ENFORCEMENT DECREE OF THE RESTITUTION OF EXCESS REBUILDING GAINS ACT

Article 1(Purpose) #

The purpose of this Decree is to provide for matters mandated by the Restitution of Excess Rebuilding Gains Act and those necessary for the enforcement thereof.

Article 2(Housing exempt from imposition) #

(1) "Housing prescribed by Presidential Decree" in the provisos of subparagraph 4 of Article 2 of the Restitution of Excess Rebuilding Gains Act (hereinafter referred to as the "Act") means the following housing, respectively: <Amended on Sep. 5, 2017; Feb. 19, 2021; Mar. 26, 2024>

1. Housing owned by the State or a local government;

2. Housing for lease, owned by a public institution under Article 4 of the Act on the Management of Public Institutions or by a local government-invested public corporation established to perform a housing project under Article 49 of the Local Public Enterprises Act (hereinafter referred to as "local government-invested public corporation");

3. Housing for lease, owned by an institution deemed the State or a local government as at the time of constructing and supplying housing under relevant statutes and regulations.

(2) "Housing prescribed by Presidential Decree" in the proviso of subparagraph 5 of Article 2 of the Act means the following housing: <Added on Mar. 26, 2024>

1. A house falling under any subparagraph of paragraph (1);

2. Housing supplied to the State, a local government, the Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act, or a local public corporation in accordance with the provisions specified in any of the following subparagraphs:

a. Article 55(1), the former part of Article 66(3), or Article 101-6(2) of the Act on the Improvement of Urban Areas and Residential Environments;

b. Article 43-5(1) or Article 49-2(3) and (5) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement;

3. Public rental housing provided to the State or local governments in accordance with Article 52-2(1)3 of the National Land Planning and Utilization Act.

Article 3(Evaluation criteria and procedures for support with recaptured money) #

(1) The head of a local government in the region where the rebuilding project site subject to rebuilding charges is located shall notify the Minister of Land, Infrastructure and Transport of the funds or accounts to which rebuilding charges are attributed under Article 4(1) of the Act and the plan for managing the relevant financial resources by the time the levy ends. <Amended on Feb. 29, 2008; Mar. 23, 2013; Nov. 16, 2023>

(2) "Other matters prescribed by Presidential Decree" in Article 4(4)3 of the Act means the efforts of each local government to lay the foundation for implementing the policies: <Amended on Sep. 15, 2020>

(3) In providing a local government with subsidies financed by rebuilding charges attributed to the Housing and Urban Fund under the Housing and Urban Fund Act (hereinafter referred to as the "Housing and Urban Fund") under Article 4(4) of the Act, the Minister of Land, Infrastructure and Transport shall determine the amount of subsidies based on assessment weighted by category as set forth in the subparagraphs below; provided, where the Minister of Land, Infrastructure and Transport deems it necessary to more efficiently distribute rebuilding charges, he or she may adjust the weight of each of the following categories by a ratio not exceeding 10/100 of the weight assigned to the relevant category and use the adjusted category weights for evaluation: <Amended on Feb. 29, 2008; Apr. 21, 2009; Mar. 23, 2013; Apr. 29, 2014; Jun. 30, 2015; Sep. 15, 2020>

1. The local government’s level of establishing residential infrastructure: 10 percent;

2. The results of evaluating the actual conditions of residential welfare for the local government: 30 percent;

3. The local government’s efforts to promote residential welfare: 45 percent;

4. The local government’s track record in housing projects such as public housing: 15 percent;

5. Deleted. <Sep. 15, 2020>

(4) The Minister of Land, Infrastructure and Transport shall determine and publicly notify detailed criteria on weights under paragraph (3). <Amended on Feb. 29, 2008; Mar. 23, 2013>

(5) In evaluating each local government for matters stipulated in the subparagraphs of paragraphs (3) by using weights under paragraphs (3) and (4), the Minister of Land, Infrastructure and Transport shall seek opinions from relevant specialists. <Amended on Feb. 29, 2008; Mar. 23, 2013>

Article 4(Criteria for allocating rebuilding charges to members of associations) #

