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Laws of the Republic of Korea |
LOCAL SMALL AND MEDIUM ENTERPRISES ACT
[Enforcement Date: Dec. 10, 2009] [Act No. 9774, Jun. 9, 2009, Other Laws and Regulations Amended]
Ministry of Land, Transport and Maritime Affairs (Regional Policy Division) Tel.: 02-2110-8173
CHAPTER I GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to develop regional development potentials for the reasonable utilization, development and preservation of the national land and to induce voluntary participation of the private sector in regional development projects so that they may be efficiently carried out, and at the same time, to induce people to settle down in local areas and revitalize the local economy by actively fostering small and medium enterprises in local areas, and thereby to contribute to the balanced development of the national land. Article 2 (Definitions)
The definitions of terms used in this Act shall be as follows:
1. The term "regional development plan" means the following plans which are to be
established and carried out to induce the systematic
regional development:
(a) The Do comprehensive plan and the city/Gun comprehensive plans which are drawn up
in accordance with
the provisions of Article 6 (2) 2 and 3 of the Framework Act on the
National Land;
(b) The urban master plan and the urban management plan that are drawn up in accordance
with Articles 18 and 30 of the National
Land Planning and Utilization Act;
(c) The wide-area development project plan, the development plan for development
promotion district,
the development plan for specific region and the development plan
for regional comprehensive development district pursuant to the
provisions of Articles 5,
14, 26-4 and 38-3;
2. The term "regional development project" means a development project for the
implementation of the regional development plan;
3. The term "private developer" refers to an individual or a corporation established under
the Commercial Act or the Civil Act, and
a regional development corporation
established under Article 30
4. The term "private capital inducement project" refers to a regional development project to
be carried out by a private developer
with his/her own capital and technology, etc., in
accordance with the private capital inducement plan under the provisions of Article
27
5. Deleted; and 6. The term "local small and medium enterprise" refers to any person falling under one of
the following items, whose head office,
main office or one of whose business places is
located within the jurisdictional area of the Special Metropolitan City, a Metropolitan
City, or a Do (hereinafter referred to as the "City/ Do"):
(a) A small and medium enterprise operator under the provisions of Article
2 (1) or (2) of
the Framework Act on Small and Medium Enterprises; and
(b) A small and medium enterprise cooperative as prescribed
in subsections 1 through 3 of
Article 3 of the Small and Medium Enterprise Cooperatives Act.
Article 3 (Responsibilities of State,
etc.)
(1) The State shall establish policies so that the functions for the improvement of national
standards of living and regional development
such as public administration, industry,
education, culture, tourism, etc. can be impartially located in the local regions, and
devise
supporting measures for the fulfillment of such policies.
(2) The State and the local government shall secure, first of
all, financial resources
necessary for the establishment and implementation of the regional development plan, and,
if necessary,
may establish plans for private capital and technology, etc., to participate in the
regional development project.
CHAPTER II ESTABLISHMENT AND IMPLEMENTATION OF WIDE-
AREA DEVELOPMENT PROJECT PLAN
Article 4 (Designation of Wide-area Development Regions)
(1) In the case where the Minister of Land, Transport and Maritime Affairs
(hereinafter
referred to as the "Minister") deems that a Metropolitan City and its vicinity, industrial
complex and its hinterland,
or several cities that are mutually adjacent and form a same
living sphere, or that it is necessary to develop regions which need
joint exploitation and
management of resources on a wide-area basis, he/she may designate such areas a wide-area
development region,
and develop it.
(3) In the case where the Minister intends to designate a wide-area development region
under the provisions of section (1), he/she
shall prepare a proposal for the designation of a
wide-area development region under the conditions as prescribed by the Presidential
Decree,
and consult with the heads of the related central administrative agencies and the
Metropolitan City Mayor or Do governor.
This shall apply to the case of altering the
designated wide-area development region: Provided that this shall not apply to the
case of
altering minor matters prescribed by the Presidential Decree.
(4) In the case where the Minister has designated or altered a wide-area development region
under the provisions of section (1),
he/she shall publicly announce the matters listed in the
following subsections:
1. Name and scope of the wide-area development region;
2. Basic goal of the development;
3. Period of the designation; and
4. Other matters prescribed by the Presidential Decree.
(5) In the case where the period of the designation, as provided in section
(4) 3, has expired,
the designation of a wide-area development region shall be deemed to be dissolved on the
day following the
expiration date.
Article 5 (Establishment of Wide-area Development Project Plan)
(1) Where all or part of the jurisdictional area is included in
a wide-area development region
designated and publicly announced under the provisions of Article 4, the Metropolitan City
Mayor
or Do governor shall prepare a wide-area development project plan (hereinafter
referred to as the "wide-area development plan"),
after listening to the opinions of the head
of city/Gun concerned, under the conditions as prescribed by the Presidential Decree,
and
submit the said plan to the Minister: Provided, that in a case where a wide-area development
region extending over more than
one Metropolitan City or Do has been designated, the
Metropolitan City Mayors or Do governors concerned shall jointly prepare the
wide-area
development plan.
(2) Where the wide-area development region designated over more than one Metropolitan
City/Do is necessary for the accomplishment
of a goal of the State, the Minister may
directly prepare the wide-area development plan after listening to the opinions of the
Metropolitan City Mayors or Do governors concerned, or may designate the person to
prepare the wide-area development plan among
the Metropolitan City Mayors or Do
governors concerned.
(3) Where the wide-area development plan is to be prepared under section (1) or (2), the
opinions of the residents and experts concerned
shall be listened to according to the
conditions as prescribed by the Presidential Decree, and where the said opinions are deemed
to be appropriate, the said opinions shall be reflected in the wide-area development plan.
(4) Where the Minister has received
the wide-area development plan prepared by the
Metropolitan City Mayor or Do governor, or has prepared the wide-area development
plan
directly under the provisions of section (1) or (2), he/she shall consult with the heads of the
central administrative agencies
concerned, and decide on the plan, and this shall apply to a
case where he/she intends to alter the plan: Provided, that this shall
not apply to a case of
changing minor matters prescribed by the Presidential Decree, such as changing the location
where he/she
is to undertake a development project on the grounds of topography, etc.
(5) When the Minister has decided on or altered any wide-area development plan in
accordance with section (4), he/she shall publicly
announce the details of such decision and
alteration in the Official Gazette under the conditions as prescribed by the Presidential
Decree.
1. Matters concerning the utilization of the land located within the wide-area development
area concerned such as industrial sites,
residential complexes, amusement and rest areas,
etc.;
2. Matters concerning the arrangement of such public facilities as traffic facilities, water
supply facilities and sewerage facilities,
etc., which are to be commonly used in the
wide-areas concerned;
3. Matters concerning the installation of wide-area garbage treatment sites, wastes disposal
facilities, etc.;
4. Matters concerning the development of cultural and tourism resources;
5. Matters concerning the preservation of environment such as protection of natural
sceneries, preservation of ecosystem, and securing
of green spaces, etc;
6. Matters concerning the scale of investment required for the implementation of such
projects as listed in subsections 1 through
5; and
7. Other matters prescribed by the Presidential Decree, which are deemed necessary for the
comprehensive development of the wide-area
development region concerned.
Article 7 (Relation with Other Plans)
When the Minister intends to establish a wide-area development plan under the provisions
of Article 5, he/she shall first consider
any development plan that was established under the
provisions of other Acts, if available.
Article 8 (Implementation of Wide-area Development Plans, etc.
(1) The projects which have been decided and publicly announced pursuant to a wide-area
development plan under the provisions of
Article 5 (5) shall be implemented in accordance
with the procedures determined by each Act related to the relevant project.
(2) The Minister shall evaluate the results of the implementation of the wide-area
development plan, under the conditions as prescribed
by the Presidential Decree.
CHAPTER III PROMOTION OF REGIONAL DEVELOPMENT
PROJECTS
SECTION 1 Designation and Development of Development Promotion
Districts
Article 9 (Designation of Development Promotion District)
(1) In the case where the Minister deems it necessary to promote the development
of the
area that is considerably underdeveloped compared to other areas, he/she may directly or
upon request from the Metropolitan
City Mayor or the Do governor designate a
development promotion district.
(2) The Metropolitan City Mayor or the Do governor shall, when he/she requests for the
designation of any development promotion
district under section (1), consult with the head
of the city/Gun/Gu (referring to the autonomous Gu, and this shall apply hereafter)
thereon
in advance.
