CHAPTER Ⅰ GENERAL PROVISIONS
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| Article 1 (Purpose) |
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The purpose of this Act is to contribute to the creation of growth engines and balanced national development by comprehensively and systematically developing areas in which industries and living infrastructure are underdeveloped in comparison with other areas, but that have growth potential, and by facilitating investments in such areas.
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| Article 2 (Definitions) |
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The terms used in this Act shall be defined as follows: <Amended by Act No. 9629, Apr. 22, 2009; Act No. 10263, Apr. 15, 2010>
| 3. |
The term "comprehensive development plan for underdeveloped areas" means a plan established pursuant to Article 5 for the comprehensive, systematic development of a comprehensive development zone of underdeveloped areas and the facilitation of investments therein; |
| 4. |
The term "development facilitation district in an underdevelopment area" means a district designated pursuant to Article 8 to implement a development project in accordance with the relevant comprehensive development plan for underdeveloped areas; |
| 5. |
The term "investment facilitation district in an underdeveloped area" means a district designated pursuant to Article 21 to facilitate investments therein and support enterprises moving into such district. |
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| Article 3 (Relationship, etc. with other Acts) |
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| (1) |
This Act shall take precedence over any other Act in supportive measures and special cases applicable to comprehensive development zones of underdeveloped areas: Provided, That if any other Act has a provision more lenient than special cases for regulations under this Act, the corresponding provisions of such Act shall apply. |
| (2) |
Comprehensive development plans for underdeveloped areas under this Act shall give full consideration to plans under other Acts that affect comprehensive development zones of underdeveloped areas and shall be in harmony and balance with such plans. |
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| Article 4 (Responsibilities of the State, etc. for Development of Underdeveloped Areas) |
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| (1) |
The State shall establish and implement a comprehensive policy for the development of underdeveloped areas and seek supportive measures therefor. |
| (2) |
Where any underdeveloped area exists within a Metropolitan City, Do or Special Self-Governing Province (hereinafter referred to as "City/Do"), a Metropolitan City Mayor, Do Governor, or Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor) shall establish and implement a plan and a policy on the development of underdevelopment areas with participation of local residents and the cooperation with competent local governments.<Amended by Act No. 10263, Apr. 15, 2010> |
CHAPTER Ⅱ DESIGNATION, ETC. OF COMPREHENSIVE ZONES OF UNDERDEVELOPED AREAS
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| Article 5 (Designation, etc. of Comprehensive Development Zones of Underdeveloped Areas) |
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| (1) |
The Minister of Land, Transport and Maritime Affairs may, at his/her discretion or upon request of the competent Mayor/Do Governor, designate a comprehensive development zone of underdeveloped areas (hereinafter referred to as "comprehensive development zone"): Provided, That if an eligible area extends over two or more Cities/Dos, competent Mayors/Do Governors shall jointly make such request. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
Where the Minister of Land, Transport and Maritime Affairs intends to designate a comprehensive development zone, he/she shall prepare a comprehensive development plan for underdeveloped areas (hereinafter referred to as "comprehensive development plan"), after hearing opinions of the Minister of Public Administration and Safety, consult with competent Mayor/Do Governors and heads of appropriate central administration agencies, and undergo deliberation of the National Land Policy Committee under Article 26 of the Framework Act on the National Land (hereinafter referred to as the "National Land Policy Committee"). In such cases, consultation on strategic environmental impact assessment shall be requested pursuant to Article 16 of the Environmental Impact Assessment Act at the time of consultation with the heads of central administration agencies. <Amended by Act No. 10263, Apr. 15, 2010; Act No. 10758, May 30, 2011; Act No. 10892, Jul. 21, 2011> |
| (3) |
Where a Mayor/Do Governor intends to request the designation of a comprehensive development zone, he/she shall prepare and submit a comprehensive development plan. <Amended by Act No. 10263, Apr. 15, 2010> |
| (4) |
Each comprehensive development plan shall include the following: |
| 1. |
Name, location, and area of the comprehensive development zone; |
| 2. |
Objectives of designation of the comprehensive development zone; |
| 3. |
Matters concerning basic policies on the development of the comprehensive development zone; |
| 4. |
Matters concerning the designation of a development facilitation district and an investment facilitation district in an underdeveloped area; |
| 5. |
Matters concerning the implementation of major development projects; |
| 6. |
Matters concerning the inducement of enterprises and the facilitation of investments; |
| 7. |
Matters concerning the rearrangement and expansion of infrastructure; |
| 8. |
Matters concerning the improvement of a residential environment; |
| 9. |
Matters concerning necessary finances and the procurement thereof; |
| 10. |
Other matters necessary for the development of the comprehensive development zone. |
| (5) |
Paragraphs (1) and (2) shall also apply to any alteration of a comprehensive development zone and any modification to comprehensive development plan: Provided, That the foregoing shall not apply to modifications to any minor matter prescribed by Presidential Decree. |
| (6) |
When the Minister of Land, Transport and Maritime Affairs designates or alters a comprehensive development zone or establishes or modifies a comprehensive development plan, he/she shall give public notice thereof through the Official Gazette, as prescribed by Presidential Decree, and shall also notify the heads of appropriate administration agencies and the heads of local governments thereof. |
