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ENFORCEMENT DECREE OF THE HOUSING ACT

Enforcement Decree of the Housing Act

(Enforcement Date: Mar. 18, 2009)

CHAPTER 1 GENERAL PROVISIOS

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Housing Act and necessary matters to enforce such matters.

Article 2 (Kind and Scope of Multifamily Housing) (1) The kind and scope of Multifamily Housing under subsection 2 of Article 2 of the Housing Act (hereinafter referred to as the "Act") shall be prescribed by the provisions of (a) or (c) of Asterisk 1, 2 of the Enforcement Decree of the Building Act. (2) Multifamily Housing under section (1) may be categorized in accordance with standards for supply and construction, etc. as stipulated in the Decree of the Ministry of Land, Transport and Maritime Affairs.

Article 3 (Urban-type Housing)

(1) "Housing prescribed by Presidential Decree" under Article 2, 4 of the Act means the following housings which are constructed in urban areas under the National Planning and Utilization Act after getting approval for a project plan under Article 16 of this Act.

1. Complex-type Multifamily Housing: housing falling under asterisk 1, 2 (c) of the Enforcement Decree of the Building Act with exception of Studio-type Housing under subsection 2 and Dorm-type Housing under subsection 3. Provided, That under Article 5 (2) of the Building Act, Complex-type Multifamily Housing construction may be allowed up to 5 stories in height as residential housing in the case where the Housing goes through the deliberation of the Construction Committee under Article 4 of the same Act.

2. Studio-type Housing: housing falling under any of the housing under Asterisk 1, 2 (a) through (c) of the Enforcement Decree of the Building Act and satisfying the following conditions:

(a) housing with a kitchen and a bathroom in each household wherein occupiers may live an independent life;

(b) housing combining living room, bed room and kitchenette into a single unit barring a bathroom;

(c) housing whose exclusive residential area for each housing unit is more than 12 and less than 30 square meters; and

(d) housing without residential units in the basement floor.

3. Dorm-type Housing: housing falling under any of the housing under Asterisk 1, 2 (a) through (c) of the Enforcement Decree of the Building Act and satisfying the following conditions:

(a) housing wherein kitchenette, laundry and resting place are shared by occupiers;

(b) housing whose exclusive residential area for each housing unit is more than 7 and less than 20 square meters.

(c) housing without residential units in the basement floor (2) Urban-type Housing and other kinds of housing shall not be constructed together in a same building and Complex-type Multifamily Housing under section (1), 1 and Urban-type Housing shall not be constructed together in a same building. Article 4 (Roads to Divide Housing Complexes)

"Facilities prescribed by Presidential Decree" under Article 2, 6 (d) mean the roads falling under any of the following items, which may be used for pedestrians and vehicles:

1. roads for urban planning under the National Planning and Utilization Act and prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs;

2. roads under control of the government, the Special Metropolitan City, Metropolitan Cities or local governments under the Road Act; and

3. other roads constructed under other Acts corresponding to the roads under the above 1 and 2.

Article 4-2 (Range of Extension)

"The act of extending housing within the range prescribed by Presidential Decree" under Article 2, 15 of the Act means extending Multifamily Housing with the range of 3/10 of exclusive residential area of each household (referring to the exclusively possessed area of each household stipulated in a cadastre of congregate buildings). Provided, That it is only limited to Multifamily Housing which has been 15 years {referring to the number of years between 15 to 19 years prescribed by the Ordinance of Special Metropolitan City, Metropolitan City, Do or Special Self-governing Province (hereinafter referred to as the "city/Do")} since the date of use inspection (referring to the date of provisional use approval in the case where the whole Multifamily Housing got provisional use approval) under Article 29 of the Act or since the date of use approval under Article 22 of the Building Act. Article 5 (Scope of and Procedure for Consultation on Housing Policy) (1) Where a head of central administrative agency, a Mayor of Special Metropolitan City, a mayor of Metropolitan City or a governor of Do or Special Self-governing Province (hereinafter referred to as the "mayor/Do governor) intends to take measures on any of the following matters, he/she shall hold an advance consultation with the Minister of Land, Transport and Maritime Affairs under Article 4 (1) of the Act: 1. matters of Article 4 (1) of the Act, which have grave impact on the establishment and implementation of a comprehensive housing plan;

2. matters, which have grave impact on housing supply and demand, and price movement; and

3. other matters prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(2) Where the Minister of Land, Transport and Maritime Affairs is requested to hold consultation under section (1), he/she shall reply within 30 days from the request date. Article 6 (Survey of Actual Conditions of Residence) (1) "The matters prescribed by Presidential Decree" under Article 5 (1), 4 of the Act shall mean as follows:

1. type and scale of housing by region, and occupation type;

2. facility and installation of housing;

3. residential environmental satisfaction;

4. housing price and rental fee;

5. a future plan of house moving and house purchase;

6. family composition and income level by social stratum; and

7. the number of households falling short of minimum standards for residential accommodation.

(2) The Minister of Land, Transport and Maritime Affairs shall notify check items and checklist for regular survey of actual conditions of residence to the Minister of Finance and Strategy.

Article 7 (Minimum Standards for Residential Accommodation) Minimum standards for residential accommodation, set and publicized by the Minister of Land, Transport and Maritime Affair, under Article 5-2 of the Act shall include the following matters:

1. minimum residential area for each household;

2. number of rooms by usage;

3. standards for essential installation such as kitchen and bathroom; and

4. standards for housing structure, performance and environment in consideration of safety and pleasantness.

CHAPTER 2 COMPREHENSIVE HOUSING PLAN

Article 8 (Comprehensive Housing Plan)

(1) A head of central administrative agency or a mayor/Do governor, who is requested to submit a housing plan under Article 7 (4) of the Act, shall submit the plan for projects and policies which will be reflected in a comprehensive housing plan for next year to the Minister of Land, Transport and Maritime Affairs by the end of every December.

(2) The plan under section (1) shall include the followings:

1. current condition of housing and housing sites;

2. plan for housing construction for next year;

3. plan for housing site demand and supply for next year;

4. plan for housing fund raising and investment;

5. plan for supply and demand for housing construction materials;

6. plan for improving residential standard of the low-income class;

7. plan for improving and remodeling housing;

8. plan for the residential environment improvement project and other maintenance projects under the Urban and Residential Environment Maintenance Act; and

9. other matters prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(3) The Minister of Land, Transport and Maritime Affairs may order a fund trustee (referred to a financial institution entrusted with the management and operation of the National Housing Fund under Article 62 (2) of the Act; hereinafter the same shall apply), if necessary in setting up a comprehensive housing plan, to submit a plan for housing fund raising for next year.

(4) A head of central administrative agency or a head of public agency under Article 95 (5), who intends to construct housing, or construct and supply housing for his/her officials, shall make a plan for housing construction project and submit it to the Minister of Land, Transport and Maritime Affairs by the end of December as stipulated in the Ordinance of Land, Transport and Maritime Affairs.

Article 9 (Scope of City/Do Comprehensive Housing Plan) A 10-year City/Do comprehensive housing plan under Article 8 (1) of the Act shall include the following items:

1. basic objects and directions for a City/Do comprehensive housing plan;

2. current condition and outlook of City/Do housing market;

3. outlook of demand for housing of each kind, scale and occupation type;

4. objects for residential standard;

5. City/Do plan for items under Article 8 (2) (in the case of item 2 and 3, it refers to a 10-year plan)

6. policy for residential standard improvement for the low-income; and

7. other matters necessary for the residence stabilization and residential welfare improvement.

CHAPTER 3 HOUSING CONSTRUCTION, ETC.

Part 1 Housing Constructors

Article 10 (Scope and Registration Standard for Housing Constructors, etc.) (1) "The number of households prescribed by Presidential Decree" stipulated in Article 9 of the Act refers to 20 houses in the case of detached housing and 20 housing units in the case of Multifamily Housing. "The area prescribed by Presidential Decree" stipulated in Article 9 of the Act refers to 10 thousand square meters. (2) Any person who intends to make registration for a housing construction project or a housing site preparation project under Article 9 of the Act, shall satisfy the following conditions. In this case, a house constructor (only referred to persons registered for construction and civil engineering works) registered under Article 9 of the Framework Act on the Construction Industry shall add previously registered capital amount, the number of engineers and the size of office to the following conditions when intending to make registration for a housing construction project or a housing site preparation project:

1. more than 300 million won of capital (more than 600 million won of appraised asset value for individual constructors);

2. more than one construction engineer under Asterisk 1 of the Enforcement Decree of Construction Technology Management as for the case of carrying out a housing construction project and more than one civil engineer under the same Asterisk as for the case of carrying out a housing site preparation project;

3. more than 33 square meters of office. (3) A person, who made registration of a housing construction project, shall have engineers appropriate for the standards of section (2) to carry out a housing site preparation project together at the same time, and a person, who made registration of a housing site preparation project, shall also have engineers appropriate for the standards of section (2) to carry out a housing construction project together at the same time.

(4) Where a Special Purpose Company (hereinafter referred to as the "SPC") established under other Acts carries out a housing construction project within the scope entrusted by the government, condition 1 of section (2) shall not apply, and where a SPC established under Article 17 (1), 2 of the Rental Housing Act carries out a housing construction project under Article 9 (3) of the Act, condition 2 and 3 of section (2) shall not apply. Article 11 (Procedure for Registration of Housing Construction Project) (1) Any person who intends to make registration of a housing construction project or a housing site preparation project under Article 9 of the Act shall submit the application form to the Minister of Land, Transport and Maritime Affairs as stipulated in the Ordinance of Land, Transport and Maritime Affairs.

(2) The Minister of Land, Transport and Maritime Affairs shall register persons who made registration of a housing construction project or a housing site preparation project (hereinafter referred to as the "registered executor") in the register of housing construction project or housing site preparation project, and shall deliver registration certificates.

(3) A registered executor shall report to the Minister of Land, Transport and Maritime Affairs if there is modification in the register within 30 days from the modification date as stipulated in the Ordinance of Land, Transport and Maritime Affairs. Provided, That the same shall not apply to the case of minor modifications prescribed by the Ordinance of. Land, Transport and Maritime Affairs.

Article 12 (Project Undertaking by Joint Executors) (1) Where a land owner, a housing association (excluding remodeling associations), an employer (hereinafter referred to as the "land owner, etc.") and a registered constructor jointly construct housing, they shall make an application for a project plan under Article 16 of the Act in accordance with the following requirements. In this case, a registered constructor also includes a housing association, a local government, the Korea National Housing Corporation under the Korea National Housing Corporation Act, and a local public corporation established for a housing construction project under Article 49 of the Local Public Corporation Act:

1. A registered constructor shall satisfy the requirements of Article 13 (1) or shall be registered for construction works (only referred to construction and civil engineering works) under Article 9 of the Framework Act on the Construction Industry. Provided, That the same shall not apply to local governments, the Korea National Housing Corporation and local public corporations.

2. A land owner, etc. shall hold the ownership of housing site (in the case where a district housing association or a workplace housing association jointly carries out a project with a registered constructor under Article 10 (2) of the Act, it shall hold the ownership of more than 95/100 of the housing site).

3. Where a housing site whose ownership is held by a land owner, etc. under section (2) is settled for mortgage, provisional registration for security, provisional foreclosure, a right to lease or a right to use, etc. (hereinafter referred to as the "mortgage, etc."), the mortgage shall be cancelled. Provided, That the same shall not apply to the case where the right holder of mortgage consents to project undertaking.

4. A land owner and a registered constructor shall reach an agreement on the use, disposal of a housing site and housing (including incidental facility and welfare facility), construction cost allocation, construction period and other responsibilities within the scope prescribe by the Act and this Enforcement Decree.

Article 13 (Standards for Housing Construction by Registered Executors) (1) A registered executor, who intends to construct housing, shall satisfy the following requirements:

1. more than 500 million won of capital (more than 1 billion won of appraised asset value for an individual executor);

2. more than 3 construction and civil engineers under Asterisk 1 of the Enforcement Decree of the Construction Technology Management;

3. more than 100 households or housing units of construction record for the last 5 years.

(2) A registered constructor may be allowed to construct a building of no more than 5 stories under Article 12 of the Act (it will allow the construction of a 6-story building in the case where more than one set of direct stairs are built on every 300 square meters). Provided, That if a registered executor, who has a construction record of apartments of more than 6 stories or multifamily housing with more than 300 housing units for the last three years, may construct a house of more than 6 stories.

(3) Where a registered constructor carries out housing construction under Article 12 of the Act, the construction cost (the total construction cost excluding housing site purchasing cost) shall not exceed 10 times the sum of capital, capital reserve and profit reserve (5 times appraised asset value as for an individual executor). Article 14 (Criteria for Registration Cancellation or Business Suspension for Registered Executors)

(1) Criteria for registration cancellation or business suspension for registered executors under Article 13 of the Act shall be prescribed in Asterisk 1. (2) Deleted

(3) Deleted

(4) Where a registered executor, who falls on a cause for registration cancellation or business suspension because of falling short of registration criteria, satisfies the criteria and submit a documentary evidence by the hearing date under Article 93 of the Act or by the date on which an opinion must be presented under Article 22 (3) of Administrative Procedures Act, the punishment to be imposed on him/her may be reduced by half. Provided, That where the punishment is registration cancellation, that punishment will be relieved to 6 months of business suspension. (5) The Minister of Land, Transport and Maritime Affairs shall publicize administrative dispositions of registration cancellation or business suspension under Article 13 of the Act without delay. The same shall apply when the Minister cancels an administrative disposition.

Part 2 Carrying-Out of Housing Construction Project Article 15 (Approval of Project Plan)

(1) "The number of housing units prescribed by Presidential Decree" under Article 16 of the Act refers to 20 housing units for detached housing and 20 households for Multifamily Housing. "The area prescribed by Presidential Decree" under Article 16 of the Act refers to 10 thousand square meters. (2) Where a project for constructing less than 300 housing units and other facilities as a same building (excluding houses falling under Article 3 (1), 2 and 3) at a commercial area (excluding a distribution and commercial area) or a semi- residential area in an urban area under the National Planning and Utilization Act under Article 16 (1), satisfies the following requirements or is carried out with the funds supplied by the National Agricultural Cooperatives Federation under the Act on Improving Housing in Rural and Fisheries Areas, the project may be exempt from the subjects required for project approval.

1. where the size of a single housing unit falls on a scale of national housing under Article 21 (1);

2. where the Gross Floor Area of housing is less than 90% of the Gross Floor Area of building.

(3) Where a project executor (including builders under Article 2 (1), 12 under the Building Act) constructs a housing complex after dividing into several sections of construction work, the scale of housing construction, which is not stipulated in section (1) and (2), shall be calculated by the number of housing units of the whole complex or the number of households. In this case, the whole sections of work shall be considered as one group of land in the application of criteria for housing construction, the installation of incidental and welfare facilities and housing site preparation.

(4) "The cases prescribed by Presidential Decree" under Article 16 (1) of the Act shall be defined as below:

1. where a housing construction project is carried out in an area of more than 3.3 million square meters, which is designated and publicized by the Minister of Land, Transport and Maritime Affairs to promote housing site development projects under the Housing Site Development Promotion Act or urban development projects under the Urban Development Act.

2. where a housing construction project is carried out in an area designated and publicized by the Minister of Land, Transport and Maritime Affairs to solve a housing shortage problem in the Seoul Metropolitan Area or Metropolitan Areas, or to promote balanced regional development or control demand and supply at a regional level.

(5) A project executor, who intends to get approval for a housing construction project (including the case of carrying out a housing site preparation project before a housing construction project) or approval for a housing site construction project under Article 16 of the Act, shall submit the following documents:

1. as for the case for housing construction project approval: the following documents. Provided, That a project executor, who applies for project approval with a sample drawing under Article 16, may not have to submit document (d): (a) an application form of a housing construction project; (b) a plan for a housing construction project;

(c) drawing of housing, incidental facilities and welfare facilities; (d) the documents of subsection 2 (c) (only limited to the case of carrying out a housing site preparation project preferentially) (e) documents, which states Article 96 (1), 3 and Article 97 (6), 3 of the Enforcement Decree of the National Planning and Utilization Act (only limited to the case of expropriating or using land under Article 18 (2) of the Act)

(f) documentary evidence for each item of Article 12 (only limited to a joint project undertaking, and where a housing association under Article 32 (1) of the Act carries out a project independently, it refers to documentary evidence for each item of Article 12, 2 and 3);

(g) documents necessary for consultation under Article 17 (3) of the Act; (h) documents about the reversion of public facilities under Article 30 (1) of the Act;

(i) a written authorization for the establishment of housing association (only limited to a housing association under Article 32 (1) of the Act) (j) documentary evidence for each item of Article 35 (2), of the Act, or for each item of Article 13 (1) of this Enforcement Decree. (only limited to a constructor who is not registered under Article 9 of the Framework Act on the Construction Industry); and

(k) other documents prescribed by Presidential Decree.

2. as for the case for housing site preparation project: the following documents. (a) an application form of a housing site preparation project; (b) a plan of a housing site preparation project; (c) a drawing of a housing site preparation project; Provided, That where a project executor is the State, a local government, the Korea National Housing Corporation or the Korea National Land Corporation (hereinafter referred to as the "Korea National Land Corporation") under the Act on the Korea National Land Corporation, the project executor shall submit a document prescribed by Presidential Decree.

(d) documents of (e), (g) and (i) of subsection 1; (e) a plan for supplying in a prepared land; and

(f) other documents prescribed by Presidential Decree. Article 16 (Approval of Sample Drawing)

(1) The Korea National Housing Corporation, a local public corporation or a registered executor, who intends to construct housing of the same size in a large scale, may make and submit a sample drawing by housing type to the Minister of Land, Transport and Maritime Affairs to get approval as stipulated in the Decree of Land, Transport and Maritime Affairs.

(2) The Minister of Land, Transport and Maritime Affairs shall hold consultation with a head of competent administrative agency when granting approval under section (1), and the competent administrative agency shall present its view to the Minister of Land, Transport and Maritime Affairs within 15 days from the request date as long as there is no irresistible reason.

(3) The Minister of Land, Transport and Maritime Affairs shall notify to a mayor/Do governor when granting approval for a sample drawing under section (1). Article 17 (Procedures for Project Approval)

(1) The Minister of Land, Transport and Maritime Affairs or a mayor/Do governor shall notify whether or not approval will be granted within 60 days from the request date where he/she receives an application form of project approval under Article16 of the Act (2) The Minister of Land, Transport and Maritime Affairs shall promptly notify to a competent mayor/Do governor when granting approval for a housing construction project falling under Article 15 (4).

(3) Where the Minister of Land, Transport and Maritime Affairs or a mayor/Do governor grants approval for project plan modification under Article 16 (3) of the Act to a project executor financially supported by the National Housing Fund under Article 60 of the Act (hereinafter referred to as the "National Housing Fund"), he/she shall promptly notify it to the fund trustee who provides the project executor with loans.

(4) Where a project executor, who gets financial support from the National Housing Fund, applies for approval of project modification under Article 16 (3) of the Act to replace a project executor, the project executor shall attach a written consent of a fund trustee to modification.

