ENFORCEMENT DECREE OF THE SPECIAL ACT ON DESIGNATION AND MANAGEMENT OF FREE ECONOMIC ZONES

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Special Act on Designation and Management of Free Economic Zones and those necessary for enforcing that Act.

[This Article Wholly Amended on Jul. 30, 2009]

Article 2(Request for designation of free economic zones) #

(1) Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor") intends to request the designation of any free economic zone in accordance with Article 4(1) of the Special Act on Designation and Management of Free Economic Zones (hereinafter referred to as the "Act"), he or she shall separately take measures to stabilize the prices of real estate, including land, buildings, etc. located in an area to be developed into a free economic zone and in its surrounding areas and have a prior consultation with the Minister of Trade, Industry and Resources and the Minister of Land, Infrastructure and Transport. <Amended on Aug. 5, 2011; Mar. 23, 2013; May 20, 2025; Oct. 1, 2025>

(2) A Mayor/Do Governor may request the heads of relevant central administrative agencies to take necessary measures to stabilize real estate prices in a free economic zone and its surrounding areas.

[This Article Wholly Amended on Jul. 30, 2009]

Article 2-2(Hearing opinions of residents) #

(1) When a Mayor/Do Governor intends to hear the opinions of residents to request the designation of a free economic zone pursuant to the latter part of Article 4(2) of the Act, he or she shall publicly announce the following matters in the public gazette and via the website of the relevant local government and may publicly announce such matters through two or more daily newspapers that are mainly distributed in the relevant Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, or a Special Self-Governing Province (hereinafter referred to as "City/Do"). In such cases, the Mayor/Do Governor shall make such documents available for perusal by all residents under his or her jurisdiction for not less than 14 days from the date of such announcement: <Amended on May 20, 2025>

1. The name, location and area of the district subject to the designation of a free economic zone;

2. Key details of a development plan for a free economic zone under Article 4(2) of the Act (hereinafter referred to as "development plan for a free economic zone");

3. Period and methods of perusal of the relevant documents.

(2) A resident who has any opinion concerning matters publicly announced pursuant to paragraph (1) may submit a written opinion to the competent Mayor/Do Governor within the period of perusal under paragraph (1).

(3) A Mayor/Do Governor shall review whether the opinion submitted pursuant to paragraph (2) is reflected in the development plan for a free economic zone and then notify the resident who has submitted the relevant opinion of the results thereof within 15 days from the date the period of perusal ends.

[This Article Added on Aug. 5, 2011]

Article 2-3(Consultation on development of free economic zones) #

(1) The head of a relevant administrative agency, in receipt of a request by the Minister of Trade, Industry and Resources for consultation under the former part of Article 4(4) of the Act, shall comply with such request with his or her opinion within 20 days from the date he or she receives such request; provided, where otherwise provided in any other statutes or regulations in relation to the consultation period for a decision on or modification of a plan for the development of free economic zones, such statutes or regulations shall govern. <Amended on Oct. 1, 2025>

(2) Where the head of a relevant administrative agency in receipt of a request for consultation under paragraph (1) is not able to comply therewith within the consultation period due to unavoidable circumstances, he or she shall notify the grounds and deadline for reply and state his or her opinion within such deadline.

[This Article Added on Dec. 15, 2015]

[Previous Article 2-3 Moved to Article 2-4 <Dec. 15, 2015>]

Article 2-4(Phased development of free economic zones) #

"Where the requirements prescribed by Presidential Decree have been fulfilled" in Article 4(7) of the Act means any of the following cases: <Amended on Aug. 13, 2013; Nov. 4, 2014>

1. Where the land required for the development of a free economic zone is owned by the State or the public or is owned by an expected operator of a development project under Article 6(1)3 of the Act (hereinafter referred to as "expected operator of a development project") or a development project operator under Article 7(2) of the Act (hereinafter referred to as "development project operator");

2. Where a development project under subparagraph 5 of Article 3-3 of the Act (hereinafter referred to as "development project") is conducted at a unit district for a development project, the size of which is at least two million square meters, among unit districts for a development project under Article 6(1)3-2 of the Act (hereinafter referred to as "unit district for a development project") and the area of which subject to phased development is at least 30/100 of the size of the unit district for a development project;

3. Where construction works for reclamation of public waters are conducted in accordance with the Public Waters Management and Reclamation Act;

4. Where a development plan for a free economic zone is established to implement the development in phases in accordance with other statutes.

[This Article Added on Aug. 5, 2011]

[Moved from Article 2-3 <Dec. 15, 2015>]

Article 3(Public notice of designation of free economic zones) #

(1) Where the Minister of Trade, Industry and Resources designates any free economic zone in accordance with Article 4 (8) of the Act, he or she shall publicly notify the following matters in the Official Gazette: <Amended on Aug. 5, 2011; Mar. 23, 2013; Aug. 13, 2013; Oct. 1, 2025>

1. The name, location, and size of the free economic zone;

2. Objectives of designating the free economic zone;

3. Location and size of the development project, and an expected operator or an operator of the development project;

4. Duration of development projects, means to secure finances and methods of implementing the development project (referring to the duration of the development project, means to secure finances and methods of implementing the development projection in each phase, where the development project is undertaken in phases in accordance with Article 4(7) of the Act);

5. Programs for utilizing land and for major infrastructure;

6. Programs for accommodating population and constructing residential buildings;

7. Programs for inducing investments from foreigners and creating an environment for their settlement;

8. Means to peruse relevant drawings and documents;

9. Other matters deemed necessary by the Free Economic Zone Committee pursuant to Article 25 of the Act (hereinafter referred to as the "Committee").

(2) Where the Minister of Trade, Industry and Resources modifies the details of a development plan for a free economic zone in accordance with Article 7 of the Act, he or she shall publicly notify the grounds therefor and matters falling under the subparagraphs of paragraph (1) in the Official Gazette. <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

(3) Where the Minister of Trade, Industry and Resources revokes the designation of a free economic zone pursuant to Article 8 of the Act or excludes a unit district for a development project from a free economic zone and where the designation of a free economic zone is deemed revoked pursuant to Article 8-2 of the Act, he or she shall publicly notify the matters falling under the subparagraphs of paragraph (1) (the matters under paragraph (1) 1 through 3, where the entire designation of a free economic zone is revoked) and the following matters in the Official Gazette: <Added on Aug. 5, 2011; Mar. 23, 2013; Aug. 13, 2013; Oct. 1, 2025>

Article 4(Requirements for designation of free economic zones) #

"Requirements prescribed by Presidential Decree" in subparagraph 7 of Article 5 of the Act means the following matters: <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. To easily secure professional human resources required for a plan for attracting industries under Article 6(1)9 of the Act, such as infrastructure for transportation and communications, and living conditions, etc.;

2. To ensure sustainable development that does not waste resources including economy, society, environment, etc. for the future generation, or undermine conditions;

3. To be equipped with professional human resources and organizations in charge of developing the relevant free economic zone and attracting foreign investment;

4. Other matters publicly announced by the Minister of Trade, Industry and Resources after undergoing deliberation by the Committee.

[This Article Wholly Amended on Jul. 30, 2009]

<Title Amended on Aug. 5, 2011>

Article 4-2 #

Deleted. <Aug. 5, 2011>

Article 5(Development plans for free economic zones) #

(1) "Matters prescribed by Presidential Decree" in Article 6(1)16 of the Act means the following matters: <Amended on Aug. 5, 2011; Jan. 5, 2021>

1. Duration of a development project;

2. Matters concerning infrastructure, such as water supply, energy, traffic, and information and communications;

3. Programs for creating cultural facilities and parks, as well as greenbelts;

4. Urban landscape programs;

5. Programs for existing buildings, structures, etc. to be kept intact;

6. Plans for underground utilities such as utility tunnels (referring to facilities installed underground that jointly accommodate underground utilities, such as supply facilities for electricity, gas, and water, communications facilities, and sewerage facilities; hereinafter the same shall apply);

7. Matters concerning the inducement of major facilities and standards for installing them;

8. Examination of the economic efficiency with respect to programs for constructing key establishments, including major infrastructure, etc., necessary to develop any free economic zone.

