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ENFORCEMENT DECREE OF THE SPECIAL ACT ON THE PROMOTION OF URBAN RENEWAL

ENFORCEMENT DECREE OF THE SPECIALACT ON THE PROMOTION OF URBAN RENEWAL

[Effective Apr. 21, 2009] [Presidential Decree No. 21445, Apr. 21, 2009, amended by other laws]

The Minister of Land, Transport and Maritime Affairs (Housing Redevelopment Division) 02-2110-6240

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

The purpose of this Decree shall be to prescribe matters delegated by the Special Act on the Promotion of Urban Renewal and matters necessary for the enforcement thereof. CHAPTER II DESIGNATION OF REGENERATION PROMOTION

DISTRICTS

Article 2 (Matters Included in Required Attachments to Application for Designation of Regeneration Promotion District)

"Any other matters as prescribed by the Presidential Decree" as set forth in Article 4 (2) 8 of the Special Act on the Promotion of Urban Renewal (hereinafter referred to as the "Act") shall refer to the following:

1. The category of the regeneration promotion district;

2. The target year of completion for a renewal promotion project to be implemented within the regeneration promotion district;

3. Any data supporting the necessity for the promotion of renewal for the applicable regeneration promotion district, including but not limited to: inner city area, suburban center, community hub, or any other spatial status represented by the regeneration promotion district; the characteristics of the regeneration promotion district; and the characteristics of neighboring areas; and

4. Any other matters as prescribed by the municipal ordinance of the Seoul Metropolitan Government, metropolitan government, or Do government (hereinafter referred to as the "city or Do government").

Article 3 Public Viewing

If public notice under the main clause of Article 4 (3) of the Act is to be held, the mayor or head of Gun or Gu (autonomous Gu; hereinafter the same shall apply) shall, in advance, publish the summary and place of the public notice in the official gazette and website of the applicable local government and maintain relevant documents available at the place of public viewing.

Article 4 (Non-Material Modification of Regeneration Promotion District) (1) "Such non-material matters as prescribed by the Presidential Decree" as set forth in the proviso of Article 4 (3) of the Act shall refer to any of the following:

1. Modification limited to less than ten percent of the size of the regeneration promotion district;

2. Modification limited to no more than five years of the target year of completion for a renewal promotion project to be implemented within the regeneration promotion district;

3. Any modification made to correct simple errors in land size etc.; or

4. Any other matters as prescribed by the municipal ordinance of the city or Do government.

(2) "Such non-material matters as prescribed by the Presidential Decree" as set forth in the latter part of Article 5 (1) of the Act shall refer to any of the following:

1. Modification limited to less than ten percent of the size of the regeneration promotion district; provided, however, that any modification resulting in a change of no less than five percent but less than ten percent shall require a review by the City/Do Urban Planning Committee under Article 113 of the National Land Planning and Utilization Act (hereinafter referred to as the "City/Do Urban Planning Committee") or the Urban Regeneration Committee under Article 34 of the Act (hereinafter referred to as the "Urban Regeneration Committee").

2. Modification limited to no more than five years of the target year of completion for a renewal promotion project to be implemented within the regeneration promotion district;

3. Any modification made to correct simple errors in land size etc.; or

4. Any other matters as prescribed by the municipal ordinance of the city or Do government.

Article 5 (Publication of Regeneration Promotion District) If the designation or modification of a regeneration promotion district is published under Article 5 (4) of the Act, the Seoul Metropolitan Mayor, any metropolitan mayor, or Do governor (hereinafter referred to as the mayor/Do governor) shall publish a summary of the regeneration promotion district designation, including the following, as well as the place where relevant documents and drawings are available for inspection:

1. The name, location, and size of the regeneration promotion district;

2. The category of the regeneration promotion district;

3. The purpose of the designation of the regeneration promotion district;

4. The target year of completion for a renewal promotion project to be implemented within the regeneration promotion district;

5. A contour map showing the boundaries of the regeneration promotion district; and

6. Matters concerning the designation of an area subject to the permission of land transactions under the provisions of Article 117 of the National Land Planning and Utilization Act;

