ACT ON COEXISTENCE AND REVITALIZATION OF LOCAL TRADING AREAS

Article 1(Purpose) #

The purpose of this Act is to contribute to the revitalization of the local economy and the balanced development of the national economy by prescribing matters necessary for promoting mutual cooperation among members of local trading areas, ensuring mutually beneficial development of local communities, and maintaining self-sustaining and self-reliant trading areas.

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. "Local trading area" means an area packed with commercial buildings (referring to commercial buildings as defined in the Commercial Building Lease Protection Act; hereinafter the same shall apply) where a localized living, cultural, and economic community is created jointly by the owners of such buildings, landlords, tenants, landowners, residents, and others;

2. "Local coexistence zone" means a zone in a local trading area designated pursuant to Article 12, which satisfies all of the following requirements:

a. Commercial areas referred to in the National Land Planning and Utilization Act account for at least 50/100;

b. A trading area packed with wholesalers, retailers or service providers, the number of which shall be not less than the number prescribed by Presidential Decree, is created in the relevant zone;

c. An area that meets the criteria prescribed by Presidential Decree as an area where rents have risen, or is likely to rise, sharply at the time an application is filed for the designation of a zone under Article 12;

3. "Local coexistence council" refers to an autonomous organization formed in accordance with Article 14 to designate local coexistence zones and to promote coexistence and revitalization of local trading areas;

4. "Autonomous trading zone" means a zone in a local trading area designated pursuant to Article 15, which satisfies all of the following requirements:

a. Commercial areas referred to in the National Land Planning and Utilization Act account for at least 50/100;

b. A trading area packed with wholesalers, retailers or service providers, the number of which shall be not less than the number prescribed by Presidential Decree, is created in the relevant zone;

c. At least 2, out of the number of businesses, sales, and population, have decreased below the standard prescribed by Presidential Decree at the time an application is filed for the designation of a zone under Article 15;

5. "Autonomous trading area association" means an association established pursuant to Article 19 for the purpose of designating autonomous trading zones and promoting joint projects for the coexistence and revitalization of local trading areas.

Article 3(Responsibilities of the State and local governments) #

The State and local governments shall provide administrative and financial support necessary to ensure that the purposes of designating local coexistence zones and autonomous trading zones (hereinafter referred to as "revitalization zones") are achieved.

Article 4(Obligations of landlords and tenants to cooperate) #

The owners, landlords, tenants, residents, etc. of commercial buildings in a revitalization zone shall endeavor to actively participate and cooperate in the policy measures of the State and local governments for the coexistence and revitalization of local trading areas.

Article 5(Relationship to other statutes) #

(1) The provisions of this Act regarding the support and special cases for revitalization zones shall take precedence over the corresponding provisions under other statutes; provided, if other statutes contain provisions more relaxed than special cases concerning regulations under this Act, such provisions shall apply.

(2) Except as provided in this Act, the provisions concerning cooperatives in the Framework Act on Cooperatives shall apply mutatis mutandis to an autonomous trading area association.

Article 6(Formulation of comprehensive plan) #

(1) The Minister of SMEs and Startups shall formulate a comprehensive plan for the coexistence and revitalization of local trading areas (hereinafter referred to as "comprehensive plan"), which includes the following, every 3 years and implement such plan for the systematic development of revitalization zones:

1. Basic goals and development direction of coexistence and revitalization of local trading areas;

2. Matters concerning projects for coexistence and revitalization of local trading areas and support therefor;

3. Matters concerning the procurement and management of financial resources;

4. Matters concerning the training and nurturing of human resources specialized in local trading areas;

5. Other matters necessary for coexistence and revitalization of local trading areas.

(2) The Minister of SMEs and Startups may request the heads of relevant central administrative agencies or the heads of local governments to submit data necessary for the formulation of a comprehensive plan. In such cases, the person so requested shall comply, unless there is a compelling reason not to do so.

(3) Except as provided in paragraphs (1) and (2), matters necessary for the formulation and implementation of a comprehensive plan shall be prescribed by Presidential Decree.

Article 7(Formulation of local master plan) #

(1) The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, and a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall formulate and implement a master plan, which reflects the comprehensive plan and characteristics of the area under his or her jurisdiction (hereinafter referred to as "local master plan"); provided, a Mayor/Do Governor of an area for which a revitalization zone is designated shall formulate and implement a local master plan on an annual basis.

