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ACT ON THE MANAGEMENT AND PROMOTION OF REAL ESTATE DEVELOPMENT BUSINESS

Act No. 8480, May 17, 2007

Amended by Act No. 8852, Feb. 29, 2008

Act No. 8974, Mar. 21, 2008

Act No. 9340, Jan. 7, 2009

Act No. 10668, May 19, 2011

Act No. 10719, May 24, 2011

Act No. 11599, Dec. 18, 2012

Act No. 11690, Mar. 23, 2013

Act No. 11794, May 22, 2013

Act No. 13480, Aug. 11, 2015

Act No. 13805, Jan. 19, 2016

Act No. 15719, Aug. 14, 2018

Act No. 16140, Dec. 31, 2018

Act No. 16415, Apr. 30, 2019

Act No. 17007, Feb. 18, 2020

Act No. 17453, jun. 9, 2020

Act No. 17799, Dec. 29, 2020

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to provide for basic matters concerning real estate development and matters necessary for registration of real estate development business, obligations of real estate development business entities, etc. thereby contributing to the management and promotion of real estate development business and the protection of the people’s property rights.
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended on Mar. 21, 2008; Aug. 11, 2015; Jun. 9, 2020>
1. The term "real estate development" means any of the following acts: Provided, That taking charge of construction shall be excluded:
(a) Forming land by means of conducting construction work or changing the form and quality of the land;
(b) Constructing, repairing in a large scale, or remodeling buildings, altering the purpose of use thereof, or installing structures. In such cases, "construction," "repair in a large-scale," and "remodeling" mean "construction," "large-scale repair," and "remodeling" under Article 2 (1) 8 through 10 of the Building Act, and "alteration of the purpose of use" means "alteration of the purpose of use" under Article 19 of the same Act;
2. The term "real estate development business" means the business of conducting real estate development for the purpose of providing it to other persons;
3. The term "project operator" means any person who implements public works;
4. The term "registered business entity" means a real estate development business entity registered pursuant to Article 4;
5. The term "provision" means selling or leasing to other persons real estate which is, or is scheduled to be, formed, constructed, repaired in a large scale, remodeled, altered in terms of the purpose of its use, or installed by engaging in real estate development business or all or part of the rights determined by Presidential Decree to use such real estate (hereinafter referred to as “real estate, etc.”);
6. The term "consumer" means a person who is provided or intends to be provided with real estate, etc. by a real estate development business entity;
7. The term "labeling and advertising" means labeling or advertising under subparagraphs 1 and 2 of Article 2 of the Act on Fair Labeling and Advertising.
 Article 3 (Relationship to Other Statutes)
Except as otherwise provided in other statutes, matters concerning real estate development and real estate development business shall be governed by this Act.
CHAPTER II REGISTRATION OF REAL ESTATE DEVELOPMENT BUSINESS
 Article 4 (Registration of Real Estate Development Business)
(1) Where a person intends to conduct real estate development business above the size determined by Presidential Decree, which means the total floor area of a building (referring to the total floor area under Article 84 of the Building Act) is above 2,000 square meters or 5,000 square meters per annum or the land area is above 3,000 square meters or 10,000 square meters per annum, for the purpose of providing the same to other persons, he or she shall register his or her business with a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor"). Provided, That the same shall not apply to any of the following persons: <Amended on Feb. 29, 2008; Mar. 21, 2008; Dec. 18, 2012; Mar. 23, 2013; Aug. 11, 2015; Jan. 19, 2016; Feb. 18, 2020; Jun. 9, 2020>
1. The State and local governments;
2. The Korea Land and Housing Corporation and other public institutions established under the Act on the Management of Public Institutions, prescribed by Presidential Decree;
3. Local government-established public corporations under the Local Public Enterprises Act (hereinafter referred to as "local public enterprise");
4. Housing construction business entities or housing lot formation business entities registered pursuant to Article 4 of the Housing Act (limited to housing construction business or housing lot formation business);
5. A person capable of conducting real estate development projects under other statutes as prescribed by Presidential Decree.
(2) A person who intends to file for registration pursuant to paragraph (1) shall satisfy the following requirements. In such cases, the procedures for registration and other necessary matters shall be prescribed by Presidential Decree: <Amended on May 19, 2011>
1. The amount of capital is to exceed the amount prescribed by Presidential Decree, which is above 300 million won (in cases of individuals, 600 million won of the value of appraised assets for working);
2. Facilities prescribed by Presidential Decree and real estate development experts are to be secured.
(3) Notwithstanding paragraph (2), when a person intending to conduct real estate development business establishes a special purpose corporation without full-time executive officers and employees which are determined by Presidential Decree for the sake of real estate development, he or she shall comply with the requirements for registration and other necessary matters separately determined by Presidential Decree.
(4) Notwithstanding paragraph (1), every landowner may jointly engage in real estate development projects with registered business entities as prescribed by Presidential Decree. In such cases, such landowners and registered business entities shall be deemed joint business entities, and the detailed business affairs, expenses, and allocation of responsibilities among the joint business entities shall be determined by Presidential Decree.
(5) Where any of the following causes arises while a person who fails to file for registration conducts any act referred to in the items of subparagraph 1 of Article 2, he or she may provide real estate, etc. to other persons: <Newly Inserted on Aug. 11, 2015; Dec. 29, 2020>
1. Where a person who conducts any real estate development act deceases or goes bankrupt;
2. Where real estate under development is undergoing court auction procedures;
3. Where he or she provides real estate to his or her lineal ascendant or descendant;
4. Where he or she provides real estate to his or her affiliated company under subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act;
5. Where he or she provides real estate to a corporation the representative of which is a person who conducts a real estate development act;
