ENFORCEMENT DECREE OF THE REGIONAL DEVELOPMENT ASSISTANCE ACT

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ENFORCEMENT DECREE OF THE REGIONAL DEVELOPMENT ASSISTANCE ACT — 법갈피

Article 4(Modification of insignificant matters in regional development plans) #

(1) "Modifying insignificant matters prescribed by Presidential Decree" in the proviso and main sentence, with the exception of the subparagraphs, of Article 8(1) of the Act means the following modification (limited to where any modification does not violate other subparagraphs): <Amended on Jun. 2, 2017; Mar. 3, 2020; Dec. 28, 2021>

1. Modifying the scale of a regional development project (excluding road works; hereafter the same shall apply in this paragraph) under a regional development plan, falling under any of the following:

a. Increasing or decreasing the scale by up to 300,000 square meters where the scale of the relevant regional development project exceeds one million square meters;

b. Increasing or decreasing the scale by up to 30/100 where the scale of the relevant regional development project is less than one million square meters;

2. Modifying the project expense for a regional development project under a regional development plan, falling under any of the following:

a. Modifying the project expense by up to 10/100;

b. Modifying the project expense by in excess of 10/100, following a prior consultation with the Minister of Land, Infrastructure and Transport and the head of a relevant central administrative agency;

c. Modifying the project expense for the relevant regional development project that is less than three billion won, falling under any of the following:

1) Where the project expense modified is less than three billion won;

2) Where the project expense modified exceeds three billion won, but the amount increased is less than 30/100 of the original project expense;

3. Modifying road works under a regional development plan without changing the number of lanes of the road involved in a regional development project, falling under any of the following; provided, if the start point or end point of the road is changed, the relevant modification shall be allowed only where a prior consultation with the Minister of Land, Infrastructure and Transport and the head of a relevant administrative agency is conducted:

a. Modifying the length of a route by up to 30/100;

b. Modifying the width of the relevant road by up to 30/100;

4. Incorporating in a regional development plan the result of consultation between relevant administrative agencies regarding designating a regional development project zone under Article 11 of the Act or granting approval of an implementation plan under Article 23 of the Act;

5. Modifying any insignificant matter of a regional development project zone under the main sentence of Article 11(6) of the Act;

5-2. Reflecting the outcomes of evaluating the business feasibility of a regional development project under Article 65 of the Act;

6. Incorporating in a regional development plan any matter determined or modified pursuant to other statutes;

7. Correcting errors in land surveying, clerical errors or similar;

8. Modifying matters determined by the Minister of Land, Infrastructure and Transport, which is equivalent to modification under subparagraph 1 through 5, 5-2, 6, or 7.

(2) "Where the scale exceeds that prescribed by Presidential Decree" in Article 8(1)2 of the Act means cases where the scale of development under a regional development project exceeds one million square meters. <Added on Jun. 2, 2017>

Article 11(Modifying insignificant matters concerning regional development project zones) #

"Modification to insignificant matters prescribed by Presidential Decree" in the proviso of Article 11(7) of the Act means the following modification (limited to where any modification does not violate other subparagraphs): <Amended on Jun. 2, 2017; Mar. 3, 2020; Dec. 28, 2021>

1. Modifying the scale of a regional development project zone, falling under any of the following; provided, where a regional development project zone the scale of which is to be modified is included in an area determined and publicly notified as an land area to be cleared pursuant to Article 13(4) of the Rearrangement of Agricultural and Fishing Villages Act or as a military base and installation protection zone under subparagraph 6 of Article 2 of the Protection of Military Bases and Installations Act, the designating authority shall have a prior consultation with the heads of relevant central administrative agencies:

a. Increasing or decreasing the scale by up to 300,000 square meters where the scale of the relevant regional development project zone (excluding a road works project) exceeds one million square meters, increase or decrease of less than 300,000 square meters;

b. Increasing or decreasing the scale by up to 30/100 where the scale of the relevant regional development project zone (excluding a road works project) is less than one million square meters;

c. Modifying road works to be implemented in a regional development project zone without changing the number of lanes of the road, falling under any of the following; provided, if the start point or end point of the road is changed, the relevant modification shall be allowed only where a prior consultation with the Minister of Land, Infrastructure and Transport and the head of a relevant administrative agency is conducted:

1) Modifying the length of a route by up to 30/100;

2) Modifying the width of the relevant road by up to 30/100;

2. Reducing the project period or extending the project period by up to one year;

3. Modifying the representative or address of a project implementer designated pursuant to Article 19(1) of the Act;

4. Modifying the land utilization plan by up to 30/100 of the scale of site for each main use;

5. Modifying the project expense, falling under any of the following:

a. Modifying the project expense by up to 10/100;

c. Modifying the project expense not exceeding three billion won, falling under any of the following:

1) Where the project expense modified is less than three billion won;

2) Where the project expense modified exceeds three billion won, but the amount increased is less than 30/100 of the original project expense;

5-2. Reflecting the outcomes of evaluating the business feasibility of a regional development project under Article 65 of the Act;

6. Correcting errors in land surveying or clerical errors or similar.

Article 14(Methods of dividing and integrating regional development project zones) #

(1) The cases where a regional development project zone can be divided into at least two regional development project zones pursuant to Article 13(1) of the Act means where the Minister of Land, Infrastructure and Transport or a Mayor/Do Governor (hereinafter referred to as "designating authority") deems it necessary for efficiently promoting a regional development project, and the scale of respective regional development project zones after division exceeds 10,000 square meters.

