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SPECIAL ACT ON THE DEVELOPMENT OF ENTERPRISE CITIES — 법갈피

영문법령 / SPECIAL ACT ON THE DEVELOPMENT OF ENTERPRISE CITIES

SPECIAL ACT ON THE DEVELOPMENT OF ENTERPRISE CITIES

법률일부개정시행 2025-12-02국토교통부 · 제21170호 · 공포 2025-12-02

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to prescribe matters necessary for private enterprises to develop and operate self-sufficient cities across various urban functions, including industry, research, tourism and leisure, in a planned and self-directed manner to facilitate planned development of national land and investment of private enterprises, thereby contributing to the advancement of public welfare, national economic development, and balanced national development.

[This Article Wholly Amended on May 30, 2011]

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Jun. 22, 2015>

1. The term "enterprise city" means a city developed by private enterprises (limited to juristic persons, but including alternative operators designated pursuant to Article 48(2)) to be evenly equipped with primary functions, such as industry, research, tourism, leisure and business, and self-sufficient multi-functions, such as housing, education, medical services and culture, with the aim of becoming positioned in industry and boosting economic activities:

a. Deleted; <Jun. 22, 2015>

b. Deleted; <Jun. 22, 2015>

c. Deleted; <Jun. 22, 2015>

2. The term "enterprise city development zone" means a zone designated and publicly notified pursuant to Article 5 to execute a project for the development of enterprise cities;

3. The term "enterprise city development project" means a project conducted to create an enterprise city.

[This Article Wholly Amended on May 30, 2011]

Article 3(Relationship to other statutes) #

This Act shall prevail over any other statute in the application of special regulation applicable to enterprise city development zone (hereinafter referred to as "development zone") and enterprise city development project (hereinafter referred to "development project"); provided, when any other statute contains provisions more lenient than special regulation under this Act, those provisions shall apply.

Article 4(Proposals for designation of development zones) #

(1) Any private enterprise that meets the criteria referred to in Article 10(3) and any of the following persons (limited to where an agreement has been reached with private enterprises) may propose the designation of a development zone to the Minister of Land, Infrastructure and Transport in concert with the competent Metropolitan City Mayor, Special Self-Governing Province Governor, or head of a Si/Gun (excluding the heads of Guns under the jurisdiction of Metropolitan Cities; hereinafter referred to as the "head of a Si/Gun"); provided, when consultation undertaken on a joint proposal is more likely to be long delayed for any reason prescribed by Presidential Decree or it is intended to conduct a project in collaboration with a Do, such proposal may be made jointly with the relevant Do Governor: <Amended on Mar. 23, 2013>

1. State agency or a local government;

2. Public corporation under Article 5 of the Act on the Management of Public Institutions;

3. Local public enterprise under the Local Public Enterprises Act;

4. Jeju International Free City Development Center (limited to where a development zone is Jeju Special Self-Governing Province) under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City.

(2) A person who intends to propose the designation of a development zone pursuant to paragraph (1) shall submit all documents and drawings regarding the following:

1. Name, location, and area of the development zone;

2. Basic characteristics of the enterprise city and basic directions of the development thereof;

3. Matters concerning the development plan of the enterprise city;

4. Matters concerning the proposer's financial standing, including financial structure;

5. Matters concerning the direct use of prepared land;

6. Data on business feasibility analysis listed in the following:

a. Estimated data on the total project budget;

b. Annual investment plans;

c. Annual payback plans;

d. Data on profitability analysis;

e. Other data on business feasibility analysis prescribed by Presidential Decree;

7. Draft agreement on the promotion of the project, etc., discussed with the head of the competent Si/Gun, including the following:

a. Matters concerning the implementation of the development project;

b. Matters concerning the management and operation (including management and operation before and after the completion of the development project) of the enterprise city;

c. Matters concerning the installation of infrastructure and cost-sharing;

d. Other matters prescribed by Presidential Decree regarding the agreement;

8. Matters concerning measures for environmental conservation;

9. Other matters prescribed by Presidential Decree.

(3) The head of a Si/Gun or a Do Governor shall, upon receipt of a request for a joint proposal pursuant to paragraph (1), announce a summary of such request as prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

(4) Upon receipt of a request from another private enterprise for a joint proposal to designate a similar development zone after an announcement under paragraph (3) is released, the head of a Si/Gun or a Do Governor shall select a person who requests a proposal for a project meeting each of the following criteria as a joint proposer:

1. Development project highly beneficial to the public;

2. Development project which has a large ripple effect on local development;

3. Other projects meeting the criteria determined by municipal ordinance.

[This Article Wholly Amended on May 30, 2011]

Article 5(Designation of development zones) #

(1) Upon receipt of a proposal for the designation of a development zone pursuant to Article 4, the Minister of Land, Infrastructure and Transport may listen to the opinions of the competent Metropolitan City Mayor or Do Governor (where such proposal is made jointly with the Metropolitan City Mayor or Do Governor, excluding the Metropolitan City Mayor or Do Governor) and designate the development zone after consulting with the heads of relevant central administrative agencies and undergoing deliberation by the Central Urban Planning Committee referred to in Article 106 of the National Land Planning and Utilization Act and by the City Development Committee referred to in Article 39. The same shall also apply where it is intended to modify (excluding any modification of minor matters prescribed by Presidential Decree) the designation of a development zone at the request of the proposer. <Amended on Mar. 23, 2013>

(2) Where the Minister of Land, Infrastructure and Transport intends to designate a development zone or modify the designation of a development zone pursuant to paragraph (1), he or she shall listen to the opinions of residents, relevant experts, etc., and hold a public hearing, as prescribed by Presidential Decree; provided, the same shall not apply where it is intended to modify any of the minor matters prescribed by Presidential Decree. <Amended on Mar. 23, 2013>

(3) Where the Minister of Land, Infrastructure and Transport intends to designate pursuant to paragraph (1) a development zone proposed jointly with a Do Governor pursuant to the proviso, with the exception of the subparagraphs, of Article 4(1), he or she shall hear the opinions of the heads of relevant Sis/Guns. <Amended on Mar. 23, 2013>

(4) Where the designation of a development zone is proposed jointly with the head of a Si/Gun pursuant to Article 4(1), the Minister of Land, Infrastructure and Transport may omit the procedure referred to in paragraph (2) if the head of the Si/Gun hears the opinions of residents, relevant experts, etc. or holds a public hearing in advance. <Amended on Mar. 23, 2013>

(5) Where the Minister of Land, Infrastructure and Transport designates a development zone or modifies the designation of a development zone pursuant to paragraph (1), he or she shall publish such fact in the Official Gazette as prescribed by Presidential Decree. <Amended on Mar. 23, 2013>

(6) The Minister of Land, Infrastructure and Transport may jointly carry out deliberations by the Central Urban Planning Committee and City Development Committee under paragraph (1) in order to efficiently perform duties concerning the designation of development zones or the modification of designation thereof. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 30, 2011]

Article 6(Requirements for designation of development zones) #

(1) Where the Minister of Land, Infrastructure and Transport intends to designate a development zone, the development project shall satisfy all of the following requirements: <Amended on Mar. 23, 2013; Jun. 9, 2023>

1. The development project shall serve the public interest by contributing to balanced regional development, such as the development of underdeveloped areas or the revitalization of local economies;

2. The development project shall contribute to sustainable development;

3. The development project shall suit the characteristics and conditions of the relevant region;

4. The investment plan, etc. for the development project shall be feasible;

5. The development project shall satisfy other requirements prescribed by Presidential Decree.

(2) The size of a development zone shall be at least 500,000 square meters and shall be at least the size prescribed by Presidential Decree in consideration of the primary functions, etc., of an enterprise city (hereafter in this Article referred to as "minimum size"); provided, the size of a development zone shall be at least 1/2 of the minimum size: <Amended on Jun. 22, 2015; Feb. 13, 2024>

1. Where a development zone is adjacent to an area with excellent industrial and living conditions, such as enterprise city, industrial complex, or innovation city, and has undergone deliberation by the City Development Committee;

2. Where a juristic person relocating from the Seoul Metropolitan area under the Seoul Metropolitan Area Readjustment Planning Act to an area outside of the Seoul Metropolitan area, which shall be an enterprise satisfying the requirements prescribed by Presidential Decree, proposes the designation of a development zone;

3. Deleted. <Feb. 13, 2024>

(3) Upon receipt of a proposal to designate a development zone pursuant to Article 4, the Minister of Land, Infrastructure and Transport may request specialized institutions prescribed by Presidential Decree to conduct examinations, analysis, etc. to assess whether such proposal meets the requirements provided for in paragraphs (1) and (2) and other matters necessary for the designation of the development zone. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 30, 2011]

Article 7(Cancellation of designation of development zones) #

(1) If a development zone designated pursuant to Article 5(1) falls under any of the following circumstances, the Minister of Land, Infrastructure and Transport may cancel the designation thereof following the deliberation by the City Development Committee referred to in Article 39 (hereinafter referred to as the "Committee"): <Amended on Jan. 20, 2012; Mar. 23, 2013; Oct. 24, 2017>

1. Where no application is filed for approval of an implementation plan referred to in Article 12 within three years from the date on which the development plan is approved and announced pursuant to Article 11(6);

2. Where no land is purchased in excess of the rate prescribed by Presidential Decree within two years from the date on which an implementation plan is approved and publicly notified pursuant to Article 12(5);

3. Where it is deemed impractical to achieve the objectives of the designation of the development zone, considering progress in the implementation of the development project.

