Published: 2009-09-21
Key Benefits:
| Article 1 (Purpose) |  |
| Article 2 (Types of Constructed Rental Housing) | |
| 1. | Constructed public rental housing: Housing falling under any of the following items: |
| (a) | Rental housing constructed with the finance of the State or a local government; |
| (b) | Rental housing constructed with funding from the National Housing Fund under Article 60 of the Housing Act (hereinafter referred to as "National Housing Fund"); |
| (c) | Rental housing constructed with approval for a business plan pursuant to Article 16 of the Housing Act on a housing site created by public works (hereinafter referred to as "public housing site"); |
| 2. | Constructed private rental housing: Constructed rental housing other than under subparagraph 1. |
| Article 3 (Scope of Insolvency, etc.) | |
| (1) | “Period prescribed by Presidential Decree” in subparagraph 7 (b) of Article 2 of the Act means six months. |
| (2) | “Cases prescribed by Presidential Decree” in subparagraph 7 (c) of Article 2 of the Act means cases where the parent company (referring to the parent company under Article 342-2 of the Commercial Act) of a rental business operator is subject to disposition under subparagraph 7 (a) of Article 2 of the Act and such rental business operator’s own capital has been wholly eroded. |
| Article 4 (Development and Supply of Housing Sites for Rental Housing) | |
| (1) | The Minister of Land, Transport and Maritime Affairs shall, when he/she formulates a comprehensive annual housing plan (hereinafter referred to as "annual plan") under Article 7 (2) of the Housing Act, include a plan for supply of housing sites for rental housing to be supplied by the State, a local government, the Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act (hereinafter referred to as the "Korea Land and Housing Corporation"), or a local public corporation incorporated for the purposes of a housing business pursuant to Article 49 of the Local Public Enterprises Act (hereinafter referred to as a "local public corporation") in the annual plan: Provided, That a plan for supply of housing sites for rental housing with an obligatory rental period of five years shall be excluded. <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| (2) | The State, a local government, the Korea Land and Housing Corporation, or a local public corporation shall develop and supply sites for construction of rental housing according to the plan for supply of housing sites for rental housing under paragraph (1). <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| Article 5 (Raising of Financial Resources for Construction of Rental Housing) | |
| 1. | Government contributions; |
| 2. | Funds raised by issuance of Class 2 national housing bonds under Article 67 of the Housing Act and Article 91 of the Enforcement Decree of the same Act; |
| 3. | Proceeds allotted pursuant to Article 23 (1) of the Lottery Tickets and Lottery Fund Act. |
| Article 6 (Terms and Conditions of Loan of Rental Housing Construction Funds) | |
| Article 7 (Scope and Standards for Registration, etc. of Rental Business Operators) | |
| (1) | “The number of houses prescribed by Presidential Decree” in Article 6 (1) of the Act means the number of houses or households under the classifications of the following subparagraphs: <Amended by Presidential Decree No. 21134, Nov. 26, 2008> |
| 1. | In cases of constructed rental housing; Two houses in cases of a detached house, and two households in cases of an apartment; |
| 2. | In cases of purchased rental housing; One house in cases of a detached house, and one household in cases of an apartment. |
| (2) | Any person who may register as a rental business operator pursuant to Article 6 (1) of the Act shall be as set out under the following subparagraphs, and in cases of housing jointly constructed or owned by two persons or more, they shall be registered as joint rental business operators: Provided, That any person (including a person who was the representative or an executive of a corporation at the time of insolvency and a corporation in which the representative or the executive of a corporation at the time of insolvency or a rental business operator who was an individual at the time of insolvency holds a post as the representative or the executive) who gave rise to insolvency (excluding cases where he/she has repaid his/ her debt at the time of insolvency and has normalized his/her rental housing business after the occurrence of insolvency) in his/her rental housing business within the last five years from the date of application for registration shall not register as a rental business operator: |
| 1. | Any housing construction business operator registered pursuant to Article 9 of the Housing Act; |
| 2. | Any landowner or employer constructing housing for the purpose of lease pursuant to Article 10 (1) through (3) of the Housing Act; |
| 3. | Any person who has obtained permission for construction of housing for the purpose of lease pursuant to Article 11 of the Building Act; |
| 4. | Any person who either owns a housing for the purpose of lease or has concluded a contract (including a contract for sale in lots) for purchase of such house; |
| 5. | Any company falling under any of the subparagraph of Article 14 (4). |
| Article 8 (Registration Procedures of Rental Business Operators) | |
| (1) | Any person who intends to register as a rental business operator pursuant to Article 6 (1) of the Act shall submit an application for registration to the Governor of a Special Self-Governing Province and the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter referred to as head of a Si/Gun/Gu) as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (2) | When the head of a Si/Gun/Gu has received an application for registration under paragraph (1), he/she shall ascertain as to whether it meets the criteria for registration under Article 7 (2), and when it is deemed to meet the criteria, he/she shall register an applicant on the register of rental business operators and issue a certificate of registration to the applicant. |
| (3) | Any person who has received a certificate of registration pursuant to paragraph (2) shall, in cases where matters registered have been changed, submit a report thereon to the head of a Si/Gun/Gu (in cases where the domicile of the rental business operator is changed, referring to the head of a Si/Gun/Gu having jurisdiction over the new domicile) within 30 days from the date when the reason for change has arisen. |
| (4) | The register of rental business operators under paragraph (2) shall be prepared and managed so as to enable electronic management if there exists no special reason which prevents electronic management. |
| Article 9 (Establishment, etc. of Rental Housing Associations) | |
| (1) | Any person who intends to obtain authorization for the establishment, alteration or dissolution of a rental housing association (hereinafter referred to as “association”) pursuant to Article 7 of the Act shall submit to the head of a competent Si/Gun/Gu a written application for authorization prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs with the documents attached thereto as classified by the following subparagraphs: |
| 1. | In cases of authorization for establishment: |
| (a) | Minutes of the inaugural general meeting; |
| (b) | Consent to election of the head of the association; |
| (c) | Rules of the association jointly signed by each association member; |
| (d) | A business plan; |
| 2. | In cases of authorization for modification: Documents verifying the details of modification; |
