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ACT ON PRIVATE PARTICIPATION IN INFRASTRUCTURE

ACT ON PRIVATE PARTICIPATION IN INFRASTRUCTURE


INTRODUCTION

Details of Enactment and Amendment

- Enactment: This Act was enacted on August 3, 1994 as the Promotion of Private Capital into Social Overhead Capital Investment Act (Act No. 4773), in order to encourage creative and efficient expansion and operation of the infrastructure by promoting investment of the private sector in the infrastructure.
- Amendment: This Act has arrived at its present form as a result of being amended thirty-two times, including the latest amendment made on August 4, 2005, subsequently to its enactment, and the amendment of December 31, 1998 was a whole amendment of the Act which changed the title of the Act to the Act on Private Participation in Infrastructure and has activated private investment, for example, that of foreign capital, by providing for a positive system of inducement, for example, by raising the profitability of investment in the infrastructure. The title of the Act has been changed to the Act on Private Participation in Infrastructure on January 27, 2005, and the scope of facilities subject to private investments and the methods of conduct of private investment projects have been diversified for the promotion of those projects.


Main Contents

- Competent authorities that are in charge of the affairs concerning the infrastructure projects shall formulate and announce a plan for proposal for private participation in infrastructure projects when investment from the private sector is deemed necessary in order to drive forward the infrastructure projects, and the said plan shall include matters concerning the estimated amount to be invested in any project subject to private investments, the construction period, the prearranged area and scale, the profit of the person operating that project(concessionaire), the assistance rendered by the State or a local government, etc.
- Methods of conducting private investment projects are determined to be: (1) BTO (Build-Transfer-Operate) method whereby the ownership of the infrastructure facilities shall be transferred to the State or a local government upon the completion of construction thereof, and the concessionaire shall have the right to manage and operate those facilities for a specified period of time; (2) BTL (Build-Transfer-Lease) method whereby the ownership of the infrastructure facilities shall be transferred to the State or a local government upon the completion of construction thereof, and the concessionaire shall have the right to manage and operate those facilities for a specified period of time, but the State or local government shall use and profit from them by leasing them for a period of time fixed in the agrement; (3) BOT (Build-Own-Transfer) method whereby the concessionaire have the right to own the infrastructure facilities for a specified period of time after the completion of construction thereof, but the ownership of those facilities shall be transferred to the State or a local government at the expiration of such period; (4) BOO (Build-Own-Operate) method whereby the concessionaire have the right to own the infrastructure facilities upon the completion of construction thereof; (5) a method other than those described in the above (1) through (4) which is deemed appropriate and adopted by the competent authorities and other methods which are proposed in the basic plan for private participation in infrastructure projects by those authorities in case of proposing any project which is not included in projects subject to private investments and which is conducted by methods of private investments by the private sector or doing the modification of the said plan.
- A person who intends to conduct a private investment project shall prepare a project proposal pursuant to the basic plan for private participation in infrastructure projects and submit it to the competent authority, and the competent authority shall designate one of the persons who submitted a proposal as a potential concessionaire after reviewing and evaluating the project proposal. The concessionaire shall be designated by competent authority s entering into a concession agreement with the potential concessionaire which includes the conditions for project implementation such as total project cost and the concession period.
- The concessionaire shall prepare a detailed engineering and design plan for implementation and obtain approval thereof from the competent authority, and if there has been a public announcement of the detailed engineering and design plan for implementation, it shall be considered to have been granted the various authorization and license as prescribed in other Acts, thereby allowing private investment projects to be driven forward without a problem.
- If deemed necessary for the execution of a private investment project, the concessionaire may expropriate or use the land, etc. within the area designated for the project and delegate to the competent authority or the head of the concerned local government with the tasks of land purchase, compensation for loss, resettlement of local residents, etc.
- The Infrastructure Credit Guarantee Fund may be established in order to guarantee the credit of a concessionaire who intends to obtain a loan from a financial institution for a private investment project.
- The investment and finance company regarding infrastructure facilities may be established with the aim of sharing with the shareholders the profit gained from investing assets in the infrastructure facilities, and the investment and finance company regarding infrastructure facilities shall be deemed as an investment company pursuant to the Act on Business of Operating Indirect Investment and Assets.




ACT ON PRIVATE PARTICIPATION IN INFRASTRUCTURE

Amended by Act No. 7676, Aug. 4, 2005



CHAPTER I GENERAL PROVISIONS


Article 1 (Purpose)
The purpose of this Act is to contribute to the development of the national economy by encouraging the creativity and efficiency in infrastructure facilities, through promoting the investment of the private sector in such facilities.

Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1.The term infrastructure facilities means fundamental facilities which are the foundation of production, increase the efficiency of such facilities, accommodate the convenience of the users and the public, and which fall under any of the following items:
(a) Roads and ancillary facilities as prescribed in Articles 2 and 3 of the Road Act;
(b) Railroads as prescribed in subparagraph 1 of Article 2 of the Railroad Enterprise Act;
(c) Urban railroads as prescribed in subparagraph 1 of Article 3 of the Urban Railroad Act;
(d) Harbor and port facilities as prescribed in subparagraph 6 of Article 2 of the Harbor Act;
(e) Airport facilities as prescribed in subparagraph 6 of Article 2 of the Aviation Act;
(f) Multi-purpose dams as prescribed in Article 2 of the Act on Construction of Dams and Assistance, etc. to their Environs;
(g) Waterwork systems as prescribed in subparagraph 5 of Article 3 of the Water Supply and Waterworks Installation Act and intermediate water works as referred to in subparagraph 14 of the same Article;
(h) Sewage systems as prescribed in subparagraph 2 of Article 2 of the Sewerage Act and the sewage terminal disposal facilities as prescribed in subparagraph 5 of Article 2 of the said Act;
(i) Facilities constructed near a river as prescribed in subparagraph 5 of Article 2 of the River Act;
(j) Fishery harbor facilities as prescribed in subparagraph 5 of Article 2 of the Fishing Villages and Fishery Harbors Act;
(k) Waste disposal facilities as prescribed in subparagraph 7 of Article 2 of the Wastes Control Act;
(l) Telecommunication facilities as prescribed in subparagraph 2 of Article 2 of the Framework Act on Telecommunications;
(m) Electric source facilities as prescribed in subparagraph 1 of Article 2 of the Electric Source Development Promotion Act;
(n) Gas supply facilities as prescribed in subparagraph 5 of Article 2 of the Urban Gas Business Act;
(o) Integrated energy facilities as prescribed in subparagraph 5 of Article 2 of the Integrated Energy Supply Act;
(p) Information and communications network as prescribed in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
(q) Distribution complexes as prescribed in subparagraph 1 of Article 2 of the Promotion of Distribution Complex Development Act;
(r) Cargo terminals and warehouses of logistics facilities as prescribed in subparagraph 5 of Article 2 of the Goods Distribution Promotion Act;
(s) Passenger terminals as prescribed in subparagraph 5 of Article 2 of the Passenger Transport Service Act;
(t) Deleted;
(u) Tourist resorts and resort complexes as prescribed in subparagraphs 6 and 7 of Article 2 of the Tourism Promotion Act;
(v) Off-road parking lots as prescribed in subparagraph 1 (b) of Article 2 of the Parking Lot Act;
(w) Urban parks as prescribed in subparagraph 1 of Article 2 of the Urban Park Act;
(x) Wastewater terminal treatment facilities as prescribed in Article 25 (1) of the Water Quality Conservation Act;
(x) Wastewater terminal treatment facilities as prescribed in Article 48 (1) of the Water Quality Conservation Act;
(y) Wastewater treatment facilities as prescribed in subparagraph 5 of Article 2 of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater and excreta treatment facilities as prescribed in subparagraph 9 of the same Article, and public treatment facilities of livestock wastewater as prescribed in subparagraph 10 of the same Article;
(z) Recycling facilities as prescribed in subparagraph 7 of Article 2 of the Act on the Promotion of Saving and Recycling of Resources;
(za) Public sports facilities as prescribed in Article 6 of the Installation and Utilization of Sports Facilities Act;
(zb) Youth training facilities as prescribed in subparagraph 5 of Article 3 of the Framework Act on Juveniles;
(zc) Libraries as prescribed in subparagraph 1 of Article 2 of the Libraries and Reading Promotion Act;
(zd) Museums and art galleries as prescribed in subparagraphs 1 and 2 of Article 2 of the Museum and Art Gallery Support Act;
(ze) International conference facilities as prescribed in subparagraph 3 of Article 2 of the International Conference Industry Promotion Act;
(zf) Intelligent transport system as prescribed in subparagraph 7 of Article 2 of the Traffic System Efficiency Act;
(zg) Geographic information system as prescribed in subparagraph 2 of Article 2 of the Act on the Building and Utilization, etc. of National Geographic Information System;
(zh) Super-high speed information and communication networks as prescribed in subparagraph 5 of Article 2 of the Framework Act on Informatization Promotion;
(zi) Science museums as prescribed in subparagraph 1 of Article 2 of the Science Museum Support Act; and
(zj) Railroad facilities as prescribed in subparagraph 2 of Article 3 of the Framework Act on the Development of Railroad Industry;
(zk) Schools as referred to in Article 2 of the Elementary and Secondary Education Act and in subparagraph 1 through 5 of Article 2 of the Higher Education Act;
(zl) Residential installations for servicemen or their children and installations annexed thereto, such as official residences to be built inside or outside of military camps, from among the military installations as referred to in Article 2 of the Protection of Military Installations Act;
(zm) Public rental housing, from among the constructed rental housing as referred to in Article 2 of the Rental Housing Act;
(zn) Nursing facilities as referred to in Article 2 of the Infant Care Act;
(zo) Residential care facilities for the aged, and medical care facilities for the aged and facilities for home care for the aged as referred to in Article 32, 34 and 38 of the Welfare of the Aged Act;
(zp) Public health and medical facilities as referred to in Article 2 of the Public Health and Medical Services Act;
(zq) Facilities subject to a new harbor construction project as referred to in subparagraph 2 (b) and (c) of Article 2 of the New Harbor Construction Promotion Act;
(zr) Cultural facilities as referred to in subparagraph 3 of Article 2 of the Culture and Arts Promotion Act;
(zs) Natural and recreational forest as referred to in Article 13 of the Forest Culture and Recreation Act; and
(zt) Arboretums as referred to in subparagraph 1 of Article 2 of the Creation and Furtherance of Arboretums Act;
2.The term infrastructure facilities project means projects involving work such as construction, expansion, renovation or operation of infrastructure facilities;
3.The term revertible facilities means infrastructure facilities which are managed in the methods as prescribed in subparagraph 1 through 3 of Article 4;
4.The term competent authority means the head of the administrative agency in charge of the affairs concerning infrastructure facilities projects pursuant to the related Acts and subordinate statutes;
5.The term private investment project means any project conducted through the proposal of private sector as prescribed in Article 9, or any infrastructure facilities project conducted by the concessionaire as prescribed in subparagraph 7, in accordance with the instruction for proposal for private participation in infrastructure projects as prescribed in Article 10;
6.The term concession agreement means the contract between the competent authority and a potential concessionaire to conduct the private investment project concerning the conditions for the implementation as prescribed in this Act;
7.The term concessionaire means corporations other than those in the public sector which are designated as concessionaires under this Act, and which conduct private investment projects;
8.The term supplementary project means any project falling under any subparagraph of Article 21 (1) which is conducted together with the private investment project by a concessionaire;
9.The term user fee means the payment for the use of infrastructure facilities by users to the concessionaire of concerned facilities, including all forms of charges, fares, and fees;
10.The term public sector means the State, local governments and the following corporations:
(a)Government-invested institutions to which the Framework Act on the Management of Government-Invested Institutions is applied; and
(b)Various corporations established pursuant to the special Acts;
11.The term private sector means corporations (including foreign corporations, and public and private joint corporations established pursuant to subparagraph 12) other than those in the public sector;
12.The term public and private joint corporation means a corporation established by joint investment of the public and private sectors, which is the concessionaire as referred to in subparagraph 7;
13.The term related Acts means the following Acts, which apply to private investment projects in connection with the implementation of infrastructure facilities projects:
(a) The Road Act;
(b) The Toll Road Act;
(c) The Railroad Enterprise Act;
(d) The Railroad Construction Act;
(e) The Urban Railroad Act;
(f) The Harbor Act;
(g) The Aviation Act;
(h) The Act on the Promotion of a New Airport for Seoul Metropolitan Area Construction;
(i) The Act on Construction of Dams and Assistance, etc. to their Environs;
(j) The Water Supply and Waterworks Installation Act;
(k) The Sewerage Act;
(l) The River Act;
(m) The Fishing Villages and Fishery Harbors Act;
(n) The Wastes Control Act;
(o) The Framework Act on Telecommunications;
(p) The Telecommunications Business Act;
(q) The Radio Waves Act;
(r) The Electric Source Development Promotion Act;
(s) The Urban Gas Business Act;
(t) The Integrated Energy Supply Act;
(u) The Act on Promotion of Information and Communications Network Utilization and Information Protection, etc.;
(v) The Promotion of Distribution Complex Development Act;
(w) The Goods Distribution Promotion Act;
(x) The Passenger Transport Service Act;
(y) The Tourism Promotion Act;
(z) The Parking Lot Act;
(za) The Urban Park Act;
(zb) The Water Quality Conservation Act;
(zc) The Act on the Disposal of Sewage, Excreta and Livestock Wastewater;
(zd) The Act on the Promotion of Saving and Recycling of Resources;
(ze) The Installation and Utilization of Sports Facilities Act;
(zf) The Framework Act on Juveniles;
(zg) The Libraries and Reading Promotion Act;
(zh) The Museum and Art Gallery Support Act;
(zi) The High-Speed Railroad Construction Promotion Act;
(zj) Deleted;
(zk) The International Conference Industry Promotion Act;
(zl) The Traffic System Efficiency Act;
(zm) The Act on the Building and Utilization, etc. of National Geographic Information System;
(zn) The Framework Act on Informatization Promotion; and
(zo) The Science Museum Support Act;
(zp) The Elementary and Secondary Education Act;
(zq) The Higher Education Act;
(zr) The School Facilities Projects Promotion Act;
(zs) The Rental Housing Act;
(zt) The Infant Care Act;
(zu) The Welfare of the Aged Act;
(zv) The Public Health and Medical Services Act;
(zw) The Housing Act;
(zx) The Act on National Defense and Military Installations Projects;
(zy) The National Land Planning and Utilization Act;
(zz) The Forestry Act; and
(aa) The Creation and Furtherance of Arboretums Act;
14.The term other Acts means Acts providing for matters such as authorization and permission which are considered to have been granted pursuant to the provisions of the related Acts, and which a concessionaire needs in order to implement private investment projects;
15.The term national or public property means any property owned by the State or a local government under the State Property Act or the Local Finance Act; and
16.The term financial institutions means one of the following:
(a) Financial institutions established with permission as prescribed by the Banking Act;
(b) Korea Development Bank;
(c) Export-Import Bank of Korea;
(d) Deleted;
(e) Industrial Bank of Korea;
(f) Trust companies as prescribed by the Trust Business Act;
(g) Insurers as prescribed by the Insurance Business Act;
(h) Merchant banks as prescribed by the Merchant Banks Act;
(i) Credit business sector run by the National Federation of Agricultural Cooperatives as prescribed by the Agricultural Cooperatives Act;
(j) Credit business sector run by the National Federation of Fisheries Cooperatives as prescribed by the Fisheries Cooperatives Act; and
(k) Persons engaged in industrial financing, as determined by the Presidential Decree.

Article 3 (Relation to Related Acts)
This Act shall precede other Acts related with private investment projects.

Article 4 (Method of Conducting Private Investment Project)
Private investment projects shall be conducted in one of the following methods:
1.The mode (excluding the case corresponding to subparagraph 2) by which the ownership of the infrastructures shall be transferred to the State or a local government upon the completion of construction, and the concessionaire shall have the right to operate the infrastructure facilities for a specified period of time;
2.The mode by which the ownership of the infrastructures shall be transferred to the State or a local government upon the completion of construction, and the concessionaire shall have the right to operate the infrastructure facilities for a specified period of time, but the State or a local government, etc. shall rent them for a specified period as provided in the agreement, and use them and make profits;
3.The mode by which the concessionaire shall assume ownership of the infrastructure facilities for a specified period of time after the completion of construction, and the ownership shall be transferred to the State or a local government upon the termination of the concession period;
4.The mode by which the concessionaire shall assume ownership of the infrastructure facilities upon the completion of construction;
5.Other than the modes as described in subparagraphs 1 through 4, a method presented by the private sector in proposing a private investment project under Article 9 or a modification of the instruction for proposal under Article 12 and adopted by the competent authority as it deems reasonable; and
6.Other modes in the instruction for proposal for private participation in infrastructure projects proposed by the competent authority under Article 10.

Article 5 (Establishment of Private Investment Project Committee)
In order to deliberate the following matters concerning private investment projects, the Private Investment Project Committee (hereinafter referred to as the Committee ) shall be established under the jurisdiction of the Ministry of Planning and Budget:
1.Matters concerning the formulation of major policies concerning private sector investment in infrastructure facilities;
2.Matters concerning the establishment and modification of the basic plan for private participation in infrastructure as prescribed in Article 7;
2-2.Matters concerning the designation of a solicited private investment project as prescribed in Article 8-2;
3.Matters concerning the establishment and modification of the basic plan for private participation in infrastructure which meet the requirements as prescribed by the Presidential Decree;
4.Matters concerning the designation of a concessionaire as prescribed in Article 13;
4-2.Matters concerning the disposition for public interests as referred to in the provisions of the latter part of Article 47 (1);
5.Matters concerning the cancellation of designation of solicited projects as prescribed in Article 50; and
6.Other matters which the Minister of Planning and Budget proposes during a conference for the promotion of active private participation in infrastructure projects.

Article 6 (Composition and Operation of Committee)
(1)The Committee members shall be composed of the Minister of Planning and Budget, the vice ministers of administrative ministries in charge of the affairs concerning infrastructure facilities, and eight or fewer members from the private sector with knowledge and experience in private investment commissioned by the Minister of Planning and Budget.
(2)The Minister of Planning and Budget shall be the chairman of the Committee (hereinafter referred to as the chairman of the Committee ).
(3)If it is deemed that professional or technical advice is necessary for efficiency in the operation of the Committee, the chairman may establish and operate a Private Investment Project Advisory Committee composed of experts in the related fields.
(4)If it is deemed necessary for facilitating private investment projects, the head of the competent authority may establish and operate autonomously a deliberation committee of each competent authority in order to deliberate matters concerning private investment projects.
(5)Matters necessary for the operation, procedures, and other comparable matters of the Committee and the deliberation committees of competent authorities shall be determined by the Presidential Decree.