6. Where he or she is an enterprise or individual at risk of bankruptcy due to excessive debt and files a detailed and objective statement about the cause therefor with an administrative agency in charge of authorization and permission.
(6) Where a person who fails to file for registration falls under paragraph (5) 6, an administration agency in charge of authorization, permission, etc. for any of the acts referred to in the items of subparagraph 1 of Article 2 may consult an attorney-at-law, accountant, etc. within a necessary scope and require the person who filed the statement to submit necessary materials. <Newly Inserted on Aug. 11, 2015>
 Article 5 (Scope of Real Estate Development Experts and Education Therefor)
(1) Real estate development experts under Article 4 (2) 2 means any of the following persons who satisfy the qualifications prescribed by Presidential Decree: <Amended on May 19, 2011; May 22, 2013; Aug. 14, 2018>
1. An attorney-at-law, certified judicial scrivener, certified public accountant, certified tax accountant, certified public appraiser, real estate broker, and certified architect;
2. A person with at least a bachelor's degree in a real estate-related area who engages in the acquisition, disposal, management, and development of real estate or consulting services;
3. A construction engineer under subparagraph 8 of Article 2 of the Construction Technology Promotion Act;
4. Other persons prescribed by Presidential Decree as recognized to have expertise in real estate development.
(2) Real estate development experts under paragraph (1) shall receive advance education necessary for real estate development. In such cases, educational institutions, curricula, persons to be exempt from advance education, and other necessary matters shall be prescribed by Presidential Decree.
 Article 6 (Grounds for Disqualification for Registration of Real Estate Development Business)
No person who falls under any of the following subparagraphs may file for registration of real estate development business under Article 4 (1). The same shall also apply to foreigners or corporations established pursuant to foreign statutes or regulations, which fall under any of the causes in each of the following subparagraphs or causes similar thereto in the relevant countries: <Amended on May 19, 2011; Aug. 11, 2015; Dec. 31, 2018; Jun. 9, 2020>
1. A minor, a person under adult guardianship, or a person under limited guardianship;
2. A person declared bankrupt and not yet reinstated;
3. A person in whose case three years have not passed since his or her imprisonment without labor or heavier punishment declared by a court for committing any of the following crimes was completely executed (including cases where the execution of the sentence is deemed completed) or since the person was exempt from execution of such sentence:
(d) Crimes prescribed in items (a) through (c) subject to aggravated sentencing under other statutes;
4. A person who is under suspension of the execution of his or her imprisonment without labor or heavier punishment for committing a crime specified in any item of subparagraph 3;
5. A person in whose case three years have not passed since the registration of his or her real estate development business was cancelled under Article 25 (1) or (2) 3 or 4 (excluding where registration was cancelled under Article 25 (1) 2 for falling under subparagraph 1 or 2). In such cases, if the person whose registered real estate development business is cancelled is a corporation, the person who committed the act that caused the cancellation of the registration and the representative shall be included;
6. A person who has completed the reporting of business closure under Article 15 (1) subject to the disposition of suspension of business under Article 24 and is under the suspension of business (the period of suspension of business shall be considered to proceed in spite of business closure). In such cases, if the person subject to the disposition of suspension of business is a corporation, the person who committed the act that caused the disposition of suspension of business and the representative shall be included;
7. A corporation, any of whose executive officers (including its representative; hereinafter the same shall apply) falls under any of subparagraphs 1 through 6.
 Article 7 (Delivery of Certificate of Registration and Application for Alteration)
(1) When a Mayor/Do Governor grants registration of real estate development business, he or she shall deliver a certificate of registration of real estate development business, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(2) In cases of any change in the matters prescribed by Presidential Decree from among the matters entered in a certificate of registration of real estate development business, a person who is issued a certificate of registration of real estate development business pursuant to paragraph (1) shall file an application for such change with a Mayor/Do Governor within 30 days, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(3) Where a certificate of registration of real estate development business issued pursuant to paragraph (1) is lost or damaged, it may be re-delivered, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>
 Article 8 (Restrictions on Unjust Labeling and Advertising)
(1) Any person who is not a registered business entity shall neither label or advertise that he or she is the registered business entity under this Act, nor put any label or advertisement that is feared to make him or her misunderstood as a registered business entity.
(2) Except as otherwise provided for in other statutes, when a registered business entity puts a label or advertisement concerning real estate development, he or she shall label or advertise the fact that he or she is registered pursuant to this Act and other matters necessary for consumer protection, as prescribed by Presidential Decree.
(3) Where necessary to determine whether the labels or advertisements under paragraphs (1) and (2) are against this Act, a Mayor/Do Governor may request the heads of relevant administrative agencies and other institutions or organizations for to conduct necessary investigations or submit necessary data. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
 Article 9 (Prohibition on Double Registration)
(1) No registered business entity shall obtain double registration of real estate development business.
(2) No executive officer and employee of a registered business entity who are the real estate development experts under Article 4 (2) shall become a real estate development expert of another registered business entity.
 Article 10 (Prohibition on Lending Certificate of Registration)
(1) Any registered business entity shall neither have another person develop real estate in his or her name or trade name nor transfer or lend his or her certificate of registration of real estate development business to another person.