(2) If the designation of a development zone is canceled pursuant to paragraph (1), any approval, determination, etc. under each subparagraph of Article 11(7) and any authorization, permission, etc. under each subparagraph of Article 13(1) shall lose effect, and a basic urban plan, area of specific use, etc., that were subject to formulation, alteration or cancellation shall be deemed reinstated as before the designation of the development zone or to be abolished. <Added on Jan. 20, 2012; Oct. 24, 2017>

(3) If the designation of a development zone is canceled pursuant to paragraph (1), the Minister of Land, Infrastructure and Transport shall, as prescribed by Presidential Decree, publish such fact in the Official Gazette and give notice of such fact to the head of a Si/Gun having jurisdiction over the relevant area. <Added on Jan. 20, 2012; Mar. 23, 2013>

(4) If an area is excluded from a development zone following the modification of the designation of a development zone pursuant to Article 5, paragraphs (2) and (3) shall apply mutatis mutandis. <Added on Jan. 20, 2012>

[This Article Wholly Amended on May 30, 2011]

Article 8(Estimation and reinvestment of development gains) #

(1) The Minister of Land, Infrastructure and Transport may entrust a specialized institution prescribed by Presidential Decree with conducting an examination and analysis of data on business feasibility analysis referred to in Article 4(2)6. <Amended on May 30, 2011; Mar. 23, 2013>

(2) As prescribed by Presidential Decree, the operator of a development project shall use parts of the development gains calculated pursuant to paragraph (1) for the purposes falling under any of the following, in consideration of the degree of underdevelopment of the relevant development zone; provided, when the development project is conducted in an area where development charges are imposed and collected under the Restitution of Development Gains Act, the same shall apply to excess gains except the development charges paid under that Act: <Amended on Jun. 22, 2015; Apr. 13, 2021; Feb. 13, 2024>

1. Installation of arterial facilities outside of the development zone directly related to the development project, cultural facilities defined in Article 2(1)3 of the Culture and Arts Promotion Act, and public convenience facilities such as sports facilities defined in subparagraph 1 of Article 2 of the Installation and Utilization of Sports Facilities Act, subject to consultation with the head of a Si/Gun;

2. Reduction of the sale price of land used for primary functions of the enterprise city such as industry, research, tourism, leisure and business;

3. Covering expenses incurred in establishing facilities for job creation in the enterprise city, such as business incubators under Article 53(1) of the Support for Small and Medium Enterprise Establishment Act.

(3) Where a project operator installs arterial facilities and public convenience facilities pursuant to paragraph (2), the Minister of Land, Infrastructure and Transport may designate the project operator as the implementer of a project for installation of the facilities and charge him or her to carry out construction works necessary for installing the facilities, if the project operator bears not less than 40/100 of the costs incurred therein. <Amended on May 30, 2011; Mar. 23, 2013>

(4) If any changes are made to significant matters that formed the basis for calculating development gains at the time of approving an implementation plan referred to in Article 12, the Minister of Land, Infrastructure and Transport shall recalculate such development gains. In such cases, paragraph (1) shall apply mutatis mutandis to the recalculation of the development gains. <Amended on May 30, 2011; Mar. 23, 2013>

(5) When recalculating development gains pursuant to paragraph (4) reveals that a clear discrepancy exists between the recalculated development gains and the development gains under paragraph (2), the Minister of Land, Infrastructure and Transport may adjust the plan for the installation of arterial facilities and public convenience facilities and the reduction of the sale price of industrial facility sites under paragraph (2). <Amended on May 30, 2011; Mar. 23, 2013; Jun. 22, 2015>

(6) Matters necessary for the criteria for the estimation of development gains, etc. shall be prescribed by Presidential Decree. In such cases, a parcel of land directly used under Article 16(1) and (2) (excluding subparagraphs 1 and 3 of that paragraph) shall be excluded from the calculation of development gains. <Amended on May 30, 2011>

[Title Amended on May 20, 2011; Jun. 22, 2015]

Article 9(Restrictions on acts) #

(1) A person who intends to perform, within a development zone, an act prescribed by Presidential Decree, such as the alteration of the shape or quality of land, the construction of buildings (including any changes made to the use thereof; hereafter the same shall apply in this Article), the installation of structures or the gathering of earth, stones, and gravel, shall obtain permission from the head of the competent Si/Gun. The same shall also apply to any intended alterations to permitted matters.

(2) A person who has already obtained permission (including where permission is not required or may be substituted by a report under related statutes and regulations) for the alteration of the shape and quality of land, the construction of buildings, the installation of structures, the gathering of earth, stones, and gravel, etc., in accordance with related statutes and regulations as at the time the relevant development zone is designated and publicly notified, but who has yet to complete such work or project, shall file a report with the head of the competent Si/Gun, as prescribed by Presidential Decree.

(3) The head of a Si/Gun shall, upon receipt of a report pursuant to paragraph (2), hear the opinions of the operator of the development project within 15 days and, when deemed necessary as a result of examining the following matters, he or she may take measures, such as the revocation of permission or issuing a construction suspension order, under the relevant statutes and regulations, or request the head of a relevant administrative agency to take measures, such as the revocation of permission or issuing a construction suspension order:

1. Compatibility with the development project;

2. Economic feasibility of the relevant construction or project and the need of the relevant development project to boost the public interest;

3. Period of use of the relevant building or structure.

(4) If the head of a Si/Gun or the head of a relevant administrative agency takes measures, such as the revocation of permission or construction suspension order, pursuant to paragraph (3), the operator of the relevant development project shall compensate a person subject to the revocation of permission or construction suspension order for any loss caused thereby.

(5) The provisions of Article 131(2) through (4) of the National Land Planning and Utilization Act shall apply mutatis mutandis to the compensation for losses under paragraph (4). In such cases, the Land Tribunal having jurisdiction over the adjudication on the compensation for losses shall be the Central Land Tribunal.

(6) The head of a Si/Gun may order a person who violates paragraph (1) to reinstate land, and, where a person subject to such order fails to implement his or her duty, the head of the Si/Gun may execute it by proxy under the Administrative Vicarious Execution Act.

[This Article Wholly Amended on May 30, 2011]

Article 10(Designation of development project operators) #

(1) The Minister of Land, Infrastructure and Transport shall designate a private enterprise, etc. that proposes the designation of a development zone pursuant to Article 4, as a development project operator. <Amended on Mar. 23, 2013>

(2) Notwithstanding paragraph (1), if a private enterprise or a person falling under any of the subparagraphs of Article 4(1) files an application, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport, to jointly carry out a development project after consulting with a private enterprise referred to in paragraph (1), the Minister of Land, Infrastructure and Transport may designate him or her as a joint operator. <Amended on Mar. 23, 2013>

(3) A private enterprise that intends to be designated as a development project operator pursuant to paragraph (1) shall meet the criteria prescribed by Presidential Decree including financial soundness, etc.

(4) A person who intends to be designated as a development project operator pursuant to paragraph (1) shall cover not less than 10 percent of the costs incurred for city development prescribed by Presidential Decree, such as the purchase price of land and the cost of all site preparation works, with his or her equity capital before such designation. In such cases, if he or she contributes land in kind, the scope of being recognized as the equity capital, the method of the calculation thereof, etc. shall be prescribed by Presidential Decree.

