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ENFORCEMENT DECREE OF SEOUL METROPOLITAN AREA READJUSTMENT PLANNING ACT

READJUSTMENT PLANNING ACT

[Enforcement Jul. 31, 2009] [Presidential Decree No. 21656, Jul. 30, 2009, Amendment of Other Laws and Regulations]

Ministry of Land, Transport and Maritime Affairs (Metropolitan Areas Policy Section) 02-2110-8160

Article 1 (Purpose)

The purpose of this Decree is to specify the matters delegated by the Seoul Metropolitan Area Readjustment Planning Act and matters necessary for the enforcement hereof.

Article 2 (Scope of Areas Adjacent to Seoul Special Metropolitan City to be Included in the Seoul Metropolitan Area)

The term "adjacent region stipulated by the Presidential Decree" in Subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act, (hereinafter referred to as the "Act") means the region covering Incheon Metropolitan City and Gyeonggi-do.

Article 3 (Types, etc. of Overcrowding-Inducing Facilities) The term "overcrowding-inducing facilities" in Subparagraph 3 of Article 2 of the Act means facilities which fall under any of the following Subparagraphs. In this case, where the total floori area of the buildings or facilities corresponding to the facilities falling under subparagraphs (3) through (5) of the Act is calculated, the total floor area of the buildings, of which sites are connected and owned by a same owner (in case of the public building under subparagraph 3, including a user), or the area of facilities shall be added up.

1. Schools under Article 2 of the Higher Education Act, such as colleges and universities, technical colleges, college of education or junior colleges (including various schools similar to them; hereinafter the same shall apply);

2. Factories under Subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act, in which the total floor area of the buildings (referring to the sum of areas of each floor of the structures or work places to install machinery and equipment used as manufacturing facilities) is not less than five hundred square meters;

3. Public buildings falling under any of the following Items (excluding libraries, exhibition halls, public performance halls, military buildings among military facilities and any buildings belonging to Korea National Intelligence Service of its subordinate organizations; hereinafter the same shall apply), in which the total floor area of the buildings is not less than 1,000 square meters: (a) Official buildings of central administrative agencies and their subordinate organizations; and

(b) Offices (including research institutes and training institutes; hereinafter the same shall apply) of corporations falling under any of the following (hereinafter referred to as the "public corporations"):

(i) Corporations which the government invested more than 50/100 of the paid-in capital and juristic persons in which such corporations have invested more than 50/100 of the paid-in capital;

(ii) Government-financed enterprises established under the State Properties Act; (iii) Juristic persons which, as the object of Government contribution under the provisions of relevant laws and regulations, are contributed by, or have received contributions from the Government; and

(iv) Juristic persons which, established pursuant to their respective laws and regulations, do not require authorization or permission by the competent Minister but are established directly under the relevant laws and regulations; and

4. Office buildings, sales-use buildings and composite buildings falling under the following Items: Provided, that any building used as the office of any corporation invested or contributed by any local government, any integrated facilities of venture business installed in areas other than nature conservation regions under Article 2 (4) of the Act on Special Measures for the Promotion of Venture Businesses, and any specialized conference facilities among international conference facilities under Article 3 of the Enforcement Decree of the International Conference Industry Promotion Act shall be excluded: (a) Office buildings: buildings which are intended primarily [(referring to cases where total floor space of office-use facilities of the buildings is the largest among the respective areas for different uses as classified under the attached Table 1 of the Enforcement Decree of the Building Act (hereinafter referred to as the "respective areas for exclusive use"); the same shall apply in the this item] for the following facilities (hereinafter referred to as the "office-use facilities") having a total floor area of not less than twenty five thousand square meters, or buildings which are not the main purpose of use primarily intended for office-use and having a total floor area of office-use facilities with not less than twenty five thousand square meters:

(i) Facilities of research institute as prescribed in Item (e) of Subparagraph 10 of the attached Table No. 1 of the Enforcement Decree of the Building Act, and general business facilities in Item (b) of the same Table No. 14; and (ii) Class 1 neighboring living facilities as prescribed in Subparagraph 3 of the attached Table 1 of the Enforcement Decree of the Building Act, and Class 2 neighboring living facilities as prescribed in Subparagraph 4 of the same Table, and cultural and meeting facilities as prescribed in Subparagraph 5 of the same Table (limited to facilities of items (e) and (f)), and warehouse facilities as prescribed in Subparagraph 14 of the same Table: provided, that the same shall apply only to cases in which the area of each facility is smaller than the sum of areas of facilities pursuant to Item 1);

(b) Sales-use buildings: buildings falling under the following: 1) Buildings which are intended primarily [(referring to cases where total floor space of sales-use facilities of the buildings is the largest among the respective areas for different uses; the same shall apply in the this item] for the following facilities (hereinafter referred to as the "sales-use facilities") and have a total floor area of not less than fifteen thousand square meters, or buildings which are not sales-use facilities of the main purpose of use having a total floor area of sales-use facilities of not less than fifteen thousand square meters: (i) Sales-use facilities as prescribed in the attached Table No. 7 of the Enforcement Decree of the Building Act, and amusement facilities in the same Table No. 16; and

(ii) Class 1 neighboring living facilities as prescribed in Subparagraph 3 of the attached Table 1 of the Enforcement Decree of the Building Act, and Class 2 neighboring living facilities as prescribed in Subparagraph 4 of the same Table, cultural and meeting facilities as prescribed in Subparagraph 5 of the same Table, and athletics facilities as prescribed in Subparagraph 13 of the same Table, and warehouse facilities as prescribed in Subparagraph 18 of the same Table: Provided, that the same shall apply to the case where the area of each facility is smaller than the total area of the facilities as provided in Sub-item (i); and 2) Buildings of which the main purpose of use (referring to the case where the sum of the areas of complex facilities of the building concerned is the largest among the areas classified by usage; hereafter the same shall apply in this Item and Item (c)) is not intended for business facilities and sales-use facilities (hereinafter referred to as the "complex facilities") and the sum of the areas of the complex facilities is not less than fifteen thousand square meters but not more than twenty- five thousand square meters and the area of sales-use facilities is larger than that of business facilities; and