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| Article 6 (Requirements for Designation of Comprehensive Development Zones) |
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Each area that the Minister of Land, Transport and Maritime Affairs intends to designate as a comprehensive development zone shall meet the following requirements: <Amended by Act No. 10263, Apr. 15, 2010>
| 1. |
The area shall involve an underdeveloped area and a neighboring Si/Gun/Gu (the area of the neighboring Si/Gun/Gu out of the area of the comprehensive development zone shall not exceed the area ratio prescribed by Presidential Decree); |
| 2. |
The underdeveloped area involved shall be easily accessible by constructing infrastructure and shall have good potential and conditions for development, such as tourism and specialized local industries. |
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| Article 7 (Cancellation of Designation of Comprehensive Development Zones) |
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| (1) |
If the Minister of Land, Transport and Maritime Affairs deems impossible to achieve objectives of the designation of a comprehensive development zone, he/she may cancel the designation, following deliberation by the National Land Policy Committee. <Amended by Act No. 10758, May 30, 2011> |
| (2) |
Article 5 (6) shall also apply to cases where the designation of a comprehensive development zone is cancelled. |
CHAPTER Ⅲ DESIGNATION, ETC. OF DEVELOPMENT FACILITATION DISTRICTS IN UNDERDEVELOPED AREAS
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| Article 8 (Designation, etc. of Development Facilitation Districts in Underdeveloped Areas) |
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| (1) |
The Minister of Land, Transport and Maritime Affairs may, at his/her discretion or upon request of the competent Mayor/Do Governor, designate a development facilitation district in an underdeveloped area (hereinafter referred to as "development facilitation district"), if he/she deems it necessary to promote a development project in the area in accordance with relevant comprehensive development plan. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
When the Minister of Land, Transport and Maritime Affairs intends to designate a development facilitation district, he/she shall establish a development plan of the development facilitation district (hereinafter referred to as "development plan"): Provided, That any Mayor/Do Governor who requests for the designation of a development facilitation district shall prepare a development plan and submit it to the Minister of Land, Transport and Maritime Affairs. <Amended by Act No. 10263, Apr. 15, 2010> |
| (3) |
Each development plan shall include the following: Provided, That the matters prescribed in subparagraph 11 may be included after the relevant development facilitation district is designated: |
| 1. |
Name, location, and area of the development facilitation district; |
| 2. |
Objectives of designation of the development facilitation district and the implementation period of the development project; |
| 3. |
Matters concerning the division of the development facilitation district, if the district is divided into two or more sections for the implementation of the development project; |
| 4. |
Matters concerning the project implementer (limited to cases where the project implementer is designated pursuant to Article 13) and the implementation method of the development project; |
| 5. |
An environmental conservation plan; |
| 6. |
Plans for accommodation of population, traffic control, and land use; |
| 7. |
Plans for installation of major infrastructure, such as roads, waterworks, and sewerage; |
| 8. |
Financing plan and annual investment plans; |
| 9. |
Plans for installation of health and medical services facilities, educational and welfare facilities (only if necessary); |
| 10. |
Matters concerning local specialization development (only if necessary); |
| 11. |
A detailed list of parcels of land, etc. subject to expropriation or use. |
| (4) |
Where the Minister of Land, Transport and Maritime Affairs intends to establish a development plan, he/she shall hear opinions of the competent Mayor/Do Governor and the head of the competent Si (including Mayors of administrative cities under Article 15 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply), Gun or Gu (referring to the head of an autonomous Gu in a Metropolitan City; hereinafter the same shall apply) as well as the opinions of residents and appropriate experts, as prescribed by Presidential Decree, consult with heads of appropriate central administration agencies, and undergo deliberation of the Central Urban Planning Committee under Article 106 of the National Land Planning and Utilization Act and the National Land Policy Committee. In such cases, consultation on strategic environmental impact assessment shall be requested pursuant to Article 16 of the Environmental Impact Assessment Act at the time of consultation with heads of central administration agencies. <Amended by Act No. 10263, Apr. 15, 2010; Act No. 10758, May 30, 2011; Act No. 10892, Jul. 21, 2011> |
| (5) |
Paragraphs (1), (2), and (4) shall also apply to any alteration of a development facilitation district and a modification to a development plan: Provided, That the foregoing shall not apply to matters that shall be kept confidential for national defense or a modification to any minor matter prescribed by Presidential Decree. |
| (6) |
When the Minister of Land, Transport and Maritime Affairs designates or alters a development facilitation district or establishes or modifies a development plan, he/she publicly notify details thereof through the Official Gazette, as prescribed by Presidential Decree, and shall also notify heads of appropriate administration agencies and heads of local governments thereof. In such cases, when a development facilitation district is designated and publicly notified, topographic maps, etc. shall be publicly notified in accordance with Article 8 of the Framework Act on the Regulation of Land Use. |
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| Article 9 (Proposals for Designation of Development Facilitation Districts) |
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| (1) |
