BALANCED REGIONAL DEVELOPMENT AND SUPPORT FOR LOCAL SMALL AND MEDIUM ENTERPRISES ACT

Article 1(Purpose) #

The purpose of this Act is to contribute to the reasonable utilization, development and preservation of the national territory, by realizing reional development potentialities and inducing voluntary participation of the private sector in regional development projects so that they may be effectively carried out, and at the same time, to contribute to the balanced development of the national territory by actively supporting small and medium enterprises in local areas so that they may revitalize the local economy, and thereby, induce people to settle down in local areas.

Article 2(Definitions) #

The definitions of terms used in this Act shall be as follows: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act Nos. 6654 & 6655, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

1. The term "regional development plan" means the following plans which are to be established and carried out for the sake of systematic regional development:

(a) The Do master plan and the Si/Gun master plans which are drawn up in accordance with the provisions of Article 6 (2) 2 and 3 of the Framework Act on the National Land;

(b) The basic urban planning and the urban management planning that are all drawn up in accordance with Articles 18 and 30 of the National Land Planning and Utilization Act; and

(c) The multi-districts development project plan, the development plan for development promotion district, the development plan for specific region and the development plan for regional comprehensive development district pursuant to the provisions of Articles 5, 14, 26-4 and 38-3;

2. The term "regional development project" means such a development project as is for the execution of the regional development plan;

3. The term "private developer" means an individual, such a corporation as established under the Commercial Act or the Civil Act and such a regional development corporation as established under Article 30;

4. The term "privately-invested regional development project" means such a regional development project as is carried out by a private developer with his own capital and technology, etc., in accordance with the plan for inducement of private capital as prescribed in Article 27;

5. Deleted; and <by Act No. 7695, Nov. 8, 2005>

6. The term "local small and medium enterprise" means one of the followings and its head office, main office or one of its business places is located within the jurisdictional sphere of the Special Metropolitan City, a Metropolitan City, or a Do (hereinafter referred to as the "City/Do"):

(a) Such a small and medium enterprise owner as prescribed in Article 2 (1) or (2) of the Framework Act on Small and Medium Enterprises; and

(b) Such a small and medium enterprise cooperative as prescribed in subparagraphs 1 through 3 of Article 3 of the Small and Medium Enterprise Cooperatives Act.

Article 3(Responsibilities of State, etc.) #

(1) The State shall establish such policies as are for the even distribution, over all of the different local areas, of the administrative, industrial, educational, cultural and sight-seeing, etc., facilities which are for the enhancement of the national living standards and for the regional development; and shall devise supporting measures for the fulfillment of the said policies.

(2) The State and the local government shall procure, first of all, such financial resources as are necessary for the establishment and implementation of the regional development plan; and if necessary, may establish the private capital and technology, etc., inducement plan for the regional development project.

Article 4(Designation of Multi-Districts Development Areas) #

(1) In a case where the Minister of Land, Transport and Maritime Affairs deems it necessary to extensively develop a Metropolitan City linking itself to its neighboring areas, an industrial complex linking itself to its surrounding areas, or several different cities which are adjacent to one another, and thereby, are sharing the same social facilities among themselves and a district, etc. that is in need of the joint development and control of resources, he may designate the area in question as a multi-districts development area, and develop it. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

(2) In a case where the Metropolitan City Mayor or Do governor deems it necessary for the development of his administrative sphere, he may request the Minister of Land, Transport and Maritime Affairs to designate all or part of the said sphere as a multi-districts development area. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

(3) In a case where the Minister of Land, Transport and Maritime Affairs intends to designate a multi-districts development area under paragraph (1), he shall prepare a proposal for the designation of a multi- districts development area, under the conditions as prescribed by Presidential Decree, and then, shall consult about the proposal with the heads of the relevant central administrative agencies and the Metropolitan City Mayor or Do governor. The same shall apply where alterations are to be made to the designation of a multi-districts development area: Provided, That this shall not apply where alterations are to be made to such minor matters as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6654, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005; Act Nos. 8852 & 8870, Feb. 29, 2008>

(4) In a case where the Minister of Land, Transport and Maritime Affairs has designated a multi-districts development area or has made an alteration thereto, under paragraph (1), he shall give a public notice of the following subject matters: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

1. The name and scope of the multi-districts development area in question;

2. The basic goal of the development in question;

3. The period of the designation; and

4. Such other matters as prescribed by Presidential Decree.

(5) In a case where the period of the designation, as provided in paragraph (4) 3, has expired, the designation of a multi-districts development area shall be regarded as having been extinguished as of the day immediately following the expiration date.

Article 5(Establishment of Multi-Districts Development Project Plan) #

(1) In a case where all or part of administrative sphere is included in such a multi-districts development area as designated and given a public notice of under Article 4, the Metropolitan City Mayor or Do governor shall prepare a multi-districts development project plan (hereinafter referred to as the "multi-districts development plan"), after having heard the opinion of the head of Si/ Gun concerned, under the conditions as prescribed by Presidential Decree, and then shall submit the said plan to the Minister of Land, Transport and Maritime Affairs: Provided, That in a case where a multi-districts development area has been designated extending over not less than two Metropolitan Cities or Dos, the Metropolitan City Mayors or Do governors concerned shall prepare the multi- districts development plan as a joint venture. <Amended by Act No. 5454, Dec. 3, 1997; Act No. 8852, Feb. 29, 2008>

(2) In case of such a multi-districts development area as designated extending over not less than two Metropolitan Cities or Dos, and where the Minister of Land, Transport and Maritime Affairs deems it necessary for the accomplishment of a goal of the State, he may prepare, for himself, the multi-districts development plan after having heard the opinion of the Metropolitan City Mayors or Do governors concerned, or may designate the person to prepare the multi-districts development plan from among the Metropolitan City Mayors or Do governors concerned. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

(3) In a case where the multi-districts development plan is to be prepared under paragraph (1) or (2), the opinions of the residents and experts concerned shall be heard under the conditions as prescribed by the Presidential Decree, and in a case where the said opinions have been found to be resonable enough, they shall be reflected in the said multi-districts development plan.

(4) In a case where the Minister of Land, Transport and Maritime Affairs has received the multi-districts development plan prepared by the Metropolitan City Mayor or Do governor, or has prepared the multi-districts development plan for himself, as prescribed in paragraph (1) or (2), he shall consult about the plan in question with the heads of the central administrative agencies concerned, and determine such plans and the same shall apply to a case where he intends to alter the plans: Provided, That the same shall not apply to a case where he changes insignificant matters prescribed by Presidential Decree, including the case of changing the location where he is to undertake a development project on the grounds of topography, etc. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(5) In a case where the Minister of Land, Transport and Maritime Affairs finally decides on or alters any multi-districts development plan in accordance with paragraph (4), he shall publish details of such decision and alteration in the Official Gazette under the conditions as prescribed by Presidential Decree. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

Article 6(Contents of Multi-Districts Development Plan) #

The multi-districts development plan as prescribed in Article 5, shall include detailed project plans on the following subject matters: <Amended by Act No. 6641, Jan. 26, 2002>

1. Matters concerning the utilization of the land located within the multi- districts development area concerned, for instance, industrial sites, residential complexes and rest areas which are to be arranged therein;

2. Matters concerning the arrangement of such public facilities as traffic facilities, water supply facilities and sewerage facilities, etc., which are to be commonly used in the multi-areas concerned;

3. Matters concerning the installation of garbage dump sites, wastes disposal facilities, etc., for the multi-areas concerned;

4. Matters concerning the development of cultural and tourism resources;

5. Matters concerning the preservation of environment such as the protection of natural sceneries, the preservation of ecosystem and the security of green spaces, etc;

6. Matters concerning the amount of the investment necessary for the execution of such projects as prescribed in subparagraphs 1 through 5; and

7. Other matters which are deemed to be necessary for the comprehensive development of the multi-districts development area concerned, and at the same time, prescribed by the Presidential Decree.

Article 7(Relation with Other Plans) #

When establishing a multi-districts development plan under Article 5, the Minister of Land, Transport and Maritime Affairs shall give priority to what is needed for such development plans as established under other Acts. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

Article 8(Implementation of Multi-Districts Development Plans, etc.) #

(1) Such projects as are prescribed in the multi-districts development plan, that has been decided on and given a public notice of under Article 5 (5), shall be respectively carried out in accordance with the procedures prescribed by each Act which is related to each of the said project. <Amended by Act No. 6641, Jan. 26, 2002>

(2) Every year, the Minister of Land, Transport and Maritime Affairs shall evaluate the results of the execution of the multi-districts development plan, under the conditions as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(3) The Minister of Land, Transport and Maritime Affairs may, when it is necessary to make the evaluation required by paragraph (2), request the heads of central administrative agencies concerned and the heads of local governments to submit related materials. In this case, the heads of central administrative agencies concerned and the heads of local governments shall comply with such request unless the special grounds exist that make it impossible for them to do so. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

Article 9(Designation of Development Promotion District) #

(1) In a case where the Minister of Land, Transport and Maritime Affairs deems it necessary to promote the development of such areas as have been underdeveloped compared to other areas, he may designate a development promotion district at his own discretion or at the request of the Metropolitan City Mayor or Do governor. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

(2) The Metropolitan City Mayor or the Do governor shall, when he asks for the designation of any development promotion district under paragraph (1), consult with the head of Si/Gun/Gu (referring to the autonomous Gu; hereafter the same shall apply) thereabout in advance. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(3) The head of Si/Gun/Gu, a person falling under Article 16 (1) 1 and 2 or a private developer intending to participate in the regional development project may propose the designation of development promotion district to the Minister of Land, Transport and Maritime Affairs as prescribed by Presidential Decree. <Newly Inserted by Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

Article 10(Criteria for Designation of Development Promotion District) #

(1) When designating a development promotion district, the Minister of Land, Transport and Maritime Affairs shall decide on the minimum area, as the object of the designation under consideration, necessary for the accomplishment of the purpose of the designation having taken the following conditions into account: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

1. The gross products and the financial independence rate of the area in question shall be remarkably lower than those in other areas;

2. The number of the people living in the area in question has been continuously decreasing or has been maintaining the status quo;

3. To develop new sources of income in the area in question is absolutely necessary because the previous industries of the said area have been on a dramatic decline following some changes in economic conditions; and

4. The rearrangement of the production and living environment shall be required for the area in question for the sake of the balanced development of different local areas.

(2) Detailed prerequisites for the designation of a development promotion district as prescribed in paragraph (1), shall be prescribed by Presidential Decree.