(5) The publication under Article 16 (6) of the Act shall include the following items:

1. project title;

2. name and address of a project executor(in the case of a corporation, the name, location of the corporation, and the name and address of CEO)

3. location and size of project undertaking, and scale of housing construction;

4. period of project undertaking; and Article 18 (Extension of Construction Period)

The "justifiable reasons prescribed by Presidential Decree" mean any of the following cases:

1. Where the Administrator of Cultural Heritage Administration grants a written notice of excavation under Article 56 of the Cultural Properties Protection Act.

2. Where a project is delayed due to the dispute of ownership of the land wherein the project will be carried out (only limited to where legal proceedings are being taken).

3. Where a project is delayed due to the implementation of requirements additionally attached on the condition of project approval.

4. Where a project is delayed due to natural disasters or irresistible reasons for which a project executor is not responsible.

5. Where a project executor gets approval of not undertaking the project from project approval authority due to unavoidable reasons such as excessive stagnation of the housing construction market.

Article 19 (Criteria for Exemption of Commission, Etc.) The "proportion prescribed by Presidential Decree" under Article 17 (4) of the Act is 50%.

Article 20 (Restriction on Housing Construction, Etc.) (1) The "constructors prescribed by Presidential Decree" under Article 20 (1) of the Act are the persons who make registration for construction or civil engineering work under Article 9 of the Framework Act on the Construction Industry. (2) The "constructors prescribed by Presidential Decree" under Article 20 (2) of the Act are the persons who make registration of the following works under Article 9 of the Framework Act on the Construction Industry.

1. waterproof installation work: artistic, waterproof and masonry works

2. sanitary installation work: machinery installation work

3. air-conditioning and heating installation work: machinery installation and heating installation works.

(3) A "large-scale housing construction project prescribed by Presidential Decree" under Article 20 (3) of the Act refers to a project whose total construction cost (excluding the cost of land purchasing) is more than 50 billion won, and the way of a "bid prescribed by Presidential Decree" is a collective bid under Article 79 (1), 5 of the Enforcement Decree of the Act on Contracts to which the State is a Party.

Article 21 (Housing Scale and Construction Proportion by Scale) (1) The scale of housing which may be constructed and supplied by a project executor under Article 21 (1), 4 of the Act shall be less than 330 square meters per housing unit as for detached housing and 297 square meters per household as for Multifamily Housing.

(2) The Minister of Land, Transport and Maritime Affairs may determine the scale of housing at his/her disposal, which may be constructed and supplied by a project executor, without having to comply with section (1), if considers necessary for sound urban development, tourism promotion and other reasons.

(3) The scale of housing under section (1) and (2) shall be calculated on the basis of exclusive residential area.

(4) The Minister of Land, Transport and Maritime Affairs may set the specified proportion for National Housing within the range of 75% of the total housing (100% when a housing association or an employer under Article 10 (2) and (3) of the Act) to be constructed by a project executor under Article 21 (1), 4 of the Act, if considers necessary for balanced supply and demand.

(5) The proportion of National Housing to be constructed under section (4) shall be set up according to each district project plan.

Article 22 (Provisions of Housing Construction Criteria, Etc.) Criteria for housing construction under Article 21 (1) 1, 3 and 5 of the Act, etc. shall be prescribed by Presidential Decree.

Article 23 (Housing Design and Construction)

(1) The "standards for a housing drawing and specification prescribed by Presidential Decree" under Article 22 (1) of the Act shall be as follows:

1. A housing drawing and specification shall be include, by section, drawing, specification, structural estimates, specification of construction quantity and a plan for quality control.

2. The housing scale, installation, materials and construction method, etc. shall be included in the drawing and specification.

3. drawing, specification and structural estimates shall be complementary.

4. a plan for quality control shall state necessary matters to secure quality. (2) The Minister of Land, Transport and Maritime Affairs may set and publicize detailed standards in respect of the standards under section (1).

Article 24 (Installation of Arterial Facility, Etc.) (1) The "number of households prescribed by Presidential Decree" under Article 23 (1) shall be 100, and the "area prescribed by Presidential Decree" shall be 16,500 square meters. (2) Where the Minister of Land, Transport and Maritime Affairs or a mayor/Do governor grants approval for a housing construction project or a housing site preparation project of more than the scale under section (1), he/she shall promptly notify it to the obligators of arterial facility installation (hereinafter referred to as the arterial facility installation under Article 23 (1) of the Act).

(3) Where an obligator of arterial facility installation has justifiable reasons of not completing the installation by the projected use inspection date under a project plan, he/she shall clearly notify the date on which the installation may possibly completed to a project executor within one month from the date of notice under section (2). (4) The range of installation by facility type under Article 23 (6) of the Act shall be stipulated in Asterisk 2. Article 25 (Redemption of Installation Cost of Arterial Facility) (1) Where a project executor intends to install arterial facilities at his/her own expenses under Article 23 (7) of the Act, an obligator of arterial facility installation shall sign a contract on the redemption of installation cost of arterial facility with a project executor under section (8) of the same Article.

(2) The period of redemption to be stated in a contract on the redemption of installation cost of arterial facility under section (1) shall be less than 3 years from the use inspection date.

(3) The sum of money to be redeemed by an obligator of arterial facility installation under the contract of section (1) shall be calculated by adding up the followings:

1. installation cost;

2. interest accumulated on the installation cost until the cost is completely redeemed. In this case, the interest rate shall be fixed deposit's interest rates of the time when the contract on the redemption of installation cost of arterial facility is signed (it refers to the arithmetic mean of interest rates of one-year maturity deposits of the six top commercial banks (on the basis of the lump-sum of savings) established under the Banking Act; hereinafter the same shall apply in Article 85 (4)). Provided, That where an additional provision of interest rate is stipulated in the contract, the interest rate shall be determined according to the provision.

Article 26 (Appointment of Supervisor and Placement of Supervisory Members) (1) A mayor/Do governor shall appoint a supervisor for a housing construction project in accordance with the following items as stipulated in Article 24 (1) of the Act. In this case, a mayor/Do governor shall not appoint an affiliated company (referring to an affiliated company under Article 2, 3 of the Monopoly Regulation and Fair Trade Act) of the project executor as a supervisor, but may appoint a supervisor to supervise two projects of housing complex construction at the same time.

1. a construction project of housing of less than 300 households: a person who is registered for architects' work, a construction supervisory company or a supervisory company under the Construction Technology Management Act;

2. a construction project of housing of more than 300 households: a construction supervisory company or a supervisory company under the Construction Technology Management Act.

(2) The Minister of Land, Transport and Maritime Affairs may designate and publicize necessary documents for designation under section (1) and other detailed standards for designation. (3) An appointed supervisor under section (1) shall place supervisory members under the following standards as stipulated in Article 24 (2) of the Act.

1. An appointed supervisor shall place qualified supervisory members under the Ordinance of the Ministry of Land, Transport and Maritime Affairs, who will be stationed at a building site to supervise the construction work.

2. An appointed supervisor shall place a general supervisory member and supervisory members for each construction work.

3. An appointed supervisor shall place a general supervisor for the whole period of construction and supervisory members for each construction work until the each construction work is completed.

4. A supervisory member appointed for each construction work shall not be responsible for two housing construction works at the same time. (4) A supervisor shall sign or seal when reporting the completion of a construction work under Article 16 (8) of the Act or confirming various exams and building materials, etc. falling under his/her duty of supervision. (5) Other matters, related to the supervision of housing construction, which are not stipulated in the Act or this Enforcement Decree shall be prescribed in the Certified Architects Act and the Construction Technology Management Act.

Article 27 (Supervisor's Duty)

(1) "Other matters related to housing supervision prescribed by Presidential Decree" under Article 24 (2), 5 of the Act shall be as follows:

1. to make sure whether or not a drawing is suitable for the geographical features of construction site;

2. to make sure the suitability for drawing modification;

3. to review and confirm a construction plan, a progress chart of work and a working drawing; and

4. to secure the suitability of waterproofing, soundproofing and insulation installation, and review and confirm the matters publicized by the Minister of Land, Transport and Maritime Affairs to prevent unexpected accidents, manage safety and improve construction quality.

(2) The Minister of Land, Transport and Maritime Affairs may set and publicize detailed standards for the supervision of housing construction.

Article 28 (Handling of Raised Objection)

A mayor/Do governor, who receives a written objection under Article 24 (5) of the Act, shall notify the result of objection to a supervisor within 10 days from the date on which the objection is raised.

Article 29 (Replacement of Supervisors, Etc.)

(1) The "replacement cases prescribed by Presidential Decree" under Article 24 (7) of the Act shall be as follows:

1. where a supervisor passes over any violation discovered by him/her during supervision;

2. where a supervisor is discovered to have sent mistaken rectification notices to a project executor under Article 24 (4) more than three times after an objection to the notice is raised under Article 24 (5) of the Act;

3. where a supervisor hasn't placed a supervisory member more than one month in the construction field for the period of construction work. In this case, the period of construction work shall be the sum of all the periods of supervisory members being absent.

4. where a supervisor has made and submitted documents required for designation by false or unlawful means.

(2) A mayor/Do governor, who intends to replace a supervisor under Article 24 (7) of the Act, shall consider the opinions of a relevant supervisor, a constructor and a project executor.

Article 30 (Submission of Supervisor's Documents under Other Acts) "Documents prescribed by President Decree" under Article 24-2 (2) of the Act shall be as follows:

1. a plan for supervision by progress;

2. a progress report; and

3. a shop drawing for each construction work. Article 31 (Preferential Sale, Etc. of State-owned or Public Land, Etc.) The "proportion prescribed by Presidential Decree" under Article 25 (1), 1 of the Act shall be 50%.

Article 32 (Preferential Sale of Area of Land Secured by the Authorities in Recompense of Development Outlay)

Where an urban developer sells an area of land secured by the authorities in recompense of development outlay for national housing construction to a project executor under Article 26 (1) of the Act, he/she shall do so by way of a competitive bid. Provided, That where there exists only one project executor who intends to purchase the land, the developer and the project executor may sign a private contract. Article 33 (Entrusting of Land Purchasing)

(1) Where a project executor such as the State, the Korea National Housing Corporation or the Korea National Land Corporation entrusts land purchasing and compensation for loss to a head of local government under Article 28 (1) of the Act, the project executor shall specify the conditions for the land and compensation for loss. (2) "Commission rates prescribed by Presidential Decree" under Article 28 (2) of the Act shall be the rates stipulated in Asterisk of Enforcement Decree of the Act on Acquisition of Land, etc. for Public-service Projects and Compensation Therefor. Article 34 (Use Inspection, etc.)

(1) The "cases prescribed by Presidential Decree" under Article 29 (1) of the Act shall be the cases falling under Article 15 (4) which gained project approval from the Minister of Land, Transport and Maritime Affairs.

(2) A use inspection authority under Article 29 of the Act shall make sure whether or not housing or housing site subject to use inspection is appropriate to a project plan. (3) The use inspection under section (2) shall be undergone within 15 days from the application date.

(4) A head of a relevant administrative agency, who receives a consultation request under the latter part of Article 29 (3) of the Act, shall present his/her opinion within 10 days from the request date unless there is justifiable reason. Article 35 (Use Inspection of Construction Guarantor, etc.) (1) Where a project executor cannot continue his/her housing construction project due to bankruptcy, etc., a person who guaranteed construction (hereinafter referred to as the "construction guarantor") under Article 29 (3) of the Act shall complete the remaining construction and go through use inspection. Provided, That where there is no construction guarantor or the construction guarantor cannot continue the construction project due to bankruptcy, a delegation of prospective occupiers (hereinafter referred to as the "delegation of prospective occupiers") shall designate a constructor, completes the remaining construction and go through use inspection. (2) A construction guarantor or a delegation of prospective occupiers, who have gone through inspection under section (1), may make registration in a cadastre of building management and conservation of ownership under the name of a construction guarantor or an occupier of a household.

(3) Necessary matters for the establishment or operation of a delegation of prospective occupiers under section (1) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 36 (Provisional Use Inspection)

(1) The "cases prescribed by Presidential Decree" under Article 29 (4) of the Act refer to the case where each Dong's construction is completed as for a housing construction project and to the case where each section of preparation work is completed as for a housing site preparation project.

(2) A person, who intends to get provisional use inspection under Article 29 (4) of the Act, shall apply for provisional use inspection to a use inspection authority. (3) A use inspection authority, who receives an application of provisional use inspection, may grant approval when a house or a housing site subject to provisional use inspection is suitable for a project plan and does not cause any inconvenience for use. In the case of multifamily housing subject to provisional use inspection, each household may get provisional use approval respectively. CHAPTER 3 HOUSINGASSOCIATION

Article 37 (Authorization for Establishment of Housing Association, etc.) (1) A person, who intends to get authorization for the establishment, modification or dispersion of a housing association under Article 32 (1) of the Act, shall submit an application form of authorization to a competent mayor (including a governor of a special self-governing province), a head of Gun or Gu office, who governs a housing site of a housing association (referring to the location of a remodeling association in the case of a remodeling association), together with the following documents and a written approval for 80/100 of a housing site use (only applied to district and workplace housing associations). In the case where a project executor is approved to use a certain proportion of housing site, that proportion shall be added when the proportion of land for use is calculated.

1. as for the case of establishment authorization: (a) as for district or workplace housing associations: the minutes of inaugural general meeting;

a written consent to electing a head of association; agreements with all association members' signs in handwriting; a register of names of association members;

a project plan; and

other documents prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(b) as for remodeling associations:

document under (a) through

documentary evidence for the following resolutions. In this case, the written resolution shall include the following items of Article 46 (4), 1. as for the case of remodeling a whole housing complex: matters resolved by two-thirds or more voting rights (referring to voting rights under Article 37 of the Act on the Ownership and Management of Congregate Buildings) of partition owners (referring to partition owners under Article 2 (2) of the Act on the Ownership and Management of Congregate Buildings; hereinafter the same shall apply) of a whole housing complex and each Dong ; as for the case of remodeling a Dong: matters resolved by two-thirds or more voting rights of partition owners of the Dong. Documentary evidence in such as a case where construction standards have been decided to be relaxed under Article 5 of the Building Act. Documentary evidence proving that it has been more than 10 years since a relevant house went through use inspection (15 years in the case of extension, and the period between 15 to 20 years prescribed in the Ordinance of city or Do).

2. as for the case of authorization for modification: documentary evidence for modified matters.

3. as for the case of authorization for dissolution: a written consent of association members to dissolution.

(2) Association rules under 1 (a) shall include the following items:

1. the title and location of association;

2. required qualifications for association membership;

3. the location and area of a housing site;

4. matters of expulsion, withdrawal and replacement of association members;

5. the number of members, scope of duties (including rights and obligations), pay, appointment method, modification and dismissal of association;

6. members' payment period on cost and procedures, and association's accounting;

7. the period of project undertaking and method;

8. procedures for the convocation of general meetings, convocation period and matters of members requesting general meetings;

9. matters requiring general meeting's resolution, quorum, resolution procedures. In this case, matters requiring general meeting's resolution shall be prescribed by Presidential Decree;

10. procedures for clearance, and method of collecting and paying an amount for clearance, and procedures for payment;

11. specifics of membership dues' use and the disclosure of general meeting's resolutions and the method of notification to members;

12. procedures for modifying association rules; and

13. other matters necessary for housing association' project and association operation.

(3) The number of members of a housing association shall be more than a half of the number of households scheduled to be constructed (referring to the number of households in an authorized project plan, and where the number has been changed in the process of project plan approval, it refers to the changed number of households), and the total number of a housing association shall be more than 20. Provided, That the same shall not apply to remodeling associations.

(4) A person who has acquired a building from a person who consents to establish a housing association, shall also be considered to give consent to the establishment. (5) A mayor or a head of Gun or Gu office shall decide whether or not to authorize the establishment of a housing association after reviewing the following items concerning a housing site, and the housing site shall not be overlapped with a housing site of another housing association which has already got authorization:

1. deliberation standards for housing construction;

2. whether or not the housing site is suitable for an urban plan, which has been established under the National Planning and Utilization Act or which is scheduled to be established during the period of a housing construction project;

3. a land use plan which is already made;

4. where there exists part of land, which hasn't secured a written context, whether or not the location of the land will hamper a project. (6) A housing association may allow a project executor who jointly carries out a project under Article 10 (2) of the Act to do the duties of the housing association (with the exception of the duty of mediating the entry to the association). (7) Matters of housing association establishment, modification and authorization for dissolution, which are not stipulated in this Enforcement Decree, shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

Article 38 (Qualification for Membership)

(1) The following persons will be qualified for the members of a housing association under Article 32 of the Act.

1. a person who hasn't got home ownership (including the status prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs in consideration of housing type and the way of selecting occupiers, etc.) for the period from the application date of authorization for the establishment of housing association (referring to the date one year before the date of authorization for the establishment of housing association in the case of a housing site located in an Overheated Speculative Area under Article 41 of the Act) to the date on which moving-in is allowed, or a person who owns a housing unit of less than 60 square meters of exclusive residential area.

2. members of a workplace housing association falling under the followings: (a) A person falling under 1 (a). Provided, That it only refers to houseless persons in the case of reporting the establishment under the provisions of Article 32 (3) of the Act.

(b) A person who is working in a state organization, a local government or a corporation located in Special Metropolitan City, a Metropolitan City, a city or a Gun (excluding Guns under the jurisdiction of a Metropolitan City) at the time of applying for authorization for the establishment of a housing association.

3. members of a remodeling association falling under the followings. In the case where the ownership of a Multifamily House or welfare facility belongs to more than one person, a representative of the people shall be considered as a member of the association member.

(a) an owner of a multifamily house constructed with approval for project plan under Article 16 of the Act;

(b) an owner of a welfare facility in the case of remodeling housing and welfare facility; and

(c) an owner of a Multifamily House constructed for presale after getting permission under Article 11 of the Building Act and an owner of facilities other than a Multifamily House

(2) A person who has temporarily lost a status of occupiers due to unavoidable reasons such as working, illness, studying abroad and marriage, etc. may be qualified for the membership of an association when a mayor, a head of Gun or Gu office gives admission. (3) Procedures for confirming qualifications for association membership under section (1) shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs. Article 39 (Replacement and New Entry of Members of a District and a Workplace Housing Association)

(1) A district and a workplace housing association may not be allowed to replace its members or admit new members after getting authorization for establishment. Provided, That the same shall not apply to the case where an association has gained approval from a mayor, a head of Gun or Gu office for additional recruitment of members, not exceeding the number of houses scheduled to be constructed as stipulated in the Ordinance of Ministry of Land, Transport and Maritime Affairs or where an association needs an additional recruitment due to vacancy occurred by one of the following cases:

1. death of a member;

2. where a status of occupiers (including a right, qualification or status to move into a house) has been transferred, donated or changed by a court judgement after a project plan gained approval under Article 16 of the Act [where a district housing association or a workplace housing association has gained approval for a project plan under Article 16 of the Act without getting the ownership of the whole housing site under Article 12, 2, it refers to after the association has gained the ownership of the whole site (including mortgage cancellation where a relevant housing site is settled for mortgage)]. Provided, That the case where resale is prohibited under Article 41-2 of the Act shall be excluded;

3. where the number of an association falls short of half the number of houses scheduled to be constructed due to the withdrawal of members;

4. where a member is disqualified from the association membership;

5. where the number of houses scheduled to be constructed has been modified in the process of approval under Article 16 of the Act and thereby the number of association members falls short of half the modified number of houses scheduled to be constructed.