(2) The case where at least 2 areas located apart from each other (limited to where the areas are in the same City/Do or in adjoining Cities/Dos) can be designated as a regional development project zone (hereafter in this Article, referred to as "integrated development") pursuant to Article 13(1) of the Act shall be where at least 1 area with a size of at least 10,000 square meters and falling under any of the following is included in the regional development project zone: <Amended on Mar. 29, 2017; May 7, 2024; Sep. 10, 2024>

1. An area subject to restriction on land utilization pursuant to relevant statutes, such as the National Land Planning and Utilization Act, the Protection of Military Bases and Installations Act, the Act on Preservation and Utilization of Cultural Heritage, the Act on the Preservation and Utilization of Modern and Contemporary Cultural Heritage, the Act on Conservation and Utilization of Natural Heritage, the Airport Facilities Act, etc. to manage or protect urban scenery, national heritage, military installations, airport facilities, etc.;

2. An area from which infrastructure, factories and appurtenant residences, military installations, etc. (including an area surrounding such facilities) requiring land development permission for each purpose of use are removed or relocated under Article 55(1) of the Enforcement Decree of the National Land Planning and Utilization Act;

3. Any of the following areas or districts (limited to where disasters, etc. can be prospectively prevented or restoration is possible as disaster-prevention facilities, resident safety facilities, etc. are installed under a regional development project):

a. A fire-prevention district or disaster-prevention district under Article 37(1)4 and 5 of the National Land Planning and Utilization Act;

b. An area zoned to manage natural disaster risks designated under Article 12 of the Countermeasures against Natural Disasters Act;

c. A special disaster area declared under Article 60 of the Framework Act on the Management of Disasters and Safety;

4. An area requiring an urban or Gun planning facility project under subparagraph 10 of Article 2 of the National Land Planning and Utilization Act;

5. Other areas the designating authority deems that integrated development is necessary for efficiently implementing a regional development project.

(3) Where a project implementer (hereinafter referred to as "implementer") designated pursuant to Article 19 of the Act intends to expropriate or use mutually separate land under Article 27(1) of the Act and implement a regional development project using an integrated development method, he or she shall obtain approval on respective parcels of land subject to expropriation or use from landowners under the proviso of Article 27(1) of the Act.

(4) Where an implementer implements a regional development project using an integrated development method, he or she shall preferentially develop land in an area referred to in paragraph (2); provided, where necessary due to the characteristics of a regional development project, the designating authority may differently determine the order of preference.

Article 15(Hearing opinions on designating and modifying regional development project zones) #

(1) Where modifying insignificant matters prescribed by Presidential Decree under the latter part of Article 14(1) of the Act shall be cases falling under any of subparagraphs 2 through 6 of Article 11.

(2) Where a designating authority intends to have the head of a Si (including the Special Self-Governing City Mayor if the designating authority is the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), Gun or Gu, who has jurisdiction over an area subject to designation of a regional development project or modification of the designation, hear opinions from residents, relevant specialists, etc., pursuant to Article 14(1) of the Act, it shall send a copy of relevant documents to the head of the relevant Si/Gun/Gu.

(3) Where the head of a Si/Gun/Gu receives relevant documents pursuant to paragraph (2), he or she shall, without delay, publicly announce the name, location, scale, etc. of the regional development project zone to be designated or modified in the public report and on the website of the relevant Si (including a Special Self-Governing City if the designating authority is the Minister of Land, Infrastructure and Transport; hereafter the same shall apply in this Article), Gun or Gu (referring to an autonomous Gu); and shall make the documents available for public inspection for at least 14 days. <Amended on Jun. 2, 2017>

(4) Any person who has an opinion on designating or modifying a regional development project zone may submit a written opinion to the head of a Si/Gun/Gu within the public inspection period under paragraph (3).

(5) The head of a Si/Gun/Gu shall submit a written opinion on designating or modifying a regional development project zone and his or her review on the opinion to the designating authority.

(6) A designating authority shall examine whether to consider the opinion received pursuant to paragraph (5), and notify the result to the person who submits such opinion within 60 days from the date the public inspection period ends.

Article 19(Restrictions on engaging in activities) #

(1) Pursuant to Article 17(1) of the Act, engaging in the following activities in a regional development project zone shall be permitted by the relevant Special Self-Governing Province Mayor or the head of the relevant Si, Gun, or Gu: <Amended on Jan. 5, 2021>

1. Constructing a building: Constructing, substantially repairing, or changing the use of, a building (including a temporary building) under Article 2(1)2 of the Building Act;

2. Installing a structure: Installing an artificial facility (excluding a building under Article 2(1)2 of the Building Act);

3. Changing the form and quality of land: Changing the shape of land by cutting, filling-up, leveling, paving, etc. land, excavating land or reclaiming public waters;

4. Collecting soil and stones: Collecting soil and stones, such as earth, sand, aggregates, rocks, etc.; provided, collecting soil and stones to change the form and quality of land shall be governed by subparagraph 3;

5. Dividing land;

6. Stacking things: Stacking things that are hard to move at least once;

7. Cutting or planting bamboo and trees.

(2) Where a project implementer is already designated pursuant to Article 19 of the Act when the Special Self-Governing City Mayor or the head of a Si/Gun/Gu grants permission pursuant to Article 17(1) of the Act, opinions of the project implementer shall be considered.

