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ACT ON THE COMPENSATION AND SUPPORT FOR AREAS ADJACENT TO TRANSMISSION AND SUBSTATION FACILITIES

Act No. 12356, Jan. 28, 2014

Amended by Act No. 12738, jun. 3, 2014

Act No. 14994, Oct. 31, 2017

Act No. 16941, Feb. 4, 2020

Act No. 17893, Jan. 12, 2021

Act No. 18407, Aug. 17, 2021

Act No. 19167, Jan. 3, 2023

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to promote the stability of electricity supply and demand, and to contribute to developing the national economy and regional communities by implementing compensation and support programs for areas adjacent to electric power transmission and substation facilities.
 Article 2 (Definitions)
The terms used in this Act are defined as follows: <Amended on Feb. 4, 2020; Jan. 12, 2021; Jan. 3, 2023>
1. The term "transmission and substation facilities" means the electric power system for transmitting and distributing electric power, such as transmission towers, power lines and substations;
2. The term "areas adjacent to transmission and substation facilities" means the following areas: Provided, That where the boundaries of areas adjacent to transmission and substation facilities pass through a certain residential area, such as a Ri for administrative purposes under Article 7 (4) of the Local Autonomy Act, the Minister of Trade, Industry and Energy may determine the range of areas adjacent to transmission and substation facilities, following deliberation by the deliberative committee on support to adjacent areas under Article 6, taking into account the geographical conditions, living conditions, etc.:
(a) The term "areas adjacent to a power transmission line" means the areas of a ship transmitting line with a voltage of at least 345,000 volts, which passes through the ground line, and the scope thereof shall be as follows:
(i) A 765,000-volt power transmission line: Areas within 1,000 meters each from the outermost lines on both sides of the transmission line;
(ii) A 500,000-volt power transmission line: Areas within 800 meters each from the outermost lines on both sides of the transmission line;
(iii) A 345,000-volt power transmission line: Areas within 700 meters each from the outermost lines on both sides of the transmission line;
(b) The term "areas adjacent to a substation" means a neighboring area of an outdoor substation with a voltage of at least 345,000 volts, the scope of which shall be as follows:
(i) A 765,000-volt substation: An area within an 850-meter radius from the external boundary;
(ii) A 500,000-volt substation: An area within an 800-meter radius from the external boundary;
(iii) A 345,000-volt substation: An area within a 600-meter radius from the external boundary;
3. The term "area for financial compensation" means an area affected in terms of property by the construction of overhead power lines, and the scope thereof shall be as follows: Provided, That the foregoing shall not apply to an area to which compensation under Article 90-2 of the Electric Utility Act applies, and to real estate under Article 5 of the State Property Act and Article 4 of the Public Property and Commodity Management Act:
(a) A 765,000-volt power transmission line: Areas within 33 meters each from the outermost lines on both sides of the transmission line;
(b) A 500,000-volt power transmission line: Areas within 20 meters each from the outermost lines on both sides of the transmission line;
(c) 345,000 lines for power transmission: Areas within 13 meters each from the outermost lines on both sides of the transmission line;
4. The term "area for claims for purchase, etc. of housing" means an area affected in terms of residence and scenery by the construction of overhead power transmission lines, and the scope thereof shall be as follows; in such cases, "housing" means housing defined in subparagraph 1 of Article 2 of the Housing Act:
(a) A 765,000-volt power transmission line: Areas within 180 meters each from the outermost lines on both sides of the transmission line;
(b) A 500,000-volt power transmission line: Areas within 100 meters each from the outermost lines on both sides of the transmission line;
(c) A 345,000-volt power transmission line: Areas within 60 meters each from the outermost lines on both sides of the transmission line;
5. The term "business entity" means an electricity generation business entity and an electric transmission business entity under Article 2 of the Electric Utility Act, and a person who owns the electric power transmission and substation facilities at voltages of more than 345,000 volts among electric installations for private use prescribed in subparagraph 19 of that Article.
6. The term "improvement of a residential environment" means activities of extension, alteration, substantial repair, etc. of a house, which is performed for purposes such as arresting its deterioration and improving the functions thereof.