(2) The decision for the qualification under Article 38 (1), 1 and 2 of members additionally recruited under section (1) or (2) to fill a vacancy shall be on the basis of the date on which a housing association applies for authorization for establishment. Provided, That a person, who inherited a status of occupiers under section (1), 1, shall not be required for qualification under Article 38 (1), 1 and 2. (3) An application for approval for additional recruitment of association members under section (1) or an application for authorization for modifying a housing association shall be made under the application date of project plan approval. Article 40 (Application for Project Plan Approval, etc. by a Housing Association) (1) A housing association shall apply for a project plan approval under Article 16 of the Act within 2 years form the date on which the association gained authorization for establishment (in the case of a remodeling association, it refers to permission under Article 42 (3) of the Act. The same shall apply in this Article and Article 42). (2) A housing association shall not use the land owned by a registered executor for the purpose of housing construction. Provided, That the same shall not apply to the case where a registered executor purchases the land of a registered executor though an auction or a public sale.

Article 41 (Report of Establishment of a Workplace Housing Association) (1) A person who intends to establish a workplace housing association to be supplied with National Housing under Article 32 (3) of the Act shall submit a written application for the establishment of a workplace housing association to a competent mayor, a head of Gun or Gu office together with the following documents: In this case, a relevant government official shall confirm a copy of residence certificate in order to share administrative information under Article 21 (1) of the Act on Digitalization of Administrative Works, etc. for E-Government, and shall order a person who dissents his/her confirmation to attach related documents.

1. register of the names of association members;

2. documentary evidence showing that persons to be members of a workplace housing association members are currently working in the workplace (only referring to the documents confirmed by a head of the workplace); and

3. documentary evidence of homelessness. (2) Procedures other than stipulated in section (1) for report of a workplace housing association established to be supplied with National Housing and the method of housing supply shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

Article 42 (Audit of Housing Association)

(1) A housing association shall receive an audit under Article 3 of the Act on External Audit of Stock Companies within 30 days from the following dates under Article 34 (3) of the Act:

1. the date which has been three months since a project plan gained approval under Article 16 of the Act;

2. the date on which an application for use or provisional use is made under Article 29 of the Act;

(2) An audit under section (1) shall be respectively done on a project which has gained approval under Article 16 of the Act.

(3) An audit under section (1) shall be done in compliance with the standards stipulated in Article 5 of the Act on External Audit of Stock Companies.

(4) Auditors shall notify the result of audit to a competent mayor, a head of Gun or Gu office within 15 days of the finishing date of audit. (5) Where a competent mayor, a head of Gun or Gu office recognizes that there exist unlawful or fraudulent contents in the audit result submitted under section (4), he/she may request a relevant association to rectify the contents. CHAPTER 4 HOUSING SUPPLY

Article 42-2 (Area requiring Disclosure of the Range of Housing site Purchasing Price and Housing Presale Price)

(1) Deleted

(2) The range prescribed by Presidential Decree under Article 38-2 (2), 2 of the Act shall be the price equivalent to 120/100 of the appraised value under Article the Act on Public Notice of Real estate Price and Property Appraisal.

(3) A person shall apply to a competent mayor, a head of Gun or Gu office for property appraisal under the Act on Public Notice of Real estate Price and Property Appraisal in order for a price with the range stipulated in section (2) to be recognized as the price of a housing site under Article 38-2 (2), 2 of the Act. In this case, property appraisal and related matters shall be provided in for the appraisal cases of the latter part of Article 38-2 (1) of the Act.

(4) Public agencies under Article 38-2 (2), 2 (b) of the Act shall refer to the following organizations:

1. the State;

2. a local government;

3. a public corporation, a quasi-government agency or other public agencies designated under Article 5 of the Act on the Operation of Public Agencies;

4. a local corporation operated by a local government or a local corporation under the Local Corporation Act.

(5) The "cases prescribed by Presidential Decree" under Article 38-3 (2), 2 (c) of the Act shall refer to the cases where a transaction price of a housing site is recorded in a real estate register under the Real-Estate Register Act.

(6) The "areas falling under the criteria prescribed by Presidential Decree" under Article 38-2 (5) of the Act shall refer to any one of the following areas:

1. an Overheated Speculative Area in a Seoul Metropolitan Area under Article 2 ,1 of the Seoul Metropolitan Area Readjustment Act (referring to a designated Overheated Speculative Area under Article 41 of the Act; hereinafter the same shall apply).

2. an area falling under any one of the followings designated by the Minister of Land, Transport and Maritime Affairs after the deliberation of the Housing Policy Deliberation Committee under Article 84 of the Act: (a) an Overheated Speculative Area outside the Seoul Metropolitan Area designated and publicized by the Minister of Land, Transport and Maritime Affairs in consideration of housing price increase and subscription rate for housing, etc. under Article 2, 1 of the Seoul Metropolitan Area Readjustment Act.

(b) an area whose housing price and subscription rate are largely concerned to increase excessively and thereby is requested by a competent mayor, a head of Gun or Gu office to be designated as an Overheated Speculative Area. Article 42-3 (Clear Statement of Attention Phrase) (1) A mayor, a head of Gun or Gu office shall order a project executor to clearly state that "each item's price disclosed in the advertisement for occupiers may be different from the real costs incurred during the project undertaking" where he/she grant approval for the advertisement for occupiers.

(2) A project executor, who is the State, a local government, the Korea National Housing Association or a local corporation, shall clearly state that "each item's price disclosed in the advertisement for occupiers may be different from the real costs incurred during the project undertaking".

Article 42-4 (Establishment and Operation of a Committee) (1) A mayor, a head of Gun or Gu office shall establish a housing presale price deliberation committee (hereinafter referred to as the "committee") under Article 38- 4 (1) of the Act within 20 days from the date on which an application for project plan approval is made under Article 16 of the Act (including an application for authorization of a project under Article 28 of the Urban and Living Environment Maintenance Act and an application for construction permission under Article 11 of the Building Act). (2) Where a project executor is the State, a local government, the Korea National Housing Corporation or a local corporation, the project executor shall establish and operate the committee. In this case, the provisions of Article 42-5 through 12 shall apply mutatis mutandis.

Article 42-5 (Functions)

The committee shall deliberate the following items:

1. appropriateness of calculation method of housing presale price and balcony extension under Article 38-2 (1) of the Act;

2. appropriateness of housing presale price disclosure under Article 38-2 (4) and (5);

3. appropriateness of basic construction costs by city, Gun and Gu under the latter part of Article 38-2 (3) of the Act;

4. appropriateness of projected ceilings on the price of type-2 National Housing Bonds related to the price ceiling system applied housing. Article 42-6 (Composition)

(1) The committee shall include more than 6 nongovernmental members. (2) The chairman of the committee shall be appointed among the nongovernmental members by a mayor, a head of Gun or Gu office.

(3) A mayor, a head of Gun or Gu office shall appoint persons abundant with experience and knowledge in housing construction and falling under any of the followings as nongovernmental members under section (1). In this case, the committee shall include more than one person falling under the followings:

1. a person who specialized in the law, economics or real estate and has worked as an assistant professor or at a higher rank for more than one year in a university;

2. a person who has worked as a lawyer, an accountant, an appraiser or a licensed tax accountant for more than one year;

3. a person who has worked in the civil engineering, construction and housing industries for more than 5 years.

(4) A mayor, a head of Gun or Gu office shall appoint persons falling under any one of the followings other than nongovernmental members (hereinafter referred to as the "members of public corporations"). In this case, the committee shall include more than one person falling under the followings:

1. a government official at the fifth or higher rank who works for granting authorization and permission for housing construction in the State or a local government, and is recommended by a head of a relevant government organization. Provided, That a government official who works in the relevant government organization may not need recommendation.

(5) The term of office for nongovernmental members under section (3) shall be 2 years and shall not be reappointed.

Article 42-7 (Meeting)

(1) A meeting of the committee shall be summoned when a mayor, a head of Gun or Gu office considers necessary.

(2) A mayor, a head of Gun or Gu office shall notify the matters related to the committee's meeting to the committee within two days from the opening date. (3) The committee's meeting may open with more than half the committee's registered members and its agendas will be voted for by two third of attended members; (4) The chairman of the committee shall be the chairman of the meeting. Provided, That where the chairman cannot fulfill his/her duties due to unavoidable reasons, the chairman shall appoint to represent him/her.

(5) A mayor, a head of Gun or Gu office shall appoint an official in the housing division of a local government as a manager, who fulfills the committee's affairs. (6) The committee's meeting shall be disclosed. Provided, That the voting of the committee may be open to the public.

Article 42-8 (Attendance of Non-Members of Committee) (1) Where the chairman of the committee may order a project executor, a person concerned or a reference to attend the committee's meeting, listen to opinions and submit necessary documents if the chairman considers necessary in deliberating the items of Article 42-5.

(2) A mayor, a head of Gun or Gu office or a project executor may have a say in the matters of the committee's meeting after gaining approval from the chairman of the committee.

(3) The chairman of the committee shall promptly submit the result of the deliberation and voting to a mayor, a head of Gun or Gu office. Article 42-9 (Proxy Attendance of Members)

The members of public corporations may appoint and order a government official or an executive of a public corporation, who is at the equivalent level of office, to attend the meeting by proxy.

Article 42-10 (Obligation of Members)

(1) The members of the committee shall not disclose the meeting process and other matters, which are not allowed for disclosure, and shall not do any act degrading the committee.

(2) A member of the committee falling under any of the followings shall be excluded from the deliberation and voting for agendas, which are subject to deliberation and voting.

1. a member who directly or largely engaged in deliberation through outsourcing or other means;

2. a member who has direct or large interest in deliberation. (3) Any member falling under any item of section (2) shall not participate in deliberation by oneself and notify it to the manager under the opening date of the meeting.

(4) A mayor, a head of Gun or Gu office may dismiss nongovernmental members falling under any of the following cases and the term of office for a successor shall be the remaining term of office for a predecessor:

1. where a member violates Article 38-4 (4) of the Act;

2. where a member violates section (1);

3. where a member falling under section (2) but hasn't made an application for not participating in deliberation;

4. where a member can not continue his/her duties of the committee for more than 6 months due to business trip, a disease or an accident. (5) A mayor, a head of Gun or Gu office may replace any member falling under any case of section (4) with any person falling under Article 42-6 (4) and recommended by a head of a relevant organization. Provided, That where an official in a relevant local government may need recommendation for appointment. Article 42-11 (Minutes, etc. of Meeting)

(1) The manager of the committee shall record the following items and preserve the meeting's minutes under the Act on Public Records Management:

1. the opening date, location and whether or not the committee's meeting to be disclosed;

2. a register of the signs of committee members;

3. agendas on the table and deliberation result;

4. other main agendas to be discussed. (2) The members of the committee who attended the meeting may be paid within the range of allocated budget. Provided, That the same shall not apply to the case where a committee member, who is a government official, attended the meeting with direct interest and relation in the committee. Article 42-12 (Detailed Rules for Operation)

Necessary matters for the operation of the committee other than stipulated in this Enforcement Decree shall be determined by a mayor, a head of Gun or Gu office. Article 42-13 (Supply of Housing for Presale with Leasehold Land) (1) A person (referring to the land owner where a housing constructor rents a housing site for housing construction and presale; hereinafter referred to as the "land owner"), who presells housing with leasehold land (hereinafter referred the as the "housing with leasehold land") under Article 38-5, 1 of the Act, shall settle a 30- year right to use to a person who purchases the housing for the purpose of getting the partition ownership of the building.

(2) A land owner may request a land usage fee according to the area of housing supplied to a housing purchaser. In this case, the land usage fee shall be paid on an installment basis.

(3) The land usage fee under section (2) shall be calculated according to the supplying price of a relevant housing site and the cost of housing site preparation. (4) A land owner shall not request the increase of the land usage fee within 2 years from the date on which he/she agreed on the usage fee or agreed on the increase in the usage fee. Where the land owner requests the increase after 2 years, the increase rate shall be calculated in consideration of average increase of land price of a Special Self-Governing Province, a city, a Gun or a self-autonomous Gu but shall not exceed the limit of increase stipulated in the Enforcement Decree of the Rental Housing Protection Act.

Article 42-14 (Resale Period and Price, etc. of Housing with Resale Obligation) (1) The "period prescribed by Presidential Decree" under Article 38-5, 2 of the Act shall be 20 years.

(2) Where an occupiers of housing with resale obligation under Article 38-5, 2 of the Act (hereinafter referred to as the "housing with resale obligation") disposes of his/her housing to a project executor under the condition of housing resale shall notify it within 3 months from the projected date of disposition. (3) A housing resale price at which a project executor repurchases housing with resale obligation from an occupier shall be stipulated in the resale condition of Article 38- 5, 2 of the Act. In this case, the housing resale price shall be calculated by adding the accumulated average interest rates of one-year fixed deposits of financial institutions until the housing is resold to the housing sale price under the Banking Act and the lowest price of Multifamily Housing publicized at the nearest point of time as of the resale date under Article 17 of the Act on Public Notice of Real Estate Price and Property Appraisal.

Article 42-15 (Resupply of Housing with Resale Obligation) A project executor, who repurchases housing with resale obligation supplied under Article 38-5 of the Act, may resupply the housing without resale obligation or under the different conditions from the previous ones.

Article 42-16 (Percentage of Rental Housing Supply by A Housing Construction Project, etc.)

(1) The "percentage prescribed by Presidential Decree" stipulated in the former part of Article 38-6 (2) of the Act shall be more than 30/100 and less than 60/100 of area as prescribed by the Ordinance of a competent city/Do. (2) The Minister of Land, Transport and Maritime Affairs shall appoint a suitable acquirer within 30 days from the date on which the Minister is requested by a mayor, a head of Gun or Gu office and shall notify it to a mayor/Do governor. And the mayor/Do governor, who has received the notification, shall hold consultation on the acquisition of rental housing with the acquirer. Article 43 (Deed, which Prohibits Transfer)

(1) "Other deeds or status eligible for housing supply as prescribed by Presidential Decree" under Article 39 (1), 4 of the Act shall refer to any of the following items:

1. a written confirmation of unauthorized buildings, a certificate of prearranged building dismantlement or a written confirmation of building dismantlement issued by a mayor, a head of Gun or Gu office.

2. a status to be supplied with housing or a confirmation of persons subject to removal under a removal policy taken by a public project. (2) Where a project executor paid the depreciation amount (referring to a sum of money calculated by way of fixing amount under Article 26 of the Enforcement Decree of the Corporate Tax) of the sum of the followings to a person who has violated the provisions of Article 39 (1) of the Act, it shall be considered that the project executor has acquired the house on the payment date under Article 39 (3) of the Act:

1. the sum of housing presale price that excludes a loan borrowed from a bank;

2. a repaid principal of a loan; and

3. the sum of money which multiplies the sum of 1 and 2 by producer price increase.

(3) The "reasons prescribed by Presidential Decree" under Article 39 (4) of the Act shall refer to the following cases:

1. where the project executor can not send the receipt of housing price since the acquirer is unidentifiable.

2. where the project executor has sent a notice of housing price receipt (the interval shall be more than one month) more than 3 times and the acquirer rejects it.

3. where the acquirer can not receive the housing price since he/she has not lived in the housing for more than 3 months.

4. where the project executor cannot pay the housing price due to provisional foreclosure or foreclosure of the housing.

Article 44 (A Case which Allows Mortgage Settlement with Consent of Occupiers) (1) Deleted

(2) The "cases prescribed by Presidential Decree" shall refer to any of the following cases:

1. where a project executor has borrowed funds from the National Housing Fund or any of the following financial institutions for the purpose of providing occupiers with a loan:

(a) a financial institution under the Banking Act; (b) a small and medium industry bank under the Small and Medium Industry Bank Act;

(c) an insurance company under the Insurance Industry Act; and (d) other financial institutions under other Acts as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

2. where a project executor has borrowed funds from any financial institution under subsection 1 for the purpose of providing occupiers with a loan.

3. where a project executor cannot continue his/her work and has been replaced with another project executor due to bankruptcy (including the decision and authorization by court under the Act on Rehabilitation and Bankruptcy of Debtor), merger, division, registration cancellation and business suspension, etc.

Article 45 (Additional Registration)

(1) An additional registration under Article 40 (3) of the Act in respect of a housing site shall state that under the Housing Act, a project executor shall not dispose the land (referring to the land for which an application for a housing construction project is made), settle any security and right in the premises or make the premises subject to foreclosure, provisional foreclosure or provisional disposition without the consent of prospective occupiers. And in respect of housing, an additional registration shall state that under the Registration of Real Estate Act, this house is registered for preservation and thereby shall not be settled for any security, any right, foreclosure, provisional foreclosure or provisional disposition without the consent of prospective occupiers. (2) A project executor shall not cancel any additional registration under section (1) with the exception of the case where project plan approval has been revoked or a prospective occupier has applied for the ownership transfer under the latter part of the Article 40 (4) of the Act. Provided, That the same shall not apply to the case where 60 days have already passed from the date which allows for the ownership transfer application.

(3) The "cases prescribed by Presidential Decree" under Article 40 (3) of the Act shall refer to the following cases:

1. in the case of housing sites: (a) where a project executor is the State, a local government, the Korea National Housing Corporation, the Korea National Land Corporation or a local corporation.

(b) where a project executor, who is supplied with a housing site under related Acts such as the Housing Site Development Act, etc. to construct housing, cannot secure the ownership of the land because the land registration hasn't been adjusted. In the case where the land registration is completely adjusted, the project executor shall promptly make an additional registration under section (1).

(c) where an association member entrusted a housing site to his/her association.

2. in the case of housing: where there doesn't exist any person with a status of occupiers of the housing. Provided, That the same shall not apply to the case where an application for advertisement of housing occupiers is made after making a registration for ownership preservation. (4) The "cases prescribed by Presidential Decree" under Article 40 (5) of the Act shall refer to any of the following cases:

1. where a project executor falls under Article 44 (2),1 or 2 and thereby settles mortgage in a housing site.

2. where a project executor falls under Article 44 (2), 3 and thereby transfers a housing site to another project executor, or a project guarantor or a prospective occupier secures the ownership of the housing site, or puts the housing site under foreclosure, provisional foreclosure or provisional disposition. (5) The "cases prescribed by Presidential Decree" under Article 40 (6) of the Act shall refer to any of the following cases:

1. where equity capital has decreased due to ordinary loss incurred for the two consecutive years;

2. where debt to asset ratio exceeds 500%;

3. where a project executor intends to entrust a housing site to the Korea Housing Guarantee Corporation (hereinafter referred to as the "Korea Housing Guarantee Corporation") under Article 76 of the Act without making an additional registration under Article 40 (3) of the Act. Article 45-2 (Period which Limits Resale and Unavoidable Reasons for Resale) (1) The "period prescribed by Presidential Decree" under Article 41-2 (1), 1 of the Act shall refer to the period from the first date of signing a supply contract of housing (with the exception of housing falling under Article 41-2 (1), 2 of the Act) constructed in an Overheated Speculative Area after advertisement for occupiers to any of the following dates:

1. in the case where housing is located in the Seoul Metropolitan Area (hereinafter referred to as the "Seoul Metropolitan Area") or Chungcheong Do (Daejeon, Chuncheongnam Do and Chungcheongbuk Do) under Article 2, 1 of the Metropolitan Area Readjustment Act: the date when the ownership of the relevant housing (where only the ownership of the building is transferred, it refers to the ownership of the relevant building) is completely transferred. In this case, the period that limits housing resale shall not exceed 5 years.