Any person, other than the State or a local government, who falls under any subparagraph of Article 13 (1) may, if he/she intends to implement a development project of a development facilitation district, propose the competent Mayor/Do Governor to make a request for the designation of the development facilitation district. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
Any person who proposes the designation of a development facilitation district pursuant to paragraph (1) shall prepare a development plan and submit it to the competent Mayor/Do Governor.<Amended by Act No. 10263, Apr. 15, 2010> |
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| Article 10 (Deemed Designation, etc. of Development Facilitation Districts) |
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Where a development facilitation district is designated and publicly notified pursuant to Article 8, designation, establishment, approval, etc. is deemed made or given pursuant to the following subparagraphs with regard to matters consulted with the heads of appropriate administration agencies in relation to such designation, establishment, approval, etc. depending upon the contents of the relevant development plan publicly notified pursuant to Article 8 (6): <Amended by Act No. 9552, Mar. 25, 2009; Act No. 10263, Apr. 15, 2010; Act No. 10599, Apr. 14, 2011; Act No. 10764, May 30, 2011>
| 7. |
The establishment of, or modifications to, master plans for urban/Gun under Articles 18, 22 and 22-2 of the National Land Planning and Utilization Act, and the final confirmation or approval thereof (limited to cases in which a proposed modification to a master plan for urban/Gun with regard to Metropolitan City, Si or Gun (excluding a Gun in a Metropolitan City) that has jurisdiction over development facilitation districts has been established and submitted to a person who has authority to establish such master plan for urban/Gun); |
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| Article 11 (Cancellation of Designation of Development Facilitation Districts) |
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| (1) |
If a development facilitation district falls under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs may cancel the designation thereof: |
| 1. |
If an application for approval of an implementation plan under Article 14 is not filed until three years from the date on which the development facilitation district was designated and publicly notified; |
| 2. |
If purchased parcels of land do not reach or exceed the ratio prescribed by Presidential Decree until two years from the date on which an implementation plan was approved and publicly notified pursuant to Article 14; |
| 3. |
If it is concluded unlikely to achieve objectives of the designation of the development facilitation district. |
| (2) |
Where designation, establishment, approval, alteration, or determination under any subparagraph of Article 10 or authorization, permission, etc. under Article 15 has already been made, given or granted with regard to a development facilitation district, the designation of which is cancelled pursuant to paragraph (1), such designation, establishment, approval, alteration, determination, authorization, permission, etc. shall be deemed reverted to the status before the designation of the development facilitation district is cancelled. |
| (3) |
If the designation of a development facilitation district is cancelled pursuant to paragraph (1), the Minister of Land, Transport and Maritime Affairs shall give public notice thereof and also notify the heads of appropriate administration agencies thereof, as prescribed by Presidential Decree. |
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| Article 12 (Restrictions on Activities, etc.) |
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| (1) |
Any person who intends to conduct any activities prescribed by Presidential Decree within a development facilitation district designated pursuant to Article 8, such as construction of a building, installation of a structure, a change to the form and quality of land, extraction of soil and rocks, division of land, and piling things, and planting of bamboos, shall obtain approval therefor from the head of the competent Si/Gun/Gu. The foregoing shall also apply to an intended modification to any permitted activity. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
Any of the following activities may be conducted without permission, notwithstanding the provisions of paragraph (1): |
| 1. |
Activities conducted for emergency measures necessary to the restoration from a disaster or the control of a disaster; |
| 2. |
Other activities prescribed by Presidential Decree. |
| (3) |
Any person who has already commenced construction works or a project in connection to any activity subject to permission under paragraph (1) may continue the works or project after filing a report with the head of the competent Si/Gun/Gu, as prescribed by Presidential Decree, if he/she already obtained permission for the activity in accordance with relevant Acts and subordinate statutes, or if he/she was not required to obtain permission for such activity, as at the time the relevant development facilitation district is designated and publicly notified. <Amended by Act No. 10263, Apr. 15, 2010> |
| (4) |
The head of the competent Si/Gun/Gu may issue an order for reinstatement to any person who fails to obtain permission or permission for modification, in violation of paragraph (1). In such cases, if the person in receipt of the order fails to comply with such order, the head of the competent Si/Gun/Gu may execute the order on behalf of him/her pursuant to the Administrative Vicarious Execution Act. <Amended by Act No. 10263, Apr. 15, 2010> |
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| Article 13 (Project Implementers) |
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| (1) |
A project implementer to implement the development project of a development facilitation district (hereinafter referred to as "project implementer") shall be designated, among the following persons, by the competent Mayor/Do Governor, hearing opinions from the appropriate head of a Si/Gun/Gu: Provided, That where a development facilitation district extends over two or more Cities/Dos, the relevant Mayor/Do Governor shall designate a project implementer through agreement, and where they fails to reach an agreement, the Minister of Land, Transport and Maritime Affairs shall designate a project implementer: <Amended by Act No. 10263, Apr. 15, 2010> |
| 5. |