(c) Composite buildings: buildings whose main purpose of use is for complex facilities and the total floor area equals to or exceeds twenty five thousand square meters, or buildings whose main purpose of use is not for complex facilities and the total floor area of the relevant complex facilities is not less than twenty-five thousand square meters; and

5. Training facilities as prescribed in Item (b) of Subparagraph 10 of the attached Table 1 of the Enforcement Decree of the Building Act, and a vocational training center in Item (c) of the same Subparagraph, the vocational training center related to driving and maintenance in Item (g) of Subparagraph 20 of the same Table and the total floor area of the building is more than three thousand square meters: Provided, that any facilities installed by any local government or any corporation invested or contributed by any local government shall be excluded. Article 4 (Types, etc. of Large-Scale Development Projects) The term "projects having a type and that exceeds the scale as prescribed by the Presidential Decree" in Subparagraph 4 of Article 2 of the Act means project falling under any of the following Subparagraphs. In this case, any project whose total area is not less than the scale determined by any of the following Subparagraphs as a result of partial development or connected development over several occasions for the same purpose shall be included:

1. Projects to prepare housing sites (hereinafter referred to as the "housing site preparation projects") which fall under any of the following items and having an area of not less than one million square meters:

(a) Projects to develop housing sites under the Housing Site Development Promotion Act;

(b) Projects to construct housing and projects to prepare housing lots under the Housing Act; and

(c) Projects to develop housing sites within an industrial complex and a special region under the Industrial Sites and Development Act;

2. Projects to prepare industrial sites (hereinafter referred to as the "industrial site preparation projects") which fall under any of the following items and having an area of three hundred thousand square meters or more: (a) Projects to develop industrial complexes and to develop special regions under the Industrial Sites and Development Act;

(b) Projects to establish free trade zones under the Act on Designation and Management of Free Trade Zones;

(c) Projects to create complexes facilitating collaboration among the small and medium enterprises under the Promotion of Small and Medium Enterprises and Encouragement of Purchase of Their Products Act; and (d) Projects to prepare factory lots for the establishment of factories under the Industrial Cluster Development and Factory Establishment Act;

3. Projects to create tourist resorts (hereinafter referred to as the "tourist resort creation projects") which fall under any of the following items and having a planned area of facilities with not less than one hundred thousand square meters or more: Provided, that in the case of a tourist resort establishment project implemented on reclaimed public water surface, the area shall equal or exceed three hundred thousand square meters:

(a) Projects to prepare tourist resorts, tourist complexes and tourist facilities under the Tourism Promotion Act;

(b) Projects to build recreational grounds and amusement parks under the National Land Planning and Utilization Act; and

(c) Projects to build facilities to take advantage of hot springs under the Hot Spring Act;

4. Urban development projects under the Urban Development Act (hereinafter referred to as the "urban development projects") whose area is not less than one million square meters, or urban development projects whose area is less than one million square meters, which include the factory zones of not more than three hundred thousand square meters; and

5. Regional comprehensive development projects under the Balanced Regional Development and Support for Local Small and Medium Enterprises Act (hereinafter referred to as the "regional comprehensive development projects") whose area is not less than one million square meters, and regional comprehensive development projects with not more than one million square meters, which include the industrial complex of not less than 300,000 square meters, or the tourist complex of not less than 100,000 square meters. ----------------------------------------------------------------------------------------------- Article 5 (Types, Etc. of Industrial Areas)

The term "areas having a type and that exceeds the scale as prescribed by the Presidential Decree " in Item (b) of Subparagraph 5 of Article 2 of the Act means the areas falling under any of the following Subparagraphs:

1. Industrial complexes as provided by the Industrial Sites and Development Act; Provided, that industrial complexes designated in a free economic zone as provided by the Act on Designation and Operation of Free Economic Zone or a return and grant zone or a supporting city project zone as provided by the Special Act for the Support of the U.S. Army Contribution Area, among growth management region, shall be excluded; and

2. An area compartmentalized for industrial purposes which is thirty thousand square meters or more, as Class-2 district unit planning zones pursuant to the provisions of Article 51 (3) of the National Land Planning and Utilization Act and the development promotion districts as provided under Subparagraph 7 of Article 31 (2) of the Enforcement Decree of the same Act. Article 6 (Minor Alteration in Seoul Metropolitan Area Readjustment Plan) The term "alterations of such insignificant matters as prescribed by the Presidential Decree" in the proviso of Article 4 (2) of the Act means a modification of part of Subparagraphs 3 through 9 of Article 4 (1) of the Act within the scope that does not affect the overall scale of Seoul Metropolitan Area Readjustment Plan. Article 7 (Public Notice of Seoul Metropolitan Area Readjustment Plan) The Minister (hereinafter referred to as the "Minister") shall, in the event that the Seoul Metropolitan Area Readjustment Plan has been determined pursuant to the provisions of Article 4 (3) of the Act, publish the contents and grounds of the decision in the Official Gazette.