(2) A development plan for a free economic zone shall be accompanied by the following documents and drawings:

1. A topographic map drawn to a scale of 1:25,000 or greater, which indicates the location of the relevant free economic zone, and a topographic map drawn to a scale of 1:5,000 or greater, which indicates the location of the relevant free economic zone;

2. A land registration map or forest land map, which indicates the boundaries of the relevant free economic zone.

(3) When deemed necessary, the Minister of Trade, Industry and Resources may request the relevant Mayor/Do Governor for additional matters to be included in a development plan for a free economic zone. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

Article 5-2(Modification of development plans for free economic zones) #

(1) When the Minister of Trade, Industry and Resources is requested to modify a development plan for free economic zones under Article 7(1) and (2) of the Act, he or she shall notify the Mayor/Do Governor or the development project operator in writing as to whether the development plan for free economic zones is modified within three months from the date he or she was requested to modify it unless there is a compelling reason not to do so. <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

(2) The period to go through the Mayor/Do Governor under the former part and latter part of Article 7(2) of the Act shall be within one month. <Amended on Aug. 5, 2011>

(3) "Modification of any important matter prescribed by Presidential Decree is intended" in Article 7(3)1 of the Act means any of the following cases: <Amended on Aug. 13, 2013; Dec. 15, 2015; May 20, 2025>

1. Where the size of a unit district for a development project is changed by not less than the size under paragraph (4)2 or 2-2. In such cases, paragraph (5) shall apply mutatis mutandis to the methods of calculating the size;

2. Where the method of development is changed to phased development under subparagraph 2 of Article 2-4.

(4) "Minor matter prescribed by Presidential Decree" in Article 7 (4) of the Act means the following matters: <Amended on Aug. 5, 2011; Jul. 20, 2012; Sep. 21, 2012; Mar. 23, 2013; Nov. 4, 2014; Oct. 23, 2018; May 20, 2025; Oct. 1, 2025>

1. Change of name of the relevant free economic zone due to a change in administrative districts, etc.;

2. Change in the size of a unit district for a development project, which falls under any of the following items:

a. Where the total size of a unit district for a development project is at least one million square meters: Change in the size of less than 100,000 square meters;

b. Where the total size of a unit district for a development project is less than one million square meters: Change in the size of less than 10/100 of the unit district for a development project;

2-2. A change in the area of a tourism complex under the Tourism Promotion Act (referring to a tourism complex that covers all or part of a district for a unit development project) by not more than 30/100 of the area of a unit development project district;

3. Change in a land utilization plan, plan for major infrastructure, etc. within the size prescribed in subparagraph 2 or 2-2;

Article 5-3(Matters to be consulted with Mayors/Do governors in developing areas with development plans for free economic zones yet to be established) #

"Cases prescribed by Presidential Decree" in the proviso of Article 7-3 of the Act means any of the following cases: <Amended on Aug. 5, 2011>

1. Construction permission granted under Article 11 of the Building Act, reporting of construction under Article 14 of the same Act, permission for or reporting of changes under Article 16 of the same Act, permission for or reporting of a change in the purpose of use under Article 19 of the same Act, permission for or reporting of temporary building under Article 20 of the same Act, reporting of the commencement of construction under Article 21 of the same Act, and approval for the use of building under Article 22 of the same Act;

2. Permission for development activities under Article 56 of the National Land Planning and Utilization Act.

[This Article Added on Jul. 30, 2009]

[Moved from Article 5-2; Previous Article 5-3 moved to Article 6 <Aug. 5, 2011>]

Article 6(Scope of areas contiguous to free economic zones) #

"Distance prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 7-4 of the Act means two kilometers. <Amended on Aug. 5, 2011>

[This Article Added on Jul. 30, 2009]

[Moved from Article 5-3; Previous Article 6 moved to Article 5-2 <Aug. 5, 2011>]

Article 6-2(Restrictions on Acts) #

(1) "Act prescribed by Presidential Decree, such as the alternation in the form or quality of land, the construction of buildings, and the installation of structures" in the former part of Article 7-5(1) of the Act means any of the following acts: <Amended on Aug. 5, 2011; Jan. 5, 2021>

1. Changing the form and quality of land and excavation;

2. Gathering soil, stones, gravel or sand;

3. New construction, reconstruction and expansion of buildings, or installation of structures;

4. Deforestation of bamboo or trees and planting;

5. Installation of, or storing goods difficult to move.

(2) The competent Mayor/Do Governor shall grant permission to engage in an act falling under any subparagraph of paragraph (1) to the extent that does not hinder the relevant development project. In such cases, the competent Mayor/Do Governor shall hear the opinions of the relevant development project operator before granting permission.

(3) Notwithstanding paragraph (1), any of the following acts in districts of a development project may be committed, even without permission from the competent Mayor/Do Governor: <Amended on Nov. 4, 2014>

1. Change in the form and quality of land for cultivation;

2. Establishment of small structures to be directly used to produce agricultural, forest, and fishery products;

3. Temporary planting of ornamental plants in areas, other than farmland;

4. Installation or storage of any good of less than five tons, a single body, the part of which is less than one ton and can be easily classified;

5. Utilization of land within the extent not hindering development projects and damaging the natural landscape.

[This Article Wholly Amended on Jul. 30, 2009]

Article 6-3(Procedures for selecting core strategic industries) #

(1) Where the head of an administrative body under Article 27-2 (1) of the Act (hereinafter referred to as "free economic zone authority") intends to request the selection of a core strategic industry pursuant to Article 7-7 (1) of the Act, he or she shall submit to the Minister of Trade, Industry and Resources a written request for selection of a core strategic industry specifying the following matters: <Amended on Oct. 1, 2025>

1. The outline and status of the industry subject to the request;

2. Necessity for selecting the industry subject to the request;

3. Plans for fostering or specialized development of the industry subject to the request;

4. Expected effects of selecting the industry subject to the request as a core strategic industry;

5. Other matters necessary to verify matters to be considered under the subparagraphs of Article 7-7(3) of the Act.

(2) Where necessary for professional and technical review upon the request for selection under paragraph (1), the Minister of Trade, Industry and Resources may organize and operate a core strategic industry selection and evaluation group comprised of up to 15 persons commissioned in consideration of gender equality, from among experts in the industry subject to such request. <Amended on Oct. 1, 2025>

(3) Except as provided in paragraphs (1) and (2), matters necessary for the procedures for selecting strategic core industries shall be determined and publicly notified by the Minister of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

[This Article Added on Sep. 14, 2021]

[Previous Article 6-3 moved to Article 6-4 <Sep. 14, 2021>]

Article 6-4(Revocation of designation of free economic zones) #

"Grounds prescribed by Presidential Decree" in Article 8(1)4 of the Act means cases where the designation of a development zone, area, district, etc. is in progress in accordance with other statutes or regulations and thus it is unnecessary to maintain the designation of a free economic zone when taking into account plans for the use of land, attracting enterprises, etc. under the relevant statutes or regulations.

[This Article Added on Aug. 5, 2011]

[Moved from Article 6-3; Previous Article 6-4 moved to Article 6-5 <Sep. 14, 2021>]

Article 6-5(Legal fiction of revocation of designation of free economic zones) #

(1) "Date prescribed by Presidential Decree" in the main clause of Article 8-2(1) of the Act means the date of reckoning for the timing of a phased development under Article 6(1)4 of the Act.

(2) When a Mayor/Do Governor intends to request the exclusion from the legal fiction of the revocation of designation of a free economic zone pursuant to the proviso of Article 8-2(1) of the Act, he or she shall prepare a written request including the following matters at least six months before the date the period under the main clause of Article 8-2(1) of the Act expires and then submit such request to the Minister of Trade, Industry and Resources: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. The name, location, and size of the free economic zone;

2. The size of the area subject to legal fiction of the revocation of designation;

3. Grounds for the exclusion from the legal fiction of the revocation of designation;

4. Plans for the future development of the area subject to legal fiction of the revocation of designation;

5. Other matters publicly notified by the Minister of Trade, Industry and Resources as deemed necessary.

(3) Upon receipt of a request for the exclusion from the legal fiction of the revocation of designation pursuant to paragraph (2), the Minister of Trade, Industry and Resources shall notify the Mayor/Do Governor of the results of the deliberation and resolution by the Committee within three months from the date he or she receives such request unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Added on Aug. 5, 2011]

[Moved from Article 6-4; Previous Article 6-5 moved to Article 6-6 <Sep. 14, 2021>]

Article 6-6(Designation of development project operators) #

(1) "Institution prescribed by Presidential Decree" in Article 8-3(1)3 of the Act shall be as follows: <Amended on Apr. 20, 2012; Apr. 2, 2019; Jun. 8, 2021>

1. The Korea Land and Housing Corporation established pursuant to the Korea Land and Housing Corporation Act;

2. The Korea Highway Corporation under the Korea Expressway Corporation Act;

3. The Korea National Tourism Organization under the Korea National Tourism Organization Act;

4. The Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

5. The Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act;

6. Deleted; <Nov. 4, 2014>

7. The Port Authority under the Port Authority Act;

8. The Incheon International Airport Corporation under the Incheon International Airport Corporation Act;

9. The Korea Airports Corporation under the Korea Airports Corporation Act;

10. The Korea Industrial Complex Corporation referred to in Article 45-17 of the Industrial Cluster Development and Factory Establishment Act;

