Article 1(Purpose) #
The purpose of this Act is to consolidate financial foundation of local governments by transferring a portion of the national tax revenue to the local governments, and to foster the balanced growth among regions by pushing forward road maintenance projects, etc. <Amended by Act No. 4443, Dec. 21, 1991>
Article 2(Definitions) #
For the purpose of this Act, the definitions of terms used in this Act shall be as follows: <Amended by Act No. 4443, Dec. 21, 1991; Act No. 5174, Dec. 12, 1996>
1. The term “local grant” means the money which the State transfers to the local government under the provisions of Articles 5 and 6; and
2. The term “local government” means a Metropolitan City, Do, Si, Gun, or autonomous Gu (limited to a Gu in a Metropolitan City: hereinafter the same shall apply) among the local government as referred to in the provisions of Article 2 of the Local Autonomy Act.
Article 3(Resource of Grant) #
The resource of local grant (hereinafter referred to as the “grant”) shall be the amount of money which is transferred to the local government under Article 5 (1) of the Act on Adjustment, etc. of National and Local Taxes, and the amount of transferred money from special accounts for the management of special rural development tax to the special accounts for the management of local grant under Article 3 (2) 4 of the Act on the Special Accounts of Management of Special Rural Development Tax (referring to the amount of money which is equivalent to 23/150 of the amount of special rural development tax and is determined by the budget of special accounts for the management of special rural development tax; hereinafter referred to as the “transferred amount of special rural development tax”). <Amended by Act No. 4792, Dec. 22, 1994; Act No. 6550, Dec. 29, 2001>
Article 4(Target Project of Grants) #
(1) The local governments shall use its grants for any project falling under the following subparagraphs: <Amended by Act No. 4684, Dec. 31, 1993; Act Nos. 4792 & 4823, Dec. 22, 1994; Act No. 5174, Dec. 12, 1996; Act No. 6221, Jan. 28, 2000; Act No. 6550, Dec. 29, 2001>
1. Road maintenance project: Among the roads as referred to in the Road Act, the projects for establishment, expansion, pavement, maintenance and management of the roads (limited to those which are prescribed by the Presidential Decree), which are controlled by the Metropolitan City Mayor, local roads, national roads (including alternative bypasses of national roads and connected principal roads of national roads among roads other than national roads: hereinafter the same shall apply) which are controlled by the head of Si, city roads (excluding national roads which are controlled by the mayor: hereinafter the same shall apply), Gun roads and roads in agricultural and fishing villages as referred to in the Act on the Maintenance and Improvement of Road Networks in Agricultural and Fishing Villages;
2. Agricultural and fishing villages area development project: The rearrangement projects for the environment of agricultural and fishing villages under the Rearrangement of Agricultural and Fishing Villages Act and the hinterlands development projects under the Hinterlands Development Promotion Act;
3. Water pollution prevention project: The water pollution prevention projects under the related Acts and subordinate statutes concerning water pollution prevention such as the Water Quality Conservation Act and the Sewerage Act;
4. Project for fostering of youths: The projects for fostering of sound youths under the related Acts and subordinate statutes on fostering youths such as the Framework Act on Juveniles; and
5. Community development project: The general projects of local governments for community development.
(2) Detailed matters necessary for the performance of the project indicated in each subparagraph of paragraph (1) above (hereinafter referred to as the “project unit”) shall be prescribed by the Presidential Decree.