A private enterprise (the financial soundness and other elements shall meet the standards prescribed by Presidential Decree); |
| 6. |
A local development corporation incorporated with contribution jointly made by a person under any provisions of subparagraphs 1 through 4 and a person under subparagraph 5 at the ratio prescribed by Presidential Decree. |
| (2) |
If any of the following events occurs, each Mayor/Do Governor may change a project implementer: <Amended by Act No. 10263, Apr. 15, 2010> |
| 1. |
If the designation of a project implementer or the authorization of an implementation plan is cancelled as a result of any administrative disposition; |
| 2. |
If it is deemed difficult to achieve objectives of a development project due to default or bankruptcy of the relevant project implementer or on any other similar ground. |
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| Article 14 (Approval, etc. of Implementation Plans) |
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| (1) |
Each project implementer shall prepare an implementation plan for the relevant development project (hereinafter referred to as "implementation plan"), accompanied by the following documents and drawings, and obtain approval from the competent Mayor/Do Governor. In such cases, the Mayor/Do Governor shall ascertain the project implementer's cadastral map through the joint use of administrative information under the Electronic Government Act: <Amended by Act No. 10263, Apr. 15, 2010> |
| 1. |
The name and address of the person who intends to implement the project (or names of a corporation and its representative, if the project implementer is a corporation); |
| 2. |
The name, implementation period, objectives, location, and area of the project; |
| 3. |
A location map of the project site; |
| 4. |
Ground plans and basic design drawings; |
| 5. |
A development plan by phase (only if necessary to implement the development project by phase under the circumstances for the project); |
| 6. |
A plan for the use and disposition of developed land and other property; |
| 7. |
A financial plan (including an annual investment plan and a financing plan); |
| 8. |
Other matters prescribed by Presidential Decree. |
| (3) |
When each Mayor/Do Governor approves an implementation plan, he/she shall give public notice thereof, as prescribed by Presidential Decree, and notify details of the implementation plan and send copies of related documents to the heads of appropriate administration agencies and the appropriate head of a Si/Gun/Gu. In such cases, the head of a Si/Gun/Gu, in receipt of the details of such implementation plan and the copies of related documents, shall open them to the general public for perusal for not less than 14 days. <Amended by Act No. 10263, Apr. 15, 2010> |
| (4) |
Paragraphs (1) through (3) shall also apply to modifications to implementation plans: Provided, That the foregoing shall not apply to modifications to any minor matter prescribed by Presidential Decree. |
| (5) |
If an exceptional ground prescribed by Presidential Decree exists while performing a development project, a project implementer shall transfer a substitute parcel of land to any land owner. In such cases, the provisions concerning urban development projects carried out by means of land substitution or combined application under the Urban Development Act shall apply mutatis mutandis. |
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| Article 15 (Deemed Authorization, Permission, etc.) |
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| (1) |
When the competent Mayor/Do Governor approves an implementation plan or a modification thereto pursuant to Article 14, with respect to the following permission, authorization, designation, approval, consultation, reporting, etc. concerning the implementation plan (hereinafter referred to as "authorization, permission, etc."), matters consulted with the heads of appropriate administration agencies pursuant to paragraph (3) are deemed obtained authorization, permission, etc. simultaneously as at the time the implementation plan is approved, while such authorization, permission, etc. is deemed publicly notified or announced pursuant to the relevant Act specified in any of the following subparagraphs as at the time the implementation plan is publicly notified: <Amended by Act Nos. 9758, 9763 & 9774, Jun. 9, 2009; Act Nos. 10263 & 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010; Act No. 10599, Apr. 14, 2011> |
| 3. |
Deleted; <by Act No. 10272, Apr. 15, 2010> |
| (2) |
Any project implementer who intends to be entitled to constructive authorization, permission, etc. under paragraph (1) shall submit relevant documents specified by relevant Acts and subordinate statutes together, when it files an application for approval of an implementation plan or a modification thereto. |
| (3) |
When each Mayor/Do Governor approves each implementation plan or a modification thereto pursuant to Article 14, he/she shall consult in advance with the heads of appropriate administration agencies, if the contents of the implementation plan include a matter specified in any subparagraph of paragraph (1). <Amended by Act No. 10263, Apr. 15, 2010> |
| (4) |
If authorization, permission, etc. under any other Act is deemed granted pursuant to paragraph (1), registration and license tax on licenses, fees, rent, etc. that shall be otherwise imposed pursuant to relevant Acts and subordinate statutes shall be exempt.<Amended by Act No. 10221, Mar. 31, 2010> |
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| Article 16 (Expropriation and Use of Land, etc.) |
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| (1) |
If necessary for implementing a development project, each project implementer may expropriate or use parcels of land, things or rights under Article 3 of the Act on Acquisition of and Compensation for Land, etc. for Public Works (hereinafter referred to as "land, etc."): Provided, That each project implementer prescribed in Article 13 (1) 5 shall purchase parcels of land amounting to at least 2/3 of the area of land subject to the relevant development project and obtain consent of at least 1/2 of the total number of the landowners. In such cases, the date on which the designation of a development facilitation district is publicly notified shall be the base date for determining requirements for consent of landowners, and the number of landowners from whom a project implementer acquires parcels of land after the same base date shall be included in the total number of landowners required for the requirements for consent and shall be counted as the number of persons who have given their consent. |
