Article 63(Compensation in cash) #
(1) Except as provided in other statutes, compensation for any loss shall be paid in cash; provided, where a project operator can compensation a landowner for losses with land in consideration of a reasonable land use plan and the project plan for the relevant public works project, if the landowner so desires, the project operator may compensate the landowner with the land developed by implementing such public works project pursuant to the following standards and procedures for an amount, other than that paid in cash under the main clause or in bonds under paragraphs (7) and (8) out of the total compensation to be paid to the landowner: <Amended on Feb. 3, 2022>
1. A person eligible for compensation with land: A person who meets the requirements prescribed by Presidential Decree, such as length of the land holding period, and who has transferred land, the size of which equals to or exceeds the area of partition limit of a site under Article 57(1) of the Building Act, to a project operator (excluding persons employed by any of the following institutions and persons for whom 10 years have not passed from the date he or she was employed by such institution, as at the time a public notice, etc. under relevant statutes or regulations governing a public works project is given). In such cases, where persons eligible for compensation with land compete with each other, persons who reside in the relevant public works zone from among persons who are not an absentee real estate owner under paragraph (7)2 shall be compensated with land in the order of the length of the land holding period from long to short, and a project operator shall determine and publicly announce the order of priority and methods for determining persons eligible for compensation with land, etc.:
a. The Ministry of Land, Infrastructure and Transport;
b. The project operator;
c. An institution granting permission, authorization, approval, etc. for a public works project subject to consultation or hearing of opinions under Article 21(2);
d. Central administrative agencies, local governments, public institutions under Article 4 of the Act on the Management of Public Institutions, and local public enterprises under the Local Public Enterprises Act, subject to consultation, hearing of opinions, etc., conducted under relevant statutes or regulations before public notice, etc. is given under relevant statutes or regulations governing a public works project;
2. Basis amount for calculating land price for compensation: General price of sale in lots, unless provided in other statutes;
3. Public announcement of compensation criteria: When a compensation plan is publicly announced pursuant to Article 15, such announcement shall include criteria for providing compensation with land or content that such criteria will be separately publicly announced in daily newspapers.
(2) The area of land with which a landowner is compensated pursuant to the proviso of paragraph (1) shall be determined by a project operator, taking into consideration the land use plan and the project plan for such public works project. In such cases, such area of land shall not exceed 990 square meters for a housing lot and 1,100 square meters for a commercial lot.
(3) No right decided to receive any compensation with land pursuant to the proviso of paragraph (1) (including a right to compensation in cash under paragraph (4)) shall be resold (including sale, donation, other acts accompanying any change of the right, but excluding inheritance and investment in kind to a real estate investment company specialized in development pursuant to the Real Estate Investment Company Act) from the date such compensation contract is concluded until the registration for ownership transfer is completed, and where it is violated or in any of the following cases in relation to the relevant public works project, a project operator shall pay compensation agreed to be paid with land in cash. In such cases, the interest rate for cash compensation shall be 1/2 of the interest rate set forth in paragraph (9)1a: <Amended on Apr. 7, 2020; Feb. 3, 2022>
1. Where a violation falling under any of Articles 93, 96, or subparagraph 2 of Article 97 is committed;
2. In cases of a violation falling under any of Articles 57 through 61 of the Farmland Act;
3. In cases of a violation falling under Article 53, any of subparagraphs 1, 2, 3-2, and 4 through 8 of Article 54, and subparagraphs 1, 2, and 4 through 10 of Article 55 of the Mountainous Districts Management Act;
4. In cases of a violation falling under any of Article 57(1) and 58(1) 1 of the Special Act on Public Housing;
5. In cases of a violation falling under Article 28 of the Korea Land and Housing Corporation Act.
(4) Where a landowner desires to be compensated with land pursuant to the proviso of paragraph (1), he or she may request compensation in cash instead of land from the date a year lapses after the conclusion date of compensation contract. In such cases, the interest rate on cash compensation shall be that set forth in paragraph (9)2a.
(5) Where a project operator is unable to provide compensation with land for all or part of the land for which he or she has promised to do so due to grounds prescribed by Decree of the Ministry of Land, Infrastructure and Transport, such as a modification of the relevant project plan, he or she may pay compensation in cash in lieu of land. In such cases, the interest rate on cash compensation shall be that set forth in paragraph (9)2a. <Amended on Mar. 23, 2013>
(6) Where a landowner requests cash compensation for any compensation supposed to be paid with land as he or she falls under any of the following cases, a project operator shall pay such compensation in cash. In such cases, the interest rate on cash compensation shall be that set forth in paragraph (9)2a: <Amended on Mar. 23, 2013>
1. Where a landowner receives the disposition on default of national and local taxes, or compulsory execution thereof;
2. Where all members of his or her household intend to emigrate overseas or to stay overseas for at least two years;
3. Other cases prescribed by Decree of the Ministry of Land, Infrastructure and Transport as similar to those provided for in subparagraph 1 or 2.
(7) Where a project operator falling under any of the following cases is the State, a local government or a public institution or public organization designated and publicly notified pursuant to the Act on the Management of Public Institutions as prescribed by Presidential Decree, compensation may be paid with the bonds issued by the relevant project operator, notwithstanding the main clause of paragraph (1):
1. Where the landowner or relevant person so desires;
2. Where for the public works, the project approval of which has been granted, compensation for the land of any absentee real estate owner prescribed by Presidential Decree exceeds the specific amount set by Presidential Decree, and where the compensation is paid for such exceeding amount.
(8) A public institution or public organization designated and publicly notified pursuant to the Act on the Management of Public Institutions as prescribed by Presidential Decree from among persons implementing any of the following public works project in an area prescribed by Presidential Decree where land speculation is likely to occur, shall pay compensation with the bonds issued by the relevant project operator for the portion exceeding the specific amount of 100 million won or more as prescribed by Presidential Decree, out of the compensation for the absentee real estate owners under paragraph (7)2, notwithstanding paragraph (7):
1. Housing site development projects under the Housing Site Development Promotion Act;
2. Industrial complex development projects under the Industrial Sites and Development Act;
3. Other large development projects prescribed by Presidential Decree.
(9) Where compensation is paid with bonds pursuant to paragraphs (7) and (8), the redemption period of such bonds shall be fixed within the scope not exceeding five years, and the interest rates thereon shall be as follows:
1. Where an absentee real estate owner is paid with bonds pursuant to paragraphs (7) 2 and (8):
a. Bonds with a redemption period of three years or less: the interest rate on three-year time deposit (in the preceding month of the date of issuance of the bonds and which is calculated by averaging the interest rates being adopted by banks covering the whole country as their business areas, among the banks established pursuant to the Banking Act);
b. Bonds with a redemption period of three to five years: The yield on five-year government bonds (which is calculated by averaging the distribution rates of government bonds in the preceding month of the date of issuance of the bonds).
2. Where a person other than an absentee real estate owner is paid with bonds because he or she so desires:
a. Bonds with a redemption period of three years or less: The yield on three-year government bonds (which is calculated by averaging the distribution rates of government bonds in the preceding month of the date of issuance of the bonds) shall apply, but where the interest rate on three-year time deposit is higher than the yield on three-year government bonds, the former shall apply;
b. Bonds with a redemption period of three to five years: The yield on five-year government bonds (which is calculated by averaging the distribution rates of government bonds in the preceding month of the date of issuance of the bonds).
[This Article Wholly Amended on Aug. 4, 2011]