 Article 3 (Obligations to Cooperate)
The State, local governments and business entities shall mutually cooperate in order to efficiently implement compensation and support programs for areas adjacent to transmission and substation facilities.
CHAPTER II CLAIMS FOR FINANCIAL COMPENSATION AND PURCHASE OF HOUSING
 Article 4 (Claims for Financial Compensation for Land)
(1) Where land owned by a landowner belongs to an area for financial compensation, the landowner may file a claim for financial compensation with a business entity.
(2) A landowner and a business entity shall determine the amount of financial compensation through mutual consultation. In such cases, criteria for, the range of compensation, etc. for holding consultations shall be prescribed by Presidential Decree, based on the level of compensation under Article 90-2 of the Electric Utility Act.
(3) The period of filing a claim under paragraph (1) shall be from the date of approval of an implementation plan of an electric power source development project under Article 5 of the Electric Power Source Development Promotion Act until two years after the date of completion of the construction of the relevant project (referring to the time when the pre-use inspection under Article 63 of the Electric Utility Act is complete). In such cases, a business entity shall notify the relevant landowner of the completion of construction.
(4) Where a business entity or a landowner fails to reach an agreement under paragraph (2), he or she may file an application for adjudication with the competent Land Tribunal under Article 51 of the Act on Acquisition of and Compensation for Land for Public Works Projects.
(5) Except as provided in this Act, Articles 8, 17, 63, 64, 75 and 83 through 85 of the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply mutatis mutandis to compensation under paragraphs (1) through (3).
 Article 5 (Claims for Purchase of Housing)
(1) Where housing owned by a homeowner belongs to an area for claims for purchase, etc., of housing, the homeowner may file any of the following claims with the business entity: Provided, That where a homeowner who intends to file a claim provided in subparagraph 1 is different from the landowner, the homeowner and the landowner shall jointly file such claim: <Amended on Jun. 3, 2014; Jan. 3, 2023>
1. Purchasing the relevant housing and its site [referring to land categorized as site according to the classification of land categories under Article 67 (1) of the Act on the Establishment and Management of Spatial Data;
2. Providing subsidies to cover expenses incurred in improving the residential environment of the relevant housing.
(2) Where a claim for purchase is filed under paragraph (1) 1, a business entity shall purchase the relevant housing and its site as if they are incorporated into an electric power source development project area specified in Article 5 (3) 2 of the Electric Power Source Development Promotion Act. In such cases, where the Income Tax Act or the Corporate Tax Act applies, the housing and site purchased shall be deemed acquired by expropriation under the Act on Acquisition of and Compensation for Land for Public Works Projects. <Amended on Jan. 3, 2023>
(3) The value and scope of the purchase of housing under paragraph (1) 1 shall be determined through consultation between the homeowner and the business entity. In such cases, specific matters regarding consultation, such as the scope of a claim for the purchase of housing, housing which homeowners are eligible to file a claim for the purchase of, and standards for calculating the purchase price, shall be prescribed by Presidential Decree. <Amended on Jan. 3, 2023>
(4) Specific matters regarding the criteria for calculating the amount of subsidies to cover expenses incurred in improving the residential environment under paragraph (1) 2 shall be prescribed by Presidential Decree. <Newly Inserted on Jan. 3, 2023>
(5) Article 4 (3) through (5) shall apply mutatis mutandis to the period of filing a claim for the purchase of housing, procedures for filing an objection under paragraph (1), and other procedures. <Amended on Jan. 3, 2023>
[Title Amended on Jan. 3, 2023]
CHAPTER III SUPPORT TO AREAS ADJACENT TO TRANSMISSION AND SUBSTATION FACILITIES
 Article 6 (Deliberative Committee on Support to Adjacent Areas)
(1) The deliberative committee on support to adjacent areas (hereinafter referred to as the "Deliberative Committee") shall be established in the Ministry of Trade, Industry and Energy in order to deliberate on important matters concerning support to areas adjacent to transmission and substation facilities.
(2) The Review Committee shall deliberate on the following:
1. A support program plan under Article 7;
2. Matters concerning the determination of the range of areas adjacent to transmission and substation facilities under the proviso of subparagraph 2 of Article 2;