(1) "Matters prescribed by Presidential Decree, such as the value of the former assets appraised for each member" in Article 6(3) of the Act means the following: <Amended on Sep. 5, 2017; Feb. 9, 2018; Feb. 19, 2021; Mar. 26, 2024>

1. The price of the housing subject to imposition at the time of commencement for each union member (referring to the person specified in the relevant item if the project implementer falls under any of the following items; hereinafter the same shall apply):

a. Where a project implementer falls under any of the following: The owner of land, etc. referred to in subparagraph 9b of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments or Article 2(1)6b of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement:

1) Where the project implementer is a public implementer designated pursuant to Article 26(1) the Act on the Improvement of Urban Areas and Residential Environments (excluding subparagraph 1 of the aforesaid paragraph) or Article 18(1) (excluding subparagraph 1 of the aforesaid paragraph) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement (hereinafter referred to as "public implementer");

2) Where the project implementer is a residents‘ council for a small-scale housing reconstruction project organized under Article 22(1) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement (hereinafter referred to as the "residents' council");

b. Where a project implementer is a trust business entity designated pursuant to Article 27(1)3 of the Act on the Improvement of Urban Areas and Residential Environments or Article 19(1) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement Housing (hereinafter referred to as "trust business entity"): Trustor;

2. The price estimate of the housing subject to imposition as at the time the charges cease to accrue for each union member;

3. The liquidation amount for each member of an association under Article 89 of the Act on the Improvement of Urban Areas and Residential Environments or Article 41 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement.

(2) A union (referring to a reconstruction union established pursuant to Article 35 of the Act on the Improvement of Urban Areas and Residential Environments or Article 23 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement; hereinafter the same shall apply), a public implementer, a trust business entity, or a residents‘ council (hereinafter referred to as the "union, etc.") shall determine the sharing ratio of the rebuilding charges for each member based on the proportion of the net profit for each union member out of the aggregate of the net profit for each member calculated in consideration of the matters referred to in each subparagraph of paragraph (1). <Amended on Sep. 5, 2017, Feb. 9, 2018, Mar. 26, 2024>

Article 5(Time charges start to accrue) #

"Date prescribed by Presidential Decree" in Article 8(1)4 of the Act means any of the following dates: <Amended on Feb. 19, 2021; Mar. 26, 2024>

1. If a union is divided, the date on which authorization for the establishment of the relevant union is first obtained prior to division;

2. The date it is determined that the Special Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/autonomous Gu (hereinafter referred to as "head of a Si/Gun/Gu") directly implements the rebuilding project under Article 18(1) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement; or the date the Korea Land and Housing Corporation established under the Korea Land and Housing Corporation Act or a local government-invested public corporation is first designated as the project operator (this applies only where no residents' council is formed.);

3. The date a trust business entity is first designated as the project operator under Article 19(1) of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement (only where no residents' council is formed);

4. Deleted; <Mar. 26, 2024>

5. Deleted. <Mar. 26, 2024>

[This Article Wholly Amended on Feb. 9, 2018]

Article 6(Calculating value of housing) #

(1) Where a member of an association who owns an appurtenant facility or welfare facility defined in the Housing Act (hereafter in this Article referred to as "appurtenant facility, etc.") is supplied with housing subject to imposition at the time the charges cease to accrue under the proviso of Article 9(1) of the Act, the sum of the prices of the appurtenant facility, etc. added to the sum of housing prices subject to imposition calculated under the main clause of Article 9(1) of the Act shall be an amount obtained by aggregating the prices of the appurtenant facility, etc. assessed and calculated according to the following classification for each member of the association. In such cases, Article 74(4) of the Act on the Improvement of Urban Areas and Residential Environments shall apply to the method of appraisal, and the expenses incurred in conducting the appraisal shall be borne by the payment obligor: <Added on Aug. 2, 2022; Mar. 26, 2024>

1. Where housing is supplied under Article 63(2)2a of the Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments or Article 31(2)2a of the Enforcement Decree of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement: The price calculated by conducting an appraisal of the appurtenant facility, etc. at the time the charges start to accrue;

