ACT ON THE IMPROVEMENT OF URBAN AREAS AND RESIDENTIAL ENVIRONMENTS
Wholly Amended by Act No. 14567, Feb. 8, 2017
Amended by Act No. 14792, Apr. 18, 2017
Act No. 14857, Aug. 9, 2017
Act No. 14943, Oct. 24, 2017
Act No. 15022, Oct. 31, 2017
Act No. 15356, Jan. 16, 2018
Act No. 15489, Mar. 20, 2018
Act No. 15676, jun. 12, 2018
Act No. 16383, Apr. 23, 2019
Act No. 16493, Aug. 20, 2019
Act No. 17872, Jan. 5, 2020
Act No. 17091, Mar. 24, 2020
Act No. 17171, Mar. 31, 2020
Act No. 17219, Apr. 7, 2020
Act No. 17447, jun. 9, 2020
Act No. 17453, jun. 9, 2020
Act No. 17459, jun. 9, 2020
Act No. 17689, Dec. 22, 2020
Act No. 17814, Dec. 31, 2020
Act No. 17893, Jan. 12, 2021
Act No. 17943, Mar. 16, 2021
Act No. 18830, Feb. 3, 2022
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to improving urban environments and the quality of residential environment by providing for matters necessary to systematically improve areas that require recovery of their urban functions or areas with a substandard residential environment and to efficiently ameliorate dilapidated and substandard structures in such areas.
The terms used in this Act are defined as follows: <Amended on Aug. 9, 2017; Jan. 5, 2021; Jan. 12, 2021; Apr. 13, 2021>
| 1. | The term "improvement zone" means an area designated and publicly notified pursuant to Article 16 to systematically implement an improvement project therein; |
| 2. | The term "improvement project" means the following projects for improving fundamental infrastructure in an improvement zone; or for improving or building houses and other structures in the improvement zone according to the procedures provided for in this Act to have such improvement zone recover its urban functions: |
| (a) | Residential environment improvement project: A project for improving the residential environment of an area where low-income urban dwellers cluster in overcrowded, dilapidated, and substandard structures with extremely substandard fundamental infrastructure or for preserving, improving or ameliorating the residential environment of an area where detached houses and multi-household houses are concentrated, by expanding fundamental infrastructure and increasing common facilities in such area; |
| (b) | A redevelopment project: A project for improving the residential environment of an area where dilapidated and substandard structures are concentrated with substandard fundamental infrastructure or for improving the urban environment of a commercial area, an industrial area or other area to have the area recover its urban functions, promote commercial activities, and make other improvements in such area. In such cases, a redevelopment project meeting all of the following requirements is referred to as a "public redevelopment project": |
| (i) | The Special Self-Governing City Mayor, the Governor of a Special Self-Governing Province, the head of a Si, a Gun, the head of an autonomous Gu (hereinafter referred to as the "head of the relevant Si/Gun/Gu"), or the Korea Land and Housing Corporation or a local government-invested public corporation referred to in subparagraph 10 (including projects implemented jointly with an association) shall implement a residential environment improvement project provided in Article 24, a redevelopment project implementer provided in Article 25 (1) or 26 (1), or a redevelopment project agent provided in Article 28 (hereinafter referred to as "implementer of a public redevelopment project"); |
| (ii) | At least 50/100 of the total number or the total floor area of the households of the houses built or provided minus the number of households or the total floor area allotted to be sold to an owner of a plot of land or structure (excluding co-owned houses defined in Article 80) shall be built or provided as co-owned houses defined in Article 80, public rental housings defined in the Special Act on Public Housing (hereinafter referred to as "public rental housing"), or publicly-funded private rental housings defined in subparagraph 4 of Article 2 the Special Act on Private Rental Housing (hereinafter referred to as "publicly-funded private rental housing"). In such cases, methods for calculating the number of houses and the construction ratio of each type of houses shall be prescribed by Presidential Decree; |
| (c) | A reconstruction project: A project for improving the residential environment of an area where multi-family housing units, which are classified as dilapidated and substandard structures, are concentrated, although the area has good fundamental infrastructure. In such cases, a redevelopment project meeting all of the following requirements is referred to as a "public reconstruction project"; |
| (i) | The head of the relevant Si/Gun/Gu or the Korea Land and Housing Corporation or a local government-invested public corporation (including projects implemented jointly with an association) shall be a reconstruction project implementer under Article 25 (2) or 26 (1) or the a reconstruction project agent under Article 28 (1) (hereinafter referred to as "public reconstruction project implementer"); |
| (ii) | Constructing and supplying at least the number of households prescribed by Presidential Decree, in consideration of the previous floor area ratio, land size, the status of infrastructure, etc.: Provided, That the same shall not apply where the Authority to designate improvement zones under Article 8 (1) recognizes that it is impossible to construct or supply houses in the relevant numbers for unavoidable reasons prescribed by Presidential Decree, such as urban or Gun master plans under Article 18 of the National Land Planning and Utilization Act and the status of land use; |
| 3. | The term "dilapidated and substandard structure" means any of the following structures: |
| (a) | A structure vulnerable to collapse and other accidents due to damage or partial destruction; |
| (b) | A structure specified by Presidential Decree as an earthquake-prone structure with a serious functional or structural defect due to faulty design or construction; |
| (c) | A structure specified by ordinance of the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, a Special Self-Governing Province or a large city with a population of at least 500,000 (hereinafter referred to as “large city”), other than the Seoul Special Metropolitan City, Metropolitan Cities and Special Self-Governing Cities referred to in Article 198 of the Local Autonomy Act, (hereinafter referred to as "City/Do ordinance"), as prescribed by Presidential Decree, among the structures that meet the following criteria: |
| (i) | A structure in a substandard residential environment, compared with present conditions of surrounding land; |
| (ii) | The utility of a newly-built structure, after demolishing an existing structure, should increase substantially in comparison with the costs to be incurred therefor; |
| (d) | A structure specified by City/Do ordinance, as prescribed by Presidential Decree, among structures deteriorating the urban aesthetics and dilapidated structures; |
| 4. | The term "fundamental infrastructure" means roads, waterworks, water supply and drainages, ditches, parks, public parking lots, utility tunnels (referring to the utility tunnels defined in subparagraph 9 of Article 2 of the National Land Planning and Utilization Act; hereinafter the same shall apply), and other facilities specified by Presidential Decree as necessary for residents' living, including facilities for supplying thermal energy and gas; |
| 5. | The term "common facility" means a playground, community hall or communal workshop shared by residents or other facilities specified by Presidential Decree; |
| 6. | The term "building site" means a plot of land developed by implementing an improvement project; |
| 7. | The term "housing complex" means a plot of land which falls under the following categories, on which houses and appurtenant and welfare facilities are built; or which has been developed as a building site: |
| (a) | A plot of land on which houses and appurtenant and welfare facilities have been built according to a project plan approved under Article 15 of the Housing Act; |
| (b) | Each plot of land subdivided for management into a road built as an urban or Gun planning facility, defined in subparagraph 7 of Article 2 of the National Land Planning and Utilization Act (hereinafter referred to as "urban or Gun planning facilities"), and any other similar facility, out of a plot of land specified in item (a); |
| (c) | At least two plots of land specified in item (a), deemed a plot of land for joint management; |
| (d) | A plot of land subdivided or to be subdivided under Article 67; |
| 8. | The term "project implementer" means a person implementing an improvement project; |
| 9. | The term "owner of a plot of land or structure" means any of the following persons: Provided, That, a trustor shall be deemed the owner of a plot of land or structure, where a trust business entity, defined in Article 8 (7) of the Financial Investment Services and Capital Markets Act, is designated as a project implementer pursuant to Article 27 (1) and the owner of the piece of land or the structure places the land or structure in trust with the trust business entity for the relevant improvement project: |
| (a) | The owner of a plot of land or structure in an improvement zone, in cases of a residential environment improvement project or a redevelopment project; or the holder of a surface right over such piece of land; |
| (b) | The owner of a structure in an improvement zone and the land appurtenant to the structure, in cases of a reconstruction project; |
| 11. | The term "articles of association, etc." means the following: |
| (a) | Articles of association referred to in Article 40; |
| (b) | Bylaws stipulated autonomously by the owner of a plot of land or structure as a project implementer; |
| (c) | Enforcement regulations prepared by the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, or a trust business entity pursuant to Article 53. |
| Article 3 (Basic Policy for Improving Urban and Residential Environments) |
In order to improve urban and residential environments, the Minister of Land, Infrastructure and Transport shall establish a ten-year basic policy, including the following; review the validity of the policy once every five years; and reflect findings of such review in the basic policy:
| 1. | Setting directions for national policies for improving urban and residential environments; |
| 2. | Setting directions for formulating master plans to improve urban and residential environments under Article 4 (1); |
| 3. | Formulating a plan for surveying and improving dilapidated and substandard residential areas; |
| 4. | Formulating a financing plan necessary for improving urban and residential environments; |
| 5. | Providing for other matters specified by Presidential Decree as necessary for improving urban and residential environments. |
CHAPTER II FORMULATION OF MASTER PLANS AND DESIGNATION OF IMPROVEMENT ZONES
| Article 4 (Formulation of Master Plans to Improve Urban and Residential Environments) |
| (1) | The Special Metropolitan City Mayor, each Metropolitan City Mayor, Special Self-Governing City Mayor or Special Self-Governing Province Governor and the head of each Si shall formulate a ten-year master plan to improve urban and residential environments (hereinafter referred to as "master plan") in the area within the jurisdiction of each: Provided, That a Do Governor need not formulate a master plan for a Si not recognized as a large city, if the Do Governor deems it unnecessary to formulate a master plan for such city. |
| (2) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor or a Special Self-Governing Province Governor and the head of each Si (hereinafter referred to as the "Authority to formulate master plans") shall review the validity of a master plan once every five years and shall reflect findings of the review in the master plan. <Amended on Jun. 9, 2020> |
| Article 5 (Contents of Master Plans) |
| (1) | A master plan shall include the following: |
| 1. | Basic direction-setting for improvement projects; |
| 2. | The period anticipated for implementing each improvement project; |
| 3. | Details about population, structures, land use, fundamental infrastructure, geographical features, environment, etc.; |
| 4. | A plan for managing residential areas; |
| 5. | A land use plan, a plan for fundamental infrastructure, a plan for constructing common facilities and a traffic plan; |
| 6. | An environmental plan for green areas, landscaping, energy supply, disposal of waste, etc.; |
| 7. | A plan for establishing social welfare facilities, facilities for residents' cultural activities, etc.; |
| 8. | Basic direction-setting for greater-regional urban renewal; |
| 9. | Approximate bounds of each area to be designated as an improvement zone pursuant to Article 16 (hereinafter referred to as "prospective improvement zone"); |
| 10. | A plan to implement an improvement project by phases (such plan shall include the time for formulating an improvement plan for each prospective improvement zone); |
| 11. | A plan for the density of structures, including the building-to-land ratio and the floor area ratio; |
| 12. | Measures for stabilizing tenants' housing needs; |
| 13. | Other matters specified by Presidential Decree as necessary for improving residential environments, etc. |
| (2) | If a master plan includes any of the following matters, the Authority to formulate master plans may omit the matters specified in paragraph (1) 9 and 10: |
| 1. | The determination of boundaries of each living circle, a plan for establishing infrastructure and housing supply in each living circle; |
| 2. | Direction-setting for improving, conserving, and managing residential areas in each living circle. |
| (3) | Guidelines and methods for formulating master plans shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
| Article 6 (Gathering Residents' Opinions for Formulating Master Plans) |
| (1) | In order to formulate or amend a master plan, the Authority to formulate master plans shall gather residents' consensus after making the master plan available to residents for inspection for at least 14 days; and shall reflect their opinions in the master plan, if such opinions are found reasonable. |
| (2) | The Authority to formulate master plans shall seek the opinion of the relevant local council while it makes the master plan available to residents for inspection under paragraph (1). In such cases, the local council shall present its opinion within 60 days from the date it is notified of the master plan by the Authority to formulate master plans; and if the local council fails to present its opinion within such 60-day period, it shall be deemed to have no objection. |
| (3) | Notwithstanding paragraphs (1) and (2), the Authority to formulate master plans need not follow the procedures for making a master plan available for residents' inspection and seeking the opinion of the relevant local council to modify the minor matters specified by Presidential Decree. |
| Article 7 (Final Determination and Public Notice of Master Plans) |
| (1) | In order to formulate or amend a master plan, the Authority to formulate master plans (excluding the head of a Si not recognized as a large city) shall first consult with the heads of related administrative agencies thereon; and shall forward the proposed master plan or amendment to a local urban planning committee under Article 113 (1) or (2) of the National Land Planning and Utilization Act (hereinafter referred to as "local urban planning committee") for deliberation: Provided, That any modification of the minor matters specified by Presidential Decree requires no consultation with the heads of related administrative agencies and deliberation by the local urban planning committee. |
| (2) | In order to formulate or amend a master plan, the head of a Si not recognized as a large city shall obtain approval from the competent Do Governor and such Do Governor shall consult with the heads of related administrative agencies and forward the proposed master plan or amendment to a local urban planning committee for deliberation before approving the master plan or amendment: Provided, That any modification provided in the proviso of paragraph (1) requires no approval from the competent Do Governor. |
| (3) | Upon formulating or amending a master plan, the Authority to formulate master plans shall publish notice of the master plan or amendment without delay in the public gazette of the relevant local government; and shall make it available to the general public for inspection. |
| (4) | After publicly notifying a master plan under paragraph (3), the Authority to formulate master plans shall report thereon to the Minister of Land, Infrastructure and Transport, according to the method and procedure prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 8 (Designation of Improvement Zones) |
| (1) | The Special Metropolitan City Mayor, a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, Special Self-Governing Province Governor or the head of a Si/Gun (excluding the head of a Gun in a Metropolitan City; hereinafter referred to as the "Authority to designate improvement zones") may determine an improvement plan pursuant to Article 16; and may designate (or revise a designation) an area that meets the criteria prescribed by Presidential Decree, such as an area where dilapidated and substandard structures are concentrated, within the extent consistent with the master plan. |
| (2) | Notwithstanding paragraph (1), the Authority to designate improvement zones may designate an improvement zone without formulating or amending a master plan if it intends to implement an improvement project pursuant to Article 26 (1) 1 or 27 (1) 1. |
| (3) | If necessary for opening an access road to an improvement zone, the Authority to designate improvement zones may include the area of the access road and an area abutting on the road in the designated improvement zone. |
| (4) | The Authority to designate improvement zones may directly formulate an improvement plan under Article 9 to designate an improvement zone. |
| (5) | The head of an autonomous Gu or the head of a Gun in a Metropolitan City (hereafter in Articles 9, 11 and 20 referred to as the "head of a Gu or a Gun in a Metropolitan City") shall formulate an improvement plan under Article 9; and shall apply for designation of an improvement zone to the competent Metropolitan City Mayor or Metropolitan City Mayor. In such cases, the application shall be accompanied by a written opinion of the relevant local council under Article 15 (2). |
| Article 9 (Contents of Improvement Plans) |
| (1) | An improvement plan shall include the following: <Amended on Jan. 16, 2018; Apr. 13, 2021> |
| 1. | The name of the improvement project; |
| 2. | The improvement zone and its area; |
| 3. | A plan for constructing urban or Gun planning facilities; |
| 4. | A plan for constructing common facilities; |
| 5. | A plan regarding main uses, the building-to-land ratio, the floor area ratio and height of each structure; |
| 6. | A plan for environmental conservation and disaster prevention; |
| 7. | A plan for protecting educational environments around the improvement zone; |
| 8. | Measures for housing tenants; |
| 9. | The time frames for implementing the improvement project; |
| 10. | The following matters, if it is intended to supply units of publicly-funded private rental housing or to entrust houses to a housing rental management business operator defined in subparagraph 11 of Article 2 of that Act (hereinafter referred to as "housing rental management business operator") for rental purposes: Provided, That items (b) and (c) shall be included only where a project meets the criteria prescribed by Presidential Decree with the ratio of publicly-funded private rental housing units or housing units the rental of which is outsourced to a housing rental management business operator (hereinafter referred to as "housing units under outsourced rental management") to the total number of housing units to be built being at least 20/100 and with the rent term being at least eight years: |
| (a) | A land use plan for each lot for publicly-funded private rental housing units or housing units under outsourced rental management; |
| (b) | A plan regarding the uses of structures, necessary for promoting combined land use by combining functions of housing, commercial activities, business activities, etc.; |
| (d) | Other matters specified by Presidential Decree for efficient supply, etc. of publicly-funded private rental housing units or housing units under outsourced rental management; |
| 12. | Other matters specified by Presidential Decree as necessary for implementing improvement projects. |
| (2) | An improvement plan that includes the matters specified in paragraph (1) 10 (c) need not comply with the relevant master plan that includes a plan for the density of structures, including the building-to-land ratio and the floor area ratio, referred to in Article 5 (1) 11. |
| (3) | When a Special Metropolitan City Mayor, a Special Self-Governing Province Governor, the head of a Si/Gun or the head of a Gu or a Gun in a Metropolitan City (hereinafter referred to as the "Authority to formulate improvement plans") formulates an improvement plan for an area for which a master plan has been formulated, including the matters specified in Article 5 (2), pursuant to Article 8 (4) or (5), he or she may formulate a detailed plan for the matters specified in Article 5 (2) for the relevant living circle where the improvement zone is located. |
| (4) | Guidelines and methods for formulating improvement plans shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
| Article 10 (Construction Ratio of Rental Housing and Other Housing by Size) |
| (1) | The Authority to formulate improvement plans shall reflect the construction ratio of rental housing and other housing by size, as determined and publicly notified by the Minister of Land, Infrastructure and Transport, in the improvement plan for the housing units built in an improvement project within the following limits, to stabilize housing supply and demand and to accord more opportunities for low-income residents: <Amended on Apr. 13, 2021> |
| 1. | Housing units in the national standard housing size defined in subparagraph 6 of Article 2 of the Housing Act (hereinafter referred to as "housing unit of the national standard housing size") shall not exceed 90/100 of the total number of housing units within the limits specified by Presidential Decree; |
| 2. | The number of rental housing units (referring to public rental housing units and private rental housing units under the Special Act on Private Rental Housing; hereinafter the same shall apply) shall not exceed 30/100 of the total number of housing units or the total floor area within the limits prescribed by Presidential Decree. |
| (2) | A project implementer shall build houses, as publicly notified pursuant to paragraph (1). |
| Article 11 (Relaxation of Floor Area Ratios in Formulating Master Plans or Improvement Plans) |
| (1) | The Authority to formulate master plans or the Authority to formulate improvement plans may determine the floor area ratio for a residential area provided in Article 36 of the National Land Planning and Utilization Act up to the maximum limit on the floor area ratio provided in that Article or other related statutes, irrespective of the floor area ratio specified by municipal ordinance pursuant to Article 78 of that Act, if it intends to formulate (or amend) a master plan or an improvement plan for efficiently implementing an improvement project. |
| (2) | Where it is deemed necessary to formulate an improvement plan to urgently implement an improvement project because a structure is likely to collapse due to an act of God or other unavoidable reasons, the Authority to formulate master plans or the Authority to formulate improvement plans may formulate a master plan or an improvement plan after relaxing the floor area ratio by changing a special-purpose area. In such cases, the Authority to formulate master plans, the Authority to formulate improvement plans, and the Authority to designate improvement zones shall not request a contributed acceptance on the grounds of such change of a special-purpose area. <Newly Inserted on Apr. 13, 2021> |
| (3) | Where the head of a Gu or a Gun in a Metropolitan City or the head of a Si not recognized as a large city intends to formulate or amend an improvement plan pursuant to paragraph (1), he or she may request the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor to amend the relevant master plan or to approve such amendment. <Amended on Apr. 13, 2021> |
| Article 12 (Safety Inspections for Formulating Improvement Plans for Reconstruction Projects) |
| (1) | When the time for formulating an improvement plan for each prospective improvement zone referred to in Article 5 (1) 10 arrives, the Authority to formulate improvement plans shall conduct a safety inspection for formulating an improvement plan for a reconstruction project. |
| (2) | Notwithstanding paragraph (1), the Authority to formulate improvement plans shall conduct a safety inspection in any of the following cases. In such cases, the Authority to formulate improvement plans shall require the person who requests the safety inspection to defray any costs incurred in conducting the safety inspection: |
| 1. | Where a person who intends to propose the formulation of an implementation plan pursuant to Article 14 requests a safety inspection with the consent of at least 1/10 of the owners of a structure and the land appurtenant to such structure in the relevant prospective improvement zone before proposing the formulation of such plan; |
| 2. | Where a person who intends to implement a reconstruction project in an area not designated as a prospective improvement zone under Article 5 (2) requests a safety inspection with the consent of at least 1/10 of the owners of a structure and the land appurtenant to such structure in the prospective project zone; |
| 3. | Where the owner of a structure referred to in subparagraph 3 (b) of Article 2 intends to implement a reconstruction project and requests a safety inspection with the consent of at least 1/10 of the owners of a structure and the land appurtenant to such structure in the prospective project zone. |
| (3) | A safety inspection for a reconstruction project under paragraph (1) shall be conducted on structures in a housing complex: Provided, That the structures specified by Presidential Decree in a housing complex may be excluded from such safety inspection. |
| (4) | The Authority to formulate improvement plans shall determine whether to conduct a safety inspection by examining the structural safety of relevant structures, architectural finishes, the level of deterioration of facilities, the appropriateness of residential environments, etc. through on-site checks; and shall request any safety inspection institution specified by Presidential Decree to conduct a safety inspection, if the Authority determines that a safety inspection is necessary. |
| (5) | A safety inspection institution requested to conduct a safety inspection under paragraph (4) shall conduct the safety inspection according to the standards determined and publicly notified by the Minister of Land, Infrastructure and Transport (including the cost of ensuring seismic performance of structures); shall prepare a report on findings of the safety inspection, according to the method and procedure prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; and shall submit the report to the Authority to formulate the relevant improvement plan and the person who requested the safety inspection pursuant to paragraph (2). |
| (6) | The Authority to formulate improvement plans shall determine whether to formulate an improvement plan after comprehensively reviewing the findings of a safety inspection conducted pursuant to paragraph (5), the relevant urban plan, local conditions, etc. |
| (7) | Subject matters of safety inspections provided in paragraphs (1) through (6), the standards for safety inspections, institutions authorized to conduct safety inspections, the procedures for designating such institutions, inspection fees and other necessary matters shall be prescribed by Presidential Decree. |
| Article 13 (Assessment of Validity of Findings of Safety Inspections) |
| (1) | Upon determining whether to formulate an improvement plan pursuant to Article 12 (6), the Authority to formulate improvement plans (excluding a Special Self-Governing City Mayor and Special Self-Governing Province Governor; hereafter in this Article the same shall apply) shall without delay submit a report on the determination and findings of the relevant safety inspection to the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor. |
| (2) | If necessary, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or a Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor") may request the Korea Authority of Land and Infrastructure Safety established pursuant to the Act on the Korea Authority of Land and Infrastructure Safety or the Korea Institute of Civil Engineering and Building Technology established pursuant to the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes to assess the validity of findings of a safety inspection. <Amended on Jun. 9, 2020> |
| (3) | The Minister of Land, Infrastructure and Transport may request a Mayor/Do Governor to submit a report on findings of a safety inspection; and may also request the Mayor/Do Governor to assess the validity of the findings of the safety inspection, if necessary. <Amended on Jun. 9, 2020> |
| (4) | A Mayor/Do Governor may request the Authority to formulate improvement plans to revoke its determination to formulate an improvement plan or to take other necessary measures, based on the findings of the assessment conducted under paragraph (2) or (3); and the Authority to formulate improvement plans shall comply with such request, unless there is a compelling reason not to do so: Provided, That a Special Self-Governing City Mayor or Special Self-Governing Province Governor may, at his or her discretion, revoke the Authority’s determination to formulate an improvement plan or may take other necessary measures. |
| (5) | Matters necessary for assessing findings of safety inspections under paragraphs (1) through (4) shall be prescribed by Presidential Decree. |
| Article 14 (Proposals to Formulate Improvement Plans) |
| (1) | In any of the following cases, the owner of a plot of land or structure (or a person who intends to be a project implementer pursuant to Article 26 (1) 1 or 27 (1) 1, in cases falling under subparagraph 5) may propose the Authority to formulate improvement plans to draw up one: <Amended on Jan. 16, 2018; Apr. 13, 2021> |
| 1. | Where no improvement plan has been formulated even after the deadline for formulating an improvement plan for each prospective improvement zone, according to the plan for implementing an improvement project by phase under Article 5 (1) 10; or where no deadline is specified for formulating an improvement plan for each prospective improvement zone under that subparagraph; |
| 2. | Where the owner of a plot of land or structure intends to request the Authority to formulate improvement plans to designate the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer pursuant to Article 26 (1) 7 or 8; |
| 3. | Where a Si not recognized as a large city or a Gun is specified by City/Do ordinance; |
| 4. | Where a request is made to formulate an improvement plan that includes the matters specified in Article 9 (1) 10 to supply publicly-funded private rental housing units through an improvement project or to outsource rental of houses to a housing rental management business operator; |
| 5. | Where it is intended to implement an improvement project pursuant to Article 26 (1) 1 or 27 (1) 1; |
| 6. | Where the owners of a plot of land or structure (referring to members of the relevant association, if it exists; hereafter in this subparagraph the same shall apply) request an amendment of the relevant improvement plan with the consent of at least 2/3 of them: Provided, That it is unnecessary to follow the procedures for obtaining consent of the owners of a plot of land or structure, if it is intended to amend any of the minor matters referred to in Article 15 (3); |
| 7. | Where the owners of a plot of land or structure intend to promote a public redevelopment project or public reconstruction project. |
| (2) | Matters necessary for obtaining consent of the owners of a plot of land or structure to propose the formulation of improvement plans and for processing such proposal, etc. shall be prescribed by Presidential Decree. |
| Article 15 (Gathering Residents' Opinions for Formulating Improvement Plans) |
| (1) | In order to formulate or amend an improvement plan, the Authority to formulate improvement plans shall notify residents of the improvement plan in writing; gather consensus from residents thereon after making the plan available for inspection for at least 30 days or after giving a presentation; and shall reflect their opinions in the improvement plan, if such opinions are found reasonable. |
| (2) | The Authority to formulate improvement plans shall seek the opinion of the relevant local council while it makes an implementation plan available to residents for inspection under paragraph (1). In such cases, the local council shall present its opinion within 60 days from the date it is notified of the implementation plan by the Authority to formulate improvement plans; and the local council shall be deemed to have no objection, if it fails to present its opinion within such 60-day period. |
| (3) | Notwithstanding paragraphs (1) and (2), the Authority to formulate improvement plans need not follow the procedures for notifying residents of the improvement plan in writing; giving a presentation; making the improvement plan available to residents for inspection; and seeking the opinion of the relevant local council to amend the minor matters specified by Presidential Decree. |
| (4) | The Authority to formulate improvement plans that intends to formulate an improvement plan which includes vesting of the ownership of fundamental infrastructure and State or public property and the disposal of such infrastructure and property pursuant to Articles 97, 98 and 101, shall first seek opinions thereon from the authorities in charge of such fundamental infrastructure and State or public property. |
| Article 16 (Determination of Improvement Plans and Designation and Public Notice of Improvement Zones) |
| (1) | When the Authority to designate improvement zones intends to designate an improvement zone or amend the designation of an improvement zone, the Authority shall refer the case to the local urban planning committee for deliberation: Provided, That a modification of the minor matters specified in Article 15 (3) does not require deliberation by the local urban planning committee. <Amended on Jun. 12, 2018> |
| (2) | When the Authority to designate improvement zones designates an improvement zone (or amends such designation; hereinafter the same shall apply) or determines an improvement plan (or determines to amend such plan; hereinafter the same shall apply), the Authority shall publish notice of the details of the designation of the improvement zone, including the relevant improvement plan, in the public gazette of the relevant local government. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall apply to the public notice, etc. of topographical drawings. <Amended on Jun. 12, 2018; Jun. 9, 2020> |
| (3) | When the Authority to designate improvement zones designates an improvement zone, including the relevant improvement plan, and publicly notifies such designation pursuant to paragraph (2), the Authority shall report details about the designation, according to the method and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, to the Minister of Land, Infrastructure and Transport and shall make relevant documents available to the general public for inspection. |
| Article 17 (Effects of Designation and Public Notice of Improvement Zones) |
| (1) | The designation and public notice of an improvement zone under the former part of Article 16 (2) and the improvement plan formulated for the improvement zone shall be deemed designation and public notice of a district-unit planning zone under Article 50 of the National Land Planning and Utilization Act and a district-unit plan formulated for the district-unit planning zone, regarding any of the matters specified in Article 52 (1) of that Act. <Amended on Jun. 12, 2018> |
| (2) | The determination and public notice of a district-unit plan that includes all matters specified in Article 9 (1), for a district-unit planning zone designated under the National Land Planning and Utilization Act (including the determination and public notice of an amendment) shall be deemed the designation and public notice of the district-unit planning zone as an improvement zone. |
| (3) | Provisions relaxing the building-to-land ratio, floor area ratio, etc. under Article 52 (3) of the National Land Planning and Utilization Act to efficiently utilize land through an improvement plan shall apply mutatis mutandis to improvement plans referred to in Article 9 (1). In such cases, "district-unit planning zone" shall be construed as "improvement zone"; and "district-unit plan" as "improvement plan". |
| (4) | Notwithstanding paragraph (3), where the floor area ratio is relaxed and a project implementer makes a cash payment for a portion of the value of a building site in the relevant improvement zone, the project implementer shall be deemed to have provided a building site for any of the public facilities or infrastructure specified by Presidential Decree (hereafter in this paragraph referred to as "public facilities, etc.") or have established and provided any of such public facilities, etc. |
| (5) | Methods for making and assessing cash payments under paragraph (4) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 18 (Subdivision, Consolidation, and Combination of Improvement Zones) |
| (1) | The Authority to designate improvement zones may designate an improvement zone as follows if deemed necessary for efficiently implementing an improvement project or preserving urban landscape: |
| 1. | Subdividing an improvement zone into at least two improvement zones; |
| 2. | Consolidating adjoining improvement zones into one improvement zone; |
| 3. | Combining at least two non-adjoining areas (limited to areas that meet the criteria prescribed by Presidential Decree under Article 8 (1)) or improvement zones into an improvement zone. |
| (2) | Where the Authority to designate improvement zones intends to subdivide an improvement zone, consolidate improvement zones, or combine separated areas and designate such areas as one improvement zone pursuant to paragraph (1), details about the method and procedures for implementing such subdivision, consolidation or combination shall be prescribed by City/Do ordinance. |
| Article 19 (Restrictions on Activities) |
| (1) | A person who intends to engage in any of the following activities in an improvement zone shall obtain permission from the head of the relevant Si/Gun/Gu. The same shall apply where he or she intends to modify permitted matters: |
| 2. | Installing an artificial structure; |
| 3. | Changing the form or quality of land; |
| 4. | Extracting soil and stone; |
| 7. | Other activities specified by Presidential Decree. |
| (2) | Notwithstanding paragraph (1), any of the following activities may be engaged in without permission: <Amended on Apr. 23, 2019> |
| 1. | Activities for emergency measures necessary for relief or recovery from a disaster; |
| 2. | Where an accident, such as collapse of an existing building, is likely to occur, activities as part of safety measures for the relevant building; |
| 3. | Other activities prescribed by Presidential Decree. |
| (3) | A person who has obtained a permit for an activity requiring a permit under paragraph (1) according to relevant statutes or regulations a person who commenced construction works or project for any activity not requiring a permit at the time the relevant improvement zone was designated and publicly notified may continue the works or project after reporting the activity to the head of the relevant Si/Gun/Gu, as prescribed by Presidential Decree. |
| (4) | The head of the relevant Si/Gun/Gu may order any person who violates paragraph (1) to reinstate the relevant area. If the person so ordered fails to perform such obligation, the head of the relevant Si/Gun/Gu may perform the obligation on behalf of the person pursuant to the Administrative Vicarious Execution Act. |
