SPECIAL ACT ON THE DEVELOPMENT OF TRADITIONAL MARKETS AND SHOPPING DISTRICTS

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SPECIAL ACT ON THE DEVELOPMENT OF TRADITIONAL MARKETS AND SHOPPING DISTRICTS — 법갈피

Article 13(Designation and development of culture and tourism markets) #

(1) The head of each Si/Gun/Gu may designate culture and tourism markets directly or at the request of persons representing merchants' organizations under the approval of the Mayor/Do Governor. In such cases, the Mayor/Do Governor shall determine approval or disapproval through consulting with the Minister of SMEs and Startups and the Minister of Culture, Sports and Tourism. <Amended on Jul. 26, 2017>

(2) The head of each Si/Gun/Gu shall, when completing to designate a culture and tourism market under paragraph (1), submit the details of such designation, and development plan to the Minister of SMEs and Startups and to the Mayor/Do Governor. <Amended on Jul. 26, 2017>

(3) The State and local governments may support the following matters for the development of culture and tourism markets designated under paragraph (1): <Amended on Jul. 26, 2017>

1. Installation and improvement of public facilities and convenience facilities which are necessary for the development of culture and tourism markets;

2. Development of and installation of sales facilities for souvenirs and well-known local products;

3. Holding of and public relations for festivals, events, cultural performances and cultural environments reflecting local characteristics;

4. Development of and public relations for products and cultural/tourism contents in connection with markets, shopping districts and local cultural and tourism resources;

5. Education for merchants and merchants' organizations of culture and tourism markets;

6. Other matters the Minister of SMEs and Startups deems necessary for the development of culture and tourism markets.

(4) Procedures for application for culture and tourism markets, objects of designation and procedure for designation and other necessary matters shall be prescribed by municipal ordinance under the conditions prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Jul. 26, 2017>

[This Article Wholly Amended on May 28, 2013]

Article 14(Opening of temporary markets) #

(1) Notwithstanding the provisions of Article 14 of the Distribution Industry Development Act, the head of each Si/Gun/Gu may, when falling under any of the following subparagraphs, open a market to function as a market for a certain period of time (hereinafter referred to as "temporary market"); provided, in cases where a temporary market has an area larger than the area prescribed by Presidential Decree, the person who intends to open such a temporary market shall report it to the head of relevant Si/Gun/Gu: <Amended on Dec. 11, 2012>

1. Where necessary for the temporary business of shop-occupying merchants during the period of a market improvement project pursuant to Article 49 (1) 1;

2. Where opening a market is urgently needed because an existing market is unable to function normally due to a natural disaster or a situation similar thereto;

3. When necessary for local residents, farmers and fishermen in neighboring areas, merchants of markets and shopping districts, or public institutions or organizations to sell, purchase or exchange agricultural, livestock and fishery products, living goods, used goods, etc. on a specific date;

4. When a selling place is needed for the spectators, tourists, etc. who are participating in a large-scale event;

5. When a selling place is needed for the increase of income of the low-income class, the unemployed, the elderly, farmers, fishermen, etc.

(2) The head of a Si/Gun/Gu shall notify the reporting person of receipt of a report filed under paragraph (1), within five days after receipt thereof. <Added on Jun. 12, 2018>

(3) Where the head of a Si/Gun/Gu fails to notify the reporting person of receipt of a report or of an extension of the processing period under statutes or regulations related to treatment of civil petitions within a period specified in paragraph (2), the report shall be deemed received on the day following the expiry date of such period (referring to the relevant processing period if the processing period is extended or re-extended pursuant to statutes or regulations related to treatment of civil petitions). <Added on Jun. 12, 2018>

(4) When necessary, the head of each Si/Gun/Gu may provide support for the opening and management of temporary markets, such as requesting the State or Mayors/Do Governors to permit the use of state-owned land or public land or allowing the temporary use of public property, public places, places where there is no risk of interfering with traffics, etc. which are under his or her control. <Amended on Jun. 12, 2018>

(5) Procedures for reporting, guidelines for opening, and operation and management of temporary markets and other necessary matters shall be prescribed by ordinance of each Si/Gun/Gu under the conditions prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Dec. 11, 2012; Mar. 23, 2013; Jul. 26, 2017; Jun. 12, 2018>

[This Article Wholly Amended on Jun. 8, 2010]

Article 16(Fostering of young merchants) #

(1) To foster the young merchants meeting the standards prescribed by Presidential Decree, the State and local governments may promote the following projects for young merchants: <Amended on Jul. 26, 2017; Jan. 21, 2025>

1. Supporting rental fees and improvement of shops after starting-up of business;

2. Supporting education/consultation for starting-up of business, and operating an experience program for starting-up of business;

3. Discovering/awarding and advertising the successful cases of starting-up of business;

4. Providing support to young merchants in systemization and collaboration;

5. Other projects publicly announced by the Minister of SMEs and Startups as deemed necessary to foster young merchants.

(2) The Minister of SMEs and Startups may designate a specialized agency to efficiently implement the projects listed in paragraph (1). <Added on Jan. 21, 2025>

(3) A specialized agency designated under paragraph (2) (hereafter referred to as "specialized agency" in this Article and Article 71) shall perform the following duties: <Added on Jan. 21, 2025>

1. Projects entrusted by the Minister of SMEs and Startups among the projects listed in the subparagraphs of paragraph (1);

2. Support for the projects listed in the subparagraphs of paragraph (1).

(4) The Minister of SMEs and Startups may grant a specialized agency a subsidy, within the budget, to help cover the expenses incurred in its performance of duties. <Added on Jan. 21, 2025>

(5) The Minister of SMEs and Startups may revoke the designation of a specialized agency in any of the following cases; provided, where subparagraph 1 is applicable, he or she shall revoke such designation: <Added on Jan. 21, 2025>