(5) The sum of the ratios of equity capital for a development project of persons falling under each subparagraph of Article 4(1) shall not exceed the sum of the ratios of equity capital of private enterprises; provided, when deemed particularly necessary for the implementation of the development project, such as designation as an alternative operator, pursuant to Article 48(2), the Minister of Land, Infrastructure and Transport may lower the level within the scope prescribed by Presidential Decree, following the deliberation of the Committee. <Amended on Mar. 23, 2013>

[This Article Wholly Amended on May 30, 2011]

Article 11(Approval of development plans) #

(1) A person who proposes the designation of a development zone pursuant to Article 4 shall prepare an enterprise city development plan (hereinafter referred to as "development plan") at the time he or she proposes such designation and obtain approval therefor from the Minister of Land, Infrastructure and Transport. The same shall also apply to any proposed revision of an approved development plan (excluding any modification of minor matters prescribed by Presidential Decree). <Amended on May 30, 2011; Mar. 23, 2013>

(2) A development plan shall include the following matters; provided, any matter falling under subparagraph 10 may be included in the development plan, upon approval from the Minister of Land, Infrastructure and Transport after the development plan is approved: <Amended on May 30, 2011; Mar. 23, 2013; Jun. 4, 2013; Jun. 22, 2015; Feb. 13, 2024>

1. Name, location, size, and project operator of the development zone;

2. Duration of the development project.

3. Plan for population accommodation, land use, transportation management, and environmental conservation;

4. Plan for financing and annual investment plan;

5. Plans for installation of facilities for education, culture, sports, health and medical services, and welfare facilities;

6. Plan for the installation of major infrastructure such as roads and water supply and sewerage systems (including a cost-sharing plan);

7. Cost-sharing plan for arterial facilities installed outside of the development zone and public convenience facilities installed inside the development zone under Article 8(2);

8. Matters concerning the establishment and relocation of business entities or matters concerning facilities relocated to the development zone;

9. Matters concerning the supply and disposition of prepared land, land that has not been developed (hereinafter referred to as "raw land") and multi-unit residential buildings;

10. Where it is intended to expropriate or use land, etc. pursuant to Article 14(1), the detailed lists thereof;

11. Replotting plan for landowners under Article 14-2;

12. Matters concerning the receipt of advance payment referred to in Article 21;

13. Plan for compensation (including relocation measures);

14. Plan for special regulation under Article 34-2 (limited to where special regulation is intended to be applicable);

15. Other matters prescribed by Presidential Decree.

(3) Where the Minister of Land, Infrastructure and Transport intends to approve a development plan or a modification thereto, he or she shall listen to the opinions of the competent Metropolitan City Mayor (excluding cases where the Metropolitan City Mayor is one of the joint proposers) or Do Governor (where the Do Governor is one of the joint proposers, referring to the head of the competent Si/Gun) and undergo consultations with the heads of relevant central administrative agencies and deliberation by the Committee; provided, the same shall not apply to cases falling under the proviso, with the exception of the subparagraphs, of paragraph (2). <Amended on May 30, 2011; Mar. 23, 2013>

(4) The head of a relevant central administrative agency shall submit an opinion within 20 days after receiving a request for consultation under paragraph (3). <Added on Oct. 24, 2017>

(5) Where the head of a relevant central administrative agency fails to submit an opinion within the period prescribed in paragraph (4) (referring to the extended period where an answer period is extended pursuant to Article 20(2) of the Civil Petitions Treatment Act), the consultation is deemed made. <Added on Oct. 24, 2017>

(6) Where the Minister of Land, Infrastructure and Transport approves a development plan pursuant to paragraph (1), he or she shall publish such fact in the Official Gazette as prescribed by Presidential Decree; provided, in cases falling under the proviso, with the exception of the subparagraphs, of paragraph (2), he or she shall publish it separately in the Official Gazette after approving the development plan. <Amended on May 30, 2011; Mar. 23, 2013; Oct. 24, 2017>

(7) Where a development plan is published pursuant to paragraph (6), approval, determination, etc. falling under each of the following shall be deemed granted or made on the date of such publication; provided, the matter under subparagraph 1 shall apply only where the size of the development zone is not less than the size prescribed by Presidential Decree: <Amended on Apr. 14, 2011; May 30, 2011; Jun. 22, 2015; Oct. 24, 2017>

1. Confirmation or approval of the formulation or alteration of a basic urban or Gun plan under Articles 18, 22, and 22-2 of the National Land Planning and Utilization Act (where a development zone is designated in a Special Self-Governing Province or Si/Gun, limited to where a modified draft of the basic urban or Gun plan for areas other than the development zone is prepared and submitted to the relevant Special Self-Governing Province or Si/Gun);

2. Determination of an urban or Gun management plan under Article 30 of the National Land Planning and Utilization Act to change to an urban area under subparagraph 1 of Article 6 of that Act;

3. Determination of an urban/Gun management plan under Article 30 of the National Land Planning and Utilization Act to change and cancel fishery-resource protection zones under Article 40 of that Act;

4. Change or cancellation of agricultural promotion areas or areas for specific use under Article 31 of the Farmland Act, and permission for or consultation on the diversion of farmland under Article 34 of that Act;

5. Formulation or change of a basic plan for reclamation referred to in Articles 22 and 27 of the Public Waters Management and Reclamation Act.

(8) The Minister of Land, Infrastructure and Transport may enact and operate urban planning standards applicable to the development of enterprise cities to ensure that the cities serve the public interest. <Amended on May 30, 2011; Mar. 23, 2013; Oct. 24, 2017>

Article 12(Approval of implementation plans) #

(1) A development project operator under Article 10(1) and (2) shall prepare an implementation plan for a development project accompanied by the documents and drawings referred to in each of the following (hereinafter referred to as "implementation plan") and obtain approval therefor from the Minister of Land, Infrastructure and Transport. The same shall also apply to any proposed revision of an approved implementation plan (excluding any modification of minor matters prescribed by Presidential Decree): <Amended on May 30, 2011; Mar. 23, 2013; Jun. 4, 2013>

1. Financial plan (including an annual investment plan and a financing plan);

2. Location map of the project site;

3. Proposed floor plan and schematic design drawings and books;

4. Phased formation plan (limited to where performing a development project by phase is necessary due to business conditions);

5. A written agreement concluded with the head of the competent Si/Gun on the implementation of the development project, etc.;

6. Plan for disposal of prepared land, etc. or raw land (including a replotting plan for landowners under Article 14-2(4));

7. Other matters prescribed by Presidential Decree.

(2) The Minister of Land, Infrastructure and Transport in receipt of documents and drawings pursuant to paragraph (1) shall confirm the cadastral map of the project site through the administrative information sharing system under Article 36(1) of the Electronic Government Act. <Amended on May 30, 2011; Mar. 23, 2013>

(3) The implementation plan shall include a district-unit plan prepared pursuant to Article 52 of the National Land Planning and Utilization Act. <Amended on Apr. 14, 2011; May 30, 2011>

(4) Where the Minister of Land, Infrastructure and Transport intends to approve an implementation plan or a modification thereto pursuant to paragraph (1), he or she shall hear the opinions of the competent Do Governor and the head of the competent Si/Gun and have it deliberated on by the Committee. <Amended on May 30, 2011; Mar. 23, 2013>

(5) Where the Minister of Land, Infrastructure and Transport approves an implementation plan or a modification thereto pursuant to paragraph (1), he or she shall publish such fact in the Official Gazette as prescribed by Presidential Decree and forward copies of the relevant documents to the project operator and the head of the Si/Gun having jurisdiction over the development zone. In such cases, the head of the Si/Gun, upon receipt of such documents, shall make the documents available for public perusal. <Amended on May 30, 2011; Mar. 23, 2013>

Article 12-2(Approval of integrated development plans) #

(1) Where a person who proposes the designation of a development zone pursuant to Article 4 meets all of the requirements of development project operators under Articles 10(3) through (5), he or she may prepare a development plan integrated with a development plan and an implementation plan (hereinafter referred to as "integrated plan") and obtain approval therefor from the Minister of Land, Infrastructure and Transport. The same shall also apply to any modification of an approved integrated plan (excluding any modification of minor matters prescribed by Presidential Decree).

(2) Where the Minister of Land, Infrastructure and Transport approves an integrated plan pursuant to paragraph (1), the following matters shall also be deemed designated or approved:

1. Designation of development zone under Article 5;

2. Designation of development project operators under Article 10;

3. Approval of development plans under Article 11;

4. Approval of implementation plans under Article 12.

(3) Articles 4 through 7 shall apply mutatis mutandis to matters concerning proposals for the designation of a development zone according to the integrated plan and the designation of a development zone, requirements for designation, and cancellation of designation thereof.

(4) With respect to an integrated plan, Articles 8, 11, 12, 13, 14, 14-2, 17, 18, 21, 22, 24, 27 through 30, 33, 34-2, 35, 37, 47, and 48 shall apply mutatis mutandis. In such cases, "development plan" and "implementation plan" shall be construed as "integrated plan".

(5) Where the Minister of Land, Infrastructure and Transport approves an integrated plan or approves the modification thereof pursuant to paragraph (1), he or she shall hold a public hearing, as prescribed by Presidential Decree, and hear opinions of residents, relevant experts, etc.

(6) Where the Minister of Land, Infrastructure and Transport approves an integrated plan or approves the modification thereof pursuant to paragraph (1), he or she shall publish such fact in the Official Gazette as prescribed by Presidential Decree.

(7) Where matters subject to a strategic environmental impact assessment under Article 9 of the Environmental Impact Assessment Act are included in an integrated plan, Article 50 of that Act shall apply.

[This Article Added on Feb. 13, 2024]

Article 12-3(Integrated deliberation) #

(1) The Committee shall deliberate on the following matters related to implementation plans and integrated plans by integrating them (hereinafter referred to as "integrated deliberation"):

1. Matters deliberated by the building committee pursuant to Article 4 of the Building Act;

2. Matters concerning landscape under Articles 27 and 28 of the Landscape Act;

3. Assessment on educational environment under Article 6 of the Educational Environment Protection Act;

4. Measures for establishing connected transport systems under Article 38 of the National Transport System Efficiency Act;

5. Urban or Gun management plans under subparagraph 4 of Article 2 of the National Land Planning and Utilization Act;

6. Measures to improve intercity transport under Articles 7 and 7-2 of the Special Act on the Management of Intercity Transport in Metropolitan Areas;

7. Traffic impact assessment under Article 16 of the Urban Traffic Improvement Promotion Act;

8. Matters concerning a plan for using mountainous areas in the area predetermined for the enterprise city under the Mountainous Districts Management Act;

9. Disaster impact assessments, etc. under Article 4 of the Countermeasures against Natural Disasters Act;

10. Other matters the Minister of Land, Infrastructure and Transport deems necessary and refers to the Committee for deliberation.