11. The Korea Railroad Corporation under the Korea Railroad Corporation Act;

12. Korea SMEs and Startups Agency under Article 68(1) of the Small and Medium Enterprises Promotion Act.

(2) "Person meeting qualification requirements prescribed by Presidential Decree, such as capital, etc." in Article 8-3(1)5 of the Act means any of the following persons: <Amended on Sep. 21, 2012; Aug. 13, 2013; Aug. 27, 2013; Nov. 4, 2014; Sep. 14, 2021>

1. A person whose corporate bond or corporate credit appraised by a credit rating company authorized for credit rating business under Article 335-3 of the Financial Investment Services and Capital Markets Act or a foreign credit rating agency internationally accredited falls under an investment-grade level or higher, and fulfills at least two requirements, including item a, among the following requirements:

a. The equity capital in the latest year shall be at least 10/100 of total project cost, or the total amount of sales shall be at least 30/100 of total project cost (in cases of a corporation that falls under Article 8-3(1)6 of the Act, the equity capital in the latest year shall be at least 2.5/100 of total project cost or 50 billion won);

Article 6-7(Implementation orders to development project operators) #

When a Mayor/Do Governor intends to issue an implementation order under Article 8-4(2) of the Act, he or she shall notify such order in writing, indicating the following matters:

1. A relevant unit district for a development project and the operator thereof;

2. The grounds for and details of the implementation order;

3. The deadline for complying with the implementation order;

4. Other matters recognized by the Mayor/Do Governor as necessary.

[This Article Added on Aug. 5, 2011]

[Moved from Article 6-6; Previous Article 6-7 moved to Article 6-8 <Sep. 14, 2021>]

Article 6-8(Standard amount for purchase consultation) #

Methods, etc. of calculating the cost of purchase under Article 8-6(3) of the Act shall be as provided in Appendix 1.

[This Article Added on Aug. 5, 2011]

[Moved from Article 6-7 <Sep. 14, 2021>]

Article 7(Preparation of implementation plans) #

Each development project operator shall prepare an implementation plan under Article 9(1) of the Act (hereinafter referred to as "implementation plan") in compliance with the master plan for free economic zones under Article 3-2 of the Act, the development plan defined in Article 3-4 of the Act, and the development plan for a free economic zone. <Amended on Aug. 5, 2011; Sep. 14, 2021>

[This Article Wholly Amended on Jul. 30, 2009]

Article 8(Application for approval of implementation plans) #

(1) Where a development project operator intends to obtain approval of an implementation plan or approval for modification thereof in accordance with Article 9 (1) of the Act, he or she shall prepare an application specifying the following matters and file such application with the competent Mayor/Do Governor: <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. The location and area of the development project he or she intends to implement;

2. The duration of the development project;

3. Schedule to secure and utilize land required for the development project;

4. Where the development project is undertaken in phases in accordance with Article 4(7) of the Act, the program for implementing the development project in each phase;

5. District-unit planning under Article 9(4) of the Act;

6. Measures for renting, or supplying for lotting-out, the part of the land for facilities for industry and distribution to foreign-invested enterprises pursuant to Article 9(5) of the Act;

7. Where the building-to-land ratio or floor space index is separately provided under Article 9-2 of the Act, the necessity of application of relevant special cases and the details thereof;

8. Plans for re-investment of development gains under Article 9-8 of the Act;

9. Where permission, etc. is deemed granted under each subparagraph of Article 11(1) of the Act, the details thereof;

10. The name and address of the relevant development project operator;

11. Other matters publicly notified by the Minister of Trade, Industry and Resources as deemed necessary for implementing a development project.

(2) Each application for approval of an implementation plan under paragraph (1) shall be accompanied by the following documents and drawings: <Amended on Aug. 5, 2011; Jul. 20, 2012; Jan. 5, 2021; May 7, 2024>

1. The location map;

2. A site map based on the cadastral map (referring to a map in which the uses of land are recorded);

3. Planned floor plan and schematic design drawings and documents;

4. A financial plan and a document attesting such plan (including annual investment plans, annual plans for securing financial resources and annual plans for recovery of money invested, etc.);

Article 9(Procedures for approving implementation plans) #

(1) A relevant development project operator shall file an application for approving an implementation plan under Article 9 (1) of the Act within 18 months from the date of designation as a development project operator with the competent Mayor/Do Governor, and also submit a copy of his or her implementation plan to the Minister of Trade, Industry and Resources; provided, where the deadline for approval of implementation plans has been extended under Article 9 (3) of the Act, the deadline for application for approval of implementation plans shall be also deemed extended as much as the relevant extended deadline. <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

(2) When a Mayor/Do Governor is requested to approve an implementation plan or approve modification to an implementation plan under Article 9(1) of the Act, he or she shall notify, in writing, a relevant development project operator as to whether he or she approves the implementation plan or approves modification to the implementation plan within five months from the date on which he or she is requested for approval or approval of modification, unless there is a compelling reason not to do so. <Amended on Aug. 5, 2011>

[This Article Wholly Amended on Jul. 30, 2009]

Article 9-2(Matters to be consulted in approving implementation plans) #

"Implementation plan that meets the criteria prescribed by Presidential Decree" in Article 9(2) of the Act means any of the following implementation plans: <Amended on Dec. 15, 2015>

1. An implementation plan in which any matter related to the subsidization of State funds is Added or amended in a financing plan;

2. An implementation plan which involves the confirmation or confirmation of amendment to a development plan for a free economic zone (excluding cases falling under any subparagraph of Article 5-2(4));

3. An implementation plan that has a matter that the Committee has requested to add while deliberation on or resolution of a development plan for a free economic zone.

[This Article Added on Aug. 5, 2011]

Article 10 #

Deleted. <Aug. 5, 2011>

Article 11(Timing of submission of environmental impact assessment reports) #

Environmental impact assessment reports, traffic impact assessment and consultations shall be submitted and requested, or deliberation by the deliberation committee of traffic impact assessment shall be made, prior to granting of approval for an implementation plan, notwithstanding Article 47 of the Enforcement Decree of the Environmental Impact Assessment Act and Article 13-3 of the Enforcement Decree of the Urban Traffic Improvement Promotion Act. <Amended on Jul. 20, 2012; Jan. 22, 2016>

[This Article Wholly Amended on Jul. 30, 2009]

Article 11-2(Special cases concerning the National Land Planning and Utilization Act) #

The Special Metropolitan City, Metropolitan Cities having jurisdiction over free economic zones or Sis/Guns located in free economic zones may separately set the building-to-land ratio or floor space index in the free economic zones by their municipal ordinances within 150/100 of the building-to-land ratio or floor space index to be applied to the relevant specific-use area; provided, where the specific-use area is altered under Article 11(1)16 of the Act, the building-to-land ratio or floor space index shall not be set separately.

[This Article Wholly Amended on Jul. 30, 2009]

Article 11-3 #

Deleted. <Aug. 5, 2011>

Article 11-4(Methods of supply of prepared land) #

(1) "Where a development project operator supplies any prepared land for purposes prescribed by Presidential Decree, including attracting foreign-invested enterprises, repatriating enterprises, enterprises investing in advanced technologies and products, and enterprises investing in core strategic industries" in the main clause of Article 9-7(2) of the Act means any of the following cases: <Amended on Aug. 5, 2011; Sep. 21, 2012; Nov. 4, 2014; Sep. 14, 2021>

1. Where a prepared land defined in Article 9-7(1) of the Act (hereinafter referred to as "prepared land") is supplied to foreign-invested enterprises, repatriating enterprises, enterprises investing in advanced technologies and products, enterprises investing in core strategic industries (hereinafter referred to as "foreign-invested enterprise, etc."), foreign educational institutions, or medical institution for foreigners;

2. Where a prepared land is supplied to the State or local governments;

3. Where a small and medium enterprise cooperative supplies a prepared land to its members pursuant to Article 6-6(2)4;

4. Other cases recognized by a Mayor/Do Governor as necessary to revitalize free economic zones.

(2) Where a development project operator intends to supply a prepared land, he or she shall use competitive bidding; provided, in any of the following cases, he or she may supply a prepared land by free contract: <Amended on Sep. 14, 2021>

1. Where he or she supplies a prepared land to persons referred to in the subparagraphs of paragraph (1) under Article 9-7(2) of the Act;