(3) "Activity prescribed by Presidential Decree" in Article 17(2)2 of the Act means any of the following, not subject to permission for development activity under Article 56 of the National Land Planning and Utilization Act:

1. Installing a temporary structure prescribed by Decree of the Ministry of Land, Infrastructure and Transport, used directly for producing agricultural products, forest products or marine products;

2. Changing the form and quality of land for cultivation;

3. Collecting soil and stones insofar as it does not impede the development of a regional development project zone and does not harm natural scenery;

4. Stacking things on a site determined to be preserved within a regional development project zone;

5. Temporarily planting ornamental bamboo and trees (excluding temporarily planting trees in a farmland).

(4) A person subject to reporting pursuant to Article 17(3) of the Act shall submit a report accompanied by the following documents to the Special Self-Governing City Mayor or the head of relevant Si/Gun/Gu as prescribed by Decree of the Ministry of Land, Infrastructure and Transport within 30 days from the date a regional development project zone is designated and publicly notified:

1. A document proving that permission is granted pursuant to relevant statutes or that permission is not required;

2. Photographs evidencing the progress of construction works as at the reporting date;

3. Documents relating to construction works or a project (applicable only to changing the form and quality of land or collecting soil and stones under paragraph (3)2 or 3), such as lay-out drawings, etc.;

4. Design drawings (applicable only to installing a structure under paragraph (3)1).

Article 20(Standards for designating implementers, procedures therefor) #

(1) An implementer shall be designated through public bidding process or by a designating authority after hearing opinions of the Special Self-Governing City Mayor or of the head of relevant Si/Gun/Gu.

(2) Where a designating authority designates an implementer through public bidding process under paragraph (1), it shall publicly announce the following matters in the Official Gazette or in at least two general daily nationwide newspapers or daily local newspapers covering relevant area:

1. Name, location and objective of the regional development project;

2. Period for implementing the regional development project;

3. Matters concerning the qualification of an implementer;

4. Procedures for evaluating and selecting an implementer;

5. Evaluation standards for selecting an implementer;

6. Other matters necessary for designating an implementer.

(3) A person who intends to be designated as an implementer of a regional development project zone pursuant to paragraph (1) shall submit an application for designation stating the following matters, to the designating authority; provided, this shall not apply where the State or a City/Do directly implements a regional development project:

1. Name of an implementer, name of a representative and location;

2. Name, location and objective of the regional development project;

3. Period for implementing the regional development project.

(4) An application for designation under paragraph (3) shall be accompanied by the following documents and design drawings:

1. A location map;

2. A project plan;

3. A financing plan;

4. Annual investment plans;

5. Documents proving that paragraph (6) applies (applicable only where a private investor under Article 19(1)5 of the Act files an application).

(5) "Public institution prescribed by Presidential Decree" in Article 19(1)2 of the Act means any of the following public institutions: <Amended on Jun. 2, 2017; Sep. 10, 2020; Sep. 19, 2024>

1. The Korea Land and Housing Corporation under the Korea Land and Housing Corporation Act (hereinafter referred to as "Korea Land and Housing Corporation");

2. The Korea Water Resources Corporation under the Korea Water Resources Corporation Act (hereinafter referred to as "Korea Water Resources Corporation");

3. The Korea Railroad Corporation under the Korea Railroad Corporation Act (hereinafter referred to as "Korea Railroad Corporation");

4. The Korea National Railway under the Korea National Railway Act (hereinafter referred to as the "Korea National Railway");

5. The Korea Tourism Organization under the Korea Tourism Organization Act (hereinafter referred to as "Korea Tourism Organization");

6. The Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act (hereinafter referred to as "Korea Rural Community Corporation");

7. The Korea Racing Authority under the Korea Racing Authority Act (hereinafter referred to as "Korea Racing Authority").

8. The Korea Expressway Corporation under the Korea Expressway Corporation Act (hereinafter referred to as "Korea Expressway Corporation").

(6) "A private investor who meets the requirements prescribed by Presidential Decree, such as capital, etc." in Article 19(1)5 of the Act means any of the following persons:

1. Where an individual, a corporation incorporated pursuant to the Commercial Act or Civil Act, or a cooperative established pursuant to the Framework Act on Cooperatives intends to directly implement a development project (including where at least two private investors intend to jointly implement a project): Any of the following persons:

a. A person whose registered business is of a business category (limited to civil engineering works or civil engineering and building works) implementing general construction works under the Framework Act on the Construction Industry (limited to where the evaluated amount performed by the construction contractor for the year publicly announced pursuant to Article 23 of the same Act or his or her capital exceeds the average annual business expense (excluding compensation expenses) specified by a regional development project plan);

b. A person who owns at least 50/100 of land in a regional development project zone;

c. A real estate trust company entrusted with land of a size equivalent to at least 1/3 of land in a regional development project zone;

2. Where a private investor establishes an enterprise exclusively in charge of a regional development project to participate in a regional development project as an implementer: An enterprise exclusively in charge of a regional development project of which proportion of equity capital raised for the total project expense exceeds 10/100 of the total project expense specified in the regional development project plan. In such case, where several enterprises invest in the enterprise exclusively in charge of a regional development project, the total of investment proportions of three enterprises with high equity proportion shall exceed 50/100.

(7) Where a designating authority designates an implementer pursuant to Article 19(1) of the Act, it shall issue a certificate of designation prescribed by Decree of the Ministry of Land, Infrastructure and Transport, and prepare and manage a book of designated implementers.

Article 24(Approval for implementation plans) #

(1) "Matters prescribed by Presidential Decree" in Article 22(7) of the Act means the following matters: <Amended on May 7, 2024>

1. A plan indicating whose authority over the public facilities, and land, articles and rights (hereinafter referred to as "land, etc.") under Article 3 of the Act on Acquisition of and Compensation for Land for Public Works Projects falls and a plan to substitute therefor;

2. A compensation plan (including a relocation plan);

3. A plan for buildings, structures, etc. to be remained;

4. A plan for subdividing a construction zone (applicable only where a subdivision plan exists);

5. An environmental impact assessment report under Article 27 of the Environmental Impact Assessment Act (limited to a project subject to environmental impact assessment);

6. A land-substitution plan for a former landowner (applicable only where a land- substitution plan exists);

7. Documents concerning measures for preserving national heritage;

8. Documents required for consulting with the heads of relevant administrative agencies;

9. Details of land, etc. to be expropriated or used (limited only if necessary).

(2) "Where modifying insignificant matters prescribed by Presidential Decree" in the proviso of Article 23(2) of the Act means where modifying the matters under Article 11.