CHAPTER II INFRASTRUCTURE FACILITIES PROJECTS


SECTION 1 BasicPlanforPrivateParticipationin Infrastructure


Article 7 (Formulation of Basic Plan for Private Participation in Infrastructure)
(1)The Government shall formulate and announce (including the case where announcement is made through the Internet) a basic plan for private participation in infrastructure (hereinafter referred to as the basic plan ) to accommodate greater public convenience, raise the competitiveness of Korean industry, and encourage a balanced development of the national territory. The same shall apply to any modification of the publicly announced basic plan.
(2)The Government shall formulate the basic plan as prescribed in paragraph (1) with due consideration for national investment priorities and mid- to long-term plans for infrastructure facilities. The plan shall be conducive to the creativity and efficiency of the private sector while ensuring the function of infrastructure facilities in serving the public interest.
(3)Matters necessary for the formulation and modification of the basic plan and the procedures for its confirmation shall be determined by the Presidential Decree.

Article 7-2 (Introduction of Maximum Amount of Private Investment Projects, etc. to National Assembly)
The Government shall introduce the total maximum amount of private investment projects to be executed in the next year as referred to in the provisions of subparagraph 2 of Article 4 and the maximum amount by objective projects together with the budget bill when the budget bill for the next fiscal year is submitted to the National Assembly, and where it alters the total maximum amount and the maximum amount by objective projects during the next year, it shall file a report thereon to the National Assembly.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 8 (Contents of Basic Plan for Private Participation in Infrastructure)
(1)The basic plan for private participation in infrastructure as prescribed in Article 7 (1) shall include the following:
1.Matters concerning policy orientation for each category of infrastructure facilities
2.Deleted;
3.Matters concerning the scope of investment, method, and requirements of each private investment project or each solicited private investment project under Article 8-2;
4.Matters concerning the management and operation of private investment projects;
5.Matters concerning support for private investment projects; and
6.Other matters concerning policies regarding private investment projects.
(2)Deleted.

Article 8-2 (Designation of Solicited Private Investment Project)
(1)Where the competent authority intends to implement an infrastructure facilities project by means of private investment, it shall designate the project as a solicited private investment project (hereinafter referred to as the solicited project ) on condition that the project meets the following requirements:
1.The project shall be in accord with mid- to long-term plans for infrastructure facilities and national investment priorities; and
2.The project shall have such profitability as to stimulate private participation.
(2) With respect to infrastructure projects of the specified scale as determined by the Presidential Decree or larger, the competent authority shall designate them as solicited projects after the analysis of their feasibility and the deliberation of the Committee thereon.
(3) In the case of designation of a solicited project, the competent authority shall forthwith publish (including the case where publication is made through the Internet) the fact of such designation in the Official Gazette.
[This Article Newly Inserted by Act No. 6776, Dec. 11, 2002]

Article 9 (Unsolicited Project Proposal by Private Sector)
(1)The private sector may propose a private investment project, not included in the solicited project list, to be implemented as an unsolicited project (excluding the project mode under subparagraph 2 of Article 4).
(2)Matters concerning the procedural details of projects proposed under paragraph (1) shall be determined by the Presidential Decree.


SECTION 2 ImplementationofInfrastructure Facilities Projects


Article 10 (Formulation and Announcement of Instruction for Proposal)
(1)The competent authority, shall when it is deemed necessary to secure the investment from the private sector in order to proceed infrastructure facilities projects, formulate an instruction for proposal for private participation in infrastructure facilities projects in accordance with the basic plan for solicited projects (hereinafter referred to as the instruction for proposal ), within one year after its designation as a solicited project: Provided, That if deemed inevitable, the period may be extended within the scope of one year.
(2)The instruction for proposal formulated under paragraph (1) which meets the requirements specified in the Presidential Decree shall undergo prior deliberation by the Committee. The same shall apply where a modification is required: Provided, That the same shall not apply where there are insignificant modifications as determined by the Presidential Decree.
(3)Where the competent authority formulates or modifies the instruction for proposal under paragraphs (1) and (2), it shall make a public announcement thereof under the conditions as prescribed by the Presidential Decree.
(4)Where the project proposal under Article 13 (1) is not submitted after the instruction for proposal has been publicly announced as prescribed in paragraph (3), the competent authority may reannounce the concerned instruction for proposal only once more. In this case, the instruction for proposal shall be reannounced within six months starting from the last permissible date for submission of project proposal pursuant to the instruction for proposal as outlined in the initial announcement.
(5) Where the competent authority announces or re-announces the instruction for proposal for such solicited projects as prescribed by the Presidential Decree in accordance with paragraph (3) or (4), it shall make their basic design drawings and the data on the analysis of their feasibility accessible to the private sector.

Article 11 (Contents of Instruction for Proposal)
(1)The instruction for proposal shall include each of the following:
1.Matters concerning the estimated investment amount of solicited projects, and matters concerning construction such as the duration, location, and scale thereof;
2.Matters concerning the proceeds of the concessionaire such as the user fee, and supplementary projects;
3.Matters concerning the method involved in a private investment project including the designation or non-designation of a facility as a revertible facility;
4.Matters concerning State or local government subsidies such as the amount and the method thereof;
5.Matters concerning the management and operation of the infrastructure facilities which were constructed through a private investment project;
6.Matters concerning the eligibility of the concessionaire; and
7.Other matters which the competent authority deems necessary.
(2)In formulating the instruction for proposal, the competent authority shall give consideration to small and medium businesses so that they may actively participate in private investment projects.

Article 12 (Proposal for Modification of Instruction for Proposal by Private Sector)
The private sector may propose a modification of the instruction for proposal formulated under Article 10 under the conditions as prescribed by the Presidential Decree.

Article 13 (Designation of Concessionaire)
(1)A person who intends to conduct a private investment project shall prepare a project proposal as specified by the Presidential Decree, pursuant to the instruction for proposal publicly announced under Article 10 (3), and submit it to the competent authority.
(2)The competent authority shall designate one of the proposers as a potential concessionaire after reviewing and evaluating the project proposal under the conditions as prescribed by the Presidential Decree which was submitted under paragraph (1). In this case, the persons having submitted the project proposals satisfying a smooth project implementation of the competent authority, such as offering the long-term investment fund of higher public interests, may be treated favorably when making evaluation of project proposals.
(3)The competent authority shall designate the concessionaire by making a concession agreement with the potential concessionaire designated under paragraph (2), including the conditions for project implementation such as total project cost (referring to the amount adding up the cost as prescribed by the Presidential Decree, which is the cost necessary for the infrastructure facilities) and the concession period. Matters regarding the designation of a concessionaire who meets the requirements determined by the Presidential Decree, shall undergo a prior deliberation by the Committee.
(4)A person designated as a concessionaire as prescribed in paragraph (3) shall be deemed a concessionaire under the related Acts.
(5)A person designated as a concessionaire shall apply for approval of a detailed engineering and design plan for implementation as prescribed in Article 15 (1) within the period specified by the Presidential Decree from the date of its designation, and if the concessionaire fails to apply within the given period, the designation of concessionaire shall become ineffective: Provided, That when deemed inevitable, the competent authority may grant an extension of the period within the scope of one year.

Article 14 (Establishment of Private Investment Project Corporation)
(1)A person who intends to conduct a private investment project by establishing a corporation shall include a corporate establishment plan when submitting the corporate establishment plan as prescribed in Article 13 (1).
(2)When the competent authority intends to designate a person who submitted the project proposal as prescribed in paragraph (1) as a concessionaire, the designation shall be made under the condition that the corporation shall be established.
(3)The person who has been granted the conditional designation pursuant to paragraph (2) shall establish the corporation which will conduct the private investment project before applying for approval of the detailed engineering and design plan for implementation as prescribed in Article 13 (5).
(4)The corporation established pursuant to paragraph (3) shall not engage in businesses other than those acknowledged by the competent authority at the time of designation of the concessionaire: Provided, That the same shall not apply to businesses deemed insignificant by the competent authority after the concessionaire has been designated.

Article 15 (Approval of Detailed Engineering and Design Plan for Implementation)
(1)The concessionaire shall prepare a detailed engineering and design plan for implementation and obtain the approval thereof from the competent authority as prescribed by the Presidential Decree before implementing the project concerned. The same shall apply when the concessionaire intends to modify the contents of the approved plan: Provided, That the same shall not apply to insignificant changes as determined by the Presidential Decree.
(2)The competent authority shall make a public announcement of its approval upon authorizing the implementation or modification of the detailed engineering and design plan pursuant to paragraph (1).

Article 16 (Divisional Implementation of Private Investment Projects)
(1)The competent authority may have the private sector conduct infrastructure facilities projects in parts.
(2)The competent authority may allow private investment projects to be conducted in parts according to the different functions, facilities, or sections.

Article 17 (Authorization and Permission under Other Acts)
(1)If the competent authority has made public announcement of a detailed engineering and design plan for implementation as provided in Article 15, it shall be considered that the authorization and permission, etc. prescribed in the related Acts concerning the relevant private investment, and the authorization and permission, etc. under other Acts which are deemed to have been obtained pursuant to related Acts, are regarded to have been obtained, and there exists the public notice or public announcement pursuant to the related Acts and other Acts.
(2)The competent authority shall consult the head of the related administrative agency under the provisions of the related Acts concerning the compatibility with other Acts as prescribed in paragraph (1) when it intends to grant approval for implementation or modification of the detailed engineering and design plan for implementation pursuant to Article 15 (1).
(3)The head of the related administrative agency to whom the request for consultation pursuant to paragraph (2) is made, shall present his opinion in writing, stating the reason and grounds therefor within thirty days from the date when the request for consultation is received. If the opinion is not presented within the given period, it shall be deemed that the consultation has been conducted.