1. Where it has been designated as a specialized agency by fraud or other improper means;

2. Where it no longer meets the designation standards under paragraph (7).

(6) Where the Minister of SMEs and Startups intends to revoke the designation of a specialized agency pursuant to paragraph (5), he or she shall hold a hearing. <Added on Jan. 21, 2025>

(7) Matters necessary for the designation and operation of a specialized agency, the revocation of designation, etc. shall be prescribed by Presidential Decree. <Added on Jan. 21, 2025>

[This Article Added on Dec. 2, 2016]

Article 17-2(Special cases concerning permission to use or profit from public property and lease thereof) #

(1) Notwithstanding Articles 21 and 31 of the Public Property and Commodity Management Act, the head of a local government may determine the period for permission to use or profit from the local government-owned land and fixtures thereon or the lease period therefor as less than 10 years, for persons who intend to directly run any business at a market or shopping district.

(2) Where a person who has been granted permission to use or profit or a lease pursuant to paragraph (1) agrees on the conditions for such permission to use or profit or for the lease, the head of the competent local government may renew such permission to use or profit or the relevant lease contract on a five-yearly basis. In such cases, matters concerning the number of renewals, conditions, etc. shall be determined by ordinance of the relevant local government.

(3) Where the head of a local government has granted permission to use or profit or a lease under a negotiated contract, he or she may renew such permission to use or profit or lease contract before expiration of the period for such permission to use or profit or the lease period. In such cases, the renewal period shall not exceed the period for permission to use or profit or the lease period referred to in paragraph (1) for each renewal, and matters concerning the renewal period, conditions, etc. shall be determined by ordinance of the relevant local government.

(4) A person who intends to renew permission to use or profit or a person who intends to renew a lease contract pursuant to paragraph (2) or (3), shall request the head of a local government to renew such permission or contract one month before the expiration of the period for permission to use or profit or the lease period.

(5) No person who has been granted permission to use or profit pursuant to paragraphs (1) through (3) (excluding persons entrusted with management of administrative property pursuant to Article 27 of the Public Property and Commodity Management Act) shall allow another person to use or profit from relevant administrative property; and no person who has been granted a lease pursuant to paragraph (1) through (3) shall sublease relevant general property leased.

(6) Where a person who has been granted permission to use or profit or a lease pursuant to paragraphs (1) through (3) violates paragraph (5), the head of the competent local government may revoke such permission to use or profit or terminate the relevant lease contract.

[This Article Added on Dec. 11, 2018]

Article 18(Reduction of fees for State and public land) #

(1) The State and local governments may reduce the use fees, lease fees or occupation fees (hereafter referred to as "fees" in this Article) as described in the following subparagraphs when a public facility under paragraph (2) (limited only to those installed through facility modernization projects under Article 20 in cases of shopping districts and business district revitalization zones) is installed on State-owned property under Article 5 of the State Property Act, on public property under Article 4 of the Public Property and Commodity Management Act, on roads under subparagraph 1 of Article 2 of the Road Act, on rivers under Article 2 of the River Act, or on public waters under Article 2 of the Public Waters Management and Reclamation Act (hereinafter referred to as "state and public land") which are located in a market, etc. under the permission of the government agency in charge: <Amended on May 28, 2013; Jan. 14, 2014; Nov. 28, 2017>

1. Fees, etc. for the use of State property and public property: The reduction rate prescribed by Presidential Decree, notwithstanding the State Property Act and the Public Property and Commodity Management Act;

2. Fees, etc. for the use of roads, rivers and public waters: The reduction rate prescribed by ordinance of each local government, notwithstanding the Road Act, River Act and Public Waters Management and Reclamation Act.

(2) The facilities subject to the reduction of fees, etc. for the use of state and public land pursuant to paragraph (1) shall be the following facilities, which are used by merchants or customers in common:

1. Facilities to promote customers' convenience, such as parking lots, access roads, passages, toilets and customer information centers;

2. Facilities used commonly by merchants, such as rain canopies, common warehouses, logistics centers, merchant education facilities and the offices of merchants' associations under Article 65;

3. Other public facilities prescribed by Presidential Decree.

[This Article Wholly Amended on Jun. 8, 2010]

Article 20(Support for commercial infrastructure modernization projects) #

(1) The State and local governments may provide assistance or subsidies to cover the expenses for the following projects for modernizing commercial infrastructure, pursued by the merchants' organizations of markets or market managers under Article 67 (hereinafter referred to as "facility modernization project") within the budget. In such cases, assistance shall be provided for any project to install or renovate a parking lot, rain canopy, and safety facilities in the order of priority determined comprehensively considering the percentage of consent obtained for project application under paragraph (2), the number of shops and merchants, results of safety inspection, etc. for each market, etc.: <Amended on Mar. 30, 2011; Feb. 3, 2015; Dec. 2, 2016; Aug. 14, 2018; Feb. 11, 2020; Feb. 20, 2024>

1. Commercial facilities: Renovation and repairing of buildings, facilities, etc. which are directly used for business;

2. Public facilities: Installation, renovation, or repair of rain canopies, warehouses, merchants education facilities, safety facilities for electricity, gas, fire, etc. and creation of tourist (theme) streets, storm, flood, etc., which are used by merchants or customers in common;

3. Customer convenience facilities: Installation, expansion, repairing, etc. of parking lots, access roads, toilets, customer information centers, etc. mostly used by customers;

3-2. Installation, expansion, repairing, etc. of convenience facilities referred to in subparagraph 2 of Article 2 of the Act on Guarantee of Promotion of Convenience of Persons with Disabilities, Senior Citizens, Pregnant Women and Nursing Mothers;

3-3. Advertisement facilities: installation, renovation, or repair of the facilities for posting, electric signs, broadcasting, etc. to be established for the purpose of advertising to customers;

4. New construction, remodeling, etc. of facilities under subparagraphs 1 through 3, 3-2, and 3-3 which pertain to public markets.