Article 10 (Criteria for Designation of Development Promotion District)
(1) In designating a development promotion district, the
Minister shall designate within the
minimum scope necessary for the accomplishment of the purpose of the designation after
considering
the requirements listed in the following subsections: 1. The gross product and the rate of financial self-reliance of the area shall be considerably
lower than those in other areas;
2. The population of the area shall have been continuously decreasing or have been
stagnant for a specified period of time;
3. Creation of a new income basis shall be necessary because the previous regional
industries have deteriorated due to the changes
in economic conditions; and
4. The rearrangement of the production and living environment shall be required for the
balanced development between local areas.
(2) Detailed prerequisites for the designation of a development promotion district under the
provisions of section (1) shall be
prescribed by the Presidential Decree.
Article 11 (Procedures, etc., for Designation of Development Promotion District)
(1) When
the Minister intends to designate a development promotion district, he/she shall in
advance consult with the heads of the central
administrative agencies concerned. The same
shall apply to the case where alterations are to be made to the designation of the
development promotion district: Provided that this does not apply to a case where alterations
are to be made to such minor matters
as prescribed by the Presidential Decree. 1. Scope of the development promotion district;
2. Basic direction of the development;
3. Period of the designation; and
4. Other matters prescribed by the Presidential Decree.
(3) Deleted.
Article 11-2 (Cancellation of Designation of Development Promotion District)
(1) When the designation period provided under Article
11(2) 3 has lapsed, the designation
of the relevant development promotion district shall be deemed cancelled on the date
following
the date on which the designation period thereof has lapsed: Provided, that for the
project district, among development promotion
districts for which an approval of
implementation plan pursuant to the provisions of Article 17 has been obtained before the
designation
period has elapsed, the designation of development promotion district shall be
deemed cancelled on the date following the expiration
date of the project period set by the
implementation plan.
(2) In the case where the Minister deems it necessary for the balanced development between
local areas, he/she may decide on the
total area allowed for development promotion districts
per each of the Metropolitan Cities and Dos, under the conditions as prescribed
by the
Presidential Decree.
Article 13 Deleted.
(1) In the case where a development promotion district has been designated and publicly
announced under the provisions of Article
11, the head of the city/Gun/Gu shall, under the
conditions as prescribed by the Presidential Decree, prepare a development plan
for the
development promotion district (hereinafter referred to as the "development plan"):
Provided, that in a case where any
development promotion district is designated for more
than one city/Gun/Gu (referred to the autonomous Gu, and this shall apply
hereinafter), the
Metropolitan City Mayor or the Do governor shall prepare a development plan after
consulting with the heads of
cities/Guns/Gus.
(3) The Metropolitan City Mayor, the Do governor or the head of the city/Gun/Gu shall,
notwithstanding the provisions of section
(1), obtain an approval from the Minister for the
project plan which is implemented by the State or to be financially supported
for
(hereinafter referred to as a "State-financed project plan") among development plans, and
the same shall apply to the case
where he/she intends to alter any approved project plan.
(5) The Metropolitan City Mayor, the Do governor or the head of the city/Gun/Gu shall,
when he/she intends to draw up a development
plan under the provisions of sections (1)
through (3), listen to the opinions of residents and the related experts under the conditions
as
prescribed by the Presidential Decree and reflect their opinions, if deemed appropriate, in
such development plan.
(7) The development plan shall include the matters concerning the implementation of the
following projects:
1. Creation of production basis and related projects;
2. Projects to install or improve the facilities for the improvements of the living
environment of the residents concerned;
3. Infrastructure facilities rearrangement project for the development of the local area
concerned such as transportation facilities,
water supply facilities, etc.;
4. Projects which can contribute to the increase of the income of the residents concerned
such as the development of tourist resorts,
fostering specialized industries of the local
area concerned, etc.;
5. Environment-related projects necessary for the preservation of the natural environment;
and
6. Other projects as deemed to be necessary for the achievement of the goal of the
designation of the development promotion district,
selected by the Minister after
consultation with the heads of the central administrative agencies concerned.
(8) If the project
developer has not applied for an approval of the implementation plan
pursuant to the provisions of Article 17 within three years
from the date of public
announcement of the development plan under the provisions of section (6), the Metropolitan
City Mayor,
the Do governor or the head of the city/Gun/Gu shall investigate the status of
progress of the project, reason for delay, etc. and
submit a future arrangement plan to the
Minister. In this case, when it is deemed necessary upon consideration of the future
arrangement
plan, etc., the Minister may have the Metropolitan City Mayor, the Do
governor or the head of the city/Gun/Gu modify the development
plan, or revoke the
approval of the State-financed project plan pursuant to the provisions of section (3).
(1) In the event that a development plan has been publicly announced pursuant to the
provisions of Article 14 (6), any person who
intends to perform any activity falling under
the following subsections within the region subject to development project shall obtain
permission thereof from the head of the city/Gun/Gu. The same shall apply to the case
where he/she intends to alter the permitted
matters:
1. Construction of building: construction of a building pursuant to the provisions of Article
2 (1) of the Building Act, and alteration
of use thereof;
2. Installation of structures;
3. Change in the forms and quality of land: the activities of changing forms and quality of
land by means of the cutting of land,
raising the ground level of land, leveling of ground,
paving, etc. as well as reclamation of public waters;
4. Cutting and planting of trees;
5. Gathering of earth and rocks: the activities of gathering earth and rocks, such as soil,
sands, aggregates, rocks, etc.;
6. Subdivision of land; and
7. Activities of piling up articles that may interfere with the implementation of the
development project.
(2) Notwithstanding the provisions of section (1), the activities falling under any of the
following subsections may be performed
without permission:
1. Activities performed for emergency measures necessary for restoration from disaster or
control of calamity; or
2. Other activities prescribed by the Presidential Decree.
(3) Any person who has started construction work or business of activities
for which the
permission was obtained, or the permission was not required at the time of the public
announcement of the development,
and the permission is required under the provisions of
section (1), may continue to implement such construction work or business
after reporting to
the head of the city/Gun/Gu as prescribed by the Presidential Decree.
(4) The head of the city/Gun/Gu may order
the person who has violated the provisions of
section (1) to restore to the original state. In this case, if the ordered person
fails to perform
his/her duties, the head of the city/Gun/Gu may execute vicariously pursuant to the
Administrative Vicarious Implementation
Act.
(5) Excluding the provisions in this Act, provisions of Articles 57 through 60 and 62 of the
National Land Planning and Utilization
Act shall apply mutatis mutandis to the permission
pursuant to the provisions of section (1).
(6) If permission is obtained in accordance with the provisions of section (1), it shall be
deemed that permission is obtained under
the provisions of Article 56 of the National Land
Planning and Utilization Act.
[This Article Wholly Amended by Act No. 7695, Nov. 8, 2005]
Article 16 (Project Developer)
(1) Any regional development project executed within a development promotion district
(hereinafter referred to as the "district
development project") may be implemented by the
following persons, notwithstanding the provisions of other Acts:
1. The State or a local government;
2. Government-invested institutions prescribed by the Presidential Decree;
3. Local public enterprises under the Local Public Enterprises Act (hereinafter referred to
as the "local public enterprise"); or
4. Any person other than those provided under subsections 1 through 3, designated as a
project developer of the district development
project.
(2) The head of the competent city/Gun/Gu shall designate the project developer of a district
development project (excluding
the case where the State or the local government directly
executes such project) as prescribed by the Presidential Decree after
consideration of the
matters in the following subsections. In this case, if it is deemed necessary for the financing
of funds,
or for the utilization of developed technologies, which are required for the
implementation of the district development project
in question, more than one project
developer may be jointly designated, and in the case where the district development project
extends over more than one city/Gun/Gu and no agreement is reached among the head of
cities/Guns/Gus on the designation of the project
developer as a result of their consultations,
the Metropolitan City Mayor or the Do governor may designate the project developer
of
such project: 1. Contents and scale of project based on the development plan;
2. Capability to raise required fund;
3. Capability and experience in the implementation of regional development project; and
4. Connection, etc. with other regional development projects.
(3) In designating the project developer pursuant to the provisions
of section (2), for the
district development project implemented in accordance with the proposal of designation
pursuant to the
provisions of Article 9 (3), the person who has proposed designation may be
given priority in designation as the project developer.
(4) In the event that the Metropolitan City Mayor, the Do governor or the head of the
city/Gun/Gu (hereinafter referred to as the
"designator") has designated the project
developer of a district development project under the provisions of section (2), he/she
shall
publicly announce the contents thereof under the conditions as prescribed by the Presidential
Decree.