Article 11(Procedures, etc., for Designation of Development Promotion District) #

(1) In a case where the Minister of Land, Transport and Maritime Affairs intends to designate a development promotion district, he shall in advance consult with the heads of the central administrative agencies concerned. The same shall apply where alterations are to be made to the designation of the development promotion district: this provisions shall not apply where alterations are to be made to such minor matters as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(2) In a case where the Minister of Land, Transport and Maritime Affairs has designated a development promotion district, or has made an alteration to the designation thereof, he shall give a public notice of the following subject matters: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

1. The scope of the development promotion district in question;

2. The basic orientation of the development in question;

3. The period of the designation; and

4. Such other matters as prescribed by Presidential Decree.

(3) Deleted. <by Act No. 6641, Jan. 26, 2002>

Article 11-2(Designation Cancellation of Development Promotion District) #

(1) When the designation period provided for in Article 11 (2) 3 lapses, the designation of the relevant development promotion district shall be deemed cancelled on the date following the date on which the designation period thereof lapses: Provided, That regarding the project district, from among development promotion districts, for which an approval of execution plan pursuant to the provisions of Article 17 has been obtained before the elapse of the designation period, the designation of development promotion district shall be deemed cancelled on the date following the expiration date of the business period set by the execution plan. <Amended by Act No. 7695, Nov. 8, 2005>

(2) The Minister of Land, Transport and Maritime Affairs may, when any development project in any development promotion district is completed, or prospects for the development of such district vanish, cancel the designation of the relevant development promotion district at his own discretion or at the request of the Metropolitan City Mayor or the Do governor after consulting with the heads of the central administrative agencies concerned and the head of the relevant local government. <Amended by Act No. 8852, Feb. 29, 2008>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 12(Restriction on Designation of Development Promotion District) #

(1) No part of Seoul Metropolitan Area prescribed in the provisions of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act shall be designated as a development promotion district. <Amended by Act No. 7695, Nov. 8, 2005>

(2) In a case where the Minister of Land, Transport and Maritime Affairs deems it necessary for the equal degree of development of different local areas, he may decide on the total area allowed for development promotion districts by Metropolitan Cities and Dos, under the conditions as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

Article 13 #

Deleted.<by Act No. 6641, Jan. 26, 2002>

Article 14(Establishment, etc. of Development Plan) #

(1) In a case where a development promotion district has been designated and given a public notice of under Article 11, the head of Si/Gun/Gu shall, under the conditions as prescribed by the Presidential Decree, prepare a development plan for the development promotion district in question (hereinafter referred to as the "development plan"): Provided, That in case that any designated development promotion district extends over not less than two Sis/Guns/Gus (referred to the autonomous Gu; hereinafter the same shall apply), the Metropolitan City Mayor or the Do governor shall draw up a development plan after consulting with the heads of Sis/Guns/Gus.<Amended by Act No. 5454, Dec. 13, 1997; Act No. 5799, Feb. 5, 1999; Act No. 6641, Jan. 26, 2002>

(2) The Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu shall, when he draws up a development plan in accordance with paragraph (1), decide on such development plan after consulting with the heads of administrative agencies concerned thereabout and the same shall apply to a case where he intends to alter such development plan: Provided, That the same shall not apply to a case where insignificant matters prescribed by the Presidential Decree are changed or a location where a development project is to be undertaken is changed on the grounds of topography, etc. <Amended by Act No. 6641, Jan. 26, 2002>

(3) With respect to any project plan that is implemented by the State or is to be financed by the State (hereinafter referred to as "State-financed project plan") from among development plans, notwithstanding the provisions of paragraph (1), the Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu shall obtain approval therefor from the Minister of Land, Transport and Maritime Affairs and the same shall apply to a case where he intends to alter any approved project plan. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

(4) The Minister of Land, Transport and Maritime Affairs shall, when he intends to approve any State-financed project plan under paragraph (3), consult in advance with the heads of central administrative agencies concerned thereabout and the same shall apply to a case where he intends to alter any approved project plan: Provided, That the same shall not apply to a case where insignificant matters prescribed by Presidential Decree are altered or any location where a development project is to be undertaken is altered on the grounds of topography, etc. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(5) The Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu shall, when he intends to draw up a development plan under paragraphs (1) through (3), hear opinions of residents and related experts under the conditions as prescribed by the Presidential Decree and reflect their opinions, if deemed appropriate, in such development plan. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(6) The Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu shall, when he draws up a development plan under paragraphs (1) through (3) or obtains approval for a State-financed project plan from the Minister of Land, Transport and Maritime Affairs, publish details of such development plan and such State-financed project plan under the conditions as prescribed by Presidential Decree. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

(7) In the development plan shall be included matters concerning the execution of the following projects: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

1. Such projects as are for the formation of production platform and such projects as are supplementary thereto;

2. Such projects as are for the installation and improvement of the facilities of which the purpose is to enhance the living environment of the residents concerned;

3. Such projects as are for the rearrangement of the infrastructures, such as traffic facilities, water supply facilities, etc., of which the purpose is the development of the local area concerned;

4. Such projects as are for the increase of the income of the residents concerned, for instance, the preparation of tourist resorts and the support for the industries which may be specialized in the local area concerned;

5. Such environment-related projects as are for the preservation of nature and environment, etc.; and

6. Such other projects as deemed to be necessary for the accomplishment of the goal of the designation of the development promotion district in question, and therefore, selected by the Minister of Land, Transport and Maritime Affairs after his consultation with the heads of the central administrative agencies concerned.

(8) Where the executioner has not applied for approval of execution plan pursuant to the provisions of Article 17 within three years from the date of public notification of the development plan under paragraph (6), the Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu shall investigate the status of project promotion, reason of delay, etc. and submit an onward disposal plan to the Minister of Land, Transport and Maritime Affairs. In this case, where it is recognized as necessary in consideration of the onward disposal plan, etc., the Minister of Land, Transport and Maritime Affairs may have the Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu modify the development plan, or revoke the approval of the State-financed project plan pursuant to the provisions of paragraph (3). <Newly Inserted by Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

Article 15(Restrictions, etc. on Acts) #

(1) Where a development plan has been notified publicly pursuant to the provisions of Article 14 (6), a person who intends to perform an act falling under any of the following subparagraphs within the region subject to development project shall obtain permission thereof from the head of Si/Gun/Gu. The same shall apply to the case where he intends to have the permitted matters modified:

1. The construction of building: the construction of a building pursuant to the provisions of Article 2 (1) of the Building Act, and the modification of use thereof;

2. The installation of structures;

3. The change in the form and quality of land: the act of changing the form and quality of land by means of the cutting of land, piling up of land, levelling of ground, paving, etc. and the public waters reclamation;

4. The cutting and planting of bamboos and trees;

5. The collection of earth and rock: the act of collecting earth and rock, such as soil, sand, aggregate, rock, etc.;

6. The parcelling out of land; and

7. The act of heaping up things that may hinder the execution of development project.

(2) Notwithstanding the provisions of paragraph (1), the acts falling under any of the following subparagraphs may be executed without permission:

1. The acts performed for the emergency measures necessary for the restoration from disaster or control of calamity; or

2. Other acts prescribed by the Presidential Decree.

(3) A person who has started construction or business regarding an activity that requires permission pursuant to the provisions of paragraph (1), however, of which permission was already received pursuant to relevant

Acts and subordinate statutes at the time of public notification of development plan, or of which permission was not necessary at the time of public notification of development plan, may continue the performance after reporting to the head of Si/Gun/Gu as prescribed by the Presidential Decree.

(4) The head of Si/Gun/Gu may order the person who has violated the provisions of paragraph (1) to restore it to the original state. Where the ordered person fails to perform his duties, the head of Si/Gun/Gu may execute vicariously pursuant to the Administrative Vicarious Execution Act.

(5) The provisions of Articles 57 through 60 and 62 of the National Land Planning and Utilization Act shall apply mutatis mutandis to the permission pursuant to the provisions of paragraph (1) except for those prescribed in this Act.

(6) Where it has been permitted pursuant to the provisions of paragraph (1), it shall be deemed as having been permitted pursuant to the provisions of Article 56 of the National Land Planning and Utilization Act.

[This Article Wholly Amended by Act No. 7695, Nov. 8, 2005]

Article 16(Executor) #

(1) Such a regional development project as executed within a development promotion district (hereinafter referred to as the "district development project") may be carried out by the following persons, notwithstanding the relevant provisions of other Acts: <Amended by Act No. 7695, Nov. 8, 2005>

1. The State or a local government;

2. Such a government-invested institution as prescribed by the Presidential Decree;

3. Such a local public enterprise as prescribed in the Local Public Enterprises Act (hereinafter referred to as the "local public enterprise"); or

4. The person, other than those referred to in subparagraphs 1 through 3, designated to carry out the district development project.

(2) The head of competent Si/Gun/Gu shall designate an executor of a district development project (excluding the case where the State or the local government directly executes such project) as prescribed by the Presidential Decree in consideration of the matters in the following subparagraphs. In this case, where it has been deemed to be necessary for the procurement of the funds, or for the utilization of developed technologies, which are required for the execution of the district development project in question, not less than two executors may be jointly designated, and where the district development project extends over not less than two Sis/Guns/Gus and no agreement is reached among the head of Sis/Guns/Gus thereabout as a result of their consultations, the Metropolitan City Mayor or the Do governor may designate an executor of such project: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5799, Feb. 5, 1999; Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005>

1. The contents and size of project according to the development plan;

2. The capability to raise necessary fund;

3. The capability and experience in the execution of regional development project; and

4. The connection, etc. with other regional development projects.

(3) As for the district development project executed in accordance with the proposal of designation pursuant to the provisions of Article 9 (3) in designating an executor pursuant to the provisions of paragraph (2), the person who has proposed designation may be designated in the first place. <Newly Inserted by Act No. 7695, Nov. 8, 2005>

(4) In case that the Metropolitan City Mayor, the Do governor or the head of Si/Gun/Gu (hereinafter referred to as the "designator") has designated the executor of a district development project under paragraph (2), he shall give a public notice thereof under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5799, Feb. 5, 1999; Act No. 6641, Jan. 26, 2002>

Article 17(Approval of Execution Plan) #

(1) The executor of a district development project shall prepare his execution plan under the conditions as prescribed by the Presidential Decree, and shall obtain approval of it from the designator: Provided, That if the State or the head of a local government prepares the execution plan directly, the consultation with the head of Si/Gun/Gu shall be made, and such consultation shall be deemed to be the approval of the execution plan. <Amended by Act No. 5799, Feb. 5, 1999; Act No. 7695, Nov. 8, 2005>