(2) The beneficiaries of support for facility modernization projects, limitation of support for each project, merchants for project application, percentage of consent obtained from the owners of land or buildings and from the superficiaries having domain of use thereof, procedures, post-management and other necessary matters shall be prescribed by Presidential Decree. <Amended on Mar. 29, 2016>

(3) The State and local governments may support places satisfying criteria prescribed by Presidential Decree from among those not recognized as traditional markets for installation, renovation, or repair of safety facilities, etc. for electricity, gas, fire, storm, flood, etc. among public facilities referred to in paragraph (1) 2. <Added on Dec. 11, 2012; Feb. 3, 2015; Feb. 20, 2024>

(4) Where the State and local governments support/assist a facility modernization project, they may preferentially treat a traditional market if the percentage of the shops within the traditional market having subscribed to the fire cooperative for traditional markets under Article 24-2 (1) is at least the standard determined and publicly notified by the Minister of SMEs and Startups. <Added on Mar. 29, 2016; Jul. 26, 2017>

(5) Where a merchants' organization or a market manager obtains the consent under each of the following to receive financial support/assistance required for installing rain canopies, among the projects under paragraph (1), the merchants’ organization or market manager shall be deemed to have received all the written approvals of land use necessary for the building permit/report of a temporary building pursuant to Article 20 of the Building Act: <Added on Mar. 29, 2016>

1. Consent of at least 4/5 of the merchants of the relevant market;

2. Consent of at least 9/10 of the owners and the superficiaries having domain of use of the land or buildings located in the areas where rain canopies are to be installed.

(6) Where the Government and local governments support or subsidize projects for installing, improving, or repairing rain canopies and safety facilities among public facilities under paragraph (1) 2, they shall endeavor to ensure fire safety by using facilities materials with a flame retardant rating equal to or higher than that prescribed by the Presidential Decree. <Added on Oct. 31, 2023>

(7) Where the heads of Sis/Guns/Gus support or subsidize projects for installing, improving, or repairing rain canopies and safety facilities among public facilities under paragraph (1) 2, they shall verify whether facilities materials with a flame retardant rating equal to or higher than that prescribed by the Presidential Decree are used under paragraph (6). <Added on Oct. 31, 2023>

[This Article Wholly Amended on Jun. 8, 2010]

Article 20-2(Inspection of safety facilities) #

(1) The State and local governments shall conduct an inspection of safety facilities related to electricity, gas, fire, storm, flood, etc., rain canopies, and other similar facilities, to prevent fire, storm and flood and ensure safety (including places that are not recognized as traditional market places under Article 20 (3) but satisfying the standards prescribed by Presidential Decree), as prescribed by Presidential Decree; provided, this shall not apply to cases where an inspection, examination, or investigation is conducted pursuant to the Electric Utility Act, the Electrical Safety Management Act, the Urban Gas Business Act, the Safety Control and Business of Liquefied Petroleum Gas Act, the Act on Fire Prevention and Safety Control, or the Countermeasures against Natural Disasters Act. <Amended on Dec. 2, 2016; Aug. 14, 2018; Mar. 31, 2020; Nov. 30, 2021; Feb. 20, 2024>

(2) The State and local governments may entrust the inspections under paragraph (1) to the institutions having relevant expertise, such as the Korea Electrical Safety Corporation under Article 30 of the Electrical Safety Management Act, the Korea Gas Safety Corporation under Article 28 of the High-Pressure Gas Safety Control Act, the Korea Fire Safety Association under Article 40 of the Framework Act on Firefighting Services, the Korea Authority of Land and Infrastructure Safety under the Act on the Korea Authority of Land and Infrastructure Safety, the Korean Fire Protection Association under Article 11 of the Act on the Indemnification for Fire-Caused Loss and the Purchase of Insurance Policies, a disaster management agency under subparagraph 5 (b) of the Framework Act on the Management of Disasters and Safety, or similar authority. <Amended on Dec. 2, 2016; Jan. 17, 2017; Dec. 26, 2017; Dec. 11, 2018; Mar. 31, 2020; Jun. 9, 2020; Feb. 20, 2024>

(3) When the State and local governments have conducted an inspection of safety facilities, etc. in a market, they may disclose the results of the inspection to the public. The scope and method of disclosure shall be prescribed by Presidential Decree. <Added on Feb. 11, 2020>

[This Article Added on Feb. 3, 2015]

[Title Amended on Dec. 2, 2016]

Article 26-6(Revocation of registration of member shops) #

(1) When a member shop falls under any of the following subparagraphs, the Minister of SMEs and Startups may revoke the registration of the relevant member shop or suspend support under this Act for up to three years as prescribed by Presidential Decree; provided, he or she must revoke the registration in cases falling under subparagraph 1 or 2: <Amended on Jul. 26, 2017; Dec. 11, 2018; Feb. 11, 2020>

1. When the member shop is registered by false or other improper means;

2. When the member shop engages in a type of business of which registration is restricted under Article 26-4 (2);

3. When the member shop conducts acts violating Article 26-5.

(2) To revoke the registration of a member shop pursuant to paragraph (1), the Minister of SMEs and Startups shall hold a hearing. <Added on Dec. 11, 2018>

(3) No person whose registration is revoked under paragraph (1) 1 or 3 shall be registered as a member shop for a period prescribed by Presidential Decree within up to one year from the date the registration is revoked. <Added on Feb. 11, 2020>

(4) When any member shop falls under any of the following subparagraphs, the Minister of SMEs and Startups may cancel the registration of the relevant member shop: <Added on Apr. 18, 2023>

1. Where the member shop relocates to outside the market, etc. to which it belonged;

2. Where the validity period of registration of the member shop under Article 26-4 (5) expires;

3. Where a report on business closure under Article 8 (8) of the Value-Added Tax Act has been filed or the head of the competent tax office has canceled business registration under paragraph (9) of that Article.