Article 17 (Approval of Implementation Plan)
(1) The project developer of a district development project shall prepare his/her
implementation plan under the conditions as prescribed
by the Presidential Decree, and shall
obtain approval thereof from the designator: Provided, that if the State or the head of a
local
government prepares the implementation plan directly, the consultation with the head of the
city/Gun/Gu shall be held, and
such consultation shall be deemed to be the approval of the
implementation plan.
(2) Any designator shall, when he/she intends to grant approval for an implementation plan
in accordance with section (1), consult
with the heads of the administrative agencies
concerned thereon in advance. This shall apply to the case where the State or the
head of
any local government directly draws up such implementation plan.
(3) In the case where the designator has approved an implementation plan in accordance
with the provisions of section (1), he/she
shall give a public notice thereof under the
conditions as prescribed by the Presidential Decree. The same shall apply where the
State or
the head of a local government has prepared the implementation plan directly.
(4) In the case where the designator gives a public notice of an implementation plan under
section (3), and if the implementation
plan includes a plan requiring the expropriation of
land, buildings, or fixtures on the land, rights other than the ownership, mining
license,
fishing license, or the right of using water, concerning the said land, building, or fixtures of
the land (hereinafter
referred to as the "land, etc."), the designator shall include, in the public
notice to be given, the detailed information on the
address and name of the project developer
of the district development project, the type of the project, and the land or building,
etc., to
be expropriated, and at the same time, shall notify the said information to the owners and the
right holders of the land,
etc.: Provided, that the notification may be omitted in the case
where the project developer of the district development project
has had consultation with the
owners or right holders of the land, etc., before the said project developer has filed an
application
for approval of his/her implementation plan.
(5) The project developer may apply the provisions concerning land substitution of the
Urban Development Act mutatis mutandis to
the case where land substitution is needed for
the implementation of a district development project.
(6) The provisions of sections (1) through (3) shall apply mutatis mutandis to the alteration
of the implementation plan: Provided
that this does not apply to the alteration of minor
matters prescribed by the Presidential Decree.
Article 18 (Legal Fiction of Authorization, Permission, etc.)
(1) In approving or preparing an implementation plan pursuant to the
provisions of Article
17 by the designator, State or local government, the matters that have been consulted with
the head of the
related administrative agency pursuant to the provisions of section (3)
regarding determination, permission, report, authorization,
designation, approval,
consultation, etc. (hereinafter referred to as the "authorization, permission, etc.") of the
following subsections
for the implementation plan shall be deemed as having received the
respective authorization, permission, etc., and when the implementation
plan has been
publicly announced pursuant to the provisions of Article 17 (3), the public announcement or
public notice of the
authorization, permission, etc. under the related Acts shall be deemed to
have been made:
1. Decision on the urban management plan under the provisions of Article 30 of the
National Land Planning and Utilization Act, permission
for development activities under
the provisions of Article 56 of the same Act, designation of the project developer under
the provisions
of Article 86 of the same Act, authorization for implementation plan
under the provisions of Article 88 of the same Act, and permission
for a land transaction
contract under the provisions of Article 118 of the same Act;
2. Permission under the provisions of subsections 1 and 3 of Article 34 of the Protection of
Cultural Properties Act, and the permission
for the use of the state-owned land under the
provisions of the proviso of Article 70 of the same Act;
3. Permission for diversion of mountainous districts and the report on conversion report on
diversion of mountainous districts under
Articles 14 and 15 of the Management of
Mountainous Districts Act, and permission and report on lumbering of standing trees, etc.
under the provisions of Articles 36 (1) and (4) and 45 (1) and (2) of the Creation and
Management of Forest Resources Act;
4. Permission for deforestation, etc. as prescribed in Article 14 of the Work against Land
Erosion or Collapse Act, and revocation
of the designation of the erosion control land as
prescribed in Article 20 of the same Act;
5. Permission for or consultation on the diversion of the original usage of farmland as
prescribed in Article 34 of the Farmland
Act;
6. Deleted; 7. Authorization for general waterworks business under Article 17, 49, and 50 of the Water
Supply and Waterworks Installation Act;
8. Permission for a public sewerage business as prescribed in Article 16 of the Sewerage
Act;
9. Permission for the occupation and use of public waters as prescribed in Article 5 of the
Public Waters Management Act, and authorization
or report of an implementation plan
as prescribed in Article 8 of the same Act;
10. Decision on the basic plan for reclamation as prescribed in Articles 4 and 8 of the
Public Waters Reclamation Act, the license
for the reclamation of public waters as
prescribed in Article 9 of the same Act, and the consultation and approval as prescribed
in Article 38 of the same Act;
11. Permission for the implementation of port construction work as prescribed in Article 9
(2) of the Harbor Act, and the approval
of the implementation plan of a port construction
work as prescribed in Article 10 (2) of the same Act;
12. Permission for the implementation of river construction work under Article 30 of the
River Act, the permission for the occupation
of a river under Article 33 of the same Act,
and the permission for use of river water under the same Act;
13. Permission for the implementation of a road construction work as prescribed in Article
34 of the Road Act, and the permission
for the occupation of a road as prescribed in
Article 38 of the same Act;
14. Deleted; 15. Deleted; 16. Designation of the project developer under the provisions of Article 11 of the Urban
Development Act, the authorization of establishment
of the association under Article 13
of the same Act, the authorization of implementation plan under Article 17 of the same
Act,
and the authorization of the land substitution plan under Article 29 of the same Act;
17. Approval of a project plan under the provisions of Article 16 of the Housing Act;
18. Designation of a prearranged area under the provisions of Article 3 of the Housing Site
Development Promotion Act, and the approval
of the implementation plan under the
provisions of Article 9 of the same Act;
19. Designation of an industrial complex under the provisions of Articles 6 through 8 of the
Industrial Sites and Development Act,
the approval of the implementation plan for the
development of an industrial complex under the provisions of Articles 17 through
18-2
of the same Act, and the approval of the implementation plan for the development of an
agricultural and industrial complex
under the provisions of Article 19 of the same Act;
20. Permission for the diversion of the original usage of grassland as prescribed in Article
23 of the Grassland Act;
21. Deleted; 22. Examination on publication of the maps, etc. under Article 15 (3) of the Act on Land
Survey, Waterway Survey and Cadastre;
23. Permission for the use under Article 30 of the State Properties Act;
24. Permission for implementation of small river construction work under Article 10 of the
Small River Maintenance Act and the permission
for occupation of small rivers under
Article 14 of the same Act;
25. Permission for the reburial of abandoned graves under Article 23 (1) of the Funeral
Services, etc. Act;
26. Designation of tourist destination and tourism complex pursuant to Article 52 of the
Tourism Promotion Act, the approval of development
plan pursuant to the provisions of
Article 54 of the same Act, and the permission for the implementation of development
project
pursuant to the provisions of Article 55 of the same Act;
27. Permission for and report on construction of temporary buildings pursuant to the
provisions of Article 20 of the Building Act;
28. Approval of business plans pursuant to the provisions of Article 12 of the Installation
and Utilization of Sports Facilities
Act; and
29. Permission of aggregate picking pursuant to Article 22 of the Aggregate Picking Act.
(2) The project developer who intends to
receive legal fiction of authorization, permission,
etc. pursuant to the provisions of section (1) shall submit relevant documents
prescribed by
relevant Acts as well when applying for the authorization of implementation plan.
(3) When the designator, the State or a local government intends to approve or prepare the
implementation plan which includes matters
under any of subsections of section (1), he/she
shall consult in advance with the heads of the administrative agencies concerned.
In this
case, the head of the related administrative agency shall submit his/her opinion within thirty
days from the day he/she
has been requested for consultation unless there are unavoidable
reasons.
Article 19 (Expropriation of Land, etc.)
(1) The project developer may expropriate or use such land, etc. as needed for the
implementation of the district development project:
Provided, that in the case where the
project developer of a district development project is a private developer (limited to the
case
where the rate of investments by private investors is 50/100 or more in the case of regional
development corporation pursuant
to the provisions of Article 30), he/she shall buy at least
two thirds of the land on which his/her project is to be executed, and
shall obtain the consent
of not less than half of the total number of the land owners and building owners,
respectively.
(3) Any application for an adjudication with respect to land, etc. may be filed within a
project period fixed in the implementation
plan under Article 17, notwithstanding Articles
23 (1) and 28 (1) of the Act on the Acquisition and Compensation of Land and Others
for
Public Works.
(4) Excluding the cases where there are special provisions in this Act, Act on the
Acquisition and Compensation of Land and Others
for Public Works shall apply mutatis
mutandis to the expropriation and use under the provisions of section (1).