| (7) | In order to prevent uneconomical construction of structures and an influx of speculative demand, the Minister of Land, Infrastructure and Transport, a City Mayor, Do Governor or the head of a Si/Gun or the head of a Gu (the head of a Gu means the head of an autonomous Gu; hereinafter the same shall apply) may restrict the following activities in a prospective improvement zone for which a master plan has been made available for public inspection; or in an area for which an improvement plan is being formulated, pursuant to Article 6 (1), for a specified period not exceeding three years (the period may be extended only once by up to one year), according to the method and procedure prescribed by Presidential Decree: |
| (8) | No local-based housing association defined in subparagraph 11 (a) of Article 2 of the Housing Act, shall solicit people to join the association as its members in a prospective improvement zone or an improvement zone (hereinafter referred to as "improvement zone, etc."). <Newly Inserted on Jun. 12, 2018> |
| Article 20 (Cancellation of Improvement Zones) |
| (1) | The Authority to designate improvement zones shall cancel an improvement zone, etc. in any of the following cases: <Amended on Jun. 12, 2018> |
| 1. | Where the competent Special Self-Governing City Mayor or Special Self-Governing Province Governor or the head of the relevant Si/Gun does not designate a prospective improvement zone as an improvement zone or the head of a Gu or a Gun in a Metropolitan City does not apply for a prospective improvement zone to be designated as an improvement zone, within three years from the scheduled date for designation of an improvement zone as specified in the master plan; |
| 2. | Where a redevelopment or reconstruction project (limited to projects implemented by an association established pursuant to Article 35 (hereinafter referred to as "association") falls under any of the following: |
| (a) | Where the owners of a plot of land or structure fail to apply for approval to establish a committee for promoting the establishment of an association under Article 31 (hereinafter referred to as "promoters' committee"), within two years from the date the relevant improvement zone is designated and publicly notified; |
| (b) | Where the owners of a plot of land or structure fail to apply for authorization to establish an association under Article 35 (hereinafter referred to as "authorization to establish an association"), with three years from the date of designation and public notice of the relevant improvement zone (limited to where the owners of a plot of land or structure do not organize a promoters' committee pursuant to Article 31 (4)); |
| (c) | Where a promoters' committee fails to apply for authorization to establish an association within two years from the date of approval of the promoters' committee; |
| (d) | Where an association fails to apply for authorization of a project implementation plan under Article 50 (hereinafter referred to as "authorization of a project implementation plan") within three years from the date of authorization to establish the association; |
| 3. | Where the owners of a plot of land or structure fails to apply for authorization of a project implementation plan for a redevelopment project implemented by such owners of a plot of land or structure, by the fifth anniversary of the date of designation and public notice of the relevant improvement zone. |
| (2) | In any of the cases specified in paragraph (1), the head of a Gu or a Gun in a Metropolitan City shall request the competent Special Metropolitan City Mayor or Metropolitan City Mayor to cancel an improvement zone, etc. |
| (3) | In either of the following cases, a Special Self-Governing City Mayor, Special Self-Governing Province Governor, the head of a Si/Gun or the head of a Gu or a Gun in a Metropolitan City shall make his or her plan for canceling an improvement zone available to residents for inspection for at least 30 days to gather their consensus: |
| 1. | To cancel an improvement zone, etc. pursuant to paragraph (1); |
| 2. | To request the cancellation of an improvement zone, etc. pursuant to paragraph (2). |
| (4) | When a Special Self-Governing City Mayor, Special Self-Governing Province Governor, the head of a Si/Gun or the head of a Gu or a Gun in a Metropolitan City makes his or her plan for canceling an improvement zone available for public inspection under paragraph (3), he or she shall seek the opinion of the relevant local council on the plan. In such cases, the local council shall present its opinion to the Special Self-Governing City Mayor, Special Self-Governing Province Governor, the head of the Si/Gun or the head of a Gu or a Gun in a Metropolitan City in a Metropolitan City within 60 days from the date it is notified of the plan for canceling the improvement zone, etc. by the Special Self-Governing City Mayor, Special Self-Governing Province Governor, the head of the Si/Gun or the head of the Gu or Gun in a Metropolitan City; but if it fails to present any opinion within the 60-day period, it shall be deemed to have no objection to the cancellation. |
| (5) | When the Authority to designate improvement zones is requested to cancel an improvement zone or intends to cancel an improvement zone under paragraphs (1) through (4), the Authority shall refer the case to the local urban planning committee for deliberation: Provided, That, in cases of an urban renewal acceleration district designated under Article 5 of the Special Act on the Promotion of Urban Renewal, the Authority shall cancel an improvement zone, etc., after deliberation by the relevant urban renewal committee established under Article 34 of that Act (hereinafter referred to as "urban renewal committee"). <Amended on Apr. 13, 2021> |
| (6) | In either of the following cases, the Authority to designate improvement zones needs not cancel an improvement zone, etc. by extending the relevant deadline specified in paragraph (1) 1 through 3 by up to two years, notwithstanding paragraph (1): |
| 1. | Where the owners of a plot of land or structure in an improvement zone (referring to members of the relevant association, if it exists) request an extension, with the consent of at least 30/100 of the owners, before the relevant deadline specified in paragraph (1) 1 through 3 expires; |
| 2. | Where the Authority deems it necessary to maintain an improvement zone for the organized improvement, etc. of residential environments, in light of the progress of the relevant improvement project. |
| (7) | When the Authority to designate improvement zones cancels an improvement zone under paragraph (5) (or elects not to cancel an improvement zone under paragraph (6)), the Authority shall publish notice of such cancellation in the public gazette of the relevant local government; notify the Minister of Land, Infrastructure and Transport thereof; and make relevant documents available to the general public for inspection. |
| Article 21 (Ex Officio Cancellation of Improvement Zones) |
| (1) | The Authority to designate improvement zones may cancel designation of an improvement zone, etc., after deliberation by the local urban planning committee, in any of the following cases. Detailed criteria for eligibility under subparagraphs 1 and 2 and other necessary matters shall be prescribed by City/Do ordinance: <Amended on Apr. 23, 2019; Jun. 9, 2020> |
| 1. | Where implementing an improvement project will impose excessive burdens on the owners of a plot of land or structure; |
| 2. | Where the objectives of designating an improvement zone are deemed unattainable in light of the progress in promoting the improvement zone, etc.; |
| 3. | Where at least 30/100 of the owners of a plot of land or structure requests the cancellation of an improvement zone (limited to where a promoters' committee for such zone has not been organized); |
| 4. | Where the objectives of designating an improvement zone are deemed unattainable in light of the progress made in implementation, and at least a majority of the owners of a plot of land or structure consent to cancel the improvement zone, although at least 10 years have passed since the date such improvement zone was designated and publicly notified for a residential environment improvement project that has been implemented, as prescribed in Article 23 (1) 1; |
| 5. | Where at least 1/2 but not more than 2/3 of the owners of a plot of land or structure who have consented to the formation of a promoters' committee or the establishment of an association request the cancellation of designation of an improvement zone with the consent of at least the percentage prescribed by City/Do ordinance (limited to where no application is filed for authorization of a project implementation plan); |
| 6. | Where the owners of a plot of land or structure requests the cancellation of designation of an improvement zone where a promoters' committee is formed or an association is established with the consent of a majority of the owners of a plot of land or structure (limited to where no application is filed for authorization of a project implementation plan). |
| (2) | Article 20 (3) through (5) and (7) shall apply mutatis mutandis to procedures for canceling an improvement zone, etc. under paragraph (1). |
| (3) | If approval for organizing a promoters' committee or authorization to establish an association is revoked following cancellation of an improvement zone, etc. under paragraph (1), the Authority to designate improvement zones may partially subsidize expenses incurred by the promoters' committee or association, as prescribed by City/Do ordinance, within the limits prescribed by Presidential Decree. |
| Article 21-2 (Requests for Designation of Urban Regeneration Leading Areas) |
Where the designation of an improvement zone, etc. is canceled under Article 20 or 21, the Authority to designate improvement zones may request the Minister of Land, Infrastructure and Transport to designate the improvement zone, etc. whose designation is canceled as an urban regeneration leading area under the Special Act on Promotion of and Support for Urban Regeneration. [This Article Newly Inserted on Apr. 23, 2019]
| Article 22 (Effect of Cancellation of Improvement Zones) |
| (1) | If an improvement zone is canceled under Article 20 or 21, the status of a special-use area, fundamental infrastructure, etc., changed by the relevant improvement plan, shall be deemed to revert to the status they had before the improvement zone was designated: Provided, That, in cases of Article 21 (1) 4, the Authority to designate improvement zones may restrict the extent of reversion according to the progress of implementation of the relevant improvement project, such as the progress of construction of fundamental infrastructure. |
| (2) | Where an improvement zone is canceled under Article 20 or 21 (limited to where it is planned to implement a redevelopment or reconstruction project; hereafter in this paragraph the same shall apply), the Authority to designate improvement zones may designate the canceled improvement zone, etc. as a residential environment improvement zone in which a project shall be implemented as prescribed in Article 23 (1) 1 (referring to an improvement zone for implementing a residential environment improvement project; hereinafter the same shall apply). The designation of the area as a residential environment improvement zone shall be deemed reflected in the master plan formulated under Article 7. |
| (3) | If the cancellation of an improvement zone, etc. is publicly notified pursuant to Articles 20 (7) and 21 (2), approval for organizing the relevant promoters' committee or authorization to establish the relevant association shall be deemed revoked; and the head of the relevant Si/Gun/Gu shall publicly notify the details of such revocation in the public gazette of the relevant local government. |
CHAPTER III IMPLEMENTATION OF IMPROVEMENT PROJECTS
SECTION 1 Methods for Implementing Improvement Projects
| Article 23 (Methods for Implementing Improvement Projects) |
| (1) | A residential environment improvement project shall be implemented by any of the following methods or by combining the following methods: |
| 1. | The project implementer provided in Article 24 constructs new fundamental infrastructure and common facilities or expands existing fundamental infrastructure and common facilities in the improvement zone; and the owners of a plot of land or a building directly repair, improve or ameliorate houses; |
| 2. | The project implementer provided in Article 24 builds houses by fully or partially expropriating the improvement zone under Article 63, and then supplies the houses preferentially to the owners of a plot of land or a building in the improvement zone or building sites to the owners of a plot of land or a building in the improvement zone or any person other than owners of a plot of land or a building in the improvement zone; |
| 3. | The project implementer provided in Article 24 supplies plots of land after replotting the improvement zone under Article 69 (2); |
| 4. | The project implementer provided in Article 24 builds and supplies houses, appurtenant facilities and welfare facilities in the improvement zone, according to the management and disposal plan authorized under Article 74. |
| (2) | A redevelopment project shall be implemented by building and supplying structures in the improvement zone, according to the management and disposal plan authorized under Article 74; or by supplying plots of land after replotting the improvement zone under Article 69 (2). |
| (3) | A reconstruction project shall be implemented by building and supplying houses, appurtenant facilities, welfare facilities and studio-type residential buildings (referring to combined business/residence buildings under Article 2 (2) of the Building Act; hereinafter the same shall apply) in the improvement zone, according to the management and disposal plan authorized under Article 74: Provided, That structures not located within a housing complex shall be included in the improvement project for an improvement zone, only where said inclusion is deemed unavoidable in order to implement the project, in light of geographical conditions and surrounding environments. |
| (4) | A combined business/residential building referred to in paragraph (3) may be built only in a quasi-residential area or commercial area designated under the National Land Planning and Utilization Act. The total floor area of a combined business/residential building in such cases shall not exceed 30/100 of the total floor area of all structures. |
| Article 24 (Implementers of Residential Environment Improvement Projects) |
| (1) | A residential environment improvement project to be implemented as prescribed in Article 23 (1) 1 shall be implemented by the head of the relevant Si/Gun/Gu; but the Korea Land and Housing Corporation or a local government-invested public corporation shall obtain consent from a majority of the owners of a plot of land or structure as at the date of public announcement of public inspection under Article 15 (1), if the head of the relevant Si/Gun/Gu intends to designate it as a project implementer to implement such project. |
| (2) | The head of the relevant Si/Gun/Gu may directly implement a residential environmental improvement project to be implemented as prescribed in Article 23 (1) 2 through 4; or may authorize any of the following persons to implement such project: |
| 1. | Where the head of the relevant Si/Gun/Gu designates any of the following persons as a project implementer: |
| (a) | The Korea Land and Housing Corporation or a local government-invested public corporation; |
| (b) | A corporation established with funds invested by the State, a local government, the Korea Land and Housing Corporation, a local government-invested public corporation or a public institution referred to in Article 4 of the Act on the Management of Public Institutions in excess of 50/100 of its total equity; |
| 2. | Where the head of the relevant Si/Gun/Gu designates a person specified in subparagraph 1 and either of the following persons as co-implementers: |
| (3) | In order to implement a residential environment improvement project pursuant to paragraph (2), consent shall be obtained from at least 2/3 of the owners of a plot of land or structure in the relevant prospective improvement zone or the holders of a surface right as of the date of public announcement of public inspection under Article 15 (1); and from a majority of households of tenants (referring to persons who have resided in the relevant prospective improvement zone for at least three month before the date of public announcement of public inspection under Article 15 (1)): Provided, That consent of tenants is not required if the number of households of tenants does not exceed 1/2 of the number of the owners of a plot of land or structure or if any of the reasons specified by Presidential Decree exists. |
| (4) | If the head of the relevant Si/Gun/Gu deems it necessary to urgently implement an improvement project, because of the possible collapse of a structure due to a natural disaster or any other force majeure event, he or she may directly implement the project or may designate the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer to implement the project, without the consent of the owners of a plot of land or structure or tenants, notwithstanding paragraphs (1) and (3). In such cases, the head of the relevant Si/Gun/Gu shall without delay notify the owners of a plot of land or structure as to why, how and when he or she will implement the improvement project urgently and other necessary information. |
| Article 25 (Implementers of Redevelopment or Reconstruction Projects) |
| (1) | A redevelopment project may be implemented by any of the following methods: |
| 1. | An association directly implements a project or jointly implements a project with the head of the relevant Si/Gun/Gu; the Korea Land and Housing Corporation; a local government-invested public corporation; a constructor; a registered business entity; or any of the persons who meet the requirements prescribed by Presidential Decree, with the consent of a majority of its members; |
| 2. | If the number of the owners of a plot of land or structure is less than 20, the owners of a plot of land or structure directly implement a project or jointly implement a project with the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation, a constructor, a registered business entity or any of the persons who meet the requirements prescribed by Presidential Decree, with the consent of a majority of the owners of a plot of land or structure. |
| (2) | A reconstruction project may be implemented by an association directly or jointly with the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation, a constructor, a registered business entity or any of the persons that meet the requirements prescribed by Presidential Decree, with the consent of a majority of members of the association. |
| Article 26 (Co-Implementers of Redevelopment or Reconstruction Projects) |
| (1) | Notwithstanding Article 25, the head of the relevant Si/Gun/Gu may directly implement an improvement project or may designate the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer (including where the Korea Land and Housing Corporation or a local government-invested public corporation jointly implements such project with a constructor or registered business entity) to implement the improvement project, in any of the following cases: <Amended on Jun. 12, 2018> |
| 2. | Where no application for authorization of a project implementation plan has been filed within two years from the scheduled date for commencement of the improvement project, specified in the improvement plan publicly notified under the former part of Article 16 (2); or where an application for authorization of a project implementation plan contains any unlawful or unjust matter (excluding reconstruction projects); |
| 3. | Where a promoters' committee fails to apply for authorization of the establishment of an association within three years from the date of approval for organization by the head of the relevant Si/Gun/Gu; or where an association fails to apply for authorization of a project implementation plan within three years from the date of authorization to establish the association; |
| 5. | Where it is deemed necessary to implement an improvement project by the circulative method prescribed in Article 59 (1); |
| 6. | Where authorization of a project implementation plan is revoked under Article 113; |
| 7. | Where the area of State or public land in an improvement zone or the area of State or public land and the land owned by Korea Land and Housing Corporation or a local government-invested public corporation in the improvement zone is at least 1/2 of the total area of land in the improvement zone; and a majority of the owners of a plot of land or structure consent to designate the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer; |
| 8. | The landowners who own at least 1/2 of the area of land in an improvement zone and at least 2/3 of the owners of a plot of land or structure in the improvement zone request the designation of the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer. If the owners of a plot of land or structure proposed the formulation of an improvement plan pursuant to Article 14 (1) 2, the owners of a plot of land or structure who consented to the proposal to formulate the plan shall be deemed to have consented to designate the Korea Land and Housing Corporation or a local government-invested public corporation as a project implementer. The foregoing shall not apply to the head of the relevant Si/Gun/Gu and the owners of a plot of land or structure who oppose designating a project implementer in a resident representatives' meeting held under Article 47. |
| (2) | When the head of the relevant Si/Gun/Gu directly implements an improvement project or designates the Korea Land and Housing Corporation or a local government-invested public corporation as the improvement project implementer pursuant to paragraph (1), he or she shall publish notice of the matters specified by Presidential Decree, including the zone for implementing the improvement project, that the owners of a plot of land or structure need to be informed of, in the public gazette of the relevant local government: Provided, That in cases falling under paragraph (1) 1, the owners of a plot of land or structure shall be without delay notified of why, when and how the improvement project is implemented and other necessary information. |
| (3) | When the head of the relevant Si/Gun/Gu directly implements an improvement project or designates and publicly notifies the Korea Land and Housing Corporation or a local government-invested public corporation as the improvement project implementer pursuant to paragraph (2), approval for organizing a promoters' committee or authorization to establish an association shall be deemed revoked on the day immediately following the date of public notice. In such cases, the head of the relevant Si/Gun/Gu shall publicly notify relevant facts in the public gazette of the relevant local government. |
| Article 27 (Qualified Developers of Redevelopment or Reconstruction Projects) |
| (1) | In any of the following cases, the head of the relevant Si/Gun/Gu may designate a person who meets the requirements prescribed by Presidential Decree (hereinafter referred to as "qualified developer"), among the owners of a plot of land or structure, public-private partnership corporations defined in subparagraph 12 of Article 2 of the Act on Public-Private Partnerships in Infrastructure, and trust business entities, as the implementer of a redevelopment or reconstruction project to implement the improvement project: <Amended on Jun. 12, 2018> |
| 2. | Where no application for authorization of a project implementation plan has been filed within two years from the scheduled date for commencement of the improvement project, specified in the improvement plan publicly notified under the former part of Article 16 (2); or where an application for authorization of a project implementation plan contains any unlawful or unjust matter (excluding reconstruction projects); |
| 3. | Where persons who meet at least the consent requirements for establishing an association for a redevelopment or reconstruction project under Article 35 consent to designate a trust business entity as the project implementer. |
| (2) | When the head of the relevant Si/Gun/Gu designates a qualified developer as a project implementer under paragraph (1), he or she shall publish notice of the matters specified by Presidential Decree, including the zone for implementing the improvement project, that the owners of a plot of land or structure need to be informed of, in the public gazette of the relevant local government: Provided, That in cases falling under paragraph (1) 1, the owners of a plot of land or structure shall be without delay notified as to why, when and how the improvement project will be implemented and other necessary information. |
| (3) | A trust business entity shall provide information about the following matters to the owners of a plot of land or structure before obtaining consent necessary for designating a project implementer under paragraph (1) 3: |
| 1. | The estimated charge apportioned to the owners of each plot of land or each structure and the ground for calculating the amount; |
| 2. | Other matters prescribed by City/Do ordinance relating to the calculation, etc. of the estimated charge. |
| (4) | The consent of the owners of each plot of land or each structure under paragraph (1) 3 shall be obtained in the Consent Form prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. The Consent Form in such cases shall contain all the following: |
| 1. | Schematic design of the structure to be built; |
| 2. | The cost and expenses of the relevant improvement project (hereinafter referred to as "improvement project cost"), including the cost to be incurred for removing existing structures and building new structures; |
| 3. | Standards for apportioning the improvement project cost (including the apportionment of trust fees, etc. to be paid to the trust business entity); |
| 4. | Vesting of the ownership of property after completion of the project; |
| 5. | Enforcement regulations necessary for the method for implementing the improvement project, etc.; |
| 6. | Provisions of the relevant trust agreement. |
| (5) | When the head of the relevant Si/Gun/Gu designates and publicly notifies a qualified developer as a project implementer under paragraph (2), approval for organizing a promoters' committee or authorization to establish an association shall be deemed revoked on the day immediately following the date of public notice. In such cases, the head of the relevant Si/Gun/Gu shall publish notice of relevant facts in the public gazette of the relevant local government. |
| Article 28 (Project Agents for Redevelopment or Reconstruction Projects) |
| (1) | In either of the following cases, the head of the relevant Si/Gun/Gu may directly implement an improvement project on behalf of the relevant association of the relevant owners of a plot of land or structure, or may authorize the Korea Land and Housing Corporation; a local government-invested public corporation; or a qualified developer to implement the improvement project on behalf of the relevant association or the relevant owners of a plot of land or structure: |
| 1. | If the improvement project has been delayed substantially or if it is deemed impracticable for such association or owners of a plot of land or structure to continue the improvement project, due to disputes on rights and interests, etc.; |
| 2. | If a request is made with the consent of a majority of the owners of a plot of land or structure (referring to members of the relevant association, if such association exists). |
| (2) | The head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation, or a qualified developer who implements an improvement project on behalf of a project implementer pursuant to paragraph (1) (hereinafter referred to as "project agent") may seize the building sites or structures, the ownership of which will be vested in the project implementer, to secure claims for fees or costs payable by the project implementer. |
| (3) | Determining to commence the implementation of an improvement project as a project agent under paragraph (1), the public notice and effect of such decision, the execution of business affairs by a project agent, the completion of performance as a project agent, the public notice of the completion and other necessary matters shall be prescribed by Presidential Decree. |
| Article 29 (Contracting Methods and Selection of Contractors) |
| (1) | Except as otherwise expressly provided for in this Act or any other statute or regulation, the chairperson of a promoters' committee or a project implementer (including a liquidator) shall award contracts (including contracts for construction works, services, purchase of goods, manufacturing, etc.; hereinafter the same shall apply) through competitive bidding: Provided, That a contract may be awarded through bidding among designated bidders or a no-bid contract may be awarded in cases specified by Presidential Decree according to the scale of a contract, the occurrence of a disaster or other relevant factors. <Newly Inserted on Aug. 9, 2017> |
| (2) | If a contract exceeding the scale specified by Presidential Decree is to be awarded by competitive bidding under the main clause of paragraph (1), such contract shall be concluded through the Korea On-Line Electronic Procurement System, defined in subparagraph 4 of Article 2 of the Electronic Procurement Utilization and Promotion Act (hereinafter referred to as the "Electronic Procurement System"). <Newly Inserted on Aug. 9, 2017> |
| (3) | Methods and procedures for awarding contracts under paragraphs (1) and (2) and other necessary matters shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Newly Inserted on Aug. 9, 2017> |
| (4) | An association shall select a constructor or registered business entity as a contractor through competitive bidding or under a negotiated no-bid contract (limited to where no bidder succeeds in any of at least two competitive bidding processes) under paragraph (1) at its general meeting after it obtains authorization for its establishment: Provided, That the contractor for an improvement project not exceeding the scale specified by Presidential Decree may be selected at the general meeting of the association, as stipulated by its articles of association. <Amended on Aug. 9, 2017> |
| (5) | Where the owners of a plot of land or structure implement a redevelopment project as prescribed in Article 25 (1) 2, they shall select a constructor or registered business entity as the contractor for the project according to bylaws referred to in subparagraph 11 (b) of Article 2, after the relevant project implementation plan is authorized, notwithstanding paragraph (1). <Amended on Aug. 9, 2017> |
| (6) | Where the head of the relevant Si/Gun/Gu directly implements an improvement project or designates the Korea Land and Housing Corporation, a local government-invested public corporation or a qualified developer as the implementer of an improvement project pursuant to Article 26 (1) or 27 (1), the project implementer shall select a constructor or registered business entity as the contractor through competitive bidding or under a negotiated no-bid contract under paragraph (1), after the project implementer is designated and publicly notified under Article 26 (2) or 27 (2). <Amended on Aug. 9, 2017> |
| (7) | Where a contractor is selected pursuant to paragraph (6) or the project implementer of a residential environment improvement project implemented as prescribed in Article 23 (1) 4 selects a contractor, a contractor may be recommended at the resident representatives' meeting held under Article 47 or the plenary meeting of the owners of a plot of land or structure held under Article 48 by competitive bidding prescribed by Presidential Decree or a negotiated no-bid contract (limited to where no bidder succeeds in any of at least two competitive bidding processes). <Amended on Aug. 9, 2017> |
| (9) | When a project implementer (including a project agent) enters into a contract on construction works with the contractor selected under paragraphs (4) through (8), the project implementer shall ensure that the contract provides for removal of existing structures (including inspection, dismantlement and removal of asbestos under the Asbestos Safety Management Act). <Amended on Aug. 9, 2017> |
[Title Amended on Aug. 9, 2017]
| Article 29-2 (Requests for Verification of Construction Costs) |
| (1) | A project implementer of a redevelopment or reconstruction project (excluding where the head of a Si/Gun/Gu or the Korea Land and Housing Corporation or a local government-invested public corporation implements an improvement project solely or jointly) shall request the support organization for improvement projects under Article 114 to verify construction costs in any of the following cases after entering into a contract with the relevant constructor: |
| 1. | Where at least 1/5 of the owners of a plot of land or structure or of members of an association request a project implementer to conduct verification; |
| 2. | Where the rate of increase in construction costs (excluding the producer price inflation rate as the rate of cumulative amount of increase compared to the initial contract amount) falls under any of the following: |
| (a) | Where a constructor is selected before authorization of a project implementation plan: At least 10/100; |
| (b) | Where a constructor is selected after authorization of a project implementation plan: At least 5/100; |
| 3. | Where the rate of increase in construction costs (excluding the producer price inflation rate as the rate of cumulative amount of increase compared to the contract amount as at the time of verification) after the verification of construction costs under subparagraph 1 or 2 is at least 3/100. |
| (2) | The methods and procedures for verifying construction costs under paragraph (1), fees for verification, and other necessary matters shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport. |
[This Article Newly Inserted on Apr. 23, 2019]
| Article 30 (Selection of Rental Business Entities) |
| (1) | In order to facilitate the supply of publicly-funded private rental housing units, a project implementer may select a rental business entity defined in subparagraph 7 of Article 2 of the Special Act on Private Rental Housing (hereinafter referred to as “rental business entity”) by means of a competitive bidding determined by the Minister of Land, Infrastructure and Transport or by awarding a negotiated contract (limited to where no bidder succeeds in any of at least two competitive bidding processes and where publicly-funded private rental housing units constructed or supplied through a public redevelopment project are sold to a State-invested or State-established corporation or other persons prescribed by Presidential Decree). <Amended on Jan. 16, 2018; Apr. 13, 2021> |
| (2) | Procedures for selecting rental business entities under paragraph (1) and other necessary matters may be determined and publicly notified by the Minister of Land, Infrastructure and Transport. <Amended on Jan. 16, 2018> |
[Title Amended on Jan. 16, 2018]
SECTION 2 Committees for Promoting Establishment of Associations and Establishment of Associations
| Article 31 (Organization and Approval of Committees for Promoting Establishment of Associations) |
| (1) | In order to establish an association, a committee for promoting the establishment of an association shall be organized with the consent of a majority of the owners of a plot of land or structure to the following matters, after the relevant improvement zone is designated and publicly notified under Article 16; and shall then be approved by the head of the relevant Si/Gun/Gu according to the method and procedure prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: |
| 1. | At least five members of the promoters' committee (hereinafter referred to as "promoters"), including the chairperson of the promoters' committee (hereinafter referred to as "chairperson of the promoters' committee"); |
| 2. | Operating rules determined under Article 34 (1). |
| (2) | The owners of a plot of land or structure who consented to organize a promoters' committee under paragraph (1) (hereafter in this Article referred to as "consenters to the promoters' committee") shall be deemed to consent to establish an association under Article 35 (1) through (5): Provided, That this shall not apply to consenters to the promoters' committee who expressed dissent on establishing an association to the head of the relevant Si/Gun/Gu or to the promoters' committee before an application for authorizing the establishment of an association is filed. |
| (3) | A person who intends to obtain consent of the owners of a plot of land or structure under paragraph (1) shall do so as prescribed by Presidential Decree. The provisions of paragraph (2) shall be explained and notified to such owners before obtaining consent in such cases. |
| (4) | No promoters' committee need be organized, if it is planned to render public assistance under Article 118 to an improvement project. Methods and procedures for establishing associations and other necessary matters in such cases shall be prescribed by Presidential Decree. |
| Article 32 (Business Activities of Promoters' Committees) |
| (1) | A promoters' committee may engage in the following business activities: |
| 1. | Selecting or replacing a management entity specialized in improvement projects under Article 102 (hereinafter referred to as "management entity specialized in improvement projects"); |
| 2. | Selecting or replacing a designer; |
| 3. | Formulating a rough implementation plan for an improvement project; |
| 4. | Engaging in preparatory activities for obtaining authorization to establish an association; |
| 5. | Other business activities specified by Presidential Decree for promoting the establishment of an association. |
| (2) | A management entity specialized in improvement projects shall be selected either through competitive bidding or by awarding a negotiated no-bid contract (limited to where no bidder succeeds in any of at least two competitive bidding processes), pursuant to Article 29 (1), after obtaining approval from the promoters' committee under Article 31. <Amended on Aug. 9, 2017> |
| (3) | A promoters' committee shall hold an inaugural general meeting for establishing an association according to the method and procedure prescribed by Presidential Decree, before applying for authorization to establish the association pursuant to Article 35 (2), (3) and (5). |
| (4) | When a promoters' committee intends to engage in any of the business activities specified by Presidential Decree that cause the owners of a plot of land or structure to bear a financial burden or change any right or obligation thereof, among the business activities of the promoters' committee under paragraph (1), the promoters' committee shall obtain consent of the owners of a plot of land or structure at not less than the ratio specified by Presidential Decree, before engaging in such business activities. |
| Article 33 (Composition of Promoters' Committees) |
| (1) | A promoters' committee shall have one chairperson representing the promoters' committee and auditors. |
| (2) | Article 41 (3) shall apply mutatis mutandis to the management of elections of promoters. In such cases, the term "association" shall be construed as "promoters' committee"; and the term "association executive officers" as "promoters". |
| (3) | The owners of a plot of land or structure may request the promoters' committee to replace or remove any promoter under the operating rules for promoters' committees prescribed in Article 34; and the proviso of Article 41 (5) shall apply mutatis mutandis where a person shall act on behalf of the chairperson of a promoters' committee, if a promoters' committee fails to appoint the chairperson of a promoters' committee within six months after he or she resigns or was removed from office; upon the expiration of his or her term of office; or the chairperson became unable to perform his or her duties due to any other unavoidable circumstance. In such cases, the term "executive officer of the association" shall be construed as "chairperson of the promoters' committee". |
| (4) | Procedures for replacing or removing promoters under paragraph (3) and other necessary matters shall be stipulated by the operating rules determined under Article 34 (1). |
| (5) | Article 43 (1) through (3) shall apply mutatis mutandis to the grounds for disqualifying promoters. In such cases, the term "association" shall be construed as "promoters' committee"; and the term "association executive officers" as "promoters". |
| Article 34 (Operation of Promoters’ Committees) |