(2) A person who wishes to undergo an integrated deliberation pursuant to paragraph (1) shall submit the documents related to the subparagraphs of paragraph (1) to the Committee and may submit a final written opinion. In such cases, the Committee shall comprehensively review matters related to approval, final written opinions of proposers, and opinions of related institutes and deliberate on them.

(3) Where any deliberation is conducted, it shall be deemed to have been conducted by the following committees:

1. The building committee established pursuant to Article 4 of the Building Act;

2. The Landscape Committee established pursuant to Article 29 of the Landscape Act;

3. The City/Do Educational Environment Protection Committee established pursuant to Article 5 of the Educational Environment Protection Act;

4. The National Transport Commission established pursuant to Article 106 of the National Transport System Efficiency Act;

5. The Central Urban Planning Committee under Article 106 of the National Land Planning and Utilization Act and the relevant Local Urban Planning Committee under Article 113 of that Act;

6. The Metropolitan Area Intercity Transport Commission under Article 8 of the Special Act on the Management of Intercity Transport in Metropolitan Areas;

7. Traffic impact assessment deliberation committees under Article 19 of the Urban Traffic Improvement Promotion Act;

8. Mountainous district management committees established pursuant to Article 22 of the Mountainous Districts Management Act;

9. Disaster impact assessment deliberative committee under Article 4(8) of the Countermeasures against Natural Disasters Act.

[This Article Added on Feb. 13, 2024]

Article 13(Legal fiction of relevant authorization and permission) #

(1) In approving an implementation plan or a modification thereto pursuant to Article 12(1), if the Minister of Land, Infrastructure and Transport has consulted with the heads of relevant administrative agencies pursuant to paragraph (3) with regard to the permission, authorization, designation, approval, consultation, report, etc. (hereinafter referred to as "authorization, permission, etc.") in each of the following for the implementation plan, the relevant authorization, permission, etc. shall be deemed obtained for such matters, and if the implementation plan is published pursuant to Article 12(5), the authorization, permission, etc. under the Acts in each of the following shall be deemed publicly notified or publicly announced: <Amended on Apr. 14, 2011; Feb. 22, 2012; Mar. 23, 2013; Jan. 14, 2014; Jun. 3, 2014; Jun. 22, 2015; Jul. 24, 2015; Jan. 19, 2016; Dec. 27, 2016; Jan. 29, 2020; Mar. 31, 2020; Jul. 20, 2021; Dec. 27, 2022>

1. Permission under Article 11 of the Building Act, report under Article 14 of that Act, revision to a permission or report under Article 16 of that Act, permission for and report on a temporary structure under Article 20 of that Act, and consultation about construction of a building under Article 29 of that Act;

2. Approval of an implementation plan referred to in Article 9 of the Special Act on Designation and Management of Free Economic Zones;

3. Permission for aggregate extraction under Article 22 of the Aggregate Extraction Act;

4. Permission for occupancy or use of public waters under Article 8 of the Public Waters Management and Reclamation Act, authorization of or report on an implementation plan to occupy or use under Article 17 of that Act, reclamation license of public waters under Article 28 of that Act, consultation about or approval for reclamation executed by the State, etc. under Article 35 of that Act, and authorization or announcement of an implementation plan for reclamation of public waters under Article 38 of that Act;

5. Approval of a business plan under Article 15 of the Tourism Promotion Act, designation of a tourist destination and tourism complex under Article 52 of that Act, approval of a development plan for a tourist destination and tourism complex under Article 54 of that Act, and approval for the execution of a development project under Article 55 of that Act;

6. Disposition of denial of permission under Article 24 of the Mining Industry Act, and disposition of reduction of a mining area or disposition of revocation of a mining right under Article 34 of that Act;

7. Permission for use of any State property under Article 30 of the State Property Act;

8. Determination of an urban or Gun management plan under Article 30 of the National Land Planning and Utilization Act, permission for development activities under Article 56 of that Act, designation of an operator of an urban or Gun planning facility project under Article 86 of that Act, and authorization of an implementation plan under Article 88 of that Act;

9. Permission for use of agricultural infrastructures prescribed in Article 23 of the Rearrangement of Agricultural and Fishing Villages Act, and approval of a business plan for a rural tourism and resort complex under Article 82(2) of that Act;

10. Permission for the implementation of road works by a person, other than a road management agency pursuant to Article 36 of the Road Act; permission for the occupation and use of a road under Article 61 of that Act; and consultation with, or approval from, a road management agency under Article 107 of that Act;

11. Authorization for an implementation plan for an urban development project pursuant to Article 17 of the Urban Development Act;

12. Permission to open a private road under Article 4 of the Private Road Act;

13. Permission to lumber, etc. under Article 14 of the Erosion Control Work Act and the cancellation of designation of land treated for erosion control area under Article 20 of that Act;

14. Designation of an industrial complex development project operator under Article 16 of the Industrial Sites and Development Act, approval of an execution plan for national industrial complex development under Article 17 of that Act, approval of an execution plan for general industrial complex development under Article 18 of that Act, approval of an execution plan for up-to-date city industrial complex development under Article 18-2 of that Act, and approval of an execution plan for development of agricultural and industrial complex under Article 19 of that Act;

15. Approval of the establishment, etc. of a factory under Article 13(1) of the Industrial Cluster Development and Factory Establishment Act;

16. Change and cancellation of a preserved mountainous district under Article 6 of the Mountainous Districts Management Act, cancellation of designation of a restricted area for the conversion or temporary use of a mountainous district under Article 11 of that Act, permission for a mountainous district conversion under Article 14 of that Act, reporting of a mountainous district conversion under Article 15 of that Act, permission for or reporting of the temporary use of a mountainous district under Article 15-2 of that Act, and permission for collecting earth and stones under Article 25 of that Act;

17. Permission for and reporting of the cutting of standing timber, etc. under Article 36(1) and (5) of the Creation and Management of Forest Resources Act, permission for and reporting of activities within a forest conservation zone (excluding conservation zones for forest gene resources) under Article 9(1) and (2)1 and 2 of the Forest Protection Act, and cancellation of designation of a forest conservation zone under Article 11(1)1 of that Act;

18. Permission for the execution of small river construction work under Article 10 of the Small River Maintenance Act, and permission to occupy a small river under Article 14 of that Act;

19. Authorization of a general waterworks business and industrial waterworks business under Articles 17 and 49 of the Water Supply and Waterworks Installation Act, and authorization of the installation of private-use waterworks and private-use industrial waterworks under Articles 52 and 54 of that Act;

20. Consultation on an energy use plan under Article 10 of the Energy Use Rationalization Act;

21. Designation of a logistics cluster under Article 22 of the Act on the Development and Management of Logistics Facilities and approval of an implementation plan for the development of a logistics cluster under Article 28 of that Act;

22. Registration of the opening of a superstore under Article 8 of the Distribution Industry Development Act;

23. Determination of park planning for a Do park under Article 13 of the Natural Parks Act, determination of park planning for a Gun park under Article 14 of that Act, and permission to implement a park project by a person other than a park management agency and for the management of park facilities under Article 20 of that Act (limited to Do parks and Gun parks that have undergone deliberation by the Do Park Committee or Gun Park Committee under Article 9 of that Act);

24. Permission to rebury a grave under Article 27 of the Act on Funeral Services;

25. License to operate the electricity generation business, electric transmission business, electric distribution business, electric sales business, or district electric business under Article 7 of the Electric Utility Act, and approval of or reporting of a plan for works for establishing electric installations for private use under Article 8 of the Electrical Safety Management Act;

26. Designation of a Jeju investment promotion zone prescribed in Article 162 of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City, and approval for the execution of a development project prescribed in Article 147 of that Act;

27. Approval of a project plan under Article 15 of the Housing Act;

28. Permission for using and benefiting from property under Article 20(1) of the Public Property and Commodity Management Act;

29. Reporting on the commencement, change or completion of a project under Article 86(1) of the Act on the Establishment and Management of Spatial Data;

30. Consultation about the appropriateness of integrated energy supply under Article 4 of the Integrated Energy Supply Act;

31. Approval of a business plan under Article 12 of the Installation and Utilization of Sports Facilities Act;

32. Permission to change the form or quality of land, etc. under Article 21-2 of the Grassland Act, and permission for the diversion of grassland under Article 23 of that Act;

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

34. Approval of an implementation plan for a housing site development business under Article 9 of the Housing Site Development Promotion Act;

35. Approval for or reporting on the installation of waste disposal facilities under Article 29 of the Wastes Control Act;

36. Authorization for the installation of a public sewerage system (limited to waste treatment plants) under Article 11 of the Sewerage Act, permission for the execution of public sewerage system construction work under Article 16 of that Act, and permission for the occupation and use of a public sewerage system under Article 24 of that Act;

37. Consultation with, or approval from a river management agency under Article 6 of the River Act, permission for the execution of river works under Article 30 of that Act, and permission to occupy and use a river, etc. under Article 33 of that Act;

38. Permission to implement harbor development projects under Article 9(2) of the Harbor Act and approval of implementation plans for harbor development projects under Article 10(2) of that Act;

39. Permission for alteration of the purpose of use under Article 28(1) of the Private School Act.

(2) An operator (referring to a person designated as the operator of a development project pursuant to Articles 10(1) and (2) and 48(2); hereinafter referred to as "operator") who intends to become eligible for constructive authorization, permission, etc. pursuant to paragraph (1) shall submit the relevant documents determined by the relevant statutes together at the time he or she files an application for approval of an implementation plan or of a modification thereto.