Article 6 (Requirements for Designation of Regeneration Promotion District) (1) "Where otherwise prescribed by the Presidential Decree" as set forth in Article 6 (2) 4-2 of the Act shall refer to any area including the present site of a large facility to be relocated in accordance with a plan of the State or the local government requiring the renewal of its urban functions. (2) If the mayor/Do governor intends to mitigate the size requirements for a regeneration promotion district under the proviso of Article 6 (3) of the Act, the following criteria shall be applicable:

1. Any metropolitan city or any city with no less than 1,000,000 residents but less than 1,500,000:

(a) residential: no less than 400,000 square meters; (b) downtown: no less than 200,000 square meters;

2. Any metropolitan city or any city with less than 1,000,000 residents: (a) residential: no less than 300,000 square meters; (b) downtown: no less than 150,000 square meters;

3. Any area with dilapidated infrastructure where four or more improvement zones under Article 4 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents are contiguously located: (a) residential: no less than 150,000 square meters; (b) downtown: no less than 100,000 square meters;

4. Any area for which a renewal promotion project is intended to be undertaken by combining any mountainous or hilly area, or any other area having substandard housing conditions and the necessity to protect scenic values with any station area or any other area where development conditions are relatively favorable: (a) residential: no less than 150,000 square meters; (b) downtown: no less than 100,000 square meters; Article 7 (Publication of Invalidation Designation of Regeneration Promotion District, etc.)

(1) The publication of the invalidation or revocation of a regeneration promotion district designation under Article 7 (3) of the Act shall include the following:

1. The name, location, and size of the regeneration promotion district;

2. The category of the regeneration promotion district;

3. The purpose of the designation of the regeneration promotion district;

4. The date of invalidation or revocation of the regeneration promotion district designation; and

5. The reason for the invalidation or revocation of the regeneration promotion district designation.

(2) If the mayor/Do governor has completed the publication under paragraph (1), such mayor/Do governor shall submit a report thereon to the Minister of Land, Transport and Maritime Affairs as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. CHAPTER III DEVELOPMENT AND FINALIZATION OF RENEWAL PROMOTION PLAN

Article 8 (Matters to Be Included in Renewal Promotion Plan) "Any other matters as prescribed by the Presidential Decree" as set forth in Article 9 (1) 15 of the Act shall refer to the following:

1. The overall direction and goals of the improvement of the regeneration promotion district;

2. Plans for managing and improving intact areas;

3. Plans for designating and modifying zoning districts (if necessary);

4. Any of the following matters applicable to each renewal promotion zone: (a) matters as set forth in the subparagraphs of Article 4 (1) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents; or

(b) matters as set forth in the subparagraphs of Article 5 (1) of the Urban Development Act.

5. Matters applicable to such criteria for the development of a renewal promotion plan as separately determined by the Minister of Land, Transport and Maritime Affairs, if any; and

6. Any other matters as prescribed by the municipal ordinance of the city or Do government.

Article 9 (Public Notice and Hearing for Development of Renewal Promotion Plan) (1) If a public notice under the main clause of Article 9 (2) of the Act is to be held, the mayor or head of the Gun or Gu shall, in advance, publish the summary and place of the public notice in the official gazette and website of the applicable local government and maintain relevant documents available at the place of public viewing. (2) If the mayor or head of the Gun or Gu intends to hold a public hearing under the main clause of Article 9 (2) of the Act, such mayor or head shall publish the following in a daily newspaper of general circulation distributed nationwide or primarily in the applicable region at least once no later than fourteen days prior to the scheduled date of the hearing.

1. The purpose of the public hearing;

2. The date, time, and place of the hearing;

3. An overview of the renewal promotion plan; and

4. Any other necessary matters. Article 10 (Non-Material Modification of Renewal Promotion Plan) (1) "Such non-material matters as prescribed by the Presidential Decree" as set forth in the proviso of Article 9 (2) of the Act shall refer to any of the following:

1. Matters as set forth in the subparagraphs of Article 12 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (limited to any renewal promotion project that also falls within the scope of an improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents);

2. Matters as set forth in the subparagraphs of Article 7 of the Enforcement Decree of the Urban Development Act (limited to any renewal promotion project that also falls within the scope of an urban development project under the Urban Development Act); 2-2. Matters as set forth in the subparagraphs of Article 22 (1) of the Special Act on the Promotion of Traditional Marketplaces and Shopping Districts;