[This Article Wholly Amended by Act No. 4443, Dec. 21, 1991]
Article 5(Distribution Rate of Grants for each Target Project) #
(1) The resources of grant as referred to in Article 3 shall be distributed as follows for the projects indicated in each subparagraph of Article 4 (1): <Amended by Act No. 4684, Dec. 31, 1993; Act No. 4793, Dec. 22, 1994; Act No. 5174, Dec. 12, 1996; Act No. 6052, Dec. 28, 1999; Act No. 6300, Dec. 29, 2000; Act No. 6550, Dec. 29, 2001>
1. Road maintenance project: The total amount of the resources of grant from traffic tax, the amount of money equivalent to 81/1000 of the resources of grant from liquor tax, and the amount of money which is equivalent to 5/10 of the transferred amount of special rural development tax and is determined by the budget of special accounts for the management of special rural development tax;
2. Agricultural and fishing villages area development project: The amount of money equivalent to 141/1000 of the resources of grant from liquor tax;
3. Water pollution prevention project: The amount of money which is equivalent to 466/1000 of the resources of grant from liquor tax, and to 5/10 of the transferred money of the special rural development tax and which is determined by the budget of special accounts for the management of the special rural development tax;
4. Juvenile fostering project: The amount of money equivalent to 12/ 1000 of the resources of grant from liquor tax; and
5. Community development project: The amount of money equivalent to 300/1000 of the resources of grant from liquor tax.
(2) The distribution rate for each project unit of the divided amount of money for the following projects indicated in each subparagraph of paragraph (1) shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 4443, Dec. 21, 1991]
Article 6(Concession Standards for Grants) #
(1) The concession standards for the funds to be delivered to the local government for the project of each subparagraph of Article 4 (1) shall be as follows: <Amended by Act No. 4684, Dec. 31, 1993; Act No. 4792, Dec. 22, 1994; Act No. 5174, Dec. 12, 1996; Act No. 5279, Jan. 13, 1997; Act No. 6550, Dec. 29, 2001>
1. Road maintenance project: The distributed amount of money under Article 5 (hereinafter, referred to as the “distributed amount of money”) shall be delivered according to the standards indicated in the following items:
(a) The money shall be delivered according to the ratio of the roads in the jurisdiction of the head of the local governments, which are not developed, expanded and paved or which are paved;
(b) To the local roads and Gun roads maintenance project, the money shall be delivered according to the standards indicated in item (a) above after examining the middle and long term plan of the local government concerned for the smooth circulation of the section where there exists traffic congestion, and examining the business plan for the year in which the grants shall be delivered; and
(c) In spite of item (a) above, to the national road maintenance project which is controlled by the mayor, the money shall be delivered after examining the middle and long term plan of the central administrative agency concerned and the local government and the business plan of the year when the grants shall be delivered; and to city roads maintenance project, it shall be conceded by after examining the middle and long term plan of the local government and the business plan for the year in which the grants shall be delivered;
2. Development project for agricultural and fishing villages area: The distributed amount of money shall be delivered according to the standards indicated in the following items. In this case, a region where Myeon is changed into Eup during carrying out of the development project for agricultural and fishing villages area shall be considered as Myeon until the concerned project is completed:
(a) With respect to the agricultural and fishing villages as referred to in subparagraph 1 of Article 2 of the Rearrangement of Agricultural and Fishing Villages Act and the quasi agricultural and fishing villages as referred to in subparagraph 1-2 of Article 2 of the same Act, the money shall be delivered to Si/Gun/autonomous Gu by dividing the amount of money by the number obtained by adding the number of Myeons and that of autonomous Gus (referring to autonomous Gus where quasi agricultural and fishing villages area exceeds 50/100 of the total area of the autonomous Gus). In this case, with respect to Si/ Gun, it shall be delivered according to the ratio of the number of Myeons within the jurisdictional area; and
(b) With respect to the region that is designated and publicly announced as hinterlands development zone in accordance with Articles 4 and 6 of the Hinterlands Development Promotion Act, the money shall be delivered according to the ratio of the number of Myeons within the jurisdictional area of Si/ Gun;
3. Water pollution prevention project: The distributed money shall be delivered after examining the middle and long term plan for the water pollution prevention project of the central administrative agency concerned, and the local government and the business plan of the year in which concession funds shall be conceded;
4. Project for fostering of youths: The distributed money shall be delivered after examining the middle and long term plan for the fostering of youths of the central administrative agency concerned and the local government as well as the business plan for the year in which concession funds shall be delivered; and
5. Community development project: The distributed money shall be delivered according to the deficit ratio of resources of revenue and the need of covered finances of the local government.
