ENFORCEMENT DECREE OF THE ACT ON DEVELOPING AND USING STATION'S SPHERE OF INFLUENCE

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Act on Developing and Using Station's Sphere of Influence and matters necessary for the enforcement thereof.

Article 2(Designation of development zones) #

(1) "Scale prescribed by Presidential Decree" in Article 4 (2) 1 of the Act on Developing and Using Station's Sphere of Influence (hereinafter referred to as the "Act") means a site area of 30,000 square meters. <Amended on Jul. 2, 2024>

(2) "Scale prescribed by Presidential Decree" in Article 4 (2) 2 of the Act means a site area of 300,000 square meters. <Amended on Jul. 2, 2024>

Article 3(Procedures for designation or modification of development zones by designating authority) #

(1) Where the Minister of Land, Infrastructure and Transport or the Special Metropolitan City Mayor, a Metropolitan City, or a Do Governor (hereinafter referred to as "Mayor/Do Governor") intends to designate a development zone for a station's sphere of influence (hereinafter referred to as the "development zone") or modify a designated development zone under Article 4 (4) of the Act (excluding any modification falling under the subparagraphs of paragraph (2)), they shall undergo deliberation by a committee according to the following classifications: <Added on Jul. 2, 2024>

1. Where a Mayor/Do Governor designates a development zone under the former part, with the exception of the subparagraphs, of Article 4 (1) of the Act: The City/Do Urban Planning Committee under Article 113 (1) of the National Land Planning and Utilization Act;

2. Where the relevant Mayors/Do Governors agree to designate a person to designate a development zone under the latter part, with the exception of the subparagraphs, of Article 4 (1) of the Act, and such person designates the development zone: Respective City/Do Urban Planning Committees under Article 113 (1) of the National Land Planning and Utilization Act, established in the local governments under the jurisdiction of the relevant Mayors/Do Governors;

3. Where the Minister of Land, Infrastructure and Transport designates a development zone under Article 4 (2) of the Act: The Central Urban Planning Committee under Article 106 of the National Land Planning and Utilization Act.

(2) "Modification of minor matters prescribed by Presidential Decree" in the latter part of Article 4 (4) of the Act means any of the following modifications: <Amended on Aug. 31, 2012; Jul. 2, 2024>

1. Modification of the name of a development zone;

2. Modification of less than 10/100 of the area of a development zone;

3. Modification of the project period of a project for developing a station's sphere of influence;

4. Modification of the project implementer of a project for developing a station's sphere of influence under Article 12 (1) of the Act (hereinafter referred to as "project implementer");

5. Modification of the funding plan;

6. Increase or decrease in area due to a simple clerical error or the results of a final plat survey;

7. Modification of detailed facility plans for already planned infrastructure (referring to "infrastructure" defined in subparagraph 6 of Article 2 of the National Land Planning and Utilization Act, hereinafter the same shall apply);

8. Modification of roads with a width of less than 12 meters;

9. Modification of a specific-use area, specific-use district, or specific-use zone or a land use plan and an infrastructure plan, resulting from the modification of the area of a development zone under subparagraph 2;

10. Modification of the detailed items where land, buildings, or objects affixed to land that are subject to expropriation or use, and rights other than ownership thereof, mining rights, fishery rights, or rights to use water (hereinafter referred to as "land, etc.") exist;

11. Modification of the project plan reflecting the results of consultations on environmental impact assessment under the Environmental Impact Assessment Act and the results of review of traffic impact analysis and improvement measures under the Act on the Promotion of Urban Traffic Improvement;

12. In the case of infrastructure represented by area, modification of less than 10/100 of each facility area; provided, in the case of green areas, this shall apply only where the modification is less than 2/100 of the facility area and less than 1,500 square meters;

13. Modification of the urban informatization plan under subparagraph 1 of Article 9;

14. Modification of the cost-sharing plan for the installation of infrastructure within the scope that does not increase the financial burden of landowners within the development zone.

[Title Amended on Jul. 2, 2024]

Article 4(Request for designation or modification of development zones) #

(1) Where the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) intends to request the designating authority under Article 4 (4) of the Act (hereinafter referred to as the "designating authority") to designate or modify a development zone under Article 4 (5) of the Act, they shall, after consulting the Si/Gun/Gu Urban Planning Committee under Article 113 (2) of the National Land Planning and Utilization Act, submit to the designating authority an application for designation (or modification) of a development zone prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with the documents and drawings specified in the following subparagraphs; provided, in cases of requesting minor modifications under the subparagraphs of Article 3 (2), consultation with the Si/Gun/Gu Urban Planning Committee under Article 113 (2) of the National Land Planning and Utilization Act may be omitted. <Amended on Apr. 10, 2012; Mar. 23, 2013; Jul. 2, 2024>

1. A report on investigation of a development zone, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport;

2. Documents regarding hearing the opinions of residents and relevant experts under Article 6 (1) of the Act;

3. Documents regarding the contents of the project plan under Article 7 (1) of the Act (hereinafter referred to as the "project plan");

4. A location map with a scale of 1:25,000 or 1:50,000;

5. A topographic map with a scale between 1:1,000 and 1:5,000 indicating the boundaries of the development zone, together with a document stating the reasons for determining the boundaries;

6. The results of consultation with the Si/Gun/Gu Urban Planning Committee under Article 113 (2) of the National Land Planning and Utilization Act, and a written opinion thereon (excluding cases where consultation with the Si/Gun/Gu Urban Planning Committee is omitted because the modification constitutes a modification of minor matters under the subparagraphs of Article 3 (2));

7. Drawings required for the determination of urban areas and district-unit planning zones under Articles 36 (1) and 50 of the National Land Planning and Utilization Act, which are deemed to have been determined and publicly notified under Article 9 (2) of the Act (hereinafter referred to as "urban areas, etc.");

8. Investigation data on the current status of incorporated farmland and forest land.

Article 4-2(Division and combination of development zones) #

(1) In cases where a development zone may be divided into 2 or more project districts under Article 4-2 (1) of the Act, such division shall be permitted when the designating authority deems it necessary for the efficient implementation of the project for developing a station's sphere of influence, and each project district after the division shall have an area of at least 10,000 square meters.