Article 22 (Transfer, etc., of Prepared Land, etc.)
(1) In the case where the project developer of a district development project
is the State or a
local government, the project developer may transfer, under a private contract, the
ownership of such facilities
or lands prepared by the district development project to end
users, notwithstanding the provisions of the State Properties Act,
the Local Finance Act, and
other related laws and regulations. In this case, the project developer may transfer the
ownership of
part of such facilities or lands which may be transferred to the original land
owner, under the conditions as prescribed by the
Presidential Decree.
(2) Under the conditions as prescribed by the Presidential Decree, the project developer of a
district development project may receive,
from the person who desires to buy or make use of
the lands or facilities to be prepared by the said project developer of a district
development
project, the whole or part of the purchase prices in advance.
Article 23 (Installation, etc., of Infrastructures)
(1) The State and local government shall preferentially support the installation of such
infrastructures as roads, water supply
facilities, sewerage facilities, etc., for smooth
implementation of the district development project.
(2) The State and local government
may provide support such as loan of funds, etc. for
smooth implementation of a district development project.
Article 24 (Measures, etc. for Relocation)
(1) The project developer of a district development project shall formulate and implement
relocation measures for the persons who
are to lose their basis of living due to the district
development project (hereinafter referred to as the "person subject to move"),
under the
conditions as prescribed by the Act on the Acquisition and Compensation of Land and
Others for Public Works.
(2) The company that has moved into a development promotion district shall, when it hires
its employees, give priority to the persons
subject to move or the residents who live in the
development promotion district and its adjacent area, unless there exists any special
situations.
Article 25 (Mutatis Mutandis Application of This Act to Projects Executed in Places
Other Than Development Promotion Districts)
In the case where a project prescribed by the Presidential Decree, which is related to the
district development project and implemented
in an area adjacent to the development
promotion district, part of the provisions of this Act may apply mutatis mutandis under the
conditions as prescribed by the Presidential Decree.
Article 26 (Authorization for Completion of Development Project)
(1) When
the project developer of a district development project has completed the whole or
part of his/her district development project,
he/she shall obtain the authorization for
completion from the designator under the provisions of Article 16 (2) according to the
provisions as prescribed by the Presidential Decree: Provided, that if the State or the head of
a local government is the project
developer, consultation with the head of a city/Gun/Gu
shall be held, and such consultation shall be deemed to be the authorization
for completion.
(2) In the case where the designator has received an application for the authorization for
completion as prescribed in section (1),
he/she shall carry out such investigation as needed
for the authorization for completion; and if he/she deems, as a result of the
said examination,
that the district development project concerned has been completed in accordance with its
implementation plan
as prescribed in Article 17, he/she shall grant the certificate of
authorization for completion to the project developer of the
district development project, and
shall publicly announce it thereof.
(3) In the case where the project developer of a district development project has obtained the
authorization for completion under
section (1), he/she shall be regarded as having gone
through, or obtained, the completion inspection or the authorization for completion,
respectively, in regards to such matters subject to the legal fiction as prescribed in Article 18.
(4) The project developer of
a district development project shall not use such facilities or
lands as prepared by the district development project, prior to
the authorization of
completion as prescribed in section (1): Provided that this shall not apply if there is no
obstacle to the
district development project.
(1) The Minister shall evaluate the results of the implementation of the development plan
under the conditions as prescribed by
the Presidential Decree.
(2) The Minister may, when it is necessary for the evaluation pursuant to the provisions of
section (1), request the heads of the
central administrative agencies concerned and the heads
of the local governments to submit the relevant data. In this case, the
heads of the central
administrative agencies concerned and the heads of the local governments shall comply with
such request unless
there exist any special situations.
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
SECTION 1-2 Designation and Development of Specific Regions
Article 26-3 (Designation and Public Announcement of Specific Region)
(1) Where deemed necessary for the promotion of the balanced
development of the regions,
the Minister may, directly or upon request of the head of the central administrative agency
or Mayor/Do
governor, designate areas applicable to any of the following subsections as
specific regions: 1. Regions where the foundation of a new local economy needs to be built due to the
relocation or decline of major industries and
infrastructures or the exhaustion of
resources;
2. Regions where installation of infrastructure, development or rearrangement linked with
surrounding regions are needed for the
preservation and maintenance of historical and
cultural heritages and development of tourism;
3. Regions that need permanent restoration and maintenance against natural and industrial
disasters, etc.; and
4. Regions that need intensive development for the special economic and social objectives
of the State.
(2) Matters necessary for the scale of the specific region, etc. pursuant to the provisions of
section (1) shall be prescribed by
the Presidential Decree.
(3) When the Minister intends to designate any specific region, he/she shall consult with the
heads of
the central administrative agencies concerned and the relevant Metropolitan City
Mayor or the Do governor in advance, and the same
shall apply where he/she alters the
designated specific regions: Provided, that the same shall not apply to the cases of altering
minor matters prescribed by the Presidential Decree such as changing the location in which
a development project is to be undertaken
due to topography, etc.
(4) When the Minister designates any specific region or alters any designated specific region
in accordance with the provisions
of section (1), he/she shall publish the matters stated in
the following subsections in the Official Gazette:
1. The name and boundary of the specific region;
2. The basic goal of development;
3. The period of designation; and
4. Matters prescribed by the Presidential Decree, including how to peruse relevant books,
etc.
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
Article 26-4 (Establishment of Specific Region Development Plan)
(1)
The Minister shall establish a specific region development plan according to the
conditions prescribed by the Presidential Decree
for the specific region designated and
publicly announced under the provisions of Article 26-3 (4): Provided, that the specific
regional development plan for the region designated by request of the Metropolitan City
Mayor/Do governor shall be formulated by
the relevant Metropolitan City Mayor or the Do
governor and approved by the Minister; and in the event that the specific region
is
designated over two or more Metropolitan Cities/Dos, the specific region development plan
shall be formulated jointly by the
related Metropolitan City Mayors and the Do governors.
(2) When the Minister has established a specific region development plan or has received
request for approval of a specific region
development plan from the Metropolitan City
Mayor/Do governor, he/she shall make a final decision on such plan through consultation
with the heads of the relevant central administrative agencies and the relevant Metropolitan
City Mayor or the Do governor, and
the same shall apply to the case of altering the specific
region development plan: Provided, that the same shall not apply to the
cases of altering
minor matters prescribed by the Presidential Decree such as changing the location in which
a development project
is to be undertaken due to topography, etc.
(3) When the Minister, the Metropolitan City Mayor or the Do governor intends to establish
a specific region development plan under
the provisions of section (1), he/she shall listen to
the opinions of residents and relevant experts under the conditions as prescribed
by the
Presidential Decree and reflect their opinions, if deemed appropriate, in such plan.
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
Article 26-5 (Designation of Project Developer)
(1) A person who intends to implement a regional development project in any specific
region (hereinafter referred to as "specific
region development project") shall be designated
as a project developer by the Metropolitan City Mayor or the Do governor: Provided,
that
the same shall not apply to a case where the State or any local government implements such
regional development project.
(2) The provisions of Article 16 shall apply mutatis mutandis to the designation of a project
developer pursuant to the provisions
of section (1). In this case, the terms "development
promotion district", "regional development project" and "the head of city/Gun/Gu"
shall be
regarded as the "specific region", "specific region development project" and "Metropolitan
City Mayor/Do governor" respectively.
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
Article 26-6 (Approval of Implementation Plan)
(1) The project developer shall draw up an implementation plan and obtain approval thereof
from the Metropolitan City Mayor or the
Do governor under the conditions as prescribed by
the Presidential Decree, and the same shall apply to the case where he/she intends
to alter
the approved implementation plan: Provided, that in the event that the State or the head of a
local government draws up
an implementation plan, he/she shall consult with the
Metropolitan City Mayor or the Do governor thereon, and if such consultations
are made,
approval for such implementation plan shall be deemed to be obtained.
(2) When the Metropolitan City Mayor or the Do
governor intends to grant approval for an
implementation plan in accordance with section (1), he/she shall consult with the heads
of
administrative agencies concerned thereon in advance. The same shall apply to the case
where the State or the head of a local
government draws up an implementation plan.
(3) When the Metropolitan City Mayor or the Do governor has granted approval for an
implementation plan in accordance with section (1), he/she shall give a public notice thereof
under the conditions as prescribed
by the Presidential Decree. The same shall apply to the
case where the State or the head of a local government directly draws up
an implementation
plan.