| 3. | In cases of authorization for dissolution: A statement of accounts agreed by the association’s members. |
| (2) | The association shall be comprised of two or more members. |
| (3) | Where the association constructs rental housing jointly with a registered business operator (including the State, a local government, the Korea Land and Housing Corporation and a local public corporation) under Article 9 of the Housing Act pursuant to Article 9 of the Act, it may have such registered business operator perform affairs of the association (excluding affairs of assisting others to join the association or announcements to invite others to the association) on its behalf. <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| (4) | The association shall not change any members of the relevant association, except in cases where a member is deceased, from the time authorization for its establishment was obtained until it obtains approval for a business plan under Article 16 of the Housing Act, until it obtains permission for construction under Article 11 of the Building Act, or until it enters into a sale contract. |
| (5) | Rules of the association under paragraph (1) 1 (c) shall contain the matters under the following subparagraphs: |
| 1. | Name and address of the association; |
| 2. | Interests of shares among the members and matters concerning ownership of profits and losses; |
| 3. | Matters concerning expulsion, withdrawal, change and new admission of members; |
| 4. | Rights and duties of the officers of the association, and method for their election; |
| 5. | Matters concerning share of expenses of the association and its accounting; |
| 6. | Summary of business, such as business year, method of implementation of business and details of business; |
| 7. | Matters requiring a resolution of a general meeting, and a quorum for its resolution and procedure for a resolution; |
| 8. | Matters concerning holding general meetings and requests for convocation of general meetings by members; |
| 9. | Procedure for and method of liquidation; |
| 10. | Procedure for change of the rules of the association; |
| 11. | Publication of details of expenditure of dues of the association and matters resolved upon at general meetings, and notifications to the members thereof. |
| (6) | Business plans under paragraph (1) 1 (d) shall contain the matters under the following subparagraphs: |
| 1. | The number of houses and households of housing to be constructed or purchased and their types and sizes; |
| 2. | Location, parcel number, land category, owners and legal relationship of the land proposed for housing construction or of housing to be purchased; |
| 3. | Use in urban planning for the land proposed for housing construction (only applicable to construction of housing); |
| 4. | Housing sites and their surroundings. |
| (7) | Where the head of a Si/Gun/Gu has received an application for authorization of the establishment of an association for construction of rental housing, he/she shall verify the matters related to urban planning, etc. and examine as to whether rental housing may be constructed on the relevant land proposed for housing construction. |
| Article 10 (Audit of Rental Housing Association) | |
| (1) | Any association which constructs or purchases 20 houses or less shall be audited by an auditor under Article 3 of the Act on External Audit of Stock Companies within 20 days from the date classified by the following subparagraphs pursuant to Article 8 (3) of the Act: |
| 1. | In cases of construction of housing: Date falling under any of the following items: |
| (a) | Date when an application for inspection of occupancy or for approval for temporary occupancy under Article 29 of the Housing Act is made; |
| (b) | Date when permission or approval under Article 13 (2) 2 is obtained or date when a contract for conversion of rental housing for sale in lots under Article 21 (1) or (2) of the Act is concluded; |
| 2. | In cases of purchase of housing: Date when permission or approval under Article 13 (2) 2 is obtained or date when a contract for conversion of rental housing for sale in lots under Article 21 (1) or (2) of the Act is concluded. |
| (2) | Article 5 of the Act on External Audit of Stock Companies shall apply to the criteria for audit under paragraph (1). |
| (3) | Any person who has conducted an audit pursuant to paragraph (1) shall notify the head of a Si/Gun/Gu and the association of the results thereof within 15 days from the date of completion of the audit. |
| (4) | The association shall immediately notify the members of the results of the audit of which it has been notified pursuant to paragraph (3). |
| (5) | When the head of a Si/Gun/Gu finds any illegal or unjust matters as a result of his/her examination of the results of the audit of which he/she has been notified pursuant to paragraph (3), he/she may notify the association of such details and make a request for corrections thereof. |
| (6) | The association which builds or purchases 20 houses or less shall conduct its own in-house audit as prescribed by the rules of the association and notify the members of the results thereof within 20 days from the date when it has applied for approval for occupancy or temporary occupancy under Article 22 of the Building Act or the date when it has concluded a contract for sale of constructed housing or purchased housing. In such cases, paragraphs (3) and (5) shall apply mutatis mutandis thereto. |
| Article 11 (Procedures, etc. for Repurchase of Housing Sites) | |
| (1) | When the State, a local government or a public enterprise or a quasigovernment agency under Article 5 (3) of the Act on the Management of Public Institutions (hereinafter referred to as “public enterprise, etc.”) sells a housing site to a rental business operator pursuant to Article 10 (1) of the Act, it shall make a special agreement for repurchase to the effect that it may repurchase the housing site if the operator fails to commence the construction of rental housing within two years from the date of acquisition of such housing site, and shall register it: Provided, That this shall not apply to cases where a rental business operator is the State, a local government, the Korea Land and Housing Corporation or a local public corporation. <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| (2) | Any person who has purchased a housing site pursuant to Article 10 (1) of the Act shall, when he/she has commenced the construction of rental housing on such housing site, notify a seller of such housing site with documents proving such fact attached. |
| (3) | When the State, a local government or a public enterprise, etc. which has sold a housing site pursuant to Article 10 (1) of the Act fails to receive any notice from a person who has acquired such housing site under paragraph (2) within one and half years from the date of sale of the housing site, it shall urge him/her to immediately commence the construction of rental housing, and when the person who has acquired the housing site fails to fulfill it after two years have passed from the date of acquisition, it shall commence repurchase procedures according to the details of the special agreement for repurchase. |
| (4) | “Fixed percentage prescribed by Presidential Decree” in Article 10 (2) of the Act means 10/100. |
| Article 12 (Application, etc. for Designation of Public Utilities Operators) | |
| (1) | "The number of houses prescribed by Presidential Decree" in Article 14 (1) of the Act means 100 houses in cases of a detached house and 100 households in cases of an apartment. |