2. in the case where housing is located in other areas than in subsection 1: one year (2) The "period prescribed by Presidential Decree" under Article 41-2 (1), 2 of the Act shall refer to the period from the first date of signing a supply contract of price ceiling system applied housing after advertisement for occupiers to any of the following dates.

1. The Seoul Metropolitan Area under Article 2, 1 of the Metropolitan Area Readjustment Act

(a) housing supplied in a public housing site

housing in an Overpopulated Constraint District under Article 6 (1) of the Metropolitan Area Readjustment Act (hereinafter referred to as the "Overpopulated Constraint District"): 5 years as for housing with exclusive residential area of less than 85 square meters and 3 years as for housing with exclusive residential area of more than 85 square meters. housing in a Non-overpopulated Constraint District: 3 years as for housing with exclusive residential area of less than 85 square meters, 3 years as for housing with exclusive residential area of more than 85 square meters in an Overheated Speculative Area and one year as for housing with exclusive residential area of more than 85 square meters in a Non-Overheated Speculative Area. (b) housing supplied in areas other than public housing sites housing in an Overpopulated Constraint District:

a) housing with exclusive residential area of less than 85: 3 years; b) housing with exclusive residential area of more than 85: 3 years as for housing in an Overheated Speculative Area and 1 year as for housing in a non- Overheated Speculative Area;

housing in a non-Overpopulated Constraint District:

2. housing in areas other than the Seoul Metropolitan Area (a) housing in a public housing site: 3 years as for housing in an Overheated Speculative Area and 1 year as for housing in a non-Overheated Speculative Area

(b) housing in an Overheated Speculative Area, which is not a public housing site: 3 years as for housing in Chungcheong Do (Daejeon, Chuncheongnam Do and Chungcheongbuk Do) and 1 year as for housing in other areas than Chungcheong Do.

(c) Deleted

(3) The "period prescribed by Presidential Decree" under Article 41-2 (1), 3 of the Act shall refer to the period from the first date of signing a supply contract of housing after advertisement for occupiers to any of the following dates:

1. housing with exclusive residential area of less than 85: 5 years;

2. housing with exclusive residential area of more than 85: 3 years (4) The "cases prescribed by Presidential Decree" under Article 41-2 (2) of the Act shall refer to any of the following cases which are agreed by a project executor (referring to the Korea National Housing Corporation as for the housing falling under Article 41-2 (1), 2 or 3 of the Act. Provided, that where a project executor is a local corporation it refers to a local corporation).

1. Where all members of a household (including the head of the household; hereinafter the same shall apply) move to another Metropolitan city, city or Gun because of job change, a disease, schooling and marriage. Provided, That the same shall not apply to the case where they move to the Seoul Metropolitan Area.

2. Where all members of a household move to an inherited house.

3. Where all members of a household immigrate to another country or stay overseas for more than 2 years.

4. Where the status of occupiers or the ownership of a house is transferred to a spouse due to divorce.

5. Where a person leaves his/her dwelling due to a public service project under Article 78 (1) of the Act on the Acquisition of Land, etc. for Public Service Project and the Compensation therefore and is supplied with a house (including the case of being supplied with housing through mediation of a project executor) after a mayor, a head of Gun or Gu office confirms.

6. Where a house is put up for auction or public sale since the owner of housing falling under Article 41-2 (1), 2 or 3 of the Act has failed to settle his/her debt borrowed from the State, a local government or a financial institution (referring to financial institutions under Article 44-2 (2), 1).

7. Where part of the status of occupiers or the ownership of housing is inherited to a spouse.

Article 45-3 (Deliberation for Housing Development District by the Public Sector) (1) The "scale and kind of housing, etc." under Article 41-3 (1), 2 of the Act shall refer to any of the followings:

1. the scale and kind of housing;

2. a project executor for housing development by the public sector; and

3. other matters concerned necessary for deliberation by the Minister of Land, Transport and Maritime Affairs.

(2) The "cases prescribed by Presidential Decree" under Article 41-3 (2) of the Act shall refer to the case where a project executor, who carries out a housing site preparation project under Article 13-2 (5), 5 and 5-2 of the Enforcement Decree of the Housing Site Development Promotion Act, supplies a housing site by way of a private contract.

CHAPTER 5 HOUSING MANAGEMENT

Part 1 Methods of Housing Management, etc.

Article 46 (Application Scope of Housing Management) (1) The matters of Multifamily Housing management stipulated in Chapter 5 of the Act and this Chapter shall apply to Multifamily Housing (including incidental facilities and welfare facilities; the same shall apply in this Article, Article 47 and 57 (3)) constructed with project plan approval under Article 16 of the Act. Provided, That Article 47, 55, 57 (3), 59 through 62, 62-2 through 5, 64, 65, 72, 73 shall apply only to Multifamily Housing constructed for rent.

(2) Notwithstanding section (1), Article 47 (only referring to permission for remodeling work of a remodeling housing association), 59 through 62, 62-2 through 5 shall also apply to Multifamily Housing for presale constructed with permission under Article 11 of the Building Act. (3) Notwithstanding section (1), Article 47 (only referring to permission for remodeling work of a remodeling housing association), 48 through 62, 62-2 through 5, 63 through 67 and 72 shall also apply to a house and other facilities constructed as a same building with construction permission under Article 11 of the Building Act.

Article 47 (Standards for Permission for Works, etc.) (1) Standards for permission and report of the works under Article 42 (2) of the Act shall be stipulated in Asterisk 3.

(2) The "works prescribed by Presidential Decree" shall refer to any of the following acts:

1. disusing Multifamily Housing;

2. reconstructing Multifamily Housing and dismantling rain proof walls (3) Where a person, who intends to report or get permission for the use, etc. of Multifamily Housing under article 42 (2) of the Act, shall submit a written application for permission and a written report together with the documents prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (4) A person falling under any of the followings may remodel housing after getting permission from a mayor, a head of Gun or Gu office under Article 42 (3) of the Act:

1. A remodeling housing association established under Article 32 (1) of the Act for a Dong or a housing complex. In this case, for remodeling a whole housing complex, more than four fifths of partition owners and voting rights of the whole housing complex, and more than two thirds of partition owners and voting rights of each Dong shall sign on a resolution which states the following items. And for remodeling a Dong, more than four fifths of partition owners and voting rights of the Dong shall sign on the resolution: (a) outline for remodeling design;

(b) remodeling costs; and

(c) allotted remodeling cost for each association member.

2. A delegation of occupiers which has received unanimous votes for remodeling from the homeowners of a housing complex.

(5) The basement floor of Multifamily Housing may be used commonly by occupiers under Article 11 of the Provisions of Housing Construction Standards, etc. In this case, a housing manager shall manage and maintain the basement floor to be used as a shelter in case. Article 48 (Scope of Multifamily Housing subject to Compulsory Management by Housing Managers. etc)

"Multifamily Housing prescribed by Presidential Decree" under Article 43 (1) shall refer to Multifamily Housing falling under any of the following housings (including housing and other facilities constructed as a same building with permission under Article 8 of the Building Act, and incidental and welfare facilities with the exception of welfare facilities for sale to ordinary citizens; hereinafter the same shall apply).

1. Multifamily Housing with more than 300 households;

2. Multifamily Housing with more than 150 households and elevators;

3. Multifamily Housing with more than 150 households and central heating system (including district heating system)

4. housing with more than 150 households and other facilities constructed as a same building with permission under Article 8 of the Building Act. Article 49 (Management By Project Executors)

(1) A project executor, who manages Multifamily Housing under Article 43 (1) of the Act until more than half of its households are occupied, shall make a contract for management with prospective occupiers and may charge the expenses for the management and operation of commonly used parts (hereinafter referred to as the "deposit for management expenses) under the contract. (2) Where a project executor sends out to occupiers a notice that more than half of households are occupied, the project executor shall include the following items in the notice.

1. the total number of prospective occupiers, the total number of moved-in households, and the number of prospective occupiers, the number of moved-in households for each Dong;

2. request for deciding the management method of Multifamily Housing; and

3. the name and address of the project executor (referring to title and location in the case of a corporation)

Article 50 (Organization of Delegation of Occupiers, etc.) (1) A delegation of occupiers shall be organized under Article 43 of the Act by delegates of each Dong (hereinafter referred to as the "Dong delegates") in proportion of the number of households of each Dong in number. (2) In the case where a housing complex is constructed in a consecutive manner after being divided into several sections, a delegation of occupiers may be organized by occupiers and users (hereinafter referred to as the "occupiers, etc.") of housing, which has firstly been constructed. Provided, that when the next section of the housing complex is completely constructed, a delegation of occupiers shall be reorganized.

(3) Dong delegates shall reside in Multifamily Housing for more than 6 months (with the exception of Dong delegates elected to establish the first delegation of occupiers or a delegation of occupiers under section (2)) after being registered as the occupiers of Multifamily Housing as of the election date of Dong delegates. (4) Executive members of a delegation of occupiers shall be elected among Dong delegates, and the delegation shall consist of more than 3 directors including 1 chairman and more than 1 auditor.

(5) The scope of duties of executive members, etc shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(6) Deleted

Article 50-2 (Operation Education for a Delegation of Occupiers) (1) A mayor, a head of Gun or Gu office may provide elected Dong delegates under Article 50 (1) with necessary education for operating a delegation of occupiers under Article 43-2 (1) of the Act within 1 year from the election date (hereinafter referred to as the "operation education").

(2) Each class for operation education shall be less than 4 hours. (3) A mayor, a head of Gun or Gu office shall inform the education date, location, and contents, and persons eligible for education and other matters 10 days before the education starts.

(4) A mayor, a head of Gun or Gu office may set up and implement a plan for operation education every year.

(5) The operation education cost shall be covered by the delegates who receive the education. Provided, That a mayor, a head of Gun or Gu office may cover all the cost if he/she considers necessary.

Article 51 (Matters for Resolution by Delegation of Occupiers) (1) A delegation of occupiers shall resolve any of the following matters with more than half of favorable votes of members under Article 43 of the Act. Provided, That in such a case stipulated in a management agreement of Multifamily Housing (hereinafter referred to as the "management agreement") under Article 44 (2) of the Act where two thirds of members of a delegation of occupiers are elected, the following matters may be resolved with a majority vote of elected members of the delegation:

1. establishment and revision of rules for proposing the revision of the management agreement;

2. settlement of budget for management expenses and criteria for usage fee, request for audit, and closing accounts;

3. standards for the maintenance and operation of electricity, roads, water supply and drainage, gas, air conditioning and heating facilities, and parking lots;

4. appointment and dismissal of employees of self-managing bodies;

5. repair, replacement and conversion of commonly used parts of Multifamily Housing;

6. proposal and carrying-out of remodeling Multifamily Housing;

7. establishment and adjustment (only limited to the case where they require cost expenditure) of a long-term repair plan under Article 47 (1) of the Act (hereinafter referred to as the "long-term repair plan") and a safety management plan (hereinafter referred to as the "safety management plan") under Article 49 of the Act.

8. settlement of conflicting matters among occupiers; and

9. other matters stipulated in the management agreement. (2) A head of delegation of occupiers may summon a meeting under the management agreement. Provided, That a head of delegation of occupiers shall summon a meeting within 14 days in a case falling under any of the followings:

1. where more than one thirds of members of a delegation of occupiers request a meeting;

2. where more than one tenth of occupiers request a meeting. (3) Where a delegation of occupiers resolves the matters of section (1), the delegation shall not violate the rights of persons, other than occupiers of Multifamily Housing, who have interest in housing management.

(4) Where a delegation of occupiers holds a meeting, the delegation shall make minutes and ask a housing manager to keep them. And where occupiers, etc. ask the housing manager to peruse the minutes and copy them at their expenses, the housing manager may comply with the request under the management agreement. (5) A delegation of occupiers shall not unfairly intervene in employee appointment and personnel management and other works of housing managers. Article 52 (Determination of Management Method, etc.) (1) Management method under Article 43 (3) of the Act shall be determined (including the election process of housing managers in the case where Multifamily Housing is managed by a housing manager) by a proposal of a delegation of occupiers or one tenth of occupiers and by a documentary resolution with a majority favorable vote. (2) A delegation of occupiers may order a housing manager to manage two Multifamily Housing complexes at the same time or manage the complex by 500 households as prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs. In this case, joint management shall only be allowed in such cases which get favorable votes from more than half of each housing complex occupiers and satisfy the standards of the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(3) A delegation of occupiers, which has determined the management method of Multifamily Housing under Article 43 (3) of the Act, shall report and notify the following matters within 30 days from the determination date to a mayor, a head of Gun or Gu office or a project executor. In the case where there is modification in the reported matters, the delegation shall make registration within 30 days from the modification date:

1. title and location of Multifamily Housing complex, and the title and location of a delegation of occupiers;

2. specifications of a delegation of occupiers;

3. management method of Multifamily Housing and selected housing managers (only in the case where Multifamily Housing is managed by a housing manager);

4. management agreement; and

5. other matters prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(4) Section (1) and (3) shall apply mutandis mutatis to the case where the management method has been modified or a housing manager has been replaced. Provided, That where a delegation intends to re-designate a housing manager again after the term of contract expires, more than two thirds of members of a delegation of occupiers shall consent to it. (5) A project executor shall cooperate in organizing a delegation of occupiers. And where a delegation of occupiers notifies that the management method has been determined under section (3), the project executor shall transfer the deposit for housing management to the delegation of occupiers. Article 53 (Multifamily Housing Management Body)

(1) Engineers and equipments required to establish a self-management body under Article 43 (3) of the Act shall be stipulated in Asterisk 4. (2) A self-management body shall be supervised by a delegation of occupiers. (3) A delegation of occupiers shall appoint a head of management office with more than half of favorable votes.

(4) A delegation of occupiers shall appoint new head of management office within 30 days from the date on which the position of head of management office has become vacant due to dismissal or other reasons.

(5) Members of a delegation of occupiers shall not be allowed to work in a self- management body. (6) Section (1) shall apply mutandis mutatis to the matters of required engineers and equipments for a Multifamily Housing management body, which is not a self- management body. Article 54 (Taking and Handing Over Management Works) (1) A project executor, who hands over management duties under Article 43 (6) of the Act to a self-management body or a housing management corporation, shall make and hand over the following documents. In this case, the persons, who take over and hand over management duties, shall sign and seal on the documents with the presence of a head of a delegation of occupiers:

1. drawing and specifications, equipment specifications, a long-term repair plan and a safety management plan;

2. charging management and usage fees, the current condition of charging and related accounting documents;

3. current condition of allowance reserve for long term repair (hereinafter referred to as the "allowance reserve for long term repair" under Article 51 of the Act;

4. specifications of deposit for management expenses; and

5. management agreement and other necessary matters for housing management. (2) A housing manager under Article 43 (6) of the Act shall manage the housing until a self-management body is organized or a housing management corporation is selected by occupiers, etc.

Article 55 (Duties, etc. of Housing Managers)

(1) A housing manager shall fulfill any of the following duties under Article 43 (7) of the Act. In this case, a housing manager, if necessary, may use commonly used areas of housing:

1. maintenance, repair and safety management of commonly used areas of Multifamily Housing;

2. security, cleaning, disinfection and waste collection of a Multifamily Housing complex;

3. charging management fee and usage fee and paying public charges on behalf of occupiers;

4. collection, accumulation and management of allowance reserve of long term repair;

5. implementation of management agreement;

6. implementation of resolution of a delegation of occupiers;

7. other matters prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(2) A housing manager shall make and keep monthly account books of charge, use, reservation and deposit of management fee, usage fee and allowance reserve for long term repair (hereinafter referred to as the "management fee, etc.") with documentary evidence, and where an occupier of Multifamily Housing requests to peruse the documents and copy them at their expenses, the housing manager shall comply with the request under the management agreement. Article 56 (Disclosure of Current Condition of Management) A housing manager shall post the following items on the Internet or on a notice bulletin of Multifamily Housing, or send the notice to an individual occupier. Provided, That the detailed use of each household, etc., which is highly likely to violate privacy, shall not be disclosed.

1. summons of a meeting of delegation of occupiers and matters resolved in the meeting;

2. specification of management fee, etc. (referring to detailed information for calculating management fee and usage fee under Article 58 (1) or (3))

3. management agreement and progress for a long-term management plan and a safety management plan;

4. progress for main duties such as handling civil petitions of occupiers, etc.;

5. election of Dong delegates and members of a delegation of occupiers;

6. matters related to housing managers and management bodies' organization. Article 57 (Standing Rules of Management Agreement) (1) Standing rules of management agreement established by a mayor/Do governor under Article 44 (1) shall include the following matters. In this case, the standing rules shall not include the matters which violate basic rights of Multifamily Housing occupiers, etc.

1. rights and obligations of occupiers, etc. (including obligations under section (3))

2. organization and operation of a delegation of occupiers, and obligations and responsibilities of members;

3. appointment, dismissal and term of office of Dong delegates;

4. procedures for summons of a meeting of delegation of occupiers;

5. how much and whether or not operation fee is paid to a delegation of occupiers;

6. organization and operation of a self-management body and required qualifications, appointment, payment and responsibility for a head of management office and employees;

7. kind of documents made and kept by a delegation of occupiers or housing managers and the way of perusal, etc.;

8. matters of entrusting contract of housing management;

9. criteria for consent to housing managers' works under section (3);

10. management and operation method of allowance reserve for long term repair;

11. calculation method of management fee for each household, charging, preservation, deposit and usage procedures;

12. dispositions and additional charges on persons who haven't paid management fees;

13. rates and usage procedures of allowance reserve for long term repair;

14. matters of accounting standards, management and audit;

15. responsibilities and obligations of employees in accounting (including matters of financial guarantee);

16. ordering works and services and procedures for material purchase;

17. use and usage procedures of profits gained in the process of management, etc.;

18. responsibility for Multifamily Housing management and its cost coverage;

19. dispositions on persons who violate the management agreement and disturb public order;

20. approval ratio of occupiers for renting child facilities in the case of signing a contract for renting child facilities of Multifamily Housing (including free rent to a local government);

21. noise of Multifamily Housing between floors (referring to the noises of children's running, door, pet, washing machine, vacuum cleaner, golfing machine and sporting equipments early in the morning and late at night, and the noises of toilet flushing and kitchen drain, etc.); and

22. other necessary matters for Multifamily Housing management. (2) The first management agreement established after the presale of Multifamily Housing shall be determined by more than half of prospective occupiers approving signs on the proposal of a project executor (referring to the proposal made when a project executor signs a management contract with prospective occupiers in accordance with the standing rules of management agreement). In this case, Article 52 (1) shall apply mutandis mutatis to the method for modifying the first management agreement.

