RESTITUTION OF EXCESS REBUILDING GAINS ACT
Act No. 7959, May 24, 2006
Amended by Act No. 8852, Feb. 29, 2008
Act No. 9045, Mar. 28, 2008
Act No. 9102, Jun. 5, 2008
Act No. 9601, Apr. 1, 2009
Act No. 11589, Dec. 18, 2012
Act No. 11690, Mar. 23, 2013
Act No. 12958, Dec. 31, 2014
Act No. 12989, Jan. 6, 2015
Act No. 13805, Jan. 19, 2016
Act No. 13796, Jan. 19, 2016
Act No. 14567, Feb. 8, 2017
Act No. 14569, Feb. 8, 2017
Act No. 14719, Mar. 21, 2017
Act No. 17453, Jun. 9, 2020
Act No. 17485, Aug. 18, 2020
Act No. 17758, Dec. 29, 2020
Act No. 18315, Jul. 20, 2021
Act No. 19850, Dec. 26, 2023
The terms used in this Act are defined as follows: <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 8, 2017; Mar. 21, 2017; Jun. 9, 2020; Aug. 18, 2020; Jul. 20, 2021; Dec. 26, 2023>
| 2. | The term "normal increase in housing prices" means the amount calculated pursuant to Article 10; |
| 3. | The term "rebuilding charges" means the amount that the Minister of Land, Infrastructure and Transport imposes and collects in accordance with this Act out of the excess rebuilding gains; |
| 4. | The term "housing subject to imposition at the time the charges start to accrue" means housing that becomes object of a rebuilding project at the time the charges start to accrue pursuant to Article 8: Provided, That this may not apply to housing owned by the State or a public institution, etc. as prescribed by Presidential Decree; |
| 5. | The term "housing subject to imposition at the time the charges cease to accrue" means housing built under a rebuilding project at the time the charges cease to accrue pursuant to Article 8: Provided, That this may not apply to housing owned or acquired through rebuilding projects by the State, local governments, or public institutions, etc. as prescribed by Presidential Decree. |
| 6. | "Payment obligor" means a union, public implementer, trust business entity, residents' council, or union members under subparagraph 1. |
| Article 3 (Recapturing of Excess Rebuilding Gains) |
The Minister of Land, Infrastructure and Transport shall recapture excess rebuilding gains made from a rebuilding project as rebuilding charges, as prescribed by this Act. <Amended on Feb. 29, 2008; Mar. 23, 2013>
| Article 3-2 (Provisional Special Cases for Rebuilding Charges Exemption) |
[This Article Newly Inserted on Dec. 18, 2012]
| Article 4 (Distribution of Recaptured Money) |
| (1) | Pursuant to Article 3, 50/100 of rebuilding charges recaptured shall be reverted to the State, 30/100 thereof to the relevant Special Metropolitan City, Metropolitan City, or Do, 50/100 thereof to a Special Self-Governing City, or Special Self-Governing Province, and 20/100 thereof to the relevant Si/Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply), respectively. <Amended on Dec. 18, 2012; Jun. 9, 2020; Aug. 18, 2020> |
| (2) | The rebuilding charges reverted to the State pursuant to paragraph (1) shall devolve on the financial resources of the housing and urban fund (hereinafter referred to as "housing and urban fund") under the Housing and Urban Fund Act. <Amended on Jan. 6, 2015; Jun. 9, 2020> |
| (4) | The Minister of Land, Infrastructure and Transport shall provide the Special Metropolitan City, Metropolitan Cities, Special Self-Governing City, Dos, Special Self-Governing Province, and Sis/Guns/Gus with 50/100 of the funds reverted to the Housing and Urban Fund pursuant to paragraph (2), respectively, as funds for the Urban and Residential Environment Improvement Fund managed by a local government, special accounts for urban renewal acceleration, special accounts of national housing projects, or urban regeneration special accounts, in consideration of the following matters, and specific procedures and standards for support and other necessary matters shall be prescribed by Presidential Decree: <Amended on Feb. 29, 2008; Dec. 18, 2012; Mar. 23, 2013; Jan. 6, 2015; Jun. 9, 2020; Aug. 18, 2020> |
| 1. | A level of the establishment of residential infrastructure of each local government; |
| 2. | The results of evaluation of the actual conditions of residential welfare and efforts for the promotion of residential welfare of each local government; |
| 3. | Other matters prescribed by Presidential Decree. |
| (5) | Where necessary, the Minister of Land, Infrastructure and Transport may require the Special Metropolitan City Mayor, a Metropolitan City Mayor, the Mayor of Special Self-governing City, a Do Governor, the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) to report a management plan for and the conditions of management of the Urban and Residential Environment Improvement Fund, special accounts for urban renewal acceleration, special accounts of national housing projects, and urban regeneration special accounts. <Amended on Feb. 29, 2008; Dec. 18, 2012; Mar. 23, 2013; Aug. 18, 2020> |
| Article 5 (Projects Subject to Imposition of Rebuilding Charges) |
A rebuilding project under subparagraph 1 of Article 2 shall be subject to imposition of rebuilding charges. [This Article Wholly Amended on Aug. 18, 2020]
| Article 6 (Payment Obligors) |
| (1) | In order to undertake a rebuilding project, a union, public implementer, trust business entity, or a residents‘ council (hereinafter referred to as "union, etc.") shall be obliged to pay rebuilding charges, as prescribed by this Act: Provided, That where a union member who has purchased housing subject to imposition at the time the charges cease to accrue (in the case of a dissolution of a union, dissolution of a residents' council, or termination of a trust, referring to the union member at the time of the termination of levy) falls under the following cases, he or she shall be liable for the second payment: <Amended on Mar. 21, 2017; Jun. 9, 2020; Aug. 18, 2020; Jul. 20, 2021; Dec. 26, 2023> |
| 1. | Where the union is dissolved; |
| 2. | Where the union is short of funds, even though it appropriates its property for rebuilding charges, additional dues, etc. imposed on or payable by the union; |