Article 8 (Report of Performance Results of Execution Scheme by Respective Administrative Agencies)

The heads of central administrative agencies and Seoul Special Metropolitan City Mayor, Incheon Metropolitan City Mayor or the Governor of Gyeonggi-do (hereinafter referred to as the "Mayor/Do governor") shall, pursuant to Article 5 (4) of the Act, submit to the Minister an annual report of their respective performance results regarding the execution scheme designed to implement the Seoul Metropolitan Area Readjustment Plan by January 31 every year. Article 9 (Scope of Regions)

The respective scope of the overcrowding control region, the growth management region and the nature conservation region under the provisions of Article 6 of the Act shall be as provided in the attached Table 1. Article 10 (Restriction on Acts within Overcrowding Control Region) The term "schools, public office buildings, in-service training facilities and other overcrowding provocative facilities as prescribed by the Presidential Decree" in Subparagraph 1 of Article 7 (1) of the Act means those falling under any of the following Subparagraphs:

1. Schools falling under Subparagraph 1 of Article 3 (hereinafter referred to as the "schools");

2. Public buildings falling under Subparagraph 3 of Article 3 (hereinafter referred to as the "public buildings"); and

3. Training facilities falling under Subparagraph 5 of Article 3 (hereinafter referred to as the "training facilities").

Article 11 (Deregulation of Restriction on Acts within Overcrowding Control Region)

The heads of the administrative agencies concerned may engage in, or grant permission, authorization or approval of or consultations, etc. (hereinafter referred to as the "permission, etc."), such acts which fall under any of the following Subparagraphs within the overcrowding control region, pursuant to Article 7 (2) of the Act:

1. In case of schools: (a) New establishment of technical colleges, junior colleges or graduate schools within the scope consistent with the contents of restriction on total volume control as prescribed under the provisions of Article 24: Provided, that new establishment of technical colleges and junior colleges shall be confined to areas other than the Seoul Special Metropolitan City;

(b) Increase in school admission quota within the scope consistent with the contents of restriction on total allowable admission quota under the provisions of Article 24;

(c) Relocation of schools within the overcrowding control region (excluding the relocation of schools within or into the Seoul Special Metropolitan City). Provided, that the relocation of universities or educational universities shall be limited to the case in which the deliberations of the Seoul Metropolitan Area Readjustment Committee pursuant to Article 21 of the Act (hereinafter referred to as the "Seoul Metropolitan Area Readjustment Committee") has been undergone when it is deemed inevitable for educational policy or necessary for balanced development within a city;

(d) Increase in the admission quota of Korea National University of Arts founded under the Decree on the Establishment of Korea National University of Arts for the creation of new faculties; and

(e) Transfer of a three-year nursing technical college into advanced Nurse College in the Medical University with the following requirements: (i) The nursing technical college shall have been in operation for 10 years since its establishment;

(ii) Total allowable admission quota of advanced Nurse College to be transferred shall not exceed that of the nursing technical college; (iii) To be undergone by the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(f) A new establishment and an extension or a transfer of universities due to the specified standard of the merger and abolition (the merger and abolition between universities outside of the Seoul special metropolitan city and colleges inside the Seoul special metropolitan city shall be excluded) between national universities or private universities and technical colleges that the Minister of Education, Science and Technology promulgates for structural reformation of university faculty personnel shall be prepared by the following requirements: (i) To be undergone by the deliberation of the Seoul Metropolitan Area Readjustment Committee by Dec. 31, 2009 in which the corresponding universities and technical colleges have requested to the Minister of Education, Science and Technology in the opinions of competent Mayors and Do governors; (ii) The administrative buildings of the universities shall neither be transferred from the outside of the overcrowding control region to the inside of the zone, nor be newly established in the zone; and

(iii) The university campus building and the campus area, etc shall be used as before and the college campus building and the college campus area, etc to be abolished shall be transferred to the university campus and the university area.

2. In the case of public buildings: (a) New construction or enlargement of, or alteration in the use of, public buildings falling under any of the following, having undergone the deliberations of the Seoul Metropolitan Area Readjustment Committee: Provided, that in the case of public buildings falling under (ii), it shall be limited to the enlargement or alteration in the use, and in the case of public buildings falling under (iii) and located outside of the Seoul Metropolitan Area, the new construction of an office within overcrowding control regions shall be excluded: (i) Official buildings of central administrative agencies (excluding the Administration);

(ii) Official buildings of the Administration among central administrative agencies, and official buildings of their institutions (excluding the official buildings of educational, training or testing institutions); and (iii) Offices of public corporations; and

(b) Acts falling under any of the followings:

(i) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area, among the institutions belonging to central administrative agencies and public corporations (including the branches). (ii) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area and its neighboring Do, among the institutions belonging to central administrative agencies and public corporations (including the branches), and have consultations with the Minister. Article 12 (Restriction on Acts within Growth Management Region) The term "new establishments or extension of schools, public office buildings, in- service training facilities and other overcrowding provocative facilities as prescribed by the Presidential Decree " in Article (1) of he Act means the new establishment or extension of schools, public buildings or training facilities other than those falling under the following Subparagraphs:

1. In case of schools: (a) New establishment of technical colleges, junior colleges, graduate schools or colleges with an annual admission quota of fifty students or less (one hundred students or less in case of special colleges of advanced courses such as computer, communication, design, video, new material and biotechnology courses, which are determined and publicly announced by the Minister of Education, Science and Technology, hereinafter referred to as "small-scaled universities") within the scope of being consistent with the contents of restriction on total allowable admission quota as prescribed by the provisions of Article 24; provided, that, in the case of new establishment of small-scaled universities, the same shall apply to cases having undergone deliberation of the Seoul Metropolitan Area Readjustment Committee;

(b) Increase in annual school admission quota within the scope being consistent with the contents of restriction on total allowable admission quota as prescribed by the provisions of Article 24;