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
Article 26-7 (Mutatis Mutandis Application to Specific Region Development
Project)
The provisions of Articles 9 (3), 11-2, 15, 18 through 26-2 shall apply mutatis mutandis to
the specific region development
project. In this case, the term "development promotion
district,", "development plan", and "district development project" shall
be deemed as
"specific region", "specific region development plan", and "specific region development
project" respectively, and
the term "head of city/Gun/Gu" in the proviso of Article 26 (1)
shall be deemed as "Metropolitan City Mayor or the Do governor".
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
SECTION 2 Implementation of Regional Development Projects by Private
Developers
Article 27 (Establishment of Plan for Inducement of Private Capital
(1) Where it is deemed necessary to induce private capital for the efficient implementation
of the following regional development
projects, the heads of the central administrative
agencies, the Special Metropolitan City Mayor, the Metropolitan City Mayor, the
Do
governor, the Special Self-Governing Do governor (hereinafter referred to as the "Mayor/Do
governor") or the head of the city/Gun/Gu
shall prepare an inducement plan of private
capital:
1. Wide-area development project pursuant to the wide-area development plan established
in accordance with the provisions of Article
5;
2. District development project pursuant to the development plan established in accordance
with the provisions of Article 14;
3. Specific region development project pursuant to the specific region development plan
established in accordance with the provisions
of Article 26-4; and
4. Other regional development projects prescribed by the Presidential Decree.
(2) The inducement plan of private capital prepared
in accordance with the provisions of
section (1) shall include all of the following matters:
1. The scope of the private capital inducement project, the implementation methods and
conditions thereof;
2. The qualifications of the project developer of the privately-invested regional
development project and the criteria for the selection
of the said project developer;
3. Matters concerning support for the private capital inducement project; and
4. Other matters prescribed by the Presidential Decree.
(3) When having prepared an inducement plan of private capital in accordance
with section
(1), the head of the central administrative agency shall decide on such plan after consulting
with the heads of the
administrative agencies concerned; and the Mayor/Do governor or the
head of city/gun shall decide on such plan through the deliberation
by the local urban
planning committee under the National Land Planning and Development Act after
consulting with the heads of the
administrative agencies concerned: Provided, that in the
event that an inducement plan of private capital is drawn up for development
projects that
are included in the wide-area development plan pursuant to the provisions of Article 5, the
development plan pursuant
to the provisions of Article 14 and the specific region
development plan pursuant to the provisions of Article 26-4, consultations
with the heads of
the administrative agencies concerned may be omitted.
(4) In the event that the inducement plan of private capital has been decided on under the
provisions of section (3), the head of
the central administrative agency, the Mayor/Do
governor, or the head of the city/Gun/Gu shall give a public notice thereof, and
hold an
explanatory meeting thereon under the conditions as prescribed by the Presidential Decree.
Article 28 (Conclusion of Contracts)
The heads of the central administrative agencies, the Mayor/Do governor or the head of the
city/Gun/Gu shall make a contract with
the person who intends to participate in a private
capital inducement project over the following subject matters:
1. Matters concerning the implementation of the project;
2. Matters concerning the alterations of the project plan;
3. Matters concerning the follow-up management of facilities established by the project;
4. Matters concerning the distribution of the proceeds from the project; and
5. Other matters prescribed by the Presidential Decree.
Article 29 (Implementation of Project)
The matters, which are not separately provided for in this Act in respect to the private
capital inducement project, shall be in
accordance with the conditions prescribed by the
respective Act related to the relevant project.
Article 30 (Regional Development Corporation)
(1) Persons applicable to subsections 1 through 3 of Article 16 (1) and private investors may
establish a corporation aiming to
implement regional development projects (hereinafter
referred to as a "regional development corporation") through joint investment.
(2) The persons who intends to establish a regional development corporation shall jointly
prepare the articles of incorporation
that include the following matters:
1. The purpose of the project;
2. Matters concerning the representative of the corporation;
3. The period of existence of the corporation, if any;
4. Matters concerning the ratio of investments and distribution of earnings; and
5. Other matters prescribed by the Presidential Decree.
(3) Where a person falling under Article 16 (1) 1 through 3 makes investment
pursuant to
the provisions of section (1), he/she may invest the following properties in kind. In this case,
the prices of the
properties invested in kind shall be calculated under the conditions as
prescribed by the Presidential Decree:
1. The miscellaneous properties pursuant to the provisions of Article 6 (3) of the State
Properties Act and Article 5 (4) of the
Public Property and Commodity Management
Act;
2. Movables belonging to the miscellaneous properties referred to in subsection 1, pursuant
to the provisions of Article 2 (1) of
the Commodity Management Act and Article 48 of
the Public Property and Commodity Management Act; and
3. The land created by regional development project.
(4) For the matters which are not provided for in this Act in respect to the
regional
development corporation, the provisions concerning the stock corporation of the
Commercial Act shall apply mutatis mutandis:
Provided, that for a corporation established
by the joint investment of local public enterprises and private investors, the provisions
of the
Local Public Enterprises Act shall apply mutatis mutandis.
Article 31 (Support for Private Capital Inducement Projects)
(1) The heads of central administrative agencies, the Mayor/Do governor
or the head of the
city/Gun/Gu may take the following supportive measures for a private developer
implementing private capital
inducement projects after consultation with the heads of the
administrative agencies concerned in accordance with the inducement
plan of private capital
pursuant to the provisions of Article 27: 1. Permission for occupation of public facilities;
2. Vicarious execution of affairs for the purchase of land, facilities, etc. required for the
project;
3. Granting the right of developing neighboring land within the scope of guaranteeing
profitability of the private developer; and
4. Other matters prescribed by the Presidential Decree.
(2) Where there is a separate person having authority to grant permission
for occupation of
public facilities pursuant to the provisions of section (1) 1, the heads of the central
administrative agencies,
the Mayor/Do governor or the head of the city/Gun/Gu may request
occupation permission to the person having authority to grant permission,
and the requested
person having authority to grant permission shall comply with such request unless there
exists any special reason
not to.
(2) The private developer, who is in charge of the management of the public facilities as
prescribed in section (1), may collect
the price for utilization or use of such facilities
(hereinafter referred to as " user fee ") from those who use or utilize the
public facilities for
a certain period of time.
(3) The user fee pursuant to the provisions of section (2), the period for collection thereof,
the conditions for the collection,
and other necessary matters shall be determined through
consultation between the private developer concerned and the heads of the
central
administrative agencies, the Mayor/Do governor or the head of the city/Gun/Gu.
Article 33 (Prohibition, etc. of Limitation on Use of Public Facilities)
(1) A private developer in charge of the management of
the public facilities in accordance
with the provisions of Article 32 shall not prohibit the general public from using or utilizing
the public facilities unless there exist special situations such as natural disasters or similar
calamities.
(2) In the case where a private developer in charge of the management of the public facilities,
has not observed what has been agreed
upon through the consultation as prescribed in
Article 32(3), or has violated the provisions of section (1), the heads of the central
administrative agencies, the Mayor/Do governor or the head of the city/Gun/Gu shall,
without delay, order the private developer
to correct the situation.
(3) In the case where a private developer does not comply with the corrective orders
pursuant to the provisions of section (2),
the heads of the central administrative agencies, the
Mayor/Do governor or the head of the city/Gun/Gu may revoke the management
right of the
private developer.
SECTION 3 Deleted. 1. A region where the implementation of a regional development project is intended in
connection with the relocation policies of
public institutions pursuant to the provisions
of Article 18 of the Special Act on Balanced National Development (hereinafter referred
to as the "public institutions") and the enterprises, universities and colleges pursuant to
the provisions of Article 19 of the
same Act; or
2. A region where it is necessary to execute simultaneously or gradually by mutually
connecting the project for the creation of industrial,
distribution, educational, research,
cultural, tourism, residential, business complexes, etc. and the project for the installation
of infrastructures.
(2) A person among the heads city/Gun/Gu and persons falling under Article 38-4 (1) 2
through 5, who intends to participate in the
development project executed within the
regional comprehensive development district (hereinafter referred to as the " comprehensive
regional development project") may propose the designation of regional comprehensive
development district to the Minister according
to the conditions as prescribed by the
Presidential Decree.
(5) When the Minister has designated a regional comprehensive development district
pursuant to the provisions of section (1), he/she
shall publicly announce the following
matters: 1. The name, location and area of the regional comprehensive development district;
2. The purpose and period of the designation of the regional comprehensive development
district;
3. The outline and implementation method of the regional comprehensive development
project; and
4. Other matters prescribed by the Presidential Decree.
(6) The provisions of sections (3) through (5) shall apply mutatis mutandis
to the alteration
of the designation of the regional comprehensive development district: Provided that this
does not apply to the
alteration of minor matters prescribed by the Presidential Decree.