(2) Any designator shall, when he intends to grant approval for an execution plan in accordance with paragraph (1), consult with the heads of administrative agencies concerned thereabout in advance and the same

shall apply to a case where the State or the head of any local government draws up such execution plan for itself or himself. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(3) In a case where the designator has approved an execution plan in accordance with the provisions of paragraph (1), he shall give a public notice thereof under the conditions as prescribed by the Presidential Decree. The same shall apply where the State or the head of a local government has prepared the execution plan directly. <Amended by Act No. 5799, Feb. 5, 1999>

(4) In a case where the designator gives a public notice of an execution plan under paragraph (3), and where in the execution plan in question is included such a plan as required for the expropriation of not only land, building, or fixtures of the land, but also such rights, other than the ownership, as the mining claim, fishing right, or the right of using water, concerning the said land, building, or fixtures of the land (hereinafter referred to as the "land, etc"), the designator shall include, in the public notice to be given, the detailed information on the address and name of the executor of the district development project concerned, the type of the project concerned, and the land or building, etc., to be expropriated, and at the same time, shall notify the said information to the owner, or the person of other rights, of the land, etc.: Provided, That the notification may be omitted in a case where the executor of the district development project concerned has had a consultation with the owner, or the person of other rights, of the land, etc., before the said executor files the application for approval of his execution plan. <Amended by Act No. 6641, Jan. 26, 2002>

(5) The provisions concerning land substitution of the Urban Development Act may apply mutatis mutandis in cases where the executor needs land substitution for the execution of a district development project. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005>

Article 18(Authorization, Permission, etc. Deemed Granted under other Acts) #

(1) Where the designator, the State or local government prepares or grants approval of an execution plan pursuant to Article 17, the matters that have been conferred with the head of the relevant administrative agency pursuant to paragraph (3) regarding determination, permission, report, authorization, designation, approval, consultation, etc. (hereinafter referred to as "authorization, permission, etc") on the execution plan concerned in the following subparagraphs shall be deemed to have been obtained, and where the execution plan has been notified publicly pursuant to Article 17 (3), the public notification or public announcement of the authorization, permission, etc. under the related Acts shall be deemed to have been made: <Amended by Act No. 5454, Dec. 13, 1997; Act Nos. 5893, 5911 & 5914, Feb. 8, 1999; Act No. 6641, Jan. 26, 2002; Act No. 6655, Feb. 4, 2002; Act No. 6841, Dec. 30, 2002; Act No. 6916, May 29, 2003; Act No. 7678, Aug. 4, 2005; Act No. 7695, Nov. 8, 2005; Act No. 8014, Sep. 27, 2006; Act Nos. 8337 & 8338, Apr. 6, 2007; Act Nos. 8343, 8346, 8352 & 8370, Apr. 11, 2007; Act No. 8819, Dec. 27, 2007; Act Nos. 8970, 8974 & 8976, Mar. 21, 2008; Act No. 9401, Jan. 30, 2009; Act No. 9774, Jun. 9, 2009; Act No. 10000, Feb. 4, 2010; Act No. 10272, Apr. 15, 2010; Act No. 10331, May 31, 2010>

1. Decision on the urban management planning as prescribed in Article 30 of the National Land Planning and Utilization Act, permission for development acts under Article 56 of the same Act, designation of the implementor under Article 86 of the same Act, authorization for an implementation plan under Article 88 of the same Act, permission for a land transaction contract under Article 118 of the same Act;

2. Permission under Article 35 (1) 1, 2 and 4 of the Cultural Heritage Protection Act, the permission for the use of the state-owned land as prescribed in the proviso to Article 66 of the same Act;

3. Conversion permission of mountainous districts and conversion report of mountainous districts under Articles 14 and 15 of the Management of Mountainous Districts Act, permission for or reporting on temporary use of mountainous districts under Article 15-2 of the same Act, and permission for and reporting on cutting of standing timber, etc. under Articles 36 (1) and (4) and 45 (1) and (2) of the Creation and Management of Forest Resources Act;

4. Permission for deforestation, etc. as prescribed in Article 14 of the Work against Land Erosion or Collapse Act, and the cancellation of the designation as erosion and protection land as prescribed in Article 20 of the same Act;

5. Permission for, or consultation about the conversion of the original usage of farmland as prescribed in Article 34 of the Farmland Act;

6. Deleted; <by Act No. 5454, Dec. 13, 1997>

7. Authorization of business related to water supply and waterworks installation as prescribed in Articles 17, 49, and 50 of the Water Supply and Waterworks Installation Act;

8. Permission for business related to the public sewerage as prescribed in Article 16 of the Sewerage Act;

9. Permission for occupation-and-use and use of public waters under Article 8 of the Public Waters Management and Reclamation Act, approval for or reporting on implementation plans for occupation-and-use and use under Article 17 of the same Act, establishment, amendment and determination of reclamation basic plans under Articles 22 and 27 of the same Act, a reclamation license of public waters under Article 28 of the same Act, consultation about or approval for reclamation executed by the State, etc. under Article 35 of the same Act;

10. Deleted. <by Act No. 10272, Apr. 15, 2010>

11. Permission for the implementation of a port-related construction work as prescribed in Article 9 (2) of the Harbor Act, and approval of the implementation plan of a port-related construction work as prescribed in Article 10 (2) of the same Act;

12. Permission for the implementation of a river construction work as prescribed in Article 30 of the River Act, the permission for the occupation-and-use and use of a river as prescribed in Article 33 of the same Act and permission for the use of river water as prescribed in Article 50 of the same Act;

13. Permission for the implementation of a road construction work as prescribed in Article 34 of the Road Act, and permission for occupation-and-use and use of a road as prescribed in Article 38 of the same Act;

14. Deleted; <by Act No. 5654, Jan. 21, 1999>

15. Deleted; <by Act No. 6655, Feb. 4, 2002>

16. Designation of any implementor under Article 11 of the Urban Development Act, the authorization of establishment of the association under Article 13 of the same Act, the authorization of any implementation plan under Article 17 of the same Act, and the authorization of any land substitution plan under Article 29 of the same Act;

17. Approval of a project plan as prescribed in Article 16 of the Housing Act;

18. Designation of a prearranged area as prescribed in Article 3 of the Housing Site Development Promotion Act, and approval of an implementation plan as prescribed in Article 9 of the same Act;

19. Designation of an industrial complex as prescribed in Articles 6 through 8 of the Industrial Sites and Development Act, approval of an implementation plan for the development of an industrial complex as prescribed in Articles 17 through 18-2 of the same Act, and approval of an implementation plan for the development of an agro-industrial complex as prescribed in Article 19 of the same Act;

20. Permission for the conversion of the original usage of grassland as prescribed in Article 23 of the Grassland Act;

21. Deleted; <by Act No. 5454, Dec. 13, 1997>

22. Examination on the publication of maps, etc. under Article 15 (3) of the Act on Land Survey, Waterway Survey and Cadastral Records;

23. Permission for use under Article 30 of the State Property Act;

24. Permission for the implementation of any small river construction work under Article 10 of the Small River Maintenance Act, and the permission for occupation-and-use and use of a small river under Article 14 of the same Act;

25. Permission for the reburial of any unclaimed grave under Article 23 (1) of the Funeral Services, etc. Act;

26. Designation as a tourist resort and resort complex pursuant to Article 52 of the Tourism Promotion Act, approval of a formation plan pursuant to Article 54 of the same Act, and permission for the implementation of a formation project pursuant to the provisions of Article 55 of the same Act;

27. Permission for and reporting on construction of a temporary building pursuant to Article 20 of the Building Act;

28. Approval of a business plan pursuant to Article 12 of the Installation and Utilization of Sports Facilities Act; and

29. Permission for aggregate picking pursuant to Article 22 of the Aggregate Picking Act.

(2) The executor who intends to obtain authorization, permission, etc. pursuant to paragraph (1) shall apply for the authorization of an execution plan, along with relevant documents prescribed by relevant Act. <Newly Inserted by Act No. 7695, Nov. 8, 2005>

(3) Where the designator, State or local government intends to approve or prepare the execution plan including matters under any of subparagraphs of paragraph (1), he/it shall first consult with the heads of the administrative agencies concerned. In this case, the head of relevant administrative agency shall submit his opinion within thirty days from the day he has been requested for consultation unless there are unavoidable reasons. <Amended by Act No. 7695, Nov. 8, 2005>

Article 19(Expropriation of Land, etc.) #

(1) The executor of a district development project may expropriate or use such land, etc. as is needed for the execution of the said project: Provided, That in a case where the executor of a district development project is a private developer (limited to the case where the rate of investments by private investors is 50/100 or more in the case of regional development corporation pursuant to the provisions of Article 30), he shall buy not less than two thirds of the land on which his project is to be executed, and shall obtain the consent of not less than a half of the total number of the land owners and building owners, respectively. <Amended by Act No. 7695, Nov. 8, 2005>

(2) In a case where there has been given the public notice of execution plan as prescribed in Article 17 (3), the project approval as prescribed in Article 20 (1) of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor and the public notice of the project approval as prescribed in Article 22 of the same Act, shall be regarded as having been obtained or given. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 6656, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

(3) Any application for an adjudication with respect to land, etc. may be filed within a project period fixed in an execution plan under Article 17, notwithstanding Articles 23 (1) and 28 (1) of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Act No. 6656, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

(4) Except for such cases as are particularly prescribed in this Act, the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor shall apply mutatis mutandis to the expropriation and use as prescribed in paragraph (1). <Amended by Act No. 6656, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

Article 20(Devolvement of Public Facilities and Land, etc.) #

Where the executor installs a new public facility (excluding parking place, sports ground and other facilities prescribed by the Presidential Decree) through the execution of regional development project, or has installed a facility replacing the existing public facility, the provisions of Article 65 of the National Land Planning and Utilization Act shall apply mutatis mutandis to the devolvement thereof.

[This Article Wholly Amended by Act No. 7695, Nov. 8, 2005]

Article 21(Restriction, etc., on Disposal of State and Public Land) #

(1) Such a piece of land located within a development promotion district and possessed by the State or a local government, as is needed for a district development project, shall not be sold out or transferred for any other purposes than those of a district development project.