2. Where housing is supplied under Article 63(2)2b of the Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments or Article 31(2)2b of the Enforcement Decree of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement: The price calculated by multiplying the price obtained by conducting an appraisal of the appurtenant facility, etc. at the time the charges start to accrue by the ratio of the estimated value of the building site or unit to be sold to an eligible purchaser under Article 74(1)3 of the Act on the Improvement of Urban Areas and Residential Environments or Article 33(1)3 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement to the estimated value of the housing to be sold to the eligible purchaser; provided, upon request by the unions, etc., the price may be calculated by multiplying the price obtained by conducting an appraisal of the appurtenant facility, etc. at the time the charges start to accrue by the ratio of the appraised price of the building site or unit at the time the charges cease to accrue to the appraised price of the housing at the time the charges cease to accrue;

3. Where housing is supplied under Article 63(2)2c of the Enforcement Decree of the Act on the Improvement of Urban Areas and Residential Environments or Article 31(2)2c of the Enforcement Decree of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement: The price calculated by conducting an appraisal of the appurtenant facility, etc. at the time the charges start to accrue;

Article 6-2(Request for calculating adjusted value of housing at time charges start to accrue) #

(1) The Minister of Land, Infrastructure and Transport shall request the Korea Real Estate Board under the Korea Real Estate Board Act (hereinafter referred to as the "Korea Real Estate Board") to investigate and calculate the adjusted value of housing at the time the charges start to accrue under Article 9(2) of the Act.

(2) Upon receipt of a request to investigate and calculate the value of housing pursuant to paragraph (1), the Korea Real Estate Board shall submit a report on the investigation and calculation of the value of housing to the Minister of Land, Infrastructure and Transport, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(3) Where it is deemed that the investigation and calculation of the value of housing performed by the Korea Real Estate Board are unreasonable, the Minister of Land, Infrastructure and Transport may request the Korea Real Estate Board to investigate or calculate it again, stating the detailed grounds therefor.

(4) Where the Minister of Land, Infrastructure and Transport requests the Korea Real Estate Board to investigate and calculate the value of housing pursuant to paragraph (1), he or she shall pay fees determined by the Minister of Land, Infrastructure and Transport.

[This Article Added on Feb. 19, 2021]

Article 7(Selection of institution specialized in investigating real estate prices) #

(1) "Institution specialized in investigating and calculating real estate prices ... as prescribed by Presidential Decree" in the former part of Article 9(3) of the Act means the Korea Real Estate Board. <Amended on Feb. 19, 2021>

(2) The Minister of Land, Infrastructure and Transport shall request the Korea Real Estate Board to investigate and calculate the value of housing at the time the charges cease to accrue under the former part of Article 9(3) of the Act and paragraph (1) of this Article. <Amended on Feb. 29, 2008; Mar. 23, 2013; Sep. 5, 2017; Dec. 8, 2020; Feb. 19, 2021>

(3) Article 6-2(2) through (4) shall apply mutatis mutandis to the investigation and calculation of the value of housing at the time the charges cease to accrue by the Korea Real Estate Board under paragraph (2). <Added on Feb. 19, 2021>

(4) Where Article 6-2(3) applies mutatis mutandis pursuant to paragraph (3), the value investigated and calculated again by the Korea Real Estate Board shall be deemed the value of housing at the time the charges cease to accrue. <Added on Feb. 19, 2021>

(5) Deleted. <Feb. 19, 2021>

(6) Deleted. <Feb. 19, 2021>

(7) Deleted. <Feb. 19, 2021>

Article 8(Calculation of normal appreciation in housing Prices) #

(1) The Minister of Land, Infrastructure and Transport shall calculate and publicly notify interest rate on term deposits, taking into account the average interest rate on one year term deposits offered by financial institutions under Article 10(1) of the Act. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(2) The average rate of appreciation in housing prices for the period before statistics on housing prices of a Special Self-Governing City, Special Self-Governing Province, and Si/Gun/autonomous Gu (hereinafter referred to as "Si/Gun/Gu") are produced pursuant to the proviso of Article 10(2) of the Act shall be determined based on the results of investigation and calculations performed by the Korea Real Estate Board at the request of the Minister of Land, Infrastructure and Transport, after deliberation by the Central Commission on the Public Announcement of Real Estate Values under the proviso of Article 10(2) of the Act. <Amended on Feb. 29, 2008; Jul. 27, 2009; Mar. 23, 2013; Aug. 31, 2016; Sep. 5, 2017; Dec. 8, 2020>