(2) In cases where 2 or more non-contiguous areas (limited to those within the same or adjoining Special Metropolitan City, Metropolitan Cities, or Dos) may be combined and designated as a single development zone (hereinafter referred to as "combined development zone") under Article 4-2 (1) of the Act, such combination shall be permitted if the areas, each with an area of at least 10,000 square meters, include any of the following areas: <Amended on May 7, 2024; Sep. 10, 2024>

1. Areas where land use is restricted under relevant statutes or regulations, such as the National Land Planning and Utilization Act, the Act on Conservation and Utilization of Cultural Heritage, the Act on Conservation and Utilization of Modern and Contemporary Cultural Heritage, the Act on Conservation and Utilization of Natural Heritage, the Protection of Military Bases and Installations Act, and the Airport Facilities Act, in order to manage or protect urban landscapes, national heritage, military installations, or aviation facilities;

2. Areas where facilities such as infrastructure, factories, public office buildings and official residences, or military installations of a scale that meets or exceeds the development activity permit threshold prescribed for each specific-use zones under Article 55 (1) of the Enforcement Decree of the National Land Planning and Utilization Act are demolished or relocated (including the areas surrounding the relevant facilities);

3. Any of the following areas or districts (limited to cases where disaster prevention facilities or resident safety facilities, etc. are to be installed through a project for developing a station's sphere of influence so as to prevent disasters in the long term or to recover from disasters):

a. Fire prevention districts under Article 37 (1) 3 of the National Land Planning and Utilization Act, or disaster prevention districts under subparagraph 4 of that paragraph;

b. Districts for improvement of areas prone to natural disasters designated under Article 12 of the Countermeasures against Natural Disasters Act;

c. Special disaster zones proclaimed under Article 60 of the Framework Act on the Management of Disasters and Safety;

Article 5(Proposal for designation of development zones) #

(1) A person who intends to propose the designation of a development zone under Article 5 (1) of the Act shall submit to the designating authority a proposal for designation of a development zone prescribed by the Decree of the Ministry of Land, Infrastructure and Transport, along with the following documents and drawings; in such cases, the designating authority shall verify cadastral maps and forestry maps through administrative data matching under Article 36 (1) of the Electronic Government Act: <Amended on Mar. 23 2013; Jun. 18 2019; Jul. 2 2024>

1. Documents and drawings referred to in subparagraphs 1 through 4 and 8 of Article 4;

2. Expansion or improvement plans for railroad stations (applicable only where a proposal for designation of a development zone under Article 4 (2) 1 of the Act is submitted to the Minister of Land, Infrastructure and Transport);

2-2. Records of the consultation process among the relevant Mayors/Do Governors (applicable only where a proposal for designation of a development zone under Article 4 (2) 6 of the Act is submitted to the Minister of Land, Infrastructure and Transport);

3. In cases where the designation of a combined development zone under Article 4-2 (2) is proposed, written consent from owners (including superficies holders) of at least 2/3 of the land area of each separate area to be included in the development zone.

(2) If the designating authority receives a proposal for designation of a development zone under paragraph (1), they shall notify the proposer of whether the proposal is accepted within 3 months from the date of receipt.

Article 5-2(Details of basic investigation) #

(1) Where a person is designated or intends to be designated as a project implementer under Article 5-2 (1) of the Act, such person may investigate or survey the following matters: <Amended on May 7, 2024>

1. Changes and trends in population in the area intended to be designated as a development zone and in nearby areas sharing the same living sphere;

2. Current status of population, land use, existing structures, and other development projects within the development zone;

3. Current status of transportation and transportation facilities in surrounding areas;

4. Frequency and status of natural disasters such as storm and flood damage, landslides, or ground collapses;

5. Matters regarding upper-level plans, including metropolitan plans under subparagraph 1 of Article 2 of the National Land Planning and Utilization Act and urban or Gun master plans under subparagraph 3 of that Article;

6. Distribution of national heritage;

7. Distribution of parks and green areas;

8. Environmental conditions, including the natural and living environments.

(2) If any investigation or survey data is available under other statutes or regulations with respect to the matters to be investigated or surveyed under paragraph (1), such data may be utilized.

[This Article Added on Aug. 31, 2012]

Article 6(Hearing of opinions from residents) #

(1) Where the designating authority intends to hear opinions from residents or relevant experts through public inspection or a public hearing on the designation of a development zone under Article 6 (1) of the Act, they shall send copies of relevant documents to the heads of Sis/Guns/Gu. <Amended on Jul. 2, 2024>

(2) If the head of a Si/Gun/Gu receives copies of relevant documents under paragraph (1) or intends to directly request the designation of a development zone under Article 6 (1) of the Act, they shall publicly announce the following matters in at least 2 daily newspapers circulated nationwide or mainly in the relevant region and on the website of the relevant Si, Gun, or autonomous Gu, and shall make them available for public inspection for at least 14 days; provided, if the area of the development zone is less than 100,000 square meters, the public announcement may be made in the Public Gazette and on the website of the relevant Si, Gun, or autonomous Gu, without publication in daily newspapers:

1. An outline of the designation of the development zone to be established and of the project plan;

2. The project implementer and the method of implementing the project for developing a station's sphere of influence;

3. The period for public inspection.

(3) Any person who has an opinion on the matters publicly announced under paragraph (2) may submit a written opinion to the person who made the public announcement on the designation of the development zone during the period for public inspection.