(7) The provisions of Articles 11-2 and 15 shall apply mutatis
mutandis to the regional
comprehensive development district. In this case, the terms "development promotion
district" and "development
project" in Article 11-2 shall be deemed as "regional
comprehensive development district" and "regional comprehensive development
project"
respectively, and the terms "public announcement of development plan" and the "region
subject to development project"
in Article 15 shall be deemed as "public announcement of
regional comprehensive development district" and "regional comprehensive
development
district" respectively.
(8) The Minister may revoke the designation of the regional comprehensive development
district after the designation in the following
cases:
1. Where an approval of the development plan for all or part of the regional comprehensive
development district pursuant to the provisions
of Article 38-3 has not been applied for
within three years from the date of public announcement of the designation of the
regional
comprehensive development district pursuant to the provisions of section (5); or
2. Where an approval of the implementation plan for all or part of the regional
comprehensive development district pursuant to the
provisions of Article 38-5 has not
been applied within three years from the date of the public announcement of the
approval of
the development plan for the regional comprehensive development district
pursuant to the provisions of Article 38-3.
(9) The specific standards for designation and procedures for revocation of the regional
comprehensive development district, and
other necessary matters shall be prescribed by the
Presidential Decree.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-3 (Formulation of Development Plan for Regional Comprehensive
Development District)
(1) Where a regional comprehensive development district has been designated and publicly
announced, the head of the city/Gun/Gu
(referring to the Mayor/Do governor where the
regional comprehensive development district has been designated extending over two
or
more cities/Guns/Gus) who has jurisdiction over the regional comprehensive development
district shall formulate a development
plan for the regional comprehensive development
district (hereinafter referred to as the "regional comprehensive development plan")
as
prescribed by the Presidential Decree and obtain approval from the Minister: Provided, that
where the Minister recognizes it
necessary, the Minister may directly formulate a regional
comprehensive development plan in or designate a person and have him/her
formulate such
plan as prescribed by the Presidential Decree. 1. The name, location and area of the regional comprehensive development district;
2. The outline and purpose of the regional development project and the contents of
connection;
3. The project developer, implementation method and implementation time of the regional
comprehensive development project;
4. The outline of the land utilization plan and the plan for the installation of infrastructure;
5. The plan for raising financial resources;
6. The details of land, etc. to be expropriated or used; and
7. Other matters prescribed by the Presidential Decree.
(3) When the Minister intends to approve or directly formulate a regional
comprehensive
development plan, he/she shall listen to the opinions of the relevant Mayor/Do governor and
the head of city/Gun/Gu
in advance and consult with the central administrative agency
concerned.
(5) The provisions of sections (1), (3) and (4) shall apply mutatis mutandis where intending
to alter the regional comprehensive
development: Provided that this does not apply to the
alteration of minor matters prescribed by the Presidential Decree.
(6) When
a regional comprehensive development plan has been approved and publicly
announced pursuant to the provisions of section (4), it
shall be deemed that there have been
designation, approval and public announcement of the following subsections: 1. The formulation of the urban master plan and approval of alteration thereof pursuant to
the provisions of Articles 18 and 22 of
the National Land Planning and Utilization Act;
2. The designation of an urban development zone pursuant to the provisions of Article 3 of
the Urban Development Act and the formulation
of an urban development project plan
pursuant to the provisions of Article 4 of the same Act;
3. The designation of a prearranged area pursuant to the provisions of Article 3 of the
Housing Site Development Promotion Act and
the approval of a housing site
development plan pursuant to the provisions of Article 8 of the same Act;
4. The designation of a national industrial complex, general industrial complex and up-to-
date city industrial complex pursuant
to the provisions of Articles 6 through 7-2 of the
Industrial Sites and Development Act;
5. The designation of a tourist destination and tourism complex pursuant to the provisions
of Article 52 of the Tourism Promotion
Act; and
6. The designation of a distribution complex pursuant to the provisions of Article 5 of the
Promotion of Distribution Complex Development
Act.
(7) Detailed matters concerning the formulation, etc. of a regional comprehensive
development plan shall be prescribed by
the Presidential Decree.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-4 (Project Developer of Regional
Comprehensive Development Project)
(1) A person applicable to any of the following subsections may execute the regional
comprehensive
development plan:
1. The State or local government;
2. A government-invested institution prescribed by the Presidential Decree;
3. A local public enterprise;
4. A regional development corporation; and
5. A person prescribed by the Presidential Decree among public institutions or private
developers, etc.
(2) For the regional comprehensive development project (excluding the cases where the
State or local government executes directly),
the head of the competent city/Gun/Gu
(referring to the Mayor/Do governor where the regional comprehensive development district
has been designated over two or more cities/Guns/Gus) shall designate a project developer
under the conditions as prescribed by
the Presidential Decree. In this case, where it is
recognized as necessary for raising funds required for the regional comprehensive
development project or the connection, etc. of two or more separate projects, multiple
project developers of two or more may be
designated.
(3) Where the Mayor/Do governor or the head of the city/Gun/Gu intends to designate a
project developer pursuant to
the provisions of section (2), he/she shall designate such
developer in accordance with the standards referred to in the subsections
of Article 16 (2).
(4) The provisions of Article 16 (3) shall apply mutatis mutandis to the designation of a
project developer
of the regional comprehensive development project. In this case, the term
"district development project" shall be deemed as the
"regional comprehensive development
project".
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-5 (Approval of Implementation Plan)
(1) The project developer shall formulate an implementation plan as prescribed by the
Presidential Decree and obtain approval from
the Mayor/Do governor (referring to the
Minister where the Minister has directly formulated the regional comprehensive
development
plan or has designated a person to formulate it in accordance with the
provision of Article 38-3 (1), and the same shall apply hereinafter
in this Article): Provided,
that where the State or the head of a local government directly formulates an
implementation plan,
he/she shall consult with the head of the city/Gun/Gu, which shall be
deemed as the approval of the implementation plan.
(2) Where the Mayor/Do governor has approved the implementation plan referred to in
section (1), he/she shall publicly announce
the contents thereof as prescribed by the
Presidential Decree. The same shall apply where the State or the head of a local government
has directly formulated the implementation plan.
(3) The provisions of Article 18 shall apply mutatis mutandis to the approval and public
announcement of the implementation plan
of the regional comprehensive development
project.
(4) The provisions of sections (1) through (3) shall apply mutatis mutandis to the alteration
of the implementation plan: Provided
that this does not apply to the alteration of minor
matters prescribed by the Presidential Decree.
(5) Where there is a need for land substitution related to the implementation of a regional
comprehensive development project, the
project developer may apply the provisions
regarding land substitution in the Urban Development Act by applying mutatis mutandis.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-6 (Special Cases Concerning Implementation of Regional Comprehensive
Development Project)
(1) Where necessary for the efficient implementation of the regional comprehensive
development project, the project developer may
execute all or part of the regional
comprehensive development project, which has been included in the regional
comprehensive development
plan formulated pursuant to the provisions of Article 38-3,
according to the conditions as prescribed by each Act referred to in
the provisions of section
(6) 2 through 6 of the same Article, notwithstanding the provisions of this Act.
(2) The regional comprehensive
development project may be executed step-by-step in
accordance with the scale and contents of each development project.
(3) Where
several regional development projects are included in the regional comprehensive
development plan, the project developer may reinvest
part of the development gains from a
specific regional development project in another regional development project within the
regional
comprehensive development district according to the conditions as prescribed by
the Presidential Decree.
(4) In order to have the reinvestment pursuant to the provisions of section (3) executed
without setback, the project developer
shall take necessary measures such as classified
accounting of the accrued development gains, etc.
[This Article Newly Inserted
by Act No. 7695, Nov. 8, 2005]
Article 38-7 (Regional Comprehensive Development Agreement)
(1) In order to efficiently promote
the regional comprehensive development project, the
Mayor/Do governor or the head of the city/Gun/Gu may enter an agreement on the
implementation of regional comprehensive development project (hereinafter referred to as
the "regional comprehensive development
agreement") with the project developer according
to the conditions as prescribed by the Presidential Decree and execute it.
(2)
Where the Mayor/Do governor or the head of the city/Gun/Gu recognizes it necessary
for the efficient implementation of the regional
comprehensive development plan, he/she
may take partial charge of or execute jointly the development project in accordance with
the
regional comprehensive development agreement, or establish a regional development
corporation.