(3) An occupier, etc., who intends to do any of the following works, shall get consent from a housing manager:

1. extending or removing the structures and installations of Multifamily Housing within the range, which doesn't fall under any of acts under Article 42 (2) of the Act;

2. disturbing passing, evacuating and firefighting by loading stuff in commonly used areas within the range which doesn't violate Article 10 (1) of the Installation Maintenance and Safety Control of Firefighting Systems Act;

3. posting advertisement, signals or signs on Multifamily Housing;

4. rearing animals (with the exception of dogs for the disabled) or using broadcast equipments which do harm to other households;

5. installing projections on a railing or on the wall of Multifamily Housing;

6. entering an electrical room, a machinery room and water purifier tank, etc. (4) A housing manager of Multifamily Housing shall keep the management agreement and allow occupiers, etc. to peruse or copy it at their expenses. Article 58 (Management Fee, etc.)

(1) Management fees under Article 45 of the Act shall be the lump sum of monthly expenses of the following items, and specifications for each item shall be stipulated in Asterisk 5.

1. general management expenses;

2. cleaning expenses;

3. security expenses;

4. disinfection expenses;

5. elevator maintenance expenses; 5-2. maintenance expenses of intelligence home networking installations;

6. heating expenses (referring to the expenses calculated by a calorimeter in the case of Multifamily Housing which has a calorimeter installed under Article 37 of the Rules on Housing Construction Standards, etc.)

7. water heating expenses;

8. repair and maintenance expenses (including cleaning expense of air conditioning and heating installations)

(2) A housing manager shall charge the following expenses distinctively from the expenses of section (1):

1. allowance reserve for long-term repair;

2. compensation for safety inspection under Article 6 of the Special Act on Safety Management of Installations;

3. expenses of safety diagnosis under Article 62 and expenses of safety inspection under Article 65;

(3) A housing manager may pay any of the following usage fees, etc., which are paid by occupiers, as proxy to persons for each of their work :

1. electric charges (including electricity bills of commonly used facilities);

2. water charges (including the water charges of public use);

3. gas charges;

4. heating and water heating expenses of Multifamily Housing with district heating system;

5. fees for water purifier's sewage purification;

6. fees for waste management;

7. insurance premium for all buildings of a Multifamily Housing complex;

8. operation cost of a delegation of occupiers. (4) A housing manager may additionally charge the usage fee of common facilities on users.

(5) A project executor may repair facilities used by more than 2 households at his/her expenses and later charge the repair cost on the occupiers who use the facilities. (6) A project executor shall inform the specifications of gains and expenditures of management fees when the executor charges all the expenses for management in a lump.

(7) A project executor may deposit housing management fees in a financial institution (referring to any of the institutions in Article 44 (2), 1) designated by a delegation of occupiers in joint names of the head of delegation of occupiers and the head of management office.

Article 59 (Repair of Defects by Project Executors) (1) The scope of defects and defects liability period for each proof stress structure and installation work, which are responsible for a project executor (referring to a project executor under this Article (2), the same shall apply in this Article, 60 and 61) shall be stipulated in Asterisk 6 and 7.

(2) The "occupiers, etc. prescribed by Presidential Decree" under Article 46 (1) of the Act shall refer to occupiers, a delegation of occupiers, a project executor or a management group (hereinafter referred to as the "delegation of occupiers, etc.") established under the Act on Owning and Management Congregate Buildings. (3) A delegation of occupiers, etc. may request a project executor to repair defects discovered during the defects liability period. In this case, a project executor shall repair defects or notify a plan for defect repair with a scheduled repair date within 3 days from the request date (referring to the date on which the project executor receives the notice of defect verdict in the case where defects are in the process of judgement under section (4); the same shall apply in section (6)).

(4) Where a project executor raises an objection to the defects repair request under section (3), the project executor may request the verdict (hereinafter referred to as the "defect verdict") whether or not the defects are responsible for him/her to any of the following persons after consulting a delegation of occupiers, etc.:

1. an engineer on the related area under the Engineering Technology Promotion Act;

2. a technologist on the related area under the Technologist Act or an architect under the Certified Architect Act;

3. Korea Institute of Construction Technology under Article 8 of the Act on the Establishment, Operation and Promotion of the Research Institutes of Science Technology funded by the Government;

4. Korea Infrastructure Safety and Technology Corporation under the Special Act on the Safety Management of Infrastructure.

(5) The cost for defect verdict under section (4) shall be covered by any one of the followings:

1. a project executor in the case where defects are responsible for the project executor as a result of the defect verdict;

2. a delegation of occupiers, etc. in the case where defects are not responsible for the project executor as a result of the defect verdict. In this case, a delegation of occupiers may charge the cost of defect repair on the persons who are responsible for defects.

(6) Where a project executor has not repaired defects or has not sent the plan for defect repair within 3 days from the request date of defect repair under the latter part of section (3), or has not repaired under the plan, a delegation of occupiers, etc. may use a deposit for defect repair (hereinafter referred to as the "deposit for defect repair") under Article 46 (2) of the Act to repair the defects or to order the repair to the third person. In this case, a delegation of occupiers, etc. shall inform the usage specifications of the deposit for repairing defects to a project executor.

Article 60 (Deposit for Defect Repair)

(1) A project executor (including any person who intends to convert Multifamily- Housing-for-rent into Multifamily-Housing-for-presale) shall save a deposit for defect repair in a financial institution (referring to a financial institution under the Banking Act; the same shall apply) designated by a use inspection authority under the name of the use inspection authority under Article 46 (2) of the Act and submit a certificate of deposit to the use inspection authority together with a written application for use inspection (referring to a written application for provisional use approval in the case of getting approval for provisional use of the whole Multifamily Housing complex, a written application for approval, permission and report for conversion in the case of converting housing-for-rent into housing-for- presale under the Rental Housing Act and the Enforcement Decree of the Housing Act). (2) A use inspection authority shall promptly hand over the name of deposit for defects repair under section (1) to a delegation of occupiers when a delegation of occupiers is established (including a management group under Article 59 (2); the same shall apply in this Article and 61), and a delegation of occupiers shall hold the deposit for defect repair in the financial institution until the defects liability period of a project executor expires.

(3) Deposit for defect repair under section (1) shall be 3/100 of any of the following expenses. Provided, That in the case of converting housing-for-rent into housing- for-presale, the deposit shall be the multiplication of the following expenses and the number of converting housing-for-rent into housing-for-sale:

1. in the case of constructing Multifamily Housing after preparing housing sites: the total cost of the project for Multifamily Housing construction (stipulated in a written approval for project plan) excluding the housing site preparation cost;

2. in the case of constructing Multifamily Housing without preparing housing sites: the total cost of the project for Multifamily Housing construction

3. in the case of newly constructing, extending, reconstructing, repairing or remodeling Multifamily Housing under Article 42 (2), 2 of the Act and in the case of remodeling Multifamily Housing under Article 42 (3): the total cost of the project for Multifamily Housing construction stipulated in a written application for permission or in a written report;

4. in the case of constructing Multifamily Housing for presale with construction permission under Article 11 of the Building Act: the construction cost estimated on the basis of standard construction costs under the standards for the price of converting public-housing-for-rent into housing-for-presale provided in for Article 13 (5) of the Enforcement Decree of the Rental Housing Act at the time of application for use approval.

(4) Deposit for defect repair under section (1) shall be held in cash or in any form of the following certificates:

1. payment certificate of bank with a delegation of occupiers as the insured;

2. insurance policy that guarantees fulfillment with a delegation of occupiers or a mandatory of the delegation as the insured;

3. a written guarantee issued by a construction mutual aid association under the Framework Act on the Construction Industry;

4. a written guarantee issued by the Korea Housing Guarantee Corporation. Article 61 (Return of Deposit for Defect Repair)

A delegation of occupiers shall return to a project executor the deposit for defect repair held by a project executor under the following classification in a consecutive manner. In the case where the deposit for defect repair is used under the former part of Article 59 (6), the spent deposit shall be added when calculating the following classifications, and the already used deposit shall not be returned to the project executor:

1. after one year has passed since the use inspection date (referring to provisional use approval date where a project executor has got provisional use approval for the whole housing in a complex; hereinafter the same shall apply in this Article):10/100 of the deposit for defect repair;

2. after 2 years have passed since the use inspection date: 25/100 of the deposit for defect repair;

3. after 3 years have passed since the use inspection date: 20/100 of the deposit for defect repair;

4. after 4 years have passed since the use inspection date:15/100 of the deposit for defect repair;

5. after 5 years have passed since the use inspection date: 15/100 of the deposit for defect repair;

6. after 10 years have passed since the use inspection date: 15/100 of the deposit for defect repair.

Article 62 (Safety Inspection)

(1) Deleted

(2) Deleted

(3) Where a mayor, a head of Gun or Gu office recognizes that there exist critical defects in the proof stress structure under Article 46 (4) of the Act, he/she may request any of the following institutions to undergo safety inspection:

1. Korea Institute of Construction Technology;

2. Korea Installation Management Corporation;

3. the Construction Association under Article 31 of the Building Act;

4. research institutes (only referring to permanent research institutes) of universities and industrial universities under Article 2, 1 and 2 of the Higher Education Act; and

5. special institutions for safety inspection under Article 9 of the Special Act on the Installation Safety Management.

(4) The cost of safety inspection under section (3) shall be covered by a project executor. Provided, That where defects are caused by other persons than the project executor, the persons shall cover the inspection cost. Article 62-2 (Duty of Committee Chairman)

(1) A chairman of a defect examination committee and a dispute settlement committee (hereinafter referred to as the "committee") under Article 46-2 (1) of the Act shall summon a meeting and be a chairman of the meeting. (2) Where a committee chairman cannot continue his/her duties, a committee member designated by the chairman may fulfill the duties. Article 62-3 (Dismissal, etc. of Committee Members) (1) Where a committee member falls under any of the following cases, the member shall be dismissed from investigation and settlement of a dispute (referring to investigation and settlement of a dispute over responsibility for security and defect liability under Article 46 of the Act; hereinafter referred to as the "settlement, etc.").

1. where a committee member, his/her spouse or ex-spouse is the person concerned in a relevant event (hereinafter referred to as the "event") or shares a right or an obligation in respect of the event;

2. where a committee member is in kinship with a person concerned of the event;

3. where a committee member has testified or given an expert opinion;

4. where a committee member has been involved in the event as a proxy of a person concerned; or

5. where a committee member has been involved in a culprit for the event such as disposition or non-performance.

(2) Where there exists a committee member who falls under section (1), the committee shall determine whether or not to dismiss the member under its official authority or on a request of persons concerned.

(3) Where a person concerned cannot expect a fair settlement of dispute, the person may apply for evading the settlement to a committee, and where the committee recognizes that the application is justifiable, the committee may allow the evasion. (4) A committee member, who falls under section (1) or (3), may evade the settlement, etc. of the event by him/herself.

Article 62-4 (Meeting of Committee, etc.)

(1) A committee chairman, who intends to summon a meeting, shall inform the meeting date, location and agendas to each of members 3 days before the opening of the meeting in written unless there are unavoidable reasons; (2) The committee's meeting shall open with the attendance of more than half of committee members and shall resolve agendas with a majority favorable vote of members.

(3) The committee, if considers necessary in managing the settlement, etc. effectively, may divide or incorporate the events.

(4) The committee, which divides or incorporates relevant events under section (3), shall promptly send out a written notice to persons concerned in written. (5) The committee, if considers necessary, may request a person concerned or a reference to submit necessary documents such as documentary evidence or to attend the meeting.

(6) Necessary matters other than section (1) through (5) shall be determined through the committee's resolution.

Article 62-5 (Refusal and Suspension of the Settlement, etc.) (1) The committee may refuse the settlement, etc. if the committee recognizes that the settlement, by its nature, is not appropriate to be handled by the committee or the settlement has been applied for unlawful purposes. In this case, the committee shall inform the reasons of refusal to the applicant.

(2) Where one side of persons concerned raise an objection in the process of settlement, the committee shall suspend the procedures of settlement and inform to persons concerned.

Article 63 (Establishment of Long-Term Repair Plan) (1) Deleted

(2) A person, who establishes a long-term repair plan under Article 47 (1) of the Act, shall set up the plan as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs by taking the cost of Multifamily Housing construction in account.

Article 64 (Facility Safety Management)

(1) A housing manager shall set up a safety management plan for the following facilities under Article 49 (1) of the Act:

1. high pressure gas, liquid petroleum gas and city gas facilities;

2. electricity generation and substation facilities;

3. centered heating facility;

4. store houses of hazardous materials;

5. firefighting facility;

6. elevators and salvaging facilities;

7. exhaust pipe of briquet gas; and

8. other facilities prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(2) Safety management plans under section (1) shall include the following items:

1. matters subject to inspection by safety manager of each facility and by a person in charge of safety management;

2. matters to be inspected and standards for safety inspection of facilities prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs;

3. restriction on the use of facilities, which are concerned to be hazardous as a result of inspection under subsection 1 and 2;

4. matter about adjustment of established safety management plan; and

5. other necessary matters for facility safety management. Article 65 (Safety Inspection of Multifamily Housing) (1) A housing manager shall undergo safety inspection every half year under Article 50 (1) of the Act. Provided, That Multifamily Housing of more than 16 stories shall go through safety inspection by any of the following persons under the guiding principles of the Special Act on Facility Safety Management.

1. a responsible engineer who is a housing manager of housing complex under Article 7 of the Enforcement Decree of the Special Act on Facility Safety Management;

2. a housing manager or an assistant housing manager appointed as a head of management office of Multifamily Housing under Article 55 (1) of the Act who completed safety inspection education;

3. a specialized institution of safety management designated by the Minister of Land, Transport and Maritime Affairs under Article 9 of the Special Act on Facility Safety Management;

4. housing managers registered under a mayor/Do governor under Article 9 of the Framework Act on the Construction Industry.

(2) Where a housing manager discovers that the structure of building and the level of facility safety are weak and hazardous as a result of safety inspection under Article 50 (2) of the Act, the housing manager shall report the following matters to a mayor, a head of Gun or Gu office and take actions as reported:

1. structure and facilities subject to safety inspection;

2. degree of vulnerability;

3. scenarios of possible hazardous situations; and

4. actions to be taken. (3) A mayor, a head of Gun or Gu office shall manage the Multifamily Housing reported under section (2) in compliance with the Ordinance of Ministry of Land, Transport and Maritime Affairs.

Article 66 (Accumulation of Allowance Reserve of Long-Term Repair) (1) The rate of allowance reserve of long-term repair under Article 51 (3) of the Act shall be determined under the management agreement in consideration of endurance term of commonly used facilities, and allowance reserve of long-term repair shall be determined by a long-term repair plan. (2) The allowance reserve of long-term repair shall be determined under a long-term repair plan and its use procedures shall be determined as stipulated in the management agreement. Provided, That where more than half of occupiers agree in written, the allowance reserve may be used to cover the defect verdict cost and the cost required for making a request of defect verdict.

(3) The allowance reserve of long-term repair shall be accumulated starting from the month, which has been one year since the date of use inspection of Multifamily Housing (referring to the provisional use approval date where a Multifamily Housing complex is approved for provisional use). (4) The allowance reserve of long-term repair for unsold Multifamily Households shall be covered by a project executor.

Article 67 (Establishment of Committee for Dispute Settlement of Multifamily Housing)

(1) The committee for dispute settlement of Multifamily Housing under Article 52 of the Act shall consist of less than 10 members including one chairman, and its members shall be any of the following persons requested or appointed by a head of local government. In this case, the committee shall consist of more than 2 members falling under 1 and 2:

1. a person recommended by a delegation of occupiers of Multifamily Housing which is in a dispute;

2. a person recommended by a housing manager of Multifamily Housing which is in a dispute;

3. a person recommended by a civic group (referring to non-profit private organizations under Article 2 of the Supporting Act for Non-profit Private Organizations)

4. a person with good reputation and abundant experience and knowledge on housing management;

5. a government official in a relevant local government. (2) The committee chairman shall be designated by a head of local government among members under section (1), 3 or 5.

(3) Members under action (1) 1 and 2 shall be requested for each dispute, and their term of office shall last from the request date to the date on which a dispute is settled completely. And the term of office for members under section (1) 3 and 4 shall be 3 years and may be reappointed.

CHAPTER 2 SPECIAL HOUSING MANAGEMENT, ETC.

Article 68 (Registration Standards and Procedures for Housing Management) (1) Registration standards for housing management under Article 53 of the Act shall be stipulated in Asterisk 8.

(2) A person, who intends to be registered in the housing management industry under Article 53 (1) of the Act, shall make an application (including e-application) registration to a mayor, a head of Gun or Gu office together with documents prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(3) A mayor, a head of Gun or Gu office shall grant a certificate of housing management to each applicant.

Article 69 (Obligation of Housing Managers)

(1) Where the post of a housing manager or an assistant housing manager (hereinafter referred to as the "housing manager, etc.") becomes vacant due to dismissal or other reasons, a housing manager shall appoint new housing manager or new assistant housing manager within 15 days from the date on which vacancy occurred under Article 53 (3) of the Act.

(2) Under Article 53 (3) of the Act, a housing manager shall be equipped with engineers and equipments under Asterisk 4.

Article 70 (Standards for Registration Cancellation of Housing Management, etc.) (1) "When a housing manager's management performance of Multifamily Housing falls short of the criteria prescribed by Presidential Decree" under Article 54 (1), 5 of the Act shall mean that a housing manager hasn't had housing management records for the last 3 years as of December of that year.

(2) A mayor, a head of Gun or Gu office, who intends to give an order of registration cancellation or business suspension under Article 54 (1) of the Act, shall notify it to a delegation of occupiers of Multifamily Housing managed by a relevant housing manager one month before the administrative disposition takes effect. (3) The criteria for registration cancellation and business suspension under Article 54 (1) and (4) of the Act shall be stipulated in Asterisk 4. (4) Article 14 (4) shall apply mutandis mutatis to the case of registration cancellation and business suspension under section (3). In this case, "6 months of business suspension" shall be considered as "3 months of business suspension."

(5) Fines under Article 54 (2) of the Act shall be 30 thousand won per day of business suspension, and 1 month of business suspension shall mean 30 days. In this case, the fines to be charged shall not exceed 10 million won. Article 71 (Imposing and Paying Fines)

(1) A mayor, a head of Gun or Gu office, who intends to impose fines under Article 54 (2) of the Act, shall send a written notice about the kind of violation and the sum of fines.

(2) A person, who has received the written notice of fines from a mayor, a head of Gun or Gu office, shall pay the fines within 30 days from the notice date to a receiving institution designated by a mayor, a head of Gun or Gu office. Provided, That where the person cannot pay the fines due to natural disasters or other reasons, the person shall pay the fines within 7 days from the date on which the reasons have vanished.

(3) A receiving institution, which has received fines under section (2), shall give a receipt to the payer.

(4) A receiving institution shall promptly notify to a mayor, a head of Gun or Gu office after receiving fines under section (3).