(4) When the head of a Si/Gun/Gu receives relevant documents from the designating authority under Article 6 (1) of the Act and paragraph (1) of this Article and makes a public announcement under paragraph (2), they shall submit the results under paragraphs (2) and (3) to the designating authority.

(5) The designating authority or the head of a Si/Gun/Gu shall review whether to reflect the opinions submitted under paragraph (3) in the contents publicly announced for the designation or request for designation of the development zone, and shall notify the person who submitted such opinions of the results within 30 days from the end of the period for public inspection.

Article 7(Matters exempted from hearing opinions from residents) #

"Minor matters prescribed by Presidential Decree" in Article 6 (1) of the Act means any of the following: <Amended on Apr. 10, 2012>

1. Any change involving less than 10/100 of the total area of the development zone;

2. Any change made to correct a simple clerical error in the area or other matters;

3. Any change to the development zone made to reflect the results of consultation with relevant agencies on the urban or Gun management plan determined under the National Land Planning and Utilization Act, the environmental impact assessment conducted under the Environmental Impact Assessment Act, or the traffic impact analysis and improvement measures, etc. established under the Urban Traffic Improvement Promotion Act.

Article 8(Public hearings) #

(1) Where the designating authority or the head of a Si/Gun/Gu intends to hold a public hearing under Article 6 (1) of the Act, they shall publicly announce the following matters at least once in a daily newspaper circulated nationwide or mainly in the relevant region and on the website, at least 14 days prior to the scheduled date of the public hearing:

1. The purpose of the public hearing;

2. The scheduled date, time, and venue of the public hearing;

3. An outline of the designation of the development zone to be established and the project plan;

4. Matters regarding applications for presentation of opinions;

5. Other matters necessary for the public hearing.

(2) A public hearing shall be presided over by a person designated by the person holding the public hearing.

Article 9(Matters to be included in project plan) #

"Matters prescribed by Presidential Decree" in Article 7 (1) 16 of the Act means the following: <Amended on Apr. 10, 2012; May 7, 2024; Jul. 2, 2024>

1. An urban informatization plan;

2. A national heritage preservation plan;

3. A plan for underground utilities, including utility tunnels;

4. A plan regarding buildings and structures to be preserved;

5. Matters regarding infrastructure;

6. Matters regarding the determination of urban areas, etc.

Article 10(Procedures for establishment and modification of project plans) #

The procedures for establishing or modifying a project plan under Article 7 (1) and (2) of the Act shall be governed by the procedures for designation and modification of a development zone under Article 4 of the Act.

Article 11(Special cases concerning the National Land Planning and Utilization Act) #

Under Article 8 (1) of the Act, the designating authority may determine different building-to-land ratio and floor area ratios for a development zone, within the limit not exceeding 150/100 of the building-to-land ratios and floor area ratios applicable to the relevant specific-use area (or to the changed ratios, if the specific-use area has been changed under Article 8 (1) of the Act).

Article 12(Public notice of designation of development zones) #

When the designating authority designates or modifies a development zone, they shall give public notice of the following matters in the Official Gazette or Public Gazette under Article 9 (1) of the Act; provided, the matters falling under subparagraph 6 may be publicly notified after their contents are finalized: <Amended on Apr. 10, 2012; Jul. 2, 2024>

1. The title of the project for developing a station's sphere of influence;

2. The name, location, area, and purpose of designation of the development zone;

3.The name (if the project implementer is a corporation, referring to the name of the corporation and the name of its representative) and address of the project implementer (if the project implementer is not designated, referring to the proposer);

4. The implementation period and method of the project for developing a station's sphere of influence;

5. The land use plan and the infrastructure plan (including a plan for the infrastructure outside the development zone, if it is necessary to install infrastructure outside the development zone);

6. The cadastral details of land, etc., its owners, and the names and addresses of relevant persons under Article 2 (5) of the Act on Acquisition of and Compensation for Land for Public Works Projects;

7. How to inspect relevant documents;

8. Matters regarding the determination or modification of urban areas, etc.;

9. Other matters necessary for public notice.

Article 13(Public notice of revocation of designation of development zones) #

When the designating authority revokes the designation of a development zone under Article 10 (1) of the Act, they shall give public notice of the following matters in the Official Gazette or Public Gazette under paragraph (2) of that Article: <Amended on Apr. 10, 2012>

1. The name of the development zone;

2. The location and area of the development zone;

3. The reason for the revocation of the designation of the development zone;

4. Matters regarding the restoration or abolition of specific-use areas, specific-use districts, or specific-use zones, and urban or Gun planning facilities under the National Land Planning and Utilization Act.

Article 14(Acts subject to permission) #

(1) "Acts prescribed by Presidential Decree" in the former part of Article 11 (1) of the Act means any of the following acts:

1. Major repair or change in the use of a building (including a temporary building) under the Building Act;

2. Excavation of land or reclamation of public waters;

3. Deleted. <Aug. 31, 2012>

(2) If a Mayor/Do Governor or the head of a Si/Gun/Gu intends to grant permission for any act under Article 11 (1) of the Act, they shall hear the opinion of the project implementer in advance under Article 12 of the Act if such implementer has already been designated. <Amended on Jul. 2, 2024>

(3) "Acts prescribed by Presidential Decree" in Article 11 (2) of the Act means acts under Article 11 (1) of the Act conducted on sites where the relocation or establishment of railroad tracks is planned.