(3) Where a designating authority approves an implementation plan for a regional development plan (hereinafter referred to as "implementation plan") pursuant to Article 23(3) of the Act, it shall give public notice of the following matters in the Official Gazette or public report:

1. Name (if a corporation, the names of the corporation and its representative) and address of an implementer;

2. Name and objective of the project, location and size of land subject to the implementation of the project, and period for implementing the project;

3. Location map of land subject to the project;

4. Ground plan and summary design drawings;

5. An annual investment plan and a financing plan;

6. Details of land, etc. to be expropriated or used (applicable only if necessary).

(4) A designating authority shall notify and submit to the relevant registry the matters concerning paragraph (3)1 and 2 and a land statement on the zone in which a regional development project is implemented by a land substitution method under Article 26(1) of the Act.

Article 26(Methods of calculating number of assenters) #

(1) Where the size of land subject to a regional development project under the proviso of Article 27(1) of the Act is to be calculated, the size of national land or public land shall be included therein.

(2) The method of calculating the number of assenters under Article 27(2) of the Act shall be as follows: <Amended on Jun. 2, 2017>

1. Where several persons share joint ownership over land or a building: To deem the representative of co-owners, approved by other co-owners, as the owner of the land or the building; provided, in cases of sectional owners under subparagraph 2 of Article 2 of the Act on Ownership and Management of Condominium Buildings, a sectional owner shall be respectively deemed an owner of land;

2. Where the sectional ownership under subparagraph 1 of Article 2 of the Act on Ownership and Management of Condominium Buildings is divided after the date of public announcement and public inspection under Article 15(3), and thus the number of landowners increases: To calculate based on the number of landowners before the date of public announcement and public inspection, and to exclude the increased number of landowners from the total number of landowners;

3. Where national land or public land is included: To obtain approval from at least 1/2 the owners of land excluding national land or public land, and if the number of such landowners below the quorum for approval under Article 27(2) of the Act, to obtain approval from the management agencies of national land or public land.

(3) Where the owners of land and buildings approve or withdraw approval, they shall submit a written approval or written withdrawal prescribed by Decree of the Ministry of Land, Infrastructure and Transport to the implementer, and the representative of co-owners of land and buildings shall submit such documents accompanied by a written approval for designating the representative and by documents proving the identities of the representative of co-owners and co-owners.

(4) Except as otherwise provided for in paragraphs (1) through (3), detailed matters concerning the methods and procedures for calculating the number of assenters shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 37(Advance payment) #

(1) An implementer who intends to receive advance payment pursuant to Article 31(1) of the Act shall obtain approval from the designating authority after meeting the following requirements: <Amended on Jan. 22, 2016>

1. An implementer falling under Article 19(1)1 through 3 of the Act: To file an application for approval for advance payment after an implementation plan is approved and publicly notified; provided, where he or she intends to receive advance payment before obtaining approval of the implementation plan, he or she can do so only where an investment plan for infrastructure under subparagraph 6 of Article 2 of the National Land Planning and Utilization Act is materialized after environmental impact is assessed pursuant to the Environmental Impact Assessment Act and urban traffic is assessed pursuant to the Urban Traffic Improvement Promotion Act;

2. An implementer falling under Article 19(1)6 of the Act (limited where a person who falls under Article 19(1)1 through 3 of the Act makes an investment): To secure ownership (including approval for use) over land covering at least 25/100 the size of land subject to the project after the implementation plan is approved and publicly notified; provided, where the implementer intends to receive advance payment before the implementation plan is approved, he or she can do so only where an investment plan for infrastructure under subparagraph 6 of Article 2 of the National Land Planning and Utilization Act is materialized after environmental impact is assessed pursuant to the Environmental Impact Assessment Act and urban traffic is assessed pursuant to the Urban Traffic Improvement Promotion Act;

3. An implementer falling under Article 19(1)4, 5 and 6 of the Act (excluding where a person falling under Article 19(1)1 through 3 of the Act makes an investment): To satisfy all of the following requirements after obtaining approval of the implementation plan for the relevant regional development project zone:

a. The implementer shall secure ownership over land that he or she intends to supply and mortgage thereon shall be deleted; provided, where he or she fails to secure ownership over land or to discharge a mortgage due to unavoidable reasons, the implementer, landowner and mortgagee shall have a joint agreement with the following details notarized and submit it to the designating authority:

1) The landowner shall not transfer the land to a third party or offer the land as security to any third party;

2) Where a person who pays advance money undergoes a pre-use inspection under Article 38 of the Act or permission for use before construction completion under Article 41 of the Act, the landowner and pledgee shall, without delay, transfer the ownership and discharge the mortgage;

b. Construction works to develop a site for the regional development project shall commence on the land that the implementer intends to supply;

c. A written guarantee (referring to a letter of guarantee for payment, securities, guarantee insurance policy, term deposit certificate, beneficiary certificates, etc. under Article 37(2) of the Enforcement Decree of the Act on Contracts to Which the State is a Party; hereafter the same shall apply in this Article) containing the following matters, shall be submitted to the designating authority to secure advance money where the supply contract is not fulfilled:

1) The amount of guarantee or insurance shall be an amount at least equivalent to the amount calculated by adding interest during the guarantee period or insurance period to the advance money;

2) The guarantee period or insurance period shall commence before the date advance money is paid, and ends after at least one month from the scheduled date of construction completion; provided, where the project period is extended, a written guarantee, etc., the guarantee period of which is calculated by adding the extension to the original guarantee period or insurance period, shall be submitted.