(3) In approving an implementation plan or a modification thereto pursuant to Article 12(1), the Minister of Land, Infrastructure and Transport shall consult in advance with the head of a relevant administrative agency if a matter falling under any subparagraph of paragraph (1) is involved in the implementation plan. <Amended on Mar. 23, 2013>

(4) The head of a relevant administrative agency shall, upon receipt of a request for consultation from the Minister of Land, Infrastructure and Transport pursuant to paragraph (3), submit his or her opinion within 20 days from his or her receipt of such request for consultation, and if no opinion is presented during the said period, he or she shall be deemed to have no opinion. <Amended on Jan. 20, 2012; Mar. 23, 2013>

(5) Where it is intended to become eligible for constructive authorization, permission, etc. referred to in paragraph (1), if documents, such as a permit for and a report on construction, are required to be submitted as a result of the accompaniment of the construction of buildings, etc., such documents may be substituted by drawings attached to documents related to a building permit under paragraph (1)1.

[This Article Wholly Amended on May 30, 2011]

Article 14(Expropriation and use of land, etc.) #

(1) If necessary to undertake a development project within a development zone, the operator may expropriate or use (hereinafter referred to as "expropriation, etc.") land, goods, or rights under Article 3 of the Act on Acquisition of and Compensation for Land for Public Works Projects (hereinafter referred to as "land, etc.").

(2) In applying paragraph (1), if detailed lists of land, etc. subject to expropriation, etc. have been notified pursuant to Article 11(6), the project approval and the announcement of project approval under Articles 20(1) and 22 of the Act on Acquisition of and Compensation for Land for Public Works Projects shall be deemed granted and made. <Amended on Oct. 24, 2017>

(3) An application for adjudication under Article 28 of the Act on Acquisition of and Compensation for Land for Public Works Projects may be filed after land amounting to at least 50/100 of the land area of a development zone is secured (referring to the acquisition of land ownership or obtaining the consent of landowners for use); provided, when a development project is carried out jointly pursuant to Article 10(2), an application for adjudication may be filed even before land amounting to at least 50/100 of the land area of the development zone is secured.

(4) Notwithstanding Articles 23(1) and 28(1) of the Act on Acquisition of and Compensation for Land for Public Works Projects, an application for adjudication may be filed within four years from the date on which a development plan is published under the main clause of Article 11(6); provided, when any unavoidable cause prescribed by Presidential Decree exists, said period may be extended for two years subject to approval by the Minister of Land, Infrastructure and Transport. <Amended on Jan. 20, 2012; Mar. 23, 2013; Jun. 22, 2015; Oct. 24, 2017>

(5) The Land Tribunal having jurisdiction over the adjudication on the expropriation, etc. of land, etc. under paragraph (1) shall be the Central Land Tribunal.

(6) Each operator shall formulate and execute relocation measures, such as creation and supply of housing complexes, for those who are deemed to lose their bases of life as a result of offering land, etc. necessary for the implementation of development projects, as prescribed by the Act on Acquisition of and Compensation for Land for Public Works Projects.

(7) Measures for relocation to be formulated pursuant to paragraph (6) shall include matters prescribed by Presidential Decree, such as supplying alternative land necessary for livelihood in consideration of the original possession of land, etc., occupation, etc. by consulting with the residents subject to relocation.

(8) An operator may entrust affairs concerning compensation for land, etc. and relocation measures to the heads of Sis/Guns. In such cases, the heads of the Sis/Guns shall comply therewith, unless there is a special reason to the contrary.

(9) Where the head of a Si/Gun who has been entrusted with affairs concerning compensation for land, etc. and measures for relocation pursuant to paragraph (8) finds it difficult to directly carry out such entrusted affairs, he or she may re-entrust part of the entrusted affairs to institutions provided in Article 81(1)2 of the Act on Acquisition of and Compensation for Land for Public Works Projects.

(10) Except as otherwise provided in this Act, the provisions of the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply mutatis mutandis to the expropriation, etc. of land, etc. referred to in paragraph (1).

[This Article Wholly Amended on May 30, 2011]

Article 16(Direct use of land) #

(1) An operator shall directly use the land for the primary purposes of an enterprise city, such as industrial sites, business sites and tourism sites, at a rate of at least that prescribed by Presidential Decree in the range of 20 to 50 percent; provided, when a person falling under any of subparagraphs 2 through 4 of Article 48(2) is designated as an alternative operator pursuant to Article 48(2) or when a request is made by the head of the competent Si/Gun in recognition of unavoidable causes such as the insolvency, bankruptcy, etc. of an operator, the Minister of Land, Infrastructure and Transport may reduce such rate as prescribed by Presidential Decree. <Amended on Jun. 22, 2015>

(2) The use of land by any of the following companies or enterprises for the primary purposes of an enterprise city shall be deemed the direct use of land by an operator pursuant to the main clause of paragraph (1):

1. Subsidiary or affiliate (referring to any subsidiary or affiliated company under the Monopoly Regulation and Fair Trade Act; hereafter the same shall apply in this paragraph) of an operator;

2. Enterprise that has invested capital in an operator;

3. Subsidiary or affiliate of an enterprise that has invested capital in an operator.

(3) If an operator fails or neglects to carry out the relocation of business entities, the installation of facilities and equipment, etc. in the land planned to be directly used by the operator in accordance with project implementation plans (referring to plans related to Article 11(2)4 and 8 and Article 12(1)1, 4, and 5; hereinafter the same shall apply) without good cause, the Minister of Land, Infrastructure and Transport may issue the following orders: <Amended on Mar. 23, 2013; Jun. 4, 2013>

1. An order to carry out the relocation of businesses, the installation of facilities and equipment, etc. in accordance with the project implementation plans;

2. An order to restrict the disposal of prepared land, etc. or raw land under Article 22;

3. An order to restrict the application of special cases of housing supply under Article 31(1).

[This Article Wholly Amended on May 30, 2011]

Article 20(Post-adjustment of cost-sharing) #

(1) An operator shall submit data on business feasibility analysis referred to in Article 4(2)6, along with the results of the execution of the development project by each item of the same subparagraph and the opinion of an accounting corporation thereon, to the Minister of Land, Infrastructure and Transport before he or she undergoes a completion inspection pursuant to Article 17. <Amended on May 30, 2011; Mar. 23, 2013>

(2) Where the Minister of Land, Infrastructure and Transport deems that the yield of gains exceeds the ceiling prescribed by Presidential Decree, after examining the results of execution submitted pursuant to paragraph (1), he or she shall direct the operator to consult with the head of the competent Si/Gun to have the operator install each of the following facilities or meet some of the installation costs thereof: <Amended on May 30, 2011; Mar. 23, 2013; Apr. 13, 2021>

1. Educational institutions or welfare facilities that fit the regional characteristics;

2. Cultural facilities defined in Article 2(1)3 of the Culture and Arts Promotion Act and public convenience facilities such as sports facilities defined in subparagraph 1 of Article 2 of the Installation and Utilization of Sports Facilities Act;

3. Other facilities necessary for development of a local community, as requested by the head of the Si/Gun.

(3) If it is found that the yield of gains is decreased below the bottom prescribed by Presidential Decree, after examining the results of execution submitted pursuant to paragraph (1), the Minister of Land, Infrastructure and Transport shall direct the head of the competent Si/Gun to consult with the operator about the revision of the plan, etc. for the installation of public convenience facilities in the development zone using the development gains under Article 8; provided, this shall not apply to investments already made in arterial routes, etc. installed outside of the development zone pursuant to Article 8(2). <Amended on May 30, 2011; Mar. 23, 2013; Jun. 22, 2015>

(4) If consultation between the head of a Si/Gun and an operator under paragraphs (2) and (3) ends in vain, the Minister of Land, Infrastructure and Transport may refuse to conduct an inspection of completed works referred to in Article 17. <Amended on May 30, 2011; Mar. 23, 2013>

[Title Amended on May 30, 2011]