(2) A Mayor/Do Governor may request the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) to submit necessary data to formulate a local master plan. In such cases, the person so requested shall comply, unless there is a compelling reason not to do so.

(3) When a Mayor/Do Governor has formulated a local master plan pursuant to paragraph (1), he or she shall submit the details thereof to the Minister of SMEs and Startups.

Article 8(Fact-finding survey) #

(1) The Minister of SMEs and Startups and a Mayor/Do Governor may conduct a fact-finding survey necessary for the designation and operation of revitalization zones to formulate a comprehensive plan and local master plan and to efficiently manage local trading areas.

(2) A fact-finding survey shall include the following:

1. Matters concerning lease information, such as rent growth rates;

2. Matters concerning changes in sales in trading areas;

3. Matters concerning changes in the number of startups, closures, and employees;

4. Other matters necessary for understanding the actual condition of revitalization zones.

(3) If it is deemed necessary for fact-finding surveys, the Minister of SMEs and Startups and a Mayor/Do Governor may request data from the head of a relevant central administrative agency, the head of a local government, the representative of a local coexistence council under Article 14 or the representative of an autonomous trading area association under Article 19. In such cases, the person so requested shall cooperate, unless there is a compelling reason not to do so.

(4) When a Mayor/Do Governor has conducted a fact-finding survey pursuant to paragraph (1), he or she shall submit the findings thereof to the Minister of SMEs and Startups.

Article 9(Enactment of municipal ordinance) #

(1) A local government may determine, by ordinance, matters necessary for the operation of revitalization zones within its jurisdiction and the implementation of a local master plan, as prescribed by Presidential Decree.

(2) When a local government enacts, amends or repeals an ordinance under paragraph (1), it shall notify the Minister of SMEs and Startups and the heads of relevant administrative agencies thereof.

Article 10(Coexistence agreement) #

(1) A merchant who conducts full-time business (hereinafter referred to as "merchant") at a store in an area to be designated as a local coexistence zone under Article 12 (hereinafter referred to as "preliminary local coexistence zone") or in an area to be designated as an autonomous trading area under Article 15 (hereinafter referred to as "preliminary autonomous trading area"), landlords, etc. shall conclude a coexistence agreement for local coexistence development (hereinafter referred to as "coexistence agreement") with the consent of at least two-thirds of each group of the merchants, landlords, etc. in a preliminary local coexistence zone or a preliminary autonomous trading area, as prescribed by the Presidential Decree.

(2) A coexistence agreement shall include the following:

1. Matters for the stabilization of rents;

2. Matters concerning the adjustment of the lease term;

3. Matters concerning the guarantee of the right to request the renewal of the contract and the opportunity to collect the key money;

4. Other matters deemed necessary by tenants, landlords, etc. for the development of a revitalization zone.

(3) A person who has entered into a coexistence agreement shall submit the details thereof to a Special Self-Governing City Mayor, a Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (hereinafter referred to as "head of a Si/Gun/Gu") and obtain approval therefor.

(4) The head of a Si/Gun/Gu shall notify whether approval has been granted within 30 days from the date of receipt of a coexistence agreement pursuant to paragraph (3).

(5) If the head of a Si/Gun/Gu fails to notify whether approval has been granted within the period prescribed in paragraph (4), it shall be deemed that approval has been granted on the day following the expiry of such period.

(6) The Minister of SMEs and Startups or a Mayor/Do Governor may prepare and disseminate a standard draft of a coexistence agreement for the conclusion of the agreement, provide legal and technical advice, or provide an opportunity to seek help from relevant experts.

Article 11(Establishment and composition of local trading area committee) #

(1) A local trading area committee may be established in the Special Metropolitan City, a Metropolitan City, a Special Self-Governing City, a Do, or a Special Self-Governing Province (hereinafter referred to as "City/Do") to deliberate on the following:

1. Designation or change of revitalization zones;

2. Cancellation of designation of revitalization zones;

3. Mediation of disputes between landlords and tenants in revitalization zones;

4. Other matters prescribed by ordinance of a local government to require deliberation by the local trading area committee.