(3) Upon determining the average rate of appreciation in housing prices under paragraph (2), the Minister of Land, Infrastructure and Transport shall publicly notify the details thereof. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(4) The normal appreciation in housing prices under Article 10(1) of the Act for a subject period shorter than one month shall be calculated using the daily pro rata of either the interest rate on term deposits or the average rate of appreciation in housing prices for the relevant Si/Gun/Gu. <Amended on Sep. 5, 2017; Feb. 19, 2021>

Article 9(Calculation of development costs) #

(1) "Matters prescribed by Presidential Decree" in Article 11(1)5 of the Act means the following: <Amended on Mar. 4, 2010; Sep. 5, 2017; Feb. 9, 2018; Feb. 19, 2021; Aug. 2, 2022; Mar. 26, 2024>

1. Operating expenses of the unions, etc. (including the promoters' committee);

2. Expenses related to the construction of housing under Article 2(2)2 and 3;

(2) Detailed items constituting the amounts specified in the subparagraphs of Article 11(1) of the Act shall be as specified in the Appendix.

(3) The development costs under the subparagraphs of Article 11(1) of the Act shall be limited to the amounts the payment obligor presents with documentary evidence such as agreements, financing documents as well as documents evidencing tax payment after undergoing an accounting audit by an auditor defined in subparagraph 7 of Article of the Act on External Audit of Stock Companies among costs expended by the payment obligor in implementing the relevant rebuilding project (including small rebuilding projects under the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement). <Amended on Feb. 9, 2018; Oct. 30, 2018>

(4) Where the sum of development costs prescribed by Article 11(1)1,2 and 5 of the Act among the amounts suggested by the payment obligor under paragraph (3) exceeds an appropriate range in light of, among other things, the amounts stipulated in Article 57(6)2 through 7 of the Housing Act, the Minister of Land, Infrastructure and Transport shall confirm the appropriateness of the relevant development costs by such means as entrusting a specialized outside institution with an accounting audit; and shall not include in the development costs any costs the appropriateness of which cannot be verified. <Amended on Feb. 29, 2008; Mar. 23, 2013; Aug. 11, 2016>

(5) The Minister of Land, Infrastructure and Transport may establish and operate an advisory committee to seek opinions on the appropriateness of development costs before verifying the appropriateness thereof under paragraph (4); provided, where the authority to assess the value of housing under Article 9 of the Act is entrusted to the head of a Si/Gun/Gu, the head of a Si/Gun/Gu may establish and operate an advisory committee or seek opinions from a committee, etc. that performs functions similar thereto. <Amended on Feb. 29, 2008; Mar. 23, 2013; Sep. 5, 2017>

Article 10(Recognition of amount of capital gains tax as development costs) #

In assessing the amount of capital gains tax recognized as development costs under Article 13 of the Act, capital gains tax shall be calculated on a daily pro rata basis.

Article 10-2(Reduction of rebuilding charges) #

(1) "Things prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 14-2(1) of the Act means a family consisting of the following persons:

1. Union members;

2. Spouse of a union member;

3. A lineal ascendant of a union member or a lineal ascendant of the spouse of a union member, who is registered in the same resident registration card by household with the union member or the spouse of a union member;

4. A lineal descendant of a union member and the spouse thereof (limited to a person who is registered in the same resident registration record as the lineal descendant), who falls under any of the following items:

a. A person who is under the age of 19 at the time the levy ends;

b. A person who is 19 years of age or older as at the time the levy ends and is registered in the same resident registration card by household as the union member.

(2) Notwithstanding paragraph (1), a person specified in the relevant subparagraph shall be deemed belonging to a different household from the union members:

1. Where a union member or the spouse of a union member combines a household with a lineal ascendant for supporting their parents while living together, in which case at least one lineal ascendant of a union member or at least one lineal ascendant of the spouse of a union member is 60 years of age or older as at the time the levy ends (if the levy ends before March 27, 2024, it shall be March 27, 2024; hereafter the same shall apply in this paragraph): The lineal ascendant of a union member or the lineal ascendant of the spouse of a union member;

2. Where a lineal descendant and the spouse thereof a union member combines a household with the union member for supporting their parents while living together, in which case the union member and the spouse thereof is 60 years of age or older as at the time the levy ends: The lineal descendant and the spouse thereof of a union member.