(4) A person who intends to report construction or a project under Article 11 (4) of the Act shall submit to the competent Mayor/Do Governor or the head of a Si/Gun/Gu a report prescribed by the Decree of the Ministry of Land, Infrastructure and Transport, along with documents indicating the progress and implementation plan of such construction or project, within 30 days from the date of public notice of designation of the development zone. <Amended on Mar. 23, 2013>

Article 15(Application for designation of project implementers) #

(1) A person who intends to be designated as a project implementer under Article 12 (1) of the Act shall submit to the designating authority an application for designation of a project implementer, stating the following matters:

1. The name (if the applicant is a corporation, its name and the name of its representative) and address of the applicant;

2. The name, area, and location of the project;

3. The purpose, details, implementation period, and method of the project.

(2) The following documents and drawings shall be attached to the application for designation of a project implementer under paragraph (1):

1. A project plan;

2. A financing plan;

3. A map indicating the location of the development zone drawn to a scale of 1:25,000 or 1:50,000;

4. Documents verifying whether the applicant falls under any of the subparagraphs of Article 12 (1) of the Act.

(3) Except as provided in paragraphs (1) and (2), matters necessary for the designation of a project implementer shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

Article 16(Scope of project implementers) #

(1) "Public institution prescribed by Presidential Decree" in Article 12 (1) 4 of the Act means any of the following public institutions:

1. The Korea Land and Housing Corporation incorporated under the Korea Land and Housing Corporation Act;

2. The Korea Tourism Organization established under the Korea Tourism Organization Act.

(2) "Person who meets the requirements prescribed by Presidential Decree" in Article 12 (1) 6 of the Act means a person who operates, or has operated, a railroad business in the development zone.

(3) "Person who meets the requirements prescribed by Presidential Decree" in Article 12 (1) 7 of the Act means a person who has been designated, or has experience of being designated, as a project implementer of a railroad construction project in the development zone.

(4) "Person who meets the requirements prescribed by Presidential Decree" in Article 12 (1) 8 of the Act means a person who operates, or has experience of operating, an urban railroad business in the development zone or has obtained approval of a project plan.

(5) "Person who meets the requirements prescribed by Presidential Decree" in Article 12 (1) 9 a of the Act means any of the following persons: <Amended on Oct. 30, 2018>

1. A person who is registered in the type of business performing general construction works (limited to civil engineering works and civil engineering and architectural works) under the Framework Act on the Construction Industry, whose construction capacity evaluation amount publicly announced under Article 23 of that Act is equal to or greater than the average annual project cost (excluding compensation costs) of the relevant project for developing a station's sphere of influence;

2. A trustee under the Financial Investment Services and Capital Markets Act, who is subject to external audit under Article 4 of the Act on External Audit of Stock Companies.

(6) "Person who meets the requirements prescribed by Presidential Decree" in Article 12 (1) 9 b of the Act means any of the following persons:

1. A self-managed real estate investment trust established under the Real Estate Investment Company Act that has an investment record in real estate or real estate development projects;

2. An entrusted management real estate investment trust established under the Real Estate Investment Company Act, which has entered into an asset management entrustment contract with an asset management company.

Article 17(Grounds for change or revocation of designation of project implementer) #

"Grounds prescribed by Presidential Decree" in Article 12 (2) 4 of the Act means cases where a project implementer voluntarily files an application for a change or revocation of designation due to managerial reasons or other grounds.

Article 18(Public notice of designation, change, or revocation of project implementer) #

When the designating authority designates, changes, or revokes a project implementer, they shall publicly notify the following matters in the Official Gazette or Public Gazette under Article 12 (3) of the Act:

1. The name and address of the project implementer (if a corporation, its name and the name of its representative);

2. The reason for the change or revocation of the project implementer (applicable only in cases where the project implementer is changed or revoked).

Article 19(Approval of implementation plan) #

(1) Where a project implementer intends to obtain approval of an implementation plan under Article 13 (1) of the Act, they shall submit an application for approval of the implementation plan, along with the documents prescribed by Decree of the Ministry of Land, Infrastructure and Transport, to the designating authority. <Amended on Mar. 23, 2013>

(2) "Minor matters prescribed by Presidential Decree" in the proviso of Article 13 (1) of the Act means the following: <Amended on Apr. 10, 2012>

1. Any change in the name and address of a project implementer (or, where the project implementer is a corporation, in its name or the name of its representative);

2. Correction of the area of project implementation site due to errors or omissions within the scope that does not change the project implementation site;

3. A reduction in the area within 10/100 of the area of the project implementation site;

4. Increase or decrease of the project cost within 10/100 of the total project cost;

5. Change in the area of an urban or Gun planning facility site under the National Land Planning and Utilization Act, reflecting a simple error or the results of a final plat survey.

(3) To consult under Article 13 (3) of the Act, the designating authority shall send copies of the documents related to the implementation plan to the competent Mayor/Do Governor and the heads of the relevant Si/Gun/Gu, and the competent Mayor/Do Governor and the heads of the relevant Si/Gun/Gu who have received such documents shall consult with the designating authority on the implementation plan within the period designated by the designating authority. <Amended on Aug. 31, 2012>

(4) The designating authority may approve an implementation plan for a combined development zone on the condition that the areas falling under the subparagraphs of Article 4-2 (2) shall be developed on a priority basis. <Added on Jun. 18, 2019>

Article 20(Public notice of implementation plan) #

When the designating authority prepares or approves an implementation plan, they shall publicly notify the following matters under Article 13 (4) of the Act: <Amended on Apr. 10, 2012; Jul. 2, 2024>

1. The name and purpose of the project;

2. The location and area of the development zone;

3. The name and address of the project implementer (if a corporation, its name and the name of its representative);

4. The project implementation period;

5. The period and place for public inspection of the approved drawings and documents related to the implementation plan;

6. The details of the decision on the urban or Gun management plan (including a district-unit planning zone) under the National Land Planning and Utilization Act;

7. The matters publicly notified or announced regarding the authorization, permission, etc. deemed to have been granted upon the public notice of the implementation plan under Article 16 of the Act.