| (2) | Any person who intends to apply for designation pursuant to Article 14 (1) of the Act shall submit a business plan for construction of rental housing with the documents in the following subparagraphs attached thereto to the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Do Governor or the Governor of a Special Self-Governing Province: |
| 1. | Drawings indicating land subject to business; |
| 2. | Documents certifying the fact that not less than 90/100 of the area of land subject to business has been purchased (including cases where the landowner's consent to the purchase has been obtained); |
| 3. | Drawings indicating land to be expropriated or used; |
| 4. | Documents in which the particulars of land to be expropriated or used are specified. |
| (3) | A rental business operator who has been designated pursuant to Article 14 (1) of the Act may not, when he/she intends to obtain approval for a business plan of the relevant business pursuant to Article 16 of the Housing Act, omit to submit a copy of the register or a written consent to the use of land to be expropriated or used notwithstanding Article 15 (5) of the Enforcement Decree of the same Act. |
| Article 13 (Obligatory Rental Period, etc. of Rental Housing) | |
| (1) | “Period prescribed by Presidential Decree” in Article 16 (1) 4 of the Act means five years from the commencement date of lease of the relevant rental housing. |
| (2) | In cases under the following subparagraphs, rental housing may be sold within the obligatory rental period pursuant to Article 16 (3) of the Act: <Amended by Presidential Decree No. 21134, Nov. 26, 2008; Presidential Decree No. 21557, Jun. 25, 2009; Presidential Decree No. 21744, Sep. 21, 2009> |
| 1. | Where a rental business operator sells rental housing to another rental business operator after he/she has reported to the head of a Si/Gun/Gu as prescribed by Ordinance of the Ministry of Land, Transport And Maritime Affairs; |
| 2. | Where a rental business operator cannot continue to lease due to insolvency, bankruptcy, other financial circumstances, etc. and thus obtains permission for conversion for sale in lots or approval for conversion for sale in lots as classified by the following items: |
| (a) | Permission of the Minister of Land, Transport and Maritime Affairs in cases of rental housing leased by the State, a local government, the Korea Land and Housing Corporation or a local public corporation; |
| (b) | Approval under Article 21 (3) of the Act in cases of constructed public rental housing other than under item (a); |
| (c) | Permission of the head of a Si/Gun/Gu having jurisdiction over the place where the relevant rental housing is located in cases of rental housing other than under items (a) and (b); |
| 3. | Where a half of the obligatory rental period of rental housing falling under Article 16 (1) 3 and 4 of the Act has passed after the commencement of lease, and a rental business operator and lessees reach agreement on conversion of the relevant rental housing for sale in lots and then the rental business operator sells such rental housing in lots to the lessees after making a report to the head of a Si/Gun/Gu as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs (excluding cases where the rental business operator is the State, a local government, the Korea Land and Housing Corporation or a local public corporation). In such cases, constructed public rental housing may be sold in lots only to the lessees falling under Article 21 (1) or (2) of the Act. |
| (3) | Where a rental business operator cannot continue to lease due to other financial circumstances, etc. and intends to obtain approval or permission of the head of a Si/Gun/Gu pursuant to paragraph (2) 2 (b) and (c), he/she shall submit documents falling under any of the following subparagraphs: |
| 1. | The profit and loss statement of the relevant period which can verify the fact that the relevant rental business operator has been in deficit for two consecutive years; |
| 2. | The cash flow chart of the relevant period which can verify that the relevant rental business operator has showed negative business cash flow for two consecutive years. |
| (4) | Where a rental business operator converts rental housing for sale in lots pursuant to paragraph (2) 2 (a) and (b), he/she shall preferentially sells rental housing in lots to lessees who meet the requirements under Article 21 (1) or (2) of the Act. |
| (5) | Where constructed public rental housing except housing under the following subparagraphs is converted for sale in lots pursuant to paragraph (2) 2 or 3, the criteria for assessment of the prices for such conversion for sale in lots shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs: <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| 1. | Housing constructed by a rental business operator other than the State, a local government, the Korea Land and Housing Corporation or a local public corporation, each exclusive area of which exceeds 85 square meters; |
| 2. | Housing constructed in an area other than a public housing site by a rental business operator other than the State, a local government, the Korea Land and Housing Corporation or a local public corporation, each exclusive area of which does not exceed 85 square meters and the obligatory rental period of which is ten years; |
| 3. | Housing constructed by the State, a local government, the Korea Land and Housing Corporation or a local public corporation, each exclusive area of which exceeds 85 square meters. |
| (6) | Matters necessary for permission and approval under paragraph (2) 2 and report under paragraph (2) 3 shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (7) | “Requirement prescribed by Presidential Decree” in the proviso to Article 16 (3) of the Act means the requirement under the following subparagraphs: |
| 1. | A plan for future management of rental housing, including a plan for conversion for sale in lots; |
| 2. | A plan for raising finances for the repayment of loans of the National Housing Fund and rental deposit, etc.; |
| 3. | A plan for taking out guarantees or for incorporation of a special purpose corporation under Article 17 (1) of the Act in order to normalize insolvent rental housing, etc. |
| Article 14 (Taking out Guarantees for Rental Deposits, etc.) | |
| (1) | The term "rental business operators of constructed rental housing prescribed by Presidential Decree" in the main sentence of Article 17 (1) of the Act means all rental business operators of constructed public rental housing. |
| (2) | A rental business operator under paragraph (1) shall place a notice at a place clearly visible to his/her lessees as to whether he/she has taken out a guarantee for rental deposit. The same shall also apply to cases where the guarantee taken out is terminated or altered. |
| (3) | A rental business operator under paragraph (1) shall, where he/she has taken out a guarantee for rental deposit, deliver a copy of the letter of guarantee and of the guarantee agreement immediately after a lessee has moved into a rental house. |
| (4) | The term "special purpose corporation, etc. incorporated for independent implementation of rental housing business for each housing complex as prescribed by Presidential Decree" in Article 17 (1) 2 of the Act means a corporation, etc. falling under any of the following subparagraphs, incorporated for independent implementation of rental housing business for each housing complex: <Amended by Presidential Decree No. 20947, Jul. 29, 2008> |