(2) After an implementer allows the supply of land or use of facilities before public announcement of construction completion, he or she shall not offer the land as security.

(3) Where an implementer fails to implement a project as stipulated by a supply contract or a designating authority recognizes that an implementer is not able to implement a project due to insolvency, etc. (including a ruling or leave by a court under the Debtor Rehabilitation and Bankruptcy Act) of the implementer, the designating authority may use the guarantee, etc. for the return of advance money before completing construction works for the relevant regional development project.

Article 38(Use and sale of developed land) #

(1) Where an implementer intends to supply land, buildings, structures, etc. developed pursuant to Article 32(1) of the Act (hereinafter referred to as "developed land, etc."), he or she shall lease or sell (hereinafter referred to as "supply") by lottery.

(2) Notwithstanding paragraph (1), developed land, etc. to be used for a profit-making purpose, such as a site to build sales facilities, etc. may be supplied by competitive bid.

(3) Notwithstanding paragraphs (1) and (2), in any of the following cases, an implementer may supply developed land, etc. by negotiated contract: <Amended on Aug. 11, 2016>

1. Where the developed land, etc. is supplied to the State or a local government;

2. Where sites for public facilities that cannot be sold to private individuals, such as a school site, public building site, etc., are supplied to the State, a local government or a person qualified to build public facilities pursuant to the statutes;

3. Where minimum land required for maintaining and managing facilities that remain according to an implementation plan is supplied;

4. Where the developed land, etc. is supplied to a person selected in a special design contest, etc. as complex and three-dimensional development in a regional development project zone is necessary or eco-friendly and sustainable development is necessary;

5. Where the developed land, etc. is supplied as a site for housing smaller than national standard housing under subparagraph 6 of Article 2 of the Housing Act to the Korea Land and Housing Corporation, or to a local public enterprise established for housing business under the Local Public Enterprises Act;

6. Other cases where the developed land, etc. may be supplied under negotiated contract according to relevant statutes.

(4) Where an implementer intends to supply developed land, etc. pursuant to paragraph (1), he or she shall publicly announce the following matters by not later than ten days (five days in cases of an emergency or resupply) before the deadline for an application for supply; provided, this shall not apply where persons to be supplied therewith are specified or their qualification is limited and individual notification is sent:

1. Name and address of the implementer and name of the representative;

2. Location and size (including total floor area and sectional area in the case of a building) of developed land, etc.;

3. Use of developed land, etc. (where use is restricted, including the details of the restriction);

4. Timing and methods for supply and conditions therefor;

5. Supply price (in cases of lease, including a security deposit and rent) or methods of determining the supply price;

6. Requirements for qualification for persons to be supplied with developed land, etc. and methods of selecting them;

7. Period and place to file an application for supply.

(5) Where an implementer intends to supply developed land, etc. as a site listed in Article 39(3), he or she may disqualify persons to be supplied with developed land, etc. or attach a condition thereto.

Article 39(Supply price of developed land) #

(1) The supply (excluding lease) price of developed land, etc. shall be the price appraised by an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers. <Amended on Aug. 31, 2016; Jan. 21, 2022>

(2) Notwithstanding paragraph (1), the successful bid price shall be the supply price of developed land, etc. in cases of supply (excluding lease) under Article 38(2). In such cases, the amount appraised pursuant to paragraph (1) shall be the minimum bid price.

(3) Notwithstanding paragraphs (1) and (2), an implementer may supply developed land at a supply (excluding lease) price as follows: <Amended on Aug. 11, 2016>

1. Where the developed land is supplied as a site for the following: Development cost; provided, where the supply price is prescribed by the following statutes, the standards under the relevant statutes shall prevail:

a. A site for industrial facilities, such as factories; knowledge industry-related facilities; cultural industry-related facilities; facilities related to the information and communications technology industry; recycling industry-related facilities; resource stockpiling facilities, etc.; a site for data processing facilities; a site for exhibition facilities; and a site for research facilities under Article 2 of the Industrial Sites and Development Act;

b. A site for the facilities for new and renewable energy power generation under subparagraph 4 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy;

c. A site for logistics facilities and logistics terminals under subparagraphs 1 and 2 of Article 2 of the Act on the Development and Management of Logistics Facilities;

d. A site for a joint logistics center under subparagraph 16 of Article 2 of the Distribution Industry Development Act;

2. Where the developed land is supplied as a site for the following: Development cost or below:

a. A public office site; school site; public medical facility site; public welfare facility site; parking lot site (limited to where the developed land is supplied to the State or a local government); and automobile depot site;

b. A site for construction works for national standard housing with an area not exceeding 60 square meters only for residential use under subparagraph 6 of Article 2 of the Housing Act;

c. A site supplied as relocation measures are implemented. In such cases, expenses necessary for the basic living facilities under Article 78(4) of the Act on Acquisition of and Compensation for Land for Public Works Projects shall be deducted from the cost.

(4) An amount calculated according to Appendix 1 shall be the development cost under paragraph (3).