| (2) |
When a detailed list of parcels of land, etc. subject to expropriation or use under paragraph (1) is publicly notified pursuant to Article 8 (6) (if a detailed list of parcels of land, etc. subject to expropriation or use is included in the relevant development plan pursuant to the proviso to Article 8 (3) after the relevant development facilitation district is designated, referring to the time such detailed list is publicly notified), approval for the project and the public notification of approval for the project is deemed granted or given pursuant to Articles 20 (1) and 22 of the Act on Acquisition of and Compensation for Land, etc. for Public Works, while an application for adjudication may be filed during the implementation period ofthe development project specified in the development plan under Article 8, notwithstanding the provisions of Articles 23 (1) and 28 (1) of the same Act. |
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| Article 17 (Restrictions on Disposition of State or Public Property) |
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| (1) |
No parcel of land required to implement a development project, which is owned by the State or a local government and located within a development facilitation district, shall be sold or otherwise disposed of for any purpose, other than purposes stipulated in the relevant development plan. |
| (2) |
Any property required to implement a development project, which is owned by the State or a local government and located within a development facilitation district, may be sold or otherwise transferred to the relevant project implementer under a negotiated contract, notwithstanding the State Property Act and the Public Property and Commodity Management Act. In such cases, the competent Mayor/Do Governor shall consult in advance with the head of an appropriate administration agency on the disuse or disposition of the property. <Amended by Act No. 10263, Apr. 15, 2010> |
| (3) |
The head of an appropriate administration agency in receipt of a request for consultation under the latter part of paragraph (2) shall take necessary measures in relation to the consultation within 30 days after receiving such request. |
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| Article 18 (Completion Inspections, etc.) |
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| (1) |
Each project implementer (excluding the State and local governments) shall, upon completion of all or part of a development project, prepare a project completion report and undergo a completion inspection by the competent Mayor/Do Governor, as prescribed by Presidential Decree. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
In receipt of a project completion report under paragraph (1), the competent Mayor/Do Governor shall conduct a completion inspection without delay. <Amended by Act No. 10263, Apr. 15, 2010> |
| (3) |
If the competent Mayor/Do Governor approves as a result of a completion inspection under paragraph (2) that the development project has been completed in conformity with the implementation plan, he/she shall issue a certificate of completion inspection to the project implementer (excluding the State and local governments) and publicly notify the completion of the project; if the project has not been completed in accordance with the implementation plan, he/she shall without delay take necessary measures, such as corrective works. <Amended by Act No. 10263, Apr. 15, 2010> |
| (4) |
If the State or a local government is a project implementer, the State or the local government shall publicly notify the completion of the project upon completion of all or part of the development project. In such cases, if the project implementer is a State agency, other than the Minister of Land, Transport and Maritime Affairs, the project implementer shall consult in advance with the Minister of Land, Transport and Maritime Affairs and the competent Mayor/Do Governor; if the project implementer is the Minister of Land, Transport and Maritime Affairs, he/she shall consult in advance with the competent Mayor/Do Governor. <Amended by Act No. 10263, Apr. 15, 2010> |
| (5) |
In conducting completion inspections pursuant to paragraph (2) or in publicly notifying the completion of a project pursuant to paragraph (4), matters on which the State or a local government has already consulted with the heads of appropriate administration agencies pursuant to Article 15 (3) in relation to the completion inspection and approval for completion in accordance with the constructive authorization, permission, etc. under Article 15 are deemed successfully passed the relevant completion inspection and obtained approval for completion. |
| (6) |
If each project implementer (excluding the State and local governments) intends to be entitled to constructive completion inspection and approval for completion under paragraph (5), he/she shall submit relevant documents specified by applicable Acts together, when he/she files an application for completion inspection under paragraph (1). |
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| Article 19 (Use and Disposition of Developed Land, etc.) |
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| (1) |
Each project implementer shall use, lease or sell the land developed by the development project or buildings thereon in accordance with the plan for the use and disposition of developed land, etc. stipulated in the relevant implementation plan. |
| (2) |
The use of developed land to be leased or sold as prescribed in paragraph (1), the procedure for, the method of, and persons eligible for lease or sale, and other necessary matters shall be prescribed by Presidential Decree. |
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| Article 20 (Reversion of Public Facilities) |
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Where a project implementer installs a new public facility or installs a public facility replacing the existing one upon implementing the development project of a development facilitation district, Articles 65 and 99 of the National Land Planning and Utilization Act shall apply mutatis mutandis
to reversion of the public facility. In such cases, a project implementer referred to in Article 13 (1) 3 and 4 is construed as administrative authorities acting as a project implementer.