| 1. | A real estate investment company under the Real Estate Investment Company Act; |
| 2. | A collective investment organization under the Financial Investment Services and Capital Markets Act; |
| 3. | An investment company falling under Article 51-2 (1) 6 of the Corporate Tax Act; |
| 4. | A stock company or a limited liability company under the Commercial Act which meets all of the following requirements: |
| (a) | No place of business shall be established except the main office; |
| (b) | No full-time executive shall be appointed; |
| (c) | No employees shall be employed; |
| (d) | Related affairs shall be entrusted to an asset management company under Article 86-2 (5) 2 of the Enforcement Decree of the Corporate Tax Act or a trustee incorporated with authorization pursuant to Article 12 of the Financial Investment Services and Capital Markets Act; |
| (e) | No stocks shall be offered as security (excluding security for any loan from the National Housing Fund). |
| (5) | The term "percentage prescribed by Presidential Decree" in Article 17 (1) 2 of the Act means that the total of rental deposits and loans from the National Housing Fund for rental housing in the relevant complex is 80/100 (referring to 90/100 in cases where the parent company or the largest investor stands as joint and several surety for the relevant special-purpose corporation, etc.) of the construction costs of rental housing in the relevant complex: Provided, That in cases where rental deposits, etc. have been adjusted after commencement of rent, it means 80/100 (referring to 90/100 in cases where the parent company or the largest investor stands as joint and several surety for the relevant special purpose corporation, etc.) of the price of rental housing calculated as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (6) | Matters concerning the ratio of apportionment of incurred expenses, scope of rental deposit subject to guarantee, taking out and maintaining guarantee, etc. under Article 17 (4) of the Act shall comply with as prescribed by the following subparagraphs: |
| 1. | A rental business operator shall bear 75/100 of a guarantee fee for rental deposit and a lessee shall bear 25/100 thereof; |
| 2. | A rental business operator shall take out a guarantee for rental deposit and pay a guarantee fee for rental deposit. In such cases, a rental business operator shall collect a guarantee fee borne by a lessee by inclusion of it in a rent and specify its details in a notice for payment of rent; |
| 3. | Where a rental business operator has taken out a guarantee for rental deposit pursuant to Article 17 of the Act, he/she shall submit a copy of the letter of guarantee to the head of a Si/Gun/Gu having jurisdiction over the place where the rental housing is located; |
| 4. | The head of a Si/Gun/Gu who has received a copy of the letter of guarantee submitted pursuant to subparagraph 3 shall retain it during the rental period; |
| 5. | The guarantee period for rental deposit shall be the same as the rental period; |
| 6. | The amount covered by guarantee under Article 17 (3) of the Act shall be the total amount of the remainder after subtracting the amount of item (b) from the amount of item (a): |
| (a) | The amount of money which is the sum of a loan from the National Housing Fund and a rental deposit; |
| (b) | The amount of money equivalent to 60/100 of the price of the house prescribed by Ordinance of the Ministry of Land, transport and Maritime Affairs; |
| 7. | The guarantee fee for rental deposit shall be recalculated each year. |
| Article 15 (Notification of Results of Audit of Stock Companies, etc.) | |
| Article 16 (Taking out Guarantee for Rental Deposits in Cases of Falling Short of Requirements) | |
| 1. | Where they are in violation of the purpose of incorporation under Article 17 (1) 2 of the Act; |
| 2. | Where the total of rental deposits for rental housing and loans from the National Housing Fund exceeds the percentage under Article 14 (5); |
| 3. | Where a company falling under Article 14 (4) 4 fails to meet the requirements under the items of the same subparagraph or fails to comply with Article 15. |
| Article 17 (Additional Registration, etc.) | |
| (1) | It shall be clearly state that "except for the establishment of the limited real right for the National Housing Fund, it shall be prohibited from establishing the limited real right on this house or from imposing restrictions on ownership, such as seizure, provisional seizure, provisional disposition, etc. without consent of the lessee" in the additional registration under the main sentence of Article 18 (2) of the Act. |
| (2) | "Cases prescribed by Presidential Decree" in the proviso to Article 18 (2) of the Act means cases where a rental business operator trusts the relevant rental housing to a trustee incorporated with authorization pursuant to Article 12 of the Financial Investment Services and Capital Markets Act or to the Korea Housing Guarantee Co., Ltd. incorporated pursuant to Article 76 of the Housing Act. <Amended by Presidential Decree No. 20947, Jul. 29, 2008> |
| Article 18 (Permission for Transfer, etc. of Right of Lease) | |
| (1) | "Cases prescribed by Presidential Decree" in the proviso to Article 19 of the Act means cases falling under any of the following subparagraphs: <Amended by Presidential Decree No. 21134, Nov. 26, 2008; Presidential Decree No. 21557, Jun. 25, 2009> |
| 1. | Where all constituent members of the household of a lessee of a rental house which falls under Article 16 (1) 3 and 4 of the Act fall under any of the following items after moving into the rental house and transfer the right of lease or sublet the rental house to a householder who does not own any house in his/her name (referring to a person selected by the lessee at his/her discretion in cases of constructed private rental house and a purchased rental house): |
| (a) | Where they move to a different Si/Gun/Gu (limited to autonomous Gu; hereinafter the same shall apply) from the administrative area of a Si/Gun/Gu in which they reside, for reasons of work, occupation or medical treatment of illness, etc.; |
| (b) | Where they move to a house possessed by inheritance or marriage; |
| (c) | Where they emigrate or reside overseas for not less than one year; |
| 2. | Where a resident escaping from North Korea under subparagraph 1 of Article 2 of the Act on the Protection and Settlement Support of Residents Escaping from North Korea exchanges a rental house specially provided to him/her with another constructed public rental housing to reside therein for reasons of work, occupation, etc.; |
| 3. | Where a lessee leaves a rental house due to marriage or divorce, and his/her lineal descendant or ascendant, spouse or brothers and sisters who intend to reside continuously in the rental house change the name of the householder to his/her name and then change its lessee to the changed householder. |
| (2) | A lessee who intends to obtain consent to transfer of the right of lease or sublet of a rental house pursuant to the proviso to Article 19 of the Act, shall present documentary evidence showing that the lessee falls under any of the subparagraphs of paragraph (1) to a rental business operator. In such cases, when the lessee falls under paragraph (1) 1 (a), the rental business operator may request the lessee for a house rental contract, a contract for lease on a deposit basis, a sales contract of house, etc. in connection with his/her moving to another Si/Gun/Gu. |