| 2-2. | If the property of a public implementer is insufficient to cover the rebuilding charges, additional fees, etc. to be paid by the public implementer; |
| 3. | Where the trust is terminated; |
| 4. | Where the trust business entity is short of funds, even though it appropriates its property for rebuilding charges, additional dues, etc. payable by the trust property of the relevant rebuilding project. |
| 5. | When the residents' council is dissolved. |
| (2) | Where the trust business entity pays rebuilding charges pursuant to paragraph (1), it shall be liable to pay within the scope of the trust property of the relevant rebuilding project. <Newly Inserted on Mar. 21, 2017> |
| (3) | The unions, etc. obliged to pay rebuilding charges pursuant to paragraph (1) shall determine the estimated amount of rebuilding charges under Article 14 to be paid by each union member and the standard amount and apportionment ratio for rebuilding charges determined and imposed pursuant to Article 15 for each union member, in consideration of matters prescribed by Presidential Decree, such as the value of the former assets appraised for each union member, and specify them in a plan of management and disposition. <Amended on Mar. 21, 2017; Jun. 9, 2020; Dec. 26, 2023> |
| (4) | Liability for the second payment by union members under the proviso to paragraph (1) shall be limited to the amount calculated by applying the apportionment ratio in a management and disposition plan under paragraph (3) among rebuilding charges calculated pursuant to Article 12. <Amended on Mar. 21, 2017; Jun. 9, 2020; Aug. 18, 2020> |
| Article 7 (Standards for Imposition) |
A standard amount for imposition of rebuilding charges shall be the remainder after deducting the sum of the following amounts from the sum of the prices of housing subject to imposition at the time the charges cease to accrue (hereinafter referred to as "value of housing at the time the charges cease to accrue"): Provided, That the value of housing at the time the charges cease to accrue of housing for general sale among housing subject to imposition shall be the total amount calculated by reflecting the sum of the prices of sale of housing at the time of sale of housing and the value of housing for general sale unsold until the time the charges cease to accrue which is calculated under Article 9 (3): <Amended on Aug. 18, 2020> | 1. | The sum of the prices of housing subject to imposition at the time the charges start to accrue (hereinafter referred to as "value of housing at the time the charges start to accrue"); |
| 2. | The sum of the normal increases in prices of housing subject to imposition at the time the charges start to accrue during the period of imposition; |
| (1) | The time the charges start to accrue shall be the date on which an authorization for the establishment of a union is first obtained for the rebuilding project: Provided, That where all or part of a rebuilding project subject to imposition falls under any of the following subparagraphs, the date falling under any of the following subparagraphs shall be the time the charges start to accrue: <Amended on Feb. 8, 2017; Mar. 21, 2017; Jun. 9, 2020; Jul. 20, 2021; Dec. 26, 2023> |
| 1. | Deleted; <Dec. 26, 2023> |
| 2. | In case of a merger of unions, the date of authorization for the establishment of each union; |
| 2-2. | The date on which the public implementer is first designated and approved as the project implementer (limited to cases where authorization for the establishment of a union is not obtained); |
| 2-3. | The date of reporting the formation of a residents' council; |
| 3. | The date on which the trust business entity is first designated and approved as a project implementer (limited to cases where authorization for the establishment of a union is not obtained). |
| 4. | Any other date prescribed by Presidential Decree. |
| (2) | Notwithstanding the provisions of paragraph (1), where a period from the time the charges start to accrue to the time the charges cease to accrue is over 10 years, the date that falls 10 years from the time the charges cease to accrue by calculating back from the time the charges cease to accrue shall be the time the charges start to accrue. <Amended on Jun. 9, 2020> |
| (3) | The time the charges cease to accrue shall be the date of authorization for the completion of the relevant rebuilding project: Provided, That where all or part of a rebuilding project subject to imposition falls under any of the following subparagraphs, the date that falls under any of the following subparagraphs shall be the time the charges cease to accrue: <Amended on Feb. 8, 2017; Mar. 21, 2017; Jun. 9, 2020> |
| 1. | The date the completion of a rebuilding project is partially authorized under the related Acts and subordinate statutes; |
| 2. | The date the use of a building is commenced with authorization from a related administrative agency, etc.; |
| 3. | Any other date prescribed by Presidential Decree. |
| Article 9 (Calculation of Housing Prices) |
| (1) | The value of housing at the time the charges start to accrue under Article 7 shall be the value calculated by reflecting the normal increases in prices of housing from the base date for a public notice to the time the charges cease to accrue in the sum of housing prices subject to imposition publicly noticed (in cases of no housing prices publicly noticed, referring to housing prices as at the time the charges start to accrue that are calculated by the Minister of Land, Infrastructure and Transport according to the procedures prescribed in paragraph (3)) in accordance with the Act on the Public Announcement of Real Estate Values: Provided, That where a union member who owns ancillary facilities or welfare facilities under the Housing Act is supplied with the housing subject to imposition at the time of termination, the total price of the housing subject to imposition calculated pursuant to the main clause shall be added to the total price of ancillary facilities and welfare facilities evaluated and calculated by an appraisal corporation as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jan. 19, 2016; Jun. 9, 2020; Aug. 18, 2020; Feb. 3, 2022> |