(2) A local trading area committee shall consist of not less than 11 and not more than 15 members, including one chairperson.

(3) Other matters necessary for the organization and operation of a local trading area committee shall be prescribed by ordinance of a City/Do.

Article 12(Application for and designation of local coexistence zone) #

(1) A person representing a local coexistence council pursuant to Article 14 may apply for the designation of a local coexistence zone to the head of a Si/Gun/Gu if consent is given by at least two-thirds of each group of the merchants, commercial building landlords, and landowners in a preliminary local coexistence zone (hereinafter referred to as "merchants and others in a preliminary local coexistence zone").

(2) If any change is necessary after a local coexistence zone has been designated, a person representing a local coexistence council may file an application for such change with the consent of at least two-thirds of each group of the merchants and others in the preliminary local coexistence zone.

(3) Upon receipt of an application for the designation or change of a local coexistence zone, the head of a Si/Gun/Gu shall review the following requirements and file an application for approval with a Mayor/Do Governor; provided, this shall not apply to changes to minor matters prescribed by Presidential Decree:

1. It shall align with the details of a local master plan;

2. It shall satisfy all the requirements prescribed in the items of subparagraph 2 of Article 2;

3. A coexistence agreement shall be in place.

(4) Merchants and others in a preliminary local coexistence zone may withdraw their consent to an application for or change of the designation of a local coexistence zone under paragraphs (1) and (2) before the head of a Si/Gun/Gu files an application for approval with the Mayor/Do Governor.

(5) When the head of a Si/Gun/Gu intends to file an application for approval under paragraph (3), he or she shall hold a public hearing to collect opinions of residents, relevant experts, etc., as prescribed by Presidential Decree.

(6) Upon receipt of an application for approval under paragraph (3), the Mayor/Do Governor shall determine whether to grant approval within 30 days following deliberation by the local trading area committee and shall notify the head of the relevant Si/Gun/Gu thereof; provided, if there are justifiable grounds, the deliberation period may be extended only once by up to 15 days upon resolution of the local trading area committee.

(7) If the Mayor/Do Governor fails to give notice of whether to grant approval within the period prescribed in paragraph (6), the approval shall be deemed to have been granted on the day following the expiry of the period (referring to the relevant deliberation period if the period is extended pursuant to the proviso of paragraph (6)).

(8) When the head of a Si/Gun/Gu obtains approval from the Mayor/Do Governor pursuant to paragraph (6), he or she shall designate an area as a local coexistence zone or change it to a local coexistence zone. In such cases, the fact shall be reported to the Minister of SMEs and Startups and publicly announced in the Official Gazette or Public Gazette.

(9) Other matters necessary for the designation of a local coexistence zone, application therefor, and withdrawal of such application, such as the method of calculating the number of consenters, shall be prescribed by Presidential Decree.

Article 13(Cancellation of designation of local coexistence zone) #

(1) The head of a Si/Gun/Gu may cancel the designation of a local coexistence zone with the approval of a Mayor/Do Governor after undergoing deliberation by the local trading area committee, if a local coexistence zone designated pursuant to Article 12 falls under any of the following cases:

1. Where the local coexistence council files an application with the consent of at least two-thirds of each group of the merchants, commercial building landlords, and landowners in the local coexistence zone;

2. Where it is difficult to operate the local coexistence zone due to its designation as a development zone, area, district, etc. under other statutes or regulations;

3. Where the designation becomes no longer appropriate due to circumstantial changes.

(2) When the designation of a local coexistence zone is canceled pursuant to paragraph (1), the head of a Si/Gun/Gu shall report the fact to the Minister of SMEs and Startups and publicly announce it in the Official Gazette or Public Gazette.

(3) Other matters necessary for the cancellation of the designation of a local coexistence zone shall be prescribed by Presidential Decree.

Article 14(Composition and operation of local coexistence council) #

(1) Merchants and others in a preliminary local coexistence zone shall form a local coexistence council with the consent of at least 1/2 of each group, jointly with experts with legal or specialized knowledge in the relevant field, etc.