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| Article 21 (Designation, etc. of Investment Facilitation Districts in Underdeveloped Areas) |
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| (1) |
Uponrequest of the competent Mayor/Do Governor, the Minister of Land, Transport and Maritime Affairs may designate an investment facilitation district in an underdeveloped area needed to facilitate investments and provide support to local industries and resident enterprises in accordance with the relevant comprehensive development plan (hereinafter referred to as "investment facilitation district"). <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
When the competent Mayor/Do Governor intends to request for the designation of an investment facilitation district, he/she shall prepare an investment plan in the investment facilitation district (hereinafter referred to as "investment plan"), hearing the opinions of the Minister of Knowledge Economy, and submit the plan to the Minister of Land, Transport and Maritime Affairs. <Amended by Act No. 10263, Apr. 15, 2010> |
| (3) |
Each investment plan shall include the following matters: |
| 1. |
Name, location, and area of the investment facilitation district; |
| 2. |
Objectives of designation of the investment facilitation district and the implementation period of the development project; |
| 3. |
Target of investment and a plan for inducement of investments from enterprises and support therefor; |
| 4. |
A plan for installation of medical services, educational and welfare facilities (only if necessary); |
| 5. |
A plan for construction of major infrastructure (only if necessary); |
| 6. |
A financing plan and annual investment plans; |
| 7. |
Matters concerning the development of local specialization (only if necessary); |
| 8. |
Other matters prescribed by Presidential Decree. |
| (4) |
Article 8 (4) through (6), 9, and 11 shall apply mutatis mutandis to the designation and alteration of an investment facilitation district and the proposal and cancellation of such designation. |
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| Articles 22 Deleted. <by Act No. 10758, May 30, 2011> |
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| Articles 23 Deleted. <by Act No. 10758, May 30, 2011> |
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| Articles 24 Deleted. <by Act No. 10758, May 30, 2011> |
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| Articles 25 Deleted. <by Act No. 10758, May 30, 2011> |
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CHAPTER Ⅴ SUPPORT FOR PROJECT IMPLEMENTERS AND RESIDENT ENTERPRISES
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| Article 26 (Abatement and Exemption of Taxes) |
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| (1) |
If necessary for smoothly performing the development project of a development facilitation district, the State and each local government may abate or exempt corporate tax, income tax, customs duties, comprehensive real estate tax, value-added tax, acquisition tax, registration and license tax, property tax, and other taxes that shall otherwise be imposed on the project implementers of the development facilitation district, as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, and other tax-related Acts. <Amended by Act No. 10220, Mar. 31, 2010> |
| (2) |
The State and each local government may abate or exempt corporate tax, income tax, customs duties, comprehensive real estate tax, value-added tax, acquisition tax, registration and license tax, property tax, and other taxes that shall otherwise be imposed on a domestic or foreign enterprise that moves into a development facilitation district or investment facilitation district (hereinafter referred to as "resident enterprises"), as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act, and other tax-related Acts.<Amended by Act No. 10220, Mar. 31, 2010> |
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| Article 27 (Abatement and Exemption of Charges) |
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The State and each local government may, if necessary for the smooth implementation of the development project of a development facilitation district, abate or exempt the development charge, the farmland conservation charge, the cost for the development of substitute forest resources, and the cost for the development of substitute grassland that shall otherwise be imposed on a project implementer, as prescribed by the Restitution of Development Gains Act, the Farmland Act, the Grassland Act, and the Management of Mountainous Districts Act.
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| Article 28 (Financial Support to Resident Enterprises) |
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| (1) |
The State and each local government may provide a loan for purchase of land, grant abatement or exemption of rent for land or other property, and provide other financial support necessary for a development project to enterprises that move into a development facilitation district or an investment facilitation district. |
| (2) |
The State and each local government may provide financial support necessary for the construction of medical facilities, educational facilities, housing, and convenience facilities to the project implementer and resident enterprises of a development facilitation district and resident enterprises of an investment facilitation district. |
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| Article 29 (Debt Guarantee) |
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| (1) |
Each local government may, if the project implementer of a development facilitation district concludes a financial agreement with a financial institution, guarantee part of debts that the project implementer owes to the financial institution in relation to the relevant development project, subject to resolution of the local council. |
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| Article 30 (Subsidization of Infrastructure and Grant of Subsidies, etc.) |
|
| (1) |
The State, a local government, or any utilities supplier may give priority to supporting infrastructure, such as ports, harbors, roads, water facilities, railroads, telecommunications, electricity, so as to carry out a development project efficiently and induce investments. |
| (2) |