3. Matters as set forth in the subparagraphs of Article 25 (3) of the National Land Planning and Utilization Act (limited to any renewal promotion project that also falls within the scope of an urban planning facility project under the National Land Planning and Utilization Act);

4. Such matters as deemed non-material in the renewal promotion plan; or

5. Any other matters as prescribed by the municipal ordinance of the city or Do government.

(2) "Such non-material matters as prescribed by the Presidential Decree" as set forth in the proviso of Article 12 (1) of the Act shall refer to any of the following:

1. Matters as set forth in subparagraphs 3 through 8 of Article 12 and subparagraphs 1 and 2 of Article 13-2 (1) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (limited to any renewal promotion project that also falls within the scope of an improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents);

2. Matters as set forth in the subparagraphs of Article 14 of the Enforcement Decree of the Urban Development Act (limited to any renewal promotion project that also falls within the scope of an urban development project under the Urban Development Act);

3. Matters as set forth in subparagraphs 1 through 3 and 7 of Article 25 (3) of the National Land Planning and Utilization Act (limited to any renewal promotion project that also falls within the scope of an urban planning facility project under the National Land Planning and Utilization Act);

4. Such matters as deemed non-material in the renewal promotion plan; or

5. Any other matters as prescribed by the municipal ordinance of the city or Do government.

Article 11 (Commission etc. of Master Planner)

(1) If a mayor/Do governor intends to commission any person as a senior planner under Article 9 (3) of the Act, such mayor or governor shall hear the opinions of the mayor or the head of the Gun or Gu in advance.

(2) From the stage of developing a renewal promotion plan, any person authorized to establish such renewal promotion plan under the provisions of Article 9 (3) (hereinafter referred to as a "renewal promotion planning authority") may designate as a senior project manager any other person as set forth in subparagraphs 1 through 3 of Article 9 (1) in order to ensure the efficient implementation of projects; (3) The senior planner shall make efforts to ensure that the renewal promotion plan developed under his or her supervision will be finalized under Article 12 (1) of the Act. (4) The senior planner shall present his or her opinions on any modification to the renewal promotion plan if such opinions are requested by the renewal promotion planning authority.

(5) The Minister of Land, Transport and Maritime Affairs may determine matters concerning the performance by the senior planner of his or her duties.

(6) The municipal ordinance of the applicable city or Do government shall prescribe matters concerning, inter alia, the commission and compensation of the senior manager. Article 12 (Mitigation of Designation Requirements for Renewal Promotion Zone) (1) Pursuant to Article 9 (4) of the Act, the designation of a renewal promotion zone may include mitigation of requirements in terms of the dwelling unit density, the percentage of deep and narrow lots, irregular lots, and micro-lots, and the percentage of roadside housing (the percentage of buildings adjacent to any road with a width of four meters or more among all buildings within the renewal promotion zone; hereinafter the same shall apply) by up to twenty percent within such extent as prescribed by the municipal ordinance of the applicable city or Do government if any housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents is to be undertaken within such renewal promotion zone.

(2) Pursuant to Article 9 (4) of the Act, two or more contiguous areas sharing the same manner of implementation of renewal promotion projects may be integrated into a single renewal promotion zone if such areas separately satisfy the requirements for the designation of a renewal promotion zone in which a residential environment improvement project or a housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents is to be implemented.

(3) Pursuant to Article 9 (4) of the Act, two or more non-contiguous areas may be designated as a single renewal promotion zone in which a residential environment improvement project, a housing redevelopment project, or an urban environment improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents is to be implemented if necessary to protect scenic values and ensure the efficient implementation of a renewal promotion project.

(4) Pursuant to Article 9 (4) of the Act, any renewal promotion zone in which a residential environment improvement project or a housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents is to be implemented, may be designated with its size expanded by ten percent of the renewal promotion zone size as set forth in any of the following subparagraphs if necessary to ensure, inter alia, the regularization of lots or efficient provision of infrastructure:

1. Any residential environment improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents: a size satisfying the designation requirements for an improvement zone under Article 4 (1) of the same Act; or

2. Any housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents: a size satisfying such designation requirements for an improvement zone under Article 4 (1) of the same Act as mitigated under paragraph (1).