(2) The representative of a local coexistence council shall file a report on the following matters to the head of a Si/Gun/Gu:

1. The purpose of the composition of a local coexistence council;

2. The names and addresses of the representative and members;

3. Preparation and operation plans for the designation of a local coexistence zone.

(3) A local coexistence council shall perform the following:

1. Application for designation of a local coexistence zone and change thereof;

2. Support for the conclusion of a lease agreement between merchants and landlords in a local coexistence zone;

3. Consultation on prior business coordination for business operations subject to restriction in a local coexistence zone under Article 31;

4. Suggestions for the improvement of systems for the operation of local coexistence zones;

5. Other business affairs entrusted by the Mayor/Do Governor or the head of a Si/Gun/Gu for the revitalization of a local coexistence zone.

(4) When performing the business affairs falling under paragraph (3)2 and 3, a local coexistence council shall obtain advice from experts, as prescribed by Presidential Decree.

(5) Other matters necessary for the composition and operation of a local coexistence council shall be prescribed by Presidential Decree.

Article 15(Application for and designation of autonomous trading zone) #

(1) A person representing an autonomous trading area association may apply for the designation of an autonomous trading zone to the head of a Si/Gun/Gu with the consent of at least two-thirds of each group of the merchants, landlords of commercial buildings, and landowners in a preliminary autonomous trading zone (hereinafter referred to as "merchants and others in a preliminary autonomous trading zone").

(2) If any change is necessary after an autonomous trading zone has been designated, a person representing an autonomous trading area association may file an application for such change with the consent of at least two-thirds of each group of the merchants and others in the preliminary autonomous trading zone.

(3) Upon receipt of an application for the designation or change of an autonomous trading zone, the head of a Si/Gun/Gu shall review the following requirements and file an application for approval with a Mayor/Do Governor; provided, this shall not apply to changes to minor matters prescribed by Presidential Decree:

1. It shall align with the details of a local master plan;

2. It shall satisfy all the requirements prescribed in the items of subparagraph 4 of Article 2;

3. Financing and operation plans for an autonomous trading area association under Article 19 shall be feasible;

4. A coexistence agreement shall be in place.

(4) Merchants and others in a preliminary autonomous trading zone may withdraw their consent to an application for or change of the designation of an autonomous trading zone under paragraphs (1) and (2) before the head of a Si/Gun/Gu files an application for approval with the Mayor/Do Governor.

(5) When the head of a Si/Gun/Gu intends to file an application for approval under paragraph (3), he or she shall hold a public hearing to collect opinions of residents, relevant experts, etc., as prescribed by Presidential Decree.

(6) Upon receipt of an application for approval under paragraph (3), the Mayor/Do Governor shall determine whether to grant approval within 30 days following deliberation by the local trading area committee and consultation with the Minister of SMEs and Startups and shall notify the head of the relevant Si/Gun/Gu thereof; provided, if there are justifiable grounds, the deliberation period may be extended only once by up to 15 days upon resolution of the local trading area committee.

(7) If the Mayor/Do Governor fails to give notice of whether to grant approval within the period prescribed in paragraph (6), the approval shall be deemed to have been granted on the day following the expiry of the period (referring to the relevant deliberation period if the period is extended pursuant to the proviso of paragraph (6)).

(8) When the head of a Si/Gun/Gu obtains approval from the Mayor/Do Governor pursuant to paragraph (6), he or she shall designate an area as an autonomous trading zone or change it to an autonomous trading zone. In such cases, the fact shall be reported to the Minister of SMEs and Startups and publicly announced in the Official Gazette or Public Gazette.

(9) Other matters necessary for the designation of an autonomous trading zone, application therefor, and withdrawal of such application, such as the method of calculating the number of consenters, shall be prescribed by Presidential Decree.

Article 16(Cancellation of designation of autonomous trading zone) #

(1) The head of a Si/Gun/Gu may cancel the designation of an autonomous trading zone with the approval of the Mayor/Do Governor after undergoing deliberation by the local trading area committee, if a local coexistence zone designated pursuant to Article 15 falls under any of the following cases:

1. Where an autonomous trading area association files an application with the consent of at least two-thirds of each group of the merchants, landlords of commercial buildings, and landowners in an autonomous trading zone (hereinafter referred to as "merchants and others in an autonomous trading zone");

2. Where it fails to conduct a project serving the purpose of the designation as an autonomous trading zone within two years after such designation due to the refusal of the merchants and others in the autonomous trading zone to participate, the delay in the business promotion by an autonomous trading area association and other reasons;

3. Where it is difficult to operate an autonomous trading zone due to its designation as a development zone, area, district, etc. under other statutes or regulations;

4. Where the designation becomes no longer appropriate due to circumstantial changes.

(2) When the designation of an autonomous trading zone is canceled pursuant to paragraph (1), the head of a Si/Gun/Gu shall report the fact to the Minister of SMEs and Startups and publicly announce it in the Official Gazette or Public Gazette.