(3) The contents of the regional comprehensive development agreement and other necessary
matters shall be prescribed by the Presidential
Decree.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-8 (Assistance to Regional Comprehensive Development
Project Inviting
Public Institutions)
(1) The head of the central administrative agency, the Mayor/Do governor or the head of the
city/Gun/Gu may formulate measures for
financial or administrative assistance to the
regional comprehensive development project for relocation of the public institutions
to the
local provinces (hereinafter referred to as the "public institutions invitation project").
(2) The State or local government
may assist in the construction expenses, etc. of
infrastructure and public facilities when necessary for assisting the public institutions
invitation project.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-9 (Assistance, etc. with Disposal of Former Real Estate of
Public Institutions)
(1) In order to facilitate the relocation of public institutions to the local provinces, the State
or local
government may assist in the business of disposal, etc. of the former land and
buildings (hereinafter referred to as the "former
real estate") of the public institutions
relocating to the regional comprehensive development district.
(2) The Minister may request
the government-invested institutions prescribed by the
Presidential Decree to vicariously execute the sales of former real estate
or to purchase it
directly.
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
Article 38-10 (Mutatis Mutandis Application to Regional Comprehensive
Development
Project)
The provisions of Articles 19 through 26 shall apply mutatis mutandis to the regional
comprehensive development project. In this
case, the terms "development promotion
district" and "district development project" shall be deemed as the "regional comprehensive
development district" and "regional comprehensive development project" respectively, and
the term "implementation plan" in Article
19 (2) and (3) shall be deemed as the "regional
comprehensive development plan".
[This Article Newly Inserted by Act No. 7695, Nov. 8, 2005]
CHAPTER IV FOSTERAGE OF LOCAL SMALL AND MEDIUM
ENTERPRISES
SECTION 1 Fostering Plan for Small and Medium Enterprises per City/Do
Article 39 (Basic Guidelines)
(1) Based on the government policies for the upcoming year concerning small and medium
enterprises, which the government submitted
to the National Assembly in accordance with
the provisions of Article 20 of the Framework Act on Small and Medium Enterprises, the
Administrator of the Small and Medium Business Administration shall prepare the basic
guidelines for fostering local small and
medium enterprises for the upcoming year
(hereinafter referred to as the "basic guidelines").
(2) The Administrator of the Small and Medium Business Administration shall instruct the
basic guidelines prepared pursuant to the
provisions of section (1) to the Mayor/Do governor
by October 31 every year.
(1) The Mayor/Do governor, who intends to foster the small and medium enterprises located
in his/her jurisdictional area in accordance
with the basic guidelines pursuant to the
provisions of Article 39, shall prepare a fostering plan for the upcoming year for the
small
and medium enterprises located within his/her jurisdictional area (hereinafter referred to as
the "fostering plan") and submit
it first to the Minister of Public Administration and Security
and then to the Administrator of the Small and Medium Business Administration
by
December 31 every year.
(2) The fostering plan prepared by the Mayor/Do governor shall include the following
subject matters according to the conditions
as prescribed by the Presidential Decree:
1. Matters concerning the collectivization of small and medium enterprises by regions or
business types through the relocation of
the enterprises or new establishment of factories
and matters concerning the smooth supply of business sites;
2. Matters concerning the demand and supply of technologies and technical manpower;
3. Matters concerning the smooth facility investment of local small and medium enterprises
and formation of the conditions for stabilized
management thereof;
4. Matters concerning the promotion of efficiency of local small and medium enterprises
operating businesses which support the manufacturing
industry;
5. Matters concerning the sales of products and services manufactured or produced by the
local small and medium enterprises;
6. Matters concerning the securing and operation of the local financial funds for the
promotion of the fostering plan;
7. Matters requested by the Administrator of the Small and Medium Business
Administration per City/Do in connection to subsections
1 through 5; and
8. Other matters prescribed by the Presidential Decree.
Article 41 (Survey of Current Conditions)
(1) Prior to the establishment of the fostering plan, the Mayor/Do governor shall identify the
current conditions and operational
situation of the small and medium enterprises located
within his/her jurisdictional sphere such as the number of the enterprises
and the number of
the employees of the enterprises per business type and scale of the enterprise via
cooperation with relevant
agencies.
(2) For the purpose of identifying the current conditions and operational situation of the
small and medium enterprises located
within his/her jurisdictional sphere pursuant to the
provisions of section (1), the Mayor/Do governor may request the heads of the
specialized
local administrative agencies such as the Regional Tax Office, the Regional Labor
Administration Office, the Regional
Environmental Office, etc. in charge of the affairs
related to the business activities within the jurisdictional area, or the heads
of the agencies or
other organizations concerned to forward necessary materials or to allow the perusal of the
necessary materials,
in which the requested heads of the specialized local administrative
agencies or other organizations concerned shall comply with
unless there exist any special
situations not to.
(3) The Mayor/Do governor shall not use the materials acquired pursuant to the provisions
of section (2) for any purpose other than
for the establishment of the fostering plan pursuant
to the provisions of Article 40.
Article 42 (Adjustment of Fostering Plans)
(1) In the event that the Administrator of the Small and Medium Business Administration
has discovered, as a result of his/her examination
of the support plans submitted by the
Mayor/Do governor, that the said fostering plans conflicts with the government's fostering
policies for small and medium enterprises, or there is overlapping or conflicts between the
City/Do's fostering plans, the said
Administrator may request the Mayor/Do governor to
adjust the said fostering plans.
(2) The Mayor/Do governor who has been requested for the adjustment of the fostering plans
referred to in section (1) shall comply
with the request of the Administrator of the Small and
Medium Business Administration unless there exist any special situations
not to.
Article 43 (Promotion of Support Plans)
Where the head of a local government deems it necessary for the efficient promotion of the
fostering plan, he/she may take the following
measures:
1. Establishment of funds related to fostering of local small and medium enterprises
pursuant to the provisions of the Local Autonomy
Act or utilization of the said funds;
and
2. Suspension of issuance of municipal bonds and collection of local taxes, according to the
conditions as prescribed by the Local
Finance Act and the Local Tax Act.
Article 44 (Support for Fostering Plans)
(1) The government may provide administrative assistances in order for the Mayor/Do
governor to promote the fostering plan without
any setback, and the Administrator of the
Small and Medium Business Administration may provide support in raising the funds
pursuant
to the provisions of subsection 1 of Article 43 according to the conditions as
prescribed by the Presidential Decree.
Article 45 (Analysis of Performance of Fostering Plan)
(1) The Mayor/Do governor shall analyze the performance of the promotion
of the fostering
plan each year and submit the results of the analysis to the Administrator of the Small and
Medium Business Administration
by the end of February of the upcoming year.
(2) The Administrator of the Small and Medium Business Administration shall reflect the
results of the analysis of the performance
of the promotion of the fostering plan submitted
by the Mayor/Do governor pursuant to the provisions of section (1) in the basic
guidelines.
SECTION 2 Creation of Business Environment for Small and Medium
Enterprises per Region
Article 46 (Support for Establishment of Factories)
(1) In order to provide support for the small and medium enterprises to be able
to establish
factories in each area without difficulties, the Administrator of the Small and Medium
Business Administration may
have the Small Business Corporation pursuant to the
Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their
Products Act (hereinafter referred to as the "Small Business Corporation") operate any of
the following businesses: 1. Establishment or acquisition of factories; or transfer or long-term lease of factories in
possession to local small and medium
enterprise operators;
2. Establishment of factories on behalf of the local small and medium enterprises who
desire to establish factories;
3. Collection or supply of information related to the relocation of local small and medium
enterprises, and counseling thereof;
4. Linking local small and medium enterprise who desire to relocate their businesses with
local governments desiring to invite local
small and medium enterprises; and
5. Other businesses prescribed by the Presidential Decree.
(2) In the event that the Small Business Corporation transfers the ownership
of its factory
pursuant to the provisions of section (1), it may receive the price for the transfer of
ownership of the factory
by long-term installment payments within the period as prescribed
by the Presidential Decree.
(3) The Small Business Corporation shall make efforts to lower the expenses ensuing from
the establishment of factories for the
local small and medium enterprises through methods
such as development of standard types of factory per business type, region and
business
scale, etc. in conducting businesses pursuant to the provisions of section (1).