Article 72 (Stationing of Head of Management Office) A housing manager, a delegation of occupiers (only referring to Multifamily Housing under autonomous management), or a rental businessman (referring to rental businessmen under Article 2, 4 of the Rental Housing Act) under Article 55 (1) of the Act shall station a housing manager as a head of management office under the following classifications. In this case, he/she may station a housing manager as an assistant for a head of management office:

1. Multifamily Housing with less than 500 households: housing manager or assistant housing manager;

2. Multifamily Housing with more than 500 households: housing manager. Article 72-2 (Guarantee for Compensation for Loss) (1) A housing manager stationed by a head of management office under Article 55 (1) of the Act shall subscribe for a guarantee insurance which guarantees the following amount of money or for a mutual aid association, or for deposit funds in order to guarantee the compensation for loss under Article 55-2 (1):

1. Multifamily Housing with less than 500 households: 30 million won;

2. Multifamily Housing with more than 500 households: 50 million won. (2) A housing manager, etc. shall submit documentary evidence of guarantee settlement to a head of delegation of occupiers after settling guarantee (hereinafter referred to as the "security settlement") for compensation for loss under section (1). Article 72-3 (Change of Guarantee Settlement)

(1) A housing manager, who intends to replace guarantee settlement, shall do it during the period for which the existing guarantee is still valid. (2) A housing manager, etc., who has subscribed for a mutual aid association or a guarantee insurance, and intends to settle guarantee again after the guarantee period expires, shall resettle the guarantee by the expiration date. Article 72-4 (Payment of Guarantee Insurance, etc.) (1) Where a delegation of occupiers intends to receive guarantee insurance benefits, Mutual Aid benefits and deposited money as compensation for loss, the delegation shall request the payment to a guarantee insurance company, a Mutual Aid businessman or a deposit institution with a written agreement of compensation for loss, a reconciliation protocol or a copy of the court verdict, and other corresponding documents attached.

(2) A housing manager, etc., who compensated for loss in the form of Mutual Aid benefits, guarantee insurance benefits or deposited money, shall subscribe for a guarantee insurance or a Mutual Aid association again or make up for the lacking funds in the deposit.

Article 73 (Granting of Housing Manager Certificate) (1) A mayor/Do governor shall grant a housing manager certificate to a person with any of the following qualifications who has passed the qualifying exam for housing managers under Article 56 (2) of the Act:

1. a person who has worked as a head of management office of Multifamily Housing (including housing of more than 150 households and other facilities constructed as a same building under Article 11 of the Building Act) constructed with project approval under Article 16 (1) of the Act for more than 3 years;

2. a housing manager under a management body of Multifamily Housing constructed with project approval under Article 16 (1) of the Act or a housing manager under Article 53 of the Act with more than 5 years of experience in housing management;

3. a worker of the Korea National Housing Corporation or of a local corporation with more than 5 years of experience in housing management;

4. a government official with more than 5 years of experience in instruction, superintendence, authorization and permission in relation to housing construction;

5. a worker in a management body of Multifamily Housing under Article 81 (2) of the Act or a management body designated by the Minister of Land, Transport and Maritime Affairs; and

6. a person with more than 5 years of working experience in the areas of 1 through 5. (2) A person who intends to receive a housing manager certificate under Article 56 (2) and (3) of the Act shall submit a certificate of qualifying exam for housing managers to a mayor/Do governor together with documentary evidence of working experience under section (1).

Article 74 (Qualifying Exam for Housing Managers) (1) A qualifying exam for housing managers under Article 56 of the Act shall be carried out two times (the first and the second exams). Provided, That the two exams may be carried out at the same time if the Minister of Land, Transport and Maritime Affairs considers necessary. In this case, the exam method shall be determined under section (2).

(2) The first exam shall mostly contain multiple choice questions but may give some short answer questions or gap filling questions.

(3) The second exam shall have a thesis question but may add several short answer questions or gap filling questions.

(4) Only persons, who have passed the first exam, shall be eligible for the second exam. Provided, That where the first and the second exams are carried out at the same time under section (1), the second exam taken by the persons who have failed the first exam shall be regarded as not valid. (5) The persons, who passed the first exam but failed the second exam, shall be exempt from the first exam when they take the qualifying exam again. (6) The subjects of the qualifying exam for housing managers shall be stipulated in Asterisk 10.

Article 75 (Exam Passing Score)

(1) In respect of the first exam, 100 grades are a perfect score for each subject, and the persons, who get more than 40 grades by each subject and more than 60 grades on average, may pass the exam.

(2) In respect of the second exam, 100 grades are a perfect score for each subject, and the persons, who get more than 40 grades by each subject and more than 60 grades on average, may pass the exam.

Article 76 (Carrying out and Announcement of Exams) (1) The qualifying exam for housing managers shall be carried out once a year. Provided, That the Minister of Land, Transport and Maritime Affairs may cancel the exam if there exist justifiable reasons.

(2) The Minister of Land, Transport and Maritime Affairs shall publicize the date, location, method and other necessary matters of the exam in daily newspaper 30 days before the exam date. In this case, the Minister shall hold an advance consultation on necessary matters for carrying out the exam with a mayor/Do governor.

Article 77 Deleted

Article 78 (Application Form of Exam, etc.)

(1) A person who intends to take the qualifying exam for housing managers shall submit an exam application form prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs to the Minister of Land, Transport and Maritime Affairs. (2) A person, who submits an exam application form under section (1), shall pay a commission prescribed and publicized by the Minister of Land, Transport and Maritime Affairs. (3) The commission paid under section (2) shall not be refunded to the persons who don't take the exam after applying.

Article 79 (Payment of Allowance for Examiners)

Examiners may be paid necessary expenses and allowances from the allocated budget. Article 80 (Sanctions on Persons who Cheat)

For any examinee who cheated in the examination and shall be disqualified for 5 years from the exam date, and the exam shall be regarded as not valid, and. Article 81 (Standards for Disqualification of Housing Managers, etc.) (1) Standards for disqualification and business suspension of housing managers under Article 57 of the Act shall be stipulated in Asterisk 11. (2) Deleted

Article 82 (Supervision of Multifamily Housing Management) The "duties prescribed by Presidential Decree" under Article 59 (1) shall be as follows:

1. organization and resolution of a delegation of occupiers;

2. duties of housing manager and heads of management office;

3. organization and operation of an autonomous management body;

4. establishment and revision of the management agreement;

5. safety management of facilities;

6. safety inspection of Multifamily Housing;

7. duties related to a long-term repair plan and allowance reserve;

8. permission for or report of acts under Article 42 (2) of the Act or permission for remodeling under Article 42 (3);

9. other duties of Multifamily Housing management. CHAPTER 6 HOUSING FUNDS

Part 1 National Housing Fund

Article 83 (Deposit Funds for Persons who want to be supplied with Housing) (1) "National Housing prescribed by Presidential Decree" under Article 60 (2), 5 of the Act shall be as follows:

1. less than 85 square meters of housing constructed by the State, a local government, the Korea National Housing Corporation or a local corporation;

2. less than 60 square meters of National Housing constructed by a project executor other than the State, a local government, the Korea National Housing Corporation or a local corporation.

Article 84 (Sale of Loan Assets of the National Housing Fund) (1) Loan assets of the National Housing Fund under Article 60 (2), 6 of the Act may be sold at a discount or an extra charge in accordance with interest rates of financial institutions of the selling time.

(2) Loan assets of the National Housing Fund shall be sold by way of a competitive bid. Provided, That where the National Housing Fund can sign a contract under significantly favorable conditions, where there is only one mortgage-backed securitization company under the Mortgage-Backed Securitization Company Act or where the National Housing Fund signs a deal with the Korea National Housing Corporation under the Korea National Housing Corporation Act, the Fund may sign a private contract for selling loan assets. (3) Where loan assets are to be sold by way of a competitive bid, the National Housing Fund shall put a public notice of the bid for more than 7 days. Article 85 (Deposit Money in the National Housing Fund) (1) The "funds or capital prescribed by Presidential Decree" under Article 61 (1), 2 of the Act shall refer to any of the following funds or capital:

1. the Government Employees Pension Fund under the Government Employees Pension Act;

2. the Military Pension Fund under the Special Accounting Act of the Military Pension;

3. funds paid to the Korea Teachers Pension under the Korea Teachers Pension Act

4. funds or capital determined by the Minister of Land, Transport and Maritime Affairs after consulting a competent Minister and the Minister of Strategy and Finance.

(2) Persons, who manage funds under the National Pension Act or funds and capital under section (1), 1 or 3, may deposit the amount of money decided by the Minister of Land, Transport and Maritime Affairs after consulting the competent Minister and the Minister of Strategy and Finance within the range of 50/100 funds, excluding payment reserve held in cash or in a less than 6-month deposit account, in the National Housing Fund. (3) Where a manager of funds or capital under section (1), 4, deposits the funds or capital in the National Housing Fund, the deposit amount and period shall be determined by the Minister of Strategy and Finance after consulting the competent Minister and the Ministry of Land, Transport and Maritime Affairs.

(4) Interest rates of funds deposited in the National Housing Fund under section (2) and (3) shall be based on the interest rate of fixed deposit unless there is specific stipulation in other Acts. However, the Minister of Land, Transport and Maritime Affairs may separately determine the interest rates after consulting a competent Minister and the Minister of Strategy and Finance.

(5) Under Article 61 (2) of the Act, interest rates of funds deposited by the Korea National Housing Corporation and the Korea National Land Corporation in the National Housing Fund shall be determined by the Minister of Land, Transport and Maritime Affairs after consulting the Minister of Strategy and Finance. Article 86 (Operation and Management of the National Housing Fund) (1) Where the Minister of Land, Transport and Maritime Affairs entrusts the operation and management of the National Housing Fund under Article 62 (2) of the Act, the entrusting commission shall be covered by the National Housing Fund and the amount shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) The Minister of Land, Transport and Maritime Affairs shall hold consultation with the Minister of Strategy and Finance before making or revising the provisions about the entrusting commission in the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(3) A fund trustee shall report every month the current condition of fund raising and operation of the National Housing Fund to the Minister of Land, Transport and Maritime Affairs by the 20th of the next month as stipulated in Article 62 (3) of the Act. (4) A fund trustee shall make the National Housing Fund accounting separately from other accountings of the fund trustee.

(5) The Minister of Land, Transport and Maritime Affairs may open a National Housing Fund account in the Bank of Korea to clarify gains and expenditures of the fund. Article 87 (Submission of Closing Accounts Report) (1) A fund trustee shall make a closing account of the National Housing Fund every fiscal year as prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs and shall submit it to the Minister of Land, Transport and Maritime Affairs by Feb. 20 of the next year.

(2) A closing account of section (1) shall contain the following documents:

1. analysis of plans for the National Housing Fund operation;

2. balance sheets;

3. statement of profit and loss;

4. statement of profit surplus disposal or statement of deficits disposal;

5. other documents prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

Article 88 (Use of the National Housing Fund)

The "projects prescribed by Presidential Decree" under Article 63 (1), 22 of the Act shall refer to any of the following projects:

1. education and training at home and abroad for fostering housing experts;

2. research and investigation for the improvement of housing policies and institutions;

3. support for the production of housing construction materials; and

4. support for housing construction of non-profit public service corporation. Article 89 (Operation Method of Reserve Funds of the National Housing Fund) The Minister of Land, Transport and Maritime Affairs may operate the reserve funds of the National Housing Fund in any of the following methods under Article 63 (2) of the Act.

1. by purchasing national bonds, public bonds or other stocks under Article 4 of the Capital Market and Financial Investment Services Act;

2. by depositing by a fund trustee;

3. by purchasing Mortgage Backed Securities issued on the basis of loan assets sold by the National Housing Fund, which are not listed in the Korea Exchange. Part 2 National Housing Bonds

Article 90 (Issue Procedure of National Housing Bond) (1) Where the Minister of Land, Transport and Maritime Affairs considers necessary to issue National Housing Fund Bonds, the Minister shall determine the kind of bond, the amount, the method and the conditions for bond issue, and the method of redemption and procedure, and request the Minister of Strategy and Finance to issue bonds. (2) The Minister of Strategy and Finance, who issues National Housing Fund Bonds on a request of section (1), shall publicize the following items:

1. the kind of bond;

2. maturity of bond;

3. deleted;

4. interest rates of bond;

5. method and time for redemption of principals;

6. method and time for payment of interests. Article 91 (Method of Issuing National Housing Fund Bonds) (1) The National Housing Fund Bonds shall be issued according to the following classifications:

1. Type 1 National Housing Fund Bonds to be purchased by persons falling under Article 68 (1), 1 and 2 of the Act;

2. Type 2 National Housing Fund Bonds to be purchased by persons falling under Article 68 (1), 3.

3. deleted (2) The bond issue period shall be one year, and the issue date shall be the last day of the selling month. (3) The National Housing Fund Bonds shall not be issued as stocks but be issued after making registration to the Korea Securities Depository (hereinafter referred to as the "bond registration institution") established under Article 294 of the Capital Market and Financial Investment Services Act. In this case, creditors shall not request National Housing Bonds which are already registered to be issued as stocks. (4) A bond registration institution may cancel the registration of bonds after ownership transfer (with the exception of inheritance, bequest and compulsory execution) for less than 7 days before the date on which the principal of the National Housing Fund Bond starts being redeemed. (5) The Minister of Land, Transport and Maritime Affairs shall pay a commission prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs to a bond registration institution and the commission shall be covered by the National Housing Fund. In this case, the provisions of Article 86 (2) shall apply mutatis mutandis to making or revising the provisions of commission of national housing bond registration in the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(6) The method and procedure for bond issue after registration, the notice of redemption and electronic management of bond purchasing specifications under section (3) shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs, and the making out and management of the register of the National Housing Bonds, and other related matters shall be determined by a bond registration institution with approval of the Minister of Land, Transport and Maritime Affairs.

Article 92 (Interest Rates of the National Housing Bonds) (1) The interest rates of Type 1 National Housing Bonds shall be determined by the Minister of Strategy and Finance in consideration of interest rates of national and public bonds and the earnings and expenses at the time of bond issue after holding consultation with the Minister of Land, Transport and Maritime Affairs.

(2) The principal of Type 1 National Housing Bonds shall be redeemed after 5 years from the bond issue date.

(3) The interest of Type 1 National Housing Bonds shall be earned at a one-year compound rate under section (1) adding accumulated interest back to the principal during the period from the issue date to the redemption date. (4) The interest of Type 1 National Housing Bonds accumulated during the period from the sale date to the issue date shall be paid on the date of sale. (5) The interest rates, redemption date and redemption conditions, etc. of Type 2 National Housing Bonds shall be determined by the Minister of Finance and Strategy after having consultation with the Minister of Land, Transport and Maritime Affairs.

Article 93 (National Housing Bonds Handling Institution, etc.) (1) The sale and redemption of National Housing Bonds shall be managed by a financial institution (hereinafter referred to as the "National Housing Bonds handling institution) designated by the Minister of Land, Transport and Maritime Affairs. (2) A head of National Housing Bonds handling institution may entrust the sale and redemption work of National Housing Bonds, if considers necessary, to other financial institutions after getting approval from the Minister of Finance and Strategy, with the view to promoting National Housing Bonds. In this case, the Minister of Strategy and Finance shall hold consultation with the Minister of Land, Transport and Maritime Affairs.

(3) A head of National Housing Bonds handling institution shall report any matters related to the sale and redemption of National Housing Bonds to the Minister of Strategy and Finance on the 20th of every month.

Article 94 Deleted

Article 95 (Purchase of National Housing Bonds)

(1) Persons who must purchase Type 1 National Housing Bonds under Article 68 of the Act and its purchase standards shall be stipulated in Asterisk 12. (2) The State or a head of local government, who grants license, authorization or permission, etc., or makes registration under Asterisk 12, and the State, a head of local government or a public organization under Article 95 (5), who signs a contract for a construction project, shall purchase Type 1 National Housing Bonds from counterparts. In this case, it shall be confirmed that purchase obligators purchased National Housing Bonds as stipulated in the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(3) Necessary matters for purchasing Type 1 National Housing Bonds other than stipulated in the Ordinance shall be determined by the Minister of Land, Transport and Maritime Affairs after having consultation with the Minister of Finance and Strategy. (4) The Minister of Land, Transport and Maritime Affairs may order persons, who want to be supplied with price-ceiling-system-applied-housing of more than 85 square meters of exclusive area, to purchase Type 2 National Housing Bonds under Article 68 of the Act. In this case, the latter part of section (2) shall apply mutatis mutandis to the purchase confirmation of Type 2 National Housing Bonds, and the purchase standards, procedures and validity of the Bonds shall be prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

(5) The "public organizations prescribed by Presidential Decree" under Article 68 (1), 3 of the Act shall refer to public organizations established by more than half of government investment with the exception of any of the following institutions:

1. Korea National Housing Corporation;

2. Korea Development Bank under the Korea Development Bank;

3. Industrial Bank of Korea under the Industrial Bank of Korea Act;

4. Korea Eximbank under the Korea Eximbank Act;

5. financial institutions under the Banking Act;

6. Incheon International Airport Corporation under the Incheon International Airport Corporation Act;

7. Korea Airport Corporation under the Korea Airport Corporation Act. Article 95-2 (Separate Issue of National Housing Bonds) (1) Where the maximum price of Type 2 National Housing Bonds exceeds 100 million won, a mayor, a head of Gun or Gu office may allow persons to purchase the bonds separately.

(2) Where a person purchases Type 2 National Housing Bonds separately under section (1), the Bond purchaser may purchase more than 50% of the Bonds which cost more than 100 million won before concluding a contract for housing supply and purchase the remaining Bonds before the date of the remaining payment of housing price prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

Article 96 (Redemption of National Housing Bonds before Maturity) (1) National Housing Bonds shall not be redeemed before maturity excluding the cases falling under any of the followings:

1. Where the relevant license, permission or authorization has been withdrawn or revoked due to the reasons not attributable to the purchasers of Type 1 National Housing Bonds;

2. Where a contract for construction works with the State, a local government or a public organization under Article 95 (5), has been subject to revocation for reasons not attributable to a contractor;

3. Where the status of occupiers after purchasing Type 2 National Housing Bonds (referring to rights, qualifications or status of being entitled to move into the relevant housing as an occupier) or the contract for housing supply has become invalid or revoked, or the contract for supply has been cancelled;

4. Where a person, who is not entitled to purchase the National Housing Bonds, has purchased the bonds by mistake, or where the person has purchased the bonds in excess of the legal amount allowed to purchase; and

5. Deleted. (2) A person who intends to be redeemed for National Housing Bonds before maturity shall make an application together with a certificate of fact (referring to a certificate of the facts falling under any items of section (1); hereinafter the same shall apply) issued by the State, local government, or a public organization under Article 95 (5) or a project executor to a National Housing Bond handling institution (referring to a designated National Housing Bond handling institution, or a financial institution entrusted with the handling of National Housing Bonds under Article 93 (2); hereinafter the same shall apply): Provided, That a certificate of fact may not be attached in the case where such certificate of fact is electronically processed under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 97 (National Housing Bond Ledger)

(1) Any National Housing Bond handling institution shall keep a National Housing Bond ledger for each type of National Housing Bonds, and record the following matters therein:

1. issue numbers of bonds;

2. estimated value of bonds;

3. interest rates of bonds;

4. dates of issue and redemption of bonds; and

5. names and resident registration numbers (in the case of a corporation, its name and business registration number) of bond purchasers. (2) National Housing Bond ledgers shall be provided in the head office of National Housing Bond handling institutions. Provided, That each branch office may, if necessary, provide a ledger and record its respective transactions therein. (3) Where a head of designated National Housing Bond handling institution has entrusted other institutions with the sale of National Housing Bonds under Article 93 (2), he/she shall prepare and keep the original copy of entrusted bonds transaction in the head office of designated institutions. Part 3 Housing Redeemable Bonds

Article 98 (Issue of Housing Redeemable Bonds)

(1) Housing Redeemable Bonds under Article 69 (1) of the Act (hereinafter referred to as the "Housing Redeemable Bonds") shall be issued at par value or at a discount.