(3) Other matters necessary for the cancellation of the designation of an autonomous trading zone shall be prescribed by Presidential Decree.

Article 17(Establishment and composition of preparatory committee) #

(1) A person who intends to establish an autonomous trading area association shall organize a preparatory committee (hereinafter referred to as "preparatory committee") with the consent of a majority of each group of the merchants and others in the preliminary autonomous trading zone.

(2) Once a preparatory committee is organized, its representative shall report the following matters to the head of a Si/Gun/Gu:

1. The purpose of the composition of the preparatory committee;

2. The names and addresses of the representative and members;

3. Preparation plans for the designation of an autonomous trading zone.

(3) If there is any change in the matters reported under paragraph (2), the representative shall file a report on such change with the head of the relevant Si/Gun/Gu.

(4) Other matters necessary for the composition, operation, and management of the preparatory committee shall be prescribed by Presidential Decree.

Article 18(Duties and dissolution of preparatory committee) #

(1) The preparatory committee shall perform the following duties:

1. Duties for promoting the establishment of an autonomous trading area association under Article 19;

2. Other duties prescribed by Presidential Decree as necessary for filing an application for the designation of an autonomous trading zone.

(2) The preparatory committee shall report and hand over the accounting books and related documents stating the duties it has performed and the details of the associated expenses to an autonomous trading area association within 30 days from the date authorization is granted for the establishment of the autonomous trading area association under Article 19.

(3) The preparatory committee shall be dissolved after the duties referred to in paragraph (2) are completed. In such cases, the rights and obligations related to the duties it has performed shall be comprehensively succeeded by the autonomous trading area association.

Article 19(Establishment of autonomous trading area association) #

(1) If the preparatory committee intends to establish an autonomous trading area association, it shall prepare articles of association, etc., obtain resolution at the founding general meeting in accordance with the methods and procedures prescribed by Presidential Decree, and have the following attached in order to obtain authorization from the head of a Si/Gun/Gu:

1. The articles of association;

2. A business plan;

3. Its own financing plan, such as membership fees, and execution plan;

4. Other documents prescribed by ordinance of a Special Self-Governing City, a Special Self-Governing Province, and a Si/Gun/Gu.

(2) Upon receipt of an application for the authorization to establish an autonomous trading area association, the head of a Si/Gun/Gu shall determine whether to grant such authorization within 60 days from the date of application.

(3) If the head of a Si/Gun/Gu fails to notify whether approval has been granted within the period prescribed in paragraph (2), it shall be deemed that approval has been granted on the day following the expiry of such period.

(4) Other necessary matters, such as standards for authorization for the establishment of an autonomous trading area association, shall be prescribed by Presidential Decree.

Article 20(Revocation of authorization for establishment of autonomous trading area association) #

(1) The head of a Si/Gun/Gu shall revoke authorization for establishment in any of the following cases:

1. Where authorization for the establishment of an association has been granted by fraud or other improper means;

2. Where an autonomous trading area association files an application for dissolution thereof with the consent of at least three-fifths of its members.

(2) Where authorization to establish an autonomous trading area association is revoked, the head of a Si/Gun/Gu shall, without delay, publicly announce the details thereof in the Official Gazette or Public Gazette.

(3) Other matters necessary for the revocation of authorization to establish an autonomous trading area association and the dissolution and liquidation thereof shall be prescribed by Presidential Decree.

Article 21(Matters to be included in articles of association) #

(1) The following matters shall be included in the articles of association of an autonomous trading area association:

1. Purpose, name and zone;

2. Location of the principal office;

3. Matters concerning the membership, withdrawal, and expulsion of members;

4. Qualifications of executive officers;

5. Other matters prescribed by the Presidential Decree as necessary for the implementation of the projects of the autonomous trading area association and the operation of the association.