Article 18 (Access to Land)
Where a concessionaire intends to enter or temporarily utilize another person s land, or alter or remove any obstacle therein in order to implement a private investment project, the provisions of Articles 130 and 131 of the National Land Planning and Utilization Act shall apply mutatis mutandis.

Article 19 (Restriction on Disposal of National or Public Property)
(1)A concessionaire shall make a prior consultation with the head of the related administrative agency about the use of land belonging to the State or a local government located in an area designated for a private investment project and is needed for the implementation of private investment project, and such land shall not be sold for any other purpose than the project concerned after the date of the public announcement (in the case of the project proposed pursuant to Article 9 (1), it refers to the date of public notice of the detail of proposal) of the instruction for proposal.
(2)Notwithstanding the provisions of the State Properties Act and the Local Finance Act, any national or public property located in an area designated for a private investment project for which the consultation as referred to in paragraph (1) has been made may be sold to the concessionaire through conclusion of a private contract.
(3)Notwithstanding the provisions of the State Properties Act and the Local Finance Act, the concessionaire may use free of charge and benefit from any national or public property located in the area designated for a private investment project, if it is necessary for the implementation of such project, from the date of public announcement of the detailed engineering and design plan for implementation pursuant to Article 15 (2) until the date of confirmation of construction completion pursuant to Article 22: Provided, That in the case of construction projects of revertible facilities, the concessionaire may use free of charge and benefit from such national or public property until the date of expiration of a certain period fixed under Article 25 (1) or (2).
(4)Notwithstanding the provisions of the State Properties Act or the Local Finance Act, where the competent authority deems it necessary for the execution of the private investment project, the competent authority may purchase land located in the designated area and let the concessionaire use the land free of charge and benefit from it from the date of the public announcement of the detailed engineering and design plan for implementation pursuant to Article 15 until the date of confirmation of the completion thereof pursuant to Article 22: Provided, That in the case of construction projects of revertible facilities, the authority may let the concessionaire use such land free of charge and benefit from it until the date of expiration of a certain period fixed under Article 25 (1) or (2).
(5)Notwithstanding the provisions of the State Properties Act and the Local Finance Act, if it is necessary for the execution of a private investment project, a concessionaire may be permitted to use or benefit from national or public property to construct buildings or other permanent facilities, without the precondition that the concessionaire shall contribute such facilities to the State or local governments.

Article 20 (Expropriation or Use of Land)
(1)If deemed necessary for the execution of a private investment project, the concessionaire may expropriate or use the land, things, or rights as prescribed in Article 3 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor (hereinafter referred to as the land, etc. ).
(2)In the application of the provisions of paragraph (1), if the detailed engineering and design plan for implementation is publicly announced as prescribed in Article 15, the authorization of the project and the public announcement of such authorization pursuant to Articles 20 (1) and 22 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor shall be considered to be granted, and the request for the rulings may be made within the implementation period of the project as determined by the detailed engineering and design plan for implementation, notwithstanding the provisions of Articles 23 (1) and 28 (1) of the said Act.
(3)The concessionaire may entrust the competent authority or the head of the concerned local government with the tasks of land purchase, compensation for loss, resettlement of local residents, and other comparable matters concerning the expropriation and use of land under the conditions as prescribed by the Presidential Decree. In this case, the amount of consideration for the entrustment shall be determined by the Presidential Decree.
(4)Except as otherwise provided by this Act or the related Acts, the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor shall apply mutatis mutandis to the expropriation or use of land and other matters as referred to in paragraph (1).

Article 21 (Implementation of Supplementary Project)
(1)If deemed necessary for concessionaire implementing private investment projects to secure the investment cost, or to administer a normal operation of the infrastructure facilities concerned, the competent authority may have the concessionaire implement any of the following supplementary projects jointly with the private investment project concerned under the conditions outlined in the instruction for proposal:
1.Housing construction projects as prescribed by the Housing Act;
2.Housing site development projects as prescribed by the Housing Site Development Promotion Act;
3.Urban planning facility projects as prescribed by the National Land Planning and Utilization Act;
3-2.Urban development projects as prescribed by the Urban Development Act;
4.Urban environment improvement projects as prescribed by the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for the Residents;
5.Industrial complex development projects as prescribed by the Industrial Sites and Development Act;
6.Tourist accommodation business, tourist entertainment facility business, and business for the development of tourist resorts and resort complexes as prescribed by the Tourism Promotion Act;
7.Freight terminal business as prescribed by the Goods Distribution Promotion Act;
8.Port transport business as prescribed by the Harbor Transport Business Act;
9.Superstore (excluding market places), wholesale delivery business, or joint collection and delivery complex business as prescribed by the Distribution Industry Development Act;
10.Compound complex development projects as prescribed by the Balanced Regional Development and Support for Local Small and Medium Enterprises Act.; and
11.Profit-making projects capable of contributing to a normal utilization and a display of functions of the relevant infrastructure facilities, such as the neighboring living facilities and the cultural assembly facilities, etc., and of reducing the financial support of the State or local governments, in the case of the private investment project as referred to in subparagraph 2 of Article 4.
(2)When a concessionaire intends to implement a supplementary project, he shall include in his detailed engineering and design plan for implementation as prescribed in Article 15 (1) matters concerning the supplementary project concerned.
(3)When the competent authority has publicly announced the detailed engineering and design plan for implementation pursuant to Article 15 (2), it shall be deemed that the authorization and permission, etc. concerning the supplementary project falling under any of the following subparagraphs have been granted:
1.Registration as prescribed in Article 9 of the Housing Act, approval as prescribed in Article 16 (1) of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 17 of the said Act;
2.Designation of a concessionaire of the housing site development project as prescribed in Article 7 of the Housing Site Development Promotion Act, approval as prescribed in Articles 8 and 9 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 11 of the said Act;
3.Designation of a concessionaire as prescribed in Article 86 of the National Land Planning and Utilization Act, authorization of a detailed engineering and design for implementation as prescribed in Article 88 (2) of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 92 (1) of the said Act;
3-2.Designation of a concessionaire as prescribed in Article 11 of the Urban Development Act, authorization of a detailed engineering and design for implementation as prescribed in Article 17 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 19 (1) of the said Act;
4.Designation of a designated developer as prescribed in Article 9 (1) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for the Residents and authorization of the implementation of project as prescribed in Article 28 of the said Act;
5.Designation of a concessionaire as prescribed in Article 16 of the Industrial Sites and Development Act, approval as prescribed in Articles 17 through 19 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 21 of the said Act;
6.Approval for a project proposal for tourist accommodation business and tourist entertainment facility business as prescribed in Article 14 of the Tourism Promotion Act, designation of the tourist resort and resort complex as prescribed in Article 50 of the said Act, approval of the formation plan as prescribed in Article 52 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 55 of the said Act;
7.Registration as prescribed in Article 24 of the Goods Distribution Promotion Act, authorization for construction as prescribed in Article 28 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 37 of the said Act;
8.Registration as prescribed in Article 4 of the Harbor Transport Business Act;
9.Registration as prescribed in Article 8 of the Distribution Industry Development Act, designation as prescribed in Article 19 of the said Act, designation as prescribed in Article 33 of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 34 of the said Act; and
10.Designation of a concessionaire as prescribed in Article 34 of the Balanced Regional Development and Support for Local Small and Medium Enterprises Act, approval of the detailed engineering and design for implementation as prescribed in Article 36 (1) of the said Act, and authorization and permission, etc. considered to have been granted as prescribed in Article 36 (2) of the said Act.
(4)When a competent authority intends to give approval of a detailed engineering and design plan for implementation under Article 15, which includes the matters referred to in the subparagraphs of paragraph (3), it shall consult the head of the concerned administrative agency (where, under each of the subparagraphs of paragraph (3), matters such as authorization and permission are considered to have been granted, if the provisions stipulate that matters such as authorization and permission require consultation with the heads of other related administrative agencies, the heads of the concerned administrative agencies shall be included) or receive approval from him in advance.
(5)The head of the concerned administrative agency who has been requested to carry out the consultation or give the approval as prescribed in paragraph (4) shall present his opinion in writing, within 30 days after the request was made, stating in detail the reason and the grounds for his opinion. If the opinion is not presented within the said period, it shall be deemed that the consultation has been conducted or that the approval has been granted.
(6)Matters concerning the implementation of a supplementary project by a concessionaire which are not provided for in this Act shall be subject to the provisions of the Acts related to such supplementary project.
(7)A concessionaire conducting a housing site development project as a supplementary project as prescribed in paragraph (1) 2 shall be deemed as the State or a local government as prescribed in Article 7 of the Housing Site Development Promotion Act.
(8)The requirements for implementing supplementary projects as prescribed in paragraph (1) shall be as follows:
1.The cost required for the supplementary project shall be within the scope of the total private project cost (it refers to the amount obtained by excluding the subsidy granted by the State or local governments to the concessionaire pursuant to Article 53 from the total project cost);
2.The supplementary project shall be related to a smooth operation of the relevant private investment project and to the improvement of users convenience, and be implemented in the vicinity of the original project site; and
3.Other conditions determined by the Presidential Decree.