| (1) | In order to ensure promoters' committees are operated fairly, the Minister of Land, Infrastructure and Transport shall determine and publicly notify operating rules for promoters' committees, including the following: |
| 1. | Methods for appointing and replacing promoters; |
| 2. | Rights and obligations of promoters; |
| 3. | The scope of business activities of promoters' committees; |
| 4. | Methods for operating promoters' committees; |
| 5. | Payment of operating expenses by the owners of a plot of land or structure; |
| 6. | Borrowing funds for operating promoters' committees; |
| 7. | Other business activities specified by Presidential Decree as necessary for operating promoters' committees. |
| (2) | Each promoters' committee shall be managed according to the operating rules; and the owner of a plot of land or structure shall pay expenses incurred in operating the committee under the operating rules. |
| (3) | A promoters' committee shall report business activities it has engaged in to a general meeting held under Article 44 (hereinafter referred to as "general meeting"); and the relevant association shall comprehensively succeed to rights and obligations arising in connection with such activities. |
| (4) | A promoters' committee shall transfer books of accounts and relevant documents regarding expenses incurred by the committee to the relevant association within 30 days from the date it is authorized to establish the association. |
| (5) | Matters necessary for operating promoters' committees shall be prescribed by Presidential Decree. |
| Article 35 (Authorization to Establish Associations) |
| (1) | If any person, other than the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation or a qualified developer, intends to implement an improvement project, the person shall establish an association comprised of the owners of a plot of land or structure: Provided, That this shall not apply where the owners of a plot of land or structure intend to implement a redevelopment project prescribed in Article 25 (1) 2. |
| (2) | When the promoters' committee for a redevelopment project (referring to the owners of a plot of land or structure, if no promoters' committee is organized pursuant to Article 31 (4)) intends to establish an association, the promoters' committee shall file an application for authorization to establish the association with the head of the relevant Si/Gun/Gu, with the consent of at least 3/4 of the owners of a plot of land or structure and the landowners owning at least 1/2 of the area of the land for the project, along with the following: |
| 1. | Articles of association; |
| 2. | Documents specified by Ordinance of the Ministry of Land, Infrastructure and Transport, including data related to the improvement project costs; |
| 3. | Other documents specified by City/Do ordinance. |
| (3) | When the promoters' committee for a reconstruction project (referring to the owners of a plot of land or structure, if no promoters' committee is organized pursuant to Article 31 (4)) intends to establish an association, it shall file an application for authorization with the head of the relevant Si/Gun/Gu, with the consent of a majority of persons holding a strata title in each unit of multi-family housing (in the case of a welfare facility, all welfare facilities in a housing complex shall be deemed one unit (excluding where the number of persons holding a strata title in each unit of multi-family housing does not exceed five) in a housing complex, consent of at least 3/4 of all persons holding a strata title in each unit of the housing complex and consent of landowners owning at least 3/4 of the area of the land for the improvement project, along with the data specified in paragraph (2). |
| (4) | If any area not located in the relevant housing complex is included in the improvement zone, an application for authorization shall be filed with the consent of at least 3/4 of the owners of a plot of land or structure in the area not located in the housing complex and consent of landowners owning at least 2/3 of the area of the land for the improvement project, notwithstanding paragraph (3). <Amended on Apr. 23, 2019> |
| (5) | When an association established pursuant to paragraph (2) or (3) intends to amend the authorization, the association shall pass a resolution thereon at a general meeting by the concurring votes of at least 2/3 of its members and obtain authorization for the amendment from the head of the relevant Si/Gun/Gu, submitting the data specified in paragraph (2): Provided, That any of the minor matters specified by Presidential Decree may be amended by reporting to the head of the relevant Si/Gun/Gu without a resolution thereon at a general meeting. |
| (6) | The head of a relevant Si/Gun/Gu shall notify a person who has filed a report of whether or not to accept it, within 20 days from the date of receiving said report under the proviso of paragraph (5). <Newly Inserted on Mar. 16, 2021> |
| (7) | Where the head of a relevant Si/Gun/Gu fails to notify a person who has filed a report of whether or not to accept it or the extension of handling period pursuant to the statutes or regulations related to civil petition handling within the period prescribed in paragraph (6), the report shall be deemed accepted on the day following the end of such period (referring to the relevant extended handling period in cases of the extension or re-extension of the handling period under the statutes or regulations related to civil petition handling). <Newly Inserted on Mar. 16, 2021> |
| (8) | Where an association implements an improvement project, the association shall be deemed the project operator under subparagraph 10 of Article 2 of the Housing Act, for the purposes of applying Article 54 of that Act; and the association shall be deemed to have completed registration of a housing construction project under Article 4 of that Act on the date of authorization to establish the association. <Amended on Mar. 16, 2021> |
| (9) | Matters that require the consent of owners of a plot of land or structure under paragraphs (2) through (5), procedures for obtaining consent, procedures for applying for establishing an association and authorization for establishment, matters necessary for changing matters authorized shall be prescribed by Presidential Decree. <Amended on Mar. 16, 2021> |
| (10) | A promoters' committee shall provide the owners of a plot of land or structure with information prescribed by Presidential Decree, including estimated charges, before obtaining consent necessary for establishing an association. <Amended on Mar. 16, 2021> |
| Article 36 (How Owners of Plots of Land or Structures Consent) |
| (1) | The owner of a plot of land or structure shall consent to any of the following matters (including withdrawing consent or expressing dissent under the proviso of Article 26 (1) 8, the proviso of Article 31 (2) and the proviso of Article 47 (4)) by writing his or her name on, fingerprinting the Consent Form and submitting the Consent Form, along with a copy of his or her identification certificate, such as a resident registration certification or passport: <Amended on Mar. 16, 2021> |
| 1. | Where a request is filed for extending the cancellation of an improvement zone, etc. pursuant to Article 20 (6) 1; |
| 2. | Where an owner consents to canceling an improvement zone pursuant to Article 21 (1) 4; |
| 3. | Where it is intended to designate the Korea Land and Housing Corporation or a local government-invested public corporation as the implementer of a residential environment improvement project pursuant to Article 24 (1); |
| 4. | Where the owners of a plot of land or structure intend to implement a redevelopment project pursuant to Article 25 (1) 2; |
| 5. | Where it is intended to designate the public implementer or qualified developer of a redevelopment or reconstruction project pursuant to Article 26 or 27; |
| 6. | Where it is intended to organize a promoters' committee for establishing an association pursuant to Article 31 (1); |
| 7. | Where any business activity of the promoters' committee under Article 32 (4) is likely to incur financial burden on the owners of a plot of land or structure or change any of their rights or obligations; |
| 8. | Where it is intended to establish an association pursuant to Article 35 (2) through (5); |
| 9. | Where it is intended to hold a resident representatives' meeting pursuant to Article 47 (3); |
| 10. | Where it is intended to apply for authorization of a project implementation plan pursuant to Article 50 (6); |
| 11. | Where a project implementer intends to formulate a project implementation plan pursuant to Article 58 (3). |
| (2) | If the owner of a plot of land or structure stays abroad for a long time or is a corporation; or if the head of the relevant Si/Gun/Gu deems that any other special circumstance exists, a Consent Form may be submitted with his or her registered seal affixed thereto, along with a certificate of his or her seal impression, notwithstanding paragraph (1). |
| (3) | Where a Consent Form is prepared pursuant to paragraph (1) or (2) in any case specified in Articles 31 (1) and 35 (2) through (4), a Consent Form stamped by the head of the relevant Si/Gun/Gu, as prescribed by Presidential Decree, shall be used and an unstamped Consent Form shall be invalid. |
| (4) | Methods and procedures for calculating the number of consenting owners of a plot of land or structure under paragraphs (1) and (2) and Article 12 and other necessary matters shall be prescribed by Presidential Decree. |
| Article 37 (Special Provisions concerning Reuse of Consent Forms of Owners of Plots of Land or Structures) |
| (1) | If a dispute arises due to a forged Consent Form; withdrawal of consent; shortfall of the consenters' ratio; the method for calculating the number of consenters; or any other cause or event after obtaining authorization to establish an association (including amended authorization; hereafter in this Article the same shall apply), uncontested Consent Forms of the owners of a plot of land or structure may be reused in either of the following cases: |
| 1. | Where an application for amended authorization to establish an association is filed by adding or amending some Consent Forms, while a lawsuit to nullify or cancel authorization to establish the association is pending; |
| 2. | Where an application for authorization to establish an association is re-filed after a court ruling nullifying or canceling authorization to establish the association becomes final and conclusive. |
| (2) | In order to reuse Consent Forms of the owners of a plot of land or structure under paragraph (1), an association (referring to a promoters' committee in cases falling under paragraph (1) 2) shall satisfy all the following requirements: |
| 1. | The association shall explain and notify the owners of a plot of land or structure that the existing Consent Forms may be reused and the procedures and methods for expressing dissent; |
| 2. | The following requirements in cases falling under paragraph (1) 2: |
| (a) | The purpose and method of implementing the improvement project by the association to be newly established are the same as those of the improvement project implemented by the association, authorization to establish which, was finally nullified or canceled; |
| (b) | The inaugural general meeting for establishing a new association shall be held within the period specified by Presidential Decree, which shall not exceed three years from the date the nullification or cancellation of authorization to establish the association became final and conclusive. |
| (3) | The requirements for reusing Consent Forms of the owners of a plot of land or structure under paragraph (1) (including details of the relevant improvement project and the scope of amendment of the relevant improvement plan), methods for procedures for reuse and other necessary matters shall be prescribed by Presidential Decree. |
| Article 38 (Legal Personality of Associations) |
| (1) | An association shall be a corporate entity. |
| (2) | An association shall be duly formed when the association completes registration of the matters specified by Presidential Decree at the registry having jurisdiction over its principal place of business, within 30 days from the date its establishment is authorized. |
| (3) | An association shall use the words "improvement project association" in its name. |
| Article 39 (Eligibility Requirements for Association Members) |
| (1) | Members of an association for an improvement project provided for in Article 25 (referring to trustors, if the project implementer is a trust business entity; hereafter in this Article the same shall apply) shall be the owners of a plot of land or structure (limited to persons consenting to a reconstruction project, if the relevant improvement project is a reconstruction project); but one person representing several persons shall be deemed one member in any of the following cases: Provided, That a transferee (referring to one representative of co-owners, if the relevant property is co-owned) of a plot of land or structure owned by a public institution relocating according to the policy and other relevant measures for relocating public institutions to provincial areas and promoting the development of innovation cities under Article 18 of the Special Act on Balanced National Development shall be deemed an association member: <Amended on Aug. 9, 2017; Mar. 20, 2018> |
| 1. | Where the ownership of a plot of land or structure and the surface right in the plot of land are co-owned or jointly held by several persons; |
| 2. | Where several co-owners of a plot of land or structure belong to one household. In such cases, the spouse and unmarried lineal descendants under 19 years of age, not registered on the resident registration card for the same household, shall be deemed members of one household; and several co-owners of a plot of land or structure shall be deemed members of one household, if they belonged to one household but their household has been divided into at least two households after the authorization was granted to establish the association, except for divorce or the establishment of a family branch by a child aged 19 years or more (limited to where the households are registered as separate households and the actual abode of one household is different from the actual abode of the other household); |
| 3. | Where the ownership of a plot of land or structure or the surface right in the plot of land, owned or held by one person, has been transferred to several persons after the authorization was granted to establish the association (referring to the time the project implementer was designated, if a trust business entity was designated as the project implementer pursuant to Article 27 (1) 3 before authorizing the establishment of the association; hereafter in this Article the same shall apply). |
| (2) | Any person who acquires (including purchasing, accepting conveyance as a gift, and all other actions that cause a change in a right or interest, but excluding the transfer and acquisition by inheritance or as a consequence of divorce; hereafter in this Article the same shall apply) a structure or a plot of land included in an improvement project after the establishment of the association was authorized for a reconstruction project to be implemented in an area designated as an high-speculation area under Article 63 (1) of the Housing Act (hereinafter referred to as "high-speculation area"); or any person who acquires a structure or a plot of land included in an improvement project after a management and disposal plan under Article 74 was authorized for a redevelopment project is ineligible for membership in an association, notwithstanding paragraph (1): Provided, That this shall not apply to any person who acquires a structure or a plot of land from a transferor, if the transferor is in any of the following circumstances: <Amended on Oct. 24, 2017; Jun. 9, 2020; Apr. 13, 2021> |
| 1. | Where all members of his or her household relocate to the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Special Self-Governing Province or Si/Gun, in which the relevant project zone is not located, due to the job or business, the medical treatment of a disease (limited to where the head of a medical institution referred to in Article 3 of the Medical Service Act diagnoses that medical treatment or care for at least one year is necessary), schooling, or marriage of his or her household member (referring to a member of the household, including the householder; hereafter in this Article the same shall apply); |
| 2. | Where all members of his or her household members relocate to the house acquired by inheritance; |
| 3. | Where all members of his or her household emigrate to a foreign country or plan to stay abroad for at least two years; |
| 4. | Where his or her household owns one house (at the time the household is deemed one household under paragraph (1) 2) and the household owns the transferred house and has resided in the transferred house respectively for at least the period specified by Presidential Decree; |
| 5. | Where a person intends to share a structure or land with the Korea Land and Housing Corporation or a local government-invested public corporation in order to get the supply of co-owned houses referred to in Article 80; |
| 6. | Where a person intends to transfer the ownership of any structure or any plot of land to an implementer of a public redevelopment project who intends to acquire such structure or plot of land for the purpose of supplying public rental housing units, public housing for sale under the Special Act on Public Housing, or a project prescribed by Presidential Decree; |
| 7. | In cases prescribed by Presidential Decree where he or she transfers a structure or a plot of land due to any unavoidable cause. |
| (3) | Where a person who acquired a plot of land, a structure or any right or interest in an improvement project is ineligible for membership in an association under the main clause, with the exception of the subparagraphs, of paragraph (2), the project implementer shall compensate such person for losses by applying Article 73 mutatis mutandis to the person. |
[The proviso, with the exception of the subparagraphs, of paragraph (1) of this Article remains effective until January 26, 2018 pursuant to Article 2 of the Addenda to Act No. 14567 (Feb. 8, 2017)]
| Article 40 (Mandatory Provisions of Articles of Association) |
| (1) | An association’s articles of association shall provide for the following: |
| 1. | The association's name and place of business; |
| 2. | Requirements for membership; |
| 3. | Expelling, withdrawing or replacing members; |
| 4. | The location and area of the improvement zone; |
| 5. | The number of association executive officers under Article 41 (hereinafter referred to as "association executive officers") and the scope of their duties; |
| 6. | Rights and duties of, and remuneration for, association executive officers, the methods for appointing association executive officers, and replacing and removing association executive officers; |
| 7. | The number of representatives, the method for appointing representatives, and the method for passing a resolution in a representatives' meeting; |
| 8. | Apportioning costs of the association and accounting of the association; |
| 9. | The year for implementing the improvement project and the method for implementation; |
| 10. | The procedures and timing for convening a general meeting and the method for passing a resolution in the general meeting; |
| 11. | Requests to hold general meetings or call general meetings of association members; |
| 13. | The timing and procedures for paying the improvement project cost; |
| 14. | The procedures for settlement at the time of completion of the improvement project; |
| 15. | The method and procedures for collecting and paying settlement money; |
| 16. | Selecting a contractor and a designer and provisions to be included in a contract; |
| 17. | The procedures for amending the articles of association; |
| 18. | Other provisions specified by Presidential Decree as necessary for implementing improvement projects and operating associations. |
| (2) | A Mayor/Do Governor may formulate and distribute standard-form articles of association with the matters specified in the subparagraphs of paragraph (1) included therein. <Amended on Apr. 23, 2019> |
| (3) | An amendment to an association's articles of association requires the concurring votes of a majority of association members at a general meeting and authorization by the head of the relevant Si/Gun/Gu, notwithstanding Article 35 (2) through (5): Provided, That an amendment to any of the matters specified in paragraph (1) 2, 3, 4, 8, 13 and 16 requires the concurring votes of at least 2/3 of association members. |
| (4) | Any minor matter specified by Presidential Decree shall be modified as prescribed in this Act or stipulated by the articles of association; and shall be reported to the head of the relevant Si/Gun/Gu, notwithstanding paragraph (3). |
| (5) | The head of a relevant Si/Gun/Gu shall notify a person who has filed a report of whether or not to accept it within 20 days from the date of receiving said report under paragraph (4). <Newly Inserted on Mar. 6, 2021> |
| (6) | Where the head of a relevant Si/Gun/Gu fails to notify a person who has filed a report of whether to accept it or the extension of handling period pursuant to the statutes or regulations related to civil petition handling within the period prescribed in paragraph (5), the report shall be deemed accepted on the date following the end of such period (referring to the relevant extended handling period in cases of the extension of re-extension of the handling period under the statutes or regulations related to civil petition handling. <Newly Inserted on Mar. 16, 2021> |
| Article 41 (Executive Officers of Associations) |
| (1) | An association shall have one president, directors, and an auditor who meet any of the following requirements as its executive officers. In such cases, the president of an association shall reside in the relevant improvement zone during the period from the date of appointment to the date when he or she obtains authorization of a management and disposal plan pursuant to Article 74 (1) (referring to business operations in the case of a person who continues business operations; hereafter in this Article and Article 43 the same shall apply): <Amended on Apr. 23, 2019> |
| 1. | The person resides and has resided in the improvement zone for at least one year during the three years immediately preceding the date of appointment; |
| 2. | The person has owned a structure or a plot of land (referring to a structure and the land appurtenant to the structure, in cases of a reconstruction project) in the improvement zone for at least five years; |
| 3. | Deleted. <Apr. 23, 2019> |
| (2) | The number of directors and auditors of an association shall be stipulated by its articles of association, within the limits prescribed by Presidential Decree. |
| (3) | An association may entrust the management of elections of its executive officers to the Election Commission pursuant to Article 3 of the Election Commission Act, by passing a resolution in a general meeting. |
| (4) | The term of office of association executive officers shall be stipulated by the articles of association within three years, but may be renewed consecutively. |
| (5) | The method for electing association executive officers shall be stipulated by the articles of association: Provided, That, the head of the relevant Si/Gun/Gu may select a person who meets the requirements prescribed by Presidential Decree, among attorneys-at-law, certified public accountants, professional engineers, etc., as the special administrator of the association to act on behalf of such executive officer in any of the following cases: <Amended on Apr. 23, 2019> |
| 1. | Where an association executive officer has not been appointed for at least six months from the time he or she becomes unable to perform his or her duties due to resignation, dismissal, expiration of his or her term of office, or any other unavoidable cause; |
| 2. | Where selection of the special administrator of an association is requested by the attendance of a majority of the association members and the consent of a majority of the members present at a general meeting. |
| (6) | Procedures for selecting the special administer of an association under paragraph (5) and matters necessary for authorizing such person to act as an executive officer shall be prescribed by Presidential Decree. |
| Article 42 (Duties of Executive Officers of Association) |
| (1) | The president of an association shall represent the association, administer its business affairs, and preside over general meetings or representatives' meetings under Article 46. |
| (2) | The president of an association shall be deemed a representative, when he or she chairs a representatives' meeting under paragraph (1). |
| (3) | When the president or a director of an association becomes a party to a contract entered into with the association or a lawsuit filed by or against the association, for his or her own interest, an auditor shall represent the association. |
| (4) | Any executive officer of an association may concurrently work for another association implementing an improvement project for an identical purpose as an executive officer or employee. |
| Article 43 (Disqualifications for, and Removal of, Executive Officers of Associations) |
| (1) | The following persons shall be disqualified from serving as an executive officer or as a special administrator of an association: <Amended on Apr. 23, 2019; 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 two years have not passed since being sentenced to imprisonment without labor or heavier punishment and completed (or is deemed completely executed) or waived; |
| 4. | A person who was sentenced to a suspended imprisonment without labor or heavier punishment and is still in the period of suspension; |
| 5. | A person in whose case 10 years have not passed since being sentenced to a fine not exceeding one million won or heavier punishment for violating this Act. |
| (2) | An association executive officer who falls under any of the following subparagraphs shall retire ex officio from his or her office: <Amended on Apr. 23, 2019; Jun. 9, 2020> |
| 1. | Where the executive officer of an association is disqualified on any of the grounds specified in any subparagraph of paragraph (1) or is found to have been unqualified at the time of appointment; |
| 2. | Where the executive officer of an association fails to meet the requirements referred to in Article 41 (1). |
| (3) | Actions involving an executive officer dismissed from office under paragraph (2) remain effective. |
| (4) | Notwithstanding Article 44 (2), any association executive officer may be dismissed from office at a general meeting with a quorum of a majority of association members, convened upon request by at least 1/10 of the association members and by the concurring votes of a majority of the members present at the general meeting. If the person elected as a representative by the members requesting to call the meeting convenes and presides over the general meeting for dismissal, the person shall act on behalf of the president of the association. |
| (5) | Where the head of a Si/Gun/Gu selects a special administrator of an association under Article 41 (5) 2, the executive officer to act on behalf of the special administrator of an association shall retire ex officio from office. <Newly Inserted on Apr. 23, 2019> |
[Title Amended on Apr. 23, 2019]
| Article 43-2 (Separate Sentence of Fine) |
A person of concurrent crimes, who has committed a crime specified in Articles 135 through 138 of this Act and any other crime, shall be separately sentenced to fines for respective crimes, notwithstanding Article 38 of the Criminal Act. [This Article Newly Inserted on Aug. 10, 2021]
| Article 44 (Convening General Meetings) |
| (1) | An association shall hold a general meeting comprised of its members. |
| (2) | A general meeting shall be convened by the president of an association ex officio; or upon request by at least 1/5 of association members (at least 1/10 in cases of a general meeting convened to change matters relating to the rights and duties of, and remuneration for, association executive officers, the methods for appointing them, and replacing and removing them), or at least 2/3 of representatives. <Amended on Apr. 23, 2019> |
| (3) | If an association fails to appoint an executive officer to fill a vacancy for at least six months after an executive officer resigned or was removed from office or upon expiration of his or her term of office, the head of the relevant Si/Gun/Gu may convene a general meeting to elect an executive officer of the association, notwithstanding paragraph (2). |
| (4) | A person who intends to convene a general meeting under paragraph (2) or (3) shall determine the purposes, agenda, date, time, and venue of the meeting and matters necessary for exercising voting rights in writing under Article 45 (5), such as the period and place for exercising voting rights in writing, and notify the association members thereof by seven days before holding the general meeting. <Amended on Aug. 10, 2021> |
| (5) | Procedures and timing for convening general meetings and other necessary matters shall be stipulated by the articles of association. |
| Article 45 (Resolutions at General Meetings) |
| (1) | The following matters shall be resolved upon at a general meeting: <Amended on Apr. 23, 2019; Apr. 7, 2020; Mar. 16, 2021> |
| 1. | Amending the articles of association (amending minor matters referred to in Article 40 (4) shall be subject to resolution at a general meeting, if provided for in this Act or the articles of association); |
| 2. | Borrowing funds, the methods therefor, applicable interest rates thereon and the repayment method; |
| 3. | A budget bill and details of budget expenditure, including a plan for use of improvement project costs by item; |
| 4. | Executing contracts that will incur a financial burden on association members, in addition to the burden specified in the budget; |
| 5. | Selecting or replacing a contractor, designer or appraisal corporation, etc. (excluding an appraisal corporation, etc. selected and contracted by the head of the relevant Si/Gun/Gu pursuant to Article 74 (4)): Provided, That selecting or replacing an appraisal corporation may be entrusted to the head of the relevant Si/Gun/Gu by resolution at a general meeting; |
| 6. | Selecting or replacing a management entity specialized in improvement projects; |
| 7. | Appointing or dismissing association executive officers; |
| 8. | Details of apportionment of the improvement project cost to each association member; |
| 9. | Formulating or amending a project implementation plan under Article 52 (including provisions concerning suspension or discontinuance of an improvement project under the main clause of Article 50 (1), but excluding a modification of any minor matter referred to in the proviso of Article 50 (1)); |
| 10. | Formulating and amending a management and disposal plan under Article 74 (excluding a modification of any minor mater referred to in the proviso, with the exception of the subparagraphs, of Article 74 (1)); |
| 11. | Collecting and paying settlement money under Article 89 (including collection and payment in installments) and the accounting report at the time of liquidation of the association; |
| 12. | The costs referred to in Article 93 and the method for collecting the amount; |
| 13. | Other matters specified by Presidential Decree or stipulated by the articles of association to determine important matters, including matters imposing a financial burden on association members. |
| (2) | Matters that require the consent of association members under this Act or the articles of association, among the matters specified in paragraph (1), shall be referred to a general meeting for resolution. |
| (3) | Except as provided in this Act or the articles of association, a majority of the members of an association shall constitute a quorum to hold a general meeting, and any resolution in the general meeting shall require the concurring votes of a majority of those present. |
| (4) | In cases falling under paragraph (1) 9 or 10, a resolution shall require the concurring votes of a majority of association members: Provided, That, a resolution to increase the improvement project cost by at least 10/100 (excluding the amount of an increase due to inflation of producer price and the amount of compensation for losses under Article 73) shall require the concurring votes of at least 2/3 of association members. |
| (5) | An association member may exercise his or her voting right in writing or by proxy in any of the following cases. An association member exercising his or her voting right in writing shall be deemed to attend the meeting for the purpose of determining a quorum: |
| 1. | Where an association member is unable to exercise his or her right in person and submits a power of attorney designating an adult as proxy, among his or her spouse, lineal ascendants and descendants and siblings; |
| 2. | Where an association member residing abroad designates his or her proxy; |
| 3. | A corporation as the owner of a plot of land or structure designates its proxy. In such cases, the corporation's proxy may be appointed as an executive officer or representative of the association. |
| (6) | An association shall verify the identity of a person who exercises his or her voting right in writing under paragraph (5). <Newly Inserted on Aug. 10, 2021> |
| (7) | A resolution at a general meeting shall require the attendance of at least 10/100 of association members in person (if an association member exercises his or her voting rights by proxy for falling under any subparagraph of paragraph (5), he or she shall be deemed to have exercised the voting rights in person; hereafter in this Article the same shall apply): Provided, That any of the general meetings prescribed by Presidential Decree, such as an inaugural general meeting; and a general meeting held to pass a resolution to formulate or amend a project implementation plan; or to formulate or amend a management and disposal plan, shall require the attendance of at least 20/100 of association members in person, to constitute a quorum. <Amended on Aug. 10, 2021> |
| (9) | Matters necessary for methods of resolutions at general meetings, the exercise of voting rights in writing, and the methods of verifying identity, etc. shall be prescribed by the articles of association. <Amended on Aug. 10, 2021> |
| Article 46 (Representatives’ Meetings) |
| (1) | An association comprised of at least 100 members shall have a representatives' meeting. |
| (2) | The representatives' meeting shall be comprised of at least 1/10 of association members: Provided, That if 1/10 of association members exceeds 100, the representatives' meeting may be formed with at least 100 association members within the maximum of 1/10 of association members. |
| (3) | No executive officer of an association, except the president of the association, shall not serve as a representative. |
| (4) | Representatives' meetings may exercise powers of general meetings over matters subject to resolution in general meetings, except for the matters specified by Presidential Decree. |
| (5) | The number of representatives, the methods and procedures for appointing representatives, the methods for passing resolutions at representatives' meetings and other necessary matters shall be stipulated by the articles of association within the limitations prescribed by Presidential Decree. |
| Article 47 (Resident Representatives' Meetings) |
| (1) | If the owners of a plot of land or structure want the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation to implement a project, they shall establish an organization comprised of representatives of residents (hereinafter referred to as "resident representatives' meeting") after the relevant improvement zone is designated and publicly notified. |
| (2) | A resident representatives' meeting shall be comprised of between five and 25 persons, including a chairperson. |
| (3) | A resident representatives' meeting shall be formed with the consent of a majority of the owners of a plot of land or structure; and shall obtain approval from the head of the relevant Si/Gun/Gu according to the method and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (4) | Persons consenting to organize a resident representatives' meeting under paragraph (3) shall be deemed to consent to designate a project implementer under the latter part of Article 26 (1) 8: Provided, That this shall not apply to the owners of a plot of land or structure who dissented to the designation of a project implementer to the head of the relevant Si/Gun/Gu or the resident representatives' meeting before the designation of a project implementer is requested. |
| (5) | A resident representatives' meeting or tenants (including commercial tenants; hereinafter the same shall apply) may present their consensus to the project implementer at the time the project implementer formulates implementation rules on the following matters pursuant to Article 53. In such cases, the project implementer shall endeavor to reflect the consensus of the resident representatives' meeting or tenants in the implementation rules: |
| 1. | Demolishing structures; |
| 2. | Relocating residents (including evicting tenants); |
| 3. | Compensating for land and structures (including compensation for tenants, such as for relocation expenses); |
| 4. | Apportioning the improvement project costs; |
| 5. | Supplying rental housing units to tenants and tenant eligibility requirements; |
| 6. | Other matters specified by Presidential Decree as necessary for implementing improvement projects. |
| (6) | Operating a resident representatives' meeting, apportioning costs, the methods and procedures for appointing members and other necessary matters shall be prescribed by Presidential Decree. |
| Article 48 (Plenary Meetings of Owners of Plots of Land or Structures) |
| (1) | A trust business entity designated as a project implementer under Article 27 (1) 3 shall refer the following matters for resolution to the meeting attended by all the owners of a plot of land or structure (hereinafter referred to as "plenary meeting of land or structure owners") included in the relevant improvement project (referring to the owners of a plot of land or structure who consented to designate a trust business entity as the project implementer in cases of a reconstruction project; hereafter in this Article the same shall apply): |
| 1. | Establishing or amending implementation rules; |
| 2. | Using or changing any of the improvement project costs; |
| 3. | Entering into a contract that will impose a burden on the owners of a plot of land or structure, including an agreement with a management entity specialized in improvement projects; |
| 4. | Selecting or replacing a contractor; |
| 5. | Details of apportionment of the improvement project costs to the owner of each plot of land or each structure; |
| 6. | Borrowing funds, the method therefor, interest rate and the method of repayment; |
| 7. | Formulating or amending a project implementation plan under Article 52 (including provisions concerning suspension or discontinuance of the improvement project under the main clause of Article 50 (1), but excluding a modification of any minor matter referred to in the proviso of Article 50 (1)); |
| 8. | Formulating or amending a management and disposal plan under Article 74 (excluding a modification of any minor mater referred to in the proviso, with the exception of the subparagraphs, of Article 74 (1)); |
| 9. | Collecting and paying settlement money under Article 89 (including collection and payment in installments) and the accounting report at the time of dissolution of the association; |
| 10. | The costs under Article 93 and the method for collecting them; |
| 11. | Other matters specified by implementation rules as those imposing a burden on the owners of a plot of land or structure. |
| (2) | The plenary meeting of land or structure owners shall be convened by the project implementer ex officio or upon request by at least 1/5 of the owners of a plot of land or structure. |
| (3) | Articles 44 (5) and 45 (3), (4), (7) and (9) shall apply mutatis mutandis to the procedures and timing for convening the plenary meeting of the owners of a plot of land or structure, the method for passing a resolution, etc. In such cases, the term "general meeting" shall be construed as "plenary meeting of the owners of a plot of land or structure"; and the term "association members" as "owners of a plot of land or structure". <Amended on Aug. 10, 2021> |
| Article 49 (Application Mutatis Mutandis of the Civil Act) |
Except as provided in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to associations.