(c) The increase of school admission quota in the new establishment of small-scaled universities, when eight years have not elapsed, (it corresponds to 100% in the scope of the initial quota and the quota shall not be available for the increase under Item (b) within eight years after new establishment), having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee; (d) Relocation of schools within the Seoul Metropolitan Area; and (e) A new establishment and an extension or transfer of universities due to the specified standard of the merger and abolition (the merger and abolition between universities outside of the Seoul special metropolitan city and colleges inside the Seoul special metropolitan city shall be excluded) between national universities or private universities and technical colleges that the Minister of Education, Science and Technology promulgates for structural reformation of university faculty personnel shall be prepared by the following requirements: (i) To be undergone by the deliberation of the Seoul Metropolitan Area Readjustment Committee by Dec. 31, 2009 in which the corresponding universities and technical colleges have requested to the Minister of Education, Science and Technology in the opinions of the competent Mayors and Do governors;

(ii) The administrative buildings of the universities shall neither be transferred from outside of the overcrowding control region to inside of the zone, nor be newly established in the zone; and

(iii) The university campus building and the campus area, etc shall be used as before and the college campus building and college campus area, etc to be abolished shall be transferred to the university campus and the university area.

2. In case of public buildings: (a) New construction or enlargement or usage alteration of public buildings falling under any of the followings, having undergone the deliberations of the Seoul Metropolitan Area Readjustment Committee: Provided, that in the case of public buildings falling under (ii), it shall be limited to the enlargement or usage alteration, and in the case of public buildings falling under (iii) and located outside of the Seoul Metropolitan Area, the new construction of an office within overcrowding control regions shall be excluded:

(i) Official buildings of central administrative agencies (excluding the Administration);

(ii) Official buildings of the Administration among central administrative agencies, and official buildings of their institutions (excluding the official buildings of educational, training or testing institutions); and (iii) Offices of public corporations

(b) Acts falling under any of the followings.

(i) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area, among the institutions belonging to central administrative agencies and public corporations (including the branches). (ii) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area and its neighboring Do, among the institutions belonging to central administrative agencies and public corporations (including the branches), and have consultations with the Minister.

3. In case of training facilities: (a) New construction, enlargement or usage alteration of training facilities, having undergone the deliberations of the Seoul Metropolitan Area Readjustment Committee;

(b) New construction or the extension of the existing training facilities within 20/100 of the total floor area of a building;

(c) New construction, extension or usage alteration within the scope of the existing scale of training facilities which are relocated from the Seoul Metropolitan Area. (2) The term "scope as prescribed by the Presidential Decree" in Article 8 (2) of the Act means areas falling under any of the following subparagraphs:

1. Areas required to systematically induce factories which are relocated from the overcrowding control region;

2. Areas required to diversify the income sources of the residents living in areas where the level of development is considerably lower compared to other areas;

3. Areas required to reorganize the areas crowded with factories; and

4. Areas in which the heads of the central administrative agencies concerned deem necessary for industrial policy and requests such to the Minister. Article 13 (Restriction on Acts within Nature Conservation Region) (1) The term "development projects having a type and that exceed the scale as prescribed by the Presidential Decree" in Subparagraph 1 of Article 9 of the Act means projects falling under any of the following Subparagraphs:

1. The housing site preparation projects: Provided, that the housing site preparation projects in which the building plan of apartments or tenement houses among apartment buildings in Subparagraph 2 of the attached Table 1 of the Enforcement Decree of the Building Act are not included, and the housing site preparation projects which is implemented in areas other than City/Gun (hereinafter referred to as the "implementation district of pollution load management planning") where pollution load management plan is formulated and implemented under Article 8 of the Act on the Improvement of Water Quality and Support for Residents of the Riverhead of the Han River System shall be referred to as the area of which is not less than thirty thousand square meters;

2. Projects to create industrial sites, of which the area is not less than thirty thousand square meters;

3. Projects to create tourist resorts, of which the area of their facility planning districts is not less than thirty thousand square meters;

4. Projects of urban development, of which the area is not less than thirty thousand square meters; and

5. Regional comprehensive development projects, of whose size is not less than thirty thousand square meters.

(2) The term "schools, public office buildings, office buildings, commercial buildings, in-service training facilities and other overcrowding-inducing facilities as prescribed by the Presidential Decree" in Subparagraph 2 of Article 9 of the Act means facilities falling under any of the following Subparagraphs:

1. Schools;

2. Public buildings;

3. Office buildings, buildings for sales or composite buildings of which total areas excluding that of warehouses (limited to facilities that does not discharge sewage under Subparagraph 1 of Article 2 of the Act on the Disposal of Sewage, Excreta and Livestock Wastewater) and parking lots falls under any item of Subparagraph 4 of Article 3; and

4. Vocational ability development training facilities which, among educational institutions falling under Item (b) of Subparagraph 10 in the attached Table 1 of the Enforcement Decree of the Building Act, vocational training facilities falling under item (c) of the same Subparagraph and vocational training facilities related to driving and maintenance falling under Item (g) of Subparagraph 20 in the same Table, are established and operated by the business owner under the Act on the Development of Occupational Abilities of Workers. (3) The Minister may determine the detailed applicable standards of the connected development and then shall publish the contents and grounds of the decision, etc. in the Official Gazette.