(5) The size of a renewal promotion zone under paragraphs (1) through (4) shall be 30,000 square meters or more; provided, however, that under any unavoidable circumstances resulting from the terrain or local conditions, an area may be designated as a renewal promotion zone even though its size is under 30,000 square meters. (6) If it is intended to mitigate the designation requirements for a renewal promotion zone under paragraphs (1) through (4) and the proviso of paragraph (5), advice from the City/Do Urban Planning Committee, a joint committee formed by the Construction Committee established in the city or Do under Article 4 of the Building Act and the City/Do Urban Planning Committee, or the Urban Regeneration Committee shall be obtained prior to the public notice under the main clause of Article 9 (2) of the Act. Article 13 (Criteria for Establishing the Regeneration Promotion Plan) If the Minister of Land, Transport and Maritime Affairs determines the criteria for the development of a renewal promotion plan under Article 9 (5) of the Act, the following matters shall be taken into account:

1. To determine the scale of infrastructure elements and the amount of installation costs to be shared so that development gains resulting from the implementation of a renewal promotion project may be appropriately restituted;

2. To ensure that the plans for installing infrastructure elements in terms of, inter alia, their types, scales, and locations shall be developed taking into consideration the land use plans for the regeneration promotion district or expected future demand for development so that the infrastructure elements may serve appropriate roles for the district and its neighboring areas;

3. To ensure a living environment required for a residential or downtown area in the future;

4.T ensure that a diversity of opinions of residents may be addressed; and

5. To ensure that local characteristics will be fully accounted for. Article 14 (Mitigation of FAR and Other Requirements in Return for Land Provided for Installation of Infrastructure)

(1) Under Article 11 (3) of the Act, floor area ratio or building height requirements may be mitigated as prescribed by the municipal ordinance of the applicable city or Do government within the following extents:

1. Maximum permissible floor area ratio variation = the floor area ratio applied to the zoning designation effective as of the date of regeneration promotion district designation + (1.5 × (the size of the land provided for infrastructure × the floor area ratio permitted for the land provided for infrastructure) ÷ the size of land remaining after the provision of land for infrastructure).

2. Maximum permissible building height variation = the height cap determined under Article 60 of the Building Act × (1 + the size of the land provided for infrastructure ÷ the original size of land)).

(2) In the application of paragraph (1), the floor area ratio or building height requirements may be mitigated by the municipal ordinance of the applicable city or Do government within the following extents if land is provided according to any of the following manners:

1. Where the site of any public facility under subparagraph 13 of Article 2 of the National Land Planning and Utilization Act (hereinafter referred to as a "public facility") or any of the following infrastructure elements is provided without cost: within the extent as set forth in subparagraphs of paragraph (1); (a) a school;

(b) a library;

(c) a social service facility;

(d) a cultural facility;

(e) a public office building; or

(f) any other infrastructure element as prescribed by the municipal ordinance of the applicable local government;

2. Where a site for any of the facilities as set forth in the items of subparagraph 1 is developed and is provided below cost: within the extent of one third of the quantity as set forth in subparagraphs of paragraph (1); or

3. Where any part of a building together with the corresponding share in its lot is provided as any of the facilities as set forth in the items of subparagraph 1, within the extent of three times the quantity as set forth in subparagraphs of paragraph (1), for the size of the share in the lot, in which case, the size of land remaining after the provision of land for infrastructure as in the formula as set forth in paragraph (1) 1 shall be the original size of the land.

(3) Deleted.

Article 15 (Publication of Renewal Promotion Plan) If a mayor/Do governor or a large-city mayor under Article 12 (1) of the Act publishes the finalization or modification of a renewal promotion plan under paragraph (3) of the same Article, a summary of the renewal promotion plan, including the following matters, and the place where the plan is available for inspection shall be published:

1. The name, category, location, size, and purpose of the designation of the regeneration promotion district;

2. The target year of completion for a renewal promotion project to be implemented within the regeneration promotion district;

3. The overall direction and goals of the improvement of the regeneration promotion district; and

4. A summary of the renewal promotion plan to be finalized or modified. CHAPTER IV IMPLEMENTATION OF RENEWAL PROMOTION PROJECT Article 16 (Designation of Senior Project Manager) If the renewal promotion planning authority designates a senior project manager under Article 14 (1) of the Act, such authority shall require any person qualified to be designated as a senior project manager to submit a senior project management proposal, which shall be evaluated prior to designation.