SECTION 3 Project Implementation Plans
| Article 50 (Authorization of Project Implementation Plans) |
| (1) | When a project implementer (including where a project is jointly implemented pursuant to Article 25 (1) or (2); but excluding where the project implementer is the head of the relevant Si/Gun/Gu) intends to implement an improvement project, it shall submit a project implementation plan under Article 52 (hereinafter referred to as "project implementation plan") to the head of the relevant Si/Gun/Gu, along with the articles of association, etc. and other documents specified by Ordinance of the Ministry of Land, Infrastructure and Transport to obtain authorization of the project implementation plan; and the same procedure shall apply where the project implementer intends to amend the authorized plan or suspend or discontinue the improvement project: Provided, That the project implementer shall report to the head of the relevant Si/Gun/Gu to modify any of the minor matters specified by Presidential Decree. |
| (2) | The head of a relevant Si/Gun/Gu shall notify a person who has filed a report of whether or not to accept it within 20 days from the date of receiving said report under the proviso of paragraph (1). <Newly Inserted on Mar. 16, 2021> |
| (3) | Where the head of the relevant Si/Gun/Gu fails to notify a person who has filed a report of whether to accept it or the extension of handling period pursuant to the statutes or regulations related to civil petition handling within the period prescribed in paragraph (2), the report shall be deemed accepted on the date following the end of such period (referring to the relevant extended handling period in cases of the extension or re-extension of the handling period under the statutes or regulations related to civil petition handling). <Newly Inserted on Mar. 16, 2021> |
| (4) | The head of a relevant Si/Gun/Gu shall determine whether to authorize a project implementation plan and shall notify the project implementer of his or her decision within 60 days from the date the project implementation plan is submitted pursuant to paragraph (1), unless there is a compelling reason not to do so. <Amended on Mar. 16, 2021> |
| (5) | A project implementer (excluding the head of the relevant Si/Gun/Gu or the Korea Land and Housing Corporation or a local government-invested public corporation) shall pass a resolution adopting a project implement plan at a general meeting before filing an application for authorization of said plan and the same shall apply where the project implementer intends to modify matters authorized or to suspend or discontinue the improvement project: Provided, That modification of any minor matter referred to in the proviso of paragraph (1) requires no resolution at the general meeting. <Amended on Mar. 16, 2021> |
| (6) | Where the owners of a plot of land or structure intends to implement a redevelopment project as prescribed in Article 25 (1) 2, they shall obtain consent of at least 3/4 of the owners of a plot of land or structure and the landowners owning at least 1/2 of the area of the land for the project implementation plan before filing an application for authorization of the project implementation plan: Provided, That any modification of the authorized matters shall require consent of a majority of the owners of a plot of land or structure, as prescribed by regulations; but modification of any minor matter referred to in the proviso of paragraph (1) requires no consent of the owners of a plot of land or structure. <Amended on Mar. 16, 2021> |
| (7) | When a qualified developer intends to implement an improvement project, it shall obtain consent of a majority of the owners of a plot of land or structure and consent of the landowners owning at least 1/2 of the area of the land for the project before filing an application for authorization of a project implementation plan: Provided, That modification of any minor matter under the proviso of paragraph (1) requires no consent of the owners of a plot of land or structure. <Amended on Mar. 16, 2021> |
| (8) | Notwithstanding paragraph (7), a project implementer under Article 26 (1) 1 or 27 (1) 1 needs not obtain consent of the owners of a plot of land or structure. <Amended on Mar. 16, 2021> |
| (9) | Where the head of a relevant Si/Gun/Gu authorizes a project implementation plan under paragraph (1) (including a project implementation plan formulated by the head of the relevant Si/Gun/Gu) or modifies, suspends, or discontinues an improvement project, he or she shall give public notice of the details thereof in the Public Gazette of the relevant local government, according to the methods and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: Provided, That the same shall not apply to modification of a minor matter referred to in the proviso of paragraph (1). <Amended on Mar. 16, 2021> |
| Article 51 (Guidelines for Donation of Infrastructure) |
| (1) | When the head of the relevant Si/Gun/Gu authorizes a project implementation plan under Article 50 (1), he or she shall not require the project implementer to include fundamental infrastructure facilities not directly related to the relevant improvement project or excessive fundamental infrastructure facilities in the project implementation plan submitted by the project implementer as fundamental infrastructure facilities to be donated. |
| (2) | The Minister of Land, Infrastructure and Transport may formulate and publicly notify operating guidelines, including the following, regarding the donation of fundamental infrastructure: |
| 1. | Principles for, and the level of, the burden of donation of fundamental infrastructure; |
| 2. | Guidelines, etc. for constructing fundamental infrastructure. |
| (3) | The head of the relevant Si/Gun/Gu may determine separate guidelines within the limitations prescribed by the operating guidelines under paragraph (2), considering local conditions, the nature of each project, etc.; and shall pre-report the guidelines to the Minister of Land, Infrastructure and Transport. |
| Article 52 (Formulation of Project Implementation Plans) |
| (1) | A project implementer shall formulate a project implementation plan, including the following matters, according to the relevant improvement plan: <Amended on Jan. 16, 2018; Apr. 13, 2021> |
| 1. | A land use plan (including a structure layout plan); |
| 2. | A plan for constructing fundamental infrastructure and common facilities; |
| 3. | Measures for relocating residents, including temporary housing facilities; |
| 4. | Measures for housing and relocating tenants; |
| 5. | Measures for preventing crimes during the project implementation period, including installation of street lamps and closed circuit televisions in the improvement zone; |
| 6. | A plan to build rental housing units under Article 10 (excluding a reconstruction project); |
| 7. | A plan to build housing units of the national standard housing size under Articles 54 (4), 101-5, and 101-6 (excluding a residential environment improvement project); |
| 8. | A plan to build publicly-funded private rental housing units or housing units under outsourced rental management (limited to where necessary); |
| 9. | A building plan regarding the height, floor area ratio, etc. of structures; |
| 10. | A plan to dispose of wastes generated in the course of implementing the improvement project; |
| 11. | A plan to protect the environment of educational facilities (limited to where an educational facility exists within a 200-meter radius from the improvement zone); |
| 12. | The improvement project cost; |
| 13. | Other matters specified by City/Do ordinance, as prescribed by Presidential Decree, for implementing projects. |
| (2) | Where a project implementer includes a plan to build public housing, defined in subparagraph 1 of Article 2 of the Special Act on Public Housing (hereinafter referred to as "public housing"), in the project implementation plan under paragraph (1), Article 37 of that Act shall apply to standards for the structure, functions, and facilities of the public housing, the scope of appurtenant facilities and welfare facilities, standards for installing such facilities and other necessary matters. |
| Article 53 (Formulation of Implementation Rules) |
The head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation or a trust business entity shall formulate implementation rules, including provisions regarding the following matters in order to solely implement an improvement project:
| 1. | The category and name of the improvement project; |
| 2. | The implementation year of the improvement project and the method of implementation; |
| 3. | Cost apportionment and accounting; |
| 4. | Rights and obligations of the owners of a plot of land or structure; |
| 5. | Apportionment of costs of fundamental infrastructure and common facilities; |
| 6. | Methods for public announcement, public inspection and notification; |
| 7. | Methods for valuation of rights and interests in land and structures; |
| 8. | The management and disposal plan and settlement (including provisions concerning collection or payment in installments): Provided, That this shall be excluded, if a project is to be implemented with expropriated property; |
| 9. | Amending implementation rules; |
| 10. | Amending the project implementation plan; |
| 11. | The plenary meeting of land or structure owners (limited to where a trust business entity is the project implementer); |
| 12. | Other matters specified by City/Do ordinance. |
| Article 54 (Relaxation of Floor Area Ratios for Reconstruction Projects and Construction Ratios of Housing Units of National Standard Housing Size) |
| (1) | Where a project implementer implements any improvement project that falls within the following categories (excluding any redevelopment or reconstruction project implemented in an urban renewal acceleration district, defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Urban Renewal; hereafter in this Article the same shall apply), it may build structures with a maximum floor area ratio up to that specified in Article 78 of the National Land Planning and Utilization Act or any relevant statute (hereafter in this Article referred to as “statutory maximum floor area ratio”) after deliberation by the local urban planning committee, notwithstanding the floor area ratio specified in the relevant improvement plan (including a plan deemed the relevant improvement plan under this Act; hereafter in this Article the same shall apply): |
| 2. | A redevelopment or reconstruction project implemented in an area specified by City/Do ordinance, except the areas referred to in subparagraph 1. |
| (2) | If a project implementer intends to build structures in excess of the floor area ratio specified in the relevant improvement plan pursuant to paragraph (1), the project implementer shall not be subject to the floor area ratio limits specified by ordinance of the competent Special Metropolitan City, Metropolitan City, Special Self-Governing City, Special Self-Governing Province or Si/Gun pursuant to Article 78 of the National Land Planning and Utilization Act or the limits on the number of permitted households specified in the relevant improvement plan. |
| (3) | "Maximum floor area ratio specified by any relevant statute" in paragraph (1) means the floor area ratio up to which structures may be built, where building activities are restricted as follows: |
| 7. | Other cases where the head of the relevant Si/Gun/Gu demonstrates that a limit on construction works under any building-related statute prohibits relaxation of floor area ratios; and then the local urban planning committee or the building committee established in the relevant City/Do pursuant to Article 4 of the Building Act deliberates on the possibility of relaxation and concludes that it is impossible to relax floor area ratios. |
| (4) | A project implementer shall build housing units of the national standard housing size in an area equivalent to any of the following percentage of the floor area ratio calculated by subtracting the floor area ratio specified in the relevant improvement plan from the statutory maximum floor area ratio (hereinafter referred to as "excess floor area ratio"): Provided, That this shall not apply to any improvement project implemented pursuant to Article 24 (4), 26 (1) 1, or 27 (1) 1: <Amended on Apr. 13, 2021> |
| 1. | In cases of a reconstruction project implemented in an over-concentration control area, the percent specified by City/Do ordinance within the range of 30/100 and 50/100 of the excess floor area ratio; |
| 2. | In cases of a redevelopment project implemented in an over-concentration control area, the percent specified by City/Do ordinance within the range of 50/100 and 75/100 of the excess floor area ratio; |
| 3. | In cases of a reconstruction project implemented in any area other than an over-concentration control area, the percent specified by City/Do ordinance within the maximum of 50/100 of the excess floor area ratio; |
| 4. | In cases of a redevelopment project implemented in any area other than an over-concentration control area, the percent specified by City/Do ordinance within the maximum of 75/100 of the excess floor area ratio. |
[Title Amended on Apr. 13, 2021]
| Article 55 (Supply and Transfer of Housing Units of National Standard Housing Size) |
| (1) | A project implementer shall supply housing units of the national standard housing size built pursuant to Article 54 (4) to the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, the head of a Si/Gun/Gu, or the Korea Land and Housing Corporation or a local government-invested public corporation (hereinafter referred to as "transferee"). <Amended on Apr. 13, 2021> |
| (2) | The price of the housing units of the national standard housing size supplied under paragraphs (1) shall be determined with the standard construction cost of public rental housing publicly notified by the Minister of Land, Infrastructure and Transport under Article 50-4 of the Special Act on Public Housing; and the land appurtenant thereto shall be deemed donated to the transferee. <Amended on Apr. 13, 2021> |
| (3) | When a project implementer intends to build housing units of the national standard housing size in excess of the floor area ratio specified in the relevant improvement plan pursuant to Article 54 (1) or (2), it shall consult with the transferee on the matters concerning housing units of the national standard housing size under paragraphs (1) and (2), before filing an application for authorization for the project implementation plan, and shall reflect the outcomes of the consultation in the project implementation plan. <Amended on Apr. 13, 2021> |
| (4) | Procedures and methods for transferring housing units of the national standard housing size under paragraphs (1) and (2) and other necessary matters may be prescribed by Presidential Decree; and the transferred housing units of the national standard housing size shall be utilized as long-term public rental housing units prescribed by Presidential Decree: Provided, That if the requirements prescribed by Presidential Decree are met, such as alleviating the burden on the owners of a plot of land or structure, the transferred housing units of the national standard housing size may be utilized as rental housing units, rather than long-term public rental housing units. <Amended on Apr. 13, 2021> |
| (5) | Notwithstanding paragraph (2), a transferee of rental housing units under the proviso of paragraph (4) shall acquire the land appurtenant to such housing units at the price specified by Presidential Decree within the maximum of 50/100 of the appraised price, based upon the obligatory lease period. |
[Title Amended on Apr. 13, 2021]
| Article 56 (Public Inspection of Related Documents and Gathering of Opinions) |
| (1) | In order to authorize or formulate a project implementation plan, the head of the relevant Si/Gun/Gu shall make copies of related documents available to the general public for inspection for at least 14 days according to the method and procedure prescribed by Presidential Decree: Provided, That this shall not apply to any modification of the minor matters referred to in the proviso of Article 50 (1). |
| (2) | The owner of a plot of land or structure, an association member, or any interested party in the relevant improvement project may present a written opinion to the head of the relevant Si/Gun/Gu during the public inspection period specified in paragraph (1). |
| (3) | If the head of the relevant Si/Gun/Gu reviews an opinion presented under paragraph (2) and concludes it necessary to accept the opinion, he or she shall accept the opinion; but if he or she finds such opinion unacceptable, he or she shall notify the person who presented the opinion of the grounds it is unacceptable. |
| Article 57 (Deemed Authorization or Permission) |
| (1) | The authorization of a project implementation plan submitted by a project implementer (or the formulation of a project implementation plan, if the head of the relevant Si/Gun/Gu directly implements an improvement project; hereafter in this Article the same shall apply) shall be deemed authorization, permission, approval, reporting, registration, consultation, consent, examination, designation and cancellation specified in the following (hereinafter referred to as "authorization, permission, etc."). The authorization of a project implementation plan publicly notified under Article 50 (9) shall be deemed authorization, permission, etc. publicly notified or announced under the following relevant statutes: <Amended on Mar. 31, 2020; Jun. 9, 2020; Mar. 16, 2021; Jul. 20, 2021; Nov. 30, 2021> |
| 4. | Permission granted to a person, other than road managing authorities under Article 36 of the Road Act to execute roadworks; and permission to occupy and use a road under Article 61 of that Act; |
| 8. | Issuing permission for implementing a river project or authorizing an implementation plan for a river project under Article 30 of the River Act; issuing permission for occupying and using a river under Article 33 of that Act; or issuing permission for using water from a river under Article 50 of that Act; |
| (2) | Where a project implementer obtains authorization of its project implementation plan for a redevelopment project in an area where a factory is located, it shall be deemed to obtain the following authorization, permission, etc., in addition to the authorization, permission, etc. referred to in paragraph (1). The authorization of a project implementation plan publicly notified under Article 50 (9) shall be deemed authorization, permission, etc. publicly notified or announced under the following related statutes: <Amended on Mar. 16, 2021> |
| (3) | When a project implementer wishes to obtain deemed authorization, permission, etc. under paragraphs (1) and (2) for the relevant improvement project, it shall submit the documents required by the relevant statutes when filing an application for authorization of the project implementation plan under Article 50 (1): Provided, That, if a project implementer is unable to submit required documents when filing an application for authorization of the project implementation plan, because no contractor has been selected yet; or if the head of the relevant Si/Gun/Gu authorizes a project implementation plan under paragraph (6), the project implementer may submit such documents by the deadline specified by the head of the relevant Si/Gun/Gu. <Amended on June. 9, 2020> |
| (4) | If a project implementation plan that the head of the relevant Si/Gun/Gu intends to authorize or formulate includes any matter eligible for deemed authorization, permission, etc. under paragraph (1) or (2), the head of the relevant Si/Gun/Gu shall consult with the heads of related administrative agencies thereon; and, upon request for consultation, the head of a related administrative agency shall present his or her opinion within 30 days from the date he or she is so requested (referred to the date the documents are delivered to the head of a related administrative agency, in cases falling under the proviso of paragraph (3)). If the head of a related administrative agency fails to present his or her opinion with the 30-day period, consultation shall be deemed complete. |
| (5) | If a project implementation plan that the head of the relevant Si/Gun/Gu intends to authorize (or a project implementation plan that the head of the relevant Si/Gun/Gu intends to formulate) is related to an educational facility located within a 200-meter radius from the relevant improvement zone, the head of the relevant Si/Gun/Gu shall consult with the Superintendent of the Office or District Office of Education in the relevant local government thereon; and the same procedures shall apply where he or she intends to amend such authorization. |
| (6) | Notwithstanding paragraphs (4) and (5), if the head of the relevant Si/Gun/Gu deems it necessary to urgently implement an improvement project due to a natural disaster or any other force majeure event, he or she may authorize a project implementation plan under Article 50 (1) before completing consultation with the head of a related administrative agency or with the Superintendent of the Office or District Office of Education. In such cases, no authorization, permission, etc. referred to in paragraphs (1) and (2) shall be deemed granted or issued, until consultation is completed. |
| (7) | Where a project implementer is deemed to have obtained authorization, permission, etc. referred to in paragraph (1) or (2), it is exempt from fees to be otherwise imposed for such authorization, permission, etc. and from rents or user fees to be imposed for using or occupying the relevant State or public land, according to a relevant statute or City/Do ordinance. |
| Article 58 (Special Provisions concerning Approval of Project Implementation Plans) |
| (2) | The head of the relevant Si/Gun/Gu may authorize a project implementation plan according to the standards prescribed by Presidential Decree, even if the structures to be remained or remodeled and the land on which such structures stand do not meet the following standards for construction works under the Housing Act or the Building Act: |
| (3) | When a project implementer intends to formulate a project implementation plan pursuant to paragraph (1), it shall obtain consent of the owners of the structures to be remained or remodeled (if such structures are owned by persons holding a strata title, defined in subparagraph 2 of Article 2 of the Act on Ownership and Management of Condominium Buildings, the project implementer shall obtain consent of at least 2/3 of the persons holding a strata title and consent of persons holding a strata title in at least 2/3 of the total floor area of the relevant structures): Provided, That this shall not apply where such structures are planned to be remained or remodeled in the relevant improvement plan. |
| Article 59 (Improvement Projects by Circulative Method) |
| (1) | A project implementer shall implement its improvement project sequentially in the improvement zone by providing housing units newly built or existing housing units inside and outside of the improvement zone to the owners and tenants of the houses demolished to implement the improvement project (limited to persons who actually resided in the improvement zone; hereafter in this paragraph and Article 61 (1) the same shall apply), and shall formulate other measures to relocate the owners and tenants of such houses. |
| (2) | Notwithstanding Article 54 of the Housing Act, if a project implementer implements an improvement project as prescribed in paragraph (1), it may use or lease housing units for temporary dwelling under Article 61 (hereinafter referred to as "housing units for circulative dwelling") and may request the Korea Land and Housing Corporation or a local government-invested public corporation to preferentially supply public rental housing units owned by the corporation as housing units for circulative dwelling according to the method and procedures prescribed by Presidential Decree. |
| (3) | If a person residing in a housing unit for circulative dwelling wishes to continue residing in the housing unit even after the relevant improvement project is complete, the project implementer may sell or continue leasing the housing unit to such person, as prescribed by Presidential Decree. In such cases, the housing units owned by the project implementer for circulative dwelling shall be deemed conveyed to the owners of a plot of land or structure according to the management and disposal plan authorized under Article 74. |
| Article 60 (Deposit of Improvement Project Cost by Qualified Developers) |
| (1) | In authorizing a project implementation plan for a redevelopment project, the head of the relevant Si/Gun/Gu may require the project implementer of that project to deposit an amount specified by City/Do ordinance within the maximum of 20/100 of the improvement project cost, if the project implementer is a qualified developer (limited to where the qualified developer is the owner of a plot of land or structure). |
| (2) | The deposit under paragraph (1) shall be returned to the relevant project implementer when the payment of settlement money is completed pursuant to Article 89 (1) or (2). |
| (3) | Matters necessary for depositing, returning, etc. under paragraphs (1) and (2) shall be prescribed by City/Do ordinance. |
SECTION 4 Measures for Implementing Improvement Projects
| Article 61 (Installation of Temporary Dwelling Facilities and Temporary Commercial Facilities) |
| (1) | A project implementer shall provide the owners and tenants of the houses demolished to implement a residential environment improvement project or redevelopment project, with rental houses or other facilities inside or outside of the relevant improvement zone for temporary dwelling; arrange housing loans for them; and take other measures for temporary dwelling. |
| (2) | A project implementer may temporarily use any facility or any plot of land owned by the State, a local government or any other public institution or private individual, if necessary for installing temporary dwelling facilities pursuant to paragraph (1) (hereinafter referred to as "temporary dwelling facilities"). |
| (3) | Upon receipt of an application from a project implementer for using any structure or any plot of land necessary for temporary dwelling facilities, the State or a local government shall not reject such request, except where prescribed by Presidential Decree. In such cases, the project implementer is exempt from rents or lease fees. |
| (4) | Upon completion of construction works for an improvement project, the project implementer shall remove temporary dwelling facilities within 30 days from the date of completion and shall reinstate the used structures or land. |
| (5) | The project implementer of a redevelopment project may install temporary commercial facilities in the improvement zone or in the vicinity of the improvement zone to allow commercial tenants relocated for implementing the redevelopment project, to use such commercial facilities. |
| Article 62 (Compensation for Loss Incurred by Installing Temporary Dwelling Facilities or Temporary Commercial Facilities) |
| (1) | If any person has sustained loss caused by temporary use of any facility or any plot of land owned by a public institution (excluding local governments) or a private individual under Article 61, the project implementer shall compensate such person for such loss; and shall reach an agreement with that person who has sustained loss when it intends to compensate for such loss. |
| Article 63 (Expropriation or Use of Land) |
| Article 64 (Request for Sale to Implement Reconstruction Projects) |
| (1) | The project implementer of a reconstruction project shall request the following persons, in writing, to confirm whether they consent to establish an association or to designate a project implementer, within 30 days from the date the authorization of the project implementation plan is publicly notified: |
| 1. | Persons who have not consented to establish an association pursuant to Article 35 (3) through (5); |
| 2. | Persons who have not consented to designate the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation, a local government-invested public corporation or a trust business entity as a project implementer pursuant to Article 26 (1) or 27 (1). |
| (2) | Upon receipt of a request under paragraph (1), the owners of a plot of land or structure shall reply to the request within two months from the date of such request. |
| (3) | The owners of a plot of land or structure, who fail to reply to the request within the period specified in paragraph (2), shall be deemed to have replied that they do not consent to establish an association or to designate a project implementer. |
| (4) | After the end of the period specified in paragraph (2), the project implementer may request the owners of a plot of land or structure, who refused consent to establish an association or to designate a project implementer, and the persons who own only a structure or a plot of land to transfer their ownership of the structures or plots of land and other rights and interests, within two months from the end of the period. |
| Article 65 (Application Mutatis Mutandis of the Act on Acquisition of and Compensation for Land for Public Works Projects) |
| (1) | Except as otherwise expressly provided for in this Act, the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis to the expropriation or use of the ownership and other rights and interests in a plot of land or structure to implement an improvement project in an improvement zone: Provided, That guidelines and procedures for compensating for losses incurred by implementing an improvement project may be prescribed by Presidential Decree. |
| (2) | In applying mutatis mutandis the Act on Acquisition of and Compensation for Land for Public Works Projects under paragraph (1), public notice of authorization of a project implementation plan (or public notice of a project implementation plan under Article 50 (9) where the head of the relevant Si/Gun/Gu directly implements an improvement project; hereafter in this Article the same shall apply) shall be deemed approval and public notice of the project under Articles 20 (1) and 22 (1) of that Act. <Amended on Mar. 6, 2021> |
| Article 66 (Special Provisions concerning Floor Area Ratio) |
Notwithstanding Article 78 (1) of the National Land Planning and Utilization Act, a project implementer may relax floor area ratios in either of the following cases by up to 125/100 of the floor area ratio applicable to the relevant improvement zone by ordinance of the competent Special Metropolitan City, Metropolitan City, Special Self-Governing City, Special Self-Governing Province, or Si/Gun, as prescribed by Presidential Decree: | 1. | Where the project implementer pays at least the standard amount specified by Presidential Decree as compensation for losses to tenants, as relocation expenses, or compensate tenants for losses caused by discontinuing or suspending operation of business, pursuant to the proviso of Article 65 (1); |
| 2. | Where the project implementer builds rental housing units or rental commercial facilities, in addition to compensation for losses under the proviso of Article 65 (1); and formulates and implements further measures to compensate tenants for loss. |
| Article 67 (Special Provisions concerning Scope of Reconstruction Projects) |
| (1) | In any of the following cases, a project implementer or a promoters' committee may request the competent authority to partition some plots of land in the relevant housing complex, even if the area of the land to be partitioned is smaller than that specified in Article 57 of the Building Act, notwithstanding that Article of that Act: |
| 1. | Where a reconstruction project is implemented in a housing complex where at least two structures built according to a project plan authorized pursuant to Article 15 (1) of the Housing Act exist; |
| 2. | Where it is necessary to satisfy requirements for consent to establish an association under Article 35 (3). |
| (2) | When a project implementer or a promoters' committee intends to request the competent authority to partition some plots of land under paragraph (1), it shall reach an agreement thereon with the owners of a plot of land or structure, who have an interest in any of the plots of land to be partitioned or any of the structures on the land. |
| (3) | If a project implementer or a promoters' committee fails to reach an agreement on partitioning some plots of land under paragraph (2), it may request the competent court to partition the land. |
| (4) | If land partitioned according to a request to partition land pursuant to paragraph (3) and the structures on the land meet the following requirements, the head of the relevant Si/Gun/Gu may authorize the establishment of an association; and may authorize a project implementation plan after deliberation by the building committee established in the competent Special Self-Governing City Mayor, Special Self-Governing Province Governor or Si/gun/Gu (Gu means an autonomous Gu) pursuant to Article 4 of the Building Act, even where partitioning the land has not been completed and the head of the relevant Si/Gun/Gu fails to meet the requirements for consent under paragraph (1): |
| 1. | The number of land or structure owners, who have an interest in any of the plots of land and structures at issue, shall not exceed 1/10 of all the owners of a plot of land or structure; |
| 2. | The structures on the partitioned land shall not be located on the partition line; |
| 3. | Other requirements prescribed by Presidential Decree for authorization of a project implementation plan shall be satisfied. |
| Article 68 (Special Provisions concerning Relaxation of Building Regulations) |
| (1) | Article 8 of the Housing and Urban Fund Act providing for the purchase of the National Housing Bonds shall not apply where a building permit is issued for a residential environment improvement project and where an application for registering real estate (limited to registration to preserve ownership or registration for a transfer of ownership) is filed for such project. |
| (3) | A project implementer may determine special standards for either of the following matters regarding a residential environment improvement zone, as prescribed by City/Do ordinance: |
| 1. | The relationship between building sites and roads under Article 44 of the Building Act (limited to the extent such special standards do not impede fire-fighting activities); |
| (4) | A project implementer may have the standards for any of the following matters relaxed regarding an improvement zone for a public redevelopment project or a reconstruction zone under Article 26 (1) 1 or 27 (1) 1 (referring to an improvement zone in which a reconstruction project is implemented; hereinafter the same shall apply), within the limits prescribed by Presidential Decree, following deliberation by the relevant local building committee or local urban planning committee under Article 72 (2) of the Building Act: <Amended on Apr. 13, 2021> |
| 6. | Matters prescribed by Presidential Decree to facilitate the implementation of public reconstruction projects or reconstruction projects referred to in Articles 26 (1) 1 and 27 (1) 1, in addition to the matters provided in subparagraphs 1 through 5 and 5-2. |
| Article 69 (Application or Waiver of Other Statutes or Regulations) |
| (1) | A residential environment improvement zone shall be deemed determined and publicly notified, on the date of designation and public notice of the relevant improvement zone, as an area specified by Presidential Decree, from among the areas determined by subdividing a residential area pursuant to Article 36 (1) 1 (a) or (2) of the National Land Planning and Utilization Act: Provided, That this shall not apply in the following cases: |
| 2. | If the head of the relevant Si/Gun/Gu finds it necessary for a residential environment improvement project to maintain part of the relevant improvement zone as the current special-use zone or to change the location of part of the improvement zone within the limits of the same area and formulates an improvement plan by reflecting such findings; |
| 3. | If the head of the relevant Si/Gun/Gu formulates an improvement plan providing for the matters specified in Article 9 (1) 10 (c). |
| (2) | Articles 28 through 49 of the Urban Development Act shall apply mutatis mutandis to replotted land in relation to an improvement project. In such cases, "time for replotting land" in the main clause of Article 41 (2) of that Act shall be construed as "time a project implementation plan is authorized". |
| (3) | Article 78 (4) of the Act on Acquisition of and Compensation for Land for Public Works Projects shall not apply to any residential environment improvement project, and a project implementer (in cases where the Korea Land and Housing Corporation or a local government-invested public corporation are the co-implementers, referring to the Korea Land and Housing Corporation or said local government-invested public corporation) under this Act shall be deemed a project operator under the Housing Act for purposes of applying that Act. <Amended on Apr. 23, 2019> |
| (4) | Where an implementer of a public redevelopment project or a public reconstruction project implementer implements a public redevelopment project or a public reconstruction project, he or she may separately determine standards for placing construction project management engineers, as prescribed by Presidential Decree, notwithstanding relevant statutes or regulations, such as the Construction Technology Promotion Act. <Newly Inserted on Apr. 13, 2021> |
| Article 70 (Termination of Contracts on Surface Rights) |
| (1) | If the purpose of creating a surface right, a right to lease on a deposit basis or a leasehold right is unattainable due to implementation of an improvement project, the person holding any of such rights may terminate the relevant contract. |
| (2) | Any person who may terminate a contract under paragraph (1) may exercise the right to claim return of the deposit for lease on a deposit basis, security deposit, or other money deposited for the contract against the project implementer. |
| (3) | Any project implementer who paid money in response to the exercise of a right to claim the return of such money under paragraph (2) may claim reimbursement of the relevant amount from the relevant owners of a plot of land or structure. |
| (4) | If a project implementer is not reimbursed for any amount under paragraph (3), it may seize a building site or structure to be conveyed to the relevant owner of a plot of land or structure. In such cases, the rights or interests so seized shall be as effective as mortgages. |
| Article 71 (Disposal of Structures Whose Owners Are Unascertainable) |
| (1) | If it is impossible to ascertain whereabouts of the owner of any plot of land or structure as at any of the following dates, the project implementer shall make public announcement at least twice via two or more daily newspapers distributed nationwide and may implement an improvement project after depositing the amount appraised for the relevant structure or plot of land owned by such owner in the competent court after at least 30 days from the date of the public announcement: |
| 1. | If an association is the project implementer pursuant to Article 25, the date of authorization to establish the association under Article 35; |
| 2. | If a redevelopment project is implemented by the owners of a plot of land or structure pursuant to Article 25 (1) 2, the date of authorization of the project implementation plan under Article 50; |
| 3. | If the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation implements an improvement project pursuant to Article 26 (1), the date of public notice under Article 26 (2); |
| 4. | If a qualified developer is designated as the project implementer pursuant to Article 27 (1), the date of public notice under Article 27 (2). |
| (2) | Where a reconstruction project is implemented, land or structures co-owned by all members of an association on the date of authorization to establish the association shall be deemed land or structures owned by the association. |
| (3) | The disposal of land or structures deemed owned by an association under paragraph (2) shall be expressly stipulated in the relevant management and disposal plan under Article 74 (1). |
| (4) | Article 74 (4) 1 shall apply mutatis mutandis to the appraisal of the land or structures referred to in paragraph (1). <Amended on Mar. 16, 2021> |
SECTION 5 Management and Disposal Plans
| Article 72 (Public Announcement of Building Sites or Units for Sale and Applications to Purchase Building Sites or Units) |
| (1) | A project implementer shall notify the owners of a plot of land or structure of the following matters within 120 days from the date the authorization of a project implementation plan is publicly notified under Article 50 (9) (or the date the project implementer enters into a contract with the contractor, if such contractor is selected after the project implementation plan was authorized) and shall publicly announce the matters specified by Presidential Decree, including details of the building sites or structures for sale, via a daily newspaper published in the relevant area: Provided, That this shall not apply to a redevelopment project implemented by one person who owns a plot of land or structure: <Amended on Mar. 16, 2021> |
| 1. | Details of the land or structure previously owned by each eligible purchaser and the price as at the date the authorization of a project implementation plan is publicly notified (in cases of a structure demolished under Article 81 (3) before a project implementation plan is authorized, the price as at the date the head of the relevant Si/Gun/Gu permits such demolition); |
| 2. | The estimated amount of the charge apportioned to each eligible purchaser; |
| 3. | The period for filing applications to purchase a building site or unit; |
| 4. | Other matters specified by Presidential Decree. |
| (2) | The period for filing an application to purchase a building site or unit referred to in paragraph (1) 3 shall be at least 30 to 60 days from the date notice is given: Provided, That a project implementer may extend the period for filing an application to purchase a building site or unit only once by up to 20 days, if it determines such extension will not impede the formulation of a management and disposal plan under Article 74 (1). |