(5) The standards for calculating a security guarantee and rent, and lease period of developed land, etc. shall be as follows:

1. Security guarantee: 10/100 of the supply price determined under paragraphs (1) through (3);

2. Rent: An amount calculated by multiplying the supply price determined under paragraphs (1) through (3) by the interest rate determined and publicly notified by the Minister of Land, Infrastructure and Transport based upon the average bank interest rate for one-year deposit under the Banking Act when an implementation plan is approved or public notified under Article 23 of the Act; provided, the implementer may increase or decrease by up to 10/100 of the rent based upon the regional circumstances, results of supply, etc.;

3. Lease period: Within ten years; provided, where a lessee intends to renew the contract after the lease period, the lessor shall comply therewith except in extenuating circumstances.

Article 41(Supply of undeveloped land and development procedures) #

(1) Where an implementer intends to obtain approval from a designating authority for the supply and development of undeveloped land pursuant to Article 33(1) of the Act, he or she shall submit a supply plan which includes the following. In such cases, the designating authority may approve the supply of undeveloped land after designating and publicly notifying a regional development project zone:

1. Location and size of land to be supplied, and purpose of supply;

2. Matters concerning a person who develops undeveloped land (hereinafter referred to as "undeveloped land developer") under Article 33(3) of the Act (including data to ascertain whether Article 33(1) of the Act applies);

3. A plan to accommodate population in the undeveloped land; a plan to utilize land; a plan to handle traffic; a plan to preserve the environment; a plan to install major infrastructure; and a plan to use the undeveloped land, etc.;

4. Conditions for use of the undeveloped land;

5. Expected supply price and main conditions of a contract;

6. Other matters the designating authority deems necessary in consideration of the properties of the project, determined in consultation with the implementer.

(2) The proportion of a regional development project zone that can be supplied as undeveloped land under the latter part of Article 33(1) of the Act shall not exceed 1/3 of the entire area of the regional development project zone.

(3) "A period prescribed by Presidential Decree" in the main sentence of Article 33(6) of the Act shall be the period that ends first:

1. Five years from the date completion of construction works to develop undeveloped land is publicly announced;

2. Ten years from the date a contract for supplying undeveloped land is concluded.

(4) "Cases prescribed by Presidential Decree, such as housing for relocation, public and cultural facilities, etc." in the proviso of Article 33(6) of the Act means where undeveloped land is used as follows:

1. A site for rental housing, such as housing for relocation, etc.;

2. A site for infrastructure, such as public and cultural facilities, etc.;

3. A site for facilities that are impracticable for an undeveloped land developer to directly install or operate.

(5) Where an implementer rescinds a contract to supply undeveloped land pursuant to Article 33(8) of the Act, he or she shall request the undeveloped land developer for correction at least two times; where the undeveloped land developer fails to take corrective measures, he or she may rescind the contract to supply undeveloped land. In such cases, the undeveloped land developer may submit his or her opinion on the request for correction.

(6) An undeveloped land developer under Article 33(9) of the Act shall be selected by negotiated contract; provided, an undeveloped land developer falling under Article 33(1)5 of the Act shall be selected by competitive bid; where a successful bidder cannot be selected by the competitive bid at least twice, negotiated contract may be employed.

(7) The supply price of undeveloped land under Article 33(9) of the Act shall be determined by consultation between an implementer and an undeveloped land developer based upon an amount calculated by aggregating the assessed price of undeveloped land stated in a regional development project plan under Article 11(6)10 of the Act with the construction cost of infrastructure, etc. installed by the implementer on the undeveloped land.

(8) The scope of duties of an implementer and undeveloped land developer under Article 33(9) of the Act shall be determined by supply contract, and the implementer shall take charge of the duties under the relevant statutes, such as filing an application, etc. for authorization, permission, etc. for developing undeveloped land.

Article 46(Establishment of regional development coordination committees) #

(1) A regional development coordination committee shall consist of the following persons pursuant to Article 43(3) of the Act: <Amended on Jun. 2, 2017>

1. A public official of a bureau director-general level in charge of duties relating to regional development of the relevant City/Do;

2. The head of a regional environmental office; the head of a regional office of construction management; and the head of a regional office of the Forest Service;

3. Persons entrusted by the chairperson of a regional development coordination committee based upon gender equality from among persons with abundant knowledge and experience in the field of regional development, such as planning of the national land, cities, tourism, logistics, science and technology, finance, environment, national defense, military installations, etc.

(2) The term of office of a member entrusted by the chairperson of a regional development coordination committee pursuant to paragraph (1)3 shall be two years, renewable for only one further term.

(3) The chairperson of a regional development coordination committee (hereinafter referred to as "chairperson") shall represent the regional development coordination committee and have general control over the duties of the regional development coordination committee.

(4) Where the chairperson is unable to perform duties due to inevitable circumstances, the vice chairperson shall perform the duties of the chairperson; where both the chairperson and vice chairperson are unable to perform duties due to inevitable circumstances, a member designated by the chairperson shall perform the duties of the chairperson on his or her behalf.

(5) A regional development coordination committee shall have an executive secretary who processes its duties and a division director level official in charge of duties relating to regional development of the relevant City/Do shall be qualified as the executive secretary.