| (2) | Notwithstanding paragraph (1), where rebuilding charges are determined and imposed pursuant to Article 15, such charges shall be the value adjusted by applying the ratio of the value of housing at the time the charges cease to accrue to the actual transaction price at the time the charges cease to accrue (referring to the appropriate price calculated by considering the actual transaction price of a similar complex nearby, if the actual transaction price is unavailable or insufficient) to the value of housing at the time the charges start to accrue under paragraph (1). In such cases, matters necessary for the calculation of the actual transaction price and the standards and methods for the application of the ratio shall be prescribed by Presidential Decree. <Newly Inserted on Aug. 18, 2020> |
| (3) | The value of housing at the time the charges cease to accrue under Article 7 shall be the value that the Minister of Land, Infrastructure and Transport decided upon after investigating and calculating the sum of housing prices as at the time the charges cease to accrue by entrustment to an institution specialized in investigation and calculation of real estate prices (hereinafter referred to as "institution specialized in investigation of real estate prices") and referring the sum to the Commission on the Public Announcement of Real Estate Values under the Act on the Public Announcement of Real Estate Values (hereinafter referred to as "public announcement committee of real estate values") for deliberation, as prescribed by Presidential Decree. In such cases, housing prices as at the time the charges cease to accrue that are calculated in accordance with the main clause shall be deemed housing prices publicly noticed pursuant to Article 16, 17, and 18 of the Act on the Public Announcement of Real Estate Values. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jan. 19, 2016; Jun. 9, 2020; Aug. 18, 2020> |
| Article 10 (Calculation of Normal Increases in Housing Prices) |
| (1) | The normal increases in housing prices referred to in subparagraph 2 of Article 7 shall be calculated by multiplying the value of housing at the time the charges start to accrue referred to in Article 9 (1) and (2) by the higher rate between the rate of interest on a fixed deposit noticed publicly by the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree and the average rate of increase in housing prices in a Special Self-Governing City, Special Self-Governing Province, and Si/Gun/Gu where the relevant rebuilding project site is located by the time the charges cease to accrue. <Amended on Feb. 29, 2008; Dec. 18, 2012; Mar. 23, 2013; Jun. 9, 2020; Aug. 18, 2020> |
| (2) | The average rate of increase in housing prices under paragraph (1) shall be calculated by a person entrusted by the Minister of Land, Infrastructure and Transport, making use of statistics on housing prices prepared with approval from the Statistics Korea pursuant to Article 89 of the Housing Act: Provided, That the Minister of Land, Infrastructure and Transport shall determine the average rate of increase in housing prices for the period before statistics on housing prices of a Special Self-Governing City, Special Self-Governing Province, and Si/Gun/Gu are collected after he or she makes an investigation and calculation by requesting an institution specialized in investigation of real estate prices to do so in consideration of the rate of fluctuation in standard market prices of the relevant Special Self-Governing City, Special Self-Governing Province, and Si/Gun/Gu, the rate of increase in housing prices approved by the Statistics Korea of a metropolitan government where the relevant Special Self-Governing City, Special Self-Governing Province and Si/Gun/Gu is located, etc., subject to the deliberation by the Commission on the Public Announcement of Real Estate Values. <Amended on Feb. 29, 2008; Dec. 18, 2012; Mar. 23, 2013; Jan. 19, 2016; Jun. 9, 2020; Dec. 26, 2023> |
| Article 11 (Calculation of Development Costs) |
| (1) | Development costs under subparagraph 3 of Article 7 shall be calculated by adding up each of the following amounts disbursed in connection with the undertaking of the relevant rebuilding project: <Amended on Dec. 18, 2012; Feb. 8, 2017; Mar. 21, 2017; Jun. 9, 2020> |
| 1. | The cost of construction, fees for design and supervision, incidental expenses, and other expenses; |
| 2. | Taxes and public charges that a payment obligor pays to the State or a local government in accordance with the provisions of the related Acts and subordinate statutes and the conditions of authorization, etc.; |
| 4. | Deleted; <Dec. 18, 2012> |
| 5. | Other matters prescribed by Presidential Decree. |
| (2) | Necessary matters concerning the methods of calculation under the subparagraphs of paragraph (1), etc. shall be prescribed by Presidential Decree. |
| Article 12 (Rate of Imposition) |
The amount of rebuilding charges that a payment obligor should pay shall be the amount calculated by applying the following rates of imposition to the amount given by dividing excess rebuilding gains calculated pursuant to Article 7 by the number of members of the relevant union: <Amended on Jun. 9, 2020; Dec. 26, 2023> | 1. | Where the average gains of the union members per person do not exceed 80 million won: Exempted; |
| 2. | Where average gains of the union members per person are more than 80 million won but not more than 130 million won: 10/100 of the amount exceeding 80 million won × the number of the union members; |
| 3. | Where the average gains per one union member exceeding 130 million won but not more than 180 million won: 5 million won x the number of union members ＋ 20/100 of the amount exceeding 130 million won x the number of the union members; |