Article 17 (Duties of Senior Project Manager)

(1) "Duties as prescribed by ... and the Presidential Decree" as set forth in Article 14 (2) 5 of the Act shall refer to the following:

1. The establishment and implementation of fund raising and management plans;

2. The preparation, analysis, and management of the data on the progress of the renewal promotion project;

3. The development of measures to ensure efficient implementation of the renewal promotion project and the collection of opinions thereon;

4. Such duties as required by the mayor or head of the Gun or Gu with respect to the implementation of the renewal promotion project; and

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

(2) If necessary to perform the duties under Article 14 (2) of the Act, the senior project manager may require any homeowners' association promotion committee, project developer, designer, constructor, renewal project management service provider or any other participant in the renewal promotion project to submit data on the project. Any person so required shall comply therewith except under extraordinary circumstances.

(3) The Minister of Land, Transport and Maritime Affairs shall determine matters concerning the performance by the senior project manager of his or her duties.

Article 18 (Recommendation for Constructor by Representatives of Property Owners)

"Any person recommended by the representatives of property owners ... in an open tender as prescribed by the Presidential Decree" as set forth in Article 15 (2) of the Act shall refer to any person recommended in accordance with the following procedures:

1. The tender shall be a fully open tender, limited tender, or selective tender;

2. The notice of invitation for the tender as set forth in subparagraph 1 shall be given in a daily newspaper of general circulation at least once, and an onsite presentation shall be held; and

3. A ballot shall be held among property owners on the bidding proposals submitted by bidders.

[Wholly amended June 20, 2008]

Article 19 (Calculation of Number of Consenters)

The calculation of the number of consenters under the proviso of Article 15 (1), excluding the subparagraphs thereof, shall be conducted in accordance with the manner set forth in Article 28 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents.

CHAPTER V SUPPORT FOR IMPLEMENTATION OF RENEWAL

PROMOTION PROJECT

Article 20 (Exceptions for Mitigation of Building Restrictions) (1) The zoning modification under Article 19 (1) of the Act shall be limited to shifts within the land use areas as classified in the subparagraphs of Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act. Under any unavoidable circumstances including the improvement of the residential environment as well as the formation and reinforcement of a downtown area, however, shifts within the land use areas as classified in the subparagraphs of Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act may be implemented, provided that advice from the City/Do Urban Planning Committee or the Urban Regeneration Committee has been obtained prior to the public notice under Article 9 (2) of the Act. In which case, the building and floor area ratio restrictions within the land use area so modified may be further reinforced than those placed under Article 76 or 78 of the National Land Planning and Utilization Act. (2) Pursuant to Article 19 (2) 1 of the Act, building restrictions within a land use area may be mitigated as follows:

1. The construction of buildings of types permissible in other land use areas may be permitted exclusively among the land use areas as classified in the subparagraphs of Article 30 of the Enforcement Decree of the National Land Planning and Utilization Act; provided, however, that under any unavoidable circumstances including the improvement of the residential environment as well as the formation and reinforcement of a downtown area, the construction of a building of a certain use beyond the restrictions placed in the main clause may be permitted if advice from the City/Do Urban Planning Committee or the Urban Regeneration Committee has been obtained prior to the public notice under Article 9 (2) of the Act; or

2. The restrictions on the number of stories allowed in Class II General Residential Area as set forth in Tables 5-1 and 5-2 as attached to the Enforcement Decree of the National Land Planning and Utilization Act may be waived. (3) Pursuant to Article 19 (2) 2 of the Act, lot coverage ratio restrictions may be mitigated as prescribed by the municipal ordinance of the applicable city or Do government within the extent as set forth in Article 84 of the Enforcement Decree of the National Land Planning and Utilization Act.