Article 22(Disposal of prepared land or raw land) #

(1) The Minister of Land, Infrastructure and Transport may restrict some methods for disposing of prepared land, etc. or raw land with respect to all or some of the following development zones where speculation is likely to arise: <Amended on Mar. 23, 2013; Jun. 4, 2013; Jan. 19, 2016>

1. In areas referred to in Article 104-2(1) of the Income Tax Act;

2. In overheated speculation districts under Article 63 of the Housing Act.

3. In areas subject to permission of land transaction contracts pursuant to Article 10 of the Act on Report on Real Estate Transactions;

4. In other areas where speculation is likely to arise, as prescribed by Presidential Decree.

(2) Where a person who develops raw land with which he or she has been supplied fails to use raw land in accordance with the purpose determined by a development plan, or sell all or part of land with which he or she has been supplied to a third person without the consent of an operator, the operator may cancel an raw land supply contract, as prescribed by Presidential Decree. <Amended on Jun. 4, 2013>

(3) Where a person who develops raw land with which he or she has been supplied fails to use raw land in accordance with the purpose determined by a development plan, the Minister of Land, Infrastructure and Transport may require an operator to take necessary measures, such as urging the person to use the land according to the original purpose thereof, claiming the restoration to the original state or damages, or canceling an raw land supply contract. <Added on Jun. 4, 2013>

(4) Matters necessary for methods and procedures for disposition of prepared land, etc. or raw land, and the price standards thereof shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport; provided, where an operator supplies a local government with sites for elementary schools, middle schools, and high schools under the Elementary and Secondary Education Act, the prices of such land shall be determined based on the price determined by an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers. <Added on Jun. 4, 2013; Jan. 19, 2016; Apr. 7, 2020>

[This Article Wholly Amended on May 30, 2011]

[Title Amended on Jun. 4, 2013]

Article 33(Special cases concerning the Public Waters Management and Reclamation Act) #

(1) Where a change in the purpose of reclamation of any land to be reclaimed for which a reclamation license under Article 28 of the Public Waters Management and Reclamation Act has been obtained, any reclaimed land, or any reclaimed land for which authorization of completion has been obtained (including where consultation on or approval for reclamation executed by the State, etc. under Article 35 of the Public Waters Management and Reclamation Act has been undertaken or obtained; hereafter in this Article referred to as "reclaimed land") is included in a development plan for the implementation of a development project, if the change in the purpose of such reclamation falls under a case where the change in the purpose of reclamation may be allowed under Article 49(1) of that Act, the purpose of reclamation of such reclaimed land shall be deemed changed to land for the development plan after obtaining approval from the Minister of Oceans and Fisheries as at the time the implementation plan is approved, notwithstanding Article 48 of that Act and Article 3 of the Addenda to the Public Waters Reclamation Act (Act No. 5911). <Amended on May 30, 2011; Mar. 23, 2013>

(2) Deleted. <Feb. 29, 2008>

(3) Where an operator intends to use any reclaimed land by changing the purpose of the reclamation thereof, he or she shall attach the following documents to the development plan: <Amended on May 30, 2011>

1. Document verifying that it falls under any of the subparagraphs of Article 49(1) of the Public Waters Management and Reclamation Act;

2. Other documents prescribed by Presidential Decree.

(4) Re-appraisal of reclaimed land, the purpose of reclamation of which is changed pursuant to paragraphs (1) and (3), public notice of changes in the purpose of reclamation, registration of changes, acquisition of the ownership of re-appraised reclaimed land, etc. shall be governed by Articles 49(2) and (4) through (6) and 50 of the Public Waters Management and Reclamation Act. <Amended on May 30, 2011>

(5) Where a development plan is approved pursuant to Article 11, the right to reclaim may be transferred to the operator before the completion authorization of reclamation, notwithstanding Article 35(2) of the Public Waters Management and Reclamation Act. <Amended on May 30, 2011>

(6) Deleted. <Dec. 2, 2025>

(7) Notwithstanding Article 46(1)3 of the Public Waters Management and Reclamation Act, a development project operator shall acquire ownership in the relevant reclaimed land within the range of the sum of the total project costs he or she has incurred under that paragraph and the value of transfer or acquisition by transfer of the right of reclamation. In such cases, a transferor of the right to reclaim shall refer to any of those who fall under any of the subparagraphs of Article 4(1). <Added on Jun. 4, 2013; Jun. 9, 2020>

(8) Where an operator is transferred the right of reclamation pursuant to paragraph (5), he or she shall be deemed to have obtained a reclamation license pursuant to Article 28 of the Public Waters Management and Reclamation Act. In such cases, Article 28(4) of the Public Waters Management and Reclamation Act shall not apply thereto. <Amended on May 30, 2011; Jun. 4, 2013>

(9) Where an implementer acquires the right to reclaim in accordance with paragraph (5), the value of transfer or acquisition by transfer of the right of reclamation and the value of a reclaimed land for the acquisition of a reclaimed land's ownership in accordance with Article 46 of the Public Waters Management and Reclamation Act shall be calculated by appraising and assessing the value thereof considering the status of actual use at the time an enterprise city is designated, but causes of changes in land prices due to a development project, such as the designation of a development zone, shall not be considered. <Added on Dec. 2, 2025>

(10) The provisions of paragraphs (1) through (5) and paragraphs (7) through (9) shall apply exclusively to reclaimed land for which a reclamation license has been obtained in accordance with Article 28 of the Public Waters Management and Reclamation Act or for which consultation about or approval for reclamation conducted by the State, etc., has been undertaken or obtained pursuant to Article 35 of that Act before the Special Act on the Development of Enterprise Cities (Act No. 7310) enters into force. <Amended on May 30, 2011; Jun. 4, 2013; Dec. 2, 2025>

[Title Amended on Apr. 15, 2010]

[The amended provisions of Article 33(6) of the Act (Act No. 18045, Apr. 13, 2021) shall remain effective until April 12, 2024 by Article 2 of the Addenda of that Act]

Article 34-2(Selective application of special regulation) #

(1) A person who proposes the designation of a development zone pursuant to Article 4 may formulate a plan for special regulation including each of the following matters (hereafter referred to as "plan for special regulation" in this Article) in order to be selectively applied by special regulation in each subparagraph of paragraph (2) that fit the characteristics of the enterprise city. In such cases, the plan for special regulation shall be included in the development plan under Article 11:

1. Business and moving-in enterprises subject to application of special regulation within the development zone;

2. Matters treated as special regulation, which he or she intends to be applied among the matters construed as special regulation under each subparagraph of paragraph (2), and the necessity and scope for applying such special regulation;

3. Other matters prescribed by Presidential Decree that are necessary to be treated as special regulation.

(2) Matters to be treated as special regulation, which are applicable to enterprise cities by formulating a plan for special regulation, shall be as follows: <Amended on Sep. 15, 2011; Jan. 14, 2014; Mar. 27, 2018; Apr. 30, 2019; Dec. 22, 2020; Dec. 29, 2020>

1. Special cases concerning the Building Act:

Any outdoor exhibition or filming facility built to run business related to culture and art in a development zone shall be deemed to be subject to reporting under paragraph (3) of that Article, notwithstanding Article 20 of the Building Act;

2. Special cases concerning the Act on Distribution and Price Stabilization of Agricultural and Fishery Products:

Notwithstanding Article 17(1) and (2) of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, a local government that has jurisdiction over a development zone may establish local wholesale markets without obtaining permission from the relevant Do Governor. In such cases, the local government that has jurisdiction over the development zone shall be deemed the establisher of the local wholesale markets under the Act on Distribution and Price Stabilization of Agricultural and Fishery Products when that Act applies to the local wholesale markets;

3. Special cases concerning the Road Traffic Act:

If necessary to manage moving-in enterprises, the head of a Si/Gun that has jurisdiction over a development zone may request the commissioner of a police agency of a City/Do or the chief of the competent police station, to take measures to prohibit or control road traffic of horses and vehicles or trams, etc. In such cases, notwithstanding Article 6 of the Road Traffic Act, the commissioner of a police agency of a City/Do or the chief of the competent police station shall take necessary measures without delay, unless there is a compelling reason not to do so;

4. Special cases concerning the Monopoly Regulation and Fair Trade Act:

Joint research, technical development, etc., conducted by moving-in enterprises in a development zone shall be deemed authorized by the Fair Trade Commission under Article 40(2) of the Monopoly Regulation and Fair Trade Act. In such cases, the necessity for and details of the relevant exceptional application and other matters prescribed by Presidential Decree shall be included in the plan for special regulation;

5. Special cases concerning the Museum and Art Gallery Support Act:

Notwithstanding Article 16 of the Museum and Art Gallery Support Act, a person who establishes and operates a museum or art gallery may hire curators in partnership with another person, as prescribed by Presidential Decree.