(2) Notwithstanding the provisions of the State Properties Act, the Local Finance Act and other relevant Acts and subordinate statutes, such properties as located within a development promotion district and possessed by the State or a local government, may be transferred, by means of a private contract, to the executor of a district development project. <Amended by Act No. 7695, Nov. 8, 2005>

Article 22(Transfer, etc., of Prepared Land, etc.) #

(1) In a case where the executor of a district development project is the State or a local government, the executor may transfer, by means of a private contract, the ownership of such facilities or lands as prepared by the district development project to end users, notwithstanding the provisions of the State Properties Act, the Local Finance Act and other relevant Acts and subordinate statutes. In this case, the executor may transfer the ownership of part of such facilities or lands as are to be transferred to end users to the original land owner, under the conditions as prescribed by the Presidential Decree. <Amended by Act No. 7695, Nov. 8, 2005>

(2) Under the conditions as prescribed by the Presidential Decree, the executor of a district development project may receive, from the person who desires to buy or make use of the lands or facilities to be prepared by the said executor of a district development project, all or part of the purchase prices in advance.

Article 23(Installation, etc., of Infrastructures) #

(1) The State and a local government shall render its support, first of all, to the installation of such infrastructures as roads, water supply

facilities, sewerage facilities, etc., for the sake of the efficient execution

of the district development project.

(2) The State and a local government may render such loan of funds, as are necessary for smooth execution of a district development project. <Amended by Act No. 7061, Jan. 16, 2004>

Article 24(House-Moving Countermeasures, etc.) #

(1) The executor of a district development project shall establish and implement house-moving countermeasures for the persons who are to lose the foundation of their livelihood due to the district development project (hereinafter referred to as the "person who ought to move"), under the conditions as prescribed by the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor. <Amended by Act No. 6656, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

(2) The company that has moved into a development promotion district, shall, when it hires its employees, give priority to the residents who live in the development promotion district and in its adjacent area, unless there is any special reason for not doing so.

Article 25(Application Mutatis Mutandis of This Act to Projects Executed in Places Other Than Development Promotion Districts) #

As for such a project related to a district development project as is being executed in an area adjacent to a development promotion district as prescribed by the Presidential Decree, part of the provisions of this Act may apply mutatis mutandis to it, under the conditions as prescribed by the Presidential Decree.

Article 26(Completion Authorization of Development Projects) #

(1) In a case where the executor of a district development project has completed all or part of his district development project, he shall obtain the completion authorization from the designator as prescribed in Article 16 (2) in accordance with the Presidential Decree: Provided, That if the State or the head of a local government is the executor, the consultation with the head of a Si/Gun/Gu shall be made, and such consultation shall be deemed to be the completion authorization. <Amended by Act No. 5799, Feb. 5, 1999>

(2) In a case where the designator has received an application for the completion authorization as prescribed in paragraph (1), he shall carry out such an investigation as is needed for the completion authorization; and if he deems, as a result of the said examination, that the district development project concerned has been completed in accordance with its execution plan as prescribed in Article 17, he shall grant the completion authorization certificate to the executor of the district development project, and shall give a public notice thereof.

(3) In a case where the executor of a district development project has obtained the completion authorization under paragraph (1), he shall be regarded as having gone through, or obtained, the completion inspection or the completion authorization, with respect to such matters as are subject to the legal fiction as prescribed in Article 18.

(4) The executor of a district development project shall not use such facilities or lands as prepared by the district development project, before the completion authorization as prescribed in paragraph (1): Provided, That this shall not apply if there is no obstacle to a district development project. <Amended by Act No. 5799, Feb. 5, 1999>

Article 26-2(Evaluation of Development Plan) #

(1) The Minister of Land, Transport and Maritime Affairs shall evaluate the results of the implementation of every development plan under the conditions as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>

(2) The Minister of Land, Transport and Maritime Affairs may, when it is necessary to make the evaluation required under paragraph (1), request the heads of central administrative agencies concerned and the heads of local governments to submit the relevant materials. In this case, the heads of central administrative agencies concerned and the heads of local governments shall comply with such request unless the special grounds exist that make it impossible for them to do so. <Amended by Act No. 8852, Feb. 29, 2008>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 26-3(Designation and Publication of Specific Region) #

(1) The Minister of Land, Transport and Maritime Affairs may, when he deems it necessary to facilitate the balanced development of any region, develop the region falling under each of the following subparagraphs after designating such region as a specific region at his own discretion or at the request of the heads of central administrative agencies, the Metropolitan City Mayor or the Do governor: <Amended by Act No. 8852, Feb. 29, 2008>

1. Region where the foundation of a new local economy needs to be built following the transfer or decline of major industries and infrastructure or the exhaustion of endowed resources;

2. Region where infrastructure needs to be built, developed in connection with surrounding regions or upgraded to preserve and repair historical and cultural heritages, and to develop tourism resources;

3. Region that needs to be restored or improved permanently from natural and industrial disasters, etc.; and

4. Region that needs to be developed with particular emphasis placed thereon for the special economic and social objectives of the State.

(2) Necessary matters concerning the scale of the specific region, etc. referred to in paragraph (1) shall be prescribed by Presidential Decree.

(3) The Minister of Land, Transport and Maritime Affairs shall, when he intends to designate any specific region, consult with the heads of central administrative agencies concerned and the relevant Metropolitan City Mayor or the relevant Do governor in advance and the same shall apply to a case where he intends to alter any designated specific region: Provided, That the same shall not apply to a case where a location in which a development project is scheduled to be undertaken is changed on the grounds of topography, etc. and insignificant matters prescribed by Presidential Decree are changed. <Amended by Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(4) The Minister of Land, Transport and Maritime Affairs shall, when he designates any specific region or alters any designated specific region in accordance with paragraph (1), publish the matters falling under each of the following subparagraphs in the Official Gazette: <Amended by Act No. 8852, Feb. 29, 2008>

1. The name and boundary of the specific region;

2. The basic goal of development;

3. The period of designation; and

4. Matters prescribed by Presidential Decree, including how to peruse relevant books, etc.

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 26-4(Formulation of Plan for Developing Specific Region) #

(1) With respect to any specific region that has been designated and given a public notice of under Article 26-3 (4), the Minister of Land, Transport and Maritime Affairs shall draw up a plan for developing such specific

region under the conditions as prescribed by the Presidential Decree: Provided, That with respect to any specific region that is designated by the Minister of Land, Transport and Maritime Affairs at the request of the Metropolitan City Mayor or the Do governor, the relevant Metropolitan City Mayor or the relevant Do governor shall draw up a plan for developing such specific region and obtain approval therefor from the Minister of Land, Transport and Maritime Affairs, and in case that any designated specific region extends over not less than two Metropolitan Cities or Dos, the Metropolitan City Mayors concerned and the Do governors concerned shall jointly draw up a plan for developing such specific region. <Amended by Act No. 8852, Feb. 29, 2008>

(2) The Minister of Land, Transport and Maritime Affairs shall, when he draws up a plan for developing any specific region in accordance with paragraph (1) or receives an application for approving a plan for developing any specific region from the Metropolitan City Mayor or the Do governor, finally decide on such plans after consulting with the relevant Metropolitan City Mayor or the relevant Do governor, and the same shall apply to a case where he intends to alter such plans: Provided, That the same shall not apply to a case where a location in which a development project is scheduled to be undertaken is changed on the grounds of topography, etc. and insignificant matters prescribed by Presidential Decree are changed. <Amended by Act No. 6654, Feb. 4, 2002; Act Nos. 8852 & 8870, Feb. 29, 2008>

(3) The Minister of Land, Transport and Maritime Affairs, the Metropolitan City Mayor or the Do governor shall, when he intends to draw up a plan for developing any specific region in accordance with paragraph (1), hear opinions of residents and relevant experts under the conditions as prescribed by Presidential Decree and reflect their opinions, if deemed appropriate, in such plan. <Amended by Act No. 8852, Feb. 29, 2008>

(4) The Minister of Land, Transport and Maritime Affairs shall, when he finally decides on or alters the plan for developing any specific region in accordance with paragraph (2), publish details of such final decision and alteration in the Official Gazette under the conditions as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 26-5(Designation of Project Undertaker) #

(1) Any person who intends to undertake a regional development project in any specific region (hereinafter referred to as "development project in the specific region") shall get himself designated as a project undertaker by the Metropolitan City Mayor or the Do governor: Provided, That the same shall not apply to a case where the State or any local government undertakes such regional development project.

(2) The provisions of Article 16 shall apply mutatis mutandis to the designation of any project undertaker under paragraph (1). In this case, the "development promotion district" and the "regional development project" shall be deemed the "specific district" and the "development project in the specific region" respectively while the "head of Si/Gun/Gu" shall be deemed the "Metropolitan City Mayor or the Do governor" respectively.

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 26-6(Approval of Implementation Schedule) #

(1) Every project undertaker shall make an implementation schedule and obtain approval therefor from the Metropolitan City Mayor or the Do governor, as prescribed by the Presidential Decree, and the same shall apply in cases where he intends to alter the approved implementation schedule: Provided, That in cases where the State or the head of any local government draws up an implementation schedule, it or he shall consult with the Metropolitan City Mayor or the Do governor, and if such consultations are made, such implementation schedule shall be deemed to be approved.

(2) If the Metropolitan City Mayor or the Do Governor intends to grant approval for any implementation schedule in accordance with paragraph (1), he shall first consult with the heads of administrative agencies concerned. The same shall apply in cases where the State or the head of any local government makes an implementation schedule.

(3) If the Metropolitan City Mayor or the Do governor grants approval for any implementation schedule in accordance with paragraph (1), he shall give public notice thereof as prescribed by the Presidential Decree. The same shall apply in cases where the State or the heads of local governments makes an implementation schedule.