(2) Any person shall neither engage in real estate development business in another person's name or trade name nor take over or borrow another person's certificate of registration of real estate development business to use it.
 Article 11 (Transfer of Real Estate Development Business)
(1) When a registered business entity falls under any of the following subparagraphs, he or she shall file a report with a Mayor/Do Governor thereon as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, transferees, corporations that continue to exist after merger, or corporations established through merger shall satisfy the requirements for registration of real estate development business under Article 4: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
1. Where the registered business entity intends to transfer the real estate development business concerned;
2. Where a corporation which is a registered business entity and a corporation which is not a registered business entity intend to merge with each other (excluding cases where a corporation which is not a registered business entity is merged into a corporation which is a registered business entity).
(2) In receipt of a report under the former part, with the exception of the subparagraphs of paragraph (1), a Mayor/Do Governor shall examine the content thereof and, if appropriate under this Act, shall accept the report. <Newly Inserted on Dec. 31, 2018; Feb. 18, 2020>
(3) When a report on transfer or merger under paragraph (1) is filed, the transferee shall succeed the transferor's status as a registered business entity, and the corporation surviving such merger or corporation established through merger shall succeed the status of the corporation that ceases to exist after merger, as a registered business entity. <Amended on Dec. 31, 2018>
(4) Any person who succeeds the status as a registered business entity pursuant to paragraph (3) shall succeed the effect of administrative dispositions given to the relevant registered business entity before the transfer or merger of the real estate development business concerned. <Amended on Dec. 31, 2018>
(5) A Mayor/Do Governor may take measures against those who succeed the status as a registered business entity pursuant to paragraph (3), such as corrective measures, request for mediation of conflicts over damage to consumers, suspension of business (including requests for dismissal of and disciplinary action against, executive officers and employees), cancellation of registration of real estate development business, etc. under Articles 22 through 25 on the grounds of offenses committed by former registered business entities before the transfer or merger of the relevant real estate development business. <Amended on Feb. 29, 2008; Mar. 23, 2013; Dec. 31, 2018; Feb. 18, 2020>
(6) The provisions of paragraphs (1) through (5) shall apply mutatis mutandis to the succession of the real estate development business of registered business entities. In such cases, where a successor falls under any of the grounds for disqualification in each subparagraph of Article 6, he or she shall transfer the relevant real estate development business to another person within three months. <Amended on Dec. 31, 2018>
 Article 12 (Public Announcement of Transfer of Real Estate Development Business)
Any person who intends to transfer real estate development business pursuant to Article 11 (1) 1 shall publicly announce it prior to reporting under paragraph (1) of the same Article, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>
 Article 13 (Real Estate Development Business Matters to Be Transferred)
Any person who intends to transfer real estate development business pursuant to Article 11 (1) 1 shall transfer all of the rights and obligations determined by Presidential Decree, concerning real estate, etc., authorization and permission, construction contracts concluded with constructors, supply contracts signed with consumers, etc. in connection with real estate development business.
 Article 14 (Restrictions on Transfer of Real Estate Development Business)
No registered business entity falling under any of the following subparagraphs shall transfer the real estate development business concerned: Provided, That the same shall not apply to cases where real estate development business must be transferred pursuant to the latter part of Article 11 (6): <Amended on Dec. 31, 2018>
1. Where the registered business entity is under suspension of business pursuant to Article 24;
2. Where the registered business entity is subject to a disposition of cancellation of registration of real estate development business pursuant to Article 25 and is under suspension of execution of such disposition pursuant to the Administrative Appeals Act or the Administrative Litigation Act.
 Article 15 (Closure of Real Estate Development Business)
(1) Where a registered business entity intends to close down the real estate development business concerned, he or she shall report such intent to a Mayor/Do Governor. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(2) When a Mayor/Do Governor receives a report on business closure under paragraph (1), he or she shall cancel the registration of the real estate development business and publicly announce such fact. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(3) The method of, and procedures for, reporting and public announcement under paragraphs (1) and (2) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>
CHAPTER III MANAGEMENT OF REAL ESTATE DEVELOPMENT BUSINESS
 Article 16 (Sustainable Real Estate Development and Duty of Good Faith)
(1) Real estate development business entities and their executive officers and employees (hereinafter referred to as "real estate development business entities, etc.") shall make efforts to ensure environment-friendly and sustainable real estate development and consumer protection.
(2) Real estate development business entities, etc. shall conduct real estate development business based upon the principle of good faith.
 Article 17 (Registered Business Entities' Obligation to Report)
Every registered business entity shall report the matters in each of the following subparagraphs to a Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
1. Business records (where a registered business entity who is an individual has established a corporation by investing, in kind, working assets which are used for real estate development business for at least one year, referring to the records, including the business records of the registered business entity who is an individual, and where re-registration is made after the cancelation of registration, referring to the records since the re-registration);
2. Change in capital (in cases of individuals, referring to the value of appraised assets for working; hereinafter the same shall apply);