Article 14 (Deregulation of Restriction on Acts within Nature Conservation Region)

(1) The heads of the administrative agencies concerned may engage in, or grant permission, etc. to engage in, such acts which fall under any of the following Subparagraphs within the nature conservation region pursuant to the proviso of Article 9 of the Act:

1. In the case where the area is not more than sixty thousand square meters among housing site preparation projects, urban development projects, regional comprehensive development projects or tourist resort preparation projects (in the case of tourist resort preparation projects, referring to an area of facilities planned zone) which is implemented in areas other than the implementation district of pollution load management planning, having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

2. In the case of the housing site preparation project, urban development project, regional comprehensive development project or tourist resort preparation project which is implemented in the implementation district of pollution load management planning;

(a) Projects to prepare housing sites falling under any of the followings: provided, that the housing site preparation projects which is implemented in the water adjoining area as determined and publicly announced under Article 4 (1) of the Act on the Improvement of Water Quality and Support for Residents of the Riverhead of the Han River System shall be excluded: (i) Projects implemented in the district unit planning zones of which area is not less than one hundred thousand square meters determined under the provisions of Article 51 of the National Land Planning and Utilization Act in the housing site preparation projects implemented in the residential area, commercial area, industrial area and development promotion districts (hereinafter referred to as the "urban districts, etc." in this Article) among urban districts pursuant to the provisions of Articles 36 and 37 of the National Land Planning and Utilization Act, having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(ii) Projects implemented in urban districts, etc. of which the area is not less than one hundred thousand square meters determined under the provisions of Article 51 of the National Land Planning and Utilization Act which have no additional areas of development in the suburban districts due to already completed urbanization and of which the consultation with the Minister is completed; (iii) Projects implemented in other suburban districts, which is not an urban district, etc. of which the area is not less than one hundred thousand square meters, but not more than five hundred thousand square meters, determined under the provisions of Article 51 of the National Land Planning and Utilization Act, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(iv) Projects implemented in the urban districts, etc. together with other suburban districts which area (referred to as the total sum of areas of the respective district unit planning zones) is not less than one hundred thousand square meters, but not more than five hundred thousand square meters, determined under the provisions of Article 51 of the National Land Planning and Utilization Act, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(b) Urban development projects or regional comprehensive development projects falling under any of the followings: provided, that the urban development project which is implemented in the water adjoining area as determined and publicly announced under Article 4 (1) of the Act on the Improvement of Water Quality and Support for Residents of the Riverhead of the Han River System shall be excluded:

(i) Urban development projects or regional comprehensive development projects (excluded the case of Item 3), of which the area is not more than sixty thousand square meters, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(ii) Urban development projects or regional comprehensive development projects implemented in urban districts, of which the area is not less than one hundred thousand square meters, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

(iii) Urban development projects or regional comprehensive development projects implemented in urban districts, of which the area is not more than one hundred thousand square meters and has no additional areas of development in the suburban districts due to already completed urbanization, and which the consultation with the Minister is completed; or

(iv) Urban development projects or regional comprehensive development projects implemented in districts other than urban districts, or in urban districts and other non-urban districts, of which the area is not less than one hundred thousand square meters but not more than five hundred square meters, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee.

(C) Tourist resort preparation project, of which the area is more than thirty thousand square meters, and having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee.

3. In the case of the industrial site preparation projects of which the area is not more than sixty thousand square meters, those having undergone the deliberation of the Seoul Metropolitan Area Readjustment Committee;

4. In case of schools: (a) New establishment of junior colleges, graduate schools or small scaled colleges within the pertinent scale with the contents of restriction on total allowable admission quota, as prescribed by the provisions of Article 24, having undergone the deliberations of the Seoul Metropolitan Area Readjustment Committee; (b) Increase in annual school admission quota within the pertinent scale with the contents of restriction on total allowable admission quota, as prescribed by Article 24; and

(c) The increase of school admission quota in the new establishment of small-scaled university, when it has not elapsed eight years, (it corresponds to 100% in the scope of the initial quota and the quota shall not be available for the increase under the Item (b) within eight years after new establishment) shall duly undergo the deliberation of the Seoul Metropolitan Area Readjustment Committee. (d) Relocation of junior colleges, graduate schools or small-scaled university within the nature conservation region;

(e) A new establishment and an extension or a transfer of universities due to the specified standard of the merger and abolition (the merger and abolition between universities outside of the Seoul special metropolitan city and colleges inside the Seoul special metropolitan city shall be excluded) between national universities or private universities and technical colleges that the Minister of Education, Science and Technology promulgates for structural reformation of university faculty personnel shall be prepared by the following requirements: (i) To be undergone by the deliberation of the Seoul Metropolitan Area Readjustment Committee by Dec. 31, 2009, which the corresponding universities and technical colleges have requested to the Minister of Education, Science and Technology in the opinions of competent Mayors and Do governors; (ii) The administrative buildings of the universities shall neither be transferred from outside of the overcrowding control region to inside of the zone, nor be newly established in the zone; and

(iii) The university campus building and the campus area, etc shall be used as before and the college campus building and the college campus area, etc to be abolished shall be transferred to the university campus and the university area.

5. In case of public buildings: (a) New construction, enlargement or usage alteration of public buildings which fall under any of the followings, and having undergone the deliberations of the Seoul Metropolitan Area Readjustment Committee: Provided, that that in the case of public buildings falling under (ii), it shall be limited to the enlargement or usage alteration, and in the case of public corporations falling under (iii) and located outside of the Seoul Metropolitan Area, the new construction of an office within the nature conservation regions shall be excluded: (i) Official buildings of central administrative agencies (excluding the Administration);

(ii) Official buildings of the Administration among central administrative agencies, and official buildings of their institutions (excluding the official buildings of educational, training or testing institutions); and (iii) Offices of public corporations;

(b) Any acts falling under the following Sub-items: (i) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area, among the institutions belonging to central administrative agencies and public corporations (including the branches); (ii) New construction, enlargement or usage alteration of official buildings or offices of institutions and public corporations, whose jurisdictions are limited to the Seoul Metropolitan Area and its neighboring Do, among the institutions belonging to central administrative agencies and public corporations (including the branches), and having consultations with the Minister.

6. The extension of the existing training facilities within the limit of ten one hundredths of the total floor area of their buildings; and

7. New construction, extension or usage alteration of official buildings, buildings for sales and complex buildings implemented in the implementation district of the pollution load management planning.