| (3) | An owner of a plot of land or structure who intends to purchase a building site or unit shall file an application to purchase the building site or unit with the project implementer according to the method and procedure prescribed by Presidential Decree within the period set under paragraph (2). |
| (4) | If the number of households or the size of each house is changed due to an amendment to the authorized project implementation plan under Article 50 (1) (excluding a modification of any minor matter) after the end of the period for filing an application to purchase a building site or unit specified under paragraph (2), the project implementer may publicly announce building sites or units for sale and take the steps again as prescribed in paragraphs (1) through (3). |
| (5) | The project implementer may allow the owners of a plot of land or structure, specified in Article 73 (1) 1 or 2, to file an application to purchase a building site or unit pursuant to paragraph (4), if it is stipulated by articles of association, etc. or resolved upon at a general meeting. |
| (6) | Notwithstanding paragraphs (3) through (5), any eligible purchaser referred to in Article 74 (1) 2 or (1) 4 (a) regarding an improvement project for a high-speculation area according to the management and disposal plan under Article 74; and no person belonging to such eligible purchaser’s household shall file an application to purchase a building site or unit under paragraphs (3) through (5) in the high-speculation area for five years from the date of selection of eligible purchaser (in cases of eligible purchasers of the units allocated to association members, it refers to the date of authorization of the initial management and disposal plan): Provided, That a person who obtains membership in an association by inheritance, marriage or divorce may file an application to purchase a building site or unit with the project implementer. <Newly Inserted on Oct. 24, 2017> |
| (7) | Where an implementer of a public redevelopment project intends to acquire a structure or land pursuant to Article 39 (2) 6, he or she shall make a public announcement of the conditions of the structure or land subject to acquisition when publicly announcing the sale thereof under paragraph (1) or (4) to prevent reckless applications for purchase. <Newly Inserted on Apr. 13, 2021> |
| Article 73 (Measures for Persons Failing to File Application to Purchase Building Sites or Units) |
| (1) | A project implementer shall negotiate with the following persons on compensation for a plot of land or structure or any other right or interest within 90 days from the date a management and disposal plan is authorized and publicly notified: Provided, That the project implementer may begin negotiations from the day immediately following the end of the period for filing an application to purchase a building site or unit: <Amended on Oct. 24, 2017> |
| 1. | A person who fails to file an application to purchase a building site or unit; |
| 2. | A person who withdrew his or her application to purchase a building site or unit before the end of the period for filing an application to purchase a building site or unit; |
| 3. | A person illegible for filing an application to purchase a building site or unit under the main clause of Article 72 (6); |
| 4. | A person excluded from eligible among purchasers according to the management and disposal plan authorized under Article 74. |
| (2) | If a project implementer fails to reach an agreement through negotiations under paragraph (1), it shall either apply for adjudication on expropriation with the competent Land Tribunal or file a lawsuit with the court to seek sale of the property, within 60 days from the day immediately following the end of the relevant period. |
| (3) | If a project implementer applies for adjudication on expropriation with the competent Land Tribunal or files a lawsuit with the court to seek sale of the property after the period specified in paragraph (2), it shall pay interest for the number of delayed days to the owner of the plot of land or structure at issue. In such cases, interest shall be calculated based upon the interest rate specified by Presidential Decree within the maximum of 15/100. |
| Article 74 (Authorization of Management and Disposal Plans) |
| (1) | Upon expiration of the period for filing an application to purchase a building site or unit specified under Article 72, the project implementer shall formulate a management and disposal plan, including the following matters, based on the applications filed to purchase a building site or unit; and shall obtain authorization thereof from the head of the relevant Si/Gun/Gu. The project implementer shall also undergo the same procedure when it intends to amend, suspend or abolish the management and disposal plan: Provided, That the project implementer shall report to the head of the relevant Si/Gun/Gu to modify any of the minor matters specified by Presidential Decree: <Amended on Jan. 16, 2018> |
| 1. | A plan for building sites and units for sale; |
| 2. | Addresses and names of eligible purchasers; |
| 3. | The estimated value of the building site or unit to be sold to each eligible purchaser (including details about housing units under outsourced rental management); |
| 4. | Details and the estimated value of the reserved area, etc. for the following and the method of disposal: Provided, That in cases of item (b), the name and address of the rental business entity selected under Article 30 (1) (if the business entity is a corporation, the name and domicile of the corporation and the name and address of its representative) shall be included: |
| (a) | Units for sale to the general public; |
| (b) | Publicly-funded private rental housing units; |
| (c) | Rental housing units; |
| (d) | Other appurtenant facilities, welfare facilities, etc.; |
| 5. | Details of the land or structure previously owned by each eligible purchaser and the price as at the date the authorization of the project implementation plan was publicly notified (in cases of a structure demolished under Article 81 (3) before the project implementation plan was authorized, the price as at the date the head of the relevant Si/Gun/Gu permits such demolition); |
| 6. | The estimated improvement project costs (including matters concerning the rebuilding charge under the Restitution of Excess Rebuilding Gains Act in cases of a rebuilding project), the costs apportioned to each association member, and the time for paying the apportioned cost; |
| 7. | Details of rights previously held by eligible purchasers, except ownership of the land or structures; |
| 8. | Details of each tenant's rights and the appraised value of such rights for compensating tenants for losses; |
| 9. | Other matters specified by Presidential Decree regarding rights, etc. related to an improvement project. |
| (2) | The head of a relevant Si/Gun/Gu shall notify a person who has filed a report of whether or not to accept it within 20 days from the date of receiving said report under the proviso, with the exception of the subparagraphs, of paragraph (1). <Newly Inserted on Mar. 16, 2021> |
| (3) | Where the Minister of Oceans and Fisheries fails to notify a person who has filed a report of whether to accept it or the extension of handling period pursuant to the statutes or regulations related to civil petition handling within the period prescribed in paragraph (2), the report shall be deemed accepted on the date following the end of such period (referring to the relevant extended handling period in cases of the extension or re-extension of the handling period under the statutes or regulations related to civil petition handling). <Newly Inserted on Mar. 16, 2021> |
| (4) | In implementing an improvement project, property or rights referred to in paragraph (1) 3, 5, or 8 shall be appraised as follows: <Amended on Apr. 7, 2020; Mar. 16, 2021; Jul. 27, 2021> |
| 1. | A price shall be determined by computing the arithmetic mean of the values appraised by the following appraisal corporations, etc., among the appraisal corporations, etc. registered under the Act on Appraisal and Certified Appraisers: Provided, That, the estimated value of the building sites or units for sale and the price of previous plots of land or structures may be determined by agreement between the project implementer and all the owners of a plot of land or structure in order to modify, suspend, or abolish a management and disposal plan: |
| (a) | For a residential environment improvement project or redevelopment project: At least two appraisal corporations, etc. selected and contracted by the head of the relevant Si/Gun/Gu; |
| (b) | For reconstruction project: At least one appraisal business entity selected and contracted by the head of the relevant Si/Gun/Gu and at least one appraisal corporation, etc. selected and contracted following a resolution at the general meeting of the relevant association; |
| 2. | When the head of the relevant Si/Gun/Gu intends to select and contract appraisal corporations, etc. pursuant to subparagraph 1, he or she shall select appraisal corporations, etc. through an objective and transparent process, considering appraisal business entities' capabilities, the number of appraisers in each appraisal corporation, etc., appraisal performance, compliance with laws and regulations, the appropriateness of the appraisal plan, etc. In such cases, matters necessary for the procedure, method, etc. for selecting appraisal business entities shall be prescribed by City/Do ordinance; |
| 3. | When a project implementer intends to have property appraised pursuant to subparagraph 1, it shall request the head of the relevant Si/Gun/Gu to select and contract appraisal corporation, etc.; and shall pre-deposit an amount of money for appraisal fees. After appraisal is completed, the head of the relevant Si/Gun/Gu shall directly pay appraisal fees from the deposited amount and then return the balance to the project implementer. |
| (5) | An association shall notify each association member, in writing, of the matters specified in paragraph (1) 3 through 6 one month before the date of the general meeting to be held to pass a resolution on the matter specified in Article 45 (1) 10. <Amended on Mar. 16, 2021> |
| (6) | Contents of management and disposal plans referred to in paragraph (1), the methods for management and disposal, and other necessary matters shall be prescribed by Presidential Decree. <Amended on Mar. 16, 2021> |
| (7) | Contents of management and disposal plans referred to in the subparagraphs of paragraph (1) and paragraphs (4) through (6) shall apply mutatis mutandis to management and disposal plans formulated by the head of the relevant Si/Gun/Gu himself or herself. <Amended on Mar. 16, 2021> |
| Article 75 (Adjustment of Time Frames for Approving Project Implementation Plans and Management and Disposal Plans) |
| (1) | If the area adjacent to an improvement zone significantly lacks housing or the housing market becomes unstable due to the implementation of an improvement project; or if any event specified by ordinance of the competent Special Metropolitan City, Metropolitan City or Do occurs, the Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor may request the head of the Si/Gun/Gu concerned to adjust the time frames for authorizing a project implementation plan or a management and disposal plan under Article 74, after deliberation by the relevant City/Do Housing Policy Deliberative Committee under Article 9 of the Framework Act on Residence. Upon receipt of a request in such cases, the head of the Si/Gun/Gu concerned shall comply therewith, except in special circumstances, but the adjusted time frames for authorizing a project implementation plan or a management and disposal plan shall not exceed one year from the filing date of the application for authorization. |
| (2) | If the area adjacent to an improvement zone significantly lacks housing or the housing market becomes unstable due to the implementation of an improvement project; or if any event specified by ordinance of the competent Special Self-Governing City or Special Self-Governing Province occurs, the Special Self-Governing City Mayor or Special Self-Governing Province Governor may adjust the time frames for authorizing a project implementation plan or a management and disposal plan under Article 74, after deliberation by the relevant City/Do Housing Policy Deliberative Committee under Article 9 of the Framework Act on Residence. In such cases, the adjusted time frames for authorizing a project implementation plan or a management and disposal plan shall not exceed one year from the filing date of the application for authorization. |
| (3) | Methods and procedures for adjusting the time frames for authorizing a project implementation plan or a management and disposal plan under paragraph (1) and (2) and other necessary matters shall be prescribed by ordinance of the Special Metropolitan City or each Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province. |
| Article 76 (Standards for Formulating Management and Disposal Plans) |
| (1) | Management and disposal plans formulated under Article 74 (1) shall comply with the following standards: <Amended on Oct. 24, 2017; Mar. 20, 2018; Feb. 3, 2022> |
| 1. | The project implementer shall ensure that building sites or structures are proportionately distributed to applicants to purchase a building site or unit and are reasonably used, comprehensively considering the area, special use, environment and other factors of plots of land or structures previously held by such applicants; |
| 2. | The project implementer shall ensure that building sites or structures are developed or constructed in appropriate sizes by increasing the sizes of excessively narrow plots of land or excessively small structures; or by reducing the sizes of excessively wide plots of land or excessively big structures; |
| 3. | If a person acquires an excessively narrow plot of land or excessively small structure or plot of land partitioned after the improvement zone is designated, the project implement may make a cash settlement to the person in return for such plot of land or structure; |
| 4. | If adjusting the size of land is particularly necessary to prevent disasters or hygiene risks, the owners of an excessively narrow plot of land may be compensated by cash or by part of a structure and an undivided share of the land on which such structure stands, in return for such plot of land, to widen the excessively narrow plot of land; |
| 5. | A plan for building sites and units for sale shall be formulated as at the last day of the period for filing an application to purchase a building site or unit under Article 72; |
| 6. | One housing unit shall be supplied to one household or one person who owns one or more houses or one or more plots of land; while only one house shall be supplied to two or more persons who do not belong to one household, if they co-own one house or one plot of land; |
| 7. | Notwithstanding subparagraph 6, housing units may be supplied as follows in the following cases: |
| (a) | If at least two persons co-own one plot of land and the supply of housing units in such cases is otherwise provided by City/Do ordinance, housing units may be supplied as prescribed by the relevant City/Do ordinance; |
| (b) | Any of the following owners of a plot of land or structure may be supplied with as many houses as the number owned by the owner: |
| (i) | An owner of a plot of land or structure in a reconstruction project not implemented in an over-concentration control area: Provided, That the owners of a plot of land or structure, who apply for authorization of a project implementation plan (referring to authorization of the initial project implementation plan) for a reconstruction project in a high-speculation area or an area subject to adjustment designated under Article 63-2 (1) 1 of the Housing Act (hereafter in this Article referred to as "area subject to adjustment"), shall be excluded herefrom; |
| (ii) | The owners of plots of land or structures, who own houses as accommodation or dormitories for employees (including workers employed as public officials); |
| (iii) | The State, a local government, the Korea Land and Housing Corporation or a local government-invested public corporation; |
| (c) | Notwithstanding the proviso of item (b) (i), where several persons hold ownership over a plot of land or structure in an area subject to adjustment or an overheated speculation district, other than an over-concentration control area, by acquiring ownership of such land or structure from one owner of a plot of land or structure before it is designated as an area subject to adjustment or overheated speculation district, one house may be supplied to the transferor and the transferees, respectively; |
| (d) | A person may be supplied with two housing units within the limit of the price referred to in Article 74 (1) 5 or within the limit of the exclusive habitable area of the house previously owned thereby; but the exclusive habitable area of one of the housing units so supplied shall not exceed 60 square meters: Provided, That the housing unit with an area of not more than 60 square meters shall neither be resold (including sale, conveyance as a gift, and all other activities that cause a change in a right or interest, but excluding inheritance) nor arranged for resale, until at least three years before the date immediately following the date transfer of ownership is publicly notified under Article 86 (2); |
| (e) | In cases of a reconstruction project implemented in an over-concentration control area, three housing units may be supplied to one person owning plots of land or structures, within the limit of the number of houses owned by the person: Provided, That this shall not apply to any reconstruction project for which the authorization of a project implementation plan (referring to the authorization of the initial project implementation plan) is applied in a high-speculation area. |
| (2) | The guidelines for formulating management and disposal plans under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
[Paragraph (1) 7 (b) (iv) of this Article remains effective until January 26, 2018 pursuant to Article 2 of the Addenda to the Act No. 14567 (Feb. 8, 2017)]
| Article 77 (Base Date for Determining Rights to Purchase Housing Units or Other Structures) |
| (1) | In any of the following cases, a right to purchase a unit of structure built by implementing an improvement project shall be determined as of the day immediately following the date of public notice under the former part of Article 16 (2) or date the competent Mayor/Do Governor separately specifies after formulating a master plan but before designating and publicly notifying the relevant improvement zone to control speculation (hereafter in this Article referred to as "base date"): <Amended on Jun. 12, 2018> |
| 1. | Where one lot of land is partitioned into several lots; |
| 2. | Where a detached house or a multi-unit house is converted into a multi-household dwelling; |
| 3. | Where a plot of land and a house or any other structure owned by the same person and located on one building site are owned as separate assets by separating such land and house or structure; |
| 4. | Where the number of owners of a plot of land or structure has been increased by constructing a new structure in a vacant lot or by demolishing an existing structure and constructing a multi-household house or any other multi-family housing building. |
| (2) | In separately specifying a base date pursuant to paragraph (1), the competent Mayor/Do Governor shall publish notice of the base date; the grounds for designation; the criteria for determining a right to purchase a unit of structure and other relevant information, in the public gazette of the relevant local government. |
| Article 78 (Procedures for Public Inspection and Approval of Management and Disposal Plans) |
| (1) | A project implementer shall make copies of related documents available to the owners of a plot of land or structure for public inspection and gather their consensus during at least 30 days before applying for the authorization of a management and disposal plan it has formulated under Article 74: Provided, That a modification of any of the minor matters specified by Presidential Decree under the proviso, with the exception of the subparagraphs, of Article 74 (1) requires no procedures for public inspection and gathering opinions from the owners of a plot of land or structure. |
| (2) | The head of the relevant Si/Gun/Gu shall determine whether he or she authorizes a management and disposal plan within 30 days from the date a project implementer applies for authorization of its management and disposal plan and shall notify the project implementer of his or her determination: Provided, That if the head of the relevant Si/Gun/Gu requests a public institution to verify the validity of a management and disposal plan under paragraph (3), he or she shall determine whether he or she authorizes the management and disposal plan within 60 days from the date a project implementer applies for authorization of its management and disposal plan; and shall notify the project implementer of his or her determination. <Amended on Aug. 9, 2017> |
| (3) | In any of the following cases, the head of the relevant Si/Gun/Gu shall request any of the public institutions specified by Presidential Decree to verify the validity of a management and disposal plan. In such cases, the head of the relevant Si/Gun/Gu may require the project implementer to pay expenses incurred in verifying the validity of its management and disposal plan: <Newly Inserted on Aug. 9, 2017> |
| 1. | Where the improvement project cost referred to in Article 74 (1) 6 increases by at least 10/100 of the improvement project cost referred to in Article 52 (1) 12, which shall be at least the percent specified by Presidential Decree; |
| 2. | Where the amount of the charge apportioned to association members referred to in Article 74 (1) 6 increases by at least 20/100 of the total estimated amount of the charge apportioned to each eligible purchaser referred to in Article 72 (1) 2, which shall be at least the percent specified by Presidential Decree; |
| 3. | Where at least 1/5 of association members requests the head of the relevant Si/Gun/Gu to verify the validity of the management and disposal plan within 15 days from the filing date of the application for authorization of the management and disposal plan; |
| 4. | Other cases where the head of the relevant Si/Gun/Gu deems it necessary to verify the validity of the management and disposal plan. |
| (4) | When the head of the relevant Si/Gun/Gu authorizes a management and disposal plan under paragraph (2), he or she shall publish notice of the contents of the plan in the public gazette of the relevant local government. <Amended on Aug. 9, 2017> |
| (5) | When a project implementer intends to make copies of related documents available for public inspection pursuant to paragraph (1) or the head of the relevant Si/Gun/Gu publicly notifies a management and disposal plan under paragraph (4), the project implementer shall notify the owners of a plot of land or structure of the plan for public inspection; and shall give notice to each person who filed an application to purchase a building site or unit of the contents, etc. of the authorized management and disposal plan. <Amended on Aug. 9, 2017> |
| (6) | Paragraphs (1), (4) and (5) shall apply mutatis mutandis where the head of the relevant Si/Gun/Gu directly formulates a management and disposal plan. <Amended on Aug. 9, 2017> |
| Article 79 (Disposal according to Management and Disposal Plans) |
| (1) | Building sites developed and structures built while implementing an improvement project shall be managed and disposed of according to the relevant management and disposal plan. |
| (2) | A project implementer shall supply structures built by implementing an improvement project to the owners of a plot of land or structure according to its management and disposal plan authorized under Article 74. |
| (3) | When a project implementer (or a person who builds houses on a building site supplied under Article 23 (1) 2; hereafter in this paragraph and paragraphs 6 and 7 the same shall apply) builds houses in an improvement zone, he or she may separately determine the conditions of, and methods and procedures for soliciting prospective occupants; the methods, timing and procedures for making payments for purchase (referring to the down payment, intermediate payments and balance); the methods and procedures for housing supply, etc. with approval from the head of the relevant Si/Gun/Gu, within the limits prescribed by Presidential Decree, notwithstanding Article 54 of the Housing Act. |
| (4) | If some lots remain unsold after receiving applications to purchase a building site or unit under Article 72, the project implementer may designate such remaining plots as a reserved area (including structures) or may sell such plots to any person other than an association member or owners of a plot of land or structure. Procedures for publicly announcing building sites or units for sale or for filing applications to purchase a building site or unit and other necessary matters in such cases shall be prescribed by Presidential Decree. |
| (5) | Upon receipt of a request from an association, the Minister of Land, Infrastructure and Transport, the competent Mayor/Do Governor, the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation shall acquire rental housing units built by implementing a redevelopment project. Procedures and methods for acquiring redeveloped rental housing units, the acquisition price and other necessary matters in such cases shall be prescribed by Presidential Decree. |
| (6) | When a project implementer builds rental housing units by implementing an improvement project, it may separately determine guidelines for conditions of lease, including tenant eligibility requirements; the method for selecting tenants; a security deposit and rents; guidelines for preferential sale to non-homeowner householders, etc. with the approval of the head of the relevant Si/Gun/Gu, within the limitations prescribed by Presidential Decree, notwithstanding Articles 42 and 44 of the Special Act on Private Rental Housing and Articles 48, 49 and 50-3 of the Special Act on Public Housing: Provided, That the transferee shall separately determine such guidelines, within the limitations prescribed by Presidential Decree, if the tenants to be selected are not the initial tenants of redeveloped rental housing units. |
| (7) | A project implementer may supply any person other than the persons eligible to be supplied with housing units under paragraphs (2) through (6) with the housing units remaining after supplying housing units to the persons eligible to be supplied with housing units under paragraphs (2) through (6). |
| (8) | Article 54 of the Housing Act shall apply mutatis mutandis to the method, procedure, etc. for supplying houses under paragraphs (7): Provided, That a project implementer may solicit prospective occupants, even before a court judgment in favor of the project implementer becomes final and conclusive, notwithstanding Article 54 of the Housing Act, if the project implementer deposits compensation money for losses in the competent court after winning a lawsuit seeking sale of property under Article 64 to indemnify occupants from losses and secures the structures for sale; but the project implementer shall acquire ownership in the building sites for the housing construction project before filing an application for authorization for completion of the project under Article 83. |
| Article 80 (Supply of Undivided Co-Owned Houses) |
| (1) | If a project implementer is the Korea Land and Housing Corporation or a local government-invested public corporation, it may supply houses on condition that eligible purchasers and the project implementer co-own houses (hereinafter referred to as "undivided co-owned house"). The size of an undivided co-owned house supplied in such cases, the period of co-ownership, eligible purchasers and other necessary matters shall be prescribed by Presidential Decree. |
| (2) | Upon request by a tenant in an improvement zone and by a person who owns a plot of land or a house with not more than the area specified by Presidential Decree, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation may convert some rental housing units acquired under Article 79 (5) into land-leasehold housing units under the Housing Act to supply the housing units to the tenant and person. |
| Article 81 (Discontinuance of Exercise of Usufruct on Structures and Demolition of Structures) |
| (1) | If authorization of a management and disposal plan is publicly notified under Article 78 (4), the owners and other right holders, including holders of a surface right, a right to lease on a deposit basis or a leasehold right, over a previous plot of land or a previous structure may not use or make profit from previous plots of land or structures until transfer of ownership is publicly notified under Article 86: Provided, That this shall not apply in the following cases: <Amended on Aug. 9, 2017> |
| 1. | Where a person obtains consent from the project implementer; |
| (2) | A project implementer shall demolish existing structures after obtaining authorization of its management and disposal plan under Article 74 (1). |
| (3) | In either of the following cases, a project implementer may demolish an existing structure with the consent of its owner and permission from the head of the relevant Si/Gun/Gu, notwithstanding paragraph (2). In such cases, the demolition of a structure shall not affect any rights and obligations of the owner of the relevant plot of land or structure: |
| 2. | Where a crime is likely to occur due to the concentration of deserted or unoccupied houses. |
| (4) | When a project implementer demolishes existing structures pursuant to paragraph (2), the head of the relevant Si/Gun/Gu may restrict the demolition of structures at the following relevant time: |
| 1. | Before sunrise and after sunset; |
| 2. | When the Administrator of the Korea Meteorological Administration issues a severe weather alert under Article 13 of the Weather Act because a serious disaster is likely to occur in the relevant area due to a heavy rain, heavy snow, storm surge, seismic sea wave, typhoon, strong wind, wind wave, cold wave or other event; |
| 4. | The time the head of the relevant Si/Gun/Gu recognizes as similar to those specified in subparagraphs 1 through 3. |
| Article 82 (Performance Bonds) |
| (1) | When an association selects any person other than the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation as the contractor to implement an improvement project (including where the co-implementer under Article 25 works as the contractor), the contractor shall submit a performance bond issued by an institution specified by Ordinance of the Ministry of Land, Infrastructure and Transport, to guarantee performance of the construction project (referring to a guarantee that the guarantor shall assume the obligation to perform the contract on behalf of the contractor; or shall pay the amount specified by the project implementer at not less than the percent specified by Presidential Decree, up to a maximum of 50/100 of the total contract amount, if the contractor fails or omits to perform its obligations under the project contract. <Amended on Jun. 12, 2018> |
| (2) | Upon receipt of a report on the commencement of a construction project under Article 21 of the Building Act, the head of the relevant Si/Gun/Gu shall ascertain whether the performance bond referred to in paragraph (1) has been submitted. |
SECTION 6 Measures Following Completion of Construction Works
| Article 83 (Approval of Completion of Improvement Projects) |
| (1) | When a project implementer who is not the head of the relevant Si/Gun/Gu completes construction works of an improvement project, it shall obtain authorization for completion of the project from the head of the relevant Si/Gun/Gu according to the method and procedure prescribed by Presidential Decree. |
| (2) | Upon receipt of an application for authorization for completion of a project under paragraph (1), the head of the relevant Si/Gun/Gu shall conduct a completion inspection without delay. If necessary for conducting a completion inspection efficiently in such cases, the head of the relevant Si/Gun/Gu may request a related administrative agency, public institution, research institute or any other specialized institution or organization to conduct the completion inspection. |
| (3) | If the head of the relevant Si/Gun/Gu concludes, as a result of a completion inspection conducted under the former or latter part of paragraph (2), that an improvement project has been completed according to the authorized project implementation plan, the head of the relevant Si/Gun/Gu shall grant authorization for completion of the project and publish notice of the completion of the project in the public gazette of the relevant local government. |
| (4) | When construction works for an improvement project implemented directly by the head of the relevant Si/Gun/Gu are completed, the head of the relevant Si/Gun/Gu shall publish notice of the completion in the public gazette of the relevant local government. |
| (5) | If a completed structure can be used without any problem even before such completion is authorized under paragraph (1); or if such structure meets the criteria prescribed by Presidential Decree, the head of the relevant Si/Gun/Gu may permit the project implementer to allow prospective occupants to use the completed structure: Provided, That, if the head of the relevant Si/Gun/Gu is a project implementer, he or she may allow prospective occupants to use the completed structure. |
| (6) | Procedures and methods for publicly notifying the completion of construction works under paragraphs (3) and (4) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 84 (Cancellation of Improvement Zones Following Approval of Completion) |
| (1) | The designation of an improvement zone shall be deemed canceled on the day immediately following the date the authorization for completion is publicly notified under Article 83 (referring to the time transfer of ownership is publicly notified, where a management and disposal plan shall be formulated). In such cases, the relevant local government shall manage the zone according to the district-unit plan formulated under the National Land Planning and Utilization Act. |
| (2) | Canceling an improvement zone under paragraph (1) does not affect the existence of the relevant association. |
| Article 85 (Deemed Authorization or Permission Following Completion of Construction Works) |
| (1) | When completion of construction works is authorized or publicly notified under Article 83 (1) through (4), the matters on which the head of the relevant Si/Gun/Gu has consulted with the heads of related administrative agencies regarding a completion inspection, authorization for completion, pre-use inspection, approval of use, etc. (hereinafter referred to as "completion inspection, authorization, etc.") according to the authorization, permission, etc. deemed granted or issued under Article 57 shall be deemed to have passed and obtained the relevant completion inspection, completion authorization, etc. |
| (2) | If a project implementer who is not the head of the relevant Si/Gun/Gu wishes to have the completion inspection, authorization, etc. deemed completed or issued under paragraph (1), it shall submit the documents specified by relevant statutes, along with an application for authorization for completion of construction works under Article 83 (1). <Amended on Jun. 9, 2020> |
| (3) | If a project involves matters eligible for deemed completion inspection, authorization, etc. according to the authorization, permission, etc. deemed granted or issued under Article 57 when the head of the relevant Si/Gun/Gu intends to authorize or publicly notify completion of project construction works under Article 83 (1) through (4), the head of the relevant Si/Gun/Gu shall consult on such matters with the heads of related administrative agencies. |
| (4) | Upon receipt of a request for consultation under paragraph (3), the head of the related administrative agency shall submit his or her opinions within 10 days from the date of receiving such request. <Newly Inserted on Mar. 16, 2021> |
| (5) | Where the heads of related administrative agencies fail to submit their opinions within the period prescribed in paragraph (4) (where the period for reply is extended pursuant to Article 20 (2) of the Civil Petitions Treatment Act, referring to such extended period), consultation shall be deemed to have been provided. <Newly Inserted on Mar. 16, 2021> |
| (6) | Article 57 (6) shall apply mutatis mutandis to the deemed completion inspection, authorization, etc. under paragraph (1). <Amended on Mar. 16, 2021> |
| Article 86 (Public Notice of Transfer) |
| (1) | When the completion of construction works is publicly notified under Article 83 (3) or (4), the project implementer shall conduct a boundary survey without delay; complete the procedures for partitioning the land; notify persons entitled to a building site or structure of the matters specified in the management and disposal plan; and then transfer the ownership of such building site or structure to such persons: Provided, That, if necessary for implementing an improvement project efficiently, the ownership of the completed section may be transferred to persons entitled to a building site or structure after obtaining authorization for completion, even before construction works for the improvement project are fully completed. |
| (2) | When a project implementer intends to transfer the ownership of a building site or structure under paragraph (1), it shall publish notice of the details of the transfer in the public gazette of the relevant local government; and shall report the same to the head of the relevant Si/Gun/Gu. In such cases, the person entitled to the building site or structure shall acquire ownership therein on the day immediately following the date of such public notice. |
| Article 87 (Confirmation of Rights in Building Sites and Structures) |
| (1) | Where the ownership of a building site or structure is transferred to a person entitled thereto pursuant to Article 86 (2), any registered right created regarding a plot of land or structure previously owned by the person, such as a surface right, right to lease on a deposit basis, mortgage, leasehold right, provisionally registered security right or provisional seizure, and leasehold right that satisfies the requirements provided for in Article 3 (1) of the Housing Lease Protection Act shall be deemed created regarding the building site or unit, ownership in which is transferred. |
| (2) | A building site or structure sold to the owner of a plot of land or structure, among building sites or structures acquired under paragraph (1), shall be deemed land replotted under Article 40 of the Urban Development Act. |
| (3) | The reserved land referred to in Article 79 (4) and the building sites or structures sold to the general public shall be deemed the reserved land or land allotted by the authorities in recompense for development outlay under Article 34 of the Urban Development Act. |
| Article 88 (Registration Procedures and Restrictions on Changes in Rights) |
| (1) | When transfer of a building site or structure is publicly notified under Article 86 (2), the project implementer shall without delay request or apply for registration of the building site or structure to the competent district branch court or registry. |
| (2) | Matters necessary for registering building sites or structure under paragraph (1) shall be prescribed by the Supreme Court Regulations. |
| (3) | Any right, including a mortgage, shall not be registered during the period from the date transfer of ownership is publicly notified under Article 86 (2) to the time such transfer is registered under paragraph (1). |
| Article 89 (Settlement Money) |
| (1) | If there is a difference between the price of the plot of land or structure previously owned by a person who has purchased a building site or unit and the price of the building site or unit, the project implementer shall collect the amount equivalent to the difference (hereinafter referred to as "settlement money") from the person or pay the settlement money to such person after transfer of ownership of the building site or unit is publicly notified under Article 86 (2). |
| (2) | Notwithstanding paragraph (1), collection and payment in installments are stipulated by articles of association, etc. or are provided for separately by resolution of the general meeting, the project implementer may collect or pay the settlement money in installments at a specified interval until transfer of ownership is publicly notified under Article 86 (2) after the management and disposal plan is authorized. |
| (3) | When a project implementer appraises a plot of land or structure previously owned by a person and appraises a building site or unit sold to such person for the purpose of paragraph (1) or (2), it shall consider the size, location, purpose, special use of the plot of land or structure, the improvement project cost, etc. |
| (4) | Methods and procedures for appraising prices under paragraph (3) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 90 (Methods for Collecting Settlement Money) |
| (1) | If a person obligated to pay settlement money fails to do so, the project implementer, if it is the head of the relevant Si/Gun/Gu, may collect (or collect in installments; hereafter in this Article the same shall apply) it in the same manner as delinquent local taxes are collected, while the project implementer, if it is not the head of the relevant Si/Gun/Gu, may entrust the head of the relevant Si/Gun/Gu with the collection of settlement money. Article 93 (5) shall apply mutatis mutandis in such cases. |
| (2) | If a person entitled to settlement money under Article 89 (1) is unable to or refuses to receive it, the project implementer may deposit the settlement money in the competent court. |
| (3) | The right to receive or collect settlement money (including payment in installments) shall lapse, if it is not exercised within five years from the day immediately following the date transfer of ownership is publicly notified under Article 86 (2). |
| Article 91 (Subrogation of Mortgage) |
A mortgagee of a plot of land or structure in an improvement zone may exercise the mortgage by seizing such plot of land or structure before the project implementer pays settlement money to the owner of the mortgaged plot of land or structure.