3. Change in executive officers and real estate development experts.
 Article 18 (Investigation of Actual Conditions of Real Estate Development Business Entities)
(1) Where necessary to confirm conformity or non-conformity with the requirements for registration under Article 4, appropriateness of real estate development, etc., a Mayor/Do Governor may order registered business entities to report their business, financial standing, etc. or may require public officials under his or her control to investigate the management situation of registered business entities or inspect their facilities. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(2) Where necessary for the investigation of management situation of registered business entities under paragraph (1), a Mayor/Do Governor may demand the submission of data on the current status of real estate development, etc. from constructors in charge of construction for real estate development conducted by registered business entities or those that participants in real estate development. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(3) Where the investigation or inspection under paragraph (1) is conducted, those subject to the investigation shall be notified of a plan, which includes the date and time, causes, details, etc. of the investigation, prior to the period determined by Ordinance of the Ministry of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the same shall not apply in urgent cases, or where achieving the objectives of investigation or inspection is deemed impossible because of the destruction of evidence, etc., if an advance notice is given. <Amended on Feb. 29, 2008; Mar. 23, 2013>
(4) Any public official who conducts an investigation or inspection pursuant to paragraph (1) shall carry a certificate indicating his or her authority and present it to interested persons.
(5) The requirements, period and methods of demanding investigation, inspection and submission of data under paragraphs (1) and (2), and other necessary matters shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>
 Article 19 (Comprehensive Management of Real Estate Development Business Information)
(1) A Mayor/Do Governor shall manage information on registered business entities, including the capital, business records, management situation, etc. of such business entities, and information necessary for real estate development in a comprehensive manner and shall provide consumers and related institutions and organizations with information necessary for the protection of consumers, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. In such cases, the information to be provided shall be limited to information that does not violate the trade secrets of registered entities. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
((2) The Minister of Land, Infrastructure and Transport shall build and operate a comprehensive management system of information on real estate development business, as prescribed by Presidential Decree, to support the systematic management of information on real estate development business under paragraph (1). <Amended on Feb. 18, 2020>
 Article 20 (Prohibited Acts)
(1) No real estate development business entity shall conduct any of the following acts:
1. Enticing another person to be provided with real estate, etc., by informing false information or exaggerated facts or cheating;
2. Propagating false information on real estate development to many unspecified individuals for the purpose of enticing other persons to be provided with real estate, etc. by leading them to a faulty judgment;
3. Compelling another person to be provided with real estate, etc. by means of telephone, facsimile, computer network, etc. even though the person expressed his or her intention not to be provided with real estate, etc.
(2) Paragraph (1) shall apply mutatis mutandis to those who handle the business affairs entrusted by real estate development business entities or act for real estate development business entities (including their executive officers and employees; hereinafter the same shall apply).
CHAPTER IV INVESTIGATION AND CORRECTIVE MEASURES
 Article 21 (Investigation of Offenses)
(1) Where necessary to conduct an investigation for corrective measures, suspension of business, request for dismissal of or disciplinary action against executive officers and employees, cancellation of registration, imposition of administrative fines, etc. under Article 22, 24, 25 or 40, a Mayor/Do Governor may issue a disposition in each of the following subparagraphs, or may conduct other necessary investigations, as prescribed by Presidential Decree; and may require public officials under his or her control to enter the offices or business places of real estate development business entities (including those who handle the business affairs entrusted by real estate development business entities or act for them; hereinafter the same shall apply) and inspect their affairs and management status or investigate or inspect books, documents, and other data or matters prescribed by Presidential Decree: <Amended on Feb. 29, 2008; May 19, 2011; Mar. 23, 2013; Feb. 18, 2020>
1. Requesting parties concerned, interested persons, or witnesses to appear and listening to their opinions;
2. Ordering real estate development business entities to report their management status and submit other necessary data or matters.
(2) Any public official who investigates or inspects pursuant to paragraph (1) may order real estate development business entities or their executive officers or employees to submit data or matters necessary for investigation or inspection, as prescribed by Presidential Decree.
(3) Article 18 (4) shall apply mutatis mutandis to public officials engaged in investigation or inspection pursuant to paragraphs (1) and (2).
(4) When a Mayor/Do Governor conducts an investigation or inspection pursuant to paragraphs (1) and (2), he or she shall notify the investigated or inspected real estate development business entities, in writing, of the results thereof (where he or she intends to issue such disposition as an order for corrective measures, upon investigation or inspection, including the details of such disposition). <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(5) Where five years have passed since an offense committed in violation of this Act ceases to exist, a Mayor/Do Governor shall not issue an order for corrective measures under Article 22 or for suspension of business (including the request for dismissal of or disciplinary action against executive officers and employees) under Article 24 for the offense concerned: Provided, That the same shall not apply where parties concerned who accepted recommendations or mediations proposed by the conflict mediation body for damage to consumers under Article 23 (1) fail to comply therewith. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