Article 22 (Confirmation of Construction Completion)
(1)Where the concessionaire has completed the project pursuant to the detailed engineering and design plan for implementation which has been publicly announced as prescribed in Article 15 (2) or 21 (2), he shall file without delay the report on construction completion with the competent authority, and obtain the confirmation of the completion under the conditions as prescribed by the Presidential Decree.
(2)After receiving the application for the confirmation of construction completion as prescribed in paragraph (1), the competent authority shall verify the completion and deliver the certificate of construction confirmation to the applicant.
(3)When the certificate of construction confirmation under paragraph (2) is delivered, the inspection or authorization of the construction completion of the concerned project attendant on authorization and permission, etc. as prescribed in Articles 17 (1) and 21 (3), shall be considered to have been conducted or granted.
(4)If the competent authority gives the confirmation of construction completion under paragraph (2), or it is considered that the inspection or authorization on completion is conducted or granted as prescribed in paragraph (3), the competent authority shall consult in advance with the head of the related administrative agency.
(5)Land and infrastructure facilities created by a private investment project shall not be used before the delivery of the certificate of confirmation of the construction completion as prescribed in paragraph (2): Provided, That the same shall not apply to the case where the competent authority has granted the authorization for the use thereof before the completion of the construction.

Article 23 (Establishment of Public Investment Management Center for Infrastructure Facilities)
(1)In order to comprehensively conduct support affairs as prescribed by the Presidential Decree, such as the review of solicited projects, analysis of project pertinence, and evaluation of the project plan, etc. the public investment management center for infrastructure facilities to be annexed to the Korea Development Institute established under the Act on the Establishment, Operation and Fosterage of Government-Invested Research Institutions (hereinafter referred to as the public investment management center).
(2)Where deemed necessary for performing the affairs as referred to in paragraph (1), the head of the public investment management center may request the related administrative institute or the similar institute to render cooperation.
(3)Where deemed necessary for appropriating the expenses necessary for the affairs as referred to in paragraph (1), the head of public investment management center may receive the fees from the related institution or organization benefitted by the said affairs.
(4)Matters necessary for the organization and operation of the public investment management center shall be prescribed by the Presidential Decree.
[This Article Wholly Amended by Act No. 7386, Jan. 27, 2005]


SECTION 3 ManagementandOperationof Infrastructure Facilities


Article 24 (Management and Operation of Infrastructure Facilities)
Land or infrastructure facilities created by a private investment project shall be managed and operated in accordance with the provisions of the concession agreement.

Article 25 (Use of Facilities)
(1)When the construction of infrastructure facilities is completed by the mode referred to in the provisions of subparagraph 1 or 2 of Article 4, a concessionaire shall be permitted to use the infrastructure facilities free of charge and to benefit from them for a certain period after the construction completion within the scope of the total private project cost determined through the open competition process stated in the concession agreement.
(2)When the construction of infrastructure facilities is completed by the mode referred to in the provisions of subparagraph 3 of Article 4, a concessionaire shall be permitted to own the infrastructure facilities and to benefit from them for a certain period after the construction completion within the scope of the total private project cost determined through the open competition process stated in the concession agreement.
(3)Matters for the computation of the gratuitous use period and the period of ownership or profit-making or the alteration of total project cost as referred to in paragraphs (1) and (2) shall be determined by the Presidential Decree.
(4)In order to enjoy the benefits under paragraphs (1) and (2), the concessionaire may permit other entities to use the facilities concerned and collect a user fee, such as the passage fee or rental, etc. In this case, details of the user fee, the period of collection of the user fee and other charges shall be determined by the Presidential Decree.
(5)Notwithstanding the provisions of paragraphs (1) and (2), if the concessionaire completes the construction before the due construction period or saves construction costs as stated in the concession agreement, the period of use or the charges thereof need not be adjusted.

Article 26 (Rights to Manage and Operate Infrastructure Facilities)
(1)Where a concessionaire who has implemented an infrastructure facilities project by the mode referred to in subparagraph 1 or 2 of Article 4 has confirmed the completion of the construction as prescribed in Article 22, the competent authority may grant the concessionaire the rights to manage and operate the infrastructure facilities and to collect the user fee (hereinafter referred to as management and operation rights ) for a certain period for gratuitous use and benefit as prescribed in Article 25 (1).
(2)If a concessionaire has been granted the management and operation rights as prescribed in paragraph (1), he shall register the matter at the competent authority, under the conditions as prescribed by the Presidential Decree.
(3)A concessionaire who has made the registration of management and operation rights pursuant to paragraphs (1) and (2) shall be responsible for the proper maintenance and management of the facilities concerned.
(4)Details necessary for the maintenance and management as referred to in paragraph (3) shall be determined by the Presidential Decree.

Article 27 (Nature of Management and Operation Right)
(1)Except as otherwise provided by this Act, management and operation rights shall be considered as property rights, and the provisions of the Civil Act concerning real estate shall be applicable mutatis mutandis.
(2)A concessionaire shall receive approval in advance from the competent authority before sharing, consolidating, or making a disposition of its management and operation rights.

Article 28 (Change of Rights)
(1)Any settlement, change, extinction, and restriction on disposal of the management and operation rights or a mortgage for the purpose of obtaining such rights, shall take effect only by registering it in the registry of management and operation right which is kept by the competent authority.
(2)Matters necessary for the registration of management and operation rights pursuant to paragraph (1) shall be determined by the Presidential Decree.

Article 29 (Change of Contents of Use)
(1)The competent authority shall not change the contents of use prescribed in Article 25 (1) and (2): Provided, That where the State or local governments require it for any direct official or public use, and such use as prescribed by the Presidential Decree, the competent authority may change the contents of use of the infrastructure facility concerned after consulting with the concessionaire.
(2)If the concessionaire incurs any loss due to the change in the contents of use as referred to in the proviso of paragraph (1), the administrative agency which has used the infrastructure shall compensate him under the conditions as prescribed by the Presidential Decree.


SECTION 4 Infrastructure Credit Guarantee Fund


Article 30 (Establishment and Management of Infrastructure Credit Guarantee Fund)
(1)The Infrastructure Credit Guarantee Fund (hereinafter referred to as the Fund ) may be established in order to guarantee the credit of a concessionaire who intends to obtain a loan from a financial institution for a private investment project.
(2)The Fund shall be managed and operated by the Credit Guarantee Fund (hereinafter referred to as the management institution ) pursuant to the Credit Guarantee Fund Act.

Article 31 (Foundation of Fund)
(1)The Fund shall be financed in the following ways:
1.Investment from the Government and local governments;
2.Investment from entities other than those in subparagraph 1;
3.Revenue from guaranty fees;
4.Revenue from the Fund; and
5.Loans from financial institutions, or other funds.
(2)The method, time, and any other matters concerning the investment under paragraph (1) shall be determined by the Presidential Decree.
(3)The method of loan, ceiling on loan, and any other matters concerning the loan from financial institutions or other funds shall be determined by the Presidential Decree.

Article 32 (Management of Fund)
The Fund shall be used for the following purposes:
1.Guarantee of loan obligations;
2.Repayment of principal and interest on loans under Article 31 (1) 5;
3.Expenses for the foundation, operation and management of the Fund;
4.Research and development for the promotion of the Fund and the development of the private investment system; and
5.Other purposes as determined by the Presidential Decree.

Article 33 (Accounting and Settlement of Fund)
(1)The fiscal year of the Fund shall be the same as that of the Government.
(2)The management institution shall administer the accounts of the Fund separately from other accounts.
(3)The management institution shall prepare a plan for the management of the Fund for each fiscal year including its gross revenue and expenses, and submit it to the Minister of Planning and Budget who shall approve it no later than the date of commencement of the current fiscal year. The same shall apply to the modification of the plan.
(4)The management institution shall prepare the statement of account, balance sheet, and income statement of the Fund, and submit them to the Minister of Planning and Budget within two months after the lapse of the fiscal year, and the balance sheet shall be published without delay.
(5)If any profit accrues from the settlement, the total amount thereof shall be reserved.
(6)If any loss is incurred as a result of the settlement, it shall be covered by the amount of the reserve referred to in paragraph (5), and if such reserve is insufficient, the Government shall offset it in accordance with the conditions of the budget.

Article 34 (Limit on and Eligibility for Guarantee)
(1)The management institution may guarantee at the Fund s expense the pecuniary obligation borne by the concessionaires receiving the loan, benefit, and other comparable matters from domestic financial institutions or foreign financial institutions (referring to institutions which are established in accordance with foreign laws and regulations and carrying on a financial business in such foreign countries; hereinafter the same shall apply) and a Private Infrastructure Bond issued in accordance with Article 58. In this case, the management institution shall investigate fairly and sincerely the management conditions, business prospects, credit conditions, etc. of the concessionaires.
(2)In operating the Fund, the management institution shall give priority with regard to the provision of the credit guarantee to small and medium-sized businesses with weak security capacities.
(3)The limit of the total amount of the credit guarantee to be given from the Fund by the management institution shall be determined by the Presidential Decree, within the scope of twenty times the total amount of the capital investment as prescribed in Article 31 (1) 1 and 2 and the reserve as prescribed in Article 33 (5).
(4)The maximum permissible amount of credit guarantee to be given from the Fund by the management institution to the same corporation shall be determined by the Presidential Decree.

Article 35 (Establishment of Guarantee Relation)
(1)In giving guarantee under Article 34, the management institution shall conclude a contract with a domestic or foreign financial institution to guarantee at the Fund s expense the credit of a concessionaire who intends to get loan for a private investment project.
(2)The guarantee relation between the management institution and the domestic or foreign financial institution shall be deemed to be established if the management institution examines the application of the concessionaire who intends to receive the loan for a private investment project and notifies the domestic or foreign financial institution with which the contract as prescribed in paragraph (1) was concluded: Provided, That the effect of such guarantee relation shall be considered as effective upon the actual provision of the loan by the domestic or foreign financial institution to the private investment project.
(3)Notwithstanding the provisions of paragraph (2), no guarantee relation shall be deemed to be established, if the domestic or foreign financial institution fails to make the actual payment of the loan to the concessionaire who has applied for the loan, or fails to notify the applicant of the approval of the loan, within sixty days after the notification as referred to in paragraph (2).