Article 20-2(Methods of implementing development projects in station's sphere of influence) #

(1) "Cases that meet the requirements prescribed by Presidential Decree, such as where it is deemed that the price of land to be acquired has changed" in Article 17 (5) of the Act means cases where the average rate of change in the publicly announced standard land price for reference land (referring to the publicly announced standard land price under Article 3 of the Act on the Public Announcement of Real Estate Values; hereinafter the same shall apply) for the development zone is at least 30 percent higher than the average rate of change in the publicly announced standard land price for the entire Si/Gun or autonomous Gu in which the development zone is located. <Amended on Aug. 31, 2016; Jul. 15, 2025>

(2) The average rate of change under paragraph (1) shall be calculated based on the rate of change between the reference date of the publicly announced land price that was announced nearest to the date of the public announcement for hearing the opinions of residents, etc. under Article 6 (1) of the Act, and the reference date of the publicly announced land price that was announced nearest to the date of the public notice of the designation of the development zone under Article 9 (1) of the Act.

(3) If a development zone under paragraph (1) spans 2 or more Sis/Guns or autonomous Gus, the average rate of change shall be calculated for each Si/Gun or autonomous Gu in which the development zone is located and then the weighted average of such rates shall be derived based on the ratio of the area of the residential district located in each Si/Gun or autonomous Gu.

[This Article Added on Aug. 31, 2012]

[Title Amended on Jul. 15, 2025]

Article 21(Issuance of land redemption bonds) #

(1) The total amount of land redemption bonds under Article 18 (1) of the Act (hereinafter referred to as "land redemption bonds") shall not exceed 1/2 of the total area of land or buildings to be created through the development project in the station's sphere of influence for which such bonds are to be redeemed.

(2) Where a project implementer issues land redemption bonds under paragraph (1), they shall make a public announcement of the name of the bonds and the matters prescribed in the subparagraphs of Article 22.

Article 22(Issuance plan for land redemption bonds) #

The issuance plan for land redemption bonds under Article 18 (2) of the Act shall include the following matters:

1. The name of the project implementer;

2. The total amount of land redemption bonds to be issued;

3. The interest rate of the land redemption bonds;

4. The method and timing of principal redemption;

5. The method and timing of interest payment;

6. The issue price and timing of issuance of the land redemption bonds;

7. The region or the purpose of land subject to redemption;

8. The method for estimating the land price;

9. Where the bonds are issued with a guarantee, the period and details of the guarantee;

10. Other matters deemed necessary by the project implementer.

Article 23(Terms and conditions for issuance of land redemption bonds) #

(1) The interest rate of land redemption bonds shall be determined by the project implementer in consideration of the deposit interest rates of banks under the Banking Act at the time of issuance and the supply and demand conditions of real estate.

(2) Land redemption bonds shall be registered securities.

Article 24(Subscription for land redemption bonds) #

A person who intends to receive the proceeds from the sale of land, etc. in the form of land redemption bonds (hereinafter referred to as "subscriber") shall prepare 2 copies of a subscription form for land redemption bonds stating the following matters and submit them to the project implementer:

1. The name of a project;

2. The name and address of the subscriber (or, where the subscriber is a corporation, its name and the name of its representative);

3. Details of the land, etc. owned by the subscriber;

4. The amount of proceeds for the sale of the land, etc.;

5. The amount to be received in the form of land redemption bonds.

Article 25(Matters to be stated in land redemption bonds) #

Land redemption bonds shall state the following matters and shall be signed and sealed by the project implementer:

1. The matters referred to in subparagraphs 1 and 3 through 7 of Article 22;

2. The serial number of the land redemption bond;

3. The year, month, and day of issuance of the land redemption bond.

Article 26(Keeping of register of land redemption bonds) #

The project implementer shall keep a register of land redemption bonds (hereinafter referred to as the "register of land redemption bonds") at its principal office, stating the following matters:

1. The serial number of the land redemption bond;

2. The year, month, and day of issuance of the land redemption bond;

3. The matters referred to in subparagraphs 2 through 7 of Article 22;

4. The name and address of the holder of the land redemption bond (or, where the holder is a corporation, its name and the name of its representative);

5. The year, month, and day of acquisition of the land redemption bond.

Article 27(Transfer of land redemption bonds) #

(1) Where a land redemption bond is transferred, the transferee shall request that their name and address be entered in the register of land redemption bonds; and any person who acquires a land redemption bond without having their name and address entered in the register may not assert their rights against the issuer or any other third party.

(2) Where a land redemption bond is pledged as collateral, the pledgee may not assert their rights against the issuer or any other third party unless the name and address of the pledgee have been entered in the register of land redemption bonds.

(3) When a pledge is created under paragraph (2), the project implementer shall indicate such fact on the relevant land redemption bond.

Article 28(Notice to holders of land redemption bonds) #

Any notice or demand to the holder of a land redemption bond shall be sent to the address entered in the register of land redemption bonds; provided, if the holder has separately notified the project implementer of another address, such notice or demand shall be sent to that address.