 Article 22 (Corrective Measures)
(1) Where a registered business entity or its executive officer or employee commits any of the following acts, a Mayor/Do Governor may order the registered business entity or its executive officer or employee to take measures to correct it: <Amended on Feb. 29, 2008; Mar. 23, 2013; Dec. 31, 2018; Feb. 18, 2020>
1. An act in violation of Articles 7 (2), 8 (2), 11 (1) (including where Article 11 (1) apply mutatis mutandis under paragraph (6) of the same Article), 12, 13, 14, 15 (1) or 17;
2. An act falling under any subparagraph of Article 20 (1).
(2) Corrective measures under paragraph (1) means any of the following:
1. Suspension of offenses concerned;
2. Fulfillment of obligations provided for in this Act;
3. Announcement of the fact of being subject to the disposition of corrective measures;
4. Removal, etc. of advertisements, signboards, etc.;
5. Other measures necessary for the correction of offenses.
(3) Matters necessary for the announcement of the fact of being subject to a disposition of corrective measures under paragraph (2) 3 shall be prescribed by Presidential Decree.
 Article 23 (Request for Mediation of Conflicts over Damage to Consumers)
(1) When a consumer files an application for damage relief in connection with an offense committed in violation of this Act, a Mayor/Do Governor may request the conflict mediation body for damage to consumers prescribed by Presidential Decree, such as institutions and organizations that conduct the affairs related to customer protection, before issuing an order for corrective measures under Article 22. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(2) Where a party concerned accepts and complies with recommendations or mediations proposed by the conflict mediation body for damage to consumers under paragraph (1), no corrective measure under Article 22 shall be taken, as prescribed by Presidential Decree. In such cases, the intention not to issue an order for corrective measures shall be notified to the parties concerned.
 Article 24 (Suspension of Business)
(1) Where a registered business entity falls under any of the following, a Mayor/Do Governor may order the suspension of the whole or part of the business concerned, for a fixed period of up to one year: <Amended on Feb. 29, 2008; Jan. 7, 2009; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
1. Where the registered business entity fails to label or advertise the fact that he or she is registered pursuant to this Act and other matters necessary for consumer protection, in violation of Article 8 (2);
2. Where the registered business entity fails to report business records, a change in capital, or change in executive officers and real estate development experts, in violation of Article 17 or makes a false report thereon: Provided, That cases where registration is cancelled pursuant to Article 25 (2) 4 shall be excluded;
3. Where the registered business entity fails to comply with an order for reporting under Article 18 (1) or makes a false report, or refuses, obstructs, or evades investigation or inspection;
4. Where the registered business entity commits an offense falling under any subparagraph of Article 20 (1);
5. Where the registered business entity refuses, obstructs, or evades the investigation or inspection under Article 21 (1);
6. Where the registered business entity fails to file a report or to submit necessary data or matters under Article 21 (1) 2 or paragraph (2) of the same Article, or makes a false report or submits false data or matters;
7. Where an offense is repeated in spite of corrective measures under Article 22, or the corrective measures are not complied with.
(2) In any of the following cases, a Mayor/Do Governor may request registered business entities to dismiss or take a disciplinary action against executive officers and employees who commit an offense: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
1. Where an executive officer or an employee of a registered business entity, who is a real estate development expert under Article 4 (2) 2 becomes a real estate development expert of another registered business entity, in violation of Article 9 (2);
2. Where an executive officer or employee of a registered business entity violates any subparagraph of Article 20 (1).
(3) Detailed criteria for the disposition of suspension of business under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, in consideration of the grounds therefor, gravity of violation, etc. <Amended on Feb. 29, 2008; Mar. 23, 2013>
 Article 25 (Cancellation of Registration of Real Estate Development Business)
(1) Where a registered business entity falls under any of the following cases, a Mayor/Do Governor shall cancel registration of the real estate development business concerned: <Amended on Feb. 29, 2008; Jan. 7, 2009; Mar. 23, 2013; Feb. 18, 2020>
1. Where the registered business entity filed for registration of the real estate development business concerned under Article 4 by fraud or other improper means;
2. Where the registered business entity falls under any of the grounds for disqualification for registration of real estate development business in the subparagraphs of Article 6: Provided, That the same shall not apply where an executive officer of a corporation registered as a real estate development business entity is replaced within three months from the date he or she is known to fall under the grounds for disqualification of registration of real estate development business;
3. Where the registered business entity obtains double registration of real estate development business, in violation of Article 9 (1);
4. Where the registered business entity has another person engage in real estate development in his or her name or trade name or transfers or lends his or her certificate of registration of real estate development business to another person, in violation of Article 10 (1);
5. Where the registered business entity conducts the real estate development business concerned during suspension of business;
6. Where the registered business entity violates any subparagraph of Article 20 (1) again within five years from the date the disposition of suspension of business was taken against the entity for violating Article 20 (1) 1 or 2;
7. Where the registered business entity commits an act subject to the disposition of suspension of business again in the last three years after the disposition of suspension of business was taken twice (once, in the case of suspension of business for at least six months) pursuant to this Act.
(2) Where a registered business entity falls under any of the following, a Mayor/Do Governor may cancel the registration of the real estate development business concerned: <Amended on Feb. 29, 2008; Jan. 7, 2009; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