(3) The term "quasi-housing prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 14-2(1) of the Act means an officetel referred to in subparagraph 4 of Article 4 of the Enforcement Decree of the Housing Act, which is added to the number of houses owned by each household at the time of acquisition pursuant to subparagraph 4 of Article 13-3 of the Local Tax Act (hereinafter referred to as "officetels for residence").

Article 11(Advance notice of rebuilding charges) #

(1) The Minister of Land, Infrastructure and Transport shall notify in writing the payment obligor of rebuilding charges and the standards for imposing them in advance of determining and imposing rebuilding charges under Article 15(2) of the Act, not later than three months after the time the levy ends; provided, where the rebuilding charges are reduced pursuant to Article 14-2 of the Act, a notice may be given within 6 months from the time the levy ends. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 19, 2021; Mar. 26, 2024>

(2) Detailed methods of advance notice on rebuilding charges under paragraph (1) shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>

Article 11-2(Determination and imposition of rebuilding charges) #

(1) If the Minister of Land, Infrastructure, and Transport determines that the data submitted pursuant to Article 20 of the Act qualifies for a reduction of rebuilding charges pursuant to Article 14-2 of the Act, the Minister shall calculate the total amount of the rebuilding charges within 3 months from the date the levy ends and notify the payment obligor in writing.

(2) A payment obligor shall submit the following data to the Minister of Land, Infrastructure and Transport within 4 months from the time the levy ends:

1. Data determining the sharing ratio of the rebuilding charges for each union member pursuant to Article 6(3) of the Act and Article 4(2) of this Decree;

2. The amount of charges to be shared by each union member in accordance with the sharing standards and ratio for each union member under Article 6(3) of the Act;

3. The amount to be borne by the relevant union member in accordance with the reduction of the rebuilding charges under Article 14-2 of the Act.

(3) When the Minister of Land, Infrastructure and Transport notifies in advance the standards for imposition and the rebuilding charges pursuant to Article 15(2) of the Act and the proviso of Article 11(1) of this Decree, he or she shall notify them, including the deadline for disposition of the relevant house under Article 14-2(3) of the Act.

(4) When the Minister of Land, Infrastructure and Transport notifies the deadline for disposal of the relevant house pursuant to Article 15(3) of the Act upon determining and imposing the rebuilding charges, if the payment obligor has submitted his or her opinion upon receipt of a notice under paragraph (3) of this Article, the Minister of Land, Infrastructure and Transport shall give a notice, including whether the relevant opinion is reflected.

(5) "Interest prescribed by Presidential Decree" in the former part of Article 15(4) of the Act means the amount calculated by applying mutatis mutandis Article 24(4) of the Enforcement Decree of the Restitution of Development Gains Act. In such cases, "charges" shall be construed as "rebuilding charges."

[Added on Mar. 6, 2024]

Article 12(Examination prior to notification) #

(1) "Matters prescribed by Presidential Decree" in Article 16(2) of the Act means the following: <Amended on Feb. 19, 2021>

1. Name of the claimant (referring to the name of the corporation and the name of its representative, if the claimant is a corporation);

2. The address or residence of the claimant (referring to the address of the corporation and the address or residence of its representative, if the claimant is a corporation);

3. Details of housing subject to rebuilding charges;

4. Rebuilding charges and the standards for imposition thereof notified in advance under Article 15(2) of the Act;

5. Reasons for requesting examination prior to notification.

(2) Where the payment obligor has documentary evidence substantiating matters stated in the subparagraphs of paragraph (1), he or she shall attach the documents to the written request for examination prior to notification.