Article 29(Advance payments) #

(1) A project implementer who intends to receive an advance payment under Article 19 of the Act shall obtain approval from the designating authority after satisfying the requirements classified as follows: <Amended on Aug. 31, 2012>

1. In the case of a project implementer falling under subparagraphs 1 through 5 of Article 12 (1) of the Act: After formulating and publicly notifying the project plan, the project implementer shall have secured ownership (including consent to use) of at least 25/100 of the land area of the project implementation site; provided, if the project implementer intends to receive an advance payment before obtaining approval of the implementation plan under Article 13 of the Act, such receipt shall be permitted only where the infrastructure investment plan has become concrete after completing an environmental impact assessment under the Environmental Impact Assessment Act and conducting a traffic impact analysis and formulating an improvement plan under the Urban Traffic Improvement Promotion Act;

2. In the case of a project implementer falling under subparagraphs 6 through 11 of Article 12 (1) of the Act: The project implementer shall meet all of the following requirements after obtaining approval of the implementation plan for the relevant development zone under Article 13 of the Act:

a. The project implementer shall have secured ownership of the land to be supplied and have canceled any mortgage registered on the land; provided, if it is impossible to secure ownership of the land or cancel the mortgage due to unavoidable circumstances, the project implementer, the landowner, and the mortgagee shall jointly prepare a notarized agreement containing the following provisions and submit it to the designating authority:

1) The landowner shall not transfer or provide the land as collateral to any third party;

2) Where a person who has paid the advance payment is permitted to use the land by undergoing completion inspection or obtaining approval for use prior to completion under Article 21 of the Act, the landowner and the mortgagee shall, without delay, transfer ownership of the land and cancel the mortgage;

b. The construction progress rate of the project for developing a station's sphere of influence for the land to be supplied shall be at least 10/100;

c. To secure refund of the advance payment in the event of nonperformance of the supply contract, the project implementer shall submit to the designating authority a letter of guarantee or other document that includes the following matters (referring to a payment guarantee, securities, surety insurance policy, time deposit certificate, or beneficiary certificate under Article 37 (2) of the Enforcement Decree of the Act on Contracts to Which the State is a Party; hereinafter the same shall apply); provided, in cases falling under item (2), where the project period is extended, the guarantee or insurance period shall be extended accordingly by submitting a renewed guarantee or insurance policy reflecting the extended period:

Article 30(Details of supply plan for developed land) #

The supply plan for land, buildings, or structures, etc. (hereinafter referred to as "developed land, etc.") created through a project for developing a station's sphere of influence under Article 20 (2) of the Act shall include the following matters:

1. The location and area of the developed land, etc. to be directly used by the project implementer;

2. The location and area of the developed land, etc. to be supplied;

3. The method for determining the price of the developed land, etc. to be supplied;

4. The eligibility requirements for and the method of selecting recipients of supply;

5. The timing, method, and conditions of supply;

6. Other matters necessary for the supply plan.

Article 31(Procedures and standards for supply of developed land, etc.) #

(1) When supplying developed land, etc., the project implementer shall supply it in accordance with the intended use prescribed in the project plan. In such cases, the project implementer may restrict the eligibility of recipients of supply or impose supply conditions, if necessary for the smooth installation of infrastructure.

(2) The supply of developed land, etc. shall be made by competitive bidding; provided, land for detached houses and factory sites of 330 square meters or less, land for the construction of housing not exceeding the size of national housing under subparagraph 6 of Article 2 of the Housing Act (including land for rental housing construction), and public housing sites under subparagraph 24 of Article 2 of that Act may be sold by lottery. <Amended on Aug. 11, 2016>

(3) If the project implementer intends to supply developed land, etc. under paragraph (2), they shall make a public announcement of the following matters; provided, this shall not apply where the recipients of supply are specified or eligibility is restricted and individual notice has been given:

1. The name and address of the project implementer (if a corporation, its name and the name of its representative);

2. The location, area, and use of the land (including any restrictions on land use, if applicable);

3. Methods and conditions of supply;

4. The supply price or the method for determining the supply price;

5. The eligibility requirements for and the method of selecting recipients of supply;

6. The period and place for filing applications for supply;

7. Other matters the project implementer deems necessary.

(4) Notwithstanding paragraph (2), developed land, etc. may be supplied by a private contract in any of the following cases: <Amended on Mar. 23, 2013>

1. Where public land, such as school sites or sites for public office buildings, which cannot be sold to the general public, is supplied to the State, a local government, or any person who is authorized to install the relevant facilities under statutes or regulations;

2. Where a minimum area of land necessary for the maintenance and management of facilities to be preserved is supplied in accordance with the implementation plan publicly notified under the former part of Article 13 (4) of the Act;

Article 32(Inspection of completion) #

(1) A project implementer (excluding cases where the designating authority is the project implementer) shall submit a report on completion of construction, as prescribed by the Decree of the Ministry of Land, Infrastructure and Transport, to the designating authority in order to undergo an inspection of completion under Article 21 (1) of the Act. <Amended on Mar. 23, 2013>

(2) Upon receipt of a report on completion of construction under paragraph (1), the designating authority shall, without delay, conduct an inspection of completion. In such cases, the designating authority may request the relevant administrative agencies, public institutions, research institutions, or other specialized institutions to conduct the inspection of completion, if necessary for an efficient inspection of completion.

(3) The designating authority may request the heads of State agencies, local governments, or public institutions, etc., that will take over or manage public facilities included in the report on completion of construction, to participate in the inspection of completion. In such cases, a person requested to participate in the inspection of completion shall comply with such request unless there is a compelling reason not to do so.

Article 33(Permission for use before completion) #

(1) Where a project implementer intends to use developed land, etc. before completion under the proviso of Article 21 (5) of the Act, they shall determine the scope thereof and submit to the designating authority an application for permission to use such land, etc. before completion, along with a review report on whether such use will cause any impediment to the implementation of the project.

