23, 2013; Jan. 7, 2014; Nov. 19, 2014; Jul. 26, 2017>
[This Article Wholly Amended on Dec. 26, 2008]
CHAPTER IX PENALTY PROVISIONS
 Article 99 (Penalty Provisions)
Any person who has used or profited from administrative property in violation of Article 6 (1) shall be punished by imprisonment with labor for up to two years or by a fine not exceeding 20 million won. <Amended on Feb. 4, 2010; Jan. 7, 2014; May 29, 2016>
[This Article Wholly Amended on Dec. 26, 2008]
ADDENDA <Act No. 7665, Aug. 4, 2005>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2006.
(2) (Applicability to Indemnities) The provisions concerning indemnities not subject to adjustment of usage fees and rental fees prescribed in Article 81 (5) shall begin to apply to indemnities imposed after this Act enters into force.
(3) (Transitional Measures concerning Permission for Use or Profit-Making) The permission for use or profit-making, loan, or other acts granted or conducted under the former provisions of the Local Finance Act with respect to public property or commodities of local governments as at the time this Act enters into force shall be deemed to have been granted or conducted under this Act.
(4) (Transitional Measures concerning Application for Permission for Use or Profit-Making) Any application for the permission for use or profit-making, loan, etc. made under the former provisions of the Local Finance Act with respect to public property or commodities of local governments as at the time this Act enters into force shall be governed by the former provisions of the Local Finance Act.
(5) (Relationship to Other Statutes) Where any provision pertaining to managing or disposing of public property or commodities of the former Local Finance Act is cited by other statutes as at the time this Act enters into force, if any provision corresponding thereto exists in this Act, this Act or the relevant provision of this Act shall be deemed cited in lieu of such former provision.
ADDENDA <Act No. 8423, May 11, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Act No. 8635, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That ··· <omitted> ··· the amendments to the Acts to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Act..
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9174, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation: Provided, That the amended provisions of Article 21 (3) and (4) shall enter into force on the date of its promulgation, while the amended provisions of the proviso of Article 29 (1) related to the Financial Investment Services and Capital Markets Act shall enter into force on February 4, 2009.
Article 2 (Special Cases of Application for Renewal of Periods of Permission for Using or Profit-Making from Administrative Property)
Where the period of a contract for using or profit-making is to expire within one month as at the time the amended provisions of Article 21 (3) enter into force, notwithstanding the amended provisions of Article 21 (4), the application for renewing the period of permission for using or profit-making may be submitted to the head of a local government until the date when the period of permission for using or profit-making ends.
Article 3 Omitted.
Article 4 (Relationship to Other Statutes)
Where conservation property which is public property is cited by other statutes or regulations as at the time this Act enters into force, it shall be deemed that property for preservation among administrative property prescribed in this Act has been cited; where miscellaneous property which is public property is cited, it shall be deemed that general property prescribed in this Act has been cited.
ADDENDUM <Act No. 10006, Feb. 4, 2010>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Applicability to Renewal of Permission for Use or Profit-Making and Loan Contracts) The amended provisions of Articles 21 and 31 shall begin to apply when an application for use or profit-making is made or a loan contract is concluded after this Act enters into force.
(3) (Applicability to Termination of Sales Contracts for Public Purposes) The amended provisions of Article 38 (1) 2 shall begin to apply to sales contracts for public purposes concluded after this Act enters into force.
(4) (Transitional Measures concerning Abolition of Transfer of Management) Notwithstanding the amended provisions of Article 63, where the transfer of management of commodities is made under the former provisions, the institution to which the management of commodities is transferred may continue to use such commodities.
ADDENDUM <Act No. 10345, Jun. 8, 2010>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Applicability) The amended provisions of the proviso of Article 21 (3) shall begin to apply to the renewal granted after this Act enters into force.
ADDENDA <Act No. 10580, Apr. 12, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12201, Jan. 7, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Methods for Permission for Use or Profit-Making and Methods for Contracts)
The amended provisions of Article 20 (2) shall begin to apply when a contract for permission for use or profit-making is concluded through a nominated competitive bid after this Act enters into force.
Article 3 (Applicability to Period of Permission for Use or Profit-Making)
The amended provisions of Article 21 (1) shall begin to apply when permission for use or profit-making is granted after this Act enters into force.
Article 4 (Applicability to Renewal of Contract for Use or Profit-Making)
The amended provisions of Article 21 (3) shall begin to apply when a contract for use or profit-making is renewed after this Act enters into force.
Article 5 (Applicability to Deferment of Collection of Indemnities)
The amended provisions of Articles 80 and 81 (2) shall also apply to a person who commits occupation without permission before this Act enters into force (including persons who commit occupation without permission as at the time this Act enters into force), but not subject to paying an indemnity as at the time this Act enters into force.
Article 6 (Transitional Measures concerning Mitigation of Conditions of Adjusting Usage Fees)
Notwithstanding the amended provisions of Articles 23 (1) and 33 (1), the former provisions shall apply when the amount of usage fees or rental fees is already determined under the former provisions as at the time this Act enters into force.
ADDENDA <Act No. 12844, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Act shall enter into on the date of its promulgation: Provided, That the amendments to the Acts to be amended pursuant to Article 6 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Act.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 13017, Jan. 20, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Public Property Management Plans)
The amended provisions of Article 10 (2) and (3) shall begin to apply when a management plan is formulated and submitted after this Act enters into force.
Article 3 (Applicability to Period of Gratuitously Using or Profit-Making from Property Accepted as Donations)
The amended provisions of the proviso of Article 21 (1) shall begin to apply to permission for use or profit-making granted after this Act enters into force, while the amended provisions of the proviso of paragraph (3) of the same Article shall begin to apply to renewal of permission for use or profit-making granted after this Act enters into force.
Article 4 (Applicability to Entrustment of Management of Administrative Property)
The amended provisions of Article 27 (2) shall begin to apply when a contract for entrustment of management is concluded after this Act enters into force.
Article 5 (Applicability to Special Cases of Management or Disposal of Intellectual Property)
The amended provisions of Articles 43-5 through 43-10 shall begin to apply when permission for use, etc. of intellectual property is granted after this Act enters into force.
Article 6 (Applicability to Vesting of Copyrights on Intellectual Property)
The amended provisions of Article 43-10 shall begin to apply when a contract is concluded after this Act enters into force.
ADDENDA <Act No. 13383, Jun. 22, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 14186, May 29, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14197, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of the Acts promulgated before this Act enters into force but the dates they enter into force have yet to arrive, from among the Acts amended under Article 5 of the Addenda, shall enter into force on the respective dates the relevant Acts enter into force.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15794, Oct. 16, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 17765, Dec. 29, 2020>
This Act shall enter into force on January 1, 2021.