(5) The Minister of SMEs and Startups may request the Commissioner of the National Tax Service to provide the following data and information to perform the affairs under paragraph (4); in such cases, the Commissioner of the National Tax Service shall comply therewith, unless there is a compelling reason not to do so: <Added on Apr. 18, 2023>

1. Data on business registration under Article 8 (1) and (8) of the Value-Added Tax Act (referring to data on business opening date, business suspension date, business closure date, and the location of a place of business);

2. Data on business registration under Article 168 (1) and (3) of the Income Tax Act (referring to data on business opening date, business suspension date, business closure date, and the location of a place of business).

(6) The procedures for the cancellation of registration under paragraph (4) and other necessary matters shall be prescribed by Presidential Decree. <Added on Apr. 18, 2023>

[This Article Added on May 28, 2013]

[Title Amended on Feb. 11, 2020]

Article 31(Markets subject to development of market improvement project) #

(1) A market improvement project shall be implemented for any of the following places: <Amended on Mar. 29, 2016>

1. Markets;

2. Notwithstanding the proviso to paragraph (2), the markets permitted pursuant to Article 6 of the former Market Act (referring to the Act repealed by Act No. 3896) or Article 6 of the former Wholesale and Retail Trade Promotion Act (referring to the Act repealed by Act No. 5327) that have lost their market permit or closed business after maintaining their market function for at least five years;

3. Places which were once selected and have lost status as districts for market redevelopment and rebuilding projects or market improvement projects pursuant to Article 6 of the previous Act on Special Measures for Supporting the Structural Improvement and Managerial Stabilization of Small and Medium Enterprises (referring to the Act repealed by Act No. 6639), Article 12 of the previous Act on Special Measures for the Structural Improvement of Small and Medium Enterprises and Vitalization of Customary Markets (referring to the Act repealed by Act No. 7235) or Article 18 of the previous Special Act on the Nurturing of Traditional Markets (referring to the Act before wholly amended by Act No. 7945).

(2) Any market for which a market improvement project is to be implemented pursuant to paragraph (1) shall fulfill the following requirements; provided, the area of state and public land (excluding roads under subparagraph 1 of Article 2 of the Road Act, rivers under Article 2 of the River Act, and public waters under Article 2 of the Public Waters Management and Reclamation Act; hereinafter the same shall apply in Articles 41 and 47) in a market improvement project zone shall be not less than one half the area of the entire land in size: <Amended on Dec. 11, 2012; Jan. 14, 2014; Nov. 28, 2017>

1. A market which is unsafe or uncompetitive because its commercial infrastructure is old and in a bad condition;

2. A market which is unable to function normally because its commercial infrastructure is destroyed by fire, flood, storm, heavy snow or other natural disasters or is unable to recover its function even with repairing;

3. Other markets that the head of a Si/Gun/Gu deems necessary for the revitalization of business districts or for urban development.

(3) Notwithstanding the provisions of paragraph (2), markets belonging to an urban renewal acceleration district designated pursuant to Article 5 of the Special Act on the Promotion of Urban Renewal, for which the head of relevant Si/Gun/Gu deems it difficult to promote a market improvement project and other markets prescribed by Presidential Decree to restrict market improvement projects therefor shall be excluded from market improvement projects.

[This Article Wholly Amended on Jun. 8, 2010]

Article 33(Formulation of market improvement project promotion plan) #

(1) Any person who intends to obtain approval for a market improvement project promotion plan shall formulate a market improvement project promotion plan (hereinafter referred to as "project promotion plan") in which the following matters are included and file an application with the head of relevant Si/Gun/Gu for a recommendation for approval for the project promotion plan: <Amended on Apr. 14, 2011>

1. Scope of the market improvement zone;

2. Necessity for the market improvement project;

3. Necessary measures to be taken with respect to the following matters:

(a) Determination or determination for modification on City/Gun planning facilities in City/Gun management planning under subparagraph 4 of Article 2 of the National Land Planning and Utilization Act;

(b) Determination or determination for modification on district-unit planning under subparagraph 5 of Article 2 of the National Land Planning and Utilization Act;

(c) Change of such specific-use areas as residential area and industrial area under Article 36 (1) 1 (a) and (c) of the National Land Planning and Utilization Act to the specific-use areas prescribed by Presidential Decree;

4. Measures for the protection of shop occupants under Article 49 (1) and (6);

5. Other matters prescribed by Presidential Decree as necessary for the examination of the project promotion plan.

(2) Any person who is able to file an application for a recommendation for approval for a project promotion plan pursuant to paragraph (1) shall be any of the following persons:

1. A landowner, etc. (limited only to the cases where individuals or corporations hold an exclusive ownership);

2. A promotion committee;

3. A corporation established by landowners, etc. to promote a market improvement project (hereinafter referred to as "market improvement project corporation");

4. The head of a Si/Gun/Gu (limited only to cases where the head of a Si/Gun/Gu directly develops a project pursuant to Articles 41 (3) and 47 (1));

5. The Korea Land and Housing Corporation established pursuant to Article 2 of the Korea Land and Housing Corporation Act (hereinafter referred to as the "Korea Land and Housing Corporation) or a local public corporation established pursuant to Article 49 of the Local Public Corporation Act (hereinafter referred to as "local public corporation") ; provided, the same shall apply only to cases set forth in Article 41 (3).

(3) Procedures for and details of the project promotion plan, documents to be submitted to Si/Gun/Gu and other necessary matters shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Jun. 8, 2010]

Article 37(Approval for project promotion plan) #

(1) With respect to the project promotion plans for which the head of a Si/Gun/Gu has applied for approval pursuant to Article 35, every Mayor/Do Governor shall determine upon approval or disapproval therefor through the deliberation of the Deliberation Committee.

