Act On Special Measures For Facilitating The Supply Of Land-Leasehold Housing Units


Published: 2011-08-04

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 Article 1 (Purpose)   print
The purpose of this Act is to provide for matters necessary for facilitation of the supply of land-leasehold housing units to contribute to the reduction of housing expenses and stabilization of housing for the working class by smoothly promoting land-leasehold housing projects.
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows:
1. The term "housing unit" means multi-unit housing under subparagraph 2 of Article 2 of the Housing Act;
2. The term "land" means a portion of land belonging to the buildings (excluding welfare facilities, such as commercial buildings for sale in lots) of land-leasehold housing units in the entire land of a housing complex;
3. The term "unit ownership" means unit ownership under subparagraph 1 of Article 2 of the Act on the Ownership and Management of Aggregate Buildings;
4. The term "land-leasehold housing unit (hereinafter referred to as "land-leasehold housing unit")" means a housing unit, the title to the land of which is held by the land-leasehold housing construction business operator under Article 6 and the unit ownership of the housing unit, public welfare facilities, etc. (the unit ownership of the exclusive parts of a building is held by the purchasers of the exclusive parts and the unit ownership of the parts for common use, auxiliary buildings and welfare facilities is held jointly by the purchasers of the exclusive parts) is held by the purchaser of the housing unit.
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 Article 3 (Legal Status of Land-Leasehold Housing Units)   print
In cases where a person who has purchased a land-leasehold housing unit has entered into a lease contract with the owner of the land in accordance with this Act, a right of superficies, the object of which is the unit ownership of the land-leasehold housing unit, shall be deemed to have been instituted on the land for the term of lease under Article 16.
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 Article 4 (Relations with other Acts)   print
(1) This Act shall prevail over other Acts with respect to the construction, supply, possession and management of land-leasehold housing units.
(2) Matters not provided for in this Act shall be governed by the Housing Act, the Act on the Ownership and Management of Aggregate Buildings, and the Civil Act in the priority stated.
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 Article 5 (Comprehensive Housing Plan, Financial Support, etc.)   print
(1) The Minister of Land, Transport and Maritime Affairs when formulating a comprehensive housing plan under Article 7 of the Housing Act and the Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayors/Do Governors") when formulating a comprehensive City/Do housing plan under Article 8 of the Housing Act shall include matters concerning land-leasehold housing units therein.
(2) The State and local governments shall endeavor to finance or provide the National Housing Fund under Article 60 of the Housing Act for the preferential construction of land-leasehold housing units included in the comprehensive housing plan and comprehensive City/Do housing plan of the relevant year under paragraph (1).
(3) The State and local governments may, if necessary to smoothly develop the project to construct land-leasehold housing units, grant the reduction or exemption of national taxes, local taxes or other various kinds of charges, as prescribed by relevant Acts.
(4) Any person who manages a pension or a fund may lend the pension or the fund as financial resources for the construction of land-leasehold housing units in accordance with the Acts governing the pension or the fund.
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 Article 6 (Land-Leasehold Housing Construction Business Operator)   print
Any person who falls under any of the following subparagraphs may conduct land-leasehold housing construction business under this Act: <Amended by Act No. 10464, Mar. 9, 2011>
1. The State or local governments;
2. The Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act (hereinafter referred to as the "Korea Land and Housing Corporation");
3. Local public enterprises established to conduct a housing business pursuant to Article 49 of the Local Public Enterprises Act (hereinafter referred to as "local public enterprises");
4. Other persons determined separately by Presidential Decree, who are qualified and able to conduct housing construction business.
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 Article 7 (Preferential Construction of Land-Leasehold Housing Units)   print
In cases where a readjustment promotion project under the Special Act on the Promotion of Urban Renewal is carried out, the person holding the authority for the formulation of a readjustment promotion plan under Article 14 of the same Act may devise measures necessary for the preferential construction of land-leasehold housing units.
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 Article 8 (Determination of Price of Land-Leasehold Housing Units and Rent for Land, etc.)   print
(1) The prices of land-leasehold housing units in terms of structural part shall be determined below the building cost under Article 38-2 (3) of the Housing Act.