6. Special cases concerning the Elementary and Secondary Education Act:

Notwithstanding Article 21 of the Elementary and Secondary Education Act, the head of a school under Article 2 of that Act that is established in a development zone may employ foreigners satisfying the qualification requirements prescribed by Presidential Decree as foreign language teachers and lecturers to provide specialized foreign language education;

7. Special cases concerning the Immigration Act:

Notwithstanding Articles 8 and 10 of the Immigration Act, the procedure of issuing visas to foreigners who conduct business or work for moving-in enterprises in a development zone and the maximum period of sojourn for each status of sojourn permissible for those foreigners on each occasion may be otherwise prescribed by Presidential Decree. In such cases, when an application is filed for the issuance of a visa, etc., the confirmation of the head of the competent Si/Gun shall be obtained as prescribed by Presidential Decree;

8. Special cases concerning foreign-capital invested companies:

a. No foreign-capital invested company under Article 2(1)6 of the Foreign Investment Promotion Act that moves into a development zone (hereinafter referred to as "moving-in foreign-capital invested company") shall be governed by the provisions of Article 33-2 of the Act on the Honorable Treatment and Support of Persons of Distinguished Service to the State, Article 39 of the Act on Support for Persons Eligible for Veteran's Compensation, Article 28 of the Act on the Employment Promotion and Vocational Rehabilitation of Persons with Disabilities, and Article 12 of the Act on Prohibition of Age Discrimination in Employment and Elderly Employment Promotion;

b. Notwithstanding Articles 55 and 73 of the Labor Standards Act, any moving-in foreign-capital invested company may grant its workers unpaid leave or its female workers unpaid monthly menstruation leave, and no moving-in foreign-capital invested company shall be subject to Article 57 of that Act;

c. Notwithstanding Articles 5 and 6 of the Act on the Protection of Temporary Agency Workers, with respect to moving-in foreign-capital invested companies, the Minister of Employment and Labor may expand the scope of affairs permitted for the placement of temporary agency workers or extend the period of temporary employment for the business types that have undergone deliberation and resolution by the Committee;

d. Any Do Governor or the head of any Si/Gun who has jurisdiction over a development zone shall provide foreign language services, such as the publication, receipt and handling of documents, etc., in foreign languages, to enhance the convenience of moving-in foreign-capital invested companies and foreigners. In such cases, matters necessary for the scope, method, etc. of providing such services shall be prescribed by Presidential Decree.

(3) In order to ensure the efficient utilization of new technologies in enterprise cities, the head of a Si/Gun and the operator of a development project shall support moving-in enterprises so that they may be granted temporary permission, demonstration, special cases for application of regulations, etc. under the following statutes, and the head of a central administrative agency in receipt of an application for such special cases shall actively examine the application thereof: <Added on Feb. 13, 2024>

1. The Special Act on Support for Financial Innovation;

2. The Industrial Convergence Promotion Act;

3. The Act on the Promotion of Smart City Development and Industry;

4. The Special Act on the Promotion of Information and Communications Technology, Vitalization of Convergence Thereof;

5. Statutes stipulating the permit-first-regulate-later principle pursuant to Article 5-2 of the Framework Act on Administrative Regulation.

[This Article Wholly Amended on May 30, 2011]

Article 39(City Development Committee) #

(1) The City Development Committee shall be established under the jurisdiction of the Ministry of Land, Infrastructure and Transport to deliberate on policies and other important matters concerning enterprise cities, innovation cities under the Special Act on the Construction and Development of Innovation Cities (hereafter referred to as "innovation cities" in this Article), and urban convergence special zone under the Special Act on the Construction and Fostering of Urban Convergence Special Zone (hereafter referred to as "urban convergence special zone" in this Article). <Amended on Mar. 23, 2013; Dec. 26, 2017; Oct. 24, 2023>

(2) The Committee shall deliberate on the following: <Amended on Dec. 26, 2017; Oct. 24, 2023; Feb. 13, 2024>

1. Matters concerning the basic policies and systems for enterprise cities;

2. Matters concerning the designation, modification, and cancellation of development zones;

3. Matters concerning the basic concept of and development plans for enterprise cities;

4. Matters concerning the implementation plans for enterprise cities;

4-2. Matters concerning integrated plans;

5. Matters concerning the coordination of opinions between the heads of central administrative agencies and the heads of local governments in connection with enterprise cities;

6. Other matters subject to deliberation by the Committee pursuant to the Special Act on the Construction and Development of Innovation Cities.

7. Matters subject to deliberation by the Committee pursuant to the Special Act on the Construction and Fostering of Urban Convergence Special Zone;

(3) The Committee shall be comprised of at least 20, but not exceeding 30, members including two chairpersons.

(4) 1 of the 2 chairpersons shall be the Minister of Land, Infrastructure and Transport and the other shall be elected by mutual vote among civil members under subparagraph 1; and other members shall be the following persons: <Amended on Mar. 23, 2013; Oct. 24, 2023>

1. Civil members: Persons with abundant knowledge and experience in enterprise cities, innovation cities, or urban convergence special zone who are commissioned by the Minister of Land, Infrastructure and Transport;

2. Governmental members: Vice Ministers or public officials in equivalent positions of relevant central administrative agencies prescribed by Presidential Decree.

(5) A member referred to in paragraph (4) (hereafter in this Article referred to as "member") who falls under any of the following shall be excluded from deliberations and decisions by the Committee: <Added on Jan. 19, 2016>

1. When a member or a person who is or was his or her spouse is a party to the relevant case (when a party is a corporation, organization, etc., including its executives; hereafter the same shall apply in this subparagraph and subparagraph 2), or is a joint holder of any right or an obligor together with a party to the relevant case;

2. When a member has or had a relationship by blood with a party to the relevant case;

3. When a member has provided or conducted advice, research, service (including subcontracts), appraisal, or investigation in relation to the relevant case;

4. When a member, or the corporation, organization, etc. where a member belongs, is or was involved in the relevant case as the representative of a party;

5. When a corporation, etc. where a member is currently serving as an executive officer or employee, or had served as such during a certain period over the most recent three years, have provided or conducted advice, research, service (including subcontracts), appraisal or investigation in relation to the relevant case.

(6) Where a party to the relevant case has a ground to believe that it is impractical to expect impartial deliberation and resolution by any member, the relevant party may file a request for challenge against such member with the Committee, and the Committee shall make a decision on such request by resolution. In such cases, the member subject to the request for challenge shall not participate in the resolution by the Committee.

(7) Where a member falls under any ground for exclusion prescribed in the subparagraphs of paragraph (5), he or she shall voluntarily refrain from the deliberation and resolution by the relevant case. <Added on Jan. 19, 2016>

(8) Where any member falls under any of the following, the Minister of Land, Infrastructure and Transport may dismiss such member: <Added on Jan. 19, 2016>

1. When he or she is unable to perform his or her duties due to mental illness;

2. When he or she is deemed inappropriate to serve as a member due to such grounds as neglect of duties, injury to dignity, etc.;

3. When he or she fails to refrain from the deliberation and resolution by the Committee even though he or she falls under any ground for exclusion prescribed in the subparagraphs of paragraph (5), in violation of paragraph (7).

(9) Matters necessary for the organization, operation, etc. of the Committee, excluding those provided for in this Act, shall be prescribed by Presidential Decree. <Amended on Jan. 19, 2016>

[This Article Wholly Amended on May 30, 2011]

Article 39-2(Establishment of working committee) #

(1) The Committee may establish a working committee which deliberates on matters delegated by the Committee for the efficient operation thereof. In such cases, matters deliberated by the working committee shall be deemed deliberated by the Committee.

(2) The chairperson of the working committee shall hear the opinion of the Committee on the result of deliberation by the working committee, and where the chairperson of the Committee deems it necessary to redeliberate on the result of the relevant deliberation, the Committee shall redeliberate on the result thereof.

(3) Members of the working committee shall be appointed or commissioned from among the following persons; the chairperson of the working committee shall be elected by committee members from among persons falling under subparagraph 2; and the chairperson of the working committee may appoint a public official of the Ministry of Land, Infrastructure and Transport as vice chairperson, from among the persons under subparagraph 1, if necessary to facilitate deliberation:

1. The head of the relevant central administrative agency or the head of the relevant division of a City/Do having jurisdiction over the relevant development zone or innovation city (hereinafter referred to as the "City/Do"), to which the innovation district belongs, who is a member of the Senior Executive Service (referring to a public official of Grade III or higher in cases of a City/Do); and a member of the Senior Executive Service belonging to the Ministry of Land, Infrastructure and Transport who is in charge of affairs related to development zones or innovation cities;

2. A person commissioned by the Chairperson of the Committee from among experts with extensive knowledge of and experience in urban planning, construction, traffic, environment, or disasters;

3. A person who is recommended by the chairperson of the committee, from among the members of the following committees:

a. The Central Building Committee under Article 71(4) of the Building Act;

b. The Landscape Committee established in the City /Do pursuant to Article 29 of the Landscape Act;

c. The City/Do Educational Environment Protection Committee under Article 5 of the Educational Environment Protection Act;

d. The National Transport Committee under Article 106 of the National Transport System Efficiency Act;

e. The Metropolitan Area Intercity Transport Commission under Article 8 of the Special Act on the Management of Intercity Transport in Metropolitan Areas;

f. Traffic impact assessment deliberation committees under the jurisdiction of the Minister of Land, Infrastructure and Transport under Article 19 of the Urban Traffic Improvement Promotion Act;

g. Mountainous district management committees with the authority to deliberate on plans to use mountainous districts belonging to development zones pursuant to Article 22 of the Mountainous Districts Management Act;

h. Disaster impact assessment deliberative committee under Article 4(8) of the Countermeasures against Natural Disasters Act;

4. A person recommended by the chairperson of the City/Do urban planning committee established in the relevant City/Do pursuant to Article 113(1) of the National Land Planning and Utilization Act, including at least 1 urban planning expert, 1 design expert, and 1 environmental expert, from among members of the committee.