(2) A symbol and a serial number shall be inscribed on Housing Redeemable Bonds, and the matters as referred to in the Ordinance of the Ministry Construction and Transportation shall also be entered therein.

(3) A person who has issued Housing Redeemable Bonds shall maintain a Housing Redeemable Bonds ledger, and enter the matters relating to the issue and redemption of the bonds in the ledger.

Article 99 (Issue of Housing Redeemable Bonds by Registered Constructors) (1) The "standards prescribed by Presidential Decree" in the latter part of Article 69 (1) of the Act shall mean the following requirements:

1. 500 million won or more of capital as a corporation;

2. A person who has made registration of construction business under Article 9 of the Framework Act on the Construction Industry, or who is a registered constructor falling under the proviso of Article 13 (2); and

3. A person whose average annual housing construction records for the last three years are 300 households or more.

(2) The scale of Housing Redeemable Bonds which may be issued by a registered constructor under the latter part of Article 69 (1) of the Act shall be less than the annual average number of households constructed for the last three years. Article 100 (Requirements, etc. for Issue of Housing Redeemable Bonds) (1) A person who intends to get approval for issue of Housing Redeemable Bonds under Article 69 (2) of the Act shall submit a written plan together with the following documents to the Minister of Land, Transport and Maritime Affairs. Provided, That the documents under subsection 3 may be submitted prior to the public invitation for Housing Redeemable Bonds subscription, after the issue of Housing Redeemable Bonds has been approved:

1. Documentary evidence for the ownership and other exercisable rights of the housing sites for the construction of housing, which will be redeemed under the Housing Redeemable Bonds;

2. Written guarantee of a financial institution or the Korea Housing Guarantee Company for the Housing Redeemable Bonds; and

3. Written contract with a financial institution for vicarious issuing and for the management of paid-up money.

(2) A written plan for issuing the Housing Redeemable Bonds under section (2) shall contain the following matters:

1. Title of issuer;

2. Gross amount of the paid-in capital of a company;

3. Gross amount of the Housing Redeemable Bonds to be issued;

4. Where several types of Housing Redeemable Bonds are issued, the amount of Housing Redeemable Bonds to be issued by type, and the issuing values by type;

5. Conditions and methods for the issue;

6. In the case of issue in installments, the amount in installments and their time;

7. Procedures and time for redemption;

8. Location of housing construction, types of housing, scale of units, gross number of households, scheduled date for carrying out construction, scheduled date for construction completion, and scheduled date for moving-in;

9. Methods of estimating the housing prices; 10.In the case of issue at discount, the interest rates thereon and the details of calculation;

11.Matters necessary for redemption before maturity; 12.In the case of guaranteed issue, the guarantee agency and the details of guarantee; 13.Plans for using the paid-up money; and

14.Other matters determined and publicized by the Minister of Land, Transport and Maritime Affairs.

(3) When the Minister of Land, Transport and Maritime Affairs has granted approval for the issue of Housing Redeemable Bonds, the Minister shall notify the said details to a competent Mayor/Do governor.

(4) A person who has obtained approval for issuing the Housing Redeemable Bonds shall, under the conditions as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs, prepare the draft public invitation for subscription of Housing Redeemable Bonds prior to the invitation, and submit it to the Minister of Land, Transport and Maritime Affairs.

Article 101 (Redemption, etc. of Housing Redeemable Bonds) (1) The redemption period of Housing Redeemable Bonds shall not exceed three years. In this case, the redemption period shall refer to the period from the date of issuing Housing Redeemable Bonds to the date of signing a contract for housing supply.

(2) Housing Redeemable Bonds shall not be transferred or cancelled midway. Provided, That the same shall not apply to the unavoidable cases prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs such as overseas emigration, etc.

Article 102 (Use of Paid-Up Money for Bonds)

(1) The money paid up for Housing Redeemable Bonds shall not be used for other purposes than the followings:

1. for purchasing and preparing a housing site;

2. for purchasing housing construction materials;

3. for covering the cost of construction works; and

4. for covering other expenses necessary for housing redemption, which has been approved by the Minister of Land, Transport and Maritime Affairs. (2) The money paid up for Housing Redeemable Bonds shall be managed by a financial institution designated after the consultation between the relevant guarantee agency and the issuer of Housing Redeemable Bonds. (3) The financial institution managing the paid-up money under section (2) shall, on a request from the Minister of Land, Transport and Maritime Affairs, report the current condition of management of paid-up money to the Minister.

CHAPTER 4 SPECIAL ACCOUNT FOR NATIONAL HOUSING PROJECTS, ETC.

Article 103 (Compilation and Operation, etc. of Special Account for National Housing Projects)

(1) Matters necessary for the compilation and operation of the special account for national housing projects, which will be established in local governments under Article 73 (1) of the Act, may be determined by the Municipal Ordinance of a competent local government.

(2) Under Article 73 (3) of the Act, a head of local government, which constructs and supplies National Housing, shall report to the Minister of Land, Transport and Maritime Affairs the quarterly operation of the special account for national housing projects by 20th

of the following month of each quarter's last month. In such a case where a reporter is a mayor, a head of Gun or Gu office, he/she shall submit a report to a mayor/Do governor. Article 104 Deleted

Article 105 (Savings of Occupiers)

The Minister of Land, Transport and Maritime Affairs shall hold advance consultation with the Minister of Strategy and Finance before making or revising the provisions of savings of occupiers in the Ordinance of Ministry of Land, Transport and Maritime Affairs as stipulated in Article 75 (2) of the Act.

SECTION 5 KOREA HOUSING GUARANTEE CORPORATION

Article 106 (Kind of Guarantee and Guarantee Fees) (1) The kinds of guarantees provided by the Korea Housing Guarantee Corporation under Article 77 (1) 1 of the Act shall be as follows: 1.Guarantee for presale: the following guarantees on housing (including incidental facilities and welfare facilities; hereinafter the same shall apply) constructed by a project executor (including a joint project executor under Article 12) with project plan approval or housing of more than 20 households and other facilities constructed as a same building without project plan approval under Article 15 (2). Provided, That housing of more than 20 households and other facilities constructed as a same building without project plan approval under Article 15 (2) shall receive the guarantee of (a):

(a) Guarantee for housing presale: Guarantee for presale of the relevant housing (including the use inspection and ownership preservation registration), or for refund of the paid-up down payment and the intermediate payment (limited to the case where not less than two thirds of the occupiers desire so; hereafter in item (b), the same shall apply) in the case where the project executor is unable to fulfill the contract for presale due to the causes, such as bankruptcy; and (b)Guarantee for lease of housing: Guarantee for leasing the relevant housing (including the use inspection and ownership preservation registration), or for refund of the paid-up down payment and the intermediate payment, in the case where the project executor is unable to fulfill the contract for lease due to the causes, such as bankruptcy;

2. Guarantee for defects repair: Guarantee for the repair of defects which have occurred during the defects liability period under Article 59 (1);

3. Guarantee for deposit of supervision fees: Guarantee for the payment of supervision fees, which shall be paid to a supervisor for supervising a housing construction project carried out by a registered constructor;

4. Guarantee for a housing association housing's construction: Guarantee for continuing housing construction works or for paying up a specific amount in the case where a registered constructor (referring to a builder who signed a contract in the case of a remodeling housing association and an improvement project association under Article 13 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents) who jointly carries out a project with a housing association under Article 10 (2) of the Act becomes unable to fulfill the responsibility of the relevant housing construction due to bankruptcy or other reasons (referring to the responsibility for a housing construction work from the reporting date of project undertaking to the date of use inspection);

5. Guarantee for rental deposit: Guarantee for rental deposits for public rental housing under Article 9-2 (1) of the Enforcement Decree of the Rental Housing Act;

6. Guarantee for Housing Redeemable Bonds: Guarantee for redemption in the case where a project executor who issued Housing Redeemable Bonds under Article 69 (1) of the Act is unable to redeem the Bonds with houses by the date scheduled for redemption due to bankruptcy or other reasons;

7. Guarantee for financing a housing project: Guarantee for the redemption of the principal and interests accrued from financing, which is a support for a housing construction project, and is provided under the condition that the future cash revenues accrued from the relevant housing construction project will be used as the major redemption resources

8. Guarantee for signing a subcontract and paying money: Guarantee for signing a housing construction subcontract and paying prices as referred to in Article 13-2 of the Fair Transactions in Subcontracting Act; and

9. Other guarantees as determined by the rules of the Korea Housing Guarantee Company.

(2) Guarantee fee paid to the Korea Housing Guarantee Corporation shall be determined by rules.

(3) The Korea Housing Guarantee Corporation may establish and implement the provision of detailed explanation of guarantees, the scope of liability and conditions.

Article 107 (Works related to Guarantee)

(1) "Other duties prescribed by Presidential Decree" under Article 77 (1), 5 of the Act shall refer to the Korea Housing Guarantee Corporation's duties of purchasing, renting and managing houses under construction in order to avoid the liability for debt accompanied by the guarantee under Article 106 (1), 1 and prevent loss incurred from it.

(2) The Korea Housing Guarantee Corporation may do the works of the following subsections in conducting the business as referred to in each subsection of Article 77 (1) of the Act:

1. Investigating the examination for and implementation of guarantee (including the investigation of assets), and request to relevant persons to provide necessary data;

2. Requesting to a supervisor of housing construction work to provide data on the method of construction project undertaking, construction progress, materials and their quality, etc.; and

3. Works related to guarantees such as an application for use inspection, etc. as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

CHAPTER VI-2 TRANSACTIONS OF HOUSING

Article 107-2 (Designation, etc. of Housing Transaction Reporting Zones) (1) Under Article 80-2 (1) of the Act, the Minister of Land, Transport and Maritime Affair may designate areas falling under any of the followings as housing transaction reporting zones:

1. an area where sale price increase of apartments (hereinafter referred to as the "apartment") under Asterisk 1, 2 (a) of the Enforcement Decree of the Building Act is over 1.5% on the month immediately preceding the month of designation (hereinafter referred to as the "immediately preceding month").

2. an area where sale price increase of apartments is over 3% for the 3 months from the immediately preceding month.

3. an area where sale price increase of apartments is over two times national average apartment price increase for one year from the immediately preceding month.

4. an area which is largely concerned to be speculative and thereby is requested to be designated as a housing transaction reporting zone by a mayor, a head of Gun or Gu office.

(2) Multifamily Housing subject to housing transaction reporting under Article 80-2 (1) of the Act shall be apartments.

(3) The Minister of Land, Transport and Maritime Affairs, after designating a housing transaction reporting zone under section (1), shall publicize the following matters and promptly notify to a competent mayor, a head of Gun or Gu office.

1. Deleted

2. scope of a housing transaction reporting zone;

3. Multifamily Housing subject to housing transaction reporting. (4) A mayor, a head of Gun or Gu office shall promptly inform the notification under section (3) to a head of a competent registration office, and allow it to be disclosed to the public for more than 15 days.

(5) The provisions of section (3) and (4) shall apply mutatis mutandis to the cancellation of housing transaction reporting zones under Article 80-2 (6) of the Act.

Article 107-3 (Matters required to be Reported in Housing Transaction Reporting Zones)

Matters to be reported under Article 80-2 (1) of the Act shall be as follows: Provided, That section 5-2 and 3 shall not apply to housing transacted at less than 600 million won under section 5:

1. information of sellers and buyers;

2. contract date, intermediate payment date and remaining payment date;

3. the location of housing to be transacted, land category and size;

4. kind and scale of housing to be transacted;

5. housing price; 5-2. a plan for fund raising for acquiring housing; 5-3. a plan for moving-into the housing

6. Deleted

7. Deleted

8. Terms of contract or a deadline and its related terms if there is a deadline. CHAPTER VI-3 MUTUAL AID BUSINESS

Article 107-4 (Scope of Mutual Aid Business)

The scope of Mutual Aid business allowed for an association (hereinafter referred to as the "association" in this chapter) under Article 81 (2) of the Act as stipulated in Article 81-2 (1) of the Act shall be as follows:

1. a project for fund raising or payment of Mutual Aid benefits to guarantee the liability of compensation for loss lied upon housing managers, etc. under Article 55-2 of the Act;

2. an incidental business of Mutual Aid business which is approved by the Minister of Land, Transport and Maritime Affairs.

Article 107-5 (Provisions on Mutual Aid)

Provisions of Mutual Aid under Article 81-2 (2) of the Act shall contain the followings:

1. contents of Mutual Aid contract: liability of association for Mutual Aid, benefits of Mutual Aid, premiums for Mutual Aid, request for Mutual Aid benefits and payment procedures, matters about compensation for loss and right to subrogate, and other necessary matters for Mutual Aid. In this case, premiums for Mutual Aid shall be determined in consideration of the rate of accidents and guarantee insurance premiums, etc.

2. accounting standards: concrete standards shall be created in appropriation of the purposes of each fund and accounting standards after dividing premiums for Mutual Aid into a fund for compensation for loss and a fund for welfare.

3. accumulation rate of liability reserve: more than 10/100 of revenues from the premiums for Mutual Aid. In this case, the rate of accidents and Mutual Aid benefits shall also be considered.

Article 107-6 (Publication of Operation Records of Mutual Aid Business) Under Article 81-2 (5) of the Act, an association shall report the operation records of Mutual Aid business including all the following items to the Minister of Land, Transport and Maritime Affairs within 2 months from the last date of the previous fiscal year, and shall publicize them in daily newspapers or association's paper.

1. balance sheet, statement of profit and loss, and audit report;

2. revenues of premiums for Mutual Aid, payment of Mutual Aid benefits and accumulation of liability reserve; and

3. other matters related to the operation of Mutual Aid business. CHAPTER 7 HOUSING POLICY DELEBERATION COMMITTEE

Article 108 (Establishment of Housing Policy Deliberation Committee) (1) A housing policy deliberation committee (hereinafter referred to as the "housing policy deliberation committee) under Article 84 of the Act shall be establi shed with not more than 20 members including one chairman.

(2) The chairman of the committee shall be the Minister of Land, Transport and Maritime Affairs.

(3) The members of the committee shall be as follows:

1. Vice minister of Strategy and Finance, Vice Minister of Education, Science and Technology,

2. a mayor/Do governor who governs a district scheduled for housing site preparation (only limited to the case of deliberating matters of Article 84 (1), 3 of the Act);

3. a of Prime Minister's Office who is in charge of housing policy;

4. CEO of the Korea National Housing Corporation and CEO of the Korea Land Corporation;

5. a person with abundant knowledge and experience of housing appointed by the Minister of Land, Transport and Maritime Affairs. (4) There shall be a general manager who is in charge of the housing policy deliberation committee, and the general manager shall be one of high-level government officials who work in the Ministry of Land, Transport and Maritime Affairs or one of the 3rd

rank officials appointed by the Minister of Land, Transport and Maritime Affairs. (5) A member falling under section (3), 2 shall be considered as a member only when deliberating relevant agendas. And the term of office of members falling under section (3), 5 shall be 2 years and may be reappointed. Article 109 (Duty of Chairman)

(1) The chairman shall represent the housing policy deliberation committee and have the whole responsibility for the committee.

(2) Where the chairman cannot fulfill his/her duties due to unavoidable reasons, a member falling under Article 108 (3), 1 will fulfill the duties on behalf of the chairman.

Article 110 (Summons of Meeting and Quorum for Resolution) (1) The chairman of the committee may summon a meeting and shall be the chairman of the meeting.

(2) Where the chairman of the committee summons a meeting, the chairman shall notify the meeting date, location and agendas to be deliberated to the committee members 3 days before the meeting date.

(3) The meeting of the committee shall be started with the presence of more than half of committee members and agendas will be resolved by more than half of present members' votes.

Article 111 (Establishment of Working-Level Committee) (1) The Housing Policy Deliberation Committee may establish a working-level committee to efficiently operate the committee and handle matters entrusted by the committee.

(2) The chairman of the working-level committee shall be vice minister of Land, Transport and Maritime Affairs, the vice chairman shall be a high-level government official working in the Ministry of Land, Transport and Maritime Affairs or a 3rd

rank official appointed by the Minister of Land, Transport and Maritime Affairs and the working-level committee members shall be as follows:

1. a high-level government official among the members of Article 108 (3), 1, who is working in a relevant organization or an appointed 3rd rank official of the relevant

organization;

2. an employee of the Korea National Housing Corporation or the Korea National Land Corporation who is recommended by the CEOs and appointed by the Minister of Land, Transport and Maritime Affairs;

3. an executive recommended by a fund trustee and appointed by the Minister of Land, Transport and Maritime Affairs; and

4. government officials of the relevant agencies appointed by the chairman of the working-level committee.

Article 112 (Cooperation of Relevant Government Agencies) The Housing Policy Deliberation Committee and the working-level committee may order a head of relevant agency and persons concerned to be present and give opinions. Article 113 (Payment, etc.)

The members of the Housing Policy Deliberation Committee or the working-level committee, government officials or experts attending meetings the Housing Policy Deliberation Committee or the working-level committee may be paid for necessary expenses from the budget. Provided, That the same shall not apply to the government officials who participate in the meetings with direct interest for their duties.

Matters other than stipulated in this Enforcement Decree in relation to the Housing Policy Deliberation Committee or the working-level committee shall be determined through the resolution of the Housing Policy Deliberation Committee or the working- level committee. Article 115 (City/Do Housing Policy Deliberation Committee) (1) A City/Do Housing Policy Deliberation Committee under Article 85 (2) of the Act may be established with not more than 15 members including the chairman. (2) The chairman shall be a mayor/Do governor.

(3) The members of the committee shall be recommended or appointed by a mayor/Do governor among persons with expertise and experience in housing. (4) A City/Do Housing Policy Deliberation Committee shall deliberate the following items:

1. establishment or modification of city/Do comprehensive housing plan;

2. establishment or revision of Ordinance under the Act or this Enforcement Decree (only limited to Ordinance proposed by a competent mayor/Do governor) (5) Required qualifications, appointment, recommendation and term of office of committee members, and establishment of meeting and payment for members and other matters related to the operation of a City/Do Housing Policy Deliberation Committee shall be prescribed by the Ordinance of a competent city/Do. CHAPTER 8 SUPPLEMENTARY RULES

Article 116 (Digitalization of Housing Administration Information and Data Management)

(1) The Minister of Land, Transport and Maritime Affairs under Article 86 (1) of the Act may establish and operate the management mechanisms of the following housing information in order to manage the information more efficiently and systematically as prescribed by the Ordinance of Ministry of Land, Transport and Maritime Affairs.