(3) "Matters prescribed by Presidential Decree" in Article 16(3) of the Act means the following: <Amended on Feb. 19, 2021>

1. Name of the claimant (referring to the name of the corporation and the name of its representative, if the claimant is a corporation);

2. The address or residence of the claimant (referring to the address of the corporation and the address or residence of its representative, if the claimant is a corporation);

3. Details of housing subject to rebuilding charges;

4. Rebuilding charges and the standards for imposition thereof;

5. Results of examination prior to notification and the reasoning thereof.

(4) The Commission on the Public Announcement of Real Estate Values under Article 16(4) of the Act means the Central Commission on the Public Announcement of Real Estate Values; provided, where the authority relating to examination prior to notification is delegated to the head of a Si/Gun/Gu, it refers to the Si/Gun/Gu Commission on the Public Announcement of Real Estate Values. <Amended on Aug. 31, 2016; Sep. 5, 2017>

(5) Detailed procedures of examination prior to notification under Article 16(4) of the Act shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>

Article 12-2(Designation of payment agency) #

(1) "Payment agency prescribed by Presidential Decree" in the proviso of Article 17(2) of the Act means the institutions stipulated in the following subparagraphs:

1. The Korea Financial Telecommunications and Clearings Institute established with permission from the Financial Services Commission under Article 32 of the Civil Act;

2. An institution designated and publicly notified as a payment agency by the Minister of Land, Infrastructure and Transport from among institutions that perform settlement with credit cards, debit cards or the like (hereafter in this Article referred to as "credit cards or other means of payment") by using an information and communications network, based on such considerations as facilities, work capability and the capital size.

(2) The Minister of Land, Infrastructure and Transport may cancel the designation of a payment agency when the payment agency under paragraph (1)2 falls under any of the following subparagraphs. In such cases, the Minister shall publicly notify the fact of cancelling the designation in the Official Gazette:

1. Where the payment agency is deemed unable to normally perform the function of paying rebuilding charges due to reduced facilities and capital, etc. under paragraph (1)2;

2. Where the payment agency has issues with work capability, for instance, being unable to normally perform the function of paying rebuilding charges by credit card or other means of payment.

(3) A payment agency may charge convenience fees in exchange for vicarious payment services using credit cards or other means of payment, in an amount not exceeding 10/1000 of the amount paid.

(4) A payment agency shall obtain approval on the convenience fees under paragraph (3) from the Minister of Land, Infrastructure and Transport. In such cases, the Minister shall comprehensively take into account such things as operating expenses before approving the convenience fees.

(5) Other than those provided for in paragraphs (1) through (4), the Minister of Land, Infrastructure and Transport may prescribe matters necessary for paying rebuilding charges using credit cards or other means of payment.

[This Article Added on Sep. 5, 2017]

Article 13(Request for payment in kind) #

(1) A person who intends to request payment in kind under Article 17(4) of the Act shall submit to the Minister of Land, Infrastructure and Transport a written request for payment in kind specifying, among other things, the amount of rebuilding charges, and the address, area, location, and price of the housing offered as payment in kind. <Amended on Feb. 29, 2008; Mar. 23, 2013; Sep. 5, 2017>

(2) The Minister of Land, Infrastructure and Transport shall notify in writing the requesting person of whether to accept the payment in kind within 30 days after receiving the written request for payment in kind under paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013>

(3) The value of housing offered as payment in kind shall not exceed the amount of the relevant rebuilding charges imposed, and the payment obligor shall pay the difference between the rebuilding charges imposed and the value of the housing offered as payment in kind in cash.

(4) The value of housing offered as payment in kind shall be the value of the housing at the time the charges cease to accrue assessed under Article 9 of the Act, plus the normal appreciation in housing prices accrued between the time the charges cease to accrue and the date notice is made in writing under paragraph (2).

Article 13-2(Deferment of payment of rebuilding charges) #

(1) A union member who wishes to apply for a deferral of payment of rebuilding charges pursuant to Article 17-2(1) of the Act shall submit an application for deferment of payment prescribed by Decree of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport within one month prior to the expiration of the payment period under Article 17(1) of the Act.

(2) Upon receipt of an application under paragraph (1), the Minister of Land, Infrastructure and Transport shall notify the payment obligor and the relevant union member of whether the permission for deferral of payment is granted in writing, by the expiration date of the payment period pursuant to Article 17-2(2) of the Act.

(3) "Interest prescribed by Presidential Decree" in the former part of Article 17-2(5) of the Act means the amount calculated by applying mutatis mutandis Article 24(4) of the Enforcement Decree of the Restitution of Development Gains Act. In such cases, "charges" shall be construed as "rebuilding charges."