3. Matters concerning the suspension of support programs for areas adjacent to transmission and substation facilities under Article 9 (3);
4. Matters concerning consultation in relation to support to areas adjacent to transmission and substation facilities and the promotion of the provision of support;
5. Other matters prescribed by Presidential Decree, which are necessary for support to areas adjacent to transmission and substation facilities.
(3) Specific matters concerning the composition, functions, operation, etc. of the Deliberative Committee shall be prescribed by Presidential Decree.
 Article 7 (Support Program plan)
(1) A business entity shall annually formulate a support program plan for areas adjacent to transmission and substation facilities (hereinafter referred to as "support program plan") after collecting opinions of their residents.
(2) A business entity shall obtain approval of a support program plan from the Minister of Trade, Industry and Energy, following deliberation by the Deliberative Committee.
(3) Details of a support program plan and necessary matters concerning the procedures for formulating a support program plan shall be prescribed by Presidential Decree.
 Article 8 (Types of Support Programs)
(1) Types of support programs for areas adjacent to transmission and substation facilities shall be as follows:
1. A support program for residents: A program that directly provides support to residents, such as subsidizing a certain amount of the electric utility bill to households;
2. A welfare program for residents: A program that provides support for the construction of facilities to promote convenience and the improvement of the residential environment;
3. An income increase program: A program that provides support for enterprises and cooperatives jointly operated by residents and facilities storing and selling products made by residents in order to increase income of residents;
4. A scholarship program: A program to reserve a scholarship fund and to provide a dormitory, etc.;
5. Other programs necessary to promote the development, improvement of the environment, safety management, health of residents of areas adjacent to transmission and substation facilities and electric power resource development.
(2) The expenses for a support program for residents referred to in paragraph (1) 1 shall not exceed 50/100 of the total amount of the financial support for each region under Article 10 (3) 2: Provided, That where all residents eligible for a resident support program reach an agreement, it may be determined otherwise, as prescribed by Presidential Decree. <Newly Inserted on Aug. 17, 2021>
(3) Matters necessary for the details of support by type of support programs under paragraph (1), areas subject to support programs, an implementation period, methods of providing support, etc. shall be prescribed by Presidential Decree.
 Article 9 (Implementation and Suspension of Support Programs)
(1) Any of the following persons (hereinafter referred to as "person who implements support programs") shall implement support programs, as prescribed by Presidential Decree:
1. Business entities;
2. The Special Self-Governing Province Governor, the Special Self-Governing City Mayor or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu) having jurisdiction over areas adjacent to transmission and substation facilities.
(2) A business entity shall implement support programs from the date he or she obtains approval of a support program plan from the Minister of Trade, Industry and Energy.
(3) Where it is deemed that a business entity does not have to continue support programs because the operation of transmission and substation facilities has been suspended for at least three years, the Minister of Trade, Industry and Energy may require the business entity to suspend the relevant support programs, following deliberation by the Deliberative Committee.
 Article 10 (Financial Resources and Determination of Financial Support)
(1) A business entity shall bear expenses incurred in implementing support programs: Provided, That where a business entity who owns and operates transmission and substation facilities is different from the business entity who uses such transmission and substation facilities, the business entity who uses the transmission and substation facilities shall bear expenses incurred in implementing support programs for areas adjacent to the relevant transmission and substation facility.
(2) Where it is difficult to guarantee the stability and sustainability of support programs with a business entity's funds only, the business entity may bear some of the expenses incurred in implementing support programs with the Electric Power Industry Infrastructure Fund under Article 48 of the Electric Utility Act (hereafter in this Article referred to as the "Fund"), as prescribed by Presidential Decree.