The subsidies that the State grants for a project implemented by a local government pursuant to paragraph (1) may be raised according to the subsidization rate prescribed by Presidential Decree, notwithstanding the differential subsidization rates under Article 10 of the Subsidy Management Act and a subsidization rate under any other Act. <Act No. 10898, Jul. 25, 2011> |
| (3) |
The Minister of Culture, Sports and Tourism may provide a loan or grant a subsidy from the Tourism Promotion and Development Fund under the Tourism Promotion and Development Fund Act to a local government or project implementer to construct infrastructure for the development of the tourism industry or to perform tourism advertisement projects, etc. in a development facilitation district or investment facilitation district. |
law view
| Article 31 (Lease or Sale of State or Public Property) |
|
| (1) |
Notwithstanding the State Property Act and the Public Property and Commodity Management Act, the State or any local government may permit any enterprise that moves into an investment facilitation district to use or profit from State or pubic property or lease or sell it to such enterprise (hereinafter referred to as "lease") under a negotiated contract. |
| (2) |
The State or any local government may terminate a contract for lease or sale pursuant to paragraph (1), if a resident enterprise fails to use the relevant State or public property within the period prescribed by Presidential Decree. |
| (4) |
The State or any local government may, when it leases the land owned by the State or a local government, allow a lessee to erect a factory or any other permanent structure thereon, notwithstanding Article 24 (3) of the State Property Act and Article 13 of the Public Property and Commodity Management Act. In such cases, a condition that such building or structure shall be donated to the State or the local government, or that the land shall be reinstated, upon expiration of the lease contract, shall be attached, taking into consideration the type of facilities. |
CHAPTER Ⅵ SUPPORT FOR FACILITATION OF INVESTMENTS AND IMPROVEMENT OF RESIDENTIAL ENVIRONMENT
law view
| Article 32 (Preferential Designation of Industrial Complexes for Lease Only) |
|
law view
| Article 33 (Preferential Employment of Local Residents) |
|
The project implementer and resident enterprises of a development facilitation district and resident enterprises of an investment facilitation district may preferentially employ settlers who have moved their residence due to the implementation of the project and residents in the relevant comprehensive development zone.
law view
| Article 34 (Support to Educational, Cultural, and Tourism Facilities) |
|
| (1) |
The head of each appropriate administration agency shall give priority to establishing or attracting facilities for cultural activities, tourism, accommodations, entertainment, and sports (hereinafter referred to as "educational, cultural, and tourism facilities"), including schools at different levels, culture centers, libraries, museums, in accordance with the comprehensive development plan. |
| (2) |
Pursuant to paragraph (1), authorization, permission, or any similar disposition may be granted preferentially for a person who intends to establish educational, cultural, or tourism facilities in a comprehensive development zone, or who intends to move such facilities into a comprehensive development zone. |
law view
| Article 35 (Special Cases for Establishment of Schools and Medical Facilities) |
|
| (2) |
Article 36 of the Special Act on the Development of Enterprise Cities shall apply mutatis mutandis to cases where an intent to be entitled to special cases for schools and their curricula exists in order to train human resources appropriate to the characteristics of the comprehensive development zone and to improve educational conditions in a development facilitation district. |
law view
| Article 36 (Special Cases for Housing Supply) |
|
| (1) |
The project implementer of any development facilitation district may give priority to supplying the land developed for housing construction, if a resident enterprise intends to build houses for its employees, a newly established educational institution intends to build houses for its teachers and staff, or a newly established medical institution intends to build houses for its medical doctors, nurses, and other employees. |
| (2) |
Notwithstanding the provisions of Article 38 of the Housing Act, houses supplied in a comprehensive development zone may be preferentially supplied to employees of resident enterprises or teachers, medical doctors, nurses and other employees of newly established educational or medical institutions in the comprehensive development zone. |
| (3) |
A loan for home purchase or for lease on a deposit basis may be provided for persons eligible for preferential supply under paragraph (2) from the National Housing Fund. |
CHAPTER Ⅶ SUPPLEMENTARY PROVISIONS
law view
| Article 37 (Basic Surveys, etc.) |
|
| (1) |
The State, Mayors/Do Governors or project implementers may conduct a basic survey on population, the economy, land use, buildings, structures, and other necessary matters, as prescribed by Presidential Decree, in order to designate a comprehensive development zone and establish a comprehensive development plan therefor pursuant to Article 5, to designate a development facilitation district and establish a development plan therefor pursuant to Article 8, or to establish an implementation plan pursuant to Article 14. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
Any person who intends to conduct a basic survey pursuant to paragraph (1) may request the head of an appropriate administration agency, local government, public institution under the Act on the Management of Public Institutions, or any other appropriate institution to provide necessary data. In such cases, the head of an agency or institution in receipt of a request for providing data shall comply with such request, unless extenuating circumstances exist. |
law view
| Article 38 (Access, etc. to Land) |
|
| (1) |
If deemed necessary for conducting a basic survey under Article 37, the State, the competent Mayor/Do Governor or the relevant project implementer may enter any third person's land or use it as a temporary material storage yard or temporary passage and may alter or remove bamboos, trees, soil, rocks, and other obstacles thereon. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