(2) Where a person representing an autonomous trading area association intends to amend its articles of association, he or she shall obtain authorization for such amendment from the head of a Si/Gun/Gu; provided, this shall not apply to minor matters prescribed by Presidential Decree.

Article 22(Qualifications of members) #

(1) A member of an autonomous trading area association shall be any of the following persons:

1. Merchants in an autonomous trading zone (referring to a preliminary autonomous trading zone before the designation of an autonomous trading zone; hereafter in this Article the same shall apply);

2. Landlords and landowners of commercial buildings in an autonomous trading zone.

(2) Notwithstanding paragraph (1), an autonomous trading area association may accept enterprises, local public institutions, etc. as special members, as prescribed by the articles of association, to the extent that the purpose of establishment and efficient operation of the association are not impaired.

Article 23(Implementation of projects) #

(1) An autonomous trading area association shall perform the following:

1. Application for the designation of an autonomous trading zone and change thereof;

2. Support for the conclusion of a lease agreement between merchants and landlords in an autonomous trading zone;

3. Education and management support projects;

4. Environmental and business facility maintenance projects;

5. Projects for autonomous trading zone characterization;

6. Other projects for the development of autonomous trading zones and the common interests of the members.

(2) The State and local governments may provide support, within the budget, to an autonomous trading area association in its conduct of the projects listed in paragraph (1), by applying mutatis mutandis Articles 20, 21, 25, 26, 27, 29, and 30 of the Special Act on the Development of Traditional Markets and Shopping Districts.

(3) Matters necessary for the scope and procedures of support under paragraph (2) shall be prescribed by Presidential Decree.

Article 24(Registration of trading area manager) #

(1) An autonomous trading area association shall have a professional manager for a trading area, who meets the qualifications requirements prescribed by Presidential Decree (hereinafter referred to as "trading area manager") to efficiently conduct the projects under Article 23; provided, in the case of an autonomous trading area association consisting of members fewer than the number prescribed by the Presidential Decree, its executive officer may perform the duties of a trading area manager.

(2) A trading area manager shall register with the head of a Si/Gun/Gu, and file for modified registration if there is any change to the registered matters.

(3) Except as provided in this Act, the provisions on delegation in the Civil Act shall apply mutatis mutandis to the status of a trading area manager.

Article 25(Business scope of trading area manager) #

(1) A trading area manager shall perform the following:

1. Projects voted for by an autonomous trading area association;

2. Preparation of business operation plans and budgets and settlement of accounts

3. Acquisition, management, and disposal of assets of an autonomous trading area association;

4. Receipts, disbursements, or other accounting affairs;

5. Collection of membership fees, and other royalties and fees;

6. Temporary borrowing and other budget execution in the event of cash shortage, if spending is within the budget;

7. Storage and management of certificates and official documents;

8. Other matters that fall under the duties of a trading area manager in accordance with statutes or regulations, ordinances or rules of the relevant local government.

(2) The State and local governments may grant a subsidy, within the budget, to help cover the expenses necessary for performing the duties listed in the subparagraphs of paragraph (1).

Article 26(Training of trading area manager) #

(1) The Minister of SMEs and Startups may designate an educational institution to operate educational programs to train trading area managers, as prescribed by Presidential Decree.

(2) The State and local governments may grant a subsidy, within the budget, to the educational institution designated under paragraph (1) to help cover the expenses required for the operation of educational programs.

Article 27(Special cases concerning commercial lease contract) #

The landlord of a commercial building in a revitalization zone may not request an increase in the future rent or deposit in excess of the rate set by the coexistence agreement, which shall be within the rate prescribed in the proviso of Article 11(1) of the Commercial Building Lease Protection Act.

Article 28(Special cases concerning installation of attached parking lots) #

Notwithstanding Article 19(3) of the Parking Lot Act, the standards prescribed by Presidential Decree shall apply to the standards for the installation of parking lots attached to a revitalization zone.

Article 29(Special cases concerning Onnuri gift certificate franchisees) #

(1) Merchants and an autonomous trading area association in an autonomous trading zone may register as franchisees under subparagraph 13 of Article 2 of the Special Act on the Promotion of Traditional Marketplaces and Shopping Districts.