| (3) | A rental business operator shall comply with a lessee's request for transfer of the right of lease or sublet of a rental house unless there is any special problem in the documentary evidence, etc. submitted by the lessee to the rental business operator pursuant to paragraph (2). |
| Article 19 (Qualifications for and Method of Selection of Lessees of Constructed Rental Housing) | |
| Article 20 (Time for Invitation of Residents of Constructed Private Rental Housing) | |
| Article 21 (Rental Deposit and Rent of Constructed Rental Housing) | |
| (1) | The first rental deposit and rent of rental housing constructed with approval for a business plan pursuant to Article 16 of the Housing Act from among the constructed public rental housing shall not exceed the standard rental deposit and standard rent determined and publicly notified by the Minister of Land, Transport and Maritime Affairs: Provided, That this shall not apply to the rent of constructed public rental housing under Articles 13 (5) 1 and 3 and 22 (3) and the first rental deposit for constructed public rental housing supplied as long-term rental housing with deposit money. <Amended by Presidential Decree No. 21134, Nov. 26, 2008; Presidential Decree No. 21557, Jun. 25, 2009> |
| (2) | When calculating the standard rental deposit and standard rent under paragraph (1), the Minister of Land, Transport and Maritime Affairs shall take into consideration the construction costs of rental housing and its incidental facilities, ratio of funds from the National Housing Fund to its finances, rental deposit and level of rent in the surrounding area of relevant rental housing and a guarantee fee for a rental deposit (limited to the lessees' apportionment), depreciation expense, expenses incurred for repair and maintenance, fire insurance premiums, interest paid for a loan from the National Housing Fund, appropriation for bad debts, taxes and public imposts. In such cases, the construction costs of rental housing mean the costs calculated pursuant to the standards for calculation prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (3) | The first rental deposit for constructed public rental housing under paragraph (1) shall not exceed the amount fixed by the classification of the following subparagraphs: <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| 1. | For rental housing constructed by the State, a local government, the Korea Land and Housing Corporation, or a local public corporation, the remainder (hereinafter referred to as the "maximum rental deposit; hereafter the same shall apply in this paragraph) after subtracting a loan from the National Housing Fund from the construction costs (referring to the construction costs under the latter part of paragraph (2)) of the relevant housing and its incidental facilities; |
| 2. | For rental housing constructed by a rental business operator other than such entities referred to in subparagraph 1, the amounts described in the following items. In such cases, the amount of rental deposit for rental housing constructed in an area other than a public housing site shall not exceed the amount of rental deposit agreed with a fund trustee under Article 62 (2) of the Housing Act at the time when it is financed from the National Housing Fund: |
| (a) | An amount equivalent to 90/100 of the maximum rental deposit, in cases of the Seoul Metropolitan Area (referring to Seoul Special Metropolitan City, Gyeonggi-do, and Incheon Metropolitan City; hereafter in this paragraph the same shall apply); |
| (b) | An amount equivalent to 80/100 of the maximum rental deposit, in cases of areas other than the Seoul Metropolitan area. |
| (4) | The rent for a rental house under Article 22 (3) shall not exceed the standard rent determined and publicly notified by the Minister of Land, Transport and Maritime Affairs taking into account an amount of money equivalent to the price for conversion for sale in lots (hereinafter referred to as "amount of conversion for sale in lots") paid in advance by a lessee. <Newly Inserted by Presidential Decree No. 21134, Nov. 26, 2008> |
| (5) | The first rental deposit for constructed public rental housing supplied as long-term rental housing with deposit money shall not exceed the amount calculated as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs in consideration of the contract amount to rent a house with deposit money in a neighboring housing with the type, size, living conditions, etc. that are similar to those of the relevant rental housing. <Newly Inserted by Presidential Decree No. 21557, Jun. 25, 2009> |
| Article 22 (Preferential Sale of Constructed Rental Housing in Lots) | |
| (1) | “Cases prescribed by Presidential Decree” in Article 21 (2) of the Act means cases of a house, the exclusive area of which exceeds 85 square meters. |
| (2) | “Cases prescribed by Presidential Decree” means cases falling under Article 3 (2). |
| (3) | In cases of rental housing paid for in installments with the price for conversion for sale in lots without rental deposit (hereinafter referred to as “rental housing paid for in installments”) from among constructed public rental housing constructed by the State, a local government, the Korea Land and Housing Corporation or a local public corporation, a rental business operator may receive a part of the price for conversion for sale in lots (hereinafter referred to as “amount paid for in installments”) from a lessee in advance before the commencement of the lease or during the rental period. <Newly Inserted by Presidential Decree No. 21134, Nov. 26, 2008; Presidential Decree No. 21744, Sep. 21, 2009> |
| (4) | Matters necessary for the basis and method of payment in installments of the price for conversion for sale in lots under paragraph (3) shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. <Newly Inserted by Presidential Decree No. 21134, Nov. 26, 2008> |
| Article 23 (Appraisal, etc. for Assessment of Price for Conversion for sale in Lots) | |
| (1) | The head of a Si/Gun/Gu shall entrust an appraisal under Article 21 (9) of the Act to two appraisal corporations (including Korea Appraisal Board under Article 2 of the Enforcement Decree of the State Property Act; hereinafter referred to as "appraisal corporation") meeting the standards publicly notified by the Minister of Land, Transport and Maritime Affairs pursuant to Article 7 (2) of the Enforcement Decree of the Public Notice of Values and Appraisal of Real Estate Act. <Amended by Presidential Decree No. 21641, Jul. 27, 2009> |
| (2) | Appraisal corporations which have been entrusted with an appraisal pursuant to paragraph (1) shall make an appraisal on the basis of the date when a rental business operator or a lessee (referring to the council of lessees' representatives in cases where the council of lessees' representatives has been formed) has requested the selection of the appraisal corporations. |
| (3) | Appraisal corporations shall complete an appraisal within 20 days from the date when they have been entrusted with an appraisal pursuant to paragraph (1): Provided, That in cases where there are unavoidable reasons recognized by the head of a Si/Gun/Gu, it may be extended by up to ten days. |
| (4) | "Matters prescribed by Presidential Decree" in the proviso to Article 21 (9) of the Act means cases falling under any of the following subparagraphs: |
| 1. | Where an appraisal has been made in violation of the related Acts and subordinate statutes; |
| 2. | Where it is recognized that an appraisal has been made unjustly. |