Article 36 (Guarantee Fee)
(1)The management institution shall collect a fee for the guarantee from the concessionaire who receives the guarantee, taking into consideration the scale, financial condition, degree of credit of his business and other comparable matters, under the conditions as prescribed by the Presidential Decree.
(2)If the concessionaire fails to pay the guarantee fee within the payment period given, the management institution shall collect the guarantee fee in arrears equivalent to the rate of 10 percent per annum on the unpaid guarantee fee.

Article 37 (Duty to Notify)
The domestic or foreign financial institution shall, upon receiving notification as prescribed in Article 35 (2), notify the management institution without delay in the following cases:
1.Where a relation of principal obligation has been established;
2.Where all or part of the principal obligation has expired;
3.Where the obligor fails to perform the obligation;
4.Where the obligor has lost the benefit of time limit;
5.Where the guarantee relation has yet to be established for the reason under Article 35 (3); and
6.Where any other cause which may have an effect on the guarantee obligation takes place.

Article 38 (Discharge of Guarantee Obligation)
(1)A domestic or foreign financial institution or a holder of a Private Infrastructure Bond issued under Article 58 may request the payment of the obligation guaranteed to the management institution, if the cause as prescribed by the Presidential Decree takes place, such as the concessionaire s default of obligation for a considerable amount of time.
(2)The management institution shall, upon the request to discharge the guarantee obligation under paragraph (1), reimburse at the Fund s expense the principal obligation and such other subordinate obligations as prescribed by the Presidential Decree.

Article 39 (Damages)
If the management institution has discharged the guarantee obligation at the Fund s expense, it shall collect damages from the concessionaire, within the limit of 25 percent per annum on the actual amount discharged from the Fund, under the conditions as prescribed by the Presidential Decree.

Article 40 (Right of Indemnity)
(1)If the management institution has discharged the guarantee obligation at the Fund s expense, it shall take any necessary measures for the exercise of the right of indemnity.
(2)If the concessionaire for whom the guarantee obligation is discharged at the Fund s expense falls under any of the following subparagraphs, the management institution may reserve the exercise of the right of indemnity against the concessionaire concerned:
1.When it is deemed that nothing will remain of the concessionaire s property if he makes up for the expenses for the exercise of the right of indemnity; and
2.When it is deemed that reserving the exercise of the right of indemnity can increase the concessionaire s ability to perform the financial obligation.


SECTION 5 Infrastructure Facilities Fund


Article 41 (Purpose of Establishment of Infrastructure Fund)
(1)A infrastructure facilities fund (hereinafter referred to as a infrastructure fund ) may be established for the purpose of investing its assets in an infrastructure facilities project to distribute the benefits accruing therefrom to the shareholders.
(2)An infrastructure fund shall be deemed to be a securities investment company pursuant to the Act on Business of Operating Indirect Investment and Assets.
(3)An infrastructure fund shall be the repurchase prohibition investment company pursuant to Article 45 (1) of the Act on Business of Operating Indirect Investment and Assets.
(4)Except as otherwise provided by this Act, the Act on Business of Operating Indirect Investment and Assets shall be applicable to an infrastructure fund.
(5) The person who is not an infrastructure fund under this Act shall not use the title of an infrastructure fund or of the title similar thereto.
[This Article Wholly Amended by Act No. 7386, Jan. 27, 2005]

Article 41-2 (Equity Capital of Infrastructure Fund)
(1) The equity capital of an infrastructure fund shall be more than the amount as prescribed by the Presidential Decree within the scope not exceeding ten billion won on the basis of the time of application for registration.
(2)The minimum net assets of an infrastructure fund shall be more than the amount as prescribed by the Presidential Decree within the scope not exceeding five billion won.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-3 (Acceptance and Payment for Stocks by Promoters in Case of Promoted Establishment)
When the promoters of an infrastructure fund have accepted the total number of stocks to be issued at the time of establishment of an infrastructure fund, they shall immediately pay in cash the total amount of the said acceptance value on each stock.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-4 (Subscription, etc. for Acceptance of Stocks in Case of Recruited Establishment)
(1) Where the promoters of an infrastructure fund have failed to accept the total number of stocks to be issued at the time of establishment of company and to persuade a subscription for acceptance of the stocks, they shall provide the said counterpart with the explanation note. Matters concerning the items to be included in the explanation note and the method of provision, etc. shall be prescribed by the Presidential Decree.
(2) When the promoters of an infrastructure fund have prepared the explanation note as referred to in paragraph (1), they shall submit it to the Financial Supervisory Commission before providing it to the counterpart. The same shall also apply to the time of altering the important details as prescribed by the Presidential Decree.
(3)The promoters of an infrastructure fund shall provide the subscription note for the stocks to the person intending to subscribe for an acceptance of stocks as prescribed by the Presidential Decree, and the person intending to subscribe for an acceptance of stocks shall state the kind, number and address on two copies of the explanation note, and sign his name and seal or sign.
(4)Even if the promoters of an infrastructure fund have failed to accept the total number of stocks to be issued at the time of establishment of company and have persuaded a subscription for acceptance of the stocks, they shall accept the stocks of more than the amount equivalent to the ratio as prescribed by the Presidential Decree within the scope of not exceeding 10/100 of the equity capital to be appropriated by an infrastructure fund as referred to in Article 41-2 (1).
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-5 (Loan of Fund and Issuance of Bonds)
(1)An infrastructure fund may borrow or issue the bonds for the purpose of raising the operational fund and the fund for temporary investment purpose within the scope not exceeding 30/100 of the equity capital of an infrastructure fund within the limits of ratio as prescribed by the Presidential Decree: Provided, That when an infrastructure fund borrows or issues the bonds, it shall obtain an approval of the general stockholders meeting.
(2) The limit of borrowing or issuing the bonds as referred to in paragraph (1) shall not apply to an infrastructure fund corresponding to the indirect investment organization as referred to in Article 175 (1) of the Act on Business of Operating Indirect Investment and Assets.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-6 (Consultation, etc. on Registration of Infrastructure Fund)
(1) The Financial Supervisory Commission shall hold in advance the consultation with the Minister of Planning and Budget on the registration of an infrastructure fund.
(2)An infrastructure fund shall submit pursuant to the provisions of the Presidential Decree a quarterly business report on its assets to the Minister of Planning and Budget and the Financial Supervisory Commission.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-7 (Conditions on Issuing New Stocks)
Where an infrastructure fund issues new stocks after its establishment, the issuing value of new stocks shall be computed pursuant to the methods as prescribed by the Presidential Decree on the basis of net assets of the properties owned by the relevant infrastructure fund.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-8 (Listing Stocks)
(1)When an infrastructure fund becomes to satisfy the listing requirements of the securities listing regulations of the Korea Stock Exchange under Article 88 of the Securities and Exchange Act and the listing regulations of the KOSDAQ market, it shall immediately take the procedures for listing its stocks to the securities market or the KOSDAQ market.
(2)When an infrastructure fund fails to progress the procedures for listing to the securities market or the KOSDAQ market as referred to in paragraph (1), without any justifiable reasons, the Minister of Planning and Budget may order it to make the said implementation by fixing the period.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 41-9 (Supervision and Inspection on Infrastructure Fund, etc.)
(1) The Minister of Planning and Budget and the Financial Supervisory Commission may demand an infrastructure fund and the property operation company, the property custody company and the general affairs management company of the relevant infrastructure fund to submit the data or file a report on the business and properties of the company concerned which are related to the business of the infrastructure fund.
(2)When the Financial Supervisory Commission deems it necessary concerning the financial supervision, it may have its subordinate staff members or the Governor of the Financial Supervisory Service as referred to in Article 24 of the Act on the Establishment, etc. of Financial Supervisory Organizations inspect the businesses of the infrastructure fund, and the property operation company, the property custody company and the general affairs management company of the relevant infrastructure fund.
[This Article Newly Inserted by Act No. 7386, Jan. 27, 2005]

Article 42 (Prohibition of Side Trade)
An infrastructure fund shall not carry on the business other than the investment under Article 43.
[This Article Wholly Amended by Act No. 7386, Jan. 27, 2005]

Article 43 (Scope of Assets Management)
(1) An infrastructure fund may perform the following businesses:
1.Aquisition of stocks and bonds issued by corporations with the purpose of implementing infrastructure facilities projects;
2.Aquisition of loan credits against corporations with the purpose of implementing infrastructure facilities projects;
3.Aquisition ofstocks or shares of the corporation (excluding the infrastructure fund) with the purpose of investing by the mode of subparagraph 1 or 2 in the corporation with the purpose of implementing an infrastructure facilities projects; and
4.Other investments approved as necessary for achieving the purpose under subparagraphs 1 through 3 by the Financial Supervisory Commission.
(2) When deemed necessary for carrying on the business under each subparagraph of paragraph (1), the infrastructure fund may offer its assets as security or make guarantees.
(3) An infrastructure fund may operate the surplus fund as follows:
1.Deposit in a financial institution; and
2.Purchase of national and public bonds.
[This Article Wholly Amended by Act No. 7386, Jan. 27, 2005]

Article 44 (Relation with Other Acts)
(1) Articles 37 (5), 41 (2) 2, 45 (2) through (4), 46, 53 (2), 87, 88, 89 (2) through (4), 94, 96 (2) and 177 of the Act on Business of Operating Indirect Investment and Assets shall not apply to the infrastructure funds.
(2)When an infrastructure fund becomes falling under a holding company as referred to in subparagraph 1-2 of Article 2 of the Monopoly Regulation and Fair Trade Act, the provisions of Article 8-2 (1) 2 of the same Act shall not be applicable.
[This Article Wholly Amended by Act No. 7386, Jan. 27, 2005]



CHAPTER III SUPERVISION


Article 45 (Supervision)
(1)The competent authority may supervise matters related to the private investment project of concessionaire and issue orders necessary for such supervision, only in the cases as prescribed by the Presidential Decree, to the extent such supervision does not interfere with the free management of the concessionaire.
(2)The Minister of Planning and Budget may supervise the management institution in the management of the Fund and issue necessary orders for such supervision.