(2) The standards for the concession funds for each project unit which shall be conceded to the local government under paragraph (1) shall be prescribed by the Presidential Decree.
(3) In the calculation of the amount of money which shall be delivered to the local government under paragraphs (1) and (2), it shall be revised as prescribed by the Presidential Decree in consideration of its financial situation and population, etc.
[This Article Wholly Amended by Act No. 4443, Dec. 21, 1991]
Article 7(Notification, etc. of Grants) #
(1) Where the Minister of Government Administration and Home Affairs intends to determine the concession funds which shall be delivered to the local government under Article 6, he shall consult with the head of the central administrative agency concerned on the matters necessary for the calculation of grants. <Amended by Act No. 6550, Dec. 29, 2001>
(2) Where the Minister of Government Administration and Home Affairs has determined the grants, he shall notify it to the head of the central administrative agency concerned and to the head of the local government. In this case, it shall prepare and send the basis for calculation together with the specifications for each local government. <Amended by Act No. 6550, Dec. 29, 2001>
[This Article Wholly Amended by Act No. 4443, Dec. 21, 1991]
Article 8(Presentation of Materials Necessary for Calculation of Grants) #
(1) The head of the local government shall submit the materials necessary for the calculation of grants which shall be conceded to the local government as prescribed by the Presidential Decree to the Minister of Government Administration and Home Affairs and the head of the central administrative agency concerned. <Amended by Act No. 6550, Dec. 29, 2001>
(2) The head of the central administrative agency concerned shall submit to the Minister of Government Administration and Home Affairs the materials necessary for the calculation of grants, such as, the target project plan for grants. <Amended by Act No. 6550, Dec. 29, 2001>
[This Article Wholly Amended by Act No. 4443, Dec. 21, 1991]
Article 9(Adjustment of Grant) #
In case where the grants have been conceded according to the calculation materials for grants as referred to in Article 8, and the materials for the calculation are considered to be wrongly prepared, the Minister of Government Administration and Home Affairs shall cut down the amount of money which has been delivered wrongly, and deliver the reduced amount of grants to the local government concerned in the following year. <Amended by Act No. 4443, Dec. 21, 1991; Act No. 6550, Dec. 29, 2001>
Article 10(Measures taken by Change of Administrative Jurisdiction) #
The Minister of Government Administration and Home Affairs shall adjust and deliver grants which have been delivered to the local governments concerned as prescribed by the Presidential Decree in case where local governments are divided or merged or their administrative jurisdiction is changed. <Amended by Act No. 6550, Dec. 29, 2001>
Article 10-2(Application for Objection to Grants) #
(1) In case where the head of the local government has received the notification concerning determination of grants pursuant to Article 7 (2), when having objections to the basis, etc. for calculation of determination of grants of the local government concerned, the head of the local government may raise objections to the Minister of Government Administration and Home Affairs within 30 days from the date on which the head of the local government has received such notification. In this case, in a Si/Gun/autonomous Gu, the objection shall be executed when the Metropolitan City Mayor or Do governor pass through the application. <Amended by Act No. 6550, Dec. 29, 2001>
(2) The Minister of Government Administration and Home Affairs shall examine the application for objections, and shall notify the result of examination to the head of the local government concerned within 30 days from the date on which the Minister of Government Administration and Home Affairs has received such application in case where it has received the objections pursuant to paragraph (1) above. <Amended by Act No. 6550, Dec. 29, 2001>
[This Article Newly Inserted by Act No. 5174, Dec. 12, 1996]
Article 11(Guidance and Supervision, etc.) #
(1) The head of the central administrative agency concerned shall give necessary support, guidance, and supervision as referred to in the related Acts and subordinate statutes to the head of the local government so that the target project for grants can be pushed forward efficiently.
(2) The head of the local government shall secure the maximum local resources of revenue required for the business so that the target project for grants can be pushed forward efficiently.
[This Article Newly Inserted by Act No. 4443, Dec. 21, 1991]
Article 12 #
Deleted.<by Act No. 6550, Dec. 29, 2001>