(4) Matters necessary for composition, operation, etc. of the working committee such as the minimum number of committee members from each category under the subparagraphs of paragraph (3) shall be prescribed by Presidential Decree.

[This Article Added on Feb. 13, 2024]

Article 43(Designation overlapping with development project zones under other statutes) #

(1) The Minister of Land, Infrastructure and Transport may designate a development zone already designated as a development project zone under other statutes (hereafter referred to as "existing project zone" in this Article), such as housing site development zone under the Housing Site Development Promotion Act and industrial complex under the Industrial Sites and Development Act. <Amended on Mar. 23, 2013>

(2) Where the Minister of Land, Infrastructure and Transport has designated a development zone in an existing project zone, he or she may request the holder of authority for designation of the existing project zone to cancel such designation, after undergoing deliberation by the Committee, if the project in the existing project zone falls under all of the following: <Amended on Mar. 23, 2013>

1. Where the project conducted in the existing project zone seriously hampers the execution of the development project;

2. Where the execution of the development project makes a clearly more substantial contribution to the public good than the project implemented in the existing project zone.

(3) Upon receipt of the request under paragraph (2), the holder of authority for designation shall cancel the designation of the existing project zone under relevant statutes without delay, unless there is a compelling reason not to do so, and give notice of such fact to the Minister of Land, Infrastructure and Transport after publishing it in the Official Gazette or in the official bulletin of the relevant local government. <Amended on Mar. 23, 2013>

(4) Where an existing project zone is canceled pursuant to paragraph (3) and an operator expropriates land, etc. within the existing project zone pursuant to Article 14, such operator shall reimburse expenses incurred on survey, design, etc. spent for the execution of the existing project when compensating for such expropriation under the Act on Acquisition of and Compensation for Land for Public Works Projects.

(5) Where an existing project zone is canceled pursuant to paragraphs (1) through (3) after the relevant existing project operator acquired land within the existing project zone by agreement or expropriated such land, notwithstanding paragraph (6) of that Article, the period for exercising the right to repurchase under Article 91(1) and (2) of the Act on Acquisition of and Compensation for Land for Public Works Projects shall be calculated from the date on which an operator acquires the land by agreement or expropriates the land from the existing project operator, considering that the existing public project is changed to a development project under this Act.

(6) An operator shall give notice of any changes made in the public project under paragraph (5) to the holder of the right to repurchase, as prescribed by Presidential Decree.

[This Article Wholly Amended on May 30, 2011]

Article 48(Revocation of designation of operators and designation of alternative operators) #

(1) The Minister of Land, Infrastructure and Transport may revoke designation as an operator if the operator falls under any of the following: <Amended on Mar. 23, 2013>

1. Where the operator fails to commence a development project in the land planned for his or her direct use pursuant to Article 16(1) or the progress of the development project is considerably poor in light of the project implementation plan;

2. Where the operator fails to deal with matters agreed with the head of a Si/Gun until the end of a stipulated period or has no intention to deal with them;

3. Where the operator violates this Act or any order or disposition under this Act and due to this reason, the revocation of designation as the operator is required for the public interest;

4. Where the operator has obtained permission, designation, approval, etc. under this Act by wrongful means.

(2) If the Minister of Land, Infrastructure and Transport revokes designation as an operator pursuant to paragraph (1), he or she may designate any of the following persons as an alternative operator: <Amended on Mar. 23, 2013>

1. Private enterprise;

2. State organ or a local government;

3. Public enterprise under Article 5 of the Act on the Management of Public Institutions;

4. Local public enterprise under the Local Public Enterprises Act.

(3) An operator alternatively designated pursuant to paragraph (2) shall succeed to the status of the former operator concerning the approval of the relevant business plan and implementation plan.

(4) If the Minister of Land, Infrastructure and Transport revokes designation as an operator pursuant to paragraph (1), he or she may order the former operator to sell the land he or she has purchased for the relevant project to the alternatively designated operator under paragraph (2). In such cases, the Minister of Land, Infrastructure and Transport shall give notice of such fact to the alternatively designated operator. <Amended on Mar. 23, 2013>

(5) If an operator alternatively designated pursuant to paragraph (2) is notified of an order for selling under paragraph (4), he or she shall commence negotiations with the former operator on the purchase of the relevant land without delay.

(6) The base price for the purchase negotiations under paragraph (5) shall be the sum of the land purchase price and the amount obtained by multiplying the land purchase price by a statutory rate of interest provided in the Civil Act; provided, when the amount obtained by the calculation under the main clause is larger than the market price, the base price shall be the market price.

(7) Article 131(2) through (4) of the National Land Planning and Utilization Act shall apply mutatis mutandis to the determination of the purchase price under paragraph (5). In such cases, the Land Tribunal having jurisdiction over the adjudication on the determination of the purchase price shall be the Central Land Tribunal.

(8) With respect to an order to sell issued pursuant to paragraph (4), if the operator has already yielded gains (referring to an amount of money obtained by deducting the land acquisition expenses, land preparation expenses and other incidental expenses prescribed by Presidential Decree from the selling price) by selling the relevant land to a third party, the Minister of Land, Infrastructure and Transport shall redeem such gains. <Amended on Mar. 23, 2013>

(9) The amount of redemption under paragraph (8) shall be imposed and collected in the same manner as delinquent national taxes are collected.

[This Article Wholly Amended on May 30, 2011]

SPECIAL ACT ON THE DEVELOPMENT OF ENTERPRISE CITIES

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Relationship to other statutes) #

Article 4(Proposals for designation of development zones) #

Article 5(Designation of development zones) #

Article 6(Requirements for designation of development zones) #

Article 7(Cancellation of designation of development zones) #

Article 8(Estimation and reinvestment of development gains) #

Article 9(Restrictions on acts) #

Article 10(Designation of development project operators) #

Article 11(Approval of development plans) #

Article 12(Approval of implementation plans) #

Article 12-2(Approval of integrated development plans) #

Article 12-3(Integrated deliberation) #

Article 13(Legal fiction of relevant authorization and permission) #

Article 13-2(Methods of implementing development projects) #

Article 14(Expropriation and use of land, etc.) #

Article 14-2(Replotting for landowners) #

Article 15(Issuance of land redemption bonds) #

Article 16(Direct use of land) #

Article 17(Completion inspection) #

Article 18(Public announcement of completion of works) #

Article 19(Apportionment of costs) #

Article 20(Post-adjustment of cost-sharing) #

Article 21(Advance payment) #

Article 22(Disposal of prepared land or raw land) #

Article 23(Access to third party’s land) #

Article 24(Vesting of public facilities) #

Article 25(Reduction of or exemption from taxes or charges) #

Article 26(Tax and financial support) #

Article 27(Restrictions on disposal of State or public land) #

Article 28(Special cases concerning formulation of metropolitan transport improvement measures) #

Article 29(Special cases concerning the Installation and Utilization of Sports Facilities Act) #

Article 30(Special cases concerning the Tourism Promotion Act) #

Article 31(Special cases concerning housing supply) #

Article 32 #

Article 33(Special cases concerning the Public Waters Management and Reclamation Act) #

Article 33-2(Special cases concerning the National Land Planning and Utilization Act) #

Article 34(Provision of funds and budgets) #

Article 34-2(Selective application of special regulation) #

Article 35(Special cases concerning establishment of private schools) #

Article 36(Special cases concerning operation of schools and curricula) #

Article 36-2(Provision of convenience in transfer and enrollment) #

Article 37(Installation and operation of medical institutions) #

Article 38(Special cases concerning establishment of foreign educational institutions) #

Article 39(City Development Committee) #

Article 39-2(Establishment of working committee) #

Article 40(Establishment of enterprise city management councils) #

Article 41(Establishment of office of enterprise city promotion and planning) #

Article 42(Measures to stabilize real estate prices and prevent reckless development) #

Article 43(Designation overlapping with development project zones under other statutes) #

Article 44(Contributions to local economic development) #

Article 45(Support for development of enterprise cities) #

Article 46(Reporting or inspection) #

Article 47(Administrative dispositions against violators of statutes) #

Article 48(Revocation of designation of operators and designation of alternative operators) #

Article 49(Hearings) #

Article 50 #

Article 51(Delegation of authority) #

Article 51-2(Legal fiction as public officials for purposes of penalty provisions) #

Article 52(Penalty provisions) #

Article 53(Penalty provisions) #

Article 54(Penalty provisions) #

Article 55(Joint penalty provisions) #

Article 56(Administrative fines) #