1. Where the registered business entity fails to satisfy the requirements for registration of real estate development business under Article 4: Provided, That the same shall not apply to cases prescribed by Presidential Decree, such as cases where the requirements for registration are not satisfied temporarily;
2. Where the registered business entity fails to commence the business concerned within one year after the real estate development business concerned is registered;
3. Where the registered business entity fails to comply with the request for dismissing or taking a disciplinary action against executive officers and employees under Article 24 (2);
4. Where the registered business entity makes a false report on crucial facts intentionally or by gross negligence when reporting business records pursuant to Article 17.
(3) Any person whose registered real estate development business is cancelled pursuant to paragraph (1) or (2) shall return the certificate of registration of real estate development business to a Mayor/Do Governor, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
(4) Any person unable to return a certificate of registration of real estate development business pursuant to paragraph (3) by reason of loss, etc. shall submit a written statement explaining the reasons therefor to a Mayor/Do Governor in lieu of the return of the certificate of registration of real estate development business concerned, notwithstanding paragraph (3). <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
 Article 26 (Real Estate Development by Persons Subject to Disposition of Suspension of Business)
(1) Any registered business entity subject to the disposition of suspension of business under Article 24 or the disposition of cancellation of registration under Article 25 and the universal successor thereof may proceed with real estate development that they commenced by concluding a contract with the constructor under subparagraph 7 of Article 2 of the Framework Act on the Construction Industry or by obtaining authorization, permission, etc. pursuant to the relevant statutes or regulations before being subjected to such disposition: Provided, That the same shall not apply where a Mayor/Do Governor deems that a registered business entity subject to the disposition of cancellation of registration has a grave cause that prevents him or her from proceeding with the real estate development concerned in consideration of the details and gravity of the offense concerned. <Amended on Feb. 29, 2008; May 24, 2011; Mar. 23, 2013; Apr. 30, 2019; Feb. 18, 2020>
(2) Where a registered business entity proceeds with real estate development pursuant to paragraph (1) after registration of the real estate development business concerned is cancelled, he or she shall be deemed a registered business entity until the completion of the real estate development concerned.
 Article 27 (Succession of Status as Registered Business Entities)
(1) Where a person whose registration of real estate development business was cancelled according to the report of business closure under Article 15 files for registration of a registered business entity again pursuant to Article 4 within one year therefrom, such registered business entity shall succeed the status as a registered business entity that he or she had maintained before reporting business closure.
(2) Any person who succeeds the status as a registered business entity pursuant to paragraph (1) shall succeed the effect of administrative dispositions given to the former registered business entity before reporting business closure.
(3) A Mayor/Do Governor may take measures, such as issuing an order for corrective measures, requesting mediation of conflicts over damage to consumers, suspending business and cancelling registration under Articles 22 through 25 against those who succeed the status as a registered business entity pursuant to paragraph (1) by reason of offenses committed before business closure is reported. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
 Article 28 (Public Announcement of Cancellation of Registration)
When a Mayor/Do Governor takes measures, such as issuing corrective measures, suspending business (excluding the request for the dismissal of or taking a disciplinary action against executive officers and employees) or cancelling registration, against registered business entities pursuant to Articles 22, 24 and 25, he or she shall announce the details thereof, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020; Jun. 9, 2020>
 Article 29 (Establishment of Association)
(1) Any registered business entity may establish a real estate development business entities' organization (hereinafter referred to as "association") to promote the specialization of affairs related to real estate development and the sound development of the real estate development industry.
(2) The Association shall be a juristic person.
(3) The association shall be incorporated by completing registration of incorporation at the seat of its principal office.
(4) To establish an association, the registered business entity shall have the articles of association be prepared by at least 50 initiators qualified to become association members and obtain authorization from the Minister of Land, Infrastructure and Transport after resolution of the inaugural general meeting. <Amended on Feb. 29, 2008; Mar. 23, 2013>
(5) The articles of incorporation of the association, cancellation of authorization for incorporation, and other necessary matters shall be prescribed by Presidential Decree.
(6) Except as provided in this Act, the provisions of the Civil Act, which pertain to incorporated foundations, shall apply mutatis mutandis to the association.
 Article 30 (Activities of Association and Supervision)
(1) The association shall conduct the following activities:
1. Investigation and research for the sound development of the real estate development industry;
2. Promotion of mutual cooperation between association members;
3. Education and training to improve the quality of real estate development experts and those engaged in the real estate development industry;
4. Voluntary deliberation on labels and advertisements of real estate development business entities;
5. Activities incidental to subparagraphs 1 through 4;
6. Activities prescribed by Presidential Decree other than those under subparagraphs 1 through 5.
(2) The Minister of Land, Infrastructure and Transport may, if necessary for supervisory purposes, have the association report matters regarding its activities, submit data or comply with other necessary orders; and the investigation and inspection of the activities of the association, and other matters necessary for the supervision of the association, shall be prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020>
CHAPTER Ⅴ SUPPLEMENTARY PROVISIONS
 Article 31 (Submission of Materials concerning Affairs of Real Estate Development Business)