| (5) | A reappraisal under the proviso to Article 21 (9) of the Act (referred to as "reappraisal"; hereafter the same shall apply in this Article) shall be made in compliance with paragraph (1) with a clear statement as to such grounds, but it shall not be entrusted to the same appraisal corporations which made the initial appraisal. |
| (6) | Paragraph (3) shall apply mutatis mutandis to the period of the reappraisal, and the expense for the reappraisal shall be borne by the person who has raised the objection. |
| (7) | In cases where constructed public rental housing (excluding constructed public rental housing under the subparagraphs of Article 13 (5)) is converted for sale in lots pursuant to the provisions of Article 21 (1) through (9) of the Act, necessary matters, other than matters prescribed by paragraphs (1) through (6), concerning the standards for, method of, procedure, etc. for assessment of the price for conversion for sale in lots shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| Article 24 (Investigation into Actual Status, etc. of Insolvent Rental Housing, etc.) | |
| (1) | The head of a Si/Gun/Gu shall, when he/she has received a report on the occurrence of insolvency, etc. from a fund trustee pursuant to Article 23 (1) of the Act, make an investigation into its actual status without delay under Article 24 (1) of the Act. |
| (2) | The head of a Si/Gun/Gu shall, in cases where he/she makes an investigation into the actual status pursuant to Article 24 (1) of the Act, prepare a written investigation into the actual status as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (3) | “Related materials prescribed by Presidential Decree” in Article 24 (3) of the Act means the materials under the following subparagraphs: |
| 1. | Materials concerning the details of a rental contract by household; |
| 2. | Materials concerning the present status of vacant houses; |
| 3. | Materials concerning the present status of arrears in rent and management expenses; |
| 4. | Materials related to loans from the National Housing Fund; |
| 5. | Materials concerning the present status of conversion for sale in lots and progress in auction; |
| 6. | Other materials concerning disputes between rental business operators and lessees. |
| Article 25 (Report on Terms and Conditions of Rental) | |
| (1) | "Rental housing prescribed by Presidential Decree" in the former part of Article 26 (1) of the Act means constructed public rental housing under subparagraph 1 of Article 2, and "matters concerning the terms and conditions of rental prescribed by Presidential Decree" means the matters under the following subparagraphs: <Amended by Presidential Decree No. 21557, Jun. 25, 2009> |
| 1. | Period of rental contract; |
| 2. | Rental deposit; |
| 3. | Rent; |
| 4. | The time for conversion for sale in lots and the standards for assessment of the price for conversion for sale in lots (limited to cases where rental housing falling under the provisions of Article 16 (1) 3 and 4 of the Act from among constructed public rental housing constructed with approval for a business plan pursuant to Article 16 of the Housing Act is converted for sale in lots): Provided, That in cases of constructed public rental housing under the subparagraphs of Article 13 (5), the standards for assessment of the price for conversion for sale in lots shall not be reported. |
| (2) | "Cases prescribed by Presidential Decree" in Article 26 (2) of the Act means cases under either of the following subparagraphs: |
| 1. | Where the details reported are recognized as noticeably unreasonable compared with those of a similar rental house in the vicinity; |
| 2. | Where the details reported are recognized as non-compliant with related Acts and subordinate statutes. |
| (3) | A rental business operator who intends to make a report on the matters under the subparagraphs of paragraph (1) shall submit a report on the terms and conditions of rental with the standard form rental contract under Article 32 of the Act attached thereto to the head of a Si/Gun/Gu having jurisdiction over the place where the relevant rental housing is located within ten days before the expected occupancy date (in cases of a report of change, referring to ten days before the date of change). |
| (4) | The head of a Si/Gun/Gu who has received a report on the terms and conditions of rental pursuant to paragraph (3), shall confirm the details of such report and enter them in the book of reports on the terms and conditions of rental within ten days from the date of receipt of the report in cases where they do not fall under any of the subparagraphs of paragraph (2) and issue a certificate of report of the terms and conditions of rental to the reporter. |
| (5) | In cases where an employer under Article 10 (3) of the Housing Act purchases and rents rental housing constructed by a local government, the Korea Land and Housing Corporation or a registered business operator under Article 9 of the Housing Act or in cases where a local government purchases and rents rental housing constructed by a maintenance and improvement project cooperative under Article 16 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, such employer or such local government shall report the terms and conditions of rental under paragraph (1), including the details falling under Article 16 (1) 1 through 3 and Article 21 of the Act, and Articles 19 and 21 of this Decree. <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| (6) | The head of a Si/Gun/Gu shall publicly announce the terms and conditions of rental reported by a rental business operator pursuant to Article 26 (1) of the Act on the public gazette of the relevant local government by not later than the end of the month following the end of each quarter. |
| Article 26 (Refusals, etc. to Renew Rental Contracts) | |
| (1) | “Cases falling under the matters prescribed by Presidential Decree” in Article 27 (1) of the Act means cases falling under any of the following subparagraphs: <Amended by Presidential Decree No. 21134, Nov. 26, 2008> |
| 1. | Where a lessee has rented a rental house by deceit or other unjust means; |
| 2. | Where a lessee has transferred the right of lease of a rental house to a third party or has sublet a rental house in violation of Article 19 of the Act; |
| 3. | Where a lessee has failed to move into a rental house within three months from the date of commencement of the rental period: Provided, That this shall not apply to cases where the occupation has been delayed due to reasons attributable to the rental business operator; |
| 4. | Where the rent is three or more months consecutively overdue; |
| 5. | Where a lessee rebuilds, enlarges or changes a rental house and its incidental facilities, or uses them for any use other than their original use without consent of the rental business operator; |
| 6. | Where a lessee has intentionally damaged or destroyed a rental house and its incidental facilities; |
| 7. | Where a lessee has come to own another house during the rental period of constructed public rental housing constructed with approval for a business plan pursuant to Article 16 of the Housing Act: Provided, That this shall not apply to cases where a lessee came to own another house by unavoidable reasons, such as inheritance, court judgement, marriage, etc., but has disposed of the relevant house within six months after he/she was notified as a person disqualified for a lessee of the relevant rental house and to cases where he/she has acquired on a first-come-first-served basis the right of lease of a rental house remaining after the selection of occupants at the time of invitation of occupants for the relevant rental housing; |