(2) Where an application for permission to use developed land, etc. before completion is filed under paragraph (1), the designating authority shall determine whether to grant permission after verifying whether such use would impede the implementation of the project to be performed.

(3) Matters necessary for permission to use developed land, etc. before completion under paragraph (1) shall be prescribed by the Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

Article 34(Matters to be publicly announced upon completion of construction) #

(1) A public announcement of completion of construction under Article 22 of the Act shall be made by publishing it in the Official Gazette or Public Gazette.

(2) The public announcement under paragraph (1) shall include the following matters:

1. The name of a project;

2. The project implementer;

3. The location of the project implementation site;

4. The total area of the project implementation site and the area by use;

5. The date of completion;

6. Matters regarding the disposal of major facilities.

Article 35(Period of permission for occupancy of railroad facilities) #

With respect to permission for occupancy under Article 24 (4) of the Act, Article 13 of the Enforcement Decree of the Railroad Service Act shall apply mutatis mutandis.

Article 36(Subsidy or loan of expenses) #

The expenses that may be subsidized or loaned under Article 26 (2) of the Act shall be as follows: <Amended on Jan. 17, 2017>

1. Expenses for projects to install infrastructure such as roads, railroads, communications facilities, water supply facilities, sewerage facilities, public wastewater treatment facilities, and waste disposal facilities;

2. Expenses for projects to install utility tunnel facilities within a development zone;

3. Expenses for projects to install collective energy supply facilities;

4. Land acquisition and construction costs for parks, plazas, and green areas;

5. Expenses for relocation measures;

6. Expenses for projects to establish a transfer connection system between means of transport;

7. Installation costs for facilities, such as arterial roads and regional water supply facilities located outside the project area, which are necessary for promoting a project for developing a station's sphere of influence but are inappropriate for the project implementer to bear;

8. Installation costs for public facilities particularly necessary for a project for developing a station's sphere of influence, except as provided in subparagraphs 1 through 7.

Article 37(Procedures for issuing bonds) #

(1) Where the State intends to issue bonds for the development of a station's sphere of influence (hereinafter referred to as "bonds") under Article 28 (1) of the Act, the Minister of Land, Infrastructure and Transport shall request the Minister of Economy and Finance and the Minister of Planning and Budget to issue such bonds, specifying the following matters: <Amended on Mar. 23, 2013; Dec. 30, 2025>

1. The total amount of bonds to be issued;

2. The method of issuing the bonds;

3. The terms and conditions of the bonds;

4. The methods and procedures for redemption;

5. Other matters necessary for the issuance of the bonds.

(2) Where the head of a local government intends to issue bonds under Article 28 (2) of the Act, they shall consult with the Minister of Land, Infrastructure and Transport on the matters provided in the subparagraphs of paragraph (1) and obtain approval from the Minister of the Interior and Safety. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017>

(3) Where a project implementer other than the State or a local government intends to issue bonds under Article 28 (2) of the Act, they shall request approval from the designating authority, stating the matters provided in the subparagraphs of paragraph (1).

(4) Where a project implementer intends to issue bonds under paragraphs (1) through (3), they shall make a public announcement of the following matters:

1. The total amount of bonds to be issued;

2. The period of issuance of the bonds;

3. The interest rate of the bonds;

4. The method and timing of principal redemption;

5. The method and timing of interest payment;

Article 38(Methods of issuing bonds) #

(1) Bonds may be issued either by electronic registration with an electronic registration agency under subparagraph 6 of Article 2 of the Act on Electronic Registration of Stocks and Bonds, or in bearer form, and the detailed matters necessary for the method of issuance shall be determined by the Minister of Economy and Finance and the Minister of Planning and Budget in consultation with the Minister of Land, Infrastructure and Transport in cases where the State issues the bonds, by ordinance of the relevant local government in cases where a local government issues the bonds, and by the regulations of the relevant institution in cases where a project implementer other than the State and local governments issues the bonds. <Amended on Mar. 23, 2013; Jun. 25, 2019; Dec. 30, 2025>

(2) The interest rate of the bonds shall be determined by taking into account the interest rates of national bonds and public bonds at the time of issuance, in accordance with the following classifications: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Dec. 18, 2018; Dec. 30, 2025>

1. Where the State issues bonds: Determined by the Minister of Economy and Finance and the Minister of Planning and Budget in consultation with the Minister of Land, Infrastructure and Transport;

2. Where a local government issues bonds: Prescribed by ordinance of the local government;

3. Where a project implementer issues bonds, except as provided in subparagraphs 1 and 2: Prescribed by the regulations of the relevant institution in consultation with the designating authority.

(3) The redemption period of the bonds shall be not less than 5 years and not more than 10 years.

(4) An agency handling the sale and redemption of bonds (hereinafter referred to as "bond handling agency") shall be as follows:

1. Where the State issues bonds: The Bank of Korea under the Bank of Korea Act;

2. Where a local government issues bonds: A bank under the Banking Act, designated by the local government;

3. Where a project implementer issues bonds, except as provided in subparagraphs 1 and 2: The Korea Securities Depository established under Article 294 of the Financial Investment Services and Capital Markets Act.

Article 39(Keeping of bond register) #

(1) A bond handling agency shall keep a bond register and record the following matters therein:

1. The name and address of the purchaser of the bonds (or, where the purchaser is a corporation, its name and the name of its representative);

2. The amount of the bonds;

3. The interest rate of the bonds;

4. Dates of issuance and redemption of bonds.

(2) A bond handling agency shall report matters regarding the sale and redemption of bonds for each month to the agency that issued the bonds by the 20th day of the following month.