(2) Notwithstanding the provisions of Article 113 of the National Land Planning and Utilization Act, the procedure for the deliberation of the City/Do urban planning committee shall not apply to the matters deliberated on by the Deliberation Committee pursuant to paragraph (1); provided, the same shall not apply to cases where a market improvement zone falls under Articles 8, 9 and 59 of the National Land Planning and Utilization Act.

(3) When a Mayor/Do Governor grants approval for a project promotion plan, the following matters shall be included therein:

1. Scope of the market improvement zone;

2. Matters set forth in Article 33 (1) 3;

3. Necessity to restrict building permits under Article 18 (2) of the Building Act.

(4) When a Mayor/Do Governor grants approval for a project promotion plan pursuant to paragraph (1) , he or she shall publish market improvement zones and a summary of the project promotion plan in an official gazette or in an official report. In such cases, the market improvement zones that are approved or published by the Mayor/Do Governor shall be considered to be designated as a rearrangement zone under subparagraph 1 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments.

(5) When the head of each Si/Gun/Gu deems it necessary to modify a project promotion plan due to changes in circumstances after the project promotion plan is approved, he or she shall file an application for approval for change with relevant Mayor/Do Governor, stating the cause of change and attaching related documents; provided, the same shall not apply to cases of changing insignificant matters prescribed by Presidential Decree.

(6) Every Mayor/Do Governor shall, when approving a change under paragraph (5), publish the details thereof in an official gazette or in an official report.

(7) Approval for a project promotion plan, approval for change and the publication thereof, and other necessary matters shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Jun. 8, 2010]

Article 38(Revocation of approval for project promotion plan) #

(1) When a person developing a market improvement project pursuant to Article 41 (1) (hereinafter referred to as "project implementer") requests the revocation of approval for the project promotion plan through the head of relevant Si/Gun/Gu under the consent of a majority of landowners, etc. by reason of changes in circumstances, etc., every Mayor/Do Governor may revoke such approval.

(2) When there is no project implementation authorization issued under Article 39 for a market improvement project within three years from the date on which approval for the project promotion plan is published, such approval shall be invalidated from the date following the date on which three years have elapsed; provided, the same shall not apply to cases where a project implementer obtains approval from relevant Mayor/Do Governor for the suspension of invalidation of approval for the project promotion plan (allowed only once for a period of two years) through filing an application for approval for the suspension of invalidation of approval through the head of relevant Si/Gun/Gu on the grounds of natural disasters, changes in the project promotion plan, etc.

(3) Every Mayor/Do Governor shall, when revoking approval for a project promotion plan pursuant to paragraph (1) or when approval for a project promotion plan is invalidated pursuant to paragraph (2), publish the details thereof in an official gazette or official report.

(4) When approval for a project promotion plan is revoked pursuant to paragraph (1) or when approval for a project promotion plan is invalidated pursuant to paragraph (2), any project promotion plan that is approved by relevant Mayor/Do Governor pursuant to Article 37 (1) shall be considered not to have been approved and the special provisions under Articles 45, and 51 through 53 shall be considered to be revoked.

(5) With respect to the markets for which approval for the project promotion plan is revoked pursuant to paragraph (1) or of which approval for the project promotion plan is invalidated pursuant to paragraph (2), the head of each Si/Gun/Gu shall not apply for approval for a project promotion plan again for two years from the date on which the revocation of approval for or the details of invalidation of the concerned project promotion plan are published.

[This Article Wholly Amended on Jun. 8, 2010]

Article 40(Legal fiction of permission under other Acts) #

(1) When a project implementer obtains an authorization for implementing a project (referring to the time of formulating a project implementation plan in the cases where the head of a Si/Gun/Gu implements an improvement project directly; hereinafter the same shall apply in this Article), it shall be deemed that the following permission, authorization, approval, reporting, examination, consent, designation, cancellation and consultation (hereinafter referred to as "authorization, permission, etc.") are granted or completed for the matters already consulted on between the head of a Si/Gun/Gu and the head of a relevant administrative agency, and when an authorization of implementation of a project is publicly notified, the authorization, permission, etc. under the following relevant statutes shall be deemed publicly notified or publicly announced: <Amended on May 31, 2010; Apr. 14, 2011; Aug. 4, 2011; Jan. 14, 2014; Jun. 3, 2014; Jan. 19, 2016; Jul. 20, 2021; Nov. 30, 2021; Oct. 31, 2023>

1. Registration of housing construction project, etc. under Article 4 of the Housing Act, and approval for project plan under Article 15 of the same Act;

2. Building permit under Article 11 of the Building Act, and building permit or report on the construction of a temporary building under Article 20 of the same Act;

3. Permission for the performance of road construction work under Article 36 of the Road Act, and permission for occupation and use of roads under Article 61 of the same Act;

4. Cancellation of designation of sand arrestation work site under Article 20 of the Work against Land Erosion or Collapse Act;

5. Permission for and consultation on the conversion of farmland under Article 34 of the Farmland Act, and reporting on the conversion of farmland under Article 35 of the same Act;

6. Permission for and reporting on the conversion of mountainous district under Articles 14 and 15 of the Management of Mountainous Districts Act, permission for and reporting on temporary use of mountainous districts under Article 15-2 of the same Act, and permission under Article 36 of the Creation and Management of Forest Resources Act and Article 9 (1) and (2) 1 of the Forest Protection Act; provided, the forests for seed collection and experimental forests under the Creation and Management of Forest Resources Act and forest genetic resources protection area under the Forest Protection Act shall be excluded;

7. Permission for the performance of river works under Article 30 (1) of the River Act, authorization for an action plan of river work under paragraph (5) of the same Article, and permission for the occupation, use, etc. of rivers under Article 33 of the same Act;