Article 46 (Disposition of Violation of Acts and Subordinate Statutes)
In case where a concessionaire, etc. comes to fall under any of the following subparagraphs, the competent authority may revoke or change an order or disposition made under this Act, suspend or alter infrastructure facilities works, remodel, alter, transfer, remove or recover the original state of any facilities or things thereof, or take any other necessary dispositions:
1.Where the designation, approval, or confirmation pursuant to this Act is granted by any false or other unlawful way;
2.Where this Act, or an order or a disposition under this Act is violated;
3.Where the concessionaire fails to commence construction work within the period determined by the detailed engineering and design plan for implementation without any justifiable reason, or where it is deemed that the execution of the project is impossible because of the concessionaire s delay or avoidance of project implementation after the commencement of construction; and
4.Where the corporation established as prescribed in Article 14 (3) violates the provisions of Article 14 (4).

Article 47 (Disposition for Public Interest)
(1)In the following cases, the competent authority may implement the disposition prescribed in Article 46 against a party who has obtained designation, approval, or confirmation under the conditions as prescribed by this Act. In this case, the project designated by going through a deliberation by the Committee shall go through a deliberation by the Committee:
1.Where it is necessary for public interest such as efficient operation of the infrastructure facilities or a change of circumstances;
2.Where it is required for the efficient implementation of the infrastructure facilities works; and
3.Where force majeure such as war or natural disaster takes place.
(2)If there is any concessionaire who suffers loss due to the disposition as referred to in paragraph (1), the competent authority shall make compensation for such loss. In this case, the competent authority shall consult with the concessionaire about the compensation for loss, and if the two fail or are unable to reach an agreement with each other, they may request a ruling to the concerned land expropriation committee under the conditions as prescribed by the Presidential Decree.

Article 48 (Hearing)
The competent authority shall hold a hearing, if it intends to take the following dispositions:
1.Disposition pursuant to the provisions of Article 46; and
2.Disposition pursuant to the provisions of Article 47 (1).

Article 49 (Measures concerning Cancellation of Concessionaire Designation)
If the competent authority cancels the designation of the concessionaire as prescribed in Articles 46 and 47, it may directly implement the private investment project concerned or may designate a new concessionaire under Article 13 to continue the implementation of the project.

Article 50 (Cancellation of Designation of Such Solicited Project)
(1)The competent authority may cancel the designation of the solicited project pursuant to Article 8-2 (2) through the deliberation of the Committee in the following cases:
1.When the instruction for proposal is not publicly announced within the period specified in Article 10 (1); and
2.When the instruction for proposal is reannounced as prescribed in Article 10 (4) but the project proposal pursuant to Article 13 has not been submitted.
(2)The competent authority may cancel the designation of solicited projects other than those under Article 8-2 (2), if they fall under the subparagraphs of paragraph (1).
(3)The competent authority shall immediately make a public announcement in the Official Gazette on the cancellation of the designation of the solicited project as prescribed in paragraphs (1) and (2).

Article 51 (Reporting and Inspection)
(1)If deemed necessary for supervision, the competent authority may take necessary measures such as requesting the concessionaire to make a report necessary for the management and operation of the infrastructure facilities, or dispatching any public official under its control to visit the site or inspect documents.
(2)A public official who visits the site or inspects documents as prescribed in paragraph (1) shall carry a certificate indicating his power and present it to the party concerned.



CHAPTER IV SUPPLEMENTARY PROVISIONS


Article 52 (Investment by Public Sector)
(1)Where the public sector invests in a public and private joint corporation (including a joint corporation to be newly established; hereinafter the same shall apply) conducting infrastructure facilities projects promoted in the mode as referred to in subparagraph 4 of Article 4, the share of the total amount of investment by the public sector shall be less than 50 percent, except the case where it is determined by the Presidential Decree.
(2)Where the public sector invests in a public and private joint corporation as prescribed in paragraph (1), it shall not exercise voting rights, notwithstanding the provisions of Article 369 (1) of the Commercial Act, except the case where it is determined by the Presidential Decree.
(3)The State or a local government may, if deemed necessary, contribute in kind the following property to a public and private joint corporation, notwithstanding the provisions of the Act on the Contribution In-Kind of State Properties and the Local Finance Act:
1.Miscellaneous properties as prescribed in Article 4 (4) of the State Properties Act and Article 72 (2) of the Local Finance Act;
2.Movables ancillary to the miscellaneous properties referred to in subparagraph 1 which are prescribed in Article 2 (1) of the Commodity Management Act and Article 90 of the Local Finance Act;
3.Management and operation rights; and
4.Other properties as determined by the Presidential Decree.
(4)The value of the management and operation rights contributed to a public and private joint corporation as prescribed in paragraph (3) shall be calculated, taking into consideration the amount invested in the new construction, extension, improvement or operation of infrastructure facilities by the State and the local governments and the profitability thereof.

Article 53 (Financial Support)
If it is necessary for the efficient implementation of construction projects of revertible facilities, the State or a local government may grant a subsidy or extend a long-term loan to the concessionaire, only where prescribed by the Presidential Decree.

Article 54 (Introduction of Foreign Loan)
The concessionaire may have a loan introduced under the conditions as prescribed by the Foreign Exchange Transactions Act and the Foreign Investment Promotion Act.

Article 55 (Special Case of Dividends)
In the payment of the dividend of a public and private joint corporation, the public sector which has invested in the public and private joint corporation may additionally provide all or part of the public sector s dividends to the shareholders in the private sector, notwithstanding the provisions of Article 464 of the Commercial Act, if it is deemed necessary for the protection of small and medium-sized businesses or minor shareholders.

Article 56 (Reduction and Exemption of Charges)
(1)Where it is required to divert any farmland or mountainous district in an area designated for the use of a private investment project, a concessionaire may be given a discount or an exemption of the farmland preservation charges or the afforestation of substitute forest resources expenses under the conditions as prescribed by the Farmland Act or the Management of Mountainous Districts Act.
(2)When a concessionaire conducts a private investment project, he may be given a discount or an exemption of development charges or overpopulation charges under the conditions as prescribed by the Restitution of Development Gains Act or the Seoul Metropolitan Area Readjustment Planning Act.

Article 57 (Reduction and Exemption of Tax)
The State or local governments may reduce or exempt the taxes to promote private investment under the conditions as prescribed by the Restriction of Special Taxation Act and the Local Tax Act.

Article 58 (Issuance of Infrastructure Facilities Bond)
(1)A concessionaire or such a financial institution as determined by the Presidential Decree may issue bonds as prescribed by the Presidential Decree in order to procure funds necessary for the execution of a private investment project or to discharge an obligation assumed in connection with a private investment project (hereinafter referred to as Infrastructure Facilities Bond ).
(2)Funds raised through the Private Infrastructure Bond pursuant to paragraph (1) shall not be used for purposes other than for a private investment project.

Article 59 (Grant of Buyout Right)
If a concessionaire of a revertible facility is unable to construct, manage, or operate infrastructure facilities due to inevitable circumstances as determined by the Presidential Decree including natural calamities, he may request the State or a local government to purchase the project (including supplementary projects) concerned under the conditions as prescribed by the Presidential Decree.

Article 60 (Deliberation over and Responsible Supervision of Design of Revertible Facilities)
(1) The feasibility of design, safety, and propriety of construction work of revertible facilities shall be subject to the deliberation of the Committee for Deliberation on Construction Technology under Article 5 of the Construction Technology Management Act or the Advisory Committee on Matters of Design under Article 5-2 of the said Act.
(2) The responsible supervision of the construction projects of revertible facilities shall be conducted in accordance with the provisions of Article 27 of the Construction Technology Management Act.
[This Article Wholly Amended by Act No. 6776, Dec. 11, 2002]

Article 61 (Delegation of Authority)
The competent authority may delegate a part of the authority as prescribed by this Act to the head of an administrative agency under its jurisdiction, the head of a local government, or the head of the local government in the area under its jurisdiction.



CHAPTER V PENAL PROVISIONS


Article 62 (Penal Provisions)
A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than three years or by a fine not exceeding thirty million won:
1.A person who has been designated as a concessionaire as prescribed in Article 13 by a deceitful or other unlawful way;
2.A person who has obtained approval or approval for modification of the detailed engineering and design plan for implementation as prescribed in Article 15 (1) (including where matters concerning any supplementary projects are included under Article 21 (2); hereafter in this Article the same shall apply) by a deceitful or other unlawful way;
3.A person who conducts any private investment project without obtaining approval for the detailed engineering and design plan for implementation and the modification thereof as prescribed in Article 15 (1); and
4. A person who manages assets in violation of Article 43.