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 26-7(Application Mutatis Mutandis to Development Project in Specific Region) #

Articles 9 (3), 11-2, 15, 18 through 26-2 shall apply mutatis mutandis to the development project in a specific region. In this case, "development promotion district" "development plan" and "district development project" shall be construed as "specific region" "plan for developing specific region" and "development project in a specific region" respectively and the "head of a Si/Gun/Gu" in the proviso to Article 26 (1) shall be construed as "Metropolitan City Mayor or Do governor"<Amended by Act No. 7695, Nov. 8, 2005>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 27(Establishment of Plan for Inducement of Private Capital) #

(1)The head of a central administrative agency, the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Do governor and the governor of a Special Self-Governing Province (hereinafter referred to as the "Mayor/Do governor") or the head of a Si/Gun/Gu shall prepare a plan for the inducement of private capital, where the Mayor/Do governor deems it necessary to induce private capital for the sake of the efficient implementation of the following regional development projects: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 9603, Apr. 1, 2009>

1. Multi-districts development projects based on the multi-districts development plan established under Article 5;

2. District development projects based on the development plan established under Article 14;

3. Development projects in a specific region based on the plan for developing specific regions established under Article 26-4;

4. Other regional development projects as prescribed by the Presidential Decree.

(2) A plan for inducement of private capital to be prepared under paragraph (1) shall include any of the following matters:

1. Scope of a privately-invested regional development project, its implementation method and conditions;

2. Qualification of an implementor of a privately-invested regional development project and the criteria for designation as such implementor;

3. Matters concerning various supports for a privately-invested regional development project;

4. Other matters prescribed by the Presidential Decree.

(3) Where a plan for inducement of private capital in accordance with paragraph (1) is made, the head of the central administrative agency concerned shall confirm the plan, following consultation thereon with the heads of the administrative agencies concerned, and the Mayor/Do governor or the head of a Si/Gun/Gu shall, following consultation thereon with the heads of the administrative agencies concerned, confirm the plan through the deliberation by the Local Urban Planning Committee as prescribed by the National Land Planning and Utilization Act: Provided, That consultation with the heads of the administrative agencies concerned may be exempted in cases where the plan for the inducement of private capital is made for a development project to be implemented according to the development plan under Article 5, the development plan under Article 14 and the plan for developing specific regions under Article 26-4. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 6654, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005; Act No. 8870. Feb. 29, 2008>

(4) Where the plan for inducement of private capital has been confirmed pursuant to paragraph (3), the head of a central administrative agency, the Mayor/Do governor, or the head of a Si/Gun/Gu shall give public notice thereof, and hold an explanatory meeting thereon, as prescribed by Presidential Decree. <Amended by Act No. 6641, Jan. 26, 2002>

Article 28(Conclusion of Contracts) #

The heads of central administrative agencies, the Mayor/Do governor or the head of Si/Gun/Gu shall make a contract with the person who intends to take part in a regional development project, over the following subject matters: <Amended by Act No. 6641, Jan. 26, 2002>

1. Matters concerning the execution of the project in question;

2. Matters concerning the alterations of the project plan in question;

3. Matters concerning the follow-up management of such facilities as are to be established through the project in question;

4. Matters concerning the distribution of the proceeds that are to come from the project in question; and

5. Such other matters as prescribed by the Presidential Decree.

Article 29(Execution of Projects) #

As for such matters, concerning the execution of a privately-invested regional development project, as are not provided in this Act, they shall be respectively governed by the conditions as prescribed by each relevant Act.

Article 30(Regional Development Corporation) #

(1) The persons falling under Article 16 (1) 1 through 3 and private investors may make a common investment for the establishment of a corporation of which the purpose is the execution of regional development projects (hereinafter referred to as a "regional development corporation"). <Amended by Act No. 7695, Nov. 8, 2005>

(2) The persons who desire to establish a regional development corporation, shall collectively prepare the articles of corporation that include the following matters: <Amended by Act No. 5799, Feb. 5, 1999>

1. The purpose of the establishment of the corporation;

2. Matters concerning the representative of the corporation;

3. The period, if there is any, for which the corporation is allowed to exist;

4. Matters concerning the investment quota and distribution of earnings; and

5. Such other matters as prescribed by the Presidential Decree.

(3)Where a person under Article 16 (1) 1 through 3 makes investment as prescribed in paragraph (1), he may invest the following property in kind. In such cases, the prices of the property invested in kind shall be calculated, as prescribed by the Presidential Decree: <Amended by Act No. 7695, Nov. 8, 2005; Act No. 9401, Jan. 30, 2009>

1. General property under Article 6 (3) of the State Property Act and Article 5 (4) of the Public Property and Commodity Management Act;

2. Movables attached to miscellaneous property under subparagraph 1, as provided for in Article 2 (1) of the Commodity Management Act and Article 48 of the Public Property and Commodity Management Act;

3. Land created by a regional development project.

(4) The provisions concerning stock corporations of the Commercial Act shall be applicable mutatis mutandis to matters concerning the regional development corporation not provided for in this Act: Provided, That the provisions of the Local Public Enterprises Act shall be applicable mutatis mutandis to such a corporation as established by the joint investment of local public enterprises and private investors. <Amended by Act No. 7695, Nov. 8, 2005>

Article 31(Support for Privately-Invested Regional Development Projects) #

(1) The heads of central administrative agencies, the Mayor/Do governor or the head of a Si/Gun/Gu may take the following supportive measures for a private developer who is executing a privately-invested regional development project, following consultation with the heads of the administrative agencies concerned, in accordance with the plan for inducement of private capital as prescribed in Article 27: <Amended by Act No. 6641, Jan. 26, 2002>

1. Permission for occupation and use of public facilities;

2. Vicarious execution of clerical works on purchase of land or facilities necessary for the project in question;

3. Granting the right to develop neighboring land up to the proper level of benefits for the private developer in question;

4. Other matters prescribed by Presidential Decree.

(2) In cases where a person is entitled to grant permission for occupation and use of public facilities as prescribed in paragraph (1) 1, the heads of central administrative agencies, the Mayor/Do governor or the head of a Si/Gun/Gu may request him to grant such permission, and the person thus requested shall comply with the request unless any special ground exists to the contrary. <Amended by Act No. 6641, Jan. 26, 2002>

Article 32(Granting Management Right of Public Facilities) #

(1) As for the public facilities and their attached facilities which are established by the execution of a privately-invested regional development project (hereinafter referred to as the "public facilities"),the heads of central administrative agencies, the Mayor/Do governor or the head of Si/Gun/Gu may grant their management right to the private developer concerned. <Amended by Act No. 6641, Jan. 26, 2002>

(2) The private developer who is in charge of the management of the public facilities as prescribed in paragraph (1), may collect, from those who use or utilize the public facilities, a certain amount of money for using the said public facilities (hereinafter referred to as the "user fee"), for a certain period.

(3) The user fee as provided in paragraph (2), the period for collecting it, the conditions for the collection, and other necessary matters, shall be determined through the consultation between the private developer concerned and the head of a central administrative agency, the Mayor/Do governor or the head of Si/Gun/Gu. <Amended by Act No. 6641, Jan. 26, 2002>

Article 33(Limitation on Prohibition of Use of Public Facilities) #

(1) A private developer who is in charge of the management of the public facilities in accordance with the provisions of Article 32, shall not prohibit the general public from using or utilizing the public facilities, unless there are some special reasons such as a natural disaster or similar calamities.

(2) In a case where a private developer, who is in charge of the management of the public facilities, has not observed what has been agreed upon through the consultation as prescribed in Article 32 (3), or has violated the provisions of paragraph (1), the heads of central administrative agencies, the Mayor/Do governor or the head of Si/Gun/Gu shall, without any delay, order the private developer to correct the situation in question. <Amended by Act No. 6641, Jan. 26, 2002>

(3) In a case where a private developer would not comply with the corrective order as prescribed in paragraph (2), the heads of central administrative agencies, the Mayor/Do governor or the head of Si/Gun/Gu may revoke the management right of the private developer. <Amended by Act No. 5453, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002>

Article 34 #

Deleted.<by Act No. 7695, Nov. 8, 2005>

Article 35 #

Deleted.<by Act No. 7695, Nov. 8, 2005>

Article 36 #

Deleted.<by Act No. 7695, Nov. 8, 2005>

Article 37 #

Deleted.<by Act No. 7695, Nov. 8, 2005>

Article 38 #

Deleted.<by Act No. 7695, Nov. 8, 2005>

Article 38-2(Designation of Regional Comprehensive Development District) #

(1) Where the Minister of Construction and Transportation recognizes that the comprehensive development of a region is necessary in order to construct a regional reform base, such as the invitation, of public institutions and to lead specialized development, he may designate a region falling under any of the following subparagraphs as a regional comprehensive development district in person or at the request of the Mayor/Do governor: <Amended by Act No. 8852, Feb. 29, 2008>

1. The region where the execution of a regional development project is intended in connection with the policy of transfer to provinces of the public institutions (hereinafter referred to as the "public institutions") pursuant to the provisions of Article 18 of the Special Act on Balanced National Development and the enterprises and universities and colleges pursuant to the provisions of Article 19 of the same Act; or

2. The region where it is necessary to execute simultaneously or gradually by mutually connecting the project for the creation of industrial, distribution, educational, research, cultural, tourism, residential, business complexes, etc. and the project for the installation of infrastructures.

(2) A person, from among the head of Si/Gun/Gu, or persons falling under Article 38-4 (1) 2 through 5, who intends to participate in the development project being executed within the regional comprehensive development district (hereinafter referred to as the "regional comprehensive development project") may propose the designation of regional comprehensive development district to the Minister of Land, Transport and Maritime Affairs as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>

(3) Where the Minister of Land, Transport and Maritime Affairs intends to designate a regional comprehensive development district pursuant to the provisions of paragraph (1), he shall hear the opinions of the competent Mayor/Do governor (excluding the case where it is designated at the request of the Mayor/Do governor) and the head of Si/Gun/Gu in advance, and consult with the head of the relevant central administrative agency. <Amended by Act Nos. 8852 & 8870, Feb. 29, 2008>

(4) Where the Minister of Land, Transport and Maritime Affairs intends to designate a regional comprehensive development district, he shall hear the opinions of the residents and relevant specialists, etc. as prescribed by Presidential Decree: Provided, That to the matters that require secrecy for national defense purposes, this shall not apply. <Amended by Act No. 8852, Feb. 29, 2008>

(5) When the Minister of Land, Transport and Maritime Affairs has designated a regional comprehensive development district pursuant to the provisions of paragraph (1), he shall notify publicly the matters in the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008>

1. The name and location of the regional comprehensive development district and the area of designation;

2. The purpose and period of designation of the regional comprehensive development district;

3. The outline and execution method of the regional comprehensive development project; and

4. Other matters prescribed by the Presidential Decree.

(6) The provisions of paragraphs (3) through (5) shall apply mutatis mutandis to the alteration of designation of regional comprehensive development district: Provided, That for the alteration of insignificant matters prescribed by the Presidential Decree, this shall not apply.

(7) The provisions of Articles 11-2 and 15 shall apply mutatis mutandis to the regional comprehensive development district. In this case, the term "development promotion district" and "development project" in Article 11-2 shall be deemed as "regional comprehensive development district" and "regional comprehensive development project" and the term "public notification of development plan" and the "region subject to development project" in Article 15 shall be deemed as "public notification of regional comprehensive development district" and "regional comprehensive development district"

(8) The Minister of Land, Transport and Maritime Affairs may cancel the designation of regional comprehensive development district where it falls under any of the following subparagraphs after the designation: <Amended by Act No. 8852, Feb. 29, 2008>

1. Where an approval of development plan for regional comprehensive development district pursuant to the provisions of Article 38-3 has not been applied for all or part of the regional comprehensive development district within three years from the date of public notification of the designation of the regional comprehensive development district pursuant to the provisions of paragraph (5); or

2. Where an approval of execution plan pursuant to the provisions of Article 38-5 has not been applied for all or part of the regional comprehensive development district within three years from the public notification of the approval of development plan for the regional comprehensive development district pursuant to the provisions of Article 38-3.