8. Authorization for general waterworks business under Article 17 of the Water Supply and Waterworks Installation Act, and authorization for the installation of private-use waterworks or private-use industrial waterworks under Article 52 or 54 of the same Act;

9. Permission for public sewerage business under Article 16 of the Sewerage Act, and reporting on the installation of private sewerage treatment facilities under Article 34 (2) of the same Act;

10. Examination of publication of maps, etc. under Article 15 (4) of the Act on the Establishment and Management of Spatial Data;

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

12. Permission for use and use for profit-making under Article 20 of the Public Property and Commodity Management Act;

13. Reporting on the initiation and change of projects under Article 86 (1) of the Act on the Establishment and Management of Spatial Data;

14. Permission for development activities under Article 56 of the National Land Planning and Utilization Act, designation of City/Gun planning facility project developers under Article 86 of the same Act, and authorization for action plan under Article 88 of the same Act;

15. Consent to building permission and others under Article 6 (1) of the Installation, Maintenance, and Safety Control of Firefighting Systems Act.

(2) Any project implementer who seeks to enforce the legal fiction of authorization, permission, etc. with respect to a market improvement project pursuant to paragraph (1) shall submit related documents prescribed by relevant Acts along with an application for project implementation authorization; provided, in a case where submission of related documents is not available because a constructor is not selected, such documents may be submitted by the deadline set by the head of relevant Si/Gun/Gu.

(3) Where authorization, permission, etc. under other statutes is considered to exist for a market improvement project pursuant to paragraph (1), any fee, etc. to be imposed in return for such authorization, permission, etc. pursuant to relevant statutes or ordinances of Cities/Dos shall not be imposed. <Amended on Oct. 31, 2023>

(4) Except as provided in paragraphs (1) through (3), Articles 24 through 26 of the General Act on Public Administration shall apply mutatis mutandis to the standards, effects, etc. of the legal fiction of authorization, permission, etc. In such cases, "the date of receipt of such request" in the former part of Article 24 (4) of the same Act shall be construed as "the date of receipt of such request (in cases falling under paragraph (2), referring to the date relevant documents are delivered to the head of the administrative agency relevant to authorization, permission, etc.)." <Added on Oct. 31, 2023>

[This Article Wholly Amended on Jun. 8, 2010]

Article 41(Project implementers) #

(1) Every market improvement project shall be developed by those falling under Article 33 (2) 1, and 3 through 5 and market improvement project cooperatives.

(2) Every project implementer may, where necessary, implement a market improvement project jointly with any of the following persons subject to the consent of a majority of cooperative members or landowners, etc.: <Amended on Jan. 19, 2016>

1. The Korea Land and Housing Corporation or local public corporations (hereinafter referred to as the "Korea Land and Housing Corporation, etc.");

2. A construction business operator under Article 9 of the Framework Act on the Construction Industry (hereinafter referred to as "construction business operator");

3. A registered business operator deemed as a construction business operator pursuant to Article 7 (1) of the Housing Act;

4. Other persons as prescribed by Presidential Decree.

(3) Notwithstanding the provisions of paragraph (1), every Mayor/Do Governor may, when any of the following grounds exists, have the head of a Si/Gun/Gu implement a market improvement project directly or have the Korea Land and Housing Corporation, etc. implement a market improvement project: <Amended on Apr. 14, 2011>

1. When a market improvement project needs to be implemented urgently due to natural disasters or other grounds;

2. When it is deemed necessary to implement a market improvement project in concurrence with City/Gun planning or projects related to public facility implemented by the heads of local governments;

3. When a facility is found to have a serious defect as a result of examining the safety of the facility, such as the loss of load-bearing capacity of columns, crossbeams or load-bearing walls;

4. When the state and public land area in the concerned market improvement zone is not less than one half the total land area;

5. When a majority of landowners, etc. of the concerned market improvement zone and the landowners possessing one half the total land area request the Mayor/Do Governor to develop the market improvement project directly.

[This Article Wholly Amended on Jun. 8, 2010]

Article 49(Measures for protection of shop occupants) #

(1) Every project implementer shall, when implementing a market improvement project, formulate and execute measures to protect shop occupants, in which the following matters, etc. shall be included:

1. Providing a temporary market where shop occupants including shop lessees, etc. can continue their business activities during the period of the market improvement project;

2. If providing a temporary market pursuant to subparagraph 1 is difficult, compensating for pecuniary loss resulting from the suspension of business activities;

3. Providing preferential sale of shops, rent discount, shops to be leased, etc. for shop occupants including shop lessees, etc. as at the time the project promotion plan was approved and published, to support them returning to the market after the completion of the market improvement project.

(2) If there is an ongoing dispute between a person who intends to obtain approval for a project promotion plan and shop occupants because the former, when submitting a project promotion plan, creates a business environment unfavorable to the latter by, for example, excessively raising rents in the relevant market, the head of each Si/Gun/Gu may request the Mayor/Do Governor to resolve such dispute before applying for approval for the project promotion plan or file for mediation to the Market Dispute Mediation Committee under Article 58.

(3) The State and local governments may support project implementers who formulate and execute measures to protect shop occupants pursuant to paragraph (1) or may provide loans to shop occupants to support them conducting their business in other place during the period of market improvement projects or returning after the completion of market improvement projects.

(4) When granting project implementation authorization or authorization for a property management and disposal plan, the head of each Si/Gun/Gu shall confirm whether the project implementer is implementing measures to protect shop occupants; if such measures are unjustifiably insufficient, he or she shall request the project implementer to rectify such situation within a fixed period of time.

(5) If a project implementer fails to rectify situation as requested in paragraph (4) without good cause, the State and local governments may take necessary steps, such as suspending or withdrawing subsidies for business expenses.