2. Where he or she may supply a prepared land by free contract under relevant statutes or regulations.

(3) Notwithstanding paragraphs (1) and (2), the site for construction of a house not larger than the size of national housing defined in subparagraph 6 of Article 2 of the Housing Act (including sites for rental housing), the site for a detached house which is not larger than 330 square meters, sites for industrial facilities, and logistics facilities may be supplied by method of drawing of lots. <Added on Sep. 21, 2012; Aug. 11, 2016>

(4) Where a development project operator intends to supply a prepared land, he or she shall publicly announce the following matters by no later than 10 days prior to the deadline for application for supply (by no later than five days in cases of emergency or re-supply); provided, public announcement may be omitted in cases of supplying a prepared land by a free contract under the proviso of paragraph (2): <Amended on Sep. 21, 2012>

Article 11-5(Re-investment of development gains) #

Each development project operator shall reinvest 10/100 of gains generated from development pursuant to Article 9-8(1) of the Act. <Amended on Aug. 13, 2013; Nov. 4, 2014>

[This Article Added on Aug. 5, 2011]

Article 12(Public notice of approval for implementation plans) #

A Mayor/Do Governor shall publicly notify the following matters in the public gazette with regard to an implementation plan under Article 10(1) of the Act: <Amended on Aug. 5, 2011>

1. The name of the unit district for a development project and the name of the development project operator (in cases of a corporation, the name of such corporation and the representative thereof);

2. Objectives and a summary of the development project;

3. The location and area of the unit district for a development project;

4. The duration of the development project;

5. Details of the land, etc. to be expropriated or used; provided, details of the land, etc. included in the public notice of designation of the relevant free economic zone shall be excluded.

[This Article Wholly Amended on Jul. 30, 2009]

Article 12-2(Procedures for legal fiction of authorization or permission) #

The head of a relevant administrative agency, upon receipt of a request for consultations from a Mayor/Do Governor under Article 11(2) of the Act, shall submit his or her opinions within 20 days from the date such request is received. <Amended on Aug. 5, 2011; Mar. 24, 2015>

[This Article Wholly Amended on Jul. 30, 2009]

Article 12-3 #

Deleted. <Aug. 5, 2011>

Article 13(Completion inspection) #

(1) Where a development project operator intends to undergo a completion inspection in accordance with Article 14(1) of the Act, he or she shall file an application for the completion inspection, accompanied by the following documents, with the Mayor/Do Governor: <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. A report on completion of construction (including as-built drawings and photographs);

2. The map of cadastral survey;

3. Written records of land areas by purpose of use;

4. Written records of reverted public facilities, etc. and the drawings thereof;

5. Other documents prescribed by Ministerial Decree of the Trade, Industry and Resources.

(2) Upon receipt of any application for work completion inspections, the Mayor/Do Governor shall check whether the relevant development project has been implemented in compliance with the relevant implementation plan and if he or she recognizes that the relevant development project has been implemented in compliance with such plan, he or she shall deliver an inspection certificate of work completion to the relevant development project operator and publicly notify the following matters in the public gazette: <Amended on Aug. 5, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. The name of the development project;

2. The name and address of the development project operator;

3. The location and area of the development project and the area by purpose of use;

4. The date of completion of works;

5. Matters concerning management and disposal of major facilities;

6. Other matters publicly notified by the Minister of Trade, Industry and Resources as deemed necessary.

[This Article Wholly Amended on Jul. 30, 2009]

Article 14(Use of land prior to completion inspection) #

(1) Where any person who has rented or purchased, by contract, any land developed or any facility installed under a development project, requests for permission to use them prior to a completion inspection, the relevant development project operator shall, if the use of such land and facility prior to the completion inspection is deemed not to impede his or her development project, file an application for permission for use prior to completion inspection without delay, accompanied by the following documents, with the Mayor/Do Governor, pursuant to the proviso of Article 14(3) of the Act: <Amended on Aug. 5, 2011>

1. Documents stating the grounds for using them and the urgency of using them prior to a completion inspection;

2. Documents showing the current progress of works involving such land and facility to be used;

3. Written opinion presented by the inspector of works or the supervisor of works with regard to the possibility of use of land and facilities to be used and their safety, etc.;

4. Drawings and photos showing such land and facilities to be used in the completion stage;

5. The explicit survey of the land to be used.

(2) Upon receipt of an application from the relevant development project operator for using land and facilities under paragraph (1), the Mayor/Do Governor shall determine whether the developed land and installed facilities can be used in accordance with their intended purpose and then impose a disposition to grant permission or not to grant permission within 30 days from the date on which he or she receives such application. <Amended on Aug. 5, 2011>

[This Article Wholly Amended on Jul. 30, 2009]

Article 14-2(Scope of installation of infrastructure) #

The scope of facilities to be installed by type under Article 14-2(2) of the Act shall be as follows: <Amended on Apr. 10, 2012; Apr. 20, 2012; Jan. 5, 2021>

1. Roads: Roads meeting all of the following requirements:

a. That it shall be a road that has been decided as a road under the National Land Planning and Utilization Act or a road district under the Road Act before the designation of a free economic zone;

b. That it shall be a national highway, Do road, or State-subsidized Do road under the Road Act, which is to be installed by local governments;

2. Waterworks and sewerage: Ducts of waterworks and sewerage not linked with the ducts of waterworks and sewerage within a free economic zone but just pass through the zone;

3. Electricity facilities: Electricity facilities to the boundary line of individual plot of land (hereinafter referred to as "individual plot of land") adjacent to an urban and Gun planning road with a width of six meters or wider on the land utilization plan within a free economic zone, which shall be facilities being the mainstay outside the free economic zone; provided, where main electricity facilities within a free economic zone are installed underground upon the request of a development project operator, the person who supplies electricity and the person who requests to install it underground shall bear the expenses incurred in installing main electricity facilities underground within a free economic zone at the ratio of 50:50;

4. Gas supply facilities: Gas supply facilities to the boundary line [to a fixed pressure control room where a constant pressure control station (referring to a room installed to maintain the gas supply pressure at a certain level) is installed within the individual plot of land to supply gas for cooking or individual heating (excluding central heating)] of each individual plot of land within the free economic zone, which shall be facilities being the mainstay outside the free economic zone;

5. District heating facilities: Heat transfer pipes to the control valve at the entrance of each machine room of individual plot of land from the diverging point of heat transfer pipe, which shall be the mainstay outside the free economic zone;

6. Communications facilities: Cable facilities to the boundary line outside the individual plot of land from the facilities being the mainstay of the free economic zone and cable facilities from the facilities being the mainstay outside the free economic zone to the first terminal in the individual plot of land.

Article 14-3(Repatriating enterprises located in free economic zones) #

"Repatriating enterprises prescribed by Presidential Decree" in Article 16(1) of the Act means repatriating enterprises selected by the Committee in comprehensive consideration of the following:

1. Balanced regional development;

2. The scale of job creation by the repatriating enterprise to be located in a free economic zone;

3. The type of business run, and the amount of investment made, by the repatriating enterprise to be located in a free economic zone.

[This Article Added on Oct. 10, 2018]

Article 15(Funding support for local governments) #

(1) Where the State provides funding support for local governments in accordance with Article 16(3) of the Act, the Committee shall set funding standards, by comprehensively considering the following matters. In such cases, the Committee shall consider the standards for funding support provided for in Article 14 of the Foreign Investment Promotion Act: <Amended on Oct. 10, 2018; Sep. 14, 2021>

1. The scale of job creation;

2. The effects of technology transfer;

3. Types of business and the scale of investment of major enterprise located in a free economic zone defined in Article 16(2) of the Act (hereinafter referred to as "major enterprise located in a free economic zone");

4. Contribution of local governments to inducing investment of foreign-invested enterprises, etc.;

5. The ripple effects of investment by foreign-invested enterprises, etc. on the local economy as well as the national economy.

(2) Upon receipt of requests from local governments for subsidization, the heads of central administrative agencies shall subsidize such local governments according to the subsidization standards set by the Committee; provided, where subsidies are granted under Article 14 of the Foreign Investment Promotion Act as the foreign investment areas under Article 18 of the same Act are designated within a free economic zone, no subsidies shall be granted.