(9) The detailed standards for designation and procedures for cancellation of regional comprehensive development district, and other necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-3(Formulation of Development Plan for Regional Comprehensive Development District) #

(1) Where a regional comprehensive development district has been designated and notified publicly, the head of Si/Gun/Gu (refers to the Mayor/Do governor where the regional comprehensive development district has been designated extending over two or more Sis/Guns/Gus) who has jurisdiction over the regional comprehensive development district shall formulate a development plan for the regional comprehensive development district (hereinafter referred to as the "regional comprehensive development plan") as prescribed by Presidential Decree and obtain approval from the Minister of Land, Transport and Maritime Affairs: Provided, That the Minister of Land, Transport and Maritime Affairs recognizes it necessary, the Minister of Land, Transport and Maritime Affairs may formulate a regional comprehensive development plan in person or designate a person and have him formulate it as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>

(2) The regional comprehensive development plan pursuant to the provisions of paragraph (1) shall include the matters in the following subparagraphs: Provided, That it is unavoidable in the course of formulation of regional comprehensive development plan, the matters as referred to in subparagraph 6 may be determined and included in the regional comprehensive development plan after the approval or formulation of regional comprehensive development plan:

1. The name, location and area of the regional comprehensive development district;

2. The outline, purpose of the regional development project and the contents of connection;

3. The executor, execution method and execution time of the regional comprehensive development project;

4. The outline of the land utilization plan and the plan for the installation of infrastructure;

5. The plan for raising fund;

6. The details of land, etc. that shall be expropriated or utilized; and

7. Other matters prescribed by Presidential Decree.

(3) When the Minister of Land, Transport and Maritime Affairs intends to approve or formulate in person a regional comprehensive development plan, he shall hear the opinions of the relevant Mayor/Do governor and the head of Si/Gun/Gu in advance and consult with the relevant central administrative agency. <Amended by Act Nos. 8852 & 8870, Feb. 29, 2008>

(4) When the Minister of Land, Transport and Maritime Affairs approves or formulates a regional comprehensive development plan or includes the matters in of paragraph (2) 6 after approving the regional comprehensive development plan pursuant to the provisions of the proviso to paragraph (2), he shall notify it in public and deliver the details to the head of the relevant Si/Gun/Gu and allow the residents to read them. <Amended by Act No. 8852, Feb. 29, 2008>

(5) The provisions of paragraphs (1), (3) and (4) shall apply mutatis mutandis to a case where modification to the regional comprehensive development plan is intended: Provided, That to modifications to trivial matters prescribed by Presidential Decree, this shall not apply.

(6) When a regional comprehensive development plan has been approved and notified publicly pursuant to the provisions of paragraph (4), it shall be deemed that there have been designation, approval and public notification as referred to in the following subparagraphs: <Amended by Act No. 8337, Apr. 6, 2007; Act No. 8343, Apr. 11, 2007>

1. The formulation of a basic urban planning and approval of modification thereto pursuant to the provisions of Articles 18 and 22 of the National Land Planning and Utilization Act;

2. The designation of an urban development zone pursuant to the provisions of Article 3 of the Urban Development Act and the formulation of an urban development project plan pursuant to the provisions of Article 4 of the same Act;

3. The designation of a prearranged area pursuant to the provisions of Article 3 of the Housing Site Development Promotion Act, and the approval of a housing site development plan pursuant to the provisions of Article 8 of the same Act;

4. The designation of a national industrial complex, general industrial complex and up-to-date city industrial complex pursuant to the provisions of Articles 6 through 7-2 of the Industrial Sites and Development Act;

5. The designation of a tourist resort and resort complex pursuant to the provisions of Article 52 of the Tourism Promotion Act; and

6. The designation of a distribution complex pursuant to the provisions of Article 5 of the Promotion of Distribution Complex Development Act.

(7) Detailed matters regarding the formulation, etc. of a regional comprehensive development plan shall be prescribed by the Presidential Decree.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-4(Executor of Regional Comprehensive Development Project) #

(1) A person falling under any of the following subparagraphs may execute the regional comprehensive development plan:

1. The State or local government;

2. A government-invested institution prescribed by the Presidential Decree;

3. A local public enterprise;

4. A regional development corporation; and

5. A person prescribed by the Presidential Decree from among the public institutions or private developers, etc.

(2) Regarding the regional comprehensive development project (excluding the cases where the State or local government executes directly), the head of the competent Si/Gun/Gu (referring to the Mayor/Do governor where the regional comprehensive development district has been designated extending over two or more Sis/Guns/Gus) shall designate an executor under the conditions as prescribed by the Presidential Decree. In this case, where it is recognized as necessary for raising fund required for the regional comprehensive development project or the connection, etc. of two or more separate projects, multiple executors of two or more may be designated.

(3) Where the Mayor/Do governor or the head of Si/Gun/Gu intends to designate an executor pursuant to the provisions of paragraph (2), he shall designate one in accordance with the standards in the subparagraphs of Article 16 (2).

(4) The provisions of Article 16 (3) shall apply mutatis mutandis to the designation of an executor of regional comprehensive development project.

In this case, the "district development project" shall be deemed as the "regional comprehensive development project"

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-5(Approval of Execution Plan) #

(1) The executor shall formulate an execution plan as prescribed by Presidential Decree and obtain approval from the Mayor/Do governor (refers to the Minister of Land, Transport and Maritime Affairs where the Minister of Land, Transport and Maritime Affairs has formulated the regional comprehensive development plan in person or has designated a person to formulate it in accordance with the proviso of Article 38-3 (1); the same applies hereafter in this Article): Provided, That the State or the head of local government formulates an execution plan directly, it or he shall go through the consultation with the head of Si/Gun/Gu, which shall be deemed as the approval of the execution plan. <Amended by Act No. 8852, Feb. 29, 2008>

(2) Where the Mayor/Do governor has approved the execution plan referred to in paragraph (1), he shall notify publicly the contents thereof as prescribed by Presidential Decree. The same shall apply where the State or the head of local government has formulated the execution plan directly.

(3) The provisions of Article 18 shall apply mutatis mutandis to the approval and public notification of execution plan of regional comprehensive development project.

(4) The provisions of paragraphs (1) through (3) shall apply mutatis mutandis to the modification to execution plan: Provided, That to modifications to trivial matters prescribed by Presidential Decree, this shall not apply.

(5) Where there is a need for land substitution regarding the execution of a regional comprehensive development project, the executor may apply mutatis mutandis the provisions regarding land substitution in the Urban Development Act .

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-6(Special Examples regarding Execution of Regional Comprehensive Development Project) #

(1) Where necessary for the efficient execution of regional comprehensive development project, the executor may execute all or part of the regional comprehensive development project, which has been included in the regional comprehensive development plan formulated pursuant to the provisions of Article 38-3, as prescribed by each Act as referred to in the

provisions of paragraph (6) 2 through 6 of the same Article notwithstanding the provisions of this Act.

(2) The regional comprehensive development project may be executed step-by-step in accordance with the scale and contents of each development project.

(3) Where several regional development projects are included in the regional comprehensive development plan, the executor may reinvest part of the profits from the development gained from a specific regional development project in another regional development project within the regional comprehensive development district as prescribed by the Presidential Decree.

(4) In order to have the reinvestment pursuant to the provisions of paragraph (3) executed without fail, the executor shall take necessary measures, such as managing the accounts by classifying the profits gained from development.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-7(Regional Comprehensive Development Agreement) #

(1) In order to efficiently promote the regional comprehensive development project, the Mayor/Do governor or the head of Si/Gun/Gu may conclude an agreement on the execution of regional comprehensive development project (hereinafter referred to as the "regional comprehensive development agreement") with the executor as prescribed by the Presidential Decree and execute it.

(2) Where the Mayor/Do governor or the head of Si/Gun/Gu recognizes it necessary for the efficient execution of the regional comprehensive development plan, he may take partial charge of or execute jointly the development project in accordance with the regional comprehensive development agreement, or establish a regional development corporation.

(3) The contents of regional comprehensive development agreement and other necessary matters shall be prescribed by the Presidential Decree.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-8(Assistance to Regional Comprehensive Development Project Inducing Public Institutions) #

(1) The head of central administrative agency, Mayor/Do governor or head of Si/Gun/Gu may formulate the measures for financial, administrative assistance to the regional comprehensive development project (hereinafter referred to as the "public institutions inducing project") that transfers public institutions to the provinces.

(2) The State or local government may assist in the construction expenses, etc. of infrastructure and public facilities when necessary for the assistance to the public institutions inducing project.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-9(Assistance, etc. with Disposal of Former Real Estate of Public Institutions) #

(1) In order to facilitate the transfer of public institutions to the provinces, the State or local government may assist in the business of disposal, etc. of the former land and buildings (hereinafter referred to as the "former real estate") of the public institutions that transfer to the regional comprehensive development district.

(2) The Minister of Land, Transport and Maritime Affairs may request the government-invested institutions prescribed by Presidential Decree to execute vicariously the sale of former real estate or to purchase it directly. <Amended by Act No. 8852, Feb. 29, 2008>

(3) Where the government-invested institutions pursuant to the provisions of paragraph (2) have suffered a loss from the purchase of former real estate, the State or local government may take necessary measures, such as the formulation, etc. of assistance measures to compensate therefor.