(2) In the case where several housing site preparation projects are involved in the same district unit planning zones on the request of deliberation of the Seoul Metropolitan Area Readjustment Committee under Item (a) of Subparagraph 2 of Paragraph (1), the request shall be made en masse. Article 15 (Original Site)

The term "not less than size as prescribed by the Presidential Decree" in Article 11 (2) of the Act means ten thousand square meters or more: Provided, that in the case of the original site within the industrial area under the provisions of Article 11 (1) of the Act, it means twenty thousand square meters or more. Article 16 (Imposition and Collection of Overcrowding Surcharge) (1) The term "area as prescribed by the Presidential Decree" in Article 12 (1) of the Act means the Seoul Special Metropolitan City, and the term "buildings as prescribed by the Presidential Decree" means the composite buildings under Item (c) of Subparagraph 4 of Article 3, and the term "usage alteration as prescribed by the Presidential Decree" means the usage alteration from the facilities which are not office-use facilities, sales-use facilities and complex facilities under Subparagraph 4 of Article 3 (hereinafter referred to as the "office-use facilities, etc.") to facilities for business, etc.

(2) The term "cooperative as prescribed by the Presidential Decree" in Article 12 (2) of the Act means a consolidation project partnership under the provisions of Article 16 of the Act on the Maintenance and Improvement of Urban Areas or other cooperatives for the construction of buildings under relevant laws and regulations.

Article 17 (Reduction or Exemption of Overcrowding Surcharge) The reduction or exemption of overcrowding surcharge (hereinafter referred to as the "Surcharges") under Article 13 of the Act shall be granted as determined by the following Subparagraphs:

1. No Surcharges shall be levied on buildings constructed by the State or local governments;

2. Surcharges shall be reduced by 50/100 in respect to the buildings constructed as part of an urban environment consolidation project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents;

3. Surcharges shall be reduced accordingly as stipulated in the attached Table 2 in respect to parking facilities, housing, or facilities contributed and accepted selectively by the State or local governments;

4. No Surcharges shall be levied on the offices of public corporations (including the branches) whose jurisdiction is limited to the Seoul Metropolitan Area among buildings; or

5. The Surcharges on the research institutes to be constructed in the complex falling under any of the following Items among research institutes in Item (e) of Subparagraph 10 in the attached Table 1 of the Enforcement Decree of the Building Act shall be reduced as prescribed in the attached Table 2: (a) Industrial complex under Article 2 of the Industrial Sites and Development Act; (b) Science research complex under Article 29 of the Framework Act on Science and Technology;

(c) Nanotechnology research complex under Article 16 of the Act on the Promotion of Nanotechnology; and

(d) Industrial technology complex under Article 2 of the Act on Special Cases for Support of Industrial Technology Complexes;

6. The surcharges on the financial business office, among general business buildings under Item (b) of Subparagraph 14 of the attached Table 1 of the Enforcement Decree of the Building Act, to be constructed in the financial hub area falling under Article 2 of the Act on the Creation and Development of Financial Hub shall be reduced as prescribed by the attached Table 2:

7. No Surcharges shall be levied in the case for the usage alteration of the facilities on which Surcharges have already been levied among buildings; and

8. In the case of buildings falling under any of the following Items, Surcharges shall be reduced accordingly on each area as respectively stipulated in the attached Table 2:

(a) Office-use buildings: twenty five thousand square meters; (b) Sales-use buildings: fifteen thousand square meters; (c) Composite buildings in which the total area of facilities for sales is the largest among the respective areas: fifteen thousand square meters; and (d) Composite buildings other than (c): twenty five thousand square meters Article 18 (Computation of Surcharge)

The methods of computation of surcharge under the provisions of Article 14 (3) of the Act shall be as provided in the attached Table 2. Article 19 (Methods, etc. of Imposition and Collection of Surcharges) (1) Where the Mayor/Do governor exercising administrative jurisdiction over the region to which the building subject to imposition of Surcharges belongs, intends to impose and collect Surcharges, he/she shall, on the date of the construction permission, construction report or usage alteration, issue a notice of Surcharges stating the object, amount, deadline and place of payment to the person who is obligated to pay Surcharges pursuant to the provisions of Article 15 (6) of the Act.

(2) The Mayor/Do governor shall, in the event that the total floor area of any building has been changed or the cause of altering the amount of Surcharges has arisen due to a change in the matters involving construction permission and construction report, or usage alteration, reissue a notice of payment. (3) The Mayor/Do governor shall keep and manage a register on the imposition and collection of Surcharges and submit monthly data on their results to the Minister by the 10th of the following month.

(4) The Mayor of Seoul Special Metropolitan City and of Metropolitan City and Do Governor (hereinafter referred to as "City/Do"), and the head of the competent City/Gun/Gu (referred to as the head of autonomous Gu; hereinafter the same shall apply) to impose the surcharges shall submit the relevant data necessary for matters of permission or report, etc. of buildings to be imposed to the City/Do Governor.

Article 20 (Payment of Surcharge)

The Mayor/Do governor shall pay to the Bank of Korea (including national treasury agents) or postal service agencies the amount reverting to the special account on balanced national development under the Special Act on Balanced National Development among the collected Surcharges by the day after the day on which the Surcharges are collected.

Article 21 (Object of Factory Total Volume Control) The factory total volume control under Article 18 (2) of the Act shall apply to a factory building pursuant to Subparagraph 2 of Article 3 by the standards of the area for which an application for alterations in the details of entries on the buildings registry is filed for the purposes of construction permission, construction report or usage alteration under the Building Act as for the area of new construction, enlargement or usage alteration under the Building Act (hereinafter referred to as the "factory construction").