Article 40(Issuance of bond purchase certificates) #

(1) When selling bonds, a bond handling agency shall issue to the purchaser a certificate of purchase of bonds for the development a station's sphere of influence (hereinafter referred to as "purchase certificate"), as prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

(2) A bond handling agency shall keep a register of issued purchase certificates as prescribed by Decree of the Ministry of Land, Infrastructure and Transport, and shall record matters regarding the issuance of such certificates. <Amended on Mar. 23, 2013>

(3) A purchase certificate shall not be reissued even if it is lost due to destruction, theft, or other reasons; provided, it may be reissued where the issuer of the relevant bonds verifies that the purchase certificate has not been used for the purpose of bond purchase.

(4) Where a purchase certificate is reissued under the proviso of paragraph (3), the bond handling agency shall mark the reissued certificate and record the details in the register of reissued purchase certificates, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013>

(5) The sale of bonds and other related business affairs under paragraphs (1) through (4) may be processed electronically. In such cases, the procedures and methods for electronic processing shall be determined by the agency issuing the bonds.

Article 41(Early redemption of bonds) #

(1) Bonds shall not be redeemed before maturity, except in any of the following cases:

1. Where the permission that served as the reason for the purchase of the bonds has been revoked without any fault on the part of the purchaser;

2. Where a person who is not obligated to purchase the bonds has purchased them by mistake;

3. Where a person obligated to purchase the bonds has purchased them in an amount exceeding the amount they are required to purchase.

(2) A person who intends to redeem bonds before maturity under the subparagraph of paragraph (1) shall submit to the bond handling agency an application for early redemption of bonds for the development of a station's sphere of influence, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with documents issued by the designating authority, local government, or project implementer verifying that the case falls under any subparagraph of paragraph (1). <Amended on Mar. 23, 2013>

Article 42(Purchase of bonds) #

(1) "Persons prescribed by Presidential Decree" in Article 29 (1) 2 of the Act means persons who have obtained permission for change of the form and quality of land.

(2) The persons obligated to purchase bonds and the amounts thereof under Article 29 (1) of the Act shall be as specified in Appendix 1.

(3) The State and a local government shall require the persons falling under the subparagraphs of Article 29 (1) of the Act to purchase bonds, as prescribed by this Decree and ordinance of the local government.

Article 43(Notice to bondholders) #

(1) Notice or demand to a holder of bearer bonds shall be made by public announcement; provided, if the holder's address is known, such notice or demand need not be made by public announcement.

(2) Notice or demand to an owner of registered bonds shall be made to the address entered in the bond register; provided, if the bond handling agency has been separately notified of another address, such notice or demand shall be made to that address.

Article 44(Administrative dispositions) #

(1) "Bankruptcy of a project implementer or any other reason prescribed by Presidential Decree" in Article 31 (1) 2 of the Act means a case where the project implementer has gone bankrupt or it is deemed impossible to continue the project due to deterioration of its financial structure or for other similar reasons.

(2) The detailed standards for dispositions or orders under Article 31 (1) of the Act shall be as specified in Appendix 2. <Added on Jun. 17, 2014>

(3) If the designating authority issues any disposition or order under Article 31 (1) of the Act, it shall publicly notify the name of the project implementer, the details of the violation, the details and period of the administrative disposition or order, and other related matters in the Official Gazette or Public Gazette under Article 31 (3) of the Act. <Amended on Jun. 17, 2014>

Article 45(Entrustment of purchase of land) #

(1) If a project implementer intends to entrust land purchase, compensation for losses, relocation measures, or other related business affairs under Article 32 (1) of the Act, they shall enter into an agreement specifying the following matters:

1. The project site of the entrusted project;

2. The type, scale, amount, and period of the entrusted project;

3. Matters regarding the method of paying expenses necessary for the entrusted project and the management of such funds;

4. Matters regarding the management of real estate, equipment, or workers provided by the entrusting party, if any;

5. Matters regarding risk bearing;

6. Other matters necessary for clarifying the details of the entrusted project.

(2) "Public institutions prescribed by Presidential Decree" in Article 32 (1) of the Act means the following public institutions: <Amended on Aug. 31, 2016; Sep. 10, 2020; Dec. 8, 2020>

1. The Korea Land and Housing Corporation incorporated under the Korea Land and Housing Corporation Act;

2. The Korea Water Resources Corporation incorporated under the Korea Water Resources Corporation Act;

3. The Korea Railroad Corporation under the Korea Railroad Corporation Act;

4. The Korea National Railway incorporated under the Korea National Railway Act;

5. The Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act;

6. The Korea Real Estate Board established under the Korea Real Estate Board Act;

7. A local public corporation established by a local government under Article 49 of the Local Public Enterprises Act for the purpose of performing projects such as site development or housing construction.

(3) The entrustment fee rate under Article 32 (2) of the Act shall be as specified in Appendix 3. <Amended on Jul. 2, 2024>

Article 45-2 #

Deleted. <Mar. 7, 2023>

Article 46(Criteria for imposing administrative fines) #

(1) The criteria for imposing administrative fines under Article 39 (1) and (2) of the Act shall be as specified in Appendix 4. <Amended on Jul. 2, 2024; Jul. 15, 2025>

(2) The Minister of Land, Infrastructure and Transport, the Mayor/Do Governor, or the head of a Si/Gun/Gu may reduce or increase the amount of an administrative fine within 1/2 of the amount specified in Appendix 4, taking into account the degree of violation, frequency of violations, motive for and consequences of the violation, and other relevant circumstances; provided, the amount shall not exceed the maximum limit under Article 39 (1) and (2) of the Act. <Amended on Mar. 23, 2013; Jul. 2, 2024; Jul. 15, 2025>