(2) Articles 26-4 through 26-6, 26-9, 26-12, 26-13 and 74 of the Special Act on the Promotion of Traditional Marketplaces and Shopping Districts shall apply mutatis mutandis to the registration of franchisees, matters to be observed, revocation of registration, and others. <Amended on Dec. 16, 2025>

Article 30(Support for revitalization zones) #

(1) The State and local governments may provide the following support for the development of revitalization zones:

1. Reduction or exemption of taxes or charges prescribed by ordinance of a local government;

2. Loans to commercial building owners for building remodeling, major repairs, etc.;

3. Loans to merchants and those moving into a revitalization zone under paragraph (2) for facility costs, operating costs, etc.;

4. Subsidies for surveys and research expenses, etc. for revitalization.

(2) The State and local governments may purchase or lease a building or land within a revitalization zone for the purpose of occupancy of persons prescribed by Presidential Decree, such as merchants and others if deemed necessary for the coexistence and revitalization of local trading areas.

(3) Other necessary matters, such as the standards and scope of support under paragraphs (1) and (2), procedures and methods for applying for support, etc. shall be prescribed by Presidential Decree.

Article 31(Restriction on business types) #

(1) The head of a Si/Gun/Gu may prohibit or restrict the establishment of any of the following businesses or facilities in a local coexistence zone to ensure mutual growth thereof:

1. Speculative business under the Act on Special Cases concerning Regulation and Punishment of Speculative Acts;

2. Business prescribed by Presidential Decree, such as entertainment pub business, among food service businesses under the Food Sanitation Act;

3. A store directly managed by a franchise headquarters whose annual sales are not less than the standard prescribed by Presidential Decree, among franchise businesses under Article 2 of the Fair Transactions in Franchise Business Act;

4. A superstore or a quasi-superstore defined in Article 2 of the Distribution Industry Development Act (in the case of stores falling under subparagraph 4c of Article 2 of the Distribution Industry Development Act, only those under the direct management of the headquarters of a chain business whose annual sales are not less than the standard prescribed by Presidential Decree shall be included);

5. Other facilities that may harm the purpose of designation of a local coexistence zone, as prescribed by ordinance of the relevant local government.

(2) Before prohibiting or restricting the establishment of business or facilities pursuant to paragraph (1), the head of a Si/Gun/Gu shall publicly announce the details of the prohibited or restricted business or facilities following consultation with a local coexistence council and deliberation by a local trading area committee, as prescribed by the Presidential Decree.

(3) A person intending to conduct a business that is prohibited or restricted pursuant to paragraphs (1) and (2) in a local coexistence zone shall register with the head of a Si/Gun/Gu after consultation with a local coexistence council over prior business coordination and deliberation thereon by a local trading area committee, as prescribed by the Presidential Decree; provided, if a person falling under paragraph (1)4 has completed registration under Article 8 of the Distribution Industry Development Act, it shall be deemed that consultation results from prior business coordination under this Act have already been registered.

Article 32(Specialized support agency) #

(1) The Minister of SMEs and Startups may designate a specialized support agency in order to efficiently support business operations in a revitalization zone. <Amended on Feb. 27, 2024>

(2) A specialized support agency shall perform the following:

1. Providing support in the formulation of a master plan for each region;

2. Providing support in preparations for the designation of a revitalization zone;

3. Providing support in the preparation of a business plan for a revitalization zone;

4. Conducting other support projects related to the designation and operation of revitalization zones.

(3) The Minister of SMEs and Startups may grant a subsidy, within the budget, to help cover the expenses incurred in performing the business affairs listed in paragraph (2).

(4) Where a specialized support agency designated under paragraph (1) falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation; provided, in cases falling under subparagraph 1, the designation shall be revoked: <Added on Feb. 27, 2024>

1. Where it has been designated as a specialized support agency by fraud or other improper means;

2. Where it no longer meets the designation standards under paragraph (7).

(5) Where the Minister of SMEs and Startups intends to revoke the designation of a specialized support agency pursuant to paragraph (4), he or she shall hold a hearing. <Added on Feb. 27, 2024>

(6) A specialized support agency, the designation of which is revoked pursuant to paragraph (4), shall not be re-designated within 2 years from the date of such revocation. <Added on Feb. 27, 2024>

(7) Matters necessary for the designation standards and operation of a specialized support agency, the revocation of designation, etc. shall be prescribed by Presidential Decree. <Added on Feb. 27, 2024>

Article 33(Management of local coexistence council) #

(1) The Minister of SMEs and Startups and the head of a Si/Gun/Gu may, if necessary, request a person representing a local coexistence council to submit data on the operation of the council.