Article 59(Establishment and operation of integrated regional development information network) #

(1) Information relating to regional development for which an integrated regional development information network (hereinafter referred to as "integrated information network") is to be established and operated pursuant to Article 57 of the Act shall be as follows: <Amended on Sep. 15, 2020; May 7, 2024>

1. Information necessary for formulating and implementing regional development plans under Article 7 of the Act;

2. Information necessary for designating regional development project zones under Article 11 of the Act, leading investment districts, etc. under Article 45 of the Act;

3. Outcomes of a basic inspection, etc. under Article 34(1) of the Act;

4. Information provided by relevant agencies, such as industrial sites, urban planning, environment, infrastructure, housing site, tourism, national heritage, etc. necessary for efficiently implementing regional development under Article 57(4) of the Act;

5. Outcomes of evaluating feasibility of a regional development project under Article 65(1) of the Act.

(2) Pursuant to Article 57(3) of the Act, the Minister of Land, Infrastructure and Transport shall entrust the establishment and management of an integrated information network to any of the following institutions deemed to have human resources and equipment to perform the entrusted affairs: <Added on Sep. 15, 2020>

1. The Korea Research Institute for Human Settlements established pursuant to Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes (hereinafter referred to as the "Korea Research Institute for Human Settlements");

2. The Korea Land and Housing Corporation;

(3) Upon entrusting the establishment and management of an integrated information network under paragraph (2), the Minister of Land, Infrastructure and Transport shall give public notice of the entrusted institution and the details of the entrusted affairs in the Official Gazette. <Added on Sep. 15, 2020>

Article 68(Districts subject to conversion under other statutes) #

(1) "Area, district, zone, etc. for a development project prescribed by Presidential Decree" in Article 72(1), with the exception of its subparagraphs, of the Act means the following: <Amended on Jun. 28, 2016; May 2, 2023; Jul. 2, 2024>

1. A tourist destination and a tourism complex under Article 52(1) of the Tourism Promotion Act;

2. A special tourist zone under Article 70(1) or (2) of the Tourism Promotion Act;

3. An urban development zone under Article 3(1) and (2) of the Urban Development Act;

4. An investment promotion district under Article 25(1) of the Special Act on the Development of the East, West, and South Coast Areas;

5. A cultural industry promotion zone under Article 28-2(1) of the Framework Act on the Promotion of Cultural Industries;

6. A general logistics complex under Article 22 of the Act on the Development and Management of Logistics Facilities;

6-2. An urban advanced logistics complex (excluding complexes designated by the Minister of Land, Infrastructure and Transport) under Article 22-2(1) of the Development and Management of Logistics Facilities;

7. A general industrial complex under Article 7(1) of the Industrial Sites and Development Act;

8. An urban high-tech industrial complex (excluding complexes designated by the Minister of Land, Infrastructure and Transport) under Article 7-2(1) of the Industrial Sites and Development Act;

9. An agricultural and industrial complex under Article 8 of the Industrial Sites and Development Act;

10. An industrial complex for lease only (excluding complexes designated by the Minister of Land, Infrastructure and Transport) under Article 46-6 of the Industrial Sites and Development Act;

11. A station area development district under Article 4(1) of the Act on Developing and Using Station Areas;

12. A housing site development zone under Article 3(1) of the Housing Site Development Promotion Act;

13. Other areas, districts, zones, etc. for development projects as publicly notified by the Minister of Land, Infrastructure and Transport as he or she deems necessary after deliberation by the National Land Policy Committee.

(2) If a regional development project zone or an implementer is to be converted under Article 72(1) of the Act, a conversion plan stating the matters under Article 11(6) of the Act shall be submitted to the Minister of Land, Infrastructure and Transport together with the following documents:

1. Documents submitted to a designating authority pursuant to relevant Acts to obtain designation of an area, district, zone, etc. (hereafter referred to as "existing district, etc." in this Article) pursuant to relevant Acts;

2. Documents proving that Article 72(1) of the Act applies.

(3) Where the Minister of Land, Infrastructure and Transport converts the existing district, etc. into a regional development project zone or converts a project implementer of an existing district, etc. into an implementer under the Act pursuant to Article 72(2) of the Act, he or she shall give public notice of the matters referred to in Article 11(6) of the Act and grounds for conversion in the Official Gazette.

(4) When the rescission of designation of an existing district, etc. is publicly notified in the Official Gazette or public report pursuant to Article 72(4) of the Act, the implementer shall, without delay, notify the repurchase right holder (hereafter in this Article, referred to as "repurchase right holder") under Article 91(1) of the Act on Acquisition of and Compensation for Land for Public Works Projects that the public works project is converted pursuant to Article 72(7) of the Act.

(5) Where the repurchase right holder is unidentified without fault of an implementer, or his or her whereabouts is unknown, a public announcement may be substituted for notification, notwithstanding paragraph (4).

(6) The public announcement under paragraph (5) may be made by an implementer by sending documents to be publicly announced to the head of a Si/Gun/Gu (including the head of a Gu that is not an autonomous Gu) and by posting them on the bulletin board of the relevant Si/Gun/Gu (including a Gu that is not an autonomous Gu) for 14 days. In such cases, such documents shall be deemed served on a person who is to be delivered such notification 14 days from the date such documents are posted.

Article 69-2(Delegation of authority) #

(1) The Minister of Land, Infrastructure and Transport shall delegate the following authorities on regional development projects to the head of a regional office of construction management pursuant to Article 79 of the Act: <Amended on Dec. 28, 2021>

1. Consulting on modifying insignificant matters of a regional development project under the latter part of Article 8(1) of the Act;

2. Having a prior consultation with a Mayor/Do Governor on designating and modifying a regional development project zone under Article 11(8) of the Act;

3. Issuing an order to submit a report or data, and inspecting duties relating to a regional development project under Article 76 of the Act;

4. Imposing and collecting administrative fines under Article 83(1)4 of the Act;

5. Consulting on modifications of insignificant matters in a regional development plan under Article 4(1)2b and the proviso of, with the exception of the items, of Article 4(1)3;

6. Consulting on modifications of insignificant matters in a regional development project zone under the proviso of, with the exception of subitems 1) and 2), of subparagraph 1c Article 11 and under subparagraph 5b of Article 11.