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 38-10(Application Mutatis Mutandis to Regional Comprehensive Development Project) #

The provisions of Articles 19 through 26 shall apply mutatis mutandis to the regional comprehensive development project. In this case, the "development promotion district" and "district development project" shall be deemed as the "regional comprehensive development district" and "regional comprehensive development project" respectively, and the "execution plan" in Article 19 (2) and (3) shall be deemed as the "regional comprehensive development plan"

[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]

Article 39(Basic Guidelines) #

(1) Based on the government policies, for the upcoming year, concerning small and medium enterprises, which the government submitted to the National Assembly in accordance with the provisions of Article 20 of the Framework Act on Small and Medium Enterprises, the Administrator of the Small and Medium Business Administration shall prepare the basic guidelines for rendering support, in the upcoming year, for local small and medium enterprises (hereinafter referred to as the "basic guidelines"). <Amended by Act No. 5454, Dec. 13, 1997; Act No. 7695, Nov. 8, 2005>

(2) The Administrator of the Small and Medium Business Administration shall instruct the basic guidelines prepared under paragraph (1) to the Mayor/Do governor, no later than October 31 every year. <Amended by Act No. 5454, Dec. 13, 1997>

Article 40(Establishment of Support Plan) #

(1) The Mayor/Do governor who intends to support the small and medium enterprises, located in his jurisdictional area, in accordance with the basic guidelines as prescribed in Article 39, shall prepare a support plan, for the upcoming year, for the small and medium enterprises located within his jurisdictional area (hereinafter referred to as the "support plan"), and shall submit it first to the Minister of Public Adminstration and Security and then to the Administrator of the Small and Medium Business Administration, no later than December 31 every year. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6641, Jan. 26, 2002; Act No. 8852, Feb. 29, 2008>

(2) The support plan as prepared by the Mayor/Do governor shall include the following subject matters, under the conditions as prescribed by Presidential Decree: <Amended by Act No. 5454, Dec. 13, 1997>

1. Matters concerning the collectivization of small and medium enterprises by regions or business types, through the changing of the locationsof the said enterprises or the new establishment of factories; or matters concerning the smooth supply of industrial sites;

2. Matters concerning the demand and supply of technologies and technical manpower;

3. Matters concerning the formation of such conditions as are necessary for the active investment in the facilities of local small and medium enterprises and for the stabilized management thereof;

4. Matters concerning the promotion of efficiency of local small and medium manufacturing enterprises;

5. Matters concerning the sales of such products and services as manufactured or produced by local small and medium enterprises;

6. Matters concerning the procurement and use of such local financial funds as are for the execution of the support plan;

7. Such matters, related to the provisions of subparagraphs 1 through 5, as are requested by the Administrator of the Small and Medium Business Administration by Cities/Dos;

8. Such other matters as prescribed by the Presidential Decree.

Article 41(Investigation into Current Conditions) #

(1) Prior to the establishment of the support plan, the Mayor/Do governor shall, each year, identify current conditions of small and medium enterprises located within his jurisdiction, in terms of the number of enterprises and their employees, etc., by business type and enterprise scale, and identify current conditions of their operation or production, in cooperation with the relevant agencies.

(2) The Mayor/Do governor may request the head of any specialized local administrative agency dealing with matters related to business activities, such as the Regional Tax Office, the Regional Employment and Labor Administration Office or the Regional Environmental Office, or the head of the relevant agency or association to submit necessary materials or to allow the perusal of the necessary materials to identify current conditions of the small and medium enterprises located under his jurisdiction and the current conditions of their operation or production as prescribed in paragraph (1). The head of the specialized local administrative agency or the head of the relevant agency or association, in receipt of the request, shall comply therewith unless any special ground exists to the contrary. <Amended by Act No. 10339, Jun. 4, 2010>

(3) No Mayor/Do governor shall use the materials acquired under paragraph (2) for any other purpose than that of the establishment of the support plan as prescribed in Article 40.

Article 42(Adjustment of Support Plans) #

(1) Where the Administrator of the Small and Medium Business Administration has found out that the said support plans are in discord with the government policies for the support of small and medium enterprises, or the City/Do support plans overlap, or conflict, with one another as a result of his examination of the support plans submitted by the Mayor/Do governor, the said Administrator may request the Mayor/Do governor to adjust the support plans. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

(2) The Mayor/Do governor who has been requested for the adjustment of the support plans under paragraph (1), shall comply with the request of the Administrator of the Small and Medium Business Administration, unless any specific ground exist to the contrary. <Amended by Act No. 5454, Dec. 13, 1997>

Article 43(Promotion of Support Plans) #

Where the head of a local government deems it necessary for the efficient promotion of a support plan, he may take any of the following measures: <Amended by Act No. 7695, Nov. 8, 2005; Act No. 10219, Mar. 31, 2010>

1. Establishment of funds related to the support for local small and medium enterprises as prescribed in the Local Autonomy Act, or utilization of the funds;

2. Issuance of municipal bonds and deferment of the collection of local taxes, as prescribed by the Local Finance Act, and the Framework Act on Local Taxes.

Article 44(Support for Support Plans) #

(1) The Government may render administrative assistances in order for the Mayor/Do governor to carry forward his/her support plan without any failure, and the Administrator of the Small and Medium Business Administration may make contributions, as prescribed by Presidential Decree, to help the raising of the funds as prescribed in subparagraph 1 of Article 43. <Amended by Act No. 5454, Dec. 13, 1997>

(2) The Mayor/Do governor shall use the contributions made by the Administrator of the Small and Medium Business Administration under paragraph (1), only for the sake of the execution of his support plan. <Amended by Act No. 5454, Dec. 13, 1997>

(3) Where the Administrator of the Small and Medium Business Administration deems it necessary for the efficient execution of the support plan, or where the Mayor/Do Governor makes a request, the said Administrator may take necessary measures, or may request the heads of the central administrative agencies concerned to take necessary measures. <Amended by Act No. 5454, Dec. 13, 1997>

Article 45(Analysis of Outcome of Execution of Support Plan) #

(1) Every year, the Mayor/Do governor shall analyze the outcome of implementation of his support plan, and shall submit the results of the analysis to the Administrator of the Small and Medium Business Administration, no later than the last day of February of the upcoming year. <Amended by Act No. 5454, Dec. 13, 1997>

(2) The Administrator of the Small and Medium Business Administration shall reflect the results of the analysis of the outcome of the support plan submitted by the Mayor/Do governor under paragraph (1), on the basic guidelines. <Amended by Act No. 5454, Dec. 13, 1997>

Article 46(Support for Establishment of Factories) #

(1) In order to render support that might help small and medium enterprises located in each area to establish factories without difficulties, the Administrator of the Small and Medium Business Administration may require the Small and Medium Business Corporation prescribed in the Small and Medium Enterprises Promotion Act (hereinafter referred to as "Small and Medium Business Corporation") to implement any of the following projects: <Amended by Act No. 4825, Dec. 22, 1994; Act No. 5454, Dec. 13, 1997; Act No. 7695, Nov. 8, 2005; Act No. 9685, May 21, 2009>

1. Establishment or acquisition of factories, or transfer or long-term lease of factories in possession to local small and medium enterprise owners;

2. Establishment of factories on behalf of local small and medium enterprise owners who desire to establish factories;

3. Collection or supply of information related to relocation of local small and medium enterprises, and counseling thereof;

4. Connection between local small and medium enterprise owners who desire to relocate their companies to another place, with local governments wishing to attract local small and medium enterprises into their jurisdictional spheres;

5. Other projects prescribed by Presidential Decree.

(2) Where the Small and Medium Business Corporation transfers the ownership of its factory under paragraph (1), it may receive the price for the transfer of the ownership of the factory on a long-term installment plan for up to a period prescribed by Presidential Decree.

(3) In cases where the Small and Medium Business Corporation carries out projects in accordance with paragraph (1), it shall endeavor to lower the costs incurred in the establishment of factories of local small and medium enterprises through, for instance, developing a standard type of factory for different business types, for different business scales and for different regions.

Article 47(Local Joint Technical Development) #

(1) Local small and medium enterprises and the organization falling under any of the following subparagraphs may jointly or cooperatively carry out activities for technical development (hereinafter referred to as the "activities for local joint technical development"): <Amended by Act No. 5454, Dec. 13, 1997; Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

1. Local governments;

2. National and public research institutions;

3. Such universities, colleges or junior colleges as prescribed in the Higher Education Act;

4. Such specific research institutions as prescribed in the Support for Specific Research Institutions Act; and

5. Such other organizations as prescribed by Ordinance of the Ministry of Knowledge Economy.

(2) In order to render support for the activities for local joint technical development, the Administrator of the Small and Medium Business Administration may establish the local joint technical development support center in a national or public research institution of such a field of industries as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>

(3) The local joint technical development support center shall fulfill the following functions:

1. Cooperation with the local government concerned in order to facilitate the activities for local joint technical development;

2. Investigation into, and analysis of, such technical difficulties as are experienced on the manufacturing sites of local small and medium enterprises;

3. Investigation into, and analysis of, the capabilities of the organizations as prescribed in the subparagraphs of paragraph (1), of support for the activities for local joint technical development;

4. The work of linking the local small and medium enterprises which desire to carry out the activities for local joint technical development with the organizations as prescribed in subparagraphs of paragraph (1);

5. Analysis of the activities for local joint technical development being carried out by local small and medium enterprises.

(4) The Administrator of the Small and Medium Business Administration may designate an institution, among institutions prescribed in any subparagraph of paragraph (1), which is active in developing technologies through activities for local joint technical development, as an exemplary institution of local joint technical development (hereinafter referred to as "exemplary institution"), and may support all or part of expenses incurred for the relevant exemplary institution for local joint technical development activities. <Amended by Act No. 5454, Dec. 13, 1997>

Article 48(Development and Local Settlement of Human Resources) #

(1) Where the Small and Medium Business Corporation, or the Korea Industrial Complex Corporation under the Industrial Cluster Development and Factory Establishment Act intends to carry out a vocational training program for employees of local small and medium enterprises or persons who desire to work for local small and medium enterprises, the State or the local government may render the following support: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6842, Dec. 30, 2002; Act No. 7695, Nov. 8, 2005; Act No. 10252, Apr. 12, 2010>

1. Onerous transfer of the ownership of, or long-term lease of, national or public land required for the establishment of training facilities;

2. Any other matters prescribed by Presidential Decree.

(2) As for the transfer or lease of national or public land to the Small and Medium Business Corporation or the Korea Industrial Complex Corporation, as prescribed in paragraph (1) 1, the State or the local government may do so by means of a private contract, notwithstanding the provisions of the State Property Act, the Local Finance Act or other relevant Acts and subordinate statutes. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 7695, Nov. 8, 2005; Act No. 10252, Apr. 12, 2010>

(3) In order to help the employees of local small and medium enterprises to comfortably settle down, the Government may render a long-term housing loan with a low interest rate to a local small and medium enterprise employee who meets the conditions prescribed by the Presidential Decree and intends to settle down in the area where the said local small and medium enterprise is located.