(2) The head of a Si/Gun/Gu shall report the current status of a local coexistence council in the jurisdictional area to the Minister of SMEs and Startups, as prescribed by Decree of the Ministry of SMEs and Startups.

Article 34(Supervision over autonomous trading area association) #

(1) The head of a Si/Gun/Gu may request the heads of relevant institutions, organizations, associations, etc. to submit data on qualifications of members of an autonomous trading area association and others, if deemed necessary for the fair and efficient operation of an autonomous trading zone.

(2) An autonomous trading area association shall undergo an accounting audit as prescribed by Presidential Decree, report the results of such audit to the head of the competent Si/Gun/Gu, and make it available for perusal by its members by posting them on the Internet or by other means.

Article 35(Delegation and entrustment of authority) #

(1) The Minister of SMEs and Startups may delegate part of his or her authority under this Act to a Mayor/Do Governor, as prescribed by Presidential Decree.

(2) The Minister of SMEs and Startups may entrust part of his or her authority under this Act to the Small Enterprise Market Service under Article 17 of the Act on the Protection of and Support for Micro Enterprises, as prescribed by Presidential Decree.

Article 36(Penalty provisions) #

(1) If an executive officer or employee of an autonomous trading area association or a trading area manager causes damage to the autonomous trading area association by committing any of the following acts, he or she shall be punished by imprisonment with labor for up to 5 years or by a fine of up to 50 million won. In such cases, both penalties may be imposed concurrently:

1. Using the fund for any purpose other than the business purposes of the autonomous trading area association;

2. Disposing of or using the property of the autonomous trading area association for speculative purposes.

(2) Any of the following persons shall be punished by imprisonment with labor for up to 1 year or by a fine of up to 10 million won:

1. A person who has filed a report under Articles 14(2) and 17(2) or (3) by fraud or other improper means;

2. A person who has made a report or handover under Article 18(2) by fraud or other improper means;

3. A person who has obtained authorization for an autonomous trading area association under Article 19(1) by fraud or other improper means;

4. A person who has filed for registration or modified registration under Article 24(2) by fraud or other improper means.

5. A person who has filed for registration or modified registration under Article 31(3) by fraud or other improper means.

Article 37(Joint penalty provisions) #

(1) If an executive officer or an employee of an autonomous trading area association or a trading area manager commits an offense prescribed in Article 36(1) in relation to the business affairs of the association, in addition to punishing the offender, the autonomous trading area association shall also be punished by a fine as prescribed in that Article.

(2) If the representative of a corporation, institution or organization (hereinafter referred to as "corporation, etc.") or an agent, employee, or other servants of a corporation, etc. or an individual commits an offense prescribed in Article 36(2) in connection with the business affairs of the corporation, etc. or the individual, not only shall such offender be punished accordingly, but the corporation, etc. or the individual shall also be punished by a fine as prescribed in that Article.

(3) Notwithstanding paragraphs (1) and (2), a fine shall not be imposed if the autonomous trading area association, a corporation, etc. or an individual has not neglected to exercise reasonable care and supervision over the relevant business affairs in order to prevent such offense.

Article 38(Administrative fines) #

(1) Any of the following persons shall be subject to an administrative fine of up to 10 million won:

1. A person who fails to comply with a coexistence agreement under Article 10 without good cause;

2. A person who conducts business without filing a report under Articles 14(2) and 17(2) or (3);

3. A person who fails to make a report or fails to hand over books and documents under Article 18(2);

4. A person who fails to file for registration or modified registration under Article 12(2);

5. A person who conducts business without registration under Article 31(3);

6. A person who refuses to submit to supervision under Article 34 or fails to submit to an audit without good cause.

(2) Administrative fines under paragraph (1) shall be imposed and collected by the head of a Si/Gun/Gu, as prescribed by Presidential Decree.