Article 63 (Penal Provisions)
A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than one year or by a fine not exceeding ten million won:
1.A person who utilizes land or infrastructure facilities without obtaining the confirmation of construction completion as prescribed in Article 22 (2);
1-2.A person who uses the title of an infrastructure fund or that similar thereto in contravention of the provisions of Article 41 (5);
1-3.A person who fails to offer an explanation note as referred to in the provisions of Article 41-4 (1), or offers an explanation note prepared in falsity;
1-4.A person who borrows the fund or issues the bonds in contravention of the purpose or limit as referred to in the provisions of Article 41-5;
2.A person who violates a disposition against the violation of Acts and subordinate statutes as prescribed in Article 46; and
3.A person who acts in contravention of a disposition for the public interest as prescribed in Article 47 (1).

Article 64 (Joint Penal Provisions)
If a representative of a juristic person, or an agent, servant, or any other employee of a juristic person or individual, commits any offence as prescribed in Articles 62 and 63 in connection with the affairs of the juristic person or the individual, the fine as prescribed in the respective Articles shall also be imposed on the juristic person or individual in addition to the due punishment for the offender.

Article 65 (Fine for Negligence)
(1)A person who falls under any of the following subparagraphs shall be punished by a fine for negligence not exceeding ten million won:
1.A person who, without any justifiable reason, refuses to comply with or obstructs the concerned concessionaire from his access to the land, his temporary use or alteration of obstacle therein under Article 18;
1-2.A person who fails to implement the order for stock listing as referred to in the provisions of Article 41-8 (2);
2.A person who violates an order for supervision as prescribed in Article 45;
3.A person who fails to submit a report as prescribed in Article 51 (1) or who submits a false report; and
4.A person who avoids, interrupts, or boycotts the inspection as prescribed in Article 51 (1).
(2)The fine for negligence referred to in paragraph (1), shall be imposed and collected by the competent authority, the Minister of Planning and Budget, or the head of a local government (hereinafter referred to as the authorized person ), under the conditions as prescribed by the Presidential Decree.
(3)Any person who is dissatisfied with the disposition of fine for negligence as referred to in paragraph (2) may make an objection against the authorized person within thirty days after he is informed of the disposition.
(4)If a person who is subject to the disposition of a fine for negligence as referred to in paragraph (2) has made an objection under paragraph (3), the authorized person shall notify without delay the competent court, which shall, upon receiving the notification, bring the case of fine for negligence to court under the Non-Contentious Case Litigation Procedure Act.
(5)If the concerned person neither pays the fine for negligence in the period as referred to in paragraph (3) nor makes an objection thereof, it shall be collected according to the examples of the disposition of national or local taxes in arrears.



ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force three months after its promulgation. The provisions of Articles 30 through 40 of Section 4 of Chapter II and Article 3 of this Addenda shall enter into force on January 1, 1999.

Article 2 (Transitional Measures concerning Private Capital Inducement Projects)
(1)A project designated for private capital inducement as prescribed in Article 5 of the Promotion of Private Capital into Infrastructure Investment Act before the enforcement of this Act, for which the instruction for proposal was not publicly announced by the date of the enforcement of this Act, shall be excluded from the solicited projects pursuant to this Act: Provided, That a project which the competent authority requests designation as a solicited project may be designated as a solicited project by this Act after the deliberation of the Committee.
(2)The instruction for proposal of a project which was publicly announced before the enforcement of this Act but for which no concessionaire was designated by the date of the enforcement of this Act may be revised and notified in accordance with this Act.
(3)A project for which the project proposal has already been submitted before the enforcement of this Act pursuant to the instruction for proposal as prescribed in the Promotion of Private Capital into Infrastructure Investment Act shall be deemed as that the project proposal which has been submitted under the provisions of Article 13. In this case, concession agreement may be concluded after modification of the project proposal which was made under the Promotion of Private Capital into Infrastructure Investment Act, by applying this Act.
(4)With regard to a project for which the concessionaire was designated before the enforcement of this Act under the Promotion of Private Capital into Infrastructure Investment Act, the contents of the concession agreement which was concluded under the previous Acts may be modified in accordance with this Act.
(5)In the application of the provisions of paragraphs (2) and (4), a project, the instruction for proposal for which was publicly announced through deliberation of the Committee under the provisions of the Promotion of Private Capital into Infrastructure Investment Act shall undergo redeliberation by the Committee pursuant to Article 5 of this Act.

Article 3 (Transitional Measures concerning Integration of Management Institution of Infrastructure Credit Guarantee Fund)
(1)Assets, bonds and liabilities retained by the Korea Development Bank and the Credit Guarantee Fund for Technical Development in connection with the Infrastructure Credit Guarantee Fund under the Promotion of Private Capital into Infrastructure Investment Act before the enforcement of this Act shall be transferred to the Infrastructure Credit Guarantee Fund managed by the Credit Guarantee Fund.
(2)The activities of the Korea Development Bank and the Credit Guarantee Fund for Technical Development or measures taken by the institutes in connection with the Infrastructure Credit Guarantee Fund under the Promotion of Private Capital into Infrastructure Investment Act prior to the entry into force of this Act shall be deemed as actions or measures taken by the Credit Guarantee Fund in accordance with this Act.
(3)The Credit Guarantee Fund shall generally succeed all rights and obligations of the Korea Development Bank and the Credit Guarantee Fund for Technical Development in connection with the Infrastructure Credit Guarantee Fund under the Promotion of Private Capital into Infrastructure Investment Act before the enforcement of this Act.
(4)The Korea Development Bank and the Credit Guarantee Fund for Technical Development shall prepare a list of assets, account books, and documents in connection with the Infrastructure Credit Guarantee Fund before the enforcement of this Act and shall be transferred to the Credit Guarantee Fund upon approval of the Chairman of Planning and Budget Commission.

Article 4 (Transitional Measures concerning Previous Dispositions)
The dispositions such as designation, approval, and confirmation given under the provisions of the Promotion of Private Capital into Infrastructure Investment Act, other than the matters provided for by Articles 2 and 3 of this Addenda shall be deemed to have been given pursuant to this Act.

Article 5 (Relation with Other Acts)
At the time of the entry into force of this Act, if the Promotion of Private Capital into Infrastructure Investment Act or any of the provisions thereof is cited in another law, it shall be deemed that this Act or the corresponding provisions herein are cited.



ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force two months after the date of its promulgation.

Articles 2 through 11 Omitted.
ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 1999. (Proviso Omitted.)

Articles 2 through 4 Omitted.












ADDENDA


(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) Omitted.







ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)

Articles 2 through 6 Omitted.











ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 13 Omitted.












ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2001.

Articles 2 through 6 Omitted.












ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2003.

Articles 2 through 12 Omitted.













ADDENDA


(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Articles 18 and 21 shall enter into force on January 1, 2003, and the amended provisions of Article 23, on the date of its promulgation, respectively.
(2) (Applicable Cases concerning Inspection of Basic Design Drawings and Other Materials) The amended provisions of Article 10 (5) shall apply to the solicited projects which are designated on and after the enforcement date of this Act.
(3) (Applicable Cases concerning Using and Benefiting from National or Public Property without Compensation) The amended provisions of Article 19 (3) and (4) shall apply to the construction projects of revertible facilities the completion of which is confirmed on and after the enforcement date of this Act.



ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation.

Articles 2 through 12 Omitted.











ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 18 Omitted.












ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 13 Omitted.












ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.

Articles 2 through 6 Omitted.










ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 4 Omitted.











ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 7 Omitted.











ADDENDA

Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 10 Omitted.










ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 5 (8) of the Addenda shall enter into force starting from April 1, 2005.

Article 2 (Application Example concerning Submission of Total Limited Amount, etc. to National Assembly)
The Government shall submit, not later than the end of June of the concerned year, total limited amount and the limited amount by objective facilities as referred to in the provisions of Article 7-2 in the first fiscal year to the National Assembly.

Article 3 (Transitional Measures concerning Private Investment Support Center)
(1) The Private Investment Support Center under the previous provisions at the time of enforcing this Act shall be deemed to be the public investment management center as referred to in the amended provisions of Article 23.
(2) Staff members of the private investment support center at the time of enforcing this Act shall be deemed to be those of the public investment management center.

Article 4 (Transitional Measures concerning Investment Fund of Infrastructure Facilities)
(1)The previous provisions and those of the previous Securities Investment Company Act shall apply to the indirect capital investment fund established under the previous provisions at the time of enforcing this Act.
(2) The previous indirect capital investment fund at the time of enforcing this Act may alter its articles of incorporation into that of the infrastructure facilities fund as referred to in the amended provisions of Article 41. In this case, the relevant indirect capital investment fund shall be deemed to be the infrastructure facilities fund under the amended provisions.
(3) The corporation which carries on the property operation business by being entrusted with the property operation business from the previous indirect capital investment fund at the time of enforcing this Act shall obtain a permission for the property operation company under the Act on Business of Operating Indirect Investment and Assets within three months from the time when the relevant indirect capital investment fund was altered into the infrastructure facilities fund under the amended provisions as referred to in the provisions of paragraph (2).

Article 5 Omitted.

Article 6 (Relationship with Other Acts and Subordinate Statues)
Where other Acts and subordinate statutes cite the Act on Private Participation in Infrastructure and the provisions thereof at the time of enforcement of this Act, if any corresponding provisions are included in this Act, it shall be construed to have cited this Act and corresponding provisions thereof in lieu of the previous provisions.

































ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted.






























ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.

Articles 2 through 8 Omitted.











ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)

Articles 2 through 7 Omitted.











ADDENDA


Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 6 Omitted. ">

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