CHAPTER IV APPORTIONMENT OF COSTS
| Article 92 (Principle of Cost Apportionment) |
| (1) | Except as otherwise expressly provided in this Act or any other statute or regulation, the improvement project cost shall be borne by each project implementer. |
| (2) | The cost of constructing the following facilities according to the improvement plan for the improvement project implemented by a project implementer who is not the head of the relevant Si/Gun/Gu may be fully or partially borne by the head of the relevant Si/Gun/Gu: |
| 1. | Major fundamental infrastructure and common facilities prescribed by Presidential Decree, among urban/Gun planning facilities; |
| 2. | Temporary housing facilities. |
| Article 93 (Funding of Costs) |
| (1) | A project implementer may impose the difference between the cost it bears pursuant to Article 92 (1) and the revenue generated in the course of implementing the relevant improvement project on the owners of a plot of land or structure and collect the difference from such owners. |
| (2) | If the owner of a plot of land or structure is negligent in paying charges imposed under paragraph (1), the project implementer may impose and collect a past due charge. <Amended on Jun. 9, 2020> |
| (3) | Matters necessary for imposing and collecting the charge and past due charges under paragraphs (1) and (2) shall be stipulated by articles of association, etc. |
| (4) | If any person defaults on charges or past due charges, the project implementer, if it is not the head of the relevant Si/Gun/Gu, may entrust the imposition and collection of such charges to the head of the relevant Si/Gun/Gu. |
| (5) | If the head of the relevant Si/Gun/Gu is entrusted with the imposition and collection of charges pursuant to paragraph (4), he or she may impose and collect the charge in the same manner as delinquent local taxes are collected. In such cases, the project implementer shall pay the equivalent of 4/100 of the collected amount to the head of the relevant Si/Gun/Gu. |
| Article 94 (Costs Borne by Managers of Fundamental Infrastructure) |
| (1) | If a manager of fundamental infrastructure significantly benefits from an improvement project implemented by the head of the relevant Si/Gun/Gu, the head of the relevant Si/Gun/Gu may require the manager of the fundamental infrastructure to apportion the improvement project costs as negotiated with such manager according to the method and procedure prescribed by Presidential Decree. |
| (2) | When a project implementer builds a utility tunnel to install systems for supplying electricity, gas, etc. to the area in which an improvement project is implemented, it may require persons obligated to install the systems to be accommodated in the utility tunnel according to other statutes or regulations to bear the cost of building the utility tunnel. |
| (3) | The apportionment ratio of the cost under paragraph (2), the method for apportioning the cost, and matters necessary for managing utility tunnels shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 95 (Subsidies and Loans) |
| (1) | The State or a City/Do may provide a subsidy or loan to the head of a Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation to partially cover expenses for conducting basic surveys and for constructing fundamental infrastructure, temporary housing facilities and common facilities in a residential environment improvement project, specified by Presidential Decree as necessary for implementing an improvement project by the head of the Si/Gun/Gu, the Korea Land and Housing Corporation or the local government-invested public corporation. In such cases, the State or a City/Do may provide a subsidy or loan preferentially for the following projects: |
| 1. | A residential environment improvement project implemented by the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation in any of the following areas: |
| (a) | An improvement zone, etc. canceled under Article 20 or 21; |
| 2. | A redevelopment project implemented solely by the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation in an area specified by Presidential Decree, which is an undeveloped area formed with indigent urban dwellers relocated by the Sate or a local government. |
| (2) | Where the Korea Land and Housing Corporation or a local government-invested public corporation, as a project implementer, constructs the fundamental infrastructure, common facilities and temporary housing facilities referred to in paragraph (1) regarding a residential environment improvement project it implements, the head of the relevant Si/Gun/Gu shall fully or partially subsidize the Korea Land and Housing Corporation or the local government-invested public corporation to cover the construction cost. |
| (3) | The State or a local government may provide a subsidy or loan or arrange a loan to partially cover the cost of an improvement project implemented by a project implementer who is not the head of the relevant Si/Gun/Gu. |
| (4) | Where the State or a local government provides a subsidy or loan for the cost necessary for improvement projects under paragraphs (1) and (2), it may give priority to provide a subsidy or loan for an improvement project implemented by the circulative method provided for in Article 59 (1). In such cases, the State or a local government may provide a subsidy or loan to cover some of the following costs and expenses: <Amended on Jun. 12, 2018> |
| 1. | Construction cost of housing units for circulative dwelling; |
| 2. | Remodeling cost of housing units for circulative dwelling for the purposes of enhancing energy performance and improving energy efficiency by reinforcing thermal insulation and replacing windows and doors; |
| 3. | Expenses for the maintenance of unoccupied houses. |
| (5) | The State may provide a subsidy or loan for a local government, the Korea Land and Housing Corporation or a local government-invested public corporation to fully or partially cover the following costs and expenses: |
| 1. | The costs and expenses, such as the costs of constructing housing units and maintenance expenses for unoccupied houses, where public rental housing units owned by the Korea Land and Housing Corporation or a local government-invested public corporation are provided to an association as housing units for circulative dwelling pursuant to Article 59 (2); |
| 2. | The costs for acquiring rental housing units, where a Mayor/Do Governor, the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation acquires redeveloped rental housing units pursuant to Article 79 (5). |
| (6) | The State or a local government may provide a subsidy or loan for persons supplied with land-leasehold housing units under Article 80 (2) to fully or partially cover the costs of such housing units. |
| Article 96 (Construction of Fundamental Infrastructure) |
A project implementer shall construct fundamental infrastructure (including common facilities in cases of a residential environment improvement project) in an improvement zone after consulting with the head of the relevant local government thereon.
| Article 97 (Vesting of Ownership of Fundamental Infrastructure and Land) |
| (1) | Where the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation constructs new fundamental infrastructure or any fundamental infrastructure replacing existing fundamental infrastructure, by implementing an improvement project, the ownership of the existing fundamental infrastructure shall vest gratuitously in the project implement, notwithstanding the State Property Act and the Public Property and Commodity Management Act, while the ownership of the newly constructed fundamental infrastructure shall vest gratuitously in the State or a local government, whoever is responsible for managing the infrastructure. |
| (2) | The ownership of new fundamental infrastructure constructed by implementing an improvement project by any project implementer, other than the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, shall be vested gratuitously in the State or a local government, whoever is responsible for managing the infrastructure; while the ownership of fundamental infrastructure owned by the State or a local government but fell into disuse due to the implementation of an improvement project shall be transferred to the relevant project implementer within the equivalent of the costs of constructing fundamental infrastructure by the project implementer. |
| (3) | Roads classifiable as fundamental infrastructure referred to in paragraphs (1) and (2) are as follows: |
| 3. | Roads built under the Urban Development Act or any other statute and owned by the State or a local government; |
| 4. | Other sites provided for public traffic, among public property managed under the Public Property and Commodity Management Act. Specific criteria for such sites, including the special use, size and functions, in such cases may be prescribed by City/Do ordinance. |
| (4) | When the head of the relevant Si/Gun/Gu intends to implement an improvement project or authorize the implementation of an improvement project, which includes matters related to the vesting and transfer of the ownership of fundamental infrastructure under paragraphs (1) through (3), he or she shall seek consensus from the relevant management authority. The same procedures shall apply where it is intended to amend such authorization. |
| (5) | A project implementer shall notify the relevant management authority of the categories and subcategories of the fundamental infrastructure, the ownership of which shall vest in the management authority, and the property, ownership in which shall vest in or be transferred to the project implementer, under paragraphs (1) through (3), before completing the relevant improvement project; and the ownership in such fundamental infrastructure shall be deemed to vest in the State or a local government or to vest in or transferred to the project implementer as at the time the notice of authorization for completion is given to the management authority after the completion of the improvement project is authorized. |
| (6) | In the case of registering the fundamental infrastructure referred to in paragraph (5), the certificate of authorization to implement an improvement project; and the certificate of authorization of completion (referring to the public notice of authorization of a project implementation plan under Article 50 (9) and the public notice of completion of construction works under Article 83 (4), if the head of the relevant Si/Gun/Gu directly implements an improvement project) shall substitute for any document certifying the cause of registration under the Registration of Real Estate Act. <Amended on Jun. 9, 2020; Mar. 16, 2021> |
| (7) | In cases of the fundamental infrastructure fell into disuse due to the implementation of an improvement project under paragraph (1) or (2) and owned by the State or a local government, the project implementer is exempt from rents for such fundamental infrastructure during the period for which it implements the improvement project. |
| Article 98 (Disposal of State or Public Property) |
| (1) | If a project implementation plan that the head of the relevant Si/Gun/Gu intends to authorize or directly formulates under Article 50 or 52 includes matters regarding the disposal of State or public property, the head of the relevant Si/Gun/Gu shall consult beforehand with the relevant management authority. In such cases, if it is not clear who the management authority for certain property is, the Minister of Land, Infrastructure and Transport shall be deemed the management authority for roads, ditches, etc.; the Minister of Environment for rivers; and the Minister of Economy and Finance for any property other than the aforesaid. <Amended on Dec. 31, 2020; Jan. 5, 2021> |
| (2) | Upon receipt of a request for consultation under paragraph (1), the management authority shall present its opinion within 20 days. |
| (3) | No State or public property in an improvement zone shall be sold or transferred for any purpose other than the relevant improvement project. |
| (5) | Notwithstanding the State Property Act, the Public Property and Commodity Management Act and other statutes or regulations regarding the management and disposal of State or public land, the previous use of the State or public property that may be sold or leased preferentially to others under paragraph (4) shall be deemed to be discontinued on the date the authorization of the relevant project implementation plan is publicly notified. |
| (6) | The State or public property to be sold preferentially for an improvement project under paragraph (4) shall be appraised as at the date the authorization of the relevant project implementation plan is publicly notified; and the sale price of such property in cases of a residential environment improvement project shall be 80/100 of the appraised value: Provided, That matters regarding the state or public land for which no sale and purchase agreement has been executed within three years from the date the authorization of the relevant project implementation plan is publicly notified shall be prescribed by the State Property Act or the Public Property and Commodity Management Act. |
| Article 99 (Lease of State or Public Property) |
| (1) | Where a local government, the Korea Land and Housing Corporation or a local government-invested public corporation builds rental housing in a residential environment improvement zone or redevelopment zone (referring to an improvement zone in which a redevelopment project is implemented; hereinafter the same shall apply), the local government, the Korea Land and Housing Corporation or the local government-invested public corporation may lease State or public land during the period determined through consultation with the management authority for State or public land, notwithstanding Article 46 (1) of the State Property Act or Article 31 of the Public Property and Commodity Management Act. |
| (2) | Notwithstanding Article 18 (1) of the State Property Act or Article 13 of the Public Property and Commodity Management Act, the head of the relevant Si/Gun/Gu may permit a project implementer to construct multi-family housing buildings and other permanent facilities on the State or public land leased under paragraph (1). Upon expiration of the lease term of relevant facilities in such cases, the project implementer shall donate the multi-family housing buildings or facilities to the management authority of State or public land, restore the relevant land to the original state; or shall purchase the land from the management authority of State or public land. |
| Article 100 (Exemption from User Fees for Common Facilities) |
| (1) | Where the head of a local government permits a person to use a common facility in a residential environment improvement zone pursuant to Article 20 of the Public Property and Commodity Management Act for public interests, such as promoting neighborhood communities, the head of the local government may exempt users from fees, notwithstanding Article 22 of that Act. |
| (2) | The criteria for public interests under paragraph (1), persons exempt from user fees and other necessary matters shall be prescribed by City/Do ordinance. |
| Article 101 (Gratuitous Transfer of State or Public Land) |
| (1) | The previous use of the land owned by the State or a local government in any of the following zones shall be deemed discontinued on the date the authorization of the relevant project implementation plan is publicly notified under Article 50 (9); and such land shall be gratuitously transferred to the relevant project implementer, notwithstanding the State Property Act, the Public Property and Commodity Management Act, and other statutes or regulations regarding the management and disposal of State or public land: Provided, That this shall not apply to the administrative property provided for in Article 6 (2) of the State Property Act or the administrative property provided for in Article 5 (2) of the Public Property and Commodity Management Act and the land for which the State or a local government has received partial payment under a transfer contract as at the date the designation of the relevant project implementation zone is publicly notified: <Amended on Mar. 16, 2021> |
| 1. | A residential environment improvement zone; |
| 2. | A redevelopment zone specified by Presidential Decree, which is an undeveloped area formed with indigent urban dwellers relocated by the State or a local government (notwithstanding the main clause, with the exception of the subparagraphs, of this paragraph, State land shall be excluded from the property to be gratuitously transferred; while public land may be transferred only where the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation solely serves as a project implementer). |
| (2) | Deleted. <Aug. 10, 2021> |
| (3) | No revenue generated by using and making profit from, or disposing of land gratuitously transferred under paragraph (1) shall be used for any purpose other than the residential environment improvement project or redevelopment project. |
| (4) | The head of the relevant Si/Gun/Gu shall consult with the State or a local government that owns or manages State or public land to be gratuitously transferred under paragraph (1). |
| (5) | Matters necessary for managing and disposing of land gratuitously transferred to a project implementer shall be prescribed by ordinance of the relevant City/Do or implementation rules of the Korea Land and Housing Corporation or a local government-invested public corporation with the approval of from the Minister of Land, Infrastructure and Transport. |
CHAPTER V PUBLIC REDEVELOPMENT PROJECTS AND PUBLIC RECONSTRUCTION PROJECTS
| Article 101-2 (Designation and Public Notice of Proposed Public Redevelopment Project Zones) |
| (1) | The Authority to designate improvement zones may designate a zone in which a public redevelopment project is to be promoted as a proposed public redevelopment project zone, to prevent any uneconomical conduct of construction and inflow of speculative demand and to formulate a reasonable project plan. In such cases, Article 16 shall apply mutatis mutandis to procedures for the designation and public notice of a proposed public redevelopment project zone. |
| (2) | The Authority to formulate improvement plans, or the Korea Land and Housing Corporation or a local government-invested public corporation may apply for the designation of a proposed public redevelopment project zone to the Authority to designate improvement zones. In such cases, the Korea Land and Housing Corporation or a local government-invested public corporation shall file an application through the Authority to formulate improvement plans. |
| (3) | A person who intends to engage in activities provided in any of the subparagraphs of Article 19 (7) or paragraph (8) of that Article in a proposed public redevelopment zone shall obtain permission from the head of the relevant Si/Gun/Gu. The same shall apply to changes of the permitted matters. |
| (4) | Notwithstanding Article 77, if a structure allotted for sale in a proposed public redevelopment project zone falls under any subparagraph of Article 77 (1), the right to purchase such structure shall be calculated as of the day following the date a proposed public redevelopment zone is designated and publicly notified or such date prior to the designation and public notice of a proposed public redevelopment project zone as separately determined by the competent Mayor/Do Governor to restrain speculation. In such cases, Article 77 (2) shall apply mutatis mutandis where the Mayor/Do Governor separately determines the cut-off date for the rights to purchase a structure. |
| (5) | If a proposed public redevelopment project zone is not designated as an improvement zone for a public redevelopment project or if the implementer of the public redevelopment project is not designated within two years after the date a proposed public redevelopment project zone is designated and publicly notified, the Authority to designate improvement zones shall revoke the designation of the proposed public redevelopment project zone on the day following the second anniversary: Provided, That the Authority to designate improvement zones may extend the designation of a proposed public redevelopment project zone only once by up to one year. |
| (6) | Matters necessary for the designation of a proposed public redevelopment project zone under paragraph (1) and the application for designation under paragraph (2), and the procedures therefor shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 101-3 (Designation of Improvement Zones for Public Redevelopment Projects) |
| (1) | Notwithstanding Article 8 (1), the Authority to designate improvement zones may designate an improvement zone by determining an improvement plan for a public redevelopment project without formulating or amending a master plan. |
| (2) | The Authority to formulate improvement plans may formulate an improvement plan under the premise that a public redevelopment project will be implemented, and may file an application for the designation of an improvement zone for the public redevelopment project with the Authority to designate improvement zones. In such cases, the implementer of a public redevelopment project who intends to implement a public redevelopment project may propose the formulation of an improvement plan for the public redevelopment project to the Authority to formulate improvement plans. |
| (3) | If a public redevelopment project implementer is not designated by the day on which one year elapses from the date the Authority to designate improvement zones for a public redevelopment project has designated and publicly notified an improvement zone, the Authority to designate improvement plans shall cancel the designation of the improvement zone for the public redevelopment project on the day following the first anniversary of the date of such designation and public notice: Provided, That the Authority to designate improvement zones may extend the designation of an improvement zone for a public redevelopment project only once by up to one year. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 101-4 (Special Cases concerning Designation of Proposed Public Redevelopment Project Zones and Improvement Zones for Public Redevelopment Projects and Public Reconstruction Projects) |
| (1) | A local urban planning committee or an urban renewal committee may have subcommittees to deliberate on matters necessary for the designation of a proposed public redevelopment project zone or an improvement zone for a public redevelopment project or public reconstruction project. In such cases, deliberation by a subcommittee shall be deemed deliberation by a local urban planning committee or an urban renewal committee. |
| (2) | When the Authority to designate improvement zones publicly notifies the designation or change of an improvement zone for a public redevelopment project or a public reconstruction project, the formulation and change of a master plan under Article 7, the designation or change of an urban renewal acceleration district under Article 5 of the Special Act on the Promotion of Urban Renewal, and the determination or change of an urban renewal acceleration plan under Article 12 of that Act shall be deemed publicly notified. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 101-5 (Relaxation of Floor Area Ratios for Public Redevelopment Projects and Construction Ratios of Houses Therefor) |
| (1) | Notwithstanding Article 78 of the National Land Planning and Utilization Act and ordinance of a local government, where a public redevelopment project implementer implements a public redevelopment project (including a public redevelopment project implemented in an urban renewal acceleration district under subparagraph 1 of Article 2 of the Special Act on the Promotion of Urban Renewal), he or she may develop at a floor area ratio of up to 120/100 of the statutory maximum floor area ratio (hereinafter referred to as "surplus floor area ratio exceeding the statutory limit"), subject to deliberation by the local urban planning committee and the urban renewal committee. |
| (2) | Notwithstanding Article 54, the implementer of a public redevelopment project shall construct housing units of the national standard housing size in an area prescribed by City/Do ordinance, within a range corresponding to at least 20/100 but not more than 50/100 of the floor area ratio calculated by deducting the floor area ratio specified in the improvement plan from the surplus floor area ratio exceeding the statutory limit, and shall supply them to the transferee: Provided, That this shall not apply where an improvement project under Article 24 (4), 26 (1) 1, or 27 (1) 1 is implemented. |
| (3) | Article 55 shall apply mutatis mutandis to the methods of supplying and transferring housing units of the national standard housing size under paragraph (2). |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 101-6 (Relaxation of Floor Area Ratios for Public Reconstruction Projects and Housing Construction Ratios Therefor) |
| (1) | An improvement zone for a public reconstruction project may obtain a floor area ratio of up to the upper limit of the floor area ratio applicable to the relevant zone by deeming that such zone is determined and publicly notified, on the date of designation and public notice of the relevant improvement zone, as an area prescribed by Presidential Decree, from among the areas determined by subdividing a residential area pursuant to Article 36 (1) 1 (a) or (2) of the National Land Planning and Utilization Act: Provided, That this shall not apply in the following cases: |
| 2. | If the head of the relevant Si/Gun/Gu finds it necessary for a public reconstruction project to maintain part of the relevant improvement zone as the current special-use zone or to change the location of part of the improvement zone within the limits of the same area and formulates an improvement plan by reflecting such findings; |
| 3. | If the head of the relevant Si/Gun/Gu formulates an improvement plan providing for the matters specified in Article 9 (1) 10 (c). |
| (2) | Notwithstanding Article 54 (4), where the public reconstruction project implementer implements a public reconstruction project (including a public reconstruction project implemented in an urban renewal acceleration district defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Urban Renewal), he or she shall construct housing units of the national standard housing size in an area prescribed by City/Do ordinance, which is determined in consideration of the size of increase in the number of housing units, financial conditions of an improvement zone for a public reconstruction project, and other factors, within a range corresponding to at least 40/100 but not more than 70/100 of the floor area ratio calculated by deducting the floor area ratio specified in the improvement plan from the relaxed floor area ratio pursuant to paragraph (1), and shall supply them to the transferee. |
| (3) | The supply price of housing units referred to in paragraph (2) shall be equal to such standard construction cost of publicly-constructed rental housing as publicly notified by the Minister of Land, Infrastructure and Transport under Article 50-4 of the Special Act on Public Housing; and the supply price of housing units acquired for purposes of sale under the proviso of paragraph (4) shall be the construction costs for basic type publicly notified by the Minister of Land, Infrastructure and Transport under Article 57 (4) of the Housing Act. In such cases, the land appurtenant to the housing units shall be deemed donated to the transferee. |
| (4) | Article 55 shall apply mutatis mutandis to the methods of supplying and transferring housing units of the national standard housing size under paragraph (2): Provided, That a transferee may sell housing units corresponding to the ratio prescribed by Presidential Decree, among housing units supplied by the public reconstruction project implementer, under Article 48 of the Special Act on Public Housing. |
| (5) | Notwithstanding the latter part of paragraph (3), a transferee of housing units under the proviso of paragraph (4) shall acquire the land appurtenant to such housing units at the price prescribed by Presidential Decree within the range of at least 50/100 of the appraised price. |
[This Article Newly Inserted on Apr. 13, 2021]
| Article 101-7 (Integrated Deliberation on Project Implementation Plans for Public Redevelopment Projects and Public Reconstruction Projects) |
| (1) | The Authority to designate improvement zones may comprehensively examine and deliberate on the following matters related to the authorization of a project implementation plan of a public redevelopment project or a public reconstruction project (hereinafter referred to as "integrated deliberation"): |
| 1. | Matters regarding the construction of buildings and the designation of special building zones under the Building Act; |
| 2. | Matters regarding deliberation on landscape under the Landscape Act; |
| 8. | Other matters submitted by the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of the Si/Gun/Gu for integrated deliberation, as deemed necessary. |
| (2) | Where an implementer of a public redevelopment project or a public reconstruction project implementer files an application for an integrated deliberation, such application shall be accompanied by documents related to the subparagraphs of paragraph (1). In such cases, where necessary to efficiently conduct an integrated deliberation, the Authority to designate improvement zones may require an applicant to submit an application within a specified deadline for submission. |
| (3) | Where the Authority to designate improvement zones conducts an integrated deliberation, he or she shall do so by establishing a joint committee comprised of members who belong to any of the following committees and are recommended by the chairperson of the relevant committee, public officials of a local government to which the Authority to designate improvement zones belongs, and public officials of a local government to which the person with the Authority to authorize a project implementation plan under Article 50. In such cases, the composition of the integrated deliberation committee and methods and procedures for integrated deliberation shall be prescribed by Presidential Decree: |
| 4. | A local urban planning committee; |
| 6. | An urban renewal committee (limited to cases where an improvement zone for a public redevelopment project or a public reconstruction project is located in an urban renewal acceleration district); |
| 9. | Relevant committees authorized to deliberate on the matters referred to in paragraph (1) 8. |
| (4) | The head of the relevant Si/Gun/Gu shall authorize a project implementation plan reflecting the findings of the integrated deliberation, unless there is a compelling reason not to do so. |
| (5) | Where an integrated deliberation is conducted, it shall be deemed that the matters referred to in the subparagraphs of paragraph (1) have undergone review, deliberation, examination, consultation, adjustment, or adjudication. |
[This Article Newly Inserted on Apr. 13, 2021]
CHAPTER V MANAGEMENT BUSINESS SPECIALIZED IN IMPROVEMENT PROJECTS
| Article 102 (Registration of Management Business Specialized in Improvement Projects) |
| (1) | A person who intends to engage in business activities for the following matters upon entrustment by a promoters' committee or a project implementer or to advise on such matters shall meet the standards prescribed by Presidential Decree for capital, technical personnel, etc. and shall register his or her business or amend such registration (excluding a modification of any of the minor matters specified by Presidential Decree) with the competent Mayor/Do Governor: Provided, That this shall not apply to the institutions specified by Presidential Decree, including public institutions performing work related to improvement projects, such as housing construction: |
| 1. | Act as an agent to obtain consent to establish an association and consent to an improvement project; |
| 2. | Act as an agent to file applications for authorization to establish an association; |
| 3. | Assessing the feasibility of projects and formulating the implementation plan for an improvement project; |
| 4. | Assisting in selecting a designer or contractor; |
| 5. | Acting as an agent to file applications for authorization of a project implementation plan; |
| 6. | Acting as an agent to formulate a management and disposal plan; |
| 7. | The following work necessary for establishing a promoters' committee, where the head of the relevant Si/Gun/Gu selects a management entity specialized in improvement projects under Article 118 (2) 2: |
| (a) | Receiving Consent Forms; |
| (b) | Assisting in preparing operating rules; |
| (c) | Other matters specified by City/Do ordinance. |
| (2) | Procedures and methods for registration under paragraph (1), registration fees, and other necessary matters shall be prescribed by Presidential Decree. |
| (3) | A Mayor/Do Governor shall report to the Minister of Land, Infrastructure and Transport the status of registration or amended registration of management business specialized in improvement projects under paragraph (1) and the status of the orders revoking the registration of management business specialized in improvement projects or suspending business operations of management entities specialized in improvement projects under Article 106 (1), according to the method and procedure prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 103 (Restrictions on Business Activities of Management Entities Specialized in Improvement Projects) |
No management entity specialized in improvement projects shall concurrently engage in the following activities for the same improvement project:
| 1. | Demolishing structures; |
| 2. | Designing the improvement project; |
| 3. | Performing the improvement project; |
| 4. | Auditing the improvement project; |
| 5. | Other business activities specified by Presidential Decree as deemed necessary for maintaining fair practices in improvement projects. |
| Article 104 (Relationship between Management Entities Specialized in Improvement Projects and Trustors) |
Except as provided in this Act, provisions of the Civil Act governing delegation shall apply mutatis mutandis to the relationship between a person who entrusts business activities to a management entity specialized in improvement projects or who request advice from such management entity and the management entity specialized in improvement projects.