| 4. | Where the average gains per one union member exceeding 180 million won but not more than 230 million won: 15 million won × the number of union members ＋ 30/100 of the amount exceeding 180 million won × the number of the union members; |
| 5. | Where the average gains per one union member exceeding 230 million won but not more than 280 million won: 30 million won × the number of union members ＋ 40/100 of the amount exceeding 230 million won × the number of the union members; |
| 6. | Where average gains of the union members per person exceed 280 million: 50 million won × the number of the union members ＋ 50/100 of the amount exceeding 280 million won × the number of union members. |
| Article 13 (Recognition of Amount of Capital Gains Tax as Development Costs) |
| (1) | Where a capital gains tax is imposed on income generated by transfer of a housing subject to imposition at the time the charges start to accrue (including a site; hereinafter the same shall apply) after the time the charges start to accrue under Article 8 (1) before this Act enters into force, notwithstanding the provisions of Article 11, the tax amount corresponding to the period from the time the charges start to accrue to the time of transfer, of the amount of the relevant capital gains tax, may be appropriated for development costs under the same Article. In such cases, a payment obligor shall include the amount of the capital gains tax that he or she intends to get deducted for and the grounds for the calculation thereof in a detailed statement of calculation of the deduction of the amount to be borne to be submitted pursuant to Article 20. <Amended on Jun. 9, 2020> |
| (2) | A method of assessing the amount of a capital gains tax appropriated for development costs pursuant to paragraph (1) shall be prescribed by Presidential Decree. <Amended on Jun. 9, 2020> |
| Article 14 (Notification of Estimated Amounts of Rebuilding Charges) |
| (1) | A payment obligor shall submit materials for the calculation of rebuilding charges under this Act to the Minister of Land, Infrastructure and Transport, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, according to the following classification: Provided, That in cases falling under subparagraph 1, where a construction contractor is not selected by the deadline, the deadline for submission of materials shall be extended by up to one month from the date of conclusion of a contract with a construction contractor: <Amended on Aug. 18, 2018; Dec. 26, 2023> |
| (2) | The Minister of Land, Infrastructure and Transport shall notify a payment obligor of the standards for imposition of rebuilding charges and the estimated amount thereof within 30 days (45 days, in cases of requesting an institution specialized in inspection of real estate values to verify the estimated amount of rebuilding charges pursuant to Article 22 (3)) from the date he or she receives materials pursuant to paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020; Aug. 18, 2018> |
| (3) | Where the Minister of Land, Infrastructure and Transport has notified an estimated amount of rebuilding charges pursuant to paragraph (2), he or she shall notify the payment obligor of estimated amounts of rebuilding charges by the end of January each year, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, by the time the charges cease to accrue. <Newly Inserted on Jul. 20, 2021> |
| Article 14-2 (Reduction of Rebuilding Charges) |
| (1) | If a member of a household (referring to members and their spouses and their family members living together with them as prescribed by Presidential Decree; hereinafter the same shall apply) that has a union member does not own a house (including a quasi-house prescribed by Presidential Decree; hereinafter the same shall apply) other than the house subject to a rebuilding project (including ancillary facilities or welfare facilities under Article 2 of the Housing Act; hereinafter referred to as “house subject to reconstruction”), and if the relevant union member has owned the house subject to reconstruction for six years or longer counted backward from the termination of imposition of the charges, the rebuilding charges corresponding to the amount calculated by multiplying the amount of charges under Article 12 which is to be shared by the relevant union member according to the sharing standards and ratio for each union member under Article 6 (3), by the ratio based on the holding period (limited to the period as a single-house owner) specified in the following subparagraphs shall be reduced. In this case, the union member shall be a single-house owner at the time of the end of the levy. |
| 1. | Holding period of not less than 6 years but less than 7 years: 10/100 |
| 2. | Holding period of not less than 7 years but less than 8 years: 20/100; |
| 3. | Holding period of not less than 8 years but less than 9 years: 30/100; |
| 4. | Holding period of not less than 9 years but less than 10 years: 40/100; |
| 5. | Holding period of not less than 10 years but less than 15 years: 50/100; |
| 6. | Holding period of not less than 15 years but less than 20 years: 60/100; |
| 7. | Holding period of not less than 20 years: 70/100. |
| (2) | The scope of other housing under paragraph (1) shall not include housing falling under any of the following subparagraphs: |
| 1. | A housing prescribed by Presidential Decree that is owned due to unavoidable reasons such as inheritance, marriage; |
| 2. | A house prescribed by Presidential Decree that is held for residential purposes during the implementation period of the rebuilding project; |
| 3. | Low-price housing prescribed by Presidential Decree in consideration of housing area, housing price, etc. |
| (3) | Where the rebuilding charges are reduced pursuant to paragraph (1), a person who owns a house referred to in paragraph (2) 1 or 2 shall dispose of the relevant house within the period prescribed by Presidential Decree. |