(4) Pursuant to Article 19 (3) of the Act, school facility requirements within a downtown regeneration promotion district may be mitigated by up to 50% in terms of the size of the school site only.

(5) Pursuant to Article 19 (3) of the Act, parking space requirements within a downtown regeneration promotion district may be mitigated as follows:

1. The downtown regeneration promotion district may be deemed as a restricted area under Articles 12 (6) and 19 (10) of the Parking Lot Act in applying the mitigation as prescribed by the municipal ordinance of the applicable local government; or

2. The downtown regeneration promotion district may be deemed as a restricted area under Articles 7 (2) and 19 (10) of the Parking Lot Act in applying the mitigation which may be applicable as prescribed by the municipal ordinance of the applicable local government if a public parking lot is installed at a location as set forth in the subparagraphs of Article 7 (2) of the Enforcement Decree of the Parking Lot Act. Article 21 (Ratio of Dwelling Unit Size)

(1) Under Article 20 of the Act, the percentage of the housing units whose private residential space is under eighty five square meters and that are required to be built for a renewal promotion project shall be as follows:

1. Any residential environment improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents: no less than eighty percent of the total number of households; and

2. Any housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents: no less than sixty percent of the total number of households; provided, however, that a percentage publicly notified by the Minister of Land, Transport and Maritime Affairs under Article 4-2 (1) of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents shall be applicable if such percentage is lower. (2) If necessary to ensure a stable housing supply and more opportunity for occupancy by low-income residents, the percentage of housing units smaller than eighty five square meters to be built may be prescribed in the municipal ordinance of the applicable city or Do government within the extent as set forth in paragraph (1). Article 22 (Percentage of Urban Planning Tax Transferred to Special Renewal Promotion Account)

The words "a rate prescribed by the Presidential Decree" as set forth in Article 12 (2) 4 of the Act shall refer to thirty percent or any other such percentage not less than ten percent but not greater than thirty percent as prescribed by the applicable local government in its municipal ordinance, if any.

Article 23 (Use of Special Renewal Promotion Account) The words "any other matters as prescribed by the Presidential Decree" as set forth in Article 24 (3) 4 of the Act shall refer to the following:

1. Grants for the improvement project costs for intact areas within a regeneration promotion district;

2. Purchase costs of the lots requested to be purchased within a regeneration promotion district;

3. Any costs incurred in connection with the duties performed by the senior project manager;

4. Any costs incurred in connection with the surveys, designs and researches conducted to ensure the designation of a regeneration promotion district, the development of renewal promotion plans, and institutional development; and

5. Any other such matters concerning renewal promotion projects as prescribed by the municipal ordinance of the applicable city or Do government. Article 24 (Management of Special Renewal Promotion Account) Project developers shall be classified into heads of local governments (including any senior project manager performing duties for and on behalf of the head of a local government) and any other persons in prescribing the entitlement to and scope of subsidies and loans, if any, from the special renewal promotion under Article 24 of the Act.

Article 25 (Lease Term for School Sites, etc.)

(1) Where any tract of land or any other property owned by a local government (hereinafter referred to as "property") is used, benefited from, or leased out (hereinafter referred to as "lease") under Article 25 (6) of the Act, the term of lease shall be fifty years and may be renewed by up to an additional fifty years. (2) Notwithstanding the Regulations for the Establishment and Operation of Elementary and Secondary Schools, any person intending to establish and manage a private school may lease property owned by a local government and use it as a school site under Article 25 (7) of the Act or use property as a school site whose price is being paid in installments under Article 25 (8) of the Act. (3) The construction of any building within a school site under paragraph (2) shall require the consent of the applicable local government. Article 26 (Reduction and Exemption in Rent or Sale Price for School Sites, etc.) (1) Where any property owned by a local government is rented out or sold under Article 25 (8), such property may be rented out or sold based on the development cost. (2) The sale price of property may be allowed to be paid in installments for up to twenty years under Article 25 (8) of the Act.