(2) The rent for the land area (referring to the area obtained by multiplying the land area by the ratio of the area of the exclusive part of a land-leasehold housing unit to the area of the exclusive parts of the entire land-leasehold housing unit concerned) equivalent to a portion of land used for a land-leasehold housing unit shall be calculated based on the cost of formation of the relevant housing lot, appraisal price, etc. However, detailed matters concerning the criteria for determining or readjusting rents for land, procedure for payment of rents for land, etc. shall be determined by Presidential Decree. In such cases, in principle, rents for land shall be paid on a monthly basis, but if a land-leasehold housing construction business operator under Article 6 (hereinafter referred to as "business operator") and a purchaser of a housing unit reaches agreement, the method of payment of such rents may be converted into lump-sum deposit money, as prescribed by Presidential Decree. <Amended by Act No. 11022, Aug. 4, 2011>
(3) In cases wherea landowner receives part of the rent for land in the form of lump-sum deposit money (including the combination of lump-sum deposit money and monthly rents), he/she shall subscribe to guarantee insurance to cover the lump-sum deposit money, as prescribed by Presidential Decree: Provided, That the same shall not apply to cases where the landowner is the State, a local government, the Korea Land and Housing Corporation, or a local public enterprise. <Amended by Act No. 10464, Mar. 9, 2011>
(4) Matters concerning the details of the method, procedure and cost-sharing for subscribing to guarantee insurance under paragraph (3) shall be prescribed by Presidential Decree.
(5) The publication of land-leasehold housing prices fixed pursuant to paragraph (1) shall comply with the provisions of Article 38-2 of the Housing Act.
(6) The land-leasehold housing prices under paragraph (1) and the publication of land-leasehold housing prices under paragraph (5) shall be examined by the Housing Price Examination Committee under Article 38-4 of the Housing Act.
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 Article 9 (Qualifications of Purchasers of Land-Leasehold Housing Units)   print
(1) Land-leasehold housing units shall be supplied preferentially to homeless householders, and matters concerning the details of the method and procedure of supply, qualifications to live in a land-leasehold housing unit, etc. shall be governed by the provisions of Article 38 of the Housing Act. <Amended by Act No. 11022, Aug. 4, 2011>
(2) The supply of land-leasehold housing units shall be one land-leasehold housing unit to one household.
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 Article 10 (Restriction on Resale of Land-Leasehold Housing Units, etc.)   print
(1) No land-leasehold housing unit purchaser shall be allowed to transfer the entitlement to live in a land-leasehold housing unit (referring to the right, qualifications, status, etc. to live in the housing unit; hereinafter the same shall apply) or resell (including purchase and sale, donation and other acts of disposition accompanying any change in rights, except for inheritance; hereinafter the same shall apply) the housing unit or arrange such transfer or resale before a period prescribed by Presidential Decree within the scope of ten years elapses.
(2) When a person who purchased, transferred, took over or inherited a land-leasehold housing unit changes the ownership of the land-leasehold housing unit or concludes a lease contract of such housing unit through purchase, sales, donation, inheritance, or through other grounds, he/she shall notify the relevant landowner of the fact, as prescribed by the Minister of Land, Transport and Maritime Affairs. <Amended by Act No. 11022, Aug. 4, 2011>
(3) Any person who takes over or inherits a land-leasehold housing unit pursuant to paragraph (2) shall succeed the lease contract under Article 16.
(4) The provisions of paragraph (1) shall not apply to cases determined by Presidential Decree, where it is deemed inevitable for a person who is entitled to live in a land-leasehold housing unit or a person who is supplied with a land-leasehold housing unit to resell the housing unit for a livelihood. In such cases, the relevant landowner may have a preferential right to purchase the land-leasehold housing unit, and such preferentially-purchased housing units shall be re-supplied as land-leasehold housing units under this Act.
(5) The procedure for preferential purchase under paragraph (4), prices of preferentially-purchased housing units to be re-supplied and procedure for re-supply shall be determined by Presidential Decree.