Article 22 (Computation of Factory Total Volume Control) (1) Pursuant to the provisions of Article 18 (2) of the Act, the Minister shall, after the deliberations of the Seoul Metropolitan Area Readjustment Committee, determine the method of computing the total allowable area for factory construction, and publish it in the Official Gazette. (2) The Minister shall, after the deliberations of the Seoul Metropolitan Area Readjustment Committee, determine every three years the total allowable area for factory construction allocated to City/Do (hereinafter referred to as the "total allowable area allocated to the City/Do") according to the computation made under Paragraph (1), and publish it in the Official Gazette. The same shall, after the deliberations of the Seoul Metropolitan Area Readjustment Committee, apply to the case of altering the determined factory total volume control. (3) The Mayor/Do governor shall submit to the Minister by January 31 of the year when determining the total allowable area allocated to the City/ Do, basic data relating to the fixing of total allowable area allocated to the City/Do including the volume of factory construction during the past three years, possible areas of factory construction among industrial complexes, and the expected volume of factory construction for three years thereafter, etc. (4) The Mayor/Do governor shall formulate the allocation plans by each fiscal year within the scope of the total allowable area allocated to the City/ Do, and obtain approval from the Minister, and thereafter publish such contents on the public bulletin issued by the relevant City/Do. The same shall also apply to the case where making alterations thereof.

(5) The Mayor/Do governor may, where it is deemed necessary to systematically manage the factory construction in consideration of regional circumstances of the City/Gun/Gu (referring to autonomous Gu) under their administrative jurisdiction, allocate to the different regions the total allowable area of factory construction (hereinafter referred to as the "total regional allowable area allocated to areas and by fiscal years") within the scope of allocation plans by fiscal years as approved under Paragraph (4) (hereinafter referred to as the "allocation plans by fiscal years") in consultation with the heads of the administrative organs concerned and shall, in this case, publish the contents on the public bulletin issued by the City and Do. The same shall apply to a case where making alterations of the total regional allowable area allocated to areas and by fiscal years. Article 23 (Implementation of Factory Total Volume Control) (1) The Minister may, where it is likely that the volume of the factory construction in the City and Do by fiscal years exceeds the allocation plans by fiscal years, and as a result factories are excessively built, specify the industry types, scale and period, after the deliberations of the Seoul Metropolitan Area Readjustment Committee, to restrict factory construction within the corresponding City and Do, and shall publish the contents of such restriction in the Official Gazette. (2) The Mayor/Do governor may, where it is likely that the volume of factory construction in the relevant area by fiscal years exceeds the total regional allowable area allocated to areas and by fiscal years, and as a result that factories are excessively built after the allocation of total regional allowable area allocated to areas and by fiscal years pursuant to Article 22 (5), specify the industry types, scale and period to restrict the factory construction within the respective area, and shall, in this case, publish the contents of the restriction in the public bulletin issued by the City and Do.

(3) The heads of City/Gun/Gu (referring to the head of autonomous Gu) shall keep and manage a factory total volume control register, and submit a monthly report on the volume of factory construction to the Minister via the Mayor/Do governor by the 10th of the following month.

Article 24 (Restriction on Total Allowable Annual Admission Quota for Schools) (1) The contents of restriction on the total allowable annual admission quota for schools under the provisions of Article 18 (3) of the Act shall be provided under the following Subparagraphs:

1. The Minister shall, after the deliberations of the Seoul Metropolitan Area Readjustment Committee, determine the increase in the annual admission quota for universities and colleges and college of education; Provided that the increase according to Item (c) of Subparagraph 1 of Article 12 (1) and Item (c) of Subparagraph 4 of Article 14 (1) shall be excluded from the computation of the total increase in the annual admission quota; and

2. The total number of increase in the admission quota for technical colleges, junior colleges or graduate schools shall not exceed the standard as determined by any of the following Items: Provided, that in the event that the Minister deems it inevitable for the development of the national economy and the promotion of public welfare and determines it differently through the deliberations of the Seoul Metropolitan Area Readjustment Committee, the same shall not apply: (a) Technical colleges and junior colleges: 10/100 of total number of increase of the admission quota across the nation in the previous year; and (b) Graduate schools: 300 persons each year: Provided, that the number of increase of the admission quota for graduate schools of advanced courses such as computer, communication, design, video, new material, and biotechnology courses, which is publicly announced by the Minister of Education, Science and Technology in consultation with the Minister, shall be excluded from the assessment of total number of increase for the admission quota;

3. The total allowable admission quota at the time of new construction and extension or transfer due to the specified standard of the merger and abolition between universities and technical colleges under Item (f) of Subparagraph 1 of Article 11 and item (e) of Article 12 (1) and Item (e) of Subparagraph 4 of Article 14 (1), notwithstanding Subparagraphs 1 and 2 shall be determined separately by the Minister through the deliberation of the Seoul Metropolitan Area Readjustment Committee.

(2) In the case where total allowable admission quota is reduced by the specified standard of the merger and abolition between national universities or private universities, which is promulgated in order to reform the structure of universities, the Minister of Education, Science and Technology shall notify the contents to the Minister by the end of the corresponding year and the Minister shall, reflecting this, adjust the total allowable admission quota under Paragraph (1). Article 25 (Plans to Establish Wide-Area Infrastructure Facilities) (1) The wide-area infrastructure facilities as provided under the provisions of Article 19 (2) of the Act means facilities falling under any of the following Subparagraphs, and which are established to connect large-scale development project districts and their outlying areas:

1. Transport system connecting large-scale development project districts and their adjoining cities;

2. Environmental pollution prevention facilities and waste disposal facilities;

3. Water service facilities established under running water supply plans; and

4. Other facilities requiring wide-area reorganization. (2) Plans to establish the wide-area infrastructure facilities under Article 19 (2) of the Act shall include the method of providing necessary financial resources. Article 26 (Composition of Seoul Metropolitan Area Readjustment Committee) The Seoul Metropolitan Area Readjustment Committee (hereinafter referred to as the "Commission") shall be composed of the Minister of Education, Science and Technology, Minister of National Defense, Minister of Government Administration and Home Affairs, Minister of Culture and Tourism, Minister of Agriculture and Forestry, Minister of Commerce, Industry and Energy, Minister of Information and Communication, Minister of Health and Welfare, Minister of Environment, Minister of Maritime Affairs and Fisheries, Minister of Planning and Budget, Chairperson of the Emergency Planning Committee under the Prime Minister, Seoul Special Metropolitan City Mayor, Incheon Metropolitan City Mayor and the Governor of Gyeonggi-do.