| (4) | In addition to the matters stipulated in paragraphs (1) through (3), necessary matters, such as specific standards and methods for reducing rebuilding charges for a single house owner shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 26, 2023]
| Article 15 (Determination and Imposition of Rebuilding Charges) |
| (1) | The Minister of Land, Infrastructure and Transport shall decide upon and impose rebuilding charges within 5 months from the time the charges cease to accrue: Provided, That if the rebuilding charges are reduced pursuant to Article 14-2, the rebuilding charges may be determined and imposed within 8 months from the end of the charges, and if a payment obligor requests the Minister of Land, Infrastructure and Transport to make an examination prior to giving notice pursuant to Article 16 (1), the Minister of Land, Infrastructure and Transport shall decide upon and impose rebuilding charges within one month from the date of written notification of the result thereof. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020; Aug. 18, 2018; Dec. 26, 2023> |
| (2) | Where the Minister of Land, Infrastructure and Transport intends to decide and impose rebuilding charges pursuant to paragraph (1), he or she shall notify a payment obligor of the standards for imposition and rebuilding charges in advance, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | Where the Minister of Land, Infrastructure and Transport reduces the rebuilding charges for a single house owner to a union owner who owns housing other than the housing subject to rebuilding for the grounds specified in Article 14-2 (2) 1 and 2, he/she shall also notify the deadline for disposing of the relevant house under Article 14-2 (3), as prescribed by Presidential Decree, upon determining and imposing the rebuilding charges under paragraph (1). <Newly Inserted on Dec. 26, 2023> |
| (4) | If a union member who has received reduction of rebuilding charges for a single-house owner fails to dispose of the relevant house in violation of the disposal deadline under Article 14-2 (3), the Minister of Land, Infrastructure and Transport shall collect rebuilding charges from the union member equivalent to the reduced amount by adding interests prescribed by Presidential Decree. <Newly Inserted on Dec. 26, 2023> |
| (5) | In addition to the matters stipulated in paragraphs (1) through (4), necessary matters, such as specific standards and methods for determining and imposing or reducing the rebuilding charges shall be prescribed by Presidential Decree. <Amended on Dec. 26, 2023> |
| Article 16 (Request for Examination Prior to Notification) |
| (1) | Where a payment obligor notified of rebuilding charges pursuant to Article 15 objects to such rebuilding charges, he or she may request the Minister of Land, Infrastructure and Transport to examine such rebuilding charges within 50 days from the date he or she is notified in advance (hereinafter referred to as "examination prior to notification"). <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (2) | Where a payment obligor intends to request an examination prior to notification, he or she shall submit a request for examination prior to notification in which matters prescribed by Presidential Decree are stated to the Minister of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (3) | The Minister of Land, Infrastructure and Transport in receipt of a request for examination prior to notification pursuant to paragraph (1) shall examine the rebuilding charges at issue within 30 days from the date of such request and notify the claimant of the result thereof in writing by stating matters prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (4) | Where the request for examination prior to notification under paragraph (1) relates to Articles 9 and 10, the Minister of Land, Infrastructure and Transport shall recalculate and impose rebuilding charges after verification by an institution specializing in investigation of real estate prices and deliberation by the Commission on the Public Announcement of Real Estate Values. In such cases, notwithstanding paragraph (3), he or she may extend the period of examination by up to 60 days. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jan. 19, 2016; Jun. 9, 2020> |
| Article 17 (Payment of Rebuilding Charges) |
| (1) | A payment obligor shall pay rebuilding charges within six months from the date of imposition. <Amended on Jun. 9, 2020> |
| (2) | Rebuilding charges shall be, in principle, paid in cash: Provided, That the payment by credit card, debit card, etc. (hereinafter referred to as "credit card, etc.") through the payment agency prescribed by Presidential Decree shall be made, or the payment by housing built and supplied by the relevant housing rebuilding project (hereinafter referred to as "payment in kind") may be recognized. <Amended on Mar. 21, 2017> |
| (3) | In cases where rebuilding charges is paid by the credit card, etc. according to the proviso to paragraph (2), the date of approval of the payment agency shall be deemed to be payment date. In such cases, matters necessary for the designation of payment agency, revocation of designation, charges and operation for payment execution as agent, etc. shall be prescribed by Presidential Decree. <Newly Inserted on Mar. 21, 2017> |
| (4) | The value of housing paid in kind pursuant to paragraph (2) shall be the greatest of the following prices. In such cases, the detailed standards and procedures for payment in kind, the standards, methods, etc. for calculating prices, and other necessary matters shall be prescribed by Presidential Decree: <Amended on Aug. 18, 2020> |
| 1. | A price calculated by applying Article 9 (3) mutatis mutandis; |