(4) The Government may designate any local small and medium enterprise which meets the conditions prescribed by the Presidential Decree and intends to continuously develop technologies through joint local technical development activities in collaboration with the exemplary institution as prescribed in Article 47, as a designated company under Article 36 of the Military Service Act. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005>

(5) As for the person who desires to work for the local small and medium enterprise that is selected as a designated company in accordance with the provisions of paragraph (4), continuously carry out research activities, in collaboration with the exemplary institution, for the development of such technologies as the said small and medium enterprise requires, the Government may appoint him as an expert research fellow under the Military Service Act in accordance with Article 37 of the same Act. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005>

Article 49(Administrative Support for Local Small and Medium Enterprises) #

For the sake of rendering effective support for local small and medium enterprises where the enterprises are located, the Administrator of the Small and Medium Business Administration may help the local branches of such an agency as carries out the activities of supporting small and medium enterprises and is prescribed by the Presidential Decree, to be established in a certain place of each different region. <Amended by Act No. 5454, Dec. 13, 1997>

Article 50(Designation of Areas for Special Support for Local Small and Medium Enterprises) #

(1) In a case where the current condition of the industrial cluster within a City/Do, and the consequent turnout of the industries are substantially falling short of what is determined in the basic plan for industrial cluster development as prescribed in Article 3 of the Industrial Cluster Development and Factory Establishment Act, the Administrator of the Small and Medium Business Administration may designate the said industrial complex as an area for special support for local small and medium enterprises. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 6842, Dec. 30, 2002; Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

(2) In a case where the Administrator of the Small and Medium Business Administration has designated an area for special support for local small and medium enterprises under paragraph (1), he shall give a public notice thereof, and the period of the designation shall be five years from the date on which the public notice is given. <Amended by Act No. 5454, Dec. 13, 1997>

(3) In a case where the Administrator of the Small and Medium Business Administration or the Mayor/Do governor establishes and carries out the support plan, and pushes forward, for each different region, such measures as are for creating good business environment for small and medium enterprises, he shall take into consideration, first of all, the development of such local small and medium enterprises as located within the area for special support for local small and medium enterprises. <Amended by Act No. 5454, Dec. 13, 1997>

Article 51(Basic Survey, Entry into Land, etc.) #

(1) The State, a local government or the executor of a regional development project may conduct such basic surveys as are needed for the establishment and execution of a regional development plan, under the conditions as prescribed by the Presidential Decree.

(2) In a case where it is necessary for conducting the basic surveys as prescribed in paragraph (1), the person concerned may enter the land occupied by a third party, or may temporarily use the land of a third party as a temporary road, or may alter or remove bamboos, trees, earth and stones, and other obstacles, that exist in the land of a third party.

(3) Any person who intends to gain access to the land of a third person under paragraph (2) shall obtain permission therefor from the head of Si/Gun/Gu (excluding a case where the State or the head of a local government is an executor) and notify the owner, occupant or manager of such land of the date and place of his entering the land by 3 days before the date on which he intends to enter the land. <Amended by Act No. 6641, Jan. 26, 2002>

(4) Any person who intends to use the land of a third person for a short time as a material storage place or as a temporary road or to alter or remove bamboos, trees, earth and stones and other obstacles shall obtain the consent thereof from the owner, occupant or manager of the relevant land. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(5) In the case of paragraph (4), when it is impossible to obtain the consent of the owner, occupant or manager of the land or obstacles on the grounds that he is not existent on the spot or his domicile or residence is unknown, such consent shall be obtained from the head of Si/Gun/Gu having jurisdiction over such land: Provided, That in the event that the State or the head of a local government is an executor, the head of Si/Gun/Gu having jurisdiction over the land shall be notified of the fact. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(6) Any person who intends to use temporarily the land, or alter or remove obstacles under paragraph (4) or (5) shall notify the owner, occupant or manager of the relevant land of the fact by 3 days before the date on which he intends to use the land, or alter or remove obstacles. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(7) No person shall enter the land of another person, which is surrounded by fence and hedge before sunrise and after sunset without consent of the occupant of the relevant land. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(8) The occupant of the land shall not interfere with or reject any act performed by the another provided for in paragraph (2) without any justifiable reasons. <Newly Inserted by Act No. 6641, Jan. 26, 2002>

(9) Any person who intends to perform the act provided for in paragraph (2) shall carry a certificate indicating his authority and a permit and show them to the relevant persons, and necessary matters concerning the certificate and the permit shall be prescribed by the Minister of Land, Transport and Maritime Affairs. <Newly Inserted by Act No. 6641, Jan. 26, 2002; Amended by Act No. 8852, Feb. 29, 2008>

Article 51-2(Compensation for Loss) #

(1) If any person suffers a loss incurred by the act provided for in Article 51 (2), the executor shall compensate him for such loss.

(2) With respect to the compensation for loss referred to in paragraph (1), the person liable to compensate for such loss and the person who suffers such loss shall consult thereabout.

(3) In the event that the person liable to compensate for the loss and the person who suffers such loss fail to reach an agreement as a result of the consultations referred to in paragraph (2) or are unable to consult thereabout, they may file an application for an adjudication with the competent Land Tribunal.

(4) The provisions of Articles 83 through 87 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor shall apply mutatis mutandis to any adjudication handed out by the competent Land Tribunal under paragraph (3). <Amended by Act No. 6656, Feb. 4, 2002; Act No. 7695, Nov. 8, 2005>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]

Article 52(Report and Inspection) #

(1) Where it is recognized as necessary for the efficient execution, such as the evaluation of regional development project, the head of the central administrative agency concerned, the Mayor/Do governor or the head of Si/Gun/Gu may order the executor of the regional development project in accordance with the procedures prescribed by the Presidential Decree to make a report on the records of project, details of project-cost injection, future plan, etc. or to submit materials, or may have a public official under his jurisdiction inspect the business affairs concerning the regional development project. <Amended by Act No. 5799, Feb. 5, 1999; Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005>

(2) The public official who intends to inspect the business affairs concerning a regional development project under paragraph (1) shall notify beforehand the inspection plan, carry with himself a voucher indicating his authority, and show it to the persons concerned. <Amended by Act No. 7695, Nov. 8, 2005>

Article 53(Supervision) #

(1) Where the executor of a regional development project falls under any of the following subparagraphs, the Minister of Land, Transport and Maritime Affairs, the Mayor/Do governor or the head of a Si/Gun/Gu may cancel, or suspend the legal efficacy of, such an authorization, approval or designation as prescribed in this Act, or suspend the construction work concerned, or take other necessary measures: <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5799, Feb. 5, 1999; Act No. 7695, Nov. 8, 2005; Act No. 8852, Feb. 29, 2008>

1. Where the said executor has obtained such an authorization, approval or designation as prescribed in this Act, by means of a fraud or other unlawful methods;

2. Where it is found out that the regional development project concerned is impossible to be continuously executed on account of a change in circumstances;

3. Where the said executor has violated an order pursuant to the provisions of Article 33 (2); or

4. Where the said executor has obstructed or refused the acts pursuant to the provisions of Article 52 (1) without justifiable reasons.

(2) Deleted. <by Act No. 5453, Dec. 13, 1997>

(3) In a case where the Minister of Land, Transport and Maritime Affairs, the Mayor/Do governor or the head of a Si/Gun/Gu has taken such a measure or disposition as prescribed in paragraph (1), he shall give a public notice thereof under the conditions as prescribed by Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 5799, Feb. 5, 1999; Act No. 8852, Feb. 29, 2008>

Article 53-2(Hearing) #

Where the head of the central administrative agency, the Mayor/Do governor or the head of a Si/Gun/Gu intends to make a disposition falling under any of the following subparagraphs, he shall hold a hearing: <Amended by Act No. 5799, Feb. 5, 1999>

1. Revocation of the management right of the private developer referred to in Article 33 (3); and

2. Revocation of authorization, approval or designation referred to in this Act, under Article 53 (1).

[This Article Newly Inserted by Act No. 5453, Dec. 13, 1997]

Article 54(Reduction and Exemption of Taxes) #

In order to efficiently execute the district development project and to promote local small and medium enterprises by, for instance, attracting local small and medium enterprises into such an area for special support for local small and medium enterprises as prescribed in Article 50, the State or a local government may reduce or exempt taxes, as prescribed by the Restriction of Special Taxation Act, the Restriction of Special Local Taxation Act and the Municipal Ordinances concerning the collection of local taxes, etc. <Amended by Act No. 6641, Jan. 26, 2002; Act No. 7695, Nov. 8, 2005; Act No. 10220, Mar. 31, 2010>

Article 55 #

Deleted.<by Act No. 8870, Feb. 29, 2008>

Article 56(Delegation and Entrustment of Authority) #

Authority of the Administrator of the Small and Medium Business Administration, the Minister of Land, Transport and Maritime Affairs and the Mayor/Do governor as prescribed in this Act, may be delegated to the Mayor/Do governor, the head of a Si/Gun/Gu, or may be entrusted, as prescribed by Presidential Decree, to the heads of agencies or associations related to local small and medium enterprises, such as the President of the Small and Medium Business Corporation. <Amended by Act No. 5454, Dec. 13, 1997; Act No. 8852, Feb. 29, 2008>

Article 57 #

Deleted.<by Act No. 5799, Feb. 5, 1999>

Article 58(Penal Provisions) #

Any person who has performed any act under each subparagraph of Article 15 (1) (including cases where the provisions are applied mutatis mutandis in Articles 26-7 and 38-2 (7)) without obtaining permission therefor shall be punished by imprisonment for not more than two years or by a fine not exceeding 20 million won. <Amended by Act No. 7695, Nov. 8, 2005>

[This Article Wholly Amended by Act No. 6641, Jan. 26, 2002]

Article 59(Joint Penal Provisions) #

Where a representative of a corporation, or an agent, employee or other servant of a corporation or individual commits a violation under Article 58 in connection with the business of the corporation or individual, not only shall such violator be punished, but the corporation or individual shall also be punished by a fine under the relevant provisions: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such violation.

[This Article Wholly Amended by Act No. 9603, Apr. 1, 2009]

Article 60(Fines for Negligence) #

(1) Any person falling under each of the following subparagraphs shall be punished by a fine for negligence not exceeding ten million won:

1. A person who interferes with or refuses any act performed in accordance with Article 51 (2) without any justifiable grounds;

2. A person who performs any act under Article 51 (2) without obtaining permission or consent under Article 51 (3) through (5).

(2) The fine for negligence under paragraph (1) shall be imposed and collected by the head of the competent Si/Gun/Gu, as prescribed by the Presidential Decree. <Amended by Act No. 9603, Apr. 1, 2009>

(3) through (5) Deleted. <by Act No. 9603, Apr. 1, 2009>

[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]