[This Article Wholly Amended on Jul. 30, 2009]

Article 16(Reduction of or exemption from fees for use of or rents on state and public property) #

(1) Deleted. <Mar. 24, 2015>

(2) The reduction or exemption rate applied to fees for use of or rents on State property provided in Article 16(4) of the Act shall be determined by the head of the competent central government agency of the relevant State property (including any person to whom it is delegated or entrusted under Article 28(1) or 29(1) of the State Property Act; hereinafter the same shall apply) within the scope of 100/100 of the rents on the relevant State property. <Amended on Apr. 1, 2011; Mar. 24, 2015; Oct. 10, 2018; Sep. 14, 2021>

(3) A major enterprise located in a free economic zone which intends to qualify for reduction of or exemption from fees for use of or rents on State property in accordance with Article 16(4) of the Act shall file an application for the reduction of or exemption from such fees for use or rents with the head of the competent central government agency of the relevant State property. <Amended on Apr. 1, 2011; Mar. 24, 2015; Oct. 10, 2018; Sep. 14, 2021>

(4) A major enterprise located in a free economic zone which intends to have fees for use of or rents on public property reduced or exempted pursuant to Article 16(4) of the Act shall file an application therefor with the head of the relevant local government. <Amended on Mar. 24, 2015; Oct. 10, 2018; Sep. 14, 2021>

(5) The relevant local government shall prescribe details, such as the business entitled to the reduction of or exemption from fees for use of or rents on public property and the reduction or exemption rate of such fees for use or rents provided in Article 16(4) of the Act in its ordinance, taking into account the creation of jobs and effects on the revitalization of free economic zones and the local economy, etc. <Amended on Mar. 24, 2015; Oct. 10, 2018; Sep. 14, 2021>

(6) If the State and a local government sell any State or public property to any development project operator or any major enterprise located in a free economic zone in accordance with Article 16(6) of the Act and any purchaser is deemed to face difficulty in paying the purchase price in lump sum, it may extend the payment deadline of the purchase price or allow the purchaser to pay the purchase price in installments according to the following methods. In such cases, the interest applied shall not exceed four percent per annum: <Amended on Oct. 10, 2018; Sep. 14, 2021>

1. In cases of State property: The payment deadline of the purchase price is extended within one year or the purchase price is paid in installments within 20 years;

Article 17(Prioritized support for infrastructure) #

(1) The infrastructure the State or local governments shall give priority to supporting under Article 18 of the Act shall be as follows:

1. National expressways, general national highways, Special Metropolitan City highways, Metropolitan City highways, local highways and State-subsidized local highways, which all link free economic zones with outside areas;

2. Principal roads inside free economic zones;

3. Railway, subway, airport and harbor facilities;

4. Parks and green areas;

5. Utility tunnels, tap-water and sewage systems, and waste-disposal facilities;

6. Other infrastructure deliberated and decided on by the Committee as requiring preferential subsidization to revitalize free economic zones.

(2) The State may subsidize infrastructure referred to in each subparagraph of paragraph (1) within 50/100 of the construction cost; provided, if deemed necessary to revitalize free economic zones, the State may subsidize the construction cost of up to the whole amount thereof after undergoing deliberation and resolution thereon by the Committee, exceeding 50/100 of the construction cost.

(3) Where the State provides subsidization under paragraph (2), it shall determine infrastructures subject to subsidization and the scope of subsidization after undergoing deliberation and resolution thereon by the Committee.

[This Article Wholly Amended on Jul. 30, 2009]

Article 18(Provision of foreign-language services) #

(1) Foreign-language services rendered under Article 20(1) of the Act shall be provided in English in principle and if deemed necessary, other foreign-language services may be rendered.

(2) The scope of foreign-language services under Article 20 (1) of the Act shall be as follows: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. Statutes or regulations governing the designation and operation of free economic zones;

2. Development plans of free economic zones;

3. Various official business manuals and information materials compiled by administrative agencies in connection with the development project;

4. Documents sent to foreigners (including organizations of foreigners; hereinafter the same shall apply) in free economic zones;

5. Replies to civil petitions filed by foreigners in free economic zones;

6. Handling of queries and complaints from foreigners and counseling for foreigners in free economic zones;

7. Various public announcements and public notices made under this Act;

8. Other matters publicly notified by the Minister of Trade, Industry and Resources as deemed necessary to ensure the conveniences of foreigners.

(3) If requested by foreigners in free economic zones, relevant administrative agencies shall translate materials under each subparagraph of paragraph (2) into English and provide foreigners with them and such administrative agencies may, if deemed necessary, render interpretation services.

(4) For the purpose of rendering foreign-language services under the subparagraphs of paragraph (2), relevant administrative agencies shall post necessary professionals, including interpreters, translators, etc., and compile and keep relevant materials, etc.

(5) Relevant administrative agencies may, if requested by foreigners in free economic zones, assist with their handling of civil-petition affairs, including preparation and submission, etc. of their civil petitions.

[This Article Wholly Amended on Jul. 30, 2009]

Article 19(Payment in ordinary transactions) #

The price in an ordinary transaction in any free economic zone under Article 21 of the Act, the amount of which is not more than 100,000 U.S. dollars per transaction, may be paid directly by means of foreign payment between the parties to such ordinary transaction. <Amended on Dec. 15, 2015; Sep. 14, 2021>

[This Article Wholly Amended on Jul. 30, 2009]

Article 20(Appointment of foreign teachers) #

(1) Qualifications for foreign teachers appointed to teach the curriculum of international high schools under Article 22(7) of the Act (hereinafter referred to as "international high school") shall be as follows:

1. Persons who satisfy the qualification standards for middle-school teachers provided for in Article 21(2) and Appendix 2 of the Elementary and Secondary Education Act;

2. Persons who have taught for not less than three years after obtaining teaching qualifications in accordance with laws of their countries.

(2) Any person authorized to appoint teachers may appoint any foreigner as a lecturer if necessary to administer the curriculum of an international high school.

(3) Qualifications referred to in each subparagraph of paragraph (1) shall apply to qualifications for appointment of foreign lecturers under paragraph (2); provided, any foreigner who has earned a bachelor's degree or higher in accordance with laws of his or her country shall be deemed to meet such qualifications.

(4) If any foreigner falling under the proviso of paragraph (3) is appointed as a lecturer, he or she shall undergo training for not less than one week, which is conducted by the head of the relevant international high school, within six months from the date of his or her appointment.

(5) Foreign teachers referred to in paragraph (1) shall be contracted every five years and they may teach only languages of their home countries and subjects deemed necessary by the head of the international high school. The term of appointment for foreign lecturers under paragraph (2) shall be not more than one year and their term of appointment may, if necessary, be extended within three years.

(6) Foreign teachers and lecturers may be remunerated in accordance with their respective employment contracts, taking into account Article 5 and Appendix 11 of the Public Officials Remuneration Regulations.

(7) The services of foreign teachers and lecturers shall be governed by their respective employment contracts.

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-2(Requirements for establishment of foreign medical institutions) #

(1) "Matters prescribed by Presidential Decree, such as the scale of capital, etc." in Article 23(1)3 of the Act means the following: <Amended on Mar. 24, 2015>

1. The amount of capital shall be at least five billion won;

2. A cooperative system shall be established, such as the conclusion of a management treaty with a medical institution established and operated in accordance with foreign Acts;

3. Those with foreign doctor's or dentist's licenses under Article 23(6) of the Act shall be secured more than the ratio prescribed by Ministerial Decree of the Health and Welfare.

(2) Provisions concerning capital under the Commercial Act shall apply to matters concerning capital in paragraph (1)1.

(3) Matters necessary for the cooperative system under paragraph (1)2 and the procedures for permitting the establishment of foreign medical institutions under Article 23(1) of the Act shall be prescribed by Ministerial Decree of the Health and Welfare.

[This Article Wholly Amended on Apr. 20, 2012]

Article 20-3(Scope of business incidental to medical institutions) #

"Incidental business prescribed by Presidential Decree, such as establishment, operation, etc. of a therapeutic hot spring under Article 9 of the Hot Spring Act" in the provisions, with the exception of the subparagraphs, of Article 23-2 of the Act means the following business:

1. Public bath business under Article 2(1)3 of the Public Health Control Act;

2. Establishment and management of a therapeutic hot spring under Article 9 of the Hot Spring Act;

3. Tourist accommodation business under Article 3(1)2 of the Tourism Promotion Act, tourist-use facility business under subparagraph 3 of the same paragraph and international conference service under subparagraph 4 of the same paragraph.

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-4(Requirements for granting permission to engage in casino business for foreign investors) #

"Matters prescribed by Presidential Decree, such as the credit standing of investors, etc." in Article 23-3(1)3 of the Act means the following matters: <Amended on Oct. 1, 2009; Sep. 21, 2012; Aug. 27, 2013; Jul. 24, 2015; Sep. 5, 2017; Sep. 14, 2021>

1. That any of the following items shall be met:

a. That the credit rating received from two or more credit rating companies referred to in the provisions, with the exception of the items, of Article 6-6(2)1 or from an internationally accredited foreign credit rating agency shall be an investment-grade level or higher;

b. That a person who receives a notification of suitability pursuant to Article 20-6(3), shall have fully invested the amount to be invested specified in the investment plans referred to in 20-5(1) 3.