Articles 130 (2) through (9), Article 131, and Article 144 (1) 1, 2, and 3 of the National Land Planning and Utilization Act shall apply mutatis mutandis to cases falling under paragraph (1). In such cases, the term "the implementer of a planned urban/Gun facility project" shall be construed as "the State, the competent Mayor/Do Governor or a project implementer" under this Act.<Amended by Act No. 10263, Apr. 15, 2010; Act No. 10599, Apr. 14, 2011> |
law view
| Article 39 (Measures for Stabilizing Real Estate Prices and Preventing Reckless Development) |
|
| (1) |
The Minister of Land, Transport and Maritime Affairs, the competent Mayor/Do Governor, and the head of each Si/Gun/Gu shall take measures necessary for stabilizing real estate prices in a comprehensive development zone and for preventing reckless development. <Amended by Act No. 10263, Apr. 15, 2010> |
| (2) |
The Minister of Land, Transport and Maritime Affairs and the competent Mayor/Do Governor shall request the heads of appropriate central administration agencies to take the following measures for the area in which speculative investments in real estate or a sudden rise of real estate prices is anticipated following the designation of a comprehensive development zone: <Amended by Act No. 10263, Apr. 15, 2010> |
| 4. |
Other measures necessary for stabilizing real estate prices. |
| (3) |
Each Mayor/Do Governor shall take necessary measures, such as a modification of an urban/Gun management plan under Article 30 of the National Land Planning and Utilization Act, to prevent reckless development of neighboring areas of a comprehensive development zone.<Amended by Act No. 10263, Apr. 15, 2010; Act No. 10599, Apr. 14, 2011> |
law view
| Article 40 (Supervision) |
|
| (1) |
If a project implementer under this Act falls under any of the following subparagraphs, the competent Mayor/Do Governor may revoke authorization, approval, permission, registration, or designation granted pursuant to this Act, suspend the effects thereof, suspend construction works, or order the project implementer to rebuild, alter, relocate, or remove a building or structure, or to take any other necessary measure: <Amended by Act No. 10263, Apr. 15, 2010> |
| 1. |
If the project implementer obtains authorization, approval, permission, registration, or designation under this Act by fraud or other illegal means; |
| 2. |
If the project implement is found unable to continue a development project due to a change in circumstances or is likely to undermine public interests substantially; |
| 3. |
If the project implementer violates this Act or an order or a disposition thereunder. |
| (2) |
When the competent Mayor/Do Governor makes a disposition pursuant to paragraph (1), he/she shall give public notice thereof through the official bulletin issued by the City/Do.<Amended by Act No. 10263, Apr. 15, 2010> |
law view
| Article 40-2 (Hearings) |
|
If a Mayor/Do
Governor intends to revoke any authorization, approval, permission, registration or designation pursuant to Article 40 (1), he/she shall hold a hearing.
[This Article Newly Inserted by Act No. 10263, Apr. 15, 2010]
law view
| Article 41 (Delegation of Authority) |
|
The Minister of Land, Transport and Maritime Affairs may delegate part of his/her authority under this Act to Mayors/Do Governors or the head of each Si/Gun/Gu, as prescribed by Presidential Decree.<Amended by Act No. 10263, Apr. 15, 2010>
CHAPTER Ⅷ PENAL PROVISIONS
law view
| Article 42 (Penal Provisions) |
|
Any of the following persons shall be punished by imprisonment with prison labor for not more than five years or by a fine not exceeding 50 million won:
| 1. |
A person who make a proposal under Article 9 for the designation or alteration of a development facilitation district pursuant to Article 8 by fraud or other illegal means; |
| 2. |
A person who conducts activities, such as construction of a building and installation of a structure, in a development facilitation district without permission, in violation of Article 12 (1); |
| 3. |
A person who obtains approval of an implementation plan under Article 14 or a modification thereto by fraud or other illegal means; |
| 4. |
A person who performs a development project without approval for an implementation plan or a modification thereto in accordance with Article 14. |
law view
| Article 43 (Joint Penal Provisions) |
|
If the representative of a corporation, or an agent, employee or other servant of a corporation or individual commits an offence under Article 42 in connection with the business of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided
, That where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence, this shall not apply.
law view
| Article 44 (Fines for Negligence) |
|
| (1) |
Any person who fails to comply with an order issued by the competent Mayor/Do Governor pursuant to Article 40 (1) shall be punished by a fine for negligence not exceeding 30 million won. |
| (2) |
Fines for negligence under paragraph (1) shall be imposed and collected by the competent Mayor/Do Governor, as prescribed by ordinance of the relevant City/Do. |
[This Article Wholly Amended by Act No. 10263, Apr. 15, 2010]
ADDENDA
| (1) |
(Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
ADDENDA <Act No. 9552, Mar. 25, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDA <Act No. 9629, Apr. 22, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9758, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 23 Omitted.
ADDENDA <Act No. 9763, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9774, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 19 Omitted.
ADDENDA <Act No. 10220, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 10221, Mar. 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
Articles 2 through 8 Omitted.
ADDENDUM <Act No. 10263, Apr. 15, 2010>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10272, Apr. 15, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 14 Omitted.
ADDENDA <Act No. 10331, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 13 Omitted.
ADDENDA <Act No. 10599, Apr. 14, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 10758, May 30, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 10764, May 30, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 10892, Jul. 21, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 10 Omitted.
ADDENDA <Act No. 10898, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 5 Omitted.