| 2. | A sale price of housing for general sale of the same type of supply at the time of sale: Provided, That where there is no housing for general sale of the same type of supply, it means the price calculated by reflecting the unit price of housing for general sale per area of the adjacent type of supply. |
| (5) | Notwithstanding Article 4, housing paid in kind pursuant to paragraph (2) shall be reverted to the Housing and Urban Fund, and the Minister of Land, Infrastructure and Transport shall manage housing paid in kind so that they may contribute to improving housing security and stabilizing the housing market. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jan. 6, 2015; Mar. 21, 2017; Jun. 9, 2020> |
| Article 17-2 (Deferment of Payment of Rebuilding Charges) |
| (1) | If a union member satisfies all of the following requirements and applies for a deferral of payment of the rebuilding charges to be shared by the union member, the Minister of Land, Infrastructure and Transport may grant permission. In this case, the union member applying for payment deferral shall provide collateral equivalent to the rebuilding charges to be deferred. |
| 1. | The person shall be a single house owner at the time of termination of imposition; |
| 2. | The person shall be at least 60 years of age at the time the imposition is terminated. |
| (2) | When the Minister of Land, Infrastructure and Transport receives an application pursuant to paragraph (1), he/she shall notify the payment obligor and the relevant union member of whether payment deferral is permitted, as prescribed by Presidential Decree. |
| (3) | The Minister of Land, Infrastructure and Transport shall revoke the permission for deferment of payment, if any union member whose payment of rebuilding charges is deferred pursuant to paragraph (1) falls under any of the following subparagraphs: |
| 1. | Where all or part of the relevant house is transferred to another person (regardless of the cause such as sale, gift, exchange); |
| 2. | Where inheritance begins upon death; |
| 3. | Where the person no longer satisfies the requirements for a single house owner; |
| 4. | Where the person fails to comply with an order given by the Minister of Land, Infrastructure, and Transport to change the security or otherwise to secure the collateral; |
| 6. | Where the person intends to pay the rebuilding charges the payment of which is deferred. |
| (4) | If deferral of payment is permitted pursuant to paragraph (1), the extinctive prescription on the right to collect the relevant rebuilding charges shall not run during the payment deferral period. |
| (5) | If the Minister of Land, Infrastructure and Transport revokes permission for deferral of payment of rebuilding charges pursuant to paragraph (3), he/she shall collect rebuilding charges the payment of which is deferred from the relevant payment obligors as prescribed by Presidential Decree by adding interests prescribed by Presidential Decree: Provided, That in the case of paragraph (3) 2, he/she shall be obligated to make the payment within the limit of the property received by inheritance. |
| (6) | The Minister of Land, Infrastructure and Transport shall not impose additional charges due to payment deferral during the period from the date on which the payment deadline expires to the date of public notice of rebuilding charges to be collected pursuant to paragraph (5), after granting permission for deferment of payment under paragraph (1). |
| (7) | Except as provided in paragraphs (1) through (6), necessary matters such as procedures for deferment of payment shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 26, 2023]
| Article 18 (Collection of Rebuilding Charges) |
Except as prescribed by this Act, Articles 15 through 17, 19 through 23, and 26 of the Restitution of Development Gains Act shall apply mutatis mutandis to the payment and collection of rebuilding charges, such as notification of payment of rebuilding charges, the extension of payment, payment in installments, methods of collection, special cases on administrative appeal, etc.: Provided, That Article 7 of the National Tax Collection Act shall apply mutatis mutandis to notification of payment to the union members liable for the second payment. <Amended on Mar. 28, 2008; Dec. 29, 2020>
| Article 19 (Advance Collection and Deposit of Rebuilding Charges) |
| (1) | A payment obligor may collect all or part of the estimated amount of rebuilding charges under Article 14 from the union members in advance according to a plan of management and disposition. <Amended on Jun. 9, 2020> |
| (2) | A payment obligor may collect rebuilding charges in advance and deposit them only in an account designated by the Minister of Land, Infrastructure and Transport pursuant to paragraph (1), and necessary matters concerning the opening and management of the account, etc. shall be prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (3) | Where a payment obligor intends to collect and deposit rebuilding charges in advance pursuant to paragraph (1), he or she shall give the union members notice for payment clearly specifying matters prescribed by Presidential Decree, such as standards for apportionment of charges for each member, the estimated amount of charges, the account number, etc. <Amended on Jun. 9, 2020; Jul. 20, 2021> |
| (4) | The Minister of Land, Infrastructure and Transport may impose rebuilding charges after subtracting the amount calculated by adding interest equivalent to double the rate of interest on a fixed deposit announced publicly pursuant to Article 10 to the amount deposited prior to imposition pursuant to paragraph (2) from rebuilding charges decided upon pursuant to Article 15, and specific matters, such as a method of calculating interest, etc., shall be prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 20 (Obligation to Submit Materials) |