(6) In cases where the entitlement to live in a land-leasehold housing unit has been transferred or a land-leasehold housing unit has been resold in contravention of paragraph (1), if the business operator has paid the relevant purchaser the amount of money obtained by subtracting the depreciation cost of the building by the time of such transfer or resale as prescribed by Presidential Decree from the sum of the payments made for the housing unit and the amount of interest obtained by applying the average interest rate of one-year maturity fixed deposits of banks under the Banking Act to the payments made for the housing unit (hereinafter referred to as "purchase price"), the business operator shall be deemed to have acquired the entitlement to live in the housing unit or acquired the housing unit on the date when such payment was made, and the same shall apply mutatis mutandis to the cost to be incurred when the landowner preferentially purchases the relevant land-leasehold housing unit pursuant to paragraph (4). <Amended by Act No. 10303, May 17, 2010>
(7) When registering the transfer of ownership under paragraph (6), the refunding of purchase price, etc. by a business operator to a housing unit purchaser, etc., may be verified with a document verifying the ground of registration. <Amended by Act No. 10580, Apr. 12, 2011>
(8) In cases where a business operator supplies a land-leasehold housing unit, supplementary registration shall be made to the effect that the ownership of the land-leasehold housing unit may not be transferred to a third person before the lapse of the period under paragraph (1).
(9) The supplementary registration under paragraph (8) shall be made in concurrence with the registration of ownership preservation of the land-leasehold housing unit, and matters determined by Presidential Decree shall be specified in the supplementary registration.
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 Article 11 (Preferential Supply of Housing Lots)   print
(1) The State, local governments, the Korea Land and Housing Corporation and local public enterprises shall endeavor to preferentially supply housing lots needed to supply the land-leasehold housing units planned in the comprehensive housing plan and comprehensive City/Do housing plan of the relevant year smoothly pursuant to Article 5. <Amended by Act No. 10464, Mar. 9, 2011>
(2) Any business operator that purchases a housing lot pursuant to paragraph (1) shall commence construction work in the housing lot within two years from the date on which the housing lot becomes usable.
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 Article 12 (Repurchase of Housing Lots, etc.)   print
In cases where a business operator who has purchased a housing lot pursuant to Article 11 (1) fails to commence construction work within the period prescribed in paragraph (2) of the same Article, the housing lot development business operator, such as the State or local governments under paragraph (1) of the same Article, may repurchase the housing lot, paying the business operator the purchase price of the housing lot, plus the amount of money calculated according to the interest rate determined by Presidential Decree.
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 Article 13 (Utilization of Unsold Land-Leasehold Housing Units)   print
Any business operator that supplies land-leasehold housing units under this Act may, when he/she has unsold land-leasehold housing units as at the time determined by Presidential Decree from the date of completion of construction of the housing units, utilize them in other types of housing other than land-leasehold housing, as prescribed by Presidential Decree.
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 Article 14 (Actual Compensation)   print
(1) Any business operator may, when the landowners, etc. of the business area desire, compensate them with land-leasehold housing units built through the development of such public project for the portions other than those compensated with cash, and bonds under Article 63 (6) and (7) of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects.
(2) For actual compensation under paragraph (1), the provisions of Article 63 of the Act on Acquisition of and Compensation for Land, etc. for Public Works Projects shall apply mutatis mutandis to the publication of persons entitled to actual compensation, standards for the calculation of prices of land-leasehold housing units used for actual compensation, criteria for compensation, etc.
(3) The provisions of Article 10 shall apply mutatis mutandis to restriction on the transfer of the right to be compensated with land-leasehold housing units under paragraph (1) or resale of land-leasehold housing units offered for compensation.
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 Article 15 (Special Cases for Floor Area Ratio, etc.)   print
(1) Notwithstanding the provisions of Article 78 of the National Land Planning and Utilization Act, the floor area ratio of land-leasehold housing units shall be 250/100 or more unless the housing unit concerned is located in any of the following zones and thereby limited of the height of its structure: Provided, That it may not exceed the upper floor area ratio limit under Article 78 (1) 1 (b) of the same Act:<Amended by Act No. 11022, Aug. 4, 2011>
1. Height districts, conservation districts, and facility protection districts among special-purpose districts under Article 37 (1) of the National Land Planning and Utilization Act;
2. Flight safety zones under subparagraph 8 of Article 2 of the Protection of Military Bases and Installations Act;
3. Airport zones or obstacle limitation zones under subparagraph 9 or 16 of Article 2 of the Aviation Act;
4. Other zones determined by Presidential Decree.
(2) Every business operator shall, when building land-leasehold housing units, applying the floor area ratio under paragraph (1), take into consideration the environmental factors in surrounding areas, such as a wind corridor.
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 Article 16 (Term of Lease of Land, etc.)   print
(1) The relation of lease of land of a land-leasehold housing unit shall comply with the lease contract concluded between the landowner and the purchaser of the housing unit, on condition that the term of such lease shall not exceed 40 years: Provided, That when a term longer than that is stipulated in a lease contract, such term shall prevail.