| Article 105 (Grounds for Disqualification of Management Entities Specialized in Improvement Projects) |
| (1) | None of the following persons shall apply for registration of management business specialized in improvement projects or work as an executive officer or employee representing or assisting a management entity specialized in improvement projects for business activities: <Amended on Jun. 9, 2020> |
| 1. | A minor (limited to where a minor becomes the representative or an executive officer) or a person under adult guardianship or limited guardianship; |
| 2. | A person declared bankrupt, but not yet reinstated; |
| 3. | A person in whose case two years have not passed since a sentence of imprisonment without labor or heavier punishment imposed upon him or her for a crime related to the implementation of an improvement project was completely executed (or is deemed completely executed) or waived; |
| 4. | A person who was sentenced to a suspended prison sentence or heavier punishment for a crime related to the implementation of an improvement project and is still in the period of suspension; |
| 5. | A person in whose case two years have not passed since the person was sentenced to a fine or heavier punishment for violating this Act; |
| 6. | A person in whose case two years have not passed since the person’s registration was revoked under Article 106 (referring to the representative of a corporation, if the person is a corporation); |
| 7. | A corporation with executive officers and/or employees representing or assisting the corporation in business activities who fall under any provision of subparagraphs 1 through 6. |
| (2) | If an executive officer or employee representing or assisting a management entity specialized in improvement projects for business activities meets the requirements of the subparagraphs of paragraph (1) or is found to have met the requires thereof at the time he or she was appointed, such executive officer or employee shall be automatically dismissed from office. <Amended on Jun. 9, 2020> |
| (3) | The activities in which an executive officer or employee who is dismissed from office under paragraph (2) has been involved shall remain in effect. |
| Article 106 (Revocation of Registration of Management Business Specialized in Improvement Projects) |
| (1) | In any of the following cases, a Mayor/Do Governor may revoke the registration of a management entity specialized in improvement projects; or may order a management entity specialized in improvement projects to completely or partially suspend its business operations for a specified period not exceeding one year: Provided, That the registration shall be revoked, if a management entity specialized in improvement projects falls under subparagraph 1, 4, 8 or 9: |
| 1. | If a management entity specialized in improvement projects was registered by fraud or other wrongful means; |
| 2. | If a management entity specialized in improvement projects ceases to meet the standards for registration under Article 102 (1); |
| 3. | If a management entity specialized in improvement projects engages in any of the activities specified in Article 102 (1) without a contract entered into with a promoters' committee, a project implementer or the head of the relevant Si/Gun/Gu for entrusting business activities or providing advice; |
| 4. | If a management entity specialized in improvement projects does not directly engage in any of the activities specified in Article 102 (1); |
| 5. | If a management entity specialized in improvement projects, intentionally or negligently, inflicts economic loss upon an association by at least 1/3 of the contract amount (referring to the total amount of the contract executed between the management entity specialized in improvement projects and an association); |
| 6. | If a management entity specialized in improvement projects fails to submit a report or document under Article 107; submits a false report or document; or refuses, interferes with or evades an investigation or inspection; |
| 7. | If a management entity specialized in improvement projects fails to submit a report or document under Article 111; submits a false report or document or refuses; interferes with or evades an investigation; |
| 8. | If a management entity specialized in improvement projects has been ordered to suspend business operations at least twice during the most recent three years and the total period of business suspension exceeds 12 months; |
| 9. | If a management entity specialized in improvement projects permits another person to engage in any of the business activities provided for in this Act in its name or trade name or lends the management entity's certificate of registration; |
| 10. | If a management entity specialized in improvement projects is sentenced to a fine or heavier punishment for violating this Act (including the management entity's executive officers and employees, if the management entity is a corporation); |
| 11. | If a management entity specialized in improvement projects violates this Act; or an order issued or a disposition made under this Act. |
| (2) | The criteria for revoking registration and suspending business operations under paragraph (1) shall be prescribed by Presidential Decree. |
| (3) | A management entity specialized in improvement projects who is subjected to a revocation of registration or is ordered to suspend business operations under paragraph (1) and a Mayor/Do Governor who orders revocation of registration shall notify a promoters' committee or a project implementer details thereof without delay. <Amended on Aug. 20, 2019> |
| (4) | A management entity specialized in improvement projects may continue to engage in the business activities for which a contract was executed before its registration is revoked or it is ordered to suspend business operations under paragraph (1). Such management entity shall be deemed a management entity specialized in improvement projects until it completely engages in the relevant business activities. |
| (5) | Notwithstanding the former part of paragraph (4), a management entity specialized in improvement projects shall not continue to engage in business activities in any of the following cases: |
| 1. | If a project manager terminates the relevant contract for business activities following a resolution passed at the general meeting or the representatives' meeting within three months from the date the project implementer receives notice given under paragraph (3) or becomes aware of the relevant disposition; |
| 2. | If a management entity specialized in improvement projects fails to obtain consent of the project implementer to continue engaging in business activities within three months from the date the management entity faces revocation of its registration or is ordered to suspend business operations. The project implementer shall refer the case to the general meeting or representatives' meeting for resolution to give its consent; |
| 3. | If a management entity specialized in improvement projects faces revocation of its registration under the proviso, with the exception of the subparagraphs, of paragraph (1). |
| Article 107 (Investigation of Management Entities Specialized in Improvement Projects) |
| (1) | The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may require the management entity to submit a report or materials regarding its business operations or may issue any other necessary order; and may authorize subordinate public officials to enter a place of business, etc. of the management entity to investigate or inspect books of accounts, documents, etc. in any of the following cases: <Amended on Aug. 20, 2019> |
| 1. | Where it is necessary to ascertain whether any matter prescribed by this Act has been violated, such as the requirements for registration or grounds for disqualification; |
| 2. | Where any dispute arises between a management entity specialized in improvement projects, the owner of a plot of land or structure, members of the relevant association, or other interested parties in the improvement project; |
| 3. | Other cases prescribed by City/Do ordinance. |
| (2) | Public officials who enter a place of business to conduct an inspection, etc. under paragraph (1) shall carry identification indicating their authority; and shall show it to relevant persons. |
| (3) | Where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor intends to require a management entity specialized in improvement projects to report matters related to its business activities or to submit materials, or to conduct an investigation or inspection under paragraph (1), he or she shall give prior notice thereof pursuant to Article 17 of the Framework Act on Administrative Investigations. <Newly Inserted on Aug. 20, 2019> |
| (4) | A management entity specialized in improvement projects, upon receipt of an order to report business operations or to submit materials pursuant to paragraph (1), shall report or submit (including reporting or submission by electronic document) to the relevant management entity within 15 days from the date of receiving such order. <Newly Inserted on Aug. 20, 2019> |
| (5) | The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor shall notify the results of a report or submission of materials related to business operations, of investigation, or inspection under paragraph (1) within 30 days from the date such report, submission, investigation, or inspection is completed. <Newly Inserted on Aug. 20, 2019> |
| Article 108 (Comprehensive Management of Information about Management Business Specialized in Improvement Projects) |
| (1) | The Minister of Land, Infrastructure and Transport may establish and operate a comprehensive information system for management business specialized in improvement projects in order to comprehensively and systematically manage information about the capital, business performance, business conditions, etc. of management entities specialized in improvement projects and to provide such information to a Mayor/Do Governor, and the head of a Si/Gun/Gu, promoters' committees, project implementers, etc. <Amended on Aug. 10, 2021> |
| (2) | Matters necessary for establishing and operating the comprehensive information system for management business specialized in improvement projects under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| Article 109 (Establishment of Association) |
| (1) | Management entities specialized in improvement projects may establish their organization (hereinafter referred to as the "Association") in order to promote specialization of management business specialized in improvement projects and robust development of improvement projects. |
| (2) | The Association shall be a corporate entity. |
| (3) | The Association shall be duly formed at the time it completes the registration of its establishment with the registry having jurisdiction over its principal place of business. |
| (4) | In order to establish the Association, at least 50 eligible members shall prepare articles of association as promoters; and shall obtain authorization of the articles of association from the Minister of Land, Infrastructure and Transport following a resolution by its inaugural general meeting. The same procedures shall apply where the Association intends to amend the articles of association. |
| (5) | The rights and obligations of a member who is ordered by the competent Mayor/Do Governor to suspend business operations under this Act are suspended during the period of suspension of business operations; and a member shall forfeit membership in the Association, when the member’s registration of management business specialized in improvement projects is revoked. |
| (6) | The Association's articles of association, the revocation of authorization to establish and other necessary matters shall be prescribed by Presidential Decree. |
| (7) | Except as provided in this Act, the provisions of the Civil Act governing incorporated associations shall apply mutatis mutandis to the Association. |
| Article 110 (Business Activities and Supervision of Association) |
| (1) | The Association shall engage in the following business activities: |
| 1. | Surveys and research for robust development of management business specialized in improvement projects and of improvement projects; |
| 2. | Business activities for promoting mutual cooperation among members; |
| 3. | Educational and training programs for improving quality of technical personnel specialized in the management of improvement projects and workers engaged in management business specialized in improvement projects; |
| 4. | Other affairs prescribed by Presidential Decree. |
| (2) | If necessary to ascertain the status of the Association's business activities or whether it has violated this Act, the Minister of Land, Infrastructure and Transport may require the Association to report matters regarding said activities or to submit materials or may issue other necessary orders; and may have public officials under his or her control enter relevant offices and investigate or inspect books, documents. <Amended on Aug. 20, 2019> |
| (3) | Article 107 (2) through (5) shall apply mutatis mutandis to the reporting of matters regarding the business activities under paragraph (2), submission of materials, investigations, or inspections. <Newly Inserted on Aug. 20, 2019> |
| Article 111 (Submission of Materials) |
| (1) | Each Mayor/Do Governor shall submit a quarterly report on the performance of improvement projects to the Minister of Land, Infrastructure and Transport according to the methods and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport; and the head of each Si/Gun/Gu shall report the performance of improvement projects to the competent Special Metropolitan City Mayor, Metropolitan City Mayor or Do Governor, as prescribed by City/Do ordinance. |
| (2) | If necessary for supervision to ensure efficient implementation of an improvement project, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si/Gun/Gu may have the relevant promoters' committee, project implementer, management entity specialized in improvement projects, designer, contractor, or any person engaging in any business activity under this Act report matters relating to said affairs or submit materials or may issue other necessary orders; and may have subordinate public officials enter places of business to investigate or inspect books of accounts, documents, etc.: <Amended on Aug. 20, 2019; Jun. 9, 2020> |
| 1. | Where it is necessary to ascertain whether any business entity or person has violated this Act; |
| 2. | Where any dispute arises between the owner of a plot of land or structure, a member thereof, or any other interested party in the relevant improvement project; |
| 3. | Other cases prescribed by City/Do ordinance. |
| (3) | Article 107 (2) through (5) shall apply mutatis mutandis to the reporting of matters regarding the business activities prescribed in paragraph (2), submission of materials, investigations, or inspections. <Amended on Aug. 20, 2019> |
| (1) | Any project implementer or promoters' committee, other than the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, shall request the head of the relevant Si/Gun/Gu to select and enter into a contract with an audit institution to undergo an audit by the auditor referred to in subparagraphs 7 and 9 of Article 2 of the Act on External Audit of Stock Companies within the following time periods; report the findings of the audit to the head of the relevant Si/Gun/Gu and the relevant association; and make such findings available to association members for public inspection, within 15 days from the date the audit is completed: Provided, That if the project implementer is a qualified developer, subparagraph 1 shall not apply: <Amended on Oct. 31, 2017; Jan. 5, 2021; Mar. 16, 2021> |
| 1. | Where the sum, of an amount paid or disbursed until transfer of relevant documents from the promoters' committee to the association under Article 34 (4) and of a final amount to be spent on a contract, etc. exceeds the amount prescribed by Presidential Decree: Within seven days before transfer from the promoters' committee to the project implementer; |
| 2. | Where the amount paid or disbursed until the date of public notice of a project implementation plan under Article 50 (9) exceeds the amount prescribed by Presidential Decree: Within 20 days from the date the authorization of the project implementation plan is publicly notified; |
| 3. | Where the amount paid or disbursed until the date of application for authorization for completion under Article 83 (1) exceeds the amount prescribed by Presidential Decree: Within seven days from the date of application for authorization for completion; |
| 4. | Where at least 1/5 of the owners of a plot of land or structure or of members of an association request the project implementer to conduct an audit: Within the reasonable period taking into consideration the procedures under paragraph (4). |
| (2) | Upon receipt of a request under paragraph (1), the head of the relevant Si/Gun/Gu shall immediately select an audit institution to conduct an audit. <Amended on Jan. 5, 2021> |
| (3) | Where an audit institution is selected and contracted with pursuant to paragraph (2), the head of the relevant Si/Gun/Gu shall supervise the selected audit institution to ensure fair auditing; and may order such audit institution to make necessary dispositions or take necessary measures. |
| (4) | When a project implementer or a promoters' committee intends to request the head of the relevant Si/Gun/Gu to select and contract with an audit institution pursuant to paragraph (1), it shall deposit an amount with the head of the relevant Si/Gun/Gu equal to the expenses to be incurred for auditing. After the audit is completed, the head of the relevant Si/Gun/Gu shall directly pay expenses incurred in auditing from the deposited amount; and shall return the remainder to the project implementer. <Amended on Jan. 5, 2021; Jul. 27, 2021> |
| Article 113 (Supervision) |
| (1) | If it is found that an improvement project is implemented in violation of this Act or an order issued or a disposition made under this Act or the relevant project implementation plan or management and disposal plan, the Minister of Land, Infrastructure and Transport may revoke, amend or suspend a disposition, suspend or alter construction works, recommend the replacement of an executive officer, or take other necessary measures regarding a Mayor/Do Governor, the head of the relevant Si/Gun/Gu, a promoters' committee, a resident representatives' meeting, a project implementer or a management entity specialized in improvement projects; the Special Metropolitan City Mayor, a Metropolitan City Mayor or a Do Governor to the head of a Si/Gun/Gu, a promoters' committee, a resident representatives' meeting, a project implementer or a management entity specialized in improvement projects; or the head of a Si/Gun/Gu to a promoters' committee, a resident representatives' meeting, a project implementer or a management entity specialized in improvement projects, to the extent necessary to ensure the improvement project is properly implemented. <Amended on Feb. 3, 2022> |
| (2) | To ensure improvement projects under this Act are efficiently implemented, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu may organize an inspection team comprised of relevant public officials and experts and may mediate in disputes, require project implementers to correct violations, and take other necessary measures by conducting field inspections of improvement projects. In such cases, the heads of local governments, associations, etc. shall fully cooperate with an inspection team in its activities by providing the documents specified by Presidential Decree. |
| (3) | Article 107 (2), (3), and (5) shall apply mutatis mutandis to field inspections of improvement projects under paragraph (2). <Amended on Aug. 20, 2019> |
| Article 113-2 (Orders to Revoke Selection of Contractors or Imposition of Penalty Surcharges) |
| (1) | In either of the following cases, the Mayor/Do Governor (referring to the Mayor/Do Governor having jurisdiction over the relevant improvement project; hereafter in this Article and Article 113-3 the same shall apply) may order the relevant project implementer to revoke the selection of a constructor as the contractor for the relevant improvement project or may impose a penalty surcharge, not exceeding 20/100 of the construction cost stipulated in the contract entered into by and between the project implementer and the contractor, on such constructor. In such cases, upon receiving an order to revoke the selection of a contractor, the project implementer shall revoke the selection of the contractor: |
| 2. | Where a constructor fails to take necessary measures for management, supervision, etc., in violation of Article 132-2, and consequently any executive officer or employee of a service provider (including individuals employed by the constructor) violates Article 132. |
| (2) | Matters necessary for the types of violation subject to the imposition of a penalty surcharge under paragraph (1) and the amount, etc. of a penalty surcharge that shall be imposed in consideration of the gravity of violation, etc. shall be prescribed by Presidential Decree. |
| (3) | If any person on whom a penalty surcharge is imposed under paragraph (1) fails to pay the penalty surcharge by the deadline for payment, a Mayor/Do Governor shall collect the penalty surcharge as prescribed by the Act on the Collection of Local Administrative Penalty Charges. <Amended on Mar. 24, 2020> |
[This Article Newly Inserted on Jun. 12, 2018]
| Article 113-3 (Restrictions on Constructor's Participation in Bidding Processes) |
| (1) | The Mayor/Do Governor may restrict a constructor falling under either subparagraph of Article 113-2 (1) from participating in bidding processes for improvement projects for a period of up to two years specified by Presidential Decree. |
| (2) | When the Mayor/Do Governor intends to restrict a constructor from participating in bidding processes for improvement projects under paragraph (1), he or she shall disclose the projects subject to such restriction, the period of restriction, the reasons for restriction and other details related to the restriction on participation in bidding processes, and shall notify such information to the head of the Si/Gun/Gu having jurisdiction over the relevant area or the relevant project implementer. In such cases, upon receiving the notice, the project implementer shall restrict the relevant constructor's qualification for participating in bidding processes. |
| (3) | No project implementer shall award any contract (including negotiated no-bid contracts) to a constructor subject to restriction on participation in bidding processes under paragraph (2). |
[This Article Newly Inserted on Jun. 12, 2018]
| Article 114 (Support Organization for Improvement Projects) |
The Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may establish a support organization for improvement projects to engage in the following business activities. In such cases, the Minister of Land, Infrastructure and Transport may authorize the Korea Real Estate Board established pursuant to the Korea Real Estate Board Act or the Korea Land and Housing Corporation established pursuant to the Korea Land and Housing Corporation Act to perform the affairs of a support organization for improvement projects by proxy, and a Mayor/Do Governor may do so with a local public corporation established to perform housing projects under the Local Public Enterprises Act: <Amended on Jan. 16, 2018; Apr. 23, 2019; Jun. 9, 2020; Apr. 13, 2021> | 1. | Consulting on improvement projects; |
| 2. | Assisting with the management system specializing in improvement projects; |
| 3. | Assisting in training and managing special administrators of an association; |
| 4. | Assisting small-sized micro businesses, etc. in formulating a project implementation plan or a management and disposal plan; |
| 5. | Assisting in supplying publicly-funded private rental housing units through improvement projects; |
| 6. | Business affairs related to verifying construction costs under Article 29-2; |
| 7. | Support for public redevelopment projects and public reconstruction projects; |
| 8. | Other affairs determined by the Minister of Land, Infrastructure and Transport. |
| Article 115 (Implementation of Training Programs) |
The Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu may implement training programs for the chairperson and auditors of a promoters' committee, executive officers of an association, special administrators of an association, the representative and technical personnel of a management entity specialized in improvement projects, the owners of a plot of land or structure, etc., as prescribed by Presidential Decree.
| Article 116 (Organization of Urban Disputes Mediation Committee) |
| (1) | In order to mediate in disputes arising in connection with the implementation of an improvement project, an urban disputes mediation committee (hereinafter referred to as "mediation committee") shall be established in the Special Self-Governing City, Special Self-Governing Province or Si/Gun/Gu (Gu refers to an autonomous Gu; hereinafter the same shall apply) in which an improvement zone is designated: Provided, a mediation committee may be established in a City/Do, if necessary to mediate in disputes involving the head of the relevant Si/Gun/Gu as a party and arising in connection with the implementation of an improvement project. |
| (2) | A mediation committee shall be comprised of not more than 10 members; and shall be chaired by a Vice-Mayor or Vice Governor or the deputy head of a Si/Gun/Gu. |
| (3) | Members of a mediation committee shall be appointed or commissioned by the head of the relevant Si/Gun/Gu, from among the following persons with abundant knowledge and experience in improvement projects. At least two persons from each category of persons specified in subparagraphs 1, 3 and 4 shall be included in the mediation committee: |
| 1. | At least Grade V public officials in charge of duties related to improvement projects in the Special Self-Governing City, Special Self-Governing Province or Si/Gun/Gu; |
| 2. | Persons working as at least an associate professor or with an equivalent position in a university, college or research institute; |
| 3. | Persons who have worked as a judge, public prosecutor or attorney-at-law for at least five years; |
| 4. | Persons who have worked as an architect, appraiser or certified public accountant for at least five years; |
| 5. | Other persons prescribed by City/Do ordinance as having expertise in improvement projects. |
| (4) | A mediation committee shall have subcommittee comprised of three members (hereinafter referred to as "subcommittee"); and at least one person from each category of persons specified in paragraphs (3) 1 and 3 shall be included in each subcommittee. |
| Article 117 (Mediation by Mediation Committee) |
| 1. | A dispute on the appraised value in exercising the right to request sale; |
| 2. | A dispute on the method for allocating various sizes of multi-family housing units; |
| 3. | Other disputes specified by Presidential Decree. |
| (2) | The head of the relevant Si/Gun/Gu may convene a mediation committee meeting in either of the following cases; and the mediation committee shall complete mediation proceedings within 60 days from the filing date of the relevant application for mediation (referring to the date the first mediation committee meeting is held in cases of subparagraph 2): Provided, That, if it is deemed impracticable to complete mediation proceedings within the specified period for good cause, the period may be extended by up to 30 days by resolution of the mediation committee: <Amended on Aug. 9, 2017> |
| 1. | Where either party to a dispute applies for mediating in a dispute arising due to the implementation of an improvement project; |
| 2. | Where the head of the relevant Si/Gun/Gu deems it necessary to convene a mediation committee for mediation. |
| (3) | The chairperson of a mediation committee may authorize a subcommittee to conduct a preliminary examination prior to examination by the mediation committee: Provided, That, if all members of such subcommittee unanimously agree that further examination by the mediation committee is unnecessary, the subcommittee may complete mediation proceedings without referring the dispute to the mediation committee for further examination. |
| (4) | When a mediation committee or subcommittee completes mediation proceedings under paragraph (2) or (3), it shall prepare a proposed settlement agreement and shall present it to each party without delay. Upon receipt of the proposed settlement agreement, each party shall notify the mediation committee or subcommittee that it has accepted or rejected the proposed settlement agreement, within 15 days from the date it receives the proposed settlement agreement. |
| (5) | If the parties accept the proposed settlement agreement, the mediation committee shall prepare a settlement agreement immediately and have the chairperson and each party sign and seal the agreement. |
| (7) | The organization and operation of a mediation committee, the apportionment of expenses, the extension of the mediation period and other necessary matters shall be prescribed by City/Do ordinance. <Amended on Aug. 9, 2017> |
| Article 118 (Public Assistance in Improvement Projects) |
| (1) | In order to enhance the transparency and efficiency of improvement projects, the head of the relevant Si/Gun/Gu may render assistance in the course of implementing the improvement projects specified by City/Do ordinance (hereinafter referred to as "public assistance"); or may entrust public assistance to the Korea Land and Housing Corporation, a local government-invested public corporation, a trust business entity, the Korea Housing and Urban Guarantee Corporation established under the Housing and Urban Fund Act or any of the institutions specified by Presidential Decree pursuant to the proviso, with the exception of the subparagraphs, of Article 102 (1) of this Act. |
| (2) | The head of the relevant Si/Gun/Gu who renders public assistance in improvement projects under paragraph (1) or a person entrusted with such public assistance (hereinafter referred to as "entrusted assistant") shall perform the following activities: |
| 1. | Organizing a promoters' committee or a resident representatives' meeting; |
| 2. | Selecting a management entity specialized in improvement projects (an entrusted assistant's activity shall be limited to assistance for selection); |
| 3. | Methods, etc. for selecting a designer and a contractor; |
| 4. | Formulating measures for housing and relocating tenants under Article 52 (1) 4 (including measures for negotiations in response to refusal to relocation); |
| 5. | Formulating a management and disposal plan; |
| 6. | Other matters specified by City/Do ordinance. |
| (3) | To help an entrusted assistant fairly perform his or her activities, the head of the relevant Si/Gun/Gu may take necessary measures, such as submitting relevant documents and conducting investigations and on-site inspections. In such cases, the head of the relevant Si/Gun/Gu shall be liable to third parties for an entrusted assistant's activities. |
| (4) | Expenses incurred in rendering public assistance shall be borne by the head of the relevant Si/Gun/Gu, but the Special Metropolitan City Mayor or a Metropolitan City Mayor or a Do Governor may provide a subsidy for the head of a Si/Gun/Gu within his or her jurisdiction to partially cover such expenses, as prescribed by ordinance of the Special Metropolitan City, Metropolitan City or Do. |
| (5) | Article 32 (2) shall not apply where a promoters' committee selects a management entity specialized in improvement projects, who has been selected by the head of the relevant Si/Gun/Gu under paragraph (2) 2. |
| (6) | Methods, procedures and guidelines for rendering public assistance and matters necessary for providing subsidies from the Urban and Residential Environment Improvement Fund under Article 126, the timing for selecting a contractor and other necessary matters shall be prescribed by City/Do ordinance. |
| (7) | Notwithstanding paragraph (6), a contractor may be selected pursuant to Article 29 (4) with the consent of a majority of the owners of a plot of land or structure (referring to association members, if an association is established pursuant to Article 35) in either of the following cases: Provided, That the relevant constructor shall be deemed a contractor in cases falling under subparagraph 1: <Amended on Aug. 9, 2017> |
| 1. | Where an association that implements an improvement project jointly with a constructor pursuant to Article 25 enters into an agreement with the constructor; |
| 2. | Where a project agent implements an improvement project pursuant to Article 28 (1) or (2). |
| (8) | Further details about terms and conditions of an agreement referred to in paragraph (7) 1 may be prescribed by City/Do ordinance. |
| Article 119 (Establishment of Improvement Projects Management System) |
| (1) | In order to ensure efficient and transparent management of improvement projects, the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor may establish and operate an improvement projects management system. <Amended on Aug. 10, 2021> |
| (2) | The Minister of Land, Infrastructure and Transport may request a Mayor/Do Governor to render cooperation, such as the submission of data necessary for establishing the improvement projects management system under paragraph (1). In such cases, the Mayor/Do Governor requested to render cooperation, such as submission of data, shall comply with such request unless there is a compelling reason not to do so. <Newly Inserted on Aug. 10, 2021> |
| (3) | Matters necessary for methods of operating the improvement projects management system under paragraph (1) shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport or City/Do ordinance. <Amended on Aug. 10, 2021> |
| Article 120 (Disclosure of Information about Improvement Projects) |
In order to promote the transparency of improvement projects, the head of the relevant Si/Gun/Gu shall disclose information about the following matters regarding the improvement project implemented by each association, at least once annually, via Internet and by any other means concurrently. In such cases, matters necessary for the methods, timing, etc. for disclosure shall be prescribed by City/Do ordinance: <Amended on Aug. 9, 2017>
| 1. | The contract amount under Article 29, among the matters specified in the management and disposal plan authorized under Article 74 (1) (including an authorization for amendment; hereafter in this Article the same shall apply); |
| 2. | Interest accruing from an improvement project, among matters included in the management and disposal plan authorized under Article 74 (1); |
| 3. | Other matters specified by City/Do ordinance. |
The Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu hold a hearing to make any of the following dispositions: <Amended on Jun. 12, 2018>
| 1. | De-registering management business specializing in improvement projects under Article 106 (1); |
| 2. | Revoking approval of a promoters' committee, revoking the authorization to establish an association, revoking the authorization of a project implementation plan, or revoking authorization of a management and disposal plan under Article 113 (1) through (3); |
| 3. | Revoking the selection of a contractor or imposing a penalty surcharge under Article 113-2 (1); |
| 4. | Restricting participation in bidding processes under Article 113-3 (1). |
CHAPTER VIII SUPPLEMENTARY PROVISIONS
| Article 122 (Obligation of Owners of Plots of Land or Structures to Explain) |
| (1) | When the owner of a plot of land or structure enters into an agreement for a transaction of real estate, including sale and purchase, lease on a deposit basis, lease or creating a surface right, with respect to a plot of land or structure owned by him or her in an improvement zone, he or she shall explain and notify the following matters to the other party to the transaction; state such matters in the agreement; and then require the other party to sign and seal the agreement: |
| 1. | The implemented phase of the relevant improvement project; |
| 2. | The eviction schedule (including the demolition schedule for structure); |
| 4. | Eligibility requirements for association members under Article 39; |
| 6. | The base date for determining the right to purchase a house or structure under Article 77; |
| 7. | Other matters specified by Presidential Decree as significantly affecting the rights and obligations of the other party to a transaction. |
| Article 123 (Change of Methods for Implementing Redevelopment Projects) |
| (1) | If the head of the relevant Si/Gun/Gu deems it necessary to change the method for implementing a redevelopment project as prescribed in Article 23 (2), when he or she designates a project agent under Article 28 (1) or upon request by at least 4/5 of the owners of a plot of land or structure, he or she may approve the change of the implementation method for all or part of the improvement zone, within the limits prescribed by Presidential Decree, even before the improvement project is completed. |
| (2) | When a project implementer intends to amend a management and disposal plan to change the implementation method under paragraph (1), it shall obtain consent of the landowners owning at least 2/3 of the area of land and consent of at least 4/5 of the owners of a plot of land or structure; but Article 74 (1) that provides for the amendment of a management and disposal plan shall apply mutatis mutandis to the procedures for amending such plan. |
| (3) | When a project implementer intends to change the implementation method for part of an improvement zone under paragraph (1), such implementer shall obtain authorization for the completed section of a redevelopment project and publish notice of the completion of construction works for such section in the public gazette of the relevant local government under Article 83; and shall change the implementation method for the part subject to the intended change according to the procedure provided for in this Act. |
| (4) | When the completion of construction works is publicly notified under paragraph (3), transfer of ownership shall be deemed made under Article 86 in accordance with the relevant management and disposal plan, notwithstanding Article 86 (3) of the Act on the Establishment, Management of Spatial Data. |
| (5) | When a project implementer intends to change a residential environment improvement project for which an improvement plan has been formulated to the implementation method prescribed in Article 23 (1) 4, it shall obtain consent of at least 2/3 of the owners of a plot of land or structure. |
| Article 124 (Disclosure of Relevant Documents) |
| (1) | The chairperson of a promoters' committee or a project implementer (referring to executive officers of an association, including the liquidator, for an association, or the representative of the owners of a plot of land or structure, for a redevelopment project solely implemented by the owners of a plot of land or structure) shall disclose the following documents concerning the implementation of the improvement project and relevant materials within 15 days after such documents are prepared or revised, via Internet and by any other means concurrently, to inform association members, the owners of a plot of land or structure or tenants of such documents and materials: |
| 1. | Operating rules of the promoters' committee under Article 34 (1), articles of associations, etc.; |
| 2. | Contracts for selecting service providers, such as a designer, contractor, demolisher, and management entity specialized in improvement projects; |
| 3. | Minutes of meeting of the promoters' committee, the residents' general meeting, or the general meeting, directors' meeting, representatives' meeting of the association; |
| 4. | The project implementation plan; |
| 5. | The management and disposal plan; |
| 6. | Official documents regarding the implementation of the improvement project; |
| 8. | Details of monthly receipts and payments of funds; |
| 9. | The report on settlement of accounts; |
| 10. | The progress of administration by the liquidator; |
| 11. | Other documents and relevant materials specified by Presidential Decree regarding the implementation of improvement projects. |
| (2) | In cases of the documents and relevant materials to be disclosed under paragraph (1), association members or the owners of a plot of land or structure shall be quarterly notified, in writing, of a list of documents and materials to be disclosed, a summary of such documents and materials, the place of disclosure, the methods of inspection and copying, etc. in accordance with the methods and procedures prescribed by Presidential Decree. |
| (3) | In disclosing documents and materials or making documents and materials available for inspection, copying, etc. under paragraphs (1) and (4), the chairperson of a promoters' committee or a project implementer shall disclose the documents and materials, except for resident registration numbers, in accordance with the methods and procedures prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. |
| (4) | When an association member or the owner of a plot of land or structure requests inspection or copy of the documents specified in paragraph (1) and the documents and relevant materials regarding the implementation of the relevant improvement project, including the following, the chairperson of a promoters' committee or a project implementer shall make such documents and materials available in compliance with such request within 15 days: |
| 1. | A list of owners of a plot of land or structure; |
| 2. | A list of association members; |
| 3. | Other documents and relevant materials specified by Presidential Decree. |
| (5) | Actual expenses incurred in copying documents and materials under paragraph (4) shall be borne by the applicant. Methods and time for paying the expenses, and the amount of the expenses and other necessary matters shall be prescribed by City/Do ordinance. |
| (6) | No person who requested to inspect or copy documents and materials under paragraph (4) shall use the documents and materials so provided, for any purposes other than proper purposes. |
| Article 125 (Retention and Transfer of Relevant Materials) |
| (1) | The chairperson of a promoters' committee, a management entity specialized in improvement projects, or a project implementer (in cases of an association, referring to association executive officers, including the liquidator; and if a redevelopment project is implemented solely by the owners of a plot of land or structure, it refers their representative) shall retain the documents and relevant materials specified in Article 124 (1) and stenographic records, audio or video records produced whenever a general meeting or an important meeting (referring to any of the meetings specified by Presidential Decree held to impose a financial burden on association members or the owners of a plot of land or structure or to change their rights and obligations), until liquidation. |
| (2) | A project implementer, who is not the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, shall transfer relevant documents to the head of the relevant Si/Gun/Gu, as prescribed by City/Do ordinance, at the time it completes or discontinues the improvement project. |
| (3) | A project implementer, who is the head of the relevant Si/Gun/Gu, the Korea Land and Housing Corporation or a local government-invested public corporation, and the head of the relevant Si/Gun/Gu who receives relevant documents transferred under paragraph (2) shall retain the relevant documents for the improvement project for five years. |
| Article 126 (Establishment of Urban and Residential Environment Improvement Fund) |
| (1) | The Special Metropolitan City Mayor and each Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, and Special Self-Governing Province Governor, who formulates or approves a master plan under Article 4 or 7, shall establish an Urban and Residential Environment Improvement Fund (hereinafter referred to as the "Improvement Fund") to efficiently implement improvement projects: Provided, That the head of a Si/Gun, not required to formulate a master plan, may also establish the Improvement Fund, if necessary. |
| (2) | The Improvement Fund shall consist of the following financial resources: <Amended on Jun. 12, 2018; Apr. 13, 2021> |
| 1. | Cash payments made by project implementers under Article 17 (4); |
| 2. | Security deposits and rents for housing units supplied to a Mayor/Do Governor or the head of a Si/Gun/Gu under Articles 55 (1), 101-5 (2), and 101-6 (2); |
| 4. | An amount equal to at least the percent specified by Presidential Decree of the sale price for State or public land in an improvement zone under Article 98 (excluding a reconstruction zone); |
| 6. | An amount equal to at least the percent specified by Presidential Decree of local consumption tax imposed and collected under Article 69 of the Local Tax Act or property tax imposed and collected under Article 112 (excluding paragraph (1) 1 of that Article) of that Act; |
| 7. | Other financial resources specified by City/Do ordinance. |
| (3) | The Improvement Fund shall not be used for any purpose other than the following: <Amended on Aug. 9, 2017> |
| 1. | The following purposes for implementing improvement projects under this Act: |
| (a) | Formulating a master plan; |
| (b) | Conducting safe examinations and formulating improvement plans; |
| (c) | Providing a loan to a promoters' committee as an operating fund; |
| (d) | Other purposes specified by this Act and City/Do ordinance; |
| 2. | Constructing and managing rental housing; |
| 3. | Assisting tenants for stabilizing their dwelling; |
| 5. | Subsidizing the improvement of houses; |
| 6. | Subsidizing the construction of fundamental infrastructure in the canceled improvement zone, etc.; |
| (4) | The management and operation of the Improvement Fund, the percent at which the amount allocated to a local government out of development charges shall be set aside for the Improvement Fund and other necessary matters shall be prescribed by City/Do ordinance. |
| Article 127 (Formulation of Plans for Improving Dilapidated and Substandard Residential Areas) |
The Minister of Land, Infrastructure and Transport shall inspect areas that require improvement once every five years to improve the residential environment of residential areas with substandard houses or infrastructure and shall formulate a plan to improve such dilapidated and substandard residential areas, including an annual funding plan.