(4) Where the Minister of Land, Infrastructure and Transport intends to collect rebuilding charges by adding up interest from a payment obligor pursuant to Article 17-2(5) of the Act, he or she shall issue a payment notice containing the rebuilding charges, interest, and details of calculation of such interest.

[Added on Mar. 6, 2024]

Article 14(Opening account for advance collection and deposit of rebuilding charges) #

(1) Where a payment obligor intends to open an account to collect rebuilding charges in advance under Article 19(2) of the Act, he or she may request the Minister of Land, Infrastructure and Transport to open an account for collecting rebuilding charges in advance. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(2) The Minister of Land, Infrastructure and Transport in receipt of a request for opening an account under paragraph (1) shall open an account jointly held by the Minister and the relevant unions, etc. at a financial institution which, as a person entrusted or re-entrusted with operating and managing the Housing and Urban Fund under Article 10(2) or (3) of the Housing and Urban Fund Act, is located in the area where the rebuilding project is implemented, within seven days from the date the request is made; provided, where the authority to determine and impose rebuilding charges is delegated to the head of a Si/Gun/Gu, the account shall be jointly held between the unions, etc. and the head of a Si/Gun/Gu. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jun. 30, 2015; Sep. 5, 2017; Feb. 9, 2018; Mar. 26, 2024>

(3) The rebuilding charges collected in advance and deposited under Article 19(1) and (2) of the Act shall be attributed to the Housing and Urban Fund. <Amended on Jun. 30, 2015>

(4) "Matters prescribed by Presidential Decree" in Article 19(3) of the Act means the following: <Amended on Feb. 19, 2021>

1. Standards for imposing rebuilding charges and the total rebuilding charges to be levied;

2. Criteria for allocating rebuilding charges to each member of an association, and the amount of rebuilding charges to be levied on each member;

3. Account number to pay the rebuilding charges.

(5) Interest under Article 19(4) of the Act shall be calculated on a daily pro rata basis.

(6) Detailed methods for requesting opening an account under paragraph (1) shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013>

Article 15(Survey on rebuilding project) #

The Minister of Land, Infrastructure and Transport may conduct a field survey on rebuilding projects, confirm facts with relevant administrative agencies; or take such other measures as necessary for preventing the omission of rebuilding projects subject to rebuilding charges. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 9, 2018>

[Title Amended on Feb. 9, 2018]

Article 16(Notice on projects subject to rebuilding charges) #

Where the Minister of Land, Infrastructure and Transport receives a notice from a relevant administrative agency under Article 21 of the Act, he or she shall notify in advance the payment obligor of the matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Feb. 29, 2008; Mar. 23, 2013; Feb. 19, 2021>

Article 17(Delegation of authority) #

(1) The Minister of Land, Infrastructure and Transport shall delegate the following authority to the head of a Si/Gun/Gu under Article 22(1) of the Act: <Amended on Feb. 29, 2008; Mar. 23, 2013; Sep. 5, 2017; Feb. 9, 2018; Mar. 26, 2024>

1. Calculating the value of housing under Article 9 of the Act;

2. Accepting the submission of documents necessary for calculating rebuilding charges, and notifying the standards for imposing rebuilding charges and the amount of rebuilding charges to be levied under Article 14 of the Act;

2-2. Reduction of rebuilding charges under Article 14-2 of the Act;

3. Determination and imposition of rebuilding charges, prior notification of rebuilding charges, notice of deadline for disposition of houses, and collection of interest under Article 15 of the Act.

4. Receiving and examining requests for examination prior to notification and notifying the results thereof under Article 16 of the Act;

5. Receiving written requests for payment in kind and notifying whether payment in kind is accepted under Article 17(2) and (4) of the Act and Article 13 of this Decree;

5-2. Granting of permission for deferred payment, revocation of permission, and collection of interest under Article 17-2 of the Act.