Where deemed necessary, the Minister of Land, Infrastructure and Transport may request a Mayor/Do Governor to submit data on administrative affairs, such as taking corrective measures, requesting to mediate disputes over consumer damage, requesting suspension of business, dismissing or taking disciplinary actions against executive officers and employees, and revoking registration under Articles 22 through 25. In such cases, the Mayor/Do Governor requested to submit data shall comply with such request unless there is a compelling reason not to do so.
[This Article Wholly Amended on Feb. 18, 2020]
 Article 32 (Hearings)
When a Mayor/Do Governor intends to cancel registration pursuant to Article 25, he or she shall hold a hearing pursuant to the Administrative Procedures Act. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 18, 2020>
 Article 33 (Fees)
Any of the following persons shall pay fees, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Feb. 29, 2008; Mar. 23, 2013>
1. A person who applies for registration of real estate development business pursuant to Article 4 (1);
2. A person who applies for the re-delivery of a certificate of registration of real estate development business pursuant to Article 7 (3).
 Article 34 (Delegation and Entrustment of Authority)
(1) The Minister of Land, Infrastructure and Transport may delegate part of his or her authority under this Act to the head of an institution under his or her jurisdiction, a Mayor/Do Governor, or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu), as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; May 19, 2011; Mar. 23, 2013>
(2) If necessary for the efficient execution of this Act, a Mayor/Do Governor may entrust any of the following administrative affairs to an institution or organization prescribed by Presidential Decree, as prescribed by Presidential Decree: <Amended on Feb. 29, 2008; May 19, 2011; Mar. 23, 2013; Feb. 18, 2020>
1. Receipt of applications for registration of real estate development business under Article 4 and verification of the details thereof;
2. Receipt of applications for the delivery, re-issuance and alteration of certificate of registration under Article 7 and verification of the details thereof;
3. Receipt of reports on transfer or merger of, and succession to real estate development business under Article 11, and verification of reported details;
4. Receipt of a report on closure of real estate development business under Article 15 and verification of reported details;
5. Receipt of a report on business records, change in capital, and change in executive officers and real estate development experts of registered business entities under Article 17 and verification of reported details;
6. Establishment and operation of the system for the comprehensive management of real estate development business information under Article 19.
 Article 35 (Legal Fiction as Public Officials for Purposes of Penalty Provisions)
Any person that is engaged in entrusted affairs under Article 34 (2) shall be considered a public official in the application of the penalty provisions under Article 127 and Articles 129 through 132 of the Criminal Act. <Amended on Jun. 9, 2020>
CHAPTER Ⅵ PENALTY PROVISIONS
 Article 36 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 50 million won: <Amended on Jan. 7, 2009; Jun. 9, 2020>
1. A person who fails to file for registration under Article 4 (1) or conducts real estate development business after applying for registration by fraud or other improper means;
2. A person who labels or advertises that he or she is a registered business entity under this Act or labels or advertises matters feared to lead others to misunderstand him or her as a registered business entity, in violation of Article 8 (1);
3. A person fails to comply with an order to take corrective measures under Article 22 (1), which is issued for violation of any subparagraph of Article 8 (2) or Article 20 (1);
4. A person who files a false report on crucial facts intentionally or by gross negligence when reporting business records pursuant to Article 17;
5. A person who entices another person to be provided with real estate, etc. by informing him or her of false information or exaggerated facts or by cheating in violation of Article 20 (1) 1 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
 Article 37 (Penalty Provisions)
Any person who conducts business in violation of a disposition of suspension of business under Article 24 (1) shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 30 million won.
 Article 38 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 20 million won:
1. A person who obtains double registration of real estate development business, in violation of Article 9 (1);
2. A person who requires another person to engage in real estate development in his or her name or trade name or transfers or lends his or her certificate of registration of real estate development business to another person, in violation of Article 10 (1);
3. A person who conducts real estate development business in another person's name or trade name, or takes over or borrows another person's certificate of registration of real estate development business, in violation of Article 10 (2);
4. A person who propagates false information on real estate development to many unspecified individuals for the purpose of leading other persons to a faulty judgement to entice them to be provided with real estate, etc., in violation of Article 20 (1) 2 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
 Article 39 (Joint Penalty Provisions)
Where the representative of a corporation, or an agent or employee of, or any other person employed by, a corporation or an individual commits an offense under Articles 36 through 38 in connection with the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business affairs to prevent such offense.
[This Article Wholly Amended on Jan. 7, 2009]
 Article 40 (Administrative Fines)
(1) Any of the following persons shall be punished by an administrative fine for not exceeding 30 million won:
1. A person who fails to indicate the fact that he or she is registered pursuant to this Act and matters necessary for consumer protection in labels or advertisements, in violation of Article 8 (2);
2. A person who compels another person to be provided with real estate, etc. by means of telephone, facsimile, computer networks, etc. in violation of Article 20 (1) 3 (including cases where the provisions of paragraph (2) of the same Article apply mutatis mutandis).
(2) Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended on Jan. 7, 2009; Jun. 9, 2020>
1. A person who becomes a real estate development expert of another registered business entity, in violation of Article 9 (2);