| 8. | Where a lessee has failed to comply with any obligations in the standard form rental contract under Article 32 of the Act. |
| (2) | The term “cases falling under matters prescribed by Presidential Decree” in Article 27 (2) of the Act means cases falling under any of the following subparagraphs: |
| 1. | Where the head of a Si/Gun/Gu has recognized that there are important defects in a rental house making it difficult to reside therein; |
| 2. | Where a rental business operator has failed to carry out an order for repair of defects within the period given by the head of a Si/Gun/Gu; |
| 3. | Where a rental business operator has damaged or removed incidental facilities and welfare facilities of a rental house contrary to a lessee’s intention; |
| 4. | Where a lessee cannot move into a rental house within three months from the expiry date of the period for occupation by reasons attributable to a rental business operator; |
| 5. | Where a rental business operator has failed to comply with any obligations in the standard form rental contract under Article 32 of the Act. |
| (3) | In cases where a rental business operator of rental housing paid for in installments cancels or terminates a rental contract or refuses to renew a rental contract pursuant to Article 27 of the Act, he/she shall pay the lessee the refund calculated pursuant to the standards prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. <Newly Inserted by Presidential Decree No. 21134, Nov. 26, 2008> |
| Article 27 (Management of Rental Housing) | |
| (1) | The term "scale prescribed by Presidential Decree" in the main sentence of Article 28 (1) of the Act means a rental housing falling under any of the following subparagraphs for each rental housing complex: |
| 1. | Apartment buildings with 300 households or more; |
| 2. | Apartment buildings equipped with elevators; |
| 3. | Apartment buildings with central heating systems. |
| (2) | The term "technical personnel and equipment prescribed by Presidential Decree" in Article 28 (2) of the Act means technical personnel and equipment under the standards described in Annexed Table 4 of the Enforcement Decree of the Housing Act. |
| (3) | Cases where two or more rental business operators may manage rental housing jointly pursuant to Article 28 (3) of the Act mean cases where the head of a Si (including the Seoul Special Metropolitan City Mayor and the Metropolitan City Mayor)/Gun recognizes it as reasonable to jointly manage rental housing because two or more rental housing complexes are adjacent to one another. In such cases, when the standards for technical personnel and equipment under paragraph (2) are applied, they shall be deemed one rental housing complex. |
| Article 28 (Council of Lessees’ Representatives) | |
| (1) | The term “the number of houses prescribed by Presidential Decree” in Article 29 (1) of the Act means 20 houses. |
| (2) | The term “matters prescribed by Presidential Decree” in Article 29 (3) 4 of the Act means matters falling under the following subparagraphs: |
| 1. | Repair of defects; |
| 2. | Matters agreed by a rental business operator and the council of lessees’ representatives on the management of apartments. |
| (3) | In cases where the council of lessees’ representatives requests a rental business operator to hold a consultation about the matters under the subparagraphs of Article 29 (3) of the Act, the rental business operator shall faithfully respond to such request. |
| (4) | The council of lessees’ representatives shall consist of the representatives elected in proportion to the number of households of each building of rental housing (hereinafter referred to as “representatives of each building”). |
| (5) | Any person who may become a representative of each building shall be a lessee who has been continuously residing in the relevant apartment building complex for not less than six months: Provided, That this shall not apply to cases where the council of lessees’ representatives is constituted for the first time. |
| (6) | The council of lessees’ representatives shall elect a chairperson, a vice chairperson and an auditor from among the representatives of buildings. |
| (7) | In cases where it is intended to convene meetings of the council of lessees’ representatives, the purpose, time and place, etc. of such meetings shall be notified to the lessees or publicly announced five days before the date of convocation. |
| (8) | The council of lessees’ representatives shall, without delay, notify the lessees of or publicly announce the conditions of advancement of major affairs, such as matters resolved upon at such council, the results of consultation with rental business operators, etc. |
| (9) | The council of lessees’ representatives shall, when it holds a meeting, prepare and keep the minutes, and if a lessee asks for perusal thereof or reproduction thereof at his/her own expense, it shall comply with such request. |
| Article 29 (Council of Lessees’ Representatives of Insolvent Rental Housing, etc.) | |
| (1) | When the council of lessees’ representatives of insolvent rental housing, etc. submits a report on its establishment to the head of a Si/Gun/Gu pursuant to Article 30 (1) of the Act, it shall attach the minutes of the inaugural general meeting to the report on its establishment which includes the matters under the following subparagraphs: |
| 1. | The date of formation of the council of lessees’ representatives; |
| 2. | The domiciles and names of the chairperson, the vice chairperson and the auditor. |
| (2) | The head of a Si/Gun/Gu who has received a report on the establishment of the council of lessees’ representatives of insolvent rental housing, etc. pursuant to paragraph (1) shall, after confirming the details of such report, issue a certificate of report on the establishment of the council of lessees’ representatives as prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (3) | The term “matters prescribed by Presidential Decree” in Article 30 (2) of the Act means matters falling under the subparagraphs of Article 29 (3) of the Act and those falling under the subparagraphs of Article 28 (2) of this Decree. |
| (4) | The term “cases prescribed by Presidential Decree” in Article 30 (3) of the Act means cases where a rental business operator is missing or lost. |
| Article 30 (Rate, Procedures for Use, etc. of Special Repair Appropriation Funds) | |
| (1) | A rental business operator who has constructed rental housing falling under any of the subparagraphs of Article 27 (1), shall formulate a longterm repair plan under Article 47 of the Housing Act for common areas, incidental facilities and welfare facilities (excluding facilities sold in lots) of the relevant rental housing and shall submit it with an application for inspection of occupancy when he/she makes an application for inspection of occupancy, and retain it in the management office located in the relevant rental housing complex during the rental period. |
| (2) | The long-term repair plan to be submitted and retained pursuant to paragraph (1) shall meet the standards prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
| (3) | Any rental business operator shall accumulate special repair appropriation funds under Article 31 (1) of the Act (hereinafter referred to as “special repair appropriation funds”) each month from the month in which the date when one year has passed following the inspection date of occupancy (referring to the date of approval for temporary occupancy, in cases of obtaining approval for temporary occupancy) falls, and the percentage of accumulation shall be as the percentages under the following subparagraphs: |