A payment obligor shall submit a detailed statement necessary for the calculation of development costs, etc. under Article 11 and for the deduction of charges under Article 13, and documents certifying a single house owner under Article 14-2 and documents for confirming the current status of housing ownership to the Minister of Land, Infrastructure and Transport according to the following classification within one month following the time the charges cease to accrue, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport: <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 21, 2017; Jun. 9, 2020; Aug. 18, 2020; Dec. 26, 2023> | 3. | In cases falling under the subparagraphs of Article 8 (3). |
| Article 21 (Notification of Materials) |
| (1) | An administrative agency that grants authorization, etc. on a housing rebuilding project shall notify the Minister of Land, Infrastructure and Transport of such fact within 15 days from the date it grants such authorization, etc. <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 21, 2017> |
| (2) | Where the Minister of Land, Infrastructure and Transport imposes rebuilding charges, he or she shall notify the Commissioner of the National Tax Service of matters concerning the project subject to rebuilding charges, the payment obligors, the amount imposed, the period of the project, and the date of imposition, etc. within 15 days from the date of imposition, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| Article 22 (Delegation of Authority) |
| (1) | The Minister of Land, Infrastructure and Transport may delegate his or her authority regarding decision, imposition, and collection of rebuilding charges under this Act to a Mayor/Do Governor or the head of a Si/Gun/Gu, as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 9, 2020> |
| (2) | A Mayor/Do Governor or the head of a Si/Gun/Gu may appropriate expenses incurred in decision, imposition, and collection of rebuilding charges pursuant to paragraph (1) for rebuilding charges reverted to the relevant local government pursuant to Article 4. <Amended on Jun. 9, 2020> |
| (3) | A Mayor/Do Governor or the head of a Si/Gun/Gu delegated with authority pursuant to paragraph (1) may request verification from an institution specialized in investigation of real estate prices, as prescribed by Presidential Decree, if necessary for notifying the estimated amount of rebuilding charges under Article 14, verifying a single house owner under Article 14-2, and determining and imposing rebuilding charges under Article 15. <Newly Inserted on Aug. 18, 2020; Dec. 26, 2023> |
| Article 23 (Penalty Provisions) |
| (1) | A person who commits an act falling under any of the following subparagraphs for the purpose of evading or reducing rebuilding charges or for the purpose of having others evade or reduce rebuilding charges shall be punished by imprisonment for not more than three years or by a fine not exceeding three times the rebuilding charges he or she has evaded or reduced or intends to evade or reduce: <Amended on Apr. 1, 2009> |
| 1. | A person who enters into a false contract; |
| 2. | A person who submits a false statement under Article 20. |
| (2) | If the representative of a corporation or an agent, an employee or any other worker of the corporation or an individual commits an offense under paragraph (1) regarding the business of the corporation or individual, not only the offender shall be punished but the corporation or individual shall also be punished by a fine under paragraph (1): Provided, That this shall not apply to cases where the corporation or individual has not neglected to exercise due diligence and supervision for the related business in order to prevent such offense. <Amended on Apr. 1, 2009> |
| Article 24 (Administrative Fines) |
| (1) | A person who fails or neglects to submit a detailed statement under Article 20 shall be punished by an administrative fine falling under any of the following subparagraphs: <Amended on Apr. 1, 2009; Jun. 9, 2020> |
| 1. | Where he or she fails or neglects to submit a detailed statement for a period (hereinafter referred to as "period of neglect") of not less than one month but less than two months from the expiration date: Not more than the amount equivalent to 1/100 of rebuilding charges; |
| 2. | Where a period of neglect is not less than two months but less than six months: Not more than the amount equivalent to 2/100 of rebuilding charges; |
| 3. | Where a period of neglect is not less than six months but less than 12 months: Not more than the amount equivalent to 4/100 of rebuilding charges; |
| 4. | Where a period of neglect is not less than 12 months: Not more than the amount equivalent to 8/100 of rebuilding charges. |
| (2) | The Minister of Land, Infrastructure and Transport shall impose and collect administrative fines under paragraph (1), as prescribed by Presidential Decree. <Amended on Feb. 29, 2008; Apr. 1, 2009; Mar. 23, 2013> |
| (3) | Deleted. <Apr. 1, 2009> |
| (4) | Deleted. <Apr. 1, 2009> |
| (5) | Deleted. <Apr. 1, 2009> |
ADDENDA <Act No. 7959, May 24, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Article 2 (Transitional Measures)
| (1) | This Act shall apply with regard to a rebuilding project for which approval of a plan of management and disposition is filed for the first time on or after the date this Act enters into force. |
| (2) | Charges for a project under paragraph (1) shall be calculated for the entire period of undertaking of the project including the period of undertaking of the project before this Act enters into force, and the amount corresponding to the period of undertaking of the project after this Act enters into force shall be imposed, apportioning based on the date this Act enters into force. |
| (3) | A payment obligor who has obtained approval for the undertaking of a project as of the date this Act enters into force shall submit materials necessary for the calculation of rebuilding charges to the Minister of Land, Transport and Maritime Affairs within one month from the date this Act enters into force pursuant to Article 14. |
Article 3 (Special Cases concerning Collection of Rebuilding Charges)
Article 4 Omitted.