6. Delivering notice requesting payment of rebuilding charges; collecting deficiencies; collecting rebuilding charges before the due date; extending payment terms; paying in installments; demanding payment; imposing disposition on delinquency; and imposing disposition on deficits under Article 18 of the Act;

7. Receiving a request for opening an account to deposit rebuilding charges in advance; and opening such account under Article 19 of the Act and Article 14 of this Decree;

8. Accepting documents submitted under Article 20 of the Act;

9. Accepting materials notified by relevant administrative agencies and notifying the payment obligor under Article 21(1) of the Act and Article 16 of this Decree; and notifying the Commissioner of National Tax Service of materials under Article 21(2) of the Act;

10. Imposing and collecting administrative fines under Article 24 of the Act;

11. Verifying development costs under Article 9(4);

11-2. Notification of the total amount of rebuilding charges under Article 11-2(1) and receipt of data submitted under paragraph (2) of that Article;

Article 17-2(Verification of estimated amount of rebuilding charges) #

(1) The head of a Si/Gun/Gu delegated with the authority of the Minister of Land, Infrastructure and Transport pursuant to Article 22(1) of the Act and Article 17(1) of this Decree may request verification from the Korea Real Estate Board pursuant to Article 22(3) of the Act, if necessary for notifying the estimated amount of rebuilding charges under Article 14 of the Act, verifying a single-house owner under Article 14-2, and determining and imposing rebuilding charges under Article 15 of the Act. <Amended on Mar. 26, 2024>

(2) The Korea Real Estate Board requested to conduct verification pursuant to paragraph (1) shall verify whether the value of housing, the normal increase in housing prices, development costs, etc. under Articles 9 through 11 of the Act have been appropriately calculated, and whether the relevant person is a single-house owner under Article 14-2 of the Act. <Amended on Mar. 26, 2024>

(3) Where necessary for the investigation and verification under paragraph (1), the Korea Real Estate Board may organize and operate an examination group or advisory committee comprised of external experts in each field.

(4) Where deemed necessary for the correct verification, the Korea Real Estate Board may request an appraisal corporation, etc. authorized pursuant to Article 29 of the Act on Appraisal and Certified Appraisers to investigate and examine rebuilding charges.

(5) Except as provided in paragraphs (1) through (4), details necessary for verification, such as the processing period for verification by the Korea Real Estate Board, shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

[This Article Added on Feb. 19, 2021]

[Previous Article 17-2 moved to Article 17-3 <Feb. 19, 2021>]

Article 17-3(Processing of personally identifiable information) #

The Minister of Land, Infrastructure and Transport (including the head of a Si/Gun/Gu to whom the authority of the Minister of Land, Infrastructure and Transport has been delegated pursuant to Article 17(1), and the Korea Real Estate Institute requested for verification pursuant to Article 17-2(1)) may process data containing resident registration numbers, passport numbers, or alien registration numbers under Article 19 of the Enforcement Decree of the Personal Information Protection Act if it is unavoidable for the purpose of performing the following business affairs:

1. Business affairs relating to the reduction of rebuilding charges under Article 14-2 of the Act;

2. Business affairs relating to the determination and imposition of rebuilding charges under Article 15 of the Act;

3. Business affairs related to the deferment of payment of rebuilding charges and provision of collateral pursuant to Article 17(2) of the Act;

4. Business affairs relating to submission of documents required for the calculation of rebuilding charges under Article 20 of the Act;

5. Affairs concerning the notification of data under Article 21 of the Act;

[Added on Mar. 6, 2024]

[Previous Article 17-3 moved to Article 17-4 <Mar. 29, 2024>]

Article 17-4(Re-examination of regulation) #

The Minister of Land, Infrastructure and Transport shall examine the appropriateness of the criteria for allocating rebuilding charges to each union member under Article 4 every three years counting from January 1, 2014 (referring to the period before January 1 of every third year) and shall take measures, such as making improvements.

[This Article Added on Dec. 30, 2013]

[Moved from Article 17-3 <Mar. 26, 2024>]

Article 18(Imposition and collection of administrative fines) #

(1) Deleted. <Mar. 4, 2010>

(2) Deleted. <Mar. 4, 2010>

(3) The Minister of Land, Infrastructure and Transport may reduce the amount of administrative fines by a ratio not exceeding 1/2 of the maximum of the administrative fines provided for in the subparagraphs of Article 24(1) of the Act, taking into account the causes, consequences and frequency of violations and other factors. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(4) Deleted. <Mar. 4, 2010>