2. A person who fails to file a report on business records, change in capital, and change in officers and real estate development experts in violation of Article 17 or makes a false report thereon: Provided, That those who were punished under Article 36 for falling under subparagraph 4 of the same Article shall be excluded;
3. A person who fails to comply with an order to report under Article 18 (1) or files a false report, or refuses, obstructs, or evades investigation or inspection;
4. A person who refuses, obstructs or evades the investigation and inspection under Article 21 (1);
5. A party concerned with an offense against this Act who fails to appear without any justifiable ground, in violation of Article 21 (1) 1;
6. A person who fails to submit a report or necessary data or matters under Article 21 (1) 2 or paragraph (2) of the same Article or submits a false report, data or matters.
(3) Any of the following persons shall be subject to an administrative fine not exceeding five million won:
1. A person who fails to file an application for alternation of matters entered in the certificate of registration of real estate development business, in violation of Article 7 (2);
2. A person who fails to file a report on the transfer and merger of real estate development business, in violation of Article 11 (1);
3. A person who fails to file a report on business closure, in violation of Article 15 (1);
4. A person who fails to return the certificate of registration of real estate development business or fails to submit a written statement explaining causes that prevent him or her from returning the certificate of registration of real estate development business or submits a false statement, in violation of Article 25 (3) or (4).
(4) Administrative fines under paragraphs (1) through (3) shall be imposed and collected by the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree. <Newly Inserted on Jan. 7, 2009; Mar. 23, 2013>
 Article 41 Deleted. <Jan. 7, 2009>
ADDENDA <Act No. 8480, May 17, 2007>
(1) (Enforcement Date) This Act shall enter into force six months after its promulgation: Provided, That the provisions of Articles 5 (2) and 19 shall enter into force one and a half years after the promulgation.
(2) (Special Cases concerning Advance Education) Notwithstanding the proviso to paragraph (1) of the Addenda, advance education may be provided pursuant to the latter part of Article 5 (2) from the date on which this Act enters into force.
(3) (Transitional Measures concerning Registration of Real Estate Development Business) Notwithstanding Article 4, any person who conducts a real estate development business at the time when this Act enters into force may conduct the real estate development business without filing for registration under Article 4 for six months from the enforcement date of this Act.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 8974, Mar. 21, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 14 Omitted.
ADDENDA <Act No. 9340, Jan. 7, 2009>
(1) (Enforcement Date) This Act shall enter into force on January 1, 2010: Provided, That the amended provisions of Article 39 shall enter into force on the date of the promulgation.
(2) (Applicability to Disposition of Suspension of Business Falling under Grounds for Cancellation of Registration) The amended provisions of Article 25 (1) 7 shall apply, starting from the first imposition of the disposition of suspension of business after this Act enters into force: Provided, That where the number of the disposition of suspension of business imposed after this Act enters into force satisfies the conditions for cancellation of registration of real estate development business under the previous provisions when combined with the number of the disposition of suspension of business imposed before this Act enters into force, the previous provisions shall prevail notwithstanding the amended provisions of Article 25 (1) 7.
(3) (Transitional Measures concerning Penalty Provisions) With respect to the application of penalty provisions and administrative fines to offenses committed before this Act enters into force, the previous provisions shall prevail.
ADDENDUM <Act No. 10668, May 19, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10719, May 24, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11599, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 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. 11794, May 22, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 26 Omitted.
ADDENDA <Act No. 13480, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetent Persons)
A person under adult guardianship or a person under limited guardianship under the amended provisions of subparagraph 1 of Article 6 shall be deemed to include a person for whom the adjudgment for incompetency or quasi-incompetency continues to be effective under Article 2 of the Addenda to the Civil Act (Act No. 10429).
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 15719, Aug. 14, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on December 13, 2018.
Article 2 Omitted.
ADDENDUM <Act No. 16140, Dec. 31, 2018>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 16415, Apr. 30, 2019>
Article 1 (Enforcement Date)
(1) This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
(2) Omitted.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 17007, Feb. 18, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021. (Proviso Omitted.)
Article 2 (Preliminary Measures to Transfer Affairs)
(1) The head of a relevant central administrative agency shall formulate necessary measures to provide required personnel and financial resources necessary for a full-scale transfer of the central administrative authority and affairs under this Act and shall report said measures to a standing committee of the National Assembly not later than three months before the date of entry into force of this Act.
(2) The Committee on Autonomous Decentralization under Article 44 of the Special Act on Local Autonomy and Decentralization, and Restructuring of Local Administrative Systems may specialize in investigating and evaluating required personnel and financial resources under paragraph (1).
Article 3 (General Transitional Measures concerning Administrative Dispositions)
Any disposition or other acts taken or conducted by an administrative agency under the previous provisions as at the time this Act enters into force shall be deemed a disposition or acts taken or conducted by an administrative agency under the provisions of this Act; and any application, report, or other acts filed with or conducted toward an administrative agency under the previous provisions shall be deemed an application, report, or acts filed with or conducted toward an administrative agency under the provisions of this Act.
Article 4 Omitted.
ADDENDUM <Act No. 17453, Jun. 9, 2020>
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
ADDENDA <Act No. 17799, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 26 Omitted.