Article 4 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9045, Mar. 28, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 9102, Jun. 5, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 9601, Apr. 1, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11589, Dec. 18, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Provisional Special Cases for Rebuilding Charges Exemption)
The amended provision of Article 3-2 shall also apply to any project filing an application for authorization of management and disposal plans before this Act enters info force where rebuilding charges are not imposed to the project and four months have not passed from the time the charges cease to accrue at the time this Act enters into force. Article 3 (Applicability to Distribution of Recaptured Money)
The amended provision of Article 4 (1) shall begin applying to the rebuilding charges recaptured after this Act enters into force.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12958, Dec. 31, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Provisional Special Cases for Rebuilding Charges Exemption)
The amended provision of Article 3-2 shall, as the project that has filed an application for authorization of management and disposal plans before this Act enters into force, also apply to the project whose time the charges cease to accrue on rebuilding charges arrives after this Act enters into force.
ADDENDA <Act No. 12989, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2015.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13796, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on September 1, 2016.
Article 2 Omitted.
Article 3 Omitted.
Article 4 Omitted.
ADDENDA <Act No. 13805, Jan. 19, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on August 12, 2016.
Articles 2 through 22 Omitted.
ADDENDA <Act No. 14567, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 40 Omitted.
ADDENDA <Act No. 14569, Feb. 8, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 14719, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That Article 3 of addenda shall enter into force from February 9, 2018. Article 2 (Applicability to Imposition of Rebuilding Charges on Trust Business Entities)
| (1) | The amended provisions of Article 6 (1) shall begin to apply to rebuilding projects for which an application for the authorization for a management and disposition plan is filed after this Act enters into force. |
| (2) | The rebuilding charges under paragraph (1) shall be calculated by including the period of undertaking of the project before this Act enters into force, and the amount corresponding to the period of undertaking of the project after this Act enters into force shall be imposed, apportioning the first calculated amount on the basis of the date this Act enters into force. |
Article 3 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. 17485, Aug. 18, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 9 (2) and 22 (3) shall enter into force six months after the date of its promulgation. Article 2 (Applicability to Calculation of Value of Housing)
The amended provisions of Article 9 (2) shall begin to apply to rebuilding projects for which rebuilding charges are determined and imposed after this Act shall enter into force.
ADDENDA <Act No. 17758, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Articles 2 through 25 Omitted.
ADDENDA <Act No. 18315, Jul. 20, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 2, 6, and 8 shall enter into force three months after the date of its promulgation; and the amended provisions of Article 14 (3), six months after the date of its promulgation. Article 2 (Applicability to Imposition of Rebuilding Charges on Public Implementers)
| (1) | The amended provisions of Article 6 (1) shall begin to apply to rebuilding projects for which an application for the authorization for a management and disposition plan is filed after this Act enters into force. |
| (2) | The rebuilding charges under paragraph (1) shall be calculated by including the period of undertaking of the project before this Act enters into force, and the amount corresponding to the period of undertaking of the project after this Act enters into force shall be imposed, apportioning the first calculated amount on the basis of the date this Act enters into force. |
Article 3 (Applicability to Notification of Estimated Amounts of Rebuilding Charges)
The amended provisions of Article 14 (3) shall begin to apply to rebuilding projects for which the estimated amount of rebuilding charges is notified pursuant to Article 14 (2) on or after the date this Act enters into force.
ADDENDUM <Act No. 188333, Feb. 3, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Calculation of Value of Auxiliary Facilities and Welfare Facilities)
The amended provisions of Article 9 (1) shall begin to apply where rebuilding charges are determined and imposed after this Act enters into force.
ADDENDA <Act No. 19850, Dec. 26, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (General Applicability)
This Act shall begin to apply to rebuilding projects for which rebuilding charges are determined and imposed after this Act enters into force.
Article 3 (Special Cases concerning Determination and Deadline for Imposition of Rebuilding Charges)
Notwithstanding the main clause of Article 15 (1), rebuilding charges may be determined and imposed within five months from the date of enforcement of this Act for rebuilding projects for which the period of rebuilding charges is terminated before this Act enters into force.