Article 47 (Local Cooperative Technology
Improvement)
(1) Local small and medium enterprises and the institutions applicable to any of the
following subsections may jointly
or cooperatively conduct activities for technology
improvement (hereinafter referred to as the "activities for local cooperative
technology
improvement"):
1. Local governments;
2. National and public research institutions;
3. Universities, colleges or junior colleges prescribed in the Higher Education Act;
4. Specific research institutions pursuant to the Support for Specific Research Institutions
Act; and
5. Other institutions prescribed by the Ordinance of the Ministry of Knowledge Economy.
(2) In order to provide support for the activities
of local cooperative technology
improvement, the Administrator of the Small and Medium Business Administration may
establish the
local cooperative technology improvement support center in a national or
public research institution in the field of manufacturing
industries prescribed by the
Presidential Decree.
1. Cooperation with the relevant local government in order to facilitate the activities for
local cooperative technology improvement;
2. Finding out and analyzing the technical difficulties in the manufacturing sites of the
local small and medium enterprises;
3. Finding out and analyzing the capabilities of the institutions applicable to any of the
subsections of section (1) of support
for the activities for local cooperative technology
improvement;
4. Linking the local small and medium enterprises which desire to conduct activities for
local cooperative technology improvement
with the institutions applicable to any of the
subsections of section (1); and
5. Analysis of the current situation of the activities for local cooperative technology
improvement conducted by local small and
medium enterprises.
(4) The Administrator of the Small and Medium Business Administration may designate an
institution which has
been highly active in developing technologies through the activities for
local cooperative technology improvement (hereinafter referred
to as the "model
institution") among the institutions applicable to any of the subsections of section (1), and
may provide support
for all or part of the expenses required for the activities for local
cooperative technology improvement conducted by the model
institution.
Article 48 (Development and Local Settlement of Manpower)
(1) Where the Small Business Corporation or the Korea Industrial Complexes
Corporation
pursuant to the Industrial Cluster Development and Factory Establishment Act intends to
carry out a vocational training
program for the employees of the local small and medium
enterprises or the persons who desire to work for the local small and medium
enterprises,
the State or the local government may provide the following support: 1. Paid transfer of the ownership or long-term lease of the national or public land needed
for the establishment of the training
facilities; and
2. Other matters prescribed by the Presidential Decree.
(2) In the event that the State or local government transfers or leases the
national or public
land to the Small Business Corporation or the Korea Industrial Complexes Corporation,
pursuant to the provisions
of section (1) 1, it may do so through a private contract,
notwithstanding the provisions of the State Properties Act, the Local
Finance Act or other
related laws and regulations.
(3) In order to help the employees of local small and medium enterprises to comfortably
settle down, the Government may provide
long-term low interest rate housing loan to
persons who satisfy the conditions prescribed by the Presidential Decree among those
who
desire to work for a local small or medium enterprise and settle down in the area where the
said local small or medium enterprise
is located.
(4) The government may designate the local small and medium enterprises which satisfy the
conditions prescribed by
the Presidential Decree among those which intend to continuously
develop technologies through activities for local cooperative technology
improvement in
collaboration with the model institution pursuant to the provisions of Article 47 as a
designated company pursuant
to the provisions of Article 36 of the Military Service Act.
Article 49 (Administrative Support for Local Small and Medium Enterprises)
The Administrator of the Small and Medium Business Administration
may provide support
for the local branches of the agencies conducting activities of supporting small and medium
enterprises prescribed
by the Presidential Decree to be located in a certain place for each
region to effectively conduct the local supporting affairs
for the local small and medium
enterprises.
(1) The Administrator of the Small and Medium Business Administration may designate an
industrial complex located within the City/Do
where the current condition of the industrial
cluster and the consequent performance of the industrial production are substantially
below
the standards determined by the basic activation plan for industrial cluster development
pursuant to the provisions of Article
3 of the Industrial Cluster Development and Factory
Establishment as an area for special support for local small and medium enterprises.
(2) When the Administrator of the Small and Medium Business Administration has
designated an area for special support for local
small and medium enterprises pursuant to the
provisions of section (1), he/she shall publicly announce it thereof, and the period
of the
designation shall be five years from the date of public announcement thereof.
(3) In establishing and implementing the fostering plan and promotion measures for creating
business environments for small and
medium enterprises for each region, the Small and
Medium Business Administration and the Mayor/Do governor shall give preferential
consideration to the development of local small and medium enterprises located within the
area for special support for local small
and medium enterprises.
CHAPTER V SUPPLEMENTARY PROVISIONS
Article 51 (Basic Survey, Access to Land, etc.)
(1) The State, a local government or the project developer of a regional development project
may conduct the basic surveys for the
establishment and implementation of a regional
development plan according to the conditions as prescribed by the Presidential Decree.
(2) Where it is necessary for conducting the basic surveys pursuant to the provisions of
section (1), the person concerned may
have access to the land occupied by other persons, or
temporarily use the other's land as a yard for storing materials or as a temporary
road, or
alter or remove bamboos and trees, earth and rocks, and other obstacles in the other's land.
(3) Any person who intends
to gain access to the land of another person pursuant to the
provisions of section (2) shall obtain permission thereof from the
head of the city/Gun/Gu
(excluding the case where the State or the head of a local government is the project
developer) and notify
the owner, occupant or manager of such land of the date and place of
his/her access to the land not later than three days prior
to the date on which he/she intends
to enter the land.
(6) Any person who intends to temporarily use the land, or alter or remove obstacles
pursuant to the provisions of section (4) or
(5) shall notify the owner, occupant or manager
of the relevant land of such fact not later than three days prior to the date on
which he/she
intends to use the land, or alter or remove obstacles.
(7) No person shall enter the land of another person, which is surrounded by a wall or fence
before sunrise or after sunset without
consent of the occupant of the relevant land.
(8) The occupant of the land shall not interfere with or reject any activity performed by the
project developer pursuant to the
provisions of section (2) without any justifiable reasons.
(9) Any person who intends to perform the activities pursuant to the provisions of section
(2) shall carry a voucher indicating
his/her authority and a permit and show them to the
relevant persons, and necessary matters concerning the voucher and the permit
shall be
prescribed by the Minister.
Article 51-2 (Compensation for Loss)
(1) If any person suffers loss incurred by the activity pursuant to the provisions of Article 51
(2), the project developer shall
compensate him/her for such loss.
(2) With respect to the compensation for loss referred to in section (1), the person liable to
compensate for such loss and the person who suffers such loss shall consult thereon.
(3) In the event that the person liable to
compensate for the loss and the person who suffers
such loss fail to reach an agreement as a result of the consultations referred
to in section (2)
or are unable to consult thereon, they may file an application for adjudication to the
competent Land Expropriation
Committee.
(4) The provisions of Articles 83 through 87 of the Act on the Acquisition of Land, etc. for
Act on the Acquisition and Compensation
of Land and Others for Public Works shall apply
mutatis mutandis to any adjudication by the competent Land Expropriation Committee
pursuant to the provisions of section (3).
[This Article Newly Inserted by Act No. 6641, Jan. 26, 2002]
Article 52 (Report and Inspection)
(1) Where it is deemed necessary for the efficient implementation such as evaluation of the
regional development project, the relevant
head of the central administrative agency, the
Mayor/Do governor or the head of the city/Gun/Gu may, in accordance with the procedures
prescribed by the Presidential Decree, order the project developer of the regional
development project to make a report on the
records of progress of the project, details of
project cost injection, future plan, etc. or to submit materials, or may have a public
official
under his/her jurisdiction inspect the business affairs concerning the regional development
project.
(2) The public official who intends to inspect the business affairs concerning a regional
development project pursuant to the provisions
of section (1) shall notify in advance the
inspection plan, and carry with himself/herself a voucher indicating his/her authority,
and
show it to the persons concerned.
(1) Where the project developer of a regional development project applies to any of the
following subsections, the Minister, the
Mayor/Do governor or the head of a city/Gun/Gu
may revoke or order suspension of validity thereof, suspend the construction work
or take
other necessary dispositions: 1. Where the project developer has obtained such authorization, approval or designation
pursuant to this Act by fraudulent or otherwise
illegal means;
2. Where the regional development project concerned is impossible to be continuously
executed due to changes in circumstances;
3. Where the project developer has violated an order pursuant to the provisions of Article
33 (2); or
4. Where the project developer has obstructed or refused the activities pursuant to the
provisions of Article 52 (1) without justifiable
reasons.
(2) Deleted.
(3) When the Minister, the Mayor/Do governor or the head of a city/Gun/Gu has taken
measures or dispositions pursuant to the provisions
of section (1), he/she shall publicly
announce thereof according to the conditions as prescribed by the Presidential Decree.