(6) In cases where a project implementer builds a multi-use commercial building in accordance with a market improvement project plan, he or she may supply houses preferentially to houseless people satisfying such conditions as set forth in Presidential Decree among the shop occupants conducting business personally in the market improvement zone (limited to one housing unit for one household), notwithstanding Article 54 of the Housing Act. <Amended on Jan. 19, 2016>

[This Article Wholly Amended on Jun. 8, 2010]

Article 65(Merchants' association) #

(1) The whole or part of merchants who run a business personally at markets, etc. may autonomously establish a merchants' association. <Amended on May 28, 2013>

(2) Where the merchants' association is intended to be established as a corporation, it shall be established at the time it registers such establishment at the location of its main office. <Amended on Apr. 20, 2021>

(3) Any person who intends to establish a merchant's association shall register it with the head of relevant Si/Gun/Gu as prescribed by Decree of the Ministry of SMEs and Startups. In such cases, the merchants' association which is a juristic person shall prepare its articles of association and obtain authorization from the head of a relevant Si/Gun/Gu therefor. The same shall apply when amending the articles of association. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(4) Every merchants' association may conduct the following business: <Amended on May 28, 2013; Jun. 12, 2018; Feb. 20, 2024>

1. Modernization of facilities and business administration;

2. Joint business for the increase of sales and revitalization of sales activities of merchants;

3. Education of merchants and collaborative business with local residents;

4. Duties concerning the maintenance of order in commercial transactions and handling customers' complaints;

5. Duties concerning the management of commercial infrastructure (limited only to cases where an association also plays the role of market manager under Article 67);

6. Duties concerning the establishment and operation of a system for the prevention of fire or natural disasters and safety management;

7. Other business entrusted or approved by the State and local governments for the revitalization of markets, etc.

(5) Every merchants' association may collect money from its members to cover expenses for the operation of the merchants' association and for carrying out the business set forth in each subparagraph of paragraph (4).

(6) The Minister of SMEs and Startups and the head of a Si/Gun/Gu may, when necessary, demand submission of documents regarding the operation of merchants' associations. <Amended on Jul. 26, 2017>

(7) The State and local governments may subsidize merchants' associations for expenses necessary for carrying out the businesses in each subparagraph of paragraph (4) within budgetary limits.

(8) Where a merchants' association registered under paragraph (3) falls under any of the following cases, the head of the competent Si/Gun/Gu may revoke its registration; provided, if a merchants’ association falls under subparagraph 1, he or she shall revoke its registration: <Added on Jan. 8, 2019; Apr. 20, 2021>

1. Where the merchants’ association is registered by fraud or other improper means;

2. Where the merchants’ association appoints a person other than a merchant of a market, etc. as its representative executive officer;

3. Where the merchants’ association implements any project contrary to the purpose of its establishment prescribed in its articles of association or rules;

4. Where a merchants' association requests to revoke its registration with the consent of at least 1/2 of merchants in the markets, etc. identical to the registered merchants' association and at least 1/2 of the total numbers of land owners and total numbers of building owners, respectively.

(9) To revoke the registration of a merchants’ association pursuant to paragraph (8), the head of the competent Si/Gun/Gu shall hold a hearing. <Added on Jan. 8, 2019>

(10) Matters necessary for procedures for revoking the registration of a merchants’ association under paragraphs (8) and (9) shall be determined by ordinance of a Si/Gun/Gu. <Added on Jan. 8, 2019>

(11) The establishment and operation of merchants' associations and other necessary matters shall be prescribed by ordinance of Si/Gun/Gu as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jan. 8, 2019>

(12) Except for the matters prescribed by this Act, provisions pertaining to incorporated associations in the Civil Act shall apply mutatis mutandis to matters concerning merchants' associations which are juristic persons. <Amended on Jan. 8, 2019>

[This Article Wholly Amended on Jun. 8, 2010]

Article 66(Merchants' federation) #

(1) A merchants' federation (hereinafter referred to as "federation") may be established, whose members shall include all or part of the merchants' associations; shopping district promotion cooperatives; corporations, cooperatives and organizations whose members are merchants; and markets which are companies under the Commercial Act.

(2) Any person who intends to establish a federation shall obtain permission for establishment from the Minister of SMEs and Startups as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(3) The federation shall be a juristic person and shall be incorporated by completing the registration of incorporation at the seat of its principal office.

(4) The federation shall conduct the following business: <Amended on Jul. 26, 2017>

1. Revitalization of business districts for the merchants of markets and shopping districts;

2. Joint development of products and security of sales channels for the merchants of markets and shopping districts;

3. Collaborative business related to purchase, sales and logistics between the merchants of markets and shopping districts;

4. Fostering of and support for self-help organizations of merchants;

5. Business entrusted by the State and local governments;

6. Other business that the Minister of SMEs and Startups deems necessary.

(5) The State and local governments may provide subsidies or assistance to the federation for expenses necessary for carrying out the business in paragraph (4) within budgetary limits.

(6) The chairperson of the federation may, when conducting the business in the subparagraphs of paragraph (4), appoint a proxy who has a right to do judicial or extrajudicial acts from among executives or employees as prescribed by the articles of association.

(7) The Minister of SMEs and Startups may, when necessary, demand the submission of documents regarding the operation, etc. of the federation. <Amended on Jul. 26, 2017>

(8) The establishment and operation of the federation and other necessary matters shall be prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(9) Except for the matters prescribed by this Act, provisions pertaining to incorporated associations in the Civil Act shall apply mutatis mutandis to matters concerning the federation.