2. That the investment plan under Article 20-5(1)3 shall include matters prescribed in any of the following items:

a. Contents that three or more types of tourism business under Article 3 of the Tourism Promotion Act, including hospitality business, shall be operated;

b. Contents that a total of at least 300 million U.S. dollars shall be invested by no later than the time the commencement of casino business is reported under Article 20-7(2) and investments are completed in compliance with the investment plan by not later than two years after the commencement of business;

3. That facilities to be used for business facilities under Article 20-7(1), which fall under any of the following items shall be ready at the time permission for casino business is applied:

a. Hospitality business: Facilities that have been determined as a five-star hotel under Article 22 of the Enforcement Decree of the Tourism Promotion Act;

b. International conference service: Facilities registered under Article 4 of the Tourism Promotion Act.

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-5(Application for permission to engage in casino business) #

(1) Any person who intends to apply for permission to engage in casino business under Article 23-3(2) of the Act shall submit an application (including an application via electronic documents) for permission to engage in foreigner invested casino business prescribed by Ministerial Decree of the Trade, Industry and Resources accompanied by the following documents (including electronic documents) to the Minister of Culture, Sports and Tourism. In such cases, the Minister of Culture, Sports and Tourism shall verify a corporation registration certificate (limited to corporations) through administrative data matching under Article 36(1) of the Electronic Government Act: <Amended on Nov. 2, 2010; Sep. 21, 2012; Mar. 23, 2013; Jan. 5, 2021; Oct. 1, 2025>

1. Documents issued by the government of the country concerned or by an agency commissioned or delegated with the authority or affidavits of the applicant attested by a notary public and verified by the consulate of the Korean mission stationed in the country concerned under the Act on Notarial Acts Done at Diplomatic Missions Abroad, which authenticate that the applicant does not fall under any subparagraph of Articles 7(1) and 22(1) of the Tourism Promotion Act;

2. Documents verifying that the applicant meets requirements for permission under Article 23-3(1) of the Act, and subparagraphs 1 and 3 of Article 20-4 of this Decree;

3. Investment plans (including financing plans and investment agreement specifying the project entity, location and size of the area for project, total project period and implementation schedule, project feasibility analysis, land use plan by purpose of use, size of facilities and placement plan, amount to be invested and time limit for investment, and other matters that the Minister of Culture, Sports and Tourism deems necessary);

4. Plans for operating the casino;

5. Articles of incorporation (limited to corporations).

(2) When any person who has obtained permission to engage in casino business under Article 23-3(1) of the Act intends to modify an investment plan under paragraph (1)3, he or she shall consult with the Minister of Culture, Sports and Tourism.

[This Article Wholly Amended on Jul. 30, 2009]

Article 20-6(Requests for preliminary review) #

(1) The Minister of Culture, Sports and Tourism may decide the following matters and publicly announce them to enable a person who intends to apply for permission for engagement in casino business under Article 23-3(1) of the Act to request a preliminary review under Article 30(1) of the Civil Petitions Treatment Act: <Amended on Jul. 24, 2015; Feb. 12, 2016>

1. Permissible areas;

2. Number of businesses to be permitted;

3. Detailed procedure of preliminary review;

4. Other matters necessary for the sound operation of the casino business and the promotion of tourism business.

(2) A person who intends to apply for a preliminary review under paragraph (1) shall submit the following documents to the Minister of Culture, Sports and Tourism: <Amended on Jul. 24, 2015>

1. Documents proving that the person has paid at least 10/100 of 500 million U.S. dollars under Article 23-3(1)1 of the Act (referring to the amount of foreign investment to be stated at the time the registration of a foreign-capital invested company is effected under Article 21(1) of the Foreign Investment Promotion Act);

2. Documents prescribed in each subparagraph of Article 20-5(1) (excluding the documents proving that the person satisfies the requirements prescribed in subparagraph 1 and 3 of Article 20-4 from among documents referred to in Article 20-5(1)2);

3. Documents proving that the person satisfied any of the following items:

a. Documents proving that the person satisfies the requirements prescribed in subparagraph 1 of Article 20-4;

b. Documents proving that the person has deposited at least 40/100 of 500 million U.S. dollars under Article 23-3(1)1 of the Act in compliance with the public notice of the Minister of Culture, Sports and Tourism;

c. Documents proving that the person has financial ability to invest, such as affirmation certificates of loans or investments, etc. issued by a financial institute as prescribed and publicly notified by the Minister of Culture, Sports and Tourism.

(3) Upon receipt of a request for preliminary review under paragraph (2), the Minister of Culture, Sports and Tourism shall review such request within 90 days and notify the result thereof; provided, when necessary to confirm the factual relationship, etc., the period may be extended within the limit of 30 days. <Amended on Jul. 24, 2015>

Article 20-7(Places of casino business and timing to commence business) #

(1) A place of casino business under Article 23-3(3) of the Act shall be located in a free economic zone in which foreign investment (referring to foreign investment under Article 2(1)4 of the Foreign Investment Promotion Act) is made, and shall be located in facilities incidental to hotel business (limited to facilities that have been determined as a five-star hotel) under Article 2(1)2 of the Enforcement Decree of the Tourism Promotion Act or the international convention facility business under subparagraph 4a of the same paragraph invested by an applicant for permission to engage in casino business. <Amended on Jul. 24, 2015>

(2) Any person who intends to commence casino business shall submit a report on the commencement of business prescribed by Ministerial Decree of the Trade, Industry and Resources (including reports in electronic documents), accompanied by the following documents (including reports in electronic documents) to the Minister of Culture, Sports and Tourism, as prescribed in Article 23-3 (3) of the Act: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. Details of facilities and instruments installed under Article 23(1) of the Tourism Promotion Act;

2. Documents evidencing that 300 million U.S. dollars or more have been invested in tourism business according to details of investment plans under Article 20-5(1)3.

(3) Each person who has been granted permission to engage in casino business shall submit documents evidencing that 500 million U.S. dollars or more have been invested in tourism business to the Minister of Culture, Sports and Tourism according to details of investment plans under Article 20-5(1)3 within 30 days from the date two years have elapsed from the commencement of business.

(4) Documents evidencing investment under paragraphs (2) 2 and (3) shall be prescribed by Ministerial Decree of the Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

[Moved from Article 20-6 <Sep. 21, 2012>]

Article 21(Retransmission of foreign broadcasts) #

The number of foreign broadcasts channels which any CATV broadcasting business may retransmit under Article 24 of the Act shall not exceed 30/100 of the television broadcasting channels, radio broadcasting channels, and data broadcasting channels under operation, respectively.

[This Article Wholly Amended on Jul. 30, 2009]

Article 21-2 #

Deleted. <Sep. 14, 2021>

Article 22(Matters subject to deliberation and resolution by Committee) #

"Matters prescribed by Presidential Decree" in Article 25(2)7 of the Act means any of the following matters: <Amended on Oct. 10, 2018>

1. Matters concerning prevention of illegal circulation of foreign currencies in free economic zones;

2. Matters concerning prevention of rampant and unplanned development and measures to stabilize prices of real estate in free economic zones;

3. Matters concerning the criteria for installation, etc. for the structures within the sports facilities under Article 9-3 of the Act;

4. Matters concerning selection of repatriating enterprises located in a free economic zone under Article 16(1) of the Act;

5. Matters concerning the State funding support for local governments under Article 16(3) of the Act;

6. Other matters deemed necessary for improving business environment and living conditions for foreigners, as publicly announced by the Committee.

[This Article Wholly Amended on Jul. 30, 2009]

Article 23(Composition of Committee) #

(1) The ex officio members under Article 25(5) of the Act shall be the Vice Minister of Economy and Finance; the Vice Minister of Science and ICT; the Vice Minister of Education; the Vice Minister of Foreign Affairs; the Vice Minister of the Interior and Safety; the Vice Minister of Culture, Sports and Tourism; the Vice Minister of Agriculture, Food and Rural Affairs; the Vice Minister of Health and Welfare; the Vice Minister of Climate, Energy and Environment; the Vice Minister of Employment and Labor; the Vice Minister of Land, Infrastructure and Transport; the Vice Minister of Oceans and Fisheries; the Vice Minister of SMEs and Startups; and the Vice Minister of the Ministry of Planning and Budget. In such cases, for an agency that has multiple vice ministers, the vice minister designated by the head of the relevant agency shall serve as the member. <Amended on Mar. 15, 2010; Jul. 12, 2010; Aug. 5, 2011; Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Oct. 1, 2025; Dec. 30, 2025>

(2) Commissioned members provided for in Article 25(6) of the Act shall be commissioned from among experts in the fields of labor, the environment, foreign investment, logistics, urban policies, etc. which are all related to free economic zones.