1. information related to safety and maintenance of Multifamily Housing;

2. information of housing transaction records and housing prices under Article 80-2 of the Act.

(2) The Minister of Land, Transport and Maritime Affairs may designate an institution and entrust all or part of work related to the establishment and operation of information management mechanism to the institution.

(3) The Minister of Land, Transport and Maritime Affairs may order the submission of documents related to orders under the Act or this Enforcement Decree in the forms of diskette or disc or via an information network.

(4) The "matters prescribed by Presidential Decree" under Article 86 (3) of the Act shall be as follows:

1. current condition, a plan and a schedule for the supply of housing sites developed and supplied by a local government, the Korea National Housing Corporation, the Korea National Land Corporation under the Act or the Act on the Promotion of Housing Site Development.

2. current condition of the number of people who subscribed for savings of occupiers in the relevant housing site and neighboring areas.

3. current condition of approval for housing construction project plans in the relevant housing site and neighboring areas.

4. current condition of registration and stationing of housing managers. Article 117 (Entrusting of Authority)

The Minister of Land, Transport and Maritime Affairs may entrust his/her following authorities to a mayor/Do governor under Article 87 (1) of the Act.

1. for registration cancellation and business suspension of a constructor for housing construction or a construction for housing site preparation under Article 13 of the Act;

2. for approval for project plan, approval for plan modification, cancellation of approval and application for the registration of project undertaking under Article 16 of the Act. Provided, That the same shall not apply to the cases falling under Article 15 (4), 1 where a housing construction project is carried out in an area where a housing site preparation project is also being undertaken.

3. for provisional approval for use and use inspection under Article 29 of the Act;

4. for the construction of Industrialized Housing, etc. under Article 35 (2) of the Act; 4-2. for accepting a report, an application for premium payment and a request for investigation under Article 89-2 of the Act, a request for investigation and an application for notification under Article 118-2 of this Enforcement Decree.

5. for report and investigation under Article 90 of the Act; and

6. for inquiry under Article 93, 1 and 2 of the Act. Article 118 (Entrusting of Works)

(1) The Minister of may entrust any of the following works to the Korea Research Institute for Human Settlements and the Korea National Housing Corporation established under the Act on the Establishment, Operation and Development of Government-Supported Research Institute, the Korea Appraisal Board established under the Act on the Contribution in-kind of State Properties and designated fund trustees under Article 87 (2) of the Act.

1. a survey of actual conditions of residence under Article 5 of the Act;

2. registration of a housing construction project and a housing site preparation project under Article 9 of the Act;

3. an application for business records under Article 15 of the Act;

4. Deleted

5. a survey of housing price movement in the comprehensive management of housing information under Article 86 (1) of the Act. In this case, the actual expenses for a survey of housing price movement and data collection, etc. may be supported from the budget.

(2) The Minister of Land, Transport and Maritime Affairs under Article 87 (2) of the Act may entrust the work of carrying out the qualifying exam for housing managers to the Human Resources Development Service of Korea.

(3) A mayor/Do governor may designate and entrust the following works to a specialized housing management institution or a group under Article 87 (2) of the Act.

1. an adjustment education for long-term repair under Article 47 of the Act;

2. education for housing managers and heads of management office under Article 58 of the Act.

(4) Under Article 87 (2) of the Act, a mayor, a head of Gun or Gu office may designate an association under Article 49 of the Act and entrust the work of installation safety education. Article 118-2 (Persons who Deserve Premium for Reporting) (1) Under Article 89-2 of the Act, the Minister of Land, Transport and Maritime Affairs may grant a premium to any person who reports any of the following wrongdoings (hereinafter referred to as the "wrongdoings"):

1. a person who resells a status of occupiers or housing in violation of Article 41-2 of the Act;

2. a person who mediates the resale of a status of occupiers or housing in violation of Article 41-2 of the Act.

(2) A person, who intends to report any wrongdoing, shall submit documentary evidence which proves the wrongdoing together with an application form of report. (3) The Minister of Land, Transport and Maritime Affairs, who receives a report under section (2), shall request a competent investigation office to investigate the reported wrongdoing, and the requested investigation office shall notify the result of investigation (including the result of conclusive judgement, such as penalty under Article 96, 2 of the Act) to the Minister of Land, Transport and Maritime Affairs.

(4) The Minister of Land, Transport and Maritime Affairs shall notify the result of investigation under section (3) to the reporter.

(5) A person, who intends to get premiums for reporting wrongdoings, shall submit a written application for premiums together with the following documents to the Minister of Land, Transport and Maritime Affairs after receiving the notice under section (4), and the Minister of Land, Transport and Maritime Affairs shall pay the premiums within 30 days from the application date:

1. a copy of the result of investigation;

2. a copy of bank account. (6) The detailed criteria for paying premiums under section (5) shall be prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs.

Article 119 (Supervision on Project Executors, etc.) A head of local government, who gives the orders of project suspension and returning to the original state, etc. to a project executor, shall promptly notify to the Minister of Land, Transport and Maritime Affairs.

Article 120 (Supervision on Associations)

The Minister of Land, Transport and Maritime Affairs may order an association to report any of the following matters if considers necessary to supervise under Article 92 (1) of the Act:

1. matters for resolution of a general assembly or a board of directors;

2. matters necessary for the actual condition of members;

3. matters important to the works of associations such as an operation plan;

4. other matters necessary for housing policy and housing management. Article 121 (Inspection on Management Soundness of the Korea Housing Guarantee Corporation)

(1) The Financial Services Commission, which carries out a necessary inspection to maintain the management soundness of the Korea Housing Guarantee Corporation under Article 92 (3) of the Act, may set criteria for inspection and inform them to the Korea Housing Guarantee Corporation in advance.

(2) The Financial Services Commission may request the governor of the Financial Supervisory Service to send his/her workers if considers necessary for the inspection under section (1).

(3) A person, who inspects the management soundness of the Korea Housing Guarantee Corporation, shall hold evidence of authority and present it to the persons concerned.

CHAPTER 9 PENAL PROVISIONS

Article 122 (Imposition of Fines)

(1) The criteria for the imposition of fines under Article 101 and 101-2 of the Act shall be stipulated in asterisk 13.

(2) The Minister of Land, Transport and Maritime Affairs or a head of local government may increase or reduce the fines imposed under Asterisk 13 within the range of 1/2 (1/5 for violation of Article 101-2 of the Act) of the originally imposed fines in consideration of reasons for violation, result and frequency. (3) The amount of the increased fines under section (2) shall not exceed the following amounts.

1. 10 million won for the violation of Article 101 (1) of the Act;

2. 5 million won for the violation of Article 101 (2) of the Act;

3. fines equivalent to 5 times the acquisition tax of the relevant house for the violation of Article 101-2 of the Act.

ADDENDA Article 1 (Enforcement Date)

This Decree shall take effect from November 30, 2003. Provided, That revised provisions of Article 13 (1), 3 of this Enforcement Decree shall take effect from November 30, 2004 and revised provisions of Article 45 (5) of this Decree shall take effect from May 30, 2004.

Article 2 (Abolition of Other Enforcement Decrees) The Enforcement Decree of Multifamily Housing management shall be abolished. Article 3 (Application Example of Housing Associations) Revised provisions of Article 37 (2) and Article 38 (1) shall apply to housing associations starting from the housing association which made the first application for authorization after this Enforcement Decree takes effect. Article 4 (Application Example of Saving a Deposit for Defect Repair) Revised provisions of Article 60 (1) shall apply starting from the first application for use inspection made under Article 29 of the Act after this Enforcement Decree takes effect.

Article 5 (Application Example of Delegation of Project Plan Approval) Revised provisions of Article 117, 2 shall apply to the first application for project plan approval made after this Enforcement Decree takes effect. Article 6 (General Interim Measures)

Administrative dispositions and other procedures and acts taken under the Enforcement Decree of the Housing Construction Promotion Act and the Enforcement Decree of Multifamily Housing Management before this Enforcement Decree takes effect shall be considered as having been taken under this Enforcement Decree. Article 7 (Interim Measures on Registration Criteria for Housing Construction Projects) A Special Purpose Corporation established under the Special Act, which is a project executor falling short of registration criteria under Article 10 (2) of the revised Enforcement Decree shall comply with the registration criteria within 2 years from the enforcement date of this Decree.

Article 8 (Interim Measures on Criteria for Administrative Dispositions) In respect of administrative dispositions imposed against violations before this Enforcement Decree takes effect, if the criteria have been strengthened, the dispositions shall be under the previous provisions, whereas if the criteria have been relaxed, the dispositions shall be under this Enforcement Decree. Article 9 (Interim Measures on Criteria for Engineers and Equipments of Multifamily Housing Management Body)

A management body of Multifamily Housing, which falls short of the criteria for engineers and equipments of management body of Multifamily Housing under Asterisk 4 of the revised provisions of this Decree at the time of enforcement, shall comply with the criteria within 3 months from the enforcement date of this Decree. Article 10 (Interim Measures on Standing Rules of the Management Agreement) (1) A mayor/Do governor shall coordinate the standing rules of the management agreement with the revised provisions of Article 57 within 3 months from the enforcement date.

(2) Occupiers, etc. shall coordinate the previous management agreement with the revised management agreement under section (1)

Article 11 (Interim Measures on Registration Criteria for Housing Management Companies)

A housing manager, who falls short of the criteria for housing management equipments under Asterisk 8 of the revised provisions at the time of enforcement of this Decree, shall meet the criteria within 3 months from the enforcement date of this Decree. Article 12 (Interim Measures on the Calculation of Working Period of Housing Managers)

Notwithstanding revised provisions of Article 73 (1), the working period of housing managers, who got the certificates of housing managers before the enforcement of this Decree, shall be calculated under the previous provisions. Article 13 (Interim Measures on Examinees, who will be exempt from the part of the exam for housing manager)

Persons, who have been exempt from the first exam for housing managers under Article 27 (7) of the Housing Management Decree before the enforcement of this Decree, shall be only exempt from the first of the exam, which will be carried out for the first time after the enforcement of this Decree.

Article 14 (Interim Measures on National Housing Bonds, etc.) National Housing Bonds or lotteries issued under the previous provisions before the enforcement of this Decree shall be considered as having been issued under this Enforcement Decree.

Article 15 (Revision of Other Acts)

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from Mar. 1, 2004. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from Apr. 1, 2004. ADDENDA (1) (Enforcement Decree) This Decree shall take effect from Mar. 30, 2004. Provided, That revised provisions of Article 90, 91, 94 and 97 shall take effect from Apr. 1,

2004. (2) (Term of Validity) The provisions on in the revised provisions of Article 107-2 shall be valid until the date, which has been 2 years from the enforcement date of this Decree.

(3) (Interim Measures on National Housing Bonds) The redemption method and procedure for National Housing Bonds issued before the enforcement of this Decree shall be under the previous provisions

ADDENDA (1) (Enforcement Date) This Decree shall take effect from the promulgation date. (2) (Application Example of Registration Criteria for Housing Construction Projects) The revised provisions of Article 10 (2) shall apply starting from the first application for a housing construction project made after the enforcement of this Decree. (3) (Application Example of Guarantee for Presale of Housing) The revised provisions of Article 106 (1), 1 shall apply starting from the first contract made with the Korea Housing Guarantee Corporation after the enforcement of this Decree. (4) (Application Example of Remodeling Welfare Facility) The revised provisions of Asterisk 3, 7 shall apply starting from the first application for remodeling welfare facilities after the enforcement of this Decree.

(5) (Interim Measures on Replacement of Housing Managers) Where the housing manager are replaced under the management agreement at the time of enforcement of this Decree doesn't have procedures for listening to opinions under the revised provisions of Article 52 (4), the previous provisions of Article 52 (4) shall apply. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. ADDENDUM This Decree shall take effect from the promulgation date. ADDENDUM This Decree shall take effect from March 9, 2005. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from July 28, 2005. ADDENDUM This Decree shall take effect from the promulgation date. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Provided, That revised provisions of Article 77 (3), 108 (4) and 111 (2) shall take effect from July 1, 2006.

Article 2 (Application Example of Authorization for Remodeling Association) The revised provisions of Article 37 (1), 1, shall apply starting from the first application for authorization for a remodeling association made after the enforcement of this Decree. Article 3 (Application Example of Restriction Period of Housing Resale) The revised provisions of Article 45-2 (2) and (3) shall apply starting from the first application for approval for housing presale ads made after the enforcement of this Decree. Article 4 (Interim Measures on Standing Rules of Management Agreement) (1) A mayor/Do governor shall coordinate the previous standing rules of the management agreement with the revised provisions of Article 57 (1), 20 and 21 within 2 months from the enforcement date of this Decree. (2) Occupiers, etc. shall coordinate the previous management agreement with the revised management agreement under section (1) within 3 months from the enforcement date of this Decree.

Article 5 (Interim Measures on Housing Sites purchased by Type 3 National Housing Bonds) Notwithstanding the revised provisions of Article 95 (5), housing sites purchased by Type 3 National Housing Bonds shall be under the previous provisions. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from April 1, 2006. ADDENDUM This Decree shall take effect from the promulgation date. ADDENDA (1) (Enforcement Date) This Decree shall take effect from the promulgation date. (2) (Application Example of Restriction on Mortgage Settlement, etc.) The revised provisions of Article 44 (2) shall apply starting from the first loans granted from a financial institution after the enforcement of this Decree. (3) (Application Example of Exception on Mortgage Settlement, etc.) The revised provisions of Article 45-2 (4), 6 shall apply starting from the first debt incurred to a financial institution after the enforcement of this Decree. (4) (Application Example of Housing Transaction Reporting) The revised provisions of Article 107-3 shall apply starting from the first ownership transfer housing located in a Housing Transaction Reporting Zone.

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Article 2 (Application Example on Designation of Supervisors) Revised provisions of Article 26 (1) 1 of this Decree shall apply staring from the first application for approval for a housing construction project plan or for permission for remodeling after the enforcement of this Decree.

Article 3 (Application Example on Authorization for Housing Association) Revised provisions of Article 37 (1) 1 of this Decree shall apply starting from the first application for authorization for a housing association from the enforcement of this Decree.

Article 4 (Application Example on Project Executor's Defect Repair and Refund of Deposit for Defect Repair) Revised provisions of Article 61 and Asterisk 6, 2 shall apply starting from the first application made for project plan approval under Article 16 of the Act, for permission under Article 42 (2) 2 of the Act or for construction permission under Article 8 of the Building Act after the enforcement of this Decree. Article 5 (Interim Measures on Reporting the Change of Management Method) Under Article 52 (3) of the Decree prior to the enforcement of this Decree, the change of management method, which was reported to a mayor, a head of Gun or Gu office, shall be reported again under the latter part of revised provisions of Article 52 (3) of this Decree within 30 days from the enforcement date of this Decree. Article 6 (Interim Measures on Head of Management Office) Where a head of management office is dismissed or vacant at the time of enforcement of this Decree, a delegation of occupiers shall appoint the head of management office within 30 days from the enforcement date under revised provisions of Article 53 (4). Article 7 (Interim Measures on Standing Rules of Management Agreement) (1) A mayor/Do governor shall coordinate the standing rules of the management agreement with revised provisions of Article 57 (1) 20 of this Decree within one month from the enforcement of this Decree.

(2) Occupiers, etc. shall coordinate the standing rules of the management agreement with revised provisions of Article 57 (1) 20 of this Decree within three months from the enforcement of this Decree.

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. ADDENDA ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. ADDENDUM This Decree shall take effect from April 21, 2008. Provided, That revised provisions of Article 118 shall take effect from Jan. 1, 2008.

ADDENDUM This Decree will take effect from the promulgation date. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Hereinafter Omitted.

Article 2 through 5 Omitted

Article 6 (Revision of Other Acts) Omitted

ADDENDUM This Decree shall take effect from the promulgation date. Provided, That revised provisions of Article 45-2 (2), 2, (c) shall take effect from June 29, 2008. ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from June 22, 2008. Article 2 through 9 Omitted

Article 10 (Revision of Other Acts) Omitted

Article 11 Omitted

ADDENDA Article (Enforcement Date) This Decree shall take effect from Feb. 4, 2009. Article 2 through 25 Omitted

Article 26 (Revision of Other Acts) Omitted

Article 27 and 28 Omitted

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from Nov. 22, 2008. Article 2 through 4 Omitted

Article 5 (Revision of Other Acts) Omitted

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Hereinafter Omitted

Article 2 and 3 Omitted

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Article 2 and 3 Omitted

Article 4 (Revision of Other Acts) Omitted

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Provided, That revised provision of Article 58 (1), 5-2, Asterisk 5 and 6 shall take effect after 6 months from the promulgation date.

Article 2 (Application Example of Maintenance Fees and Defects Repair of Intelligence Home Networking Installations) Revised provision of Article 58 (1), 5-2, Asterisk 5 and 6 shall apply starting from the first Intelligence Home Networking Installation after the enforcement of this Decree.

ADDENDA Article 1 (Enforcement Date) This Decree shall take effect from the promulgation date. Article 2 (Interim Measures on the Restriction Period of Resale) With respect to housing supplied in a public site in the Seoul Metropolitan Area (only referring to the housing for which presale ads were applied for approval before Feb. 24, 2006, the enforcement date of partially revised Enforcement Decree of Housing Act No. 19356), previous provisions (referring to provisions prior to Decree No. 19356) shall apply, notwithstanding Article 45-2 (2), 1, (a).

ADDENDUM This Decree shall take effect from the promulgation date. ADDENDEM

This Decree shall take effect from the promulgation date. Provided, That revised provisions of Article 46, 46-2 through 62-5 shall take effect from Mar. 22, 2009. ADDENDA Article 1 (Enforcement Decree) This Decree shall take effect from the promulgation date. Provided, That revised provisions of Article 3, 12, 15-2, 37 (3), 39, 42-2 and 42-16 shall take effect from May 4, 2009.

Article 2 (Application Example of Joint Project of District and Workplace Housing Associations) Revised provisions of Article 12 and 39 (1), 2 shall apply starting from the district or workplace housing association that make the first application for projects under Article 16 of the Act after the enforcement of this Decree. Article 3 (Application Example of Purchasing Price of Housing Sites other than Public Sites) Revised provisions of Article 42-2 shall apply starting from the first application made for approval for housing presale ads after the enforcement of this Decree. Article 4 (Interim Measures on Replacement and Admissions of Members of District and Workplace Housing Associations) With respect to the district or workplace housing association who made the first application for authorization under Article 32 of the Act before Sep. 1, 2007, previous provisions (referring to provisions prior to Decree No. 20208) shall apply notwithstanding revised provisions of Article 37 (3), 39 (1) 3 and 5. Article 5 (Interim Measures on Administrative Dispositions) (3) Administrative dispositions imposed on violations before the enforcement of this Decree shall be under the 1st

standards of administrative dispositions in the

Revised Decree.

(4) Under the revised provisions of this Decree, the first violation after the enforcement of this Decree shall be considered as the 1st violation in the

administrative disposition standards, which will be applied according to the number of violations.


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