Article 4(Registration of Real Estate Development Business) #
(1) Where a person intends to conduct real estate development business above the size determined by Presidential Decree, which means the total floor area of a building (referring to the total floor area under Article 84 of the Building Act) is above 2,000 square meters or 5,000 square meters per annum or the land area is above 3,000 square meters or 10,000 square meters per annum, for the purpose of providing the same to other persons, he or she shall register his or her business with a Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor"). Provided, That the same shall not apply to any of the following persons: <Amended on Feb. 29, 2008; Mar. 21, 2008; Dec. 18, 2012; Mar. 23, 2013; Aug. 11, 2015; Jan. 19, 2016; Feb. 18, 2020; Jun. 9, 2020>
1. The State and local governments;
2. The Korea Land and Housing Corporation and other public institutions established under the Act on the Management of Public Institutions, prescribed by Presidential Decree;
3. Local government-established public corporations under the Local Public Enterprises Act (hereinafter referred to as "local public enterprise");
4. Housing construction business entities or housing lot formation business entities registered pursuant to Article 4 of the Housing Act (limited to housing construction business or housing lot formation business);
5. A person capable of conducting real estate development projects under other statutes as prescribed by Presidential Decree.
(2) A person who intends to file for registration pursuant to paragraph (1) shall satisfy the following requirements. In such cases, the procedures for registration and other necessary matters shall be prescribed by Presidential Decree: <Amended on May 19, 2011>
1. The amount of capital is to exceed the amount prescribed by Presidential Decree, which is above 300 million won (in cases of individuals, 600 million won of the value of appraised assets for working);
2. Facilities prescribed by Presidential Decree and real estate development experts are to be secured.
(3) Notwithstanding paragraph (2), when a person intending to conduct real estate development business establishes a special purpose corporation without full-time executive officers and employees which are determined by Presidential Decree for the sake of real estate development, he or she shall comply with the requirements for registration and other necessary matters separately determined by Presidential Decree.
(4) Notwithstanding paragraph (1), every landowner may jointly engage in real estate development projects with registered business entities as prescribed by Presidential Decree. In such cases, such landowners and registered business entities shall be deemed joint business entities, and the detailed business affairs, expenses, and allocation of responsibilities among the joint business entities shall be determined by Presidential Decree.
(5) Where any of the following causes arises while a person who fails to file for registration conducts any act referred to in the items of subparagraph 1 of Article 2, he or she may provide real estate, etc. to other persons: <Newly Inserted on Aug. 11, 2015; Dec. 29, 2020>
1. Where a person who conducts any real estate development act deceases or goes bankrupt;
2. Where real estate under development is undergoing court auction procedures;
3. Where he or she provides real estate to his or her lineal ascendant or descendant;
4. Where he or she provides real estate to his or her affiliated company under subparagraph 12 of Article 2 of the Monopoly Regulation and Fair Trade Act;
5. Where he or she provides real estate to a corporation the representative of which is a person who conducts a real estate development act;
6. Where he or she is an enterprise or individual at risk of bankruptcy due to excessive debt and files a detailed and objective statement about the cause therefor with an administrative agency in charge of authorization and permission.
(6) Where a person who fails to file for registration falls under paragraph (5) 6, an administration agency in charge of authorization, permission, etc. for any of the acts referred to in the items of subparagraph 1 of Article 2 may consult an attorney-at-law, accountant, etc. within a necessary scope and require the person who filed the statement to submit necessary materials. <Newly Inserted on Aug. 11, 2015>