Article 27 (Convocation of Meetings and Quorum)

(1) The Commission shall convene its regular sessions once every quarter: Provided that where the chairperson of the Commission (hereinafter referred to as the "Chairperson") deems it necessary, he/she may convoke extraordinary sessions. (2) The Commission shall open a session with the presence of a majority of its members including the Chairperson and the vice chairperson, and make its decision by a concurrent vote of a majority of the members present. Article 28 (Duties, Etc. of Chairperson)

(1) The Chairperson shall exercise overall control of the Commission's affairs and act as the chairperson of its sessions.

(2) The vice chairperson shall assist the Chairperson and shall, in the case where the Chairperson is unavailable for unforeseen reasons, perform his/her duties on the Chairperson's behalf in accordance with the order as stipulated under the provisions of Article 22 (2) of the Act.

(3) In the case where both the Chairperson and the vice chairperson are unavailable for unforeseen reasons, a member of the Commission appointed in advance by the Chairperson shall discharge his/her duties on the Chairperson's behalf. Article 29 (Chief Executive Secretary, Etc.)

(1) A chief executive secretary and an executive secretary shall be appointed in the Commission to deal with its administrative affairs. (2) The chief executive secretary and the executive secretary shall be appointed by the Chairperson among public officials affiliated with the Ministry. Article 30 (Composition of Working Committee on Seoul Metropolitan Area Readjustment)

(1) The working committee on Seoul Metropolitan Area Readjustment (hereinafter referred to as the "Working Committee") shall be comprised of a Chairperson and not more than twenty five members.

(2) The Chairperson of the Working Committee shall be the first Vice Minister of Land, Transport and Maritime Affairs, and its members shall include public officials designated by the head of each organization among public officials of high-ranking public official groups from the Office for Government Coordination, Ministry of Strategy and Finance, Ministry of Education, Science and Technology, Ministry of National Defense, Ministry of Public Administration and Security, Ministry of Culture, Sports & Tourism, Ministry for Food, Agriculture, Forestry and Fisheries, Ministry of Knowledge Economy, Ministry for Health, Welfare and Family Affairs, Ministry of Environment, Ministry of Land, Transport and Maritime Affairs, and Ministry of Government legislation, and second or third-grade public officials of Seoul Metropolitan City and third or fourth grade officials of Incheon Metropolitan City and Gyeonggi-do, and persons of learning and experience in the field of Seoul Metropolitan Area readjustment planning nominated by the Chairperson of the Committee. (3) Members who are not public officials shall serve for two years. (4) In order to handle the administrative affairs of the Working Committee, an executive secretary shall be appointed by the Chairperson of the Working Committee among public officials affiliated with the Ministry of Land, Transport and Maritime Affairs.

Article 31 (Convocation of Working Committee Meetings and Quorum) (1) The Working Committee shall convene its regular sessions once every quarter: Provided that where the Chairperson of the Working Committee deems it necessary, he/she may convoke extraordinary sessions. (2) The Working Committee shall open a session with the presence of a majority of its members including the Chairperson and make its decision by a concurrent vote of a majority of the members present.

Article 32 (Matters to be Handled by Working Committee) Where the Commission intends to delegate the implementation of its affairs to the Working Committee pursuant to the provisions of Subparagraph 2 of Article 23 (2) of the Act, it shall be done so by an affirmative resolution by the Commission. Article 33 (Cooperation from Relevant Institutions) (1) Where the Commission and the Working Committee deems it necessary for deliberation, they may require the organizations concerned to submit necessary materials or may hear the opinions from public officials of those organizations. (2) Where the organizations or public officials concerned receive such requests of cooperation as stipulated under the provisions of Paragraph (1), they shall comply unless there are justified causes not to do so. Article 34 (Operational Particulars)

Except as stipulated in Articles 27 through 33, matters necessary for the operation of the Commission and the Working Committee shall be determined separately by the Chairperson.

Article 35 (Advice, etc. from Specialist Institutions) (1) The Minister may, where he/she deems it necessary for the establishment, alteration and execution of the Seoul Metropolitan Area Readjustment Plan, seek advice from, or refer the matter, to specialist institutions for investigation and research.

(2) The Minister may defray to specialist institutions, part of the necessary expenses in the case of Paragraph (1) within the scope of the budget, and where there are other administrative bodies which need such advice or investigation and research, he/she may have them bear the expenditure after consultations with their heads. ADDENDA [Decree of Act on Designation and Management of Free Economic Zones]

Article 1 (Enforcement Date)

This Decree shall enter into force on July 31, 2009. Articles 2 (Amendment of Other Laws and Regulations) Paragraph (1) through (8): Omitted.

Paragraph (9): Part of Seoul Metropolitan Area Readjustment Planning Act shall be amended as follows:

In the Proviso of Article 5 (1) of the Act, "Act on Designation and Management of Free Economic Zones" shall be amended as "Special Act on Designation and Management of Free Economic Zones"

Paragraph (10) through (15): Omitted.