| Article 128 (Delegation of Authority) |
| (1) | The Minister of Land, Infrastructure and Transport may delegate part of his or her authority under this Act to each Mayor/Do Governor or the head of each Si/Gun/Gu, as prescribed by Presidential Decree. |
| (2) | If necessary for efficiently enforcing this Act, the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor, or the head of a Si/Gun/Gu may entrust any of the following administrative work to any of the institutions or organizations specified by Presidential Decree, including a support organization for improvement projects and the Association: <Amended on Aug. 10, 2021> |
| 1. | Establishing and operating a comprehensive information system for management business specialized in improvement projects under Article 108; |
| 2-2. | The establishment and operation of the improvement projects management system under Article 119; |
| 3. | Other administrative work specified by Presidential Decree. |
| Article 129 (Succession to Rights and Obligations of Project Implementers) |
If a project implementer and any person who holds a right (hereinafter referred to as "right holder") in an improvement project are changed, the new project implementer and the person who becomes a new right-holder shall succeed to rights and obligations of the former project implementer and right holder respectively.
| Article 130 (Prevention of Crimes in Improvement Zones) |
| (1) | Upon authorizing a project implementation plan under Article 50 (1), the head of the relevant Si/Gun/Gu shall give notice to the chief of the relevant police station and the chief of the competent fire station. <Amended on Aug. 10, 2021> |
| (2) | The head of the relevant Si/Gun/Gu may request the commissioner of the competent City/Do police agency or the chief of the relevant police station to take the following measures to ensure safety, etc. of residents in the improvement zone upon authorizing a project implementation plan: <Amended on Dec. 22, 2020> |
| 2. | Installing and maintaining facilities necessary for crime prevention, such as installing patrol checkpoints; |
| 3. | Other measures deemed necessary for residents' safety. |
| (3) | Upon approving a project implementation plan, the head of the relevant Si/Gun/Gu may request the director general of the competent fire-fighting headquarters or head of the competent fire station to strengthen fire prevention patrol for the safety of residents, etc. in the improvement zone. <Newly Inserted on Aug. 10, 2021> |
[Title Amended on Aug. 10, 2021]
| Article 131 (Safety Reexamination for Reconstruction Projects) |
If no project implementation plan has been authorized pursuant to Article 50 until the tenth anniversary of the date of designation and public notice of an improvement zone under the former part of Article 16 (2), the head of the relevant Si/Gun/Gu shall re-conduct a safety inspection in any of the following cases: <Amended on Jun. 12, 2018>
| Article 132 (Restrictions on Activities in Appointing or Selecting Executive Officers of Associations) |
No person shall engage in any of the following activities regarding the appointment of a promoter or an executive officer of an association or the execution of a contract under Article 29: <Amended on Aug. 9, 2017> | 1. | Providing, expressing an intention to provide or promising to provide money, valuables, entertainment, or any other economic benefit; |
| 2. | Receiving, or acknowledging the expression of an intention to provide money, valuables, entertainment, or any other economic benefit; |
| 3. | Engaging in any activity specified in subparagraph 1 or 2 through a third party. |
| Article 132-2 (Constructor's Duties of Management and Supervision) |
A constructor shall take necessary measures, including the inspection of the expenditure on education and service fees and the management and supervision of service providers, to ensure that no executive officer or employee of any service provider providing services to the constructor under a contract for public relations activities, etc. violates Article 132 in connection with the selection of a contractor. [This Article Newly Inserted on Jun. 12, 2018]
| Article 133 (Inclusion of Claims in Losses Following Revocation of Authorization to Establish Association) |
If a contractor, a designer or a management entity specialized in improvement projects (hereafter in this Article referred to as "contractor or other creditor") intends to waive all or some of claims (excluding claims already paid or to be paid by an association under an agreement with the contractor or other creditor; hereafter in this Article the same shall apply) from the relevant promoters' committee or association (including joint guarantors; hereafter in this Article referred to as "association") and to include such claims in deductible expenses under Article 104-26 of the Restriction of Special Taxation Act, it shall reach an agreement with the relevant association and shall submit a letter of confirmation of claims, including the following matters, to the head of the relevant Si/Gun/Gu: | 1. | The amount of claims and supporting documentation; |
| 2. | An agreement to waive claims and a plan for follow-up measures; |
| 3. | Other matters specified by City/Do ordinance concerning the waiver of claims, etc. |
| Article 134 (Legal Fiction as Public Officials for Purposes of Applying Penalty Provisions) |
The chairperson of a promoters' committee, executive officers of an association, a liquidator, a special administrator of an association, the representative (referring to executive officers if the entity is a corporation) and employees of a management entity specialized in improvement projects and an entrusted assistant shall be deemed public officials for the purposes of applying Articles 129 through 132 of the Criminal Act.
CHAPTER IX PENALTY PROVISIONS
| Article 135 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won:
| 1. | A person who forges a Consent Form submitted by the owner of a plot of land or structure under Article 36; |
| 2. | A person who provides, manifests an intention to provide, or promises to provide, money valuables, entertainment or any other economic benefit or who receives or acknowledging the expression of an intention to provide money, valuables, entertainment or any other economic benefit, in violation of any subparagraph of Article 132. |
| Article 136 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on Aug. 9, 2017; Apr. 23, 2019; Feb. 3, 2022>
| 1. | The chairperson of a promoters' committee, the special administrator of an association, or an executive officer of an association (referring to the liquidator of an association or the representative of the owners of a plot of land or structure in cases of a redevelopment project implemented by the owners of a plot of land or structure or the representative of a qualified developer, if a qualified developer is the project implementer), who enters into a contract, in violation of the contracting method provided for in Article 29 (1); |
| 2. | A person who selects a contractor and a person selected as a contractor, in violation of any provision of Article 29 (4) through (8); |
| 2-2. | A person who enters into a contract on construction works with a contractor, in violation of Article 29 (9); |
| 3. | A person who selects a management entity specialized in improvement projects, without approval of a promoters' committee by the head of the relevant Si/Gun/Gu under Article 31 (1); |
| 4. | The chairperson of a promoters' committee (including the special administrator of an association) who selects a management entity specialized in improvement projects, in violation of the contracting method provided for in Article 32 (2); |
| 5. | A person who sells or purchases a Consent Form submitted by the owner of a plot of land or structure under Article 36; |
| 6. | A person who becomes a member of an association or the head of a plot of land or structure or an executive officer or employee of an association (including the special administrator of an association), who aids and abets a person to become a member of an association, by fraud or other improper means, in violation of Article 39 (2); |
| 7. | A person who conceals the transfer or acquisition of a structure or a plot of land with intent to transfer or be supplied with a housing unit sold under Article 72 by circumventing Article 39 (2); |
| 8. | A person who resells a house or intermediates the resale of a house, in violation of the proviso of Article 76 (1) 7 (d). |
| Article 137 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won: <Amended on Jun. 9, 2020>
| 1. | A person who prepares a false report on findings of a safety inspection conducted pursuant to Article 12 (5); |
| 2. | A person who fails to obtain permission or permission for change or engages in an activity with permission or permission for change obtained by fraud or other wrongful means, in violation of Article 19 (1); |
| 3. | A person who engages in any of the activities specified in Article 32 (1) or organizes and operates a resident representatives' meeting, without the approval from a promoters' committee or a resident representatives' meeting, in violation of Article 31 (1) or 47 (3); |
| 4. | A person who organizes a promoters' committee or a resident representatives' meeting, without due authority, although a promoters' committee or a resident representatives' meeting organized with approval under Article 31 (1) or 47 (3) exists; |
| 5. | A person who continues to operate a promoters' committee, although the relevant association has already been established pursuant to Article 35; |
| 6. | An executive officer (including the special administrator of an association) of an association, who engages in an activity specified in paragraph (1) (excluding the matters stipulated by articles of association under subparagraph 13 of that paragraph), without due authority and without resolution by the general meeting under Article 45; |
| 7. | A person who implements an improvement project, without authorization of the project implementation plan under Article 50, and a person who builds a structure in violation of such project implementation plan; |
| 8. | A person who transfers ownership under Article 86, without authorization of the management and disposal plan under Article 74; |
| 9. | A person entrusted with an improvement project under this Act without being registered, in violation of Article 102 (1), or a person registered as a management entity specialized in improvement projects by fraud or other wrongful means; |
| 10. | A person who continues business operations, despite being de-registered under the proviso, with the exception of the subparagraphs, of Article 106 (1); |
| 11. | A promoters' committee, a project implementer, a resident representatives' meeting or a management entity specialized in improvement projects, who fails to comply with an order to revoke, modify, or suspend a disposition or suspending or altering construction works under Article 113 (1) through (3); |
| 12. | The chairperson of a promoters' committee or an executive officer of an association (or the representative of the owners of a plot of land or structure, in the case of a redevelopment project implemented by the owners of a plot of land or structure), who presents any false document or material in disclosing documents and relevant materials pursuant to Article 124 (1); |
| 13. | The chairperson of a promoters' committee or an executive officer of an association (or the representative of the owners of a plot of land or structure, in the case of a redevelopment project implemented by the owners of a plot of land or structure), who makes available materials containing false information for inspection and copying, upon request for inspection and copying under Article 124 (4). |
| Article 138 (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 10 million won: <Amended on Jun. 12, 2018; Jun. 9, 2020; Jan. 5, 2021>
| 2. | The chairperson of a promoters' committee (including the special administrator of an association) who fails to transfer books of accounts and relevant documents of the promoters' committee to the relevant association, in violation of Article 34 (4); |
| 3. | A person who uses a structure, etc., without authorization for completion under Article 83 (1), and a person who uses a structure, without permission for use by the head of the relevant Si/Gun/Gu under the main clause of Article 83 (5); |
| 4. | A management entity specialized in improvement projects that allows another person to engage in any business activity specified by this Act in its name or trade name or lends its certificate of registration to another person; |
| 5. | A management entity specialized in improvement projects that lets another service provider or its employee engage in any activity specified in Article 102 (1); |
| 6. | A promoter, the special administer of an association, or an association executive officer who has not requested for an audit under Article 112 (1) (in the case of a redevelopment project implemented by the owner of a plot of land or structure or an improvement project implemented by a qualified developer under Article 27, referring to the representative of said project); |
| 7. | The chairperson of a promoters' committee, the special administrator of an association or any executive officer of an association (referring to the liquidator of an association; the representative of the owners of a plot of land or structure in cases of a redevelopment project implemented by the owners of a plot of land or structure; or the representative of a qualified developer, if a qualified developer under Article 27 is the project implementer), who fails to disclosure documents and materials related to the implementation of an improvement project via Internet and by any other means concurrently, in violation of Article 124 (1), or who does comply with a request of an association member or the owner of a plot of land or structure to make such documents and materials available for inspection and copying, in violation of Article 124 (4); |
| 8. | The chairperson of a promoters' committee, the special administrator of an association or any executive officer of an association (referring to the liquidator of an association; the representative of the owners of a plot of land or structure in cases of a redevelopment project implemented by the owners of a plot of land or structure; or the representative of a qualified developer, if a qualified developer under Article 27 is the project implementer), who fails to make stenographic records, etc. or retain relevant materials until liquidation, in violation of Article 125 (1). |
| (2) | If a constructor fails to take measures prescribed in Article 132-2 and consequently any executive officer or employee of a service provider violates any subparagraph of Article 132, the constructor shall be punished by a fine not exceeding 50 million won. <Newly Inserted on Jun. 12, 2018> |
| Article 139 (Joint Penalty Provisions) |
If the representative of a corporation or an agent, employee or servant of a corporation or an individual commits an offense in violation of any provision of Articles 135 through 138, regarding the business of the corporation or individual, not only shall such offender be punished accordingly, but the corporation or individual shall also be punished by a fine specified in the relevant Article: Provided, That this shall not apply where such corporation or individual has not neglected to give due care and supervise the relevant business to prevent such offense.
| Article 140 (Administrative Fines) |
| (1) | Any person who refuses, evades, or interferes with a field inspection under Article 113 (2) shall be subject to an administrative fine of 10 million won. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Aug. 9, 2017; Jun. 9, 2020> |
| 1. | A person who concludes a contract without using the Electronic Procurement System, in violation of Article 29 (2); |
| 2. | A person who neglects to give notice under Article 78 (5) or 86 (1); |
| 3. | A person who neglects to submit a report or document under Article 107 (1) or 111 (2); |
| 4. | A person who neglects to transfer relevant documents under Article 125 (2). |
| (3) | Administrative fines referred to in paragraphs (1) and (2) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, a Mayor/Do Governor or the head of a Si/Gun/Gu according to the method and procedure prescribed by Presidential Decree. |
| Article 141 (Special Cases concerning Persons Surrendering Themselves to Justice) |
If any person who provided, expressed his or her intention to provide, or promised to provide money, valuables, entertainment or other economic benefit or who received or acknowledged an indicated intention to provide money, valuables, entertainment or other economic benefit, in violation of any subparagraph of Article 132, surrenders him or herself to justice, the punishment upon such person shall be mitigated or waived. [This Article Newly Inserted on Aug. 9, 2017]
| Article 142 (Rewards for Reporting Provision or Acceptance of Money, Valuables, or Entertainment) |
A Mayor/Do Governor or the Mayor of a large city may pay rewards to a person who reports an activity specified in any s
[This Article Newly Inserted on Aug. 9, 2017]
ADDENDA <Act No. 5893, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into one year after the date of its promulgation.
Article 2 (Term of Validity)
Article 3 (Applicability to Relaxation of Floor Area Ratio Requirement in Formulating Master Plans and Improvement Plans)
Article 4 (Applicability to Base Date for Requesting Cancellation of Improvement Zones for Urban Environment Improvement Projects)
Notwithstanding the amended provisions of Article 20 (1) 2 (c) and (d), the amended provisions shall begin to apply to the first improvement plan (excluding amendments to an improvement plan) formulated as of March 2, 2016, when the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13508) entered into force, for the purpose of determining the base date for requesting the cancellation of an improvement zone for an urban environment improvement project implemented before this Act enters into force. Article 5 (Applicability to Base Date for Requesting Cancellation of Improvement Zones)
| (2) | The amended provisions of Article 20 (1) 2 (c) and (d) shall begin to apply to the first improvement plan (excluding amendments to an improvement plan) formulated as of February 1, 2012. |
| (3) | Notwithstanding paragraph (1), the amended provisions of Article 20 (1) 2 (c) shall apply to the promoters' committee approved for an improvement zone for which an improvement plan was formulated as at January 31, 2012. In such cases, "two years from the date of approval of a promoters' committee" in the amended provisions of the same item shall be construed as "four years from March 2, 2016, when the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13508) entered into force. |
Article 6 (Applicability to Methods for Implementing Redevelopment Projects)
The amended provisions of Article 23 (2) shall begin to apply to the first application filed to obtain authorization of a management and disposal plan after this Act enters into force. Article 7 (Applicability to Redevelopment Projects Implemented by Owners of Plots of Land or Structures)
The amended provisions of Article 25 (1) 2 shall apply where documents are made available first for public inspection for formulating an implementation plan after this Act enters into force. Article 8 (Applicability to Stamping of Consent Forms)
| (2) | Notwithstanding paragraph (1), if certain projects fall under any amended provision of Article 35 (2) through (5), the amended provisions shall apply to the projects for which a promoters' committee was approved first under the amended provisions of Article 31 (1) after July 28, 2016, when the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13912) entered into force. The Consent Forms of the persons consenting to a promoters' committee under the previous provisions in such cases shall be deemed valid under the amended provisions of Article 31 (2). |
Article 9 (Applicability to Payment of Interest Due to Delay in Cash Settlement with Persons Failing to Apply to Purchase Building Sites or Units)
The amended provisions of Articles 40 (1) and 73 (3) shall apply to the improvement projects for which authorization to establish an association (referring to authorization of a project implementation plan, where the owners of a plot of land or structure implements an urban environment improvement project pursuant to the amended provisions of Article 8 (3) of the same amended Act; or where the head of a Si/Gun/Gu directly implements an improvement project or the Korea Land and Housing Corporation or a local government-invested public corporation was designated as a project implementer under the amended provisions of Article 7 or 8 (4) of the same amended Act) was applied first as of August 2, 2012, when the Act on the Improvement of Urban Areas and Residential Environments (Act No. 11293) entered into force. Article 10 (Applicability to Authorization of Project Implementation Plans)
| (1) | The amended provisions of Article 50 (2) shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. |
| (2) | The amended provisions of Article 50 (4) shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. |
Article 11 (Applicability to Donation of Infrastructure)
The amended provisions of Article 51 shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. Article 12 (Applicability of Provisions Applying Mutatis Mutandis the Special Act on Public Housing) The amended provisions of Article 52 (2) shall begin to apply to the first application filed to obtain authorization of a project implementation plan (including authorization for amendment) after this Act enters into force. Article 13 (Applicability to Constructive Authorization or Permission under Other Statutes)
The amended provisions of Article 57 (1) 2 shall begin to apply to the first application filed to obtain authorization of a project implementation plan (including authorization for amendment) after this Act enters into force. Article 14 (Applicability to Special Provisions concerning Authorization of Project Implementation Plans)
The amended provisions of Article 58 (3) shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. Article 15 (Applicability to Formulation of Measures for Relocation)
Article 16 (Applicability to Request for Sale)
The amended provisions of Article 64 shall begin to apply to the first application filed to obtain authorization to establish an association or the designation of a project implementer after this Act enters into force. Article 17 (Applicability to Public Announcement of Building Sites or Units for Sale)
The amended provisions of Article 72 (1) shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. Article 18 (Applicability to Measures for Persons Failing to File Application to Purchase Building Sites or Units)
The amended provisions of Article 73 shall begin to apply to the first application filed to obtain authorization of a management and disposal plan after this Act enters into force: Provided, That the previous provisions shall apply to the petitions filed for adjudication under Article 30 (1) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects, notwithstanding the amended provisions of Article 73. Article 19 (Applicability to Timing for Compensation for Losses)
Article 20 (Applicability to Housing Supply)
Article 21 (Applicability to Vesting of Ownership of Fundamental Infrastructure)
The amended provisions of Article 97 (3) 4 shall begin to apply to the first application filed to obtain authorization of a project implementation plan after this Act enters into force. Article 22 (Applicability to Effect of Mediation in Disputes)
The amended provisions of Article 117 (6) shall begin to apply to the first application filed for mediation in a dispute after this Act enters into force. Article 23 (Applicability to Public Assistance and Disclosure of Information)
Article 118
Article 24 (Applicability to Use of Urban and Residential Environment Improvement Fund)
The amended provisions of Article 126 (3) 8 shall begin to apply to the first request filed for a safety inspection for expansion remodeling after this Act enters into force. Article 25 (General Transitional Measures)
Article 26 (Transitional Measures regarding Improvement Zones for Implementing Residential Environment Management Projects)
| (1) | Improvement zones designated and publicly notified under the previous Act on the Improvement of Urban Areas and Residential Environments to implement a residential environment management project before this Act enters into force shall be deemed residential environment improvement zones designated and publicly notified under this Act. |
| (2) | Improvement zones designated and publicly notified under the previous Act on the Improvement of Urban Areas and Residential Environments to implement a housing redevelopment project or an urban environment improvement project before this Act enters into force shall be deemed redevelopment zones designated and publicly notified under this Act. |
Article 27 (Transitional Measures regarding Residential Environment Management Projects)
Residential environment management projects, housing redevelopment projects, urban environment improvement projects and housing reconstruction projects, implemented with authorization to implement such projects under the previous Act on the Improvement of Urban Areas and Residential Environments as at the time this Act enters into force, shall be deemed residential environment improvement projects, redevelopment projects and reconstruction projects under this Act, respectively. Article 28 (Transitional Measures regarding Cash Payment in Lieu of Installation and Provision of Public Facilities)
Notwithstanding the amended provisions of Article 4 (10) of the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13912), the previous provisions shall apply to the improvement projects for which a management and disposal plan (including authorization for amendments) was authorized and to the improvement projects for which the authorization of such plan was applied, before July 28, 2016 when such amended Act entered into force. Article 29 (Transitional Measures regarding Cancellation of Improvement Zones Following Authorization for Completion)
If authorization for completion of a project was publicly notified (or if transfer of ownership was publicly notified in cases of an improvement project for which a management and disposal plan should be formulated) as at the time this Act enters into force, the relevant improvement zone shall be deemed canceled on the date this Act enters into force.
Article 30 (Transitional Measures regarding Methods for Implementing Improvement Projects)
Notwithstanding the amended provisions of Article 6 (2) and (3) of the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13912), the previous provisions shall apply to the redevelopment projects and reconstruction projects for which a management and disposal plan (including authorization for amendments) was authorized or an application for authorization of a management and disposal plan was made before January 27, 2016 when the amended provisions of Article 6 (2) and (3) of such amended Act entered into force. Article 31 (Transitional Measures regarding Eligibility Requirements for Association Members)
Notwithstanding the amended provisions of Article 39 (1) 3, the previous Act on the Improvement of Urban Areas and Residential Environments [referring to the Act in force prior to the partial amendment (Act No. 9444) to the Act on the Improvement of Urban Areas and Residential Environments] shall apply to the requirements for membership in an association for an improvement zone for which the establishment of an association was authorized under the amended provisions of Article 35 in either of the following cases: | 1. | Where a person acquired a plot of land or structure before January 1, 2011 from any person holding at least two of the following titles or rights: |
| (a) | The ownership of a plot of land; |
| (b) | The ownership of a structure; |
| (c) | The surface right in a plot of land; |
| 2. | Where any person holding at least two of the following titles or rights before January 1, 2011 transferred not more than two of such titles and rights (or three in cases of the owner of plots of land and structures registered as a rental business entity under Article 6 of the previous Rental Housing Act before the establishment of the relevant association was authorized; but limited to rental housing units) by December 31, 2012: |
| (a) | The ownership of a plot of land; |
| (b) | The ownership of a structure; |
| (c) | The surface right in a plot of land; |
Article 32 (Transitional Measures regarding Acquisition of Membership in Associations for Reconstruction Projects in High-Speculation Areas)
Notwithstanding the amended provisions of Article 19 (2) of the Act on the Improvement of Urban Areas and Residential Environments (Act No. 7056), the previous provisions shall apply to the persons who acquired a structure or plot of land from the owner of a plot of land or structure (limited to persons who acquired a structure or a plot of land before December 31, 2003), included in an improvement project for which the establishment of an association for a housing reconstruction and improvement project was authorized before December 31, 2003 on which such amended Act entered into force. Article 33 (Transitional Measures regarding Terms of Office of Executive Officers of Associations)
Article 34 (Transitional Measures regarding Disqualifications for Executive Officers of Associations and Management Entities Specialized in Improvement Projects)
Persons under adult guardianship or limited guardianship, referred to in the amended provisions of Articles 43 (1) 1 and 105 (1) 1, shall be deemed to include persons to whom the declaration of incompetence or quasi-incompetence remains in effect under Article 2 of the Addenda to the Civil Act (Act No. 10429). Article 35 (Transitional Measures regarding Selection of Appraisal Business Entities)
Article 36 (Transitional Measures regarding Utilization and Acquisition Price of Acquired Small-Sized Houses)
Notwithstanding the amended provisions of Article 30-3 (6) of the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13912), the previous provisions shall apply to the improvement projects, for which a management and disposal plan (including authorization for amendments) was authorized or application for the authorization of a management and disposal plan was made, before July 28, 2016 when such amended Act entered into force. Article 37 (Transitional Measures regarding Gratuitous Transfer of State or Public Land)
Notwithstanding the amended provisions of Article 68 of the Act on the Improvement of Urban Areas and Residential Environments (Act No. 13912), the previous provisions shall apply to the redevelopment projects, for which a management and disposal plan (including amendments to an amended plan) was approved or application for the authorization of a management and disposal plan was made, before July 28, 2016 when such amended Act entered into force. Article 37-2 (Transitional Measures regarding Restrictions on Application to Purchase Building Sites or Units in High-Speculation Areas)
Notwithstanding the amended provisions of Article 72 (6), the previous provisions in force as at the time the Act on the Improvement of Urban Areas and Residential Environments (Act No. 14943), took effect, shall apply to the persons who owned a plot of land or structure in a high-speculation area before such amended Act entered into force: Provided, That the foregoing shall not apply in the following cases: | 1. | Where the owner of a plot of land or structure and a person who belongs to such owner's household acquired a plot of land or structure in an improvement project zone within a high-speculation area after the Act on the Improvement of Urban Areas and Residential Environments (Act No. 14943), entered into force and were selected as eligible purchasers under Article 48 (1) 3 (a) of such amended Act, according to the management and disposal plan for the relevant improvement project; |
[This Article Newly Inserted on Oct. 24, 2017]
Article 38 (Transitional Measures regarding Change of Methods for Implementing Projects)
Notwithstanding the amended provisions of Article 123 (5), the previous provisions shall apply to applications filed to obtain authorization to implement a residential environment improvement project before this Act enters into force. Article 39 Omitted.
Article 40 (Relationship to Other Statutes)
Any citation of the previous Act on the Improvement of Urban Areas and Residential Environments or any provisions thereof by other statutes or regulations in force as at the time this Act enters into force shall be deemed a citation of this Act or the relevant provisions hereof in lieu of such previous provisions, if corresponding provisions exist herein.
ADDENDA <Act No. 14792, Apr. 18, 2017>
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. 14857, Aug. 9, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on 2/9/2018.
Article 2 (Applicability to Contracting Methods to Select Contractors)
Article 29
The amended provisions of Articles 29 and 32 shall begin to apply to the first contract to be executed after this Act enters into force: Provided, That the amended provisions shall begin to apply to the first contract or management entity specialized in improvement projects to be selected after this Act enters into force. Article 3 (Applicability to Verification of Validity of Management and Disposal Projects)
The amended provisions of Article 78 shall begin to apply to the first application filed to obtain authorization of a management and disposal plan after this Act enters into force. Article 4 (Applicability of Special Provisions concerning Persons Surrendering Themselves to Justice)
The amended provisions of Article 141 shall also apply to persons who surrendered and confessed to the relevant authorities before this Act enters into force. Article 5 (Transitional Measures concerning Penalty Provisions)
When penal provisions apply to any violation committed before this Act enters into force, the former provisions shall apply thereto.
ADDENDA <Act No. 14943, Oct. 24, 2017>
Article 1 (Enforcement Date)
Article 2 (Applicability to Restrictions on Becoming Members of Associations for Housing Redevelopment Projects or Urban Environment Improvement Projects)
The amended provisions of the main clause of Article 19 (2) shall begin to apply to the first application filed to obtain authorization to implement a project after such amended provisions enter into force. Article 3 (Applicability to Restrictions on Number of Houses Supplied by Housing Reconstruction Projects)
| (1) | The amended provisions of Article 48 (2) 7 (b) (i) shall begin to apply to the first application filed to obtain authorization to implement a project after such amended provisions enter into force. |
| (2) | Notwithstanding the amended provisions of Article 48 (2) 7 (b) (i), if several persons acquire and hold ownership in a plot of land or structure from one and the same owner of plots of land or structures within an area subject to adjustment designated under Article 63-2 (1) 1 of the Housing Act or within a high-speculation area, not in an over-concentration control area, before such amended provisions enter into force, the transferor and transferees may be supplied with one housing unit, respectively. |
Article 4 (Transitional Measures regarding Restrictions on Application to Purchase Building Sites or Units in High-Speculation Areas)
Notwithstanding the amended provisions of Article 46 (3), the previous provisions shall apply to the owners of a plot of land or structure in a high-speculation area before this Act enters into force: Provided, That the foregoing shall not apply in the following cases: | 1. | Where the owner of a plot of land or structure and a person who belongs to the owner's household acquires a plot of land or structure within an improvement project zone in a high-speculation area after this Act enters into force and are selected as eligible purchasers under Article 48 (1) 3 (a) according to the management and disposal plan for the relevant improvement project; |
| 2. | Where the owner of a plot of land or structure and a person who belongs to the owner's household are selected as eligible purchasers under Article 48 (1) 3 (b) according to the management and disposal plan for the relevant improvement project in a high-speculation area. |
Article 5 Omitted.
ADDENDA <Act No. 15022, Oct. 31, 2017>
Article 1 (Enforcement Date)
This Act shall enter into one year after the date of its promulgation.
Articles 2 through 15 Omitted.
ADDENDA <Act No. 15356, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 12 Omitted.
Article 13 (Transitional Measure according to Amendment of other Acts)
ADDENDA <Act No. 15489, Mar. 20, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 15676, Jun. 12, 2018>
This Article shall enter into force four months after the date of its promulgation.
ADDENDA <Act No. 16383, Apr. 23, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 19 (2), 35 (4), and 69 shall enter into force on the date of promulgation of this Act. Article 2 (Applicability to Verification of Construction Costs)
The amended provisions of Article 29-2 shall begin to apply to increases in construction costs or where project implementers request verification of construction costs in response to a request for verification by members of an association after this Act enters into force. Article 3 (Applicability to Qualifications and Grounds for Disqualification of Executive Officers of Associations)
The amended provisions of Articles 41 and 43 shall begin to apply to where executive officers of associations are appointed (including re-appointed) or where the special masters of associations are selected after this Act enters into force.
ADDENDA <Act No. 16493, Aug. 20, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Revocation of Registration of Management Business Specialized in Improvement Projects)
The amended provisions of Article 106 (3) shall begin to apply to where dispositions to revoke the registration or orders to suspend business operations are issued after this Act enters into force. Article 3 (Applicability to Investigation or Supervision)
The amended provisions of Articles 107 (1), and (3) through (5), 110 (2) and (3), 111 (2) and (3), and 113 (3) shall begin to apply to where, among other things, requests for investigation, supervision, or submission of materials are made after this Act enters into force.
ADDENDA <Act No. 17091, Mar. 24, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 17219, Apr. 7, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 17447, Jun. 9, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 7 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. 17459, Jun. 9, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 17689, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 17872, Jan. 5, 2021>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 112 and 138 (1) 6 shall enter into force six months after the date of promulgation of this Act.
ADDENDA <Act No. 17943, Mar. 16, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Consultation for Deemed Authorization or Permission)
The amended provisions of Article 85 (4) and (5) shall begin to apply to requests for consultation made after this Act enters into force. Article 3 Omitted.
ADDENDUM <Act No. 18046, Apr. 13, 2021>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 18310, Jul. 20, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 Omitted.
ADDENDUM <Act No. 18345, Jul. 27, 2021>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 18388, Aug. 10, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Separate Sentence of Punishment of Fine)
The amended provisions of Article 43-2 shall begin to apply to persons punished for criminal acts committed after this Act enters into force. Article 3 (Applicability to Resolutions at General Meetings)
The amended provisions of Articles 44 (4) and 45 shall begin to apply to general meetings convoked after this Act enters into force.
ADDENDA <Act No. 18522, Nov. 30, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Act No. 18830, Feb. 3, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Authorization of Management and Disposal Plans)
The amended provisions of Article 76 (1) 7 (c) shall begin to apply to applications filed to obtain an authorization of a management and disposal plan (excluding authorization for changes) after this Act enters into force.