Article 29(Lease contracts for general property) #
(1) In any of the following cases, general property may be leased through a private contract under the proviso of Article 29 (1) of the Act: <Amended on Aug. 4, 2010; Jul. 7, 2014; Feb. 16, 2015; Jul. 20, 2015; Jul. 12, 2016; Jul. 26, 2017; Jan. 9, 2018; Dec. 4, 2018; Jul. 2, 2019; Dec. 22, 2020; Jun. 28, 2022; Aug. 22, 2023>
1. Where the State, a local government, a public corporation, or a public interest corporation intends to use the property directly;
2. Where farmland not exceeding 10,000 square meters in area is leased to a farmer residing in the local government concerned for cultivation purposes;
3. Where property, due to its nature or for social policy reasons, is difficult to sell through an open competitive bid process;
4. Where forest land is leased for purposes such as stock raising, mining, or quarrying;
5. Where property within a government office compound is leased for the welfare of public officials;
6. Where property is leased for compensation to a person to whom the property may be transferred gratuitously or leased free of charge under any statute;
7. Deleted; <Jul. 12, 2016>
8. Where a site surrounded by the same person's private land is leased;
9. Where land without a building thereon is smaller than the minimum lot size under Article 57 (1) of the Building Act and is leased to the owner of adjacent private land who has an interest in that land;
10. Where the price calculated by the method under each subparagraph of Article 31 (2) (in the case of leasing part of general property, referring to the price of the entire general property) at the time of application for a lease contract is not more than 30 million won (50 million won in the case of property located in an autonomous Gu of a Special Metropolitan City or a Metropolitan City);
11. Where 2 valid open competitive bid processes have failed to be concluded;
12. Where deemed necessary by a municipal ordinance for the production, exhibition, and sale of local specialty products or local products that can contribute to revitalizing the local economy;
13. Where property is leased to a person relocating facilities falling under subparagraphs 1 through 3 and 5 of Article 3 of the Enforcement Decree of the Seoul Metropolitan Area Readjustment Planning Act to a local area to relocate such facilities;
14. Where the owner of a public facility being relocated for a project implemented by a local government intends to use property directly related to the said facility during the relocation period;
15. Where a person who intends to newly construct a building, etc. for donation uses the site during the construction period;
16. Where property is leased for the purpose of disaster recovery and relief;
17. Where property is leased to a nonprofit public corporation invested in or contributed to by the local government concerned;
18. Where property is temporarily used on the condition of voluntary demolition for public purposes;
19. Where property is leased to attract any of the following facilities with at least 10 full-time employees residing in the relevant area to revitalize the local economy; in such cases, detailed selection criteria, selection procedures, and methods for lease candidates shall be determined and publicly notified by the Minister of the Interior and Safety:
a. Factories or research facilities and their support facilities;
b. Tourism facilities under Article 3 of the Tourism Promotion Act or cultural facilities under Article 2 of the Culture and Arts Promotion Act designated by the Minister of the Interior and Safety as having a significant job creation effect;
c. Other facilities deemed necessary by a municipal ordinance for revitalizing the local economy;
20. Where property is leased for use by unemployed youth, etc. under a job creation policy established by the head of a local government;
21. Where property is leased to a person entitled to priority leasing of public property under other statutes;
22. Where property, whose use is restricted to a specific project under other statutes, is leased to the project operator;
23. Where property is leased to attract government-funded research institutes, etc. or specialized production technology research institutes under Article 42 (1) of the Industrial Technology Innovation Promotion Act;
24. Where public property is leased as a start-up space to start-up enterprises under the Support for Small and Medium Enterprise Establishment Act;
25. Where property is leased to an enterprise or association under Article 13 (3) 22 items that meets the employment ratio for the vulnerable class prescribed and publicly notified by the Minister of the Interior and Safety;
26. Where property is leased to an enterprise falling under Article 19 (2) of the Employment Insurance Act as a priority support enterprise, which is publicly announced by the Minister of Employment and Labor as having youth-friendly working conditions;
27. Where property is leased to a person eligible for exemption from lease fees under Article 34 (1) of the Act or other statutes;
28. Where, due to the location, shape, or use of the general property, or the purpose or nature of the contract, it is deemed difficult to put the property up for an open competitive bid process, and the details and scope are prescribed by municipal ordinance.
(2) "Property, due to its nature or for social policy reasons, is difficult to sell through an open competitive bid process" in paragraph (1) 3 means any of the following property: <Amended on Aug. 4, 2010>
1. Buildings located on privately owned land;
2. Sites on which privately owned buildings are located; provided, where no structures are installed on the boundary, such sites shall be limited to those not exceeding 660 square meters;
3. Property on which structures have been installed with permission;
4. Share of public property;
5. Property installed for disaster restoration or other relief projects;
6. Property for which the person subject to sale is specified by statute or a court judgment.
(3) With respect to cases where general property may be leased by selective competitive bid process under the proviso of Article 29 (1) of the Act, Article 13 (4) shall apply mutatis mutandis. <Added on Apr. 20, 2022>
(4) General property may be leased by a nominated competitive bid process if it falls under any of the following cases under the proviso of Article 29 (1) of the Act: <Added on Jul. 7, 2014; Jul. 12, 2016; Apr. 20, 2022>
1. Considering the use of the land, etc., where it is necessary to designate the owner of land adjacent to the relevant property for the competition;
2. Where applications for lease under paragraph (1) are in competition;
3. Where, in view of the location, shape, or use of the property, or the purpose or nature of the contract, it is necessary for the head of a local government to designate the person to lease the property.
(5) The head of a local government shall attach the conditions under subparagraphs 1 and 2 when leasing general property; provided, in cases of a lease under paragraph (1) 3 and 14, the condition under subparagraph 3 may additionally be attached: <Amended on Jul. 7, 2014; Apr. 20, 2022>
1. Where the State or a local government demands the return of the leased property for direct public or official use, it shall be returned immediately;
2. The lessee shall commence the project for which the property is leased within 1 year from the date of the lease contract and shall not use it for purposes other than those for which it is leased;
3. Where the head of a local government demands purchase, the property shall be purchased at the price demanded by the head of a local government.
(6) When leasing under paragraph (1), the estimated price of the rent shall be disclosed in advance, and when leasing by an open competitive bid process, selective competitive bid process, or nominated competitive bid process, any bid process submitted for less than the disclosed estimated price of the rent shall be null and void. <Amended on Aug. 4, 2010; Jul. 7, 2014; Apr. 20, 2022>
(7) A person whose lease contract has been rescinded or terminated due to his or her own fault may be denied a lease of the relevant property for 3 years from the date of rescission or termination. <Amended on Jul. 7, 2014>
(8) Where it is necessary to lease, in a stable manner for a long period, part of public facilities such as an international stadium, sports facilities, an international conference hall, conference facilities, an international exhibition hall, exhibition facilities, or other public facilities the use of which has been partially discontinued, the successful bidder shall be determined by examining the ability to perform the contract, the ability to pay the rent, and the ability to execute the project, in the order of the highest price among those who have participated in an open competitive bid process at a price not less than the estimated price. <Amended on Aug. 4, 2010; Jul. 7, 2014; Jul. 20, 2015>
[This Article Wholly Amended on Apr. 24, 2009]