(2) The term of lease under paragraph (1) may be renewed when not less than 75/100 of the owners of land-leasehold housing units claim for the renewal of the contract. In such cases, the term after renewal shall not exceed 40 years from the date of renewal.
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 Article 17 (Reconstruction of Land-Leasehold Housing Units)   print
(1) In cases where a land-leasehold housing unit owner intends to remove the land-leasehold housing unit for reconstruction in accordance with urban development-related Acts, such as the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents before the expiration of the term of lease of land under Article 16, he/she may do so upon obtaining the consent of the landowner thereto pursuant to Articles 47 through 49 of the Act on the Ownership and Management of Aggregate Buildings. In such cases, the landowner may not refuse it without a justifiable ground and the housing units to be reconstructed shall also be built as land-leasehold housing units.
(2) In cases of reconstructing a land-leasehold housing unit pursuant to paragraph (1), the land-leasehold housing unit owner shall be deemed landowner, etc. under subparagraph 9 (b) of Article 2 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents.
(3) When the consent of the landowner to reconstruction is obtained pursuant to paragraph (1), the landowner and the members of the housing reconstruction association shall be deemed to have reached agreement on the term of lease of land under the main sentence of Article 16 (1) from the date of approval on the completion of reconstruction.
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 Article 18 (Use of Standard Form Lease Contract)   print
Any person who intends to make a lease contract for land shall use the standard form lease contract determined by Ordinance of the Ministry of Land, Transport and Maritime Affairs.
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 Article 19 (Order for Correction, etc.)   print
The Minister of Land, Transport and Maritime Affairs, Mayors/Do Governors, or heads of Sis/Guns/Gus (referring to the heads of autonomous Gu; hereinafter the same shall apply) may, when the landowner of a land-leasehold housing unit, a person who constructs land-leasehold housing units to sell them in lots, or a person who has purchased, transferred, took over or inherited the housing unit concerned contravenes this Act or any order or disposition under this Act, take necessary measures, such as an order for correction. <Amended by Act No. 11022, Aug. 4, 2011>
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 Article 20 (Delegation and Entrustment of Authority)   print
(1) The Minister of Land, Transport and Maritime Affairs may partially delegate his/her authority under this Act to Mayors/Do Governors or entrust his/her authority to corporations established to foster housing industries, as prescribed by Presidential Decree.
(2) Any Mayor/Do Governor (excluding the Governor of a Special Self-Governing Province) delegated with authority pursuant to paragraph (1) may partially re-delegate the authority to the heads of Sis/Guns/Gus upon obtaining approval from the Minister of Land, Transport and Maritime Affairs.
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 Article 21 (Penal Provisions)   print
Any person who falls under any of the following subparagraphs shall be punished by imprisonment with prison labor for not less than three years or by a fine not exceeding 30 million won: <Amended by Act No. 11022, Aug. 4, 2011>
1. A person who leases land in contravention of the criteria for rents under Article 8 (2);
2. A person who transfers the entitlement to live in a land-leasehold housing unit or resells a land-leasehold housing unit or arranges such transfer or resale in contravention of Article 10 (1).
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 Article 22 (Fines for Negligence)   print
(1) Any person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding 20 million won: <Amended by Act No. 11022, Aug. 4, 2011>
1. A person who fails to make notification in accordance with Article 10 (2);
2. A person who fails to use the standard form lease contract under Article 18 or fails to perform the terms specified in the standard form lease contract;
3. A person who contravenes an order of the Minister of Land, Transport and Maritime Affairs, Mayors/Do Governors, or heads of Sis/Guns/Gus under Article 19.
(2) Fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Land, Transport and Maritime Affairs, Mayors/Do Governors or heads of Sis/Guns/Gus, as prescribed by Presidential Decree.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) Omitted.
(3) (Transitional Measures) The land-leasehold housing units and redeemable housing units built and supplied under the former Housing Act as at the time this Act enters into force shall be governed by the former provisions.
ADDENDA <Act No. 10303, May 17, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDUM <Act No. 10464, Mar. 9, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 10580, Apr. 12, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 11022, Aug. 4, 2011>
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Articles 10 (2) and 22 shall enter into force three months after the date of its promulgation.