(2) The Minister of Land, Infrastructure and Transport shall delegate the following authorities on a leading investment zone deemed designated pursuant to Article 79 of the Act, as a regional development project zone under the latter part of Article 45(1) of the Act to a Mayor/Do Governor; provided, where the project implementer is the State or a Mayor/Do Governor, this shall not apply:

1. Designating a project implementer under Article 19(1) of the Act;

2. Designating a general project manager under Article 20(1) and (2) of the Act;

3. Revoking designation of an implementer and designating a substitute implementer under Article 20(1) and (2) of the Act;

4. Consulting on and approving an implementation plan under Article 23(1) of the Act;

5. Conducting a pre-use inspection under Article 38 of the Act;

6. Necessary measures, such as issuing a certificate of pre-use inspection, publicly announcing construction completion, implementing supplementary construction works, etc. under Article 39

7. Consultation with the heads of relevant administrative agencies for completion Inspection, authorization of completion, etc. under Article 40(3) of the Act;

8. Granting permission for use of developed land before construction completion, etc. under the proviso of Article 41 of the Act;

9. Imposing necessary dispositions, such as authorization, approval, permission, cancellation of designation, etc. or issuance of an order under Article 75(1) of the Act, and public notice under paragraph (2) of the same Article;

10. Reporting and inspection under Article 76 of the Act;

11. Holding a public hearing under Article 77 of the Act.

[This Article Added on Jun. 2, 2017]

ENFORCEMENT DECREE OF THE REGIONAL DEVELOPMENT ASSISTANCE ACT

Article 1(Purpose) #

Article 2(Formulation of regional development plans) #

Article 3(Hearing opinions of residents) #

Article 4(Modification of insignificant matters in regional development plans) #

Article 5(Public notice of regional development plans) #

Article 6(Details of regional development plans) #

Article 7(Restrictions on formulating regional development plans) #

Article 8(Standards for designating small-scale regional development project zones) #

Article 9(Requirements for designating regional development project zones) #

Article 10(Types and scale of natural parks and park facilities) #

Article 11(Modifying insignificant matters concerning regional development project zones) #

Article 12(Documents to be included in formulated or amended regional development project plans) #

Article 13(Scale of regional development project zones subject to prior consultation when designating regional development project zones) #

Article 13-2(Support for formulation of regional development projects plans) #

Article 14(Methods of dividing and integrating regional development project zones) #

Article 15(Hearing opinions on designating and modifying regional development project zones) #

Article 16(Public hearings) #

Article 17(Prior consultation) #

Article 18(Public notice of designating regional development project zones) #

Article 19(Restrictions on engaging in activities) #

Article 20(Standards for designating implementers, procedures therefor) #

Article 20-2(Vicarious implementation of regional development projects) #

Article 20-3(Designating general project managers) #

Article 21(Expenses incidental to acquisition of land) #

Article 22(Entrustment of construction works of public facilities) #

Article 23(Entrustment of purchase of land) #

Article 24(Approval for implementation plans) #

Article 25(Organization of conference on deemed authorization and permission) #

Article 26(Methods of calculating number of assenters) #

Article 27(Volume of land redemption bonds to be Issued) #

Article 28(Institutions Guaranteeing land redemption bonds) #

Article 29(Plans to Issue land redemption bonds) #

Article 30(Public Announcement of Issuance of land redemption bonds) #

Article 31(Conditions for issuing land bonds) #

Article 32(Subscription for land bonds) #

Article 33(Matters to be Stated in land redemption bonds) #

Article 34(Keeping land redemption bond Registers) #

Article 35(Transfer of land bonds) #

Article 36(Notification to Owners of land redemption bonds) #

Article 37(Advance payment) #

Article 38(Use and sale of developed land) #

Article 39(Supply price of developed land) #

Article 40(Application of supply methods with necessary modifications) #

Article 41(Supply of undeveloped land and development procedures) #

Article 42(Scope of basic inspection) #

Article 43(Public announcement of construction completion) #

Article 44(Permission for use before construction completion) #

Article 45(Matters to be deliberated by regional development coordination committees) #

Article 46(Establishment of regional development coordination committees) #

Article 47(Operation of regional development coordination committees) #

Article 48(Disqualification of and voluntary refrainment by members) #

Article 49(Establishment and operation of comprehensive regional development support committees) #

Article 50(Standards for designating leading investment districts) #

Article 51(Application for designating leading investment districts) #

Article 51-2(Modifying insignificant matters regarding leading investment districts) #

Article 52(Rescission of designation of leading investment districts) #

Article 53(Public notice of designation of leading investment districts) #

Article 54(Exceptions to the National Land Planning and Utilization Act) #

Article 55(Termination of contracts for lease and sale of State property and public property) #

Article 56(Reduction of and exemption from rent for State property) #

Article 57(Application for support for authorization or permission for resident enterprises) #

Article 58(Building infrastructure and providing subsidies) #

Article 58-2(Scope of installation of electric facilities in regional development project zones) #

Article 59(Establishment and operation of integrated regional development information network) #

Article 60(Projects in which development gains are to be reinvested and scope) #

Article 61(Standards for recommendation of autonomous schools) #

Article 62(Incidental businesses of medical foundations) #

Article 63(Designation of specialized evaluation institutions) #

Article 64(Specialized institutions for vicarious evaluation of results of implementation of regional development projects) #

Article 65(Requirements for designating regional stimulation areas) #

Article 66(Preferential support for regional stimulation areas) #

Article 67(Operation of special account) #

Article 68(Districts subject to conversion under other statutes) #

Article 69(Public notice of revocation of designation) #

Article 69-2(Delegation of authority) #

Article 70(Imposition of administrative fines) #