[This Article Wholly Amended on Jun. 8, 2010]

Article 67(Market manager) #

(1) When there is no person conducting the duties of the superstore operator under Article 12 (1) through (3) of the Distribution Industry Development Act in a market concerned, the head of each Si/Gun/Gu may designate a person to conduct the following duties among the persons set forth in the subparagraphs of paragraph (2) (hereinafter referred to as "market manager"): <Amended on Jun. 12, 2018; Feb. 20, 2024>

1. Maintenance and management of commercial infrastructure;

2. Establishment and operation of a system for the prevention of fire or natural disasters and safety management, as well as cleaning and crime prevention activities;

3. Security of customers' safety and handling of claims and complaints of customers and residents in the neighborhood;

4. Establishment of order in commercial transactions;

5. Other duties that the head of each Si/Gun/Gu deems necessary for the management of markets.

(2) Any of the following persons shall become a market manager:

1. A merchants' association or merchants' organization which is established pursuant to Article 65;

2. A corporation established under the Civil Act or the Commercial Act;

3. A business cooperative or cooperative which is established with market merchants as its members under the Small and Medium Enterprise Cooperatives Act;

4. Other public corporations or organizations that the head of a Si/Gun/Gu considers able to carry out the duties set forth in the subparagraphs of paragraph (1).

(3) When a market manager performs the duties in the subparagraphs of paragraph (1), every local government may provide subsidies for expenses within budgetary limits in consideration of the public nature of the concerned duties, the nature of persons playing a leading role in establishing a market, etc.

(4) Procedures for designating a market manager and other necessary matters shall be prescribed by ordinances of Si/Gun/Gu as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Wholly Amended on Jun. 8, 2010]

SPECIAL ACT ON THE DEVELOPMENT OF TRADITIONAL MARKETS AND SHOPPING DISTRICTS

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Fostering of markets by specialty) #

Article 4(Relationship to other statutes) #

Article 5(Formulation of market and shopping district revitalization master plan) #

Article 6(Formulation of City/Do's supporting plan) #

Article 7(Formulation of regional promotion plan) #

Article 8(Evaluation on effects of support) #

Article 9(Survey on action condition of markets and shopping districts) #

Article 10 #

Article 10-2(Revocation of recognition of markets) #

Article 11(Support for revitalization of shopping districts) #

Article 11-2(Support for revitalization of alley shopping districts) #

Article 12(Supports for weekend markets) #

Article 13(Designation and development of culture and tourism markets) #

Article 13-2(Cancellation of designation of culture and tourism markets) #

Article 14(Opening of temporary markets) #

Article 14-2(Closure of temporary markets) #

Article 15(Support for installation of shops under direct management of farmers and fishermen) #

Article 16(Fostering of young merchants) #

Article 17(Encouragement of utilization of vacant shops) #

Article 17-2(Special cases concerning permission to use or profit from public property and lease thereof) #

Article 18(Reduction of fees for State and public land) #

Article 19(Reduction of parking fees of public parking areas) #

Article 19-2(Designation and modification of commercial area revitalization zones) #

Article 19-3(Cancellation of designation of commercial area revitalization zones) #

Article 19-4(Formulation of commercial area revitalization project plan) #

Article 19-5(Approval for project plan) #

Article 19-6(Revocation of approval for project plan) #

Article 19-7(Support for revitalization of commercial areas) #

Article 19-8(Establishment of commercial area management organization) #

Article 19-9(Evaluation of effects of support for commercial area revitalization projects) #

Article 20(Support for commercial infrastructure modernization projects) #

Article 20-2(Inspection of safety facilities) #

Article 21(Use of State and public land for facility modernization projects) #

Article 22(Special cases regarding bearing of expenses for relocating utility poles) #

Article 23(Efficient layout of shops) #

Article 24(Protection of shop lessees, and shop occupants of public markets) #

Article 25(Facilitation of modernization of commercial transactions) #

Article 26(Activation of joint projects) #

Article 26-2(Issuance of Onnuri gift certificates) #

Article 26-3(Exchange of Onnuri gift certificates) #

Article 26-4(Registration of member shops) #

Article 26-5(Matters to be observed by member shops) #

Article 26-6(Revocation of registration of member shops) #

Article 26-7(Support for issuance of Onnuri gift certificates) #

Article 26-8(Survey on Circulation Status of Onnuri Gift Certificates) #

Article 27(Development of sales channels and support for public relations) #

Article 28(Education of merchants and fostering of professionals) #

Article 29(Support for industry-academic cooperative projects) #

Article 30(Cooperation between superstores and market) #

Article 31(Markets subject to development of market improvement project) #

Article 32(Market improvement project promotion committee) #

Article 33(Formulation of market improvement project promotion plan) #

Article 34(Special provisions for consent) #

Article 35(Application for approval for project promotion plans) #

Article 36(Market Improvement Project Deliberation Committee) #

Article 37(Approval for project promotion plan) #

Article 38(Revocation of approval for project promotion plan) #

Article 38-2(Withdrawal of consent for approval, or revocation of approval, of project promotion plans) #

Article 39(Project implementation authorization) #

Article 40(Legal fiction of permission under other Acts) #

Article 40-2(Package councils for legal fictions in authorization and permission) #

Article 41(Project implementers) #

Article 42(Designation of substitute market improvement project developers) #

Article 43(Substitute land and reserved land) #

Article 44(Registration of superstores) #

Article 44-2(Special cases concerning registration of superstores) #

Article 45(Special provisions for market improvement projects including adjoining areas) #

Article 46(Special provisions for disposal of State property and public property) #

Article 47(Special provisions for market improvement projects for public markets) #

Article 48(Special provisions for district-unit planning zones) #

Article 49(Measures for protection of shop occupants) #

Article 50(Special provisions for preparation of temporary markets) #

Article 51(Special provisions for floor area ratio) #

Article 52(Special provisions for building-to-land ratio) #

Article 53(Special provisions for restriction on height of buildings for securing sunshine) #

Article 53-2(Special provisions for vacant space in land) #

Article 54(Cancellation of selection as city/gun planning facilities) #