(3) Financial support provided for support programs from the financial resources of a business entity or the Fund under paragraphs (1) and (2) (hereinafter referred to as "financial support") shall be classified as follows: <Amended on Aug. 17, 2021>
1. Financial support provided by each business entity: Total amount of the financial support provided by each business entity to areas adjacent to transmission and substation facilities;
2. Financial support provided to each area: Total amount of financial support provided by each business entity to the relevant area adjacent to transmission and substation facilities, which is allocated to its individual districts prescribed by Presidential Decree.
(4) Standards for determining financial support shall be prescribed by Presidential Decree, in consideration of the characteristics of transmission and substation facilities and the areas adjacent thereto, the type and nature of an individual support program, etc. <Newly Inserted on Aug. 17, 2021>
 Article 11 (Management and Withdrawal of Financial Support)
(1) A person who implements support programs shall manage financial support separate from other funds.
(2) Where support programs are suspended pursuant to Article 9 (3), the Minister of Trade, Industry and Energy or a business entity may withdraw financial support yet to be implemented among financial support already provided or may choose not to provide the amount equivalent to financial support yet to be implemented where support programs are resumed.
(3) Where a person who implements support programs under Article 9 (1) 2 fails to provide the relevant financial support within the relevant fiscal year, the Minister of Trade, Industry and Energy or a business entity may withdraw the relevant financial support.
(4) A person who implements support programs shall carry interest accruing on the management of financial support under paragraph (1) forward to the next year after the closing of accounts in each fiscal year and use such interest in the next year.
(5) Specific matters concerning the procedures for managing and withdrawing financial support under paragraphs (1) through (4) shall be prescribed by Presidential Decree.
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 12 (Statement of Accounts)
A person who implements support programs shall annually prepare an annual report on support programs and submit the annual report to the Minister of Trade, Industry and Energy by February 10 of the next year.
 Article 13 (Reporting and Inspection)
Where necessary for the enforcement of this Act, the Minister of Trade, Industry and Energy may require a person who implements support programs to file a report or to submit data, and require public officials under his or her jurisdiction to examine the affairs concerning support programs.
 Article 14 (Administrative Fines)
(1) Where a person who implements support programs falls under any of the following, the person shall be subject to an administrative fine not exceeding five million won:
1. Where the person fails to file a report under Article 13 or files a false report;
2. Where the person fails to submit data under Article 13 or submits false data;
3. Where the person refuses, interferes with or avoids an examination under Article 13.
(2) The Minister of Trade, Industry and Energy shall impose and collect administrative fines under paragraph (1), as prescribed by Presidential Decree.
ADDENDA <Act No. 12356, Jan. 28, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Financial Compensation and Claims for Purchase of Houses)
Financial compensation under Article 4 and claims for the purchase of houses under Article 5 shall also apply to areas eligible for financial compensation and areas where residents are eligible to file claims for the purchase of houses, in which cases two years have not passed after pre-use inspection under Article 63 of the Electric Utility Act was complete at the time this Act is promulgated, for one year after this Act enters into force.
ADDENDA <Act No. 12738, Jun. 3, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted).
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 14994, Oct. 31, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 16941, Feb. 4, 2020>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 17893, Jan. 12, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 23 Omitted.
ADDENDUM <Act No. 18407, Aug. 17, 2021>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 19167, Jan. 3, 2023>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Expenses Incurred in Improving Residential Environment)
The amended provisions of Article 5 (1) 2 shall begin to apply to projects that have obtained approval for their execution plan for electric power source development project under Article 5 of the Electric Power Source Development Promotion Act after this Act enters into force.