(3) The term of office for commissioned members under paragraph (2) shall be two years, who may be recommissioned only twice. <Amended on Dec. 15, 2015>

(4) Where the position of a commissioned member is vacant, a new member shall be commissioned to fill the vacancy and the term of his or her office shall be reckoned from the date on which he or she is commissioned. <Amended on Dec. 15, 2015>

[This Article Wholly Amended on Jul. 30, 2009]

[Title Amended on Dec. 15, 2015]

Article 23-2(Exclusion of, challenge to, and abstention of member) #

(1) Where a member of the Committee falls under any of the following cases, he or she shall be excluded from deliberation or resolution by the Committee:

1. Where a member or a member's current or previous spouse is the party (including the executives where the party is a legal person or an organization; hereinafter the same shall apply in this subparagraph and subparagraph 2) or the joint right holder or joint liability holder with the party to the relevant agenda;

2. If the committee member is a current or former relative of any party involved in the relevant agenda item;

3. Where a member has testified for, stated, advised on, researched, provided service for, or appraised the relevant agenda;

4. If the committee member of the corporation or organization to which the committee member belongs is the current or former representative or agent of any party involved in the relevant agenda item.

(2) Where there exists a ground not to expect fair deliberation or resolution by a member, the party to the relevant agenda may apply for a challenge to such member to the Committee, and the Committee shall adopt a resolution on such application. In such cases, the member subject to such application for a challenge shall not participate in the resolution.

(3) If the status of a committee member falls within any of the grounds for exclusion under paragraph (1), he or she shall voluntarily abstain from participating in the proceedings of deliberation and resolution on the relevant agenda item.

[This Article Added on Dec. 15, 2015]

Article 23-3(Dismissal of committee member) #

Where a member under Article 25(6) of the Act falls under any of the following cases, the chairperson may dismiss such member:

1. Where a member is no longer capable of performing duties due to physical or mental disability;

2. Where a member has committed a misdeed regarding his or her duties;

3. Where a member is deemed inappropriate as a member due to delinquency of duties, injury to dignity, or any other grounds;

4. Where a member falling under any of the subparagraphs of Article 23-2(1) fails to refrain from deliberation or resolution;

5. Where a member expresses difficulty performing his or her duties.

[This Article Added on Dec. 15, 2015]

Article 24(Operation of Committee) #

(1) The chairperson shall represent the Committee and exercise overall control over the Committee's affairs.

(2) The vice chairperson shall assist the chairperson, and shall act on behalf of the chairperson if the chairperson is unable to perform his or her duties due to any unavoidable cause.

(3) The chairperson shall convene meetings of the Committee and preside over such meetings.

(4) Where the chairperson convenes a meeting of the Committee, he or she shall notify in writing each member of the date, venue, and objectives, etc. of the meeting by no later than three days prior to the meeting; provided, the same shall not apply to an emergency.

(5) The Committee's meetings shall open with the attendance of a majority of all incumbent members and its resolution shall require the concurring vote of a majority of those present.

(6) The Committee shall have one secretary in charge of administrative affairs and the secretary shall be appointed by the Minister of Trade, Industry and Resources from among public officials belonging to divisions prescribed by Ministerial Decree of the Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(7) Details necessary for the operation, etc. of the Committee, other than those prescribed in paragraphs (1) through (6) shall be determined by the chairperson upon resolution by the Committee.

[This Article Wholly Amended on Jul. 30, 2009]

Article 25(Hearing of opinion) #

(1) If necessary, the public official of any central administrative agency, who is not an ex officio member may attend any meeting of the Committee to state his or her opinion. <Amended on Aug. 5, 2011>

(2) If deemed necessary for deliberation, the Committee may have the Mayor/Do Governor having jurisdiction over the relevant free economic zone and any other interested person appear at a meeting of the Committee to hear his or her opinion.

(3) A Mayor/Do Governor may attend a meeting of the Committee to state his or her opinion on the designation, operation, etc. of the relevant free economic zone.

[This Article Wholly Amended on Jul. 30, 2009]

Article 26(Allowances) #

Members and relevant experts who appear at any meeting of the Committee may be paid allowances within budgetary limits; provided, the same shall not apply to public officials who appear at any meeting of the Committee in direct connection with their official duties.

[This Article Wholly Amended on Jul. 30, 2009]

Article 27(Duties) #

(1) If deemed necessary to perform duties concerning the designation and operation of free economic zones, the Minister of Trade, Industry and Resources may request relevant administrative agencies, relevant institutions, organizations, etc. to dispatch their public officials, executive officers or employees. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 30, 2009]

Article 27-2(Exclusion from application of special cases concerning handling of administrative affairs) #

(1) "Unit districts for development projects whose development and investment levels exceed the standards prescribed by Presidential Decree" in the main clause of Article 27(2) of the Act means unit districts for development projects where buildings approved for use under Article 22 of the Building Act are located in at least 90/100 of their prepared land area (excluding land for public facilities in accordance with the classification of a prepared land by usage referred to in Appendix 1) due to development and investment in progress.

(2) "Adjoining unit districts for development projects prescribed by Presidential Decree" in the proviso of Article 27(2) of the Act means unit districts for development projects located in the same Si/Gun/Gu (referring to an autonomous Gu) publicly notified by the Minister of Trade, Industry and Resources as he or she deems it necessary to make a blanket request to exclude from application of special cases concerning the handling of administrative affairs in order to promote an efficient development of a free economic zone and convenience of its residents' lives. <Amended on Oct. 1, 2025>

(3) Where the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) requests exclusion from application of special cases concerning the handling of administrative affairs under Article 27(2) of the Act, he or she shall prepare and submit to the Minister of Trade, Industry and Resources a written request containing the following information: <Amended on Oct. 1, 2025>

1. Current status including the name, location, and area of the relevant unit district of a development project;

2. Current status including the name, location, and area of a free economic zone in which the relevant unit district of a development project is located;

3. Current status of approval of the use of buildings existing in the prepared land under paragraph (1);

4. Outcomes of consultation with the competent Mayor/Do Governor;

5. Other matters deemed necessary by the Minister of Trade, Industry and Resources to determine whether to exclude from application of special cases concerning the handling of administrative affairs.

(4) Where the Minister of Trade, Industry and Resources receives a written request under paragraph (3), he or she shall undergo deliberation and resolution by the Committee within three months after the receipt of the written request and notify the head of a Si/Gun/Gu of such result, unless there is a compelling reason not to do so. <Amended on Oct. 1, 2025>

Article 28(Administrative bodies in free economic zones) #

(1) Deleted. <Sep. 14, 2021>

(2) Where a Mayor/Do Governor intends to establish a free economic zone authority, he or she shall determine the timing for establishing such free economic zone authority, taking into account the level of development of the relevant free economic zone, administrative demand arising in the relevant free economic zone, the increase in the number of permanent residents in the relevant free economic zone, etc. <Amended on Aug. 5, 2011>

(3) Where a Mayor/Do Governor intends to appoint the commissioner of a free economic zone authority under Article 27-2(2) of the Act (hereinafter referred to as "commissioner of a free economic zone authority"), he or she shall give priority to considering any of the following persons: <Amended on Aug. 5, 2011; Sep. 14, 2021>

1. Any person who has experience in taking charge of duties related to free economic zones;

2. Any person who has experience in developing cities, logistics, or social infrastructure;

3. Any person who has experience in inducing foreign-invested enterprises or foreign capital;

4. Any person who has experience in fostering and supporting new industries and enterprises, identifying tasks for regulatory innovation, etc.