| 1. | In cases of rental housing under Article 16 (1) 1 of the Act: 4/10,000 of the standard cost of construction notified by the Minister of Land, Transport and Maritime Affairs; |
| 2. | In cases of rental housing under Article 16 (1) 2 of the Act: 4/10,000 of the standard cost of construction notified by the Minister of Land, Transport and Maritime Affairs; |
| 3. | In cases of rental housing under Article 16 (1) 3 and 4 of the Act: 1/10,000 of the standard cost of construction at the time of approval for a business plan under Article 16 (1) of the Housing Act. |
| (4) | Special repair appropriation funds shall be deposited in a financial institution under the joint names of the rental business operator and the head of a Si/Gun/Gu having jurisdiction over the place where the relevant rental housing is located and shall be managed separately: Provided, That in cases where a rental business operator is the State, a local government, the Korea Land and Housing Corporation, or a local public corporation, they may be deposited in a financial institution under the sole name and managed separately. <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| (5) | When a rental business operator intends to use any of special repair appropriation fund, he/she shall consult in advance with the head of a Si/Gun/Gu having jurisdiction over the place where the relevant rental housing is located. |
| (6) | Except the matters prescribed by this Decree, method of use, detailed procedure for use of special repair appropriation funds and other necessary matters shall be prescribed by the long-term repair plan. |
| Article 31 (Matters for Mediation of Disputes) | |
| 1. | Matters concerning the conversion for sale in lots, housing management, repayment of loans from the National Housing Fund and return of rental deposit, etc. of insolvent rental housing, etc.; |
| 2. | Matters concerning the management of insolvent rental housing, etc. under Article 30 (3) of the Act. |
| Article 32 (Subject Matter for Mediation by Rental Housing Dispute Mediation Committee) | |
| (1) | “Constructed rental housing prescribed by Presidential Decree” in subparagraph 2 of the Article 34 of the Act means constructed public rental housing. |
| (2) | “Matters prescribed by Presidential Decree” in subparagraph 3 of Article 34 of the Act means matters falling under the subparagraphs of Article 31. |
| Article 33 (Composition of Rental Housing Dispute Mediation Committee) | |
| (1) | The members of the Rental Housing Dispute Mediation Committee under Article 33 (1) of the Act (hereinafter referred to as the “Mediation Committee”) shall be appointed or commissioned by the relevant head of a Si/Gun/Gu from among persons falling under any of the following subparagraphs, members falling under any of the following subparagraphs not less than one person, respectively, shall be commissioned and six or more non-governmental members shall be commissioned: <Amended by Presidential Decree No. 21744, Sep. 21, 2009> |
| 1. | Any person who has majored in studies related to housing field, such as law, economics, real property, etc. and has served in schools under subparagraphs 1, 2 or 5 of Article 2 of the Higher Education Act as an assistant professor or higher for not less than one year; |
| 2. | Any person who has worked as a lawyer, certified public accountant, appraiser or licensed tax accountant for not less than one year; |
| 3. | Any person who is a housing controller under Article 56 (2) of the Housing Act and has worked for related affairs for not less than three years; |
| 4. | A public official of Grade 5 or higher performing related affairs, such as authorization, permission, etc. of rental housing business in the State or another local government, who has been recommended by the head of the relevant agency or who is performing the same affairs in the relevant local government; |
| 5. | An executive or employee engaged in the affairs related to rental housing business in the Korea Land and Housing Corporation or in a local public corporation, who has been recommended by the head of the relevant agency. |
| (2) | The vice chairperson of the Mediation Committee shall be elected from among its members. |
| (3) | The term of office of non-public official members shall be two years and they may be appointed consecutively. |
| Article 34 (Meetings) | |
| (1) | Meetings of the Mediation Committee shall be convened by the chairperson. |
| (2) | The chairperson shall advise the members of the agenda for a meeting by not later than two days before the day fixed for such meeting. |
| (3) | Meetings of the Mediation Committee shall be held with the attendance of a majority of its members and decisions shall be made with approval of the majority of members in attendance. |
| (4) | The chairperson shall appoint one person from among officials related to rental housing affairs of the relevant local government as a secretary so that he/she may conduct affairs of the Mediation Committee. |
| (5) | A secretary shall prepare the minutes and keep them pursuant to the Act on the Management of Public Archives, and the matters under the following subparagraphs shall be included in such minutes: |
| 1. | The time and place of each meeting held; |
| 2. | A list of signatures of the members who attended; |
| 3. | The agenda and outcome of each meeting; |
| 4. | Other important matters discussed, etc. |
| (6) | Allowances and travel expenses, etc. may be paid to each member who has attended a meeting of the Mediation Committee within budget limits: Provided, That this shall not apply in cases where a member who is a public official attends a meeting of the Mediation Committee because it is directly related to his/her affairs. |
| (7) | The Mediation Committee may request a rental business operator to submit necessary materials in order to mediate a dispute on the relevant rental house. In such cases, the rental business operator shall faithfully comply with such request. |
| Article 35 (Detailed Rules for Operation) | |
| Article 36 (Standards for Imposition of Penalty Surcharges) | |
| Article 37 (Imposition and Payment of Penalty Surcharges) | |
| (1) | When the head of a Si/Gun/Gu imposes penalty surcharges pursuant to Article 40 of the Act, he/she shall make the standards for imposition and an amount of penalty surcharges clear regarding violation and notify in writing for payment of the penalty surcharges. |
| (2) | Any person who has been notified pursuant to paragraph (1) shall pay a penalty surcharge to a receiving agency designated by the head of a Si/Gun/Gu within 30 days from the date of receipt of the notification: Provided, That when he/she cannot pay a penalty surcharge within that period due to natural disasters or other unavoidable reasons, he/she shall pay it within seven days from the date when such reason has ceased to exist. |
| (3) | A receiving agency which has received a penalty surcharge pursuant to paragraph (2) shall issue a receipt to such payer. |
| (4) | A receiving agency of a penalty surcharge shall, when it has received a penalty surcharge pursuant to paragraph (3), notify the head of a Si/Gun/Gu of such fact without delay. |
| (5) | Other matters necessary for imposition and collection of penalty surcharges shall be prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs. |