(4) Where necessary to foster and support development projects and new industries and enterprises and to identify tasks for regulatory innovation in a free economic zone, the commissioner of the free economic zone authority may request relevant administrative agencies and related organizations and groups to dispatch public officials or their executive officers and employees. <Amended on Aug. 5, 2011; Sep. 14, 2021>

(5) The Minister of Trade, Industry and Resources may subsidize following expenses to a free economic zone authority pursuant to Article 27-2(5) of the Act: <Added on Aug. 5, 2011; Mar. 23, 2013; Nov. 20, 2013; Sep. 14, 2021; Oct. 1, 2025>

1. Expenses incurred in operating a free economic zone authority, expenses incurred in inducing investment from domestic and foreign enterprises, expenses incurred in conducting research and development, etc.;

2. Personnel expenses for public officials in contractual services under Article 27-5(7) of the Act.

[This Article Wholly Amended on Jul. 30, 2009]

Article 28-2(Delegation of appointment authority) #

(1) A Mayor/Do Governor shall delegate the following authority to the commissioner of a free economic zone authority under Article 27-5(1) of the Act: <Amended on Aug. 5, 2011; Nov. 20, 2013; Sep. 14, 2021>

1. Rights to transfer public officials in general services belonging to free economic zone authorities;

2. Rights to appoint public officials in technical and contractual services belonging to free economic zone authorities.

(2) A Mayor/Do Governor shall have a prior consultation with the commissioner of a free economic zone authority before transferring or dispatching public officials in general services under his or her control to the free economic zone authority. <Amended on Aug. 5, 2011>

[This Article Wholly Amended on Jul. 30, 2009]

Article 28-3(Accounting and finance of free economic zone authorities) #

(1) The revenues and expenses of a free economic zone authority under Article 27-7(1) of the Act shall be as follows: <Amended on Mar. 23, 2013; Sep. 14, 2021; Oct. 1, 2025>

1. Revenues of a free economic zone authority:

a. Subsidies provided by the State in accordance with the Act;

b. Shares borne by a local government or transferred money from general accounts;

c. Project profits, etc. accrued in the course of executing a project for a free economic zone, such as revenues from the sales of land, etc.;

d. Rents of public facilities located in a free economic zone and other use fees, charges, revenues, etc.;

e. Other items the Minister of Trade, Industry and Resources deems necessary to be included in the revenues for the promotion of a free economic zone;

2. Expenses of a free economic zone authority:

a. Project expenses necessary to develop a free economic zone under the Act and to induce investment, such as expenses incurred in installing infrastructure, etc.;

b. Operating expenses of a free economic zone authority;

c. Other expenses the Mayor/Do Governor deems necessary to be included in the expenses for the promotion of a free economic zone.

(2) Detailed methods of management and other matters necessary for the accounting and finance under paragraph (1) shall be determined according to the following classifications: <Amended on Dec. 16, 2021>

1. A free economic zone established as a branch office under Article 128 of the Local Autonomy Act: Ordinance of a City/Do;

2. A free economic zone authority established as a local government association under Article 176 of the Local Autonomy Act: Rules of a local government association under Article 179 of the Local Autonomy Act.

[This Article Added on Aug. 5, 2011]

Article 29(Functions of ombudsmen) #

(1) Each ombudsman provided for in Article 28(1) of the Act shall be commissioned by a Mayor/Do Governor from among persons who have profound experience in the business of foreign investment and are proficient in foreign languages.

(2) The term of office for each ombudsman shall be three years, who may be reappointed three times only.

(3) An ombudsman shall perform the following duties: <Amended on Sep. 14, 2021>

1. Support for resolving difficulties faced by foreign-invested enterprises that move into a free economic zone (hereafter referred to as "foreign-invested enterprises located in a free economic zone" in this Article) and foreigners;

2. Gathering information on managerial difficulties facing foreign-invested enterprises located in a free economic zone;

3. Gathering information on problems associated with living conditions facing foreigners located in a free economic zone;

4. Devising ways to solve problems referred to in subparagraphs 2 and 3, and proposing them to relevant administrative agencies.

(4) Each ombudsman may request relevant administrative agencies or organizations for cooperation in performing his or her duties under paragraph (3) and in such cases, the relevant administrative agencies or organizations shall, upon receipt of such request, notify the ombudsman of their opinions within seven days from the date of the request.

(5) Each ombudsman shall closely cooperate with foreign-investment ombudsmen provided for in Article 15-2 of the Foreign Investment Promotion Act to efficiently solve the problems facing foreign-invested enterprises located in a free economic zone.

(6) Each ombudsman shall analyze, each quarter, his or her track records of resolving difficulties and report the outcomes thereof to the Committee within one month after completion of each quarter.

[This Article Wholly Amended on Jul. 30, 2009]

Article 29-2(Assessment of outcomes of projects by free economic zone) #

To assess the outcomes of projects in each free economic zone pursuant to Article 28-3 of the Act, the Minister of Trade, Industry and Resources shall determine guidelines for detailed matters, such as criteria for, timing of, methods, etc. of assessment, following deliberation and resolution thereon by the Committee. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Added on Aug. 5, 2011]

Article 30 #

Deleted. <Sep. 14, 2021>

Article 31(Delegation of authority) #

(1) The heads of central administrative agencies shall delegate the following authority to Mayors/Do Governors under Article 30(1) of the Act: <Amended on Aug. 5, 2011; Sep. 14, 2021>

1. Modification of minor matters under Article 7(4) of the Act among the modifications of development plans for free economic zones under Article 7(1) or (2) of the Act;

2. Public notice in the Official Gazette of the details of modification under Article 4(8) of the Act which is applied mutatis mutandis by Article 7(3) of the Act (limited to the modification of minor matters under subparagraph 1);

3. Deleted; <Aug. 5, 2011>

4. Deleted; <Aug. 5, 2011>

5. Deleted; <Aug. 5, 2011>

6. Deleted; <Aug. 5, 2011>

7. Deleted; <Sep. 8, 2020>

8. Deleted; <Aug. 5, 2011>

9. Deleted; <Aug. 5, 2011>

10. Deleted. <Sep. 24, 2021>

(2) When a Mayor/Do Governor has performed affairs delegated pursuant to paragraph (1)2, he or she shall send copies of relevant documents to the Minister of Trade, Industry and Resources within 10 days from the date he or she performs such affairs. <Amended on Aug. 5, 2011; Mar. 23, 2013; May 20, 2025; Oct. 1, 2025>

(3) Each Mayor/Do Governor shall delegate the following authority to the commissioner of a free economic zone authority pursuant to Article 30(3) of the Act: <Amended on Aug. 5, 2011; Mar. 23, 2013; Sep. 14, 2021; May 20, 2025; Oct. 1, 2025>

1. Request for modification of a development plan for a free economic zone under the latter part of Article 7(1) of the Act;

2. A route of request for modification of a development plan by a development project operator under Article 7(2) of the Act;

3. Consultation on the development of an area for which a development plan for a free economic zone has yet to be established under the proviso of Article 7-3 of the Act;

4. Consultation on an area adjoining a free economic zone under Article 7-4 of the Act;

5. Permission for the alteration in the form and quality of land, the construction of a building, the installation of structures, etc. under Article 7-5(1) of the Act;

Article 31-2(Processing of personally identifiable information) #

If unavoidable for performing affairs concerning the opening of a foreign medical institution in a free economic zone under Article 23 (1) of the Act, the Minister of Health and Welfare may process data containing resident registration numbers or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act.

[This Article Added on Mar. 27, 2017]

Article 32(Re-examination of regulation) #

(1) The Minister of Trade, Industry and Resources shall examine the appropriateness of the following matters every three years from each base date (referring to the period that ends on the day before the base date of every third year), and take measures for improvement, etc.: <Amended on Dec. 9, 2014; Sep. 14, 2021; Oct. 1, 2025>

1. Minor matters of development plans for free economic zones under Article 5-2(4): January 1, 2014;

2. Acts required to obtain permission or permission for change in districts of a development project under Article 6-2: January 1, 2014;

3. Scope of development project operators under Article 6-6: January 1, 2014;

4. Ratio of re-investment of development gains under Article 11-5: January 1, 2014;

5. Requirements for establishment of foreign medical institutions under Article 20-2: January 1, 2014;

6. Requirements for permission for casino business for foreign investors under Article 20-4: January 1, 2014;

7. Deleted. <Sep. 14, 2021>

(2) The Minister of Trade, Industry and Resources shall examine the appropriateness of the following matters every 2 years from each base date (referring to the period that ends on the day before the base date of every second year), and take measures for improvement, etc.: <Amended on Dec. 9, 2014; Oct. 1, 2025>

1. Matters to be included in an application for approval for implementation plans under Article 8 and documents attached thereto: January 1, 2015;

2. Procedures for granting approval for implementation plans under Article 9: January 1, 2015;

3. Matters subject to consultations in granting approval for implementation plans under Article 9-2: January 1, 2015.

[This Article Added on Dec. 30, 2013]

Article 33(Imposition and collection of administrative fines) #

Criteria for imposing administrative fines under Article 35(2) of the Act shall be as specified in Appendix 2. <Amended on Oct. 10, 2018>

[This Article Added on Aug. 5, 2011]