(3) The municipal ordinance of the applicable local government shall prescribe matters concerning the installment payment of the rent or sale price for school sites within the extent as prescribed in paragraphs (1) and (2). CHAPTER VI RESTITUTION OF DEVELOPMENT GAINS

Article 27 (Person Installing Other Infrastructure Elements) The words "the person as prescribed by the Presidential Decree" as set forth in Article 27 (1) 4 of the Act shall refer to any project developer of a renewal promotion project under Article 15 or 18 of the Act (hereinafter referred to as a "project developer") designated to install the following facilities in accordance with a plan for the sharing of infrastructure costs under Article 9 (1) 11 of the Act (hereinafter referred to as an "infrastructure cost sharing plan"), if any, or a local government if the local government is designated to install the same:

1. Any public facilities other than as set forth in subparagraphs 1 through 3 of Article 27 (1) of the Act; or

2. Any elements of infrastructure as set forth in a renewal promotion plan, other than as set forth in subparagraphs 1 through 3 of Article 27 (1) of the Act. Article 28 (Scope of Infrastructure Types to be Installed) The scope of infrastructure types to be installed under Article 27 (3) of the Act shall be as follows:

1. Roads, water and sewage facilities: any roads, water and sewage facilities to be installed by the local government in accordance with the infrastructure cost sharing plan under the Act;

2. Power facilities: any power facilities spanning from the power facilities serving as backbone facilities outside the regeneration promotion district to the boundaries of an individual lot separated by a road with a width of four meters or more or to those of a renewal promotion zone (such individual lots and renewal promotion zones hereinafter referred to as "individual lots etc."); provided, however, that if power facilities are installed using underground cables as requested by the project developer, their installation costs shall be equally borne by the power supplier and the person requesting the underground installation;

3. Gas facilities: any gas supply facilities spanning from the gas facilities serving as backbone facilities outside the regeneration promotion district to the boundaries of individual lots etc., or to any pressure regulator, if installed within the renewal promotion zone to provide gas for cooking or local heating (excluding centralized heating) purposes;

4. District heating facilities: any pre-insulated pipes spanning from their branching points of backbone facility piping outside the regeneration promotion district to the shut-off valves at the entrance to each mechanical room of individual lots etc. within the regeneration promotion district; and

5. Communications facilities: any conduit facilities spanning from the backbone facilities outside the regeneration promotion district to the boundaries of individual lots etc. as well as any cabling spanning from the backbone facilities outside the regeneration promotion district to the first terminals of individual lots etc. Article 29 (Infrastructure Cost Collection Period) The words "such period thereafter as prescribed by the Presidential Decree" as set forth in the former part of Article 27 (5) of the Act shall be the date on which the implementation of a renewal promotion plan or an execution plan is approved; provided, however, that the project developer may be allowed to make installment payments prior to the date of application for the completion inspection of the renewal promotion project, as prescribed by the municipal ordinance of the applicable local government. Article 30 (Infrastructure to Be Installed Outside Regeneration Promotion District)

The words "any elements of infrastructure as prescribed by the Presidential Decree" as set forth in Article 28 (1) of the Act shall refer to public facilities. Article 31 (Bearing of Cost of Infrastructure to be Installed Outside Regeneration Promotion District)

If the renewal promotion planning authority requires any local government or any person managing a public facility benefitting from any elements of infrastructure installed outside a regeneration promotion district to bear part of the cost incurred in connection with the installation of such elements of infrastructure, Articles 102 and 103 of the National Land Planning and Utilization Act shall be applicable mutatis mutandis. Article 32 (Grants for Infrastructure, etc.)

(1) The words "such infrastructure elements as prescribed by the Presidential Decree" as set forth in the main clause of Article 29 (1) of the Act, excluding the subparagraphs thereof, and paragraph (2) of the same Article shall refer to any of the following facilities:

1. Public facilities; and

2. The infrastructure facilities as set forth in the items of Article 14 (2) 1. (2) The words "such infrastructure elements as prescribed by the Presidential Decree" as set forth in the proviso of Article 29 (1) of the Act, excluding the subparagraphs thereof, shall refer to roads, parks and parking lots.

(3) The words "the maximum amount as prescribed by the Presidential Decree" as set forth in the proviso of Article 29 (1) of the Act, excluding the subparagraphs thereof, shall refer to 100 billion won for each city, Gun, or Gu (autonomous Gu; hereinafter the same shall apply).

(4) The words "any distressed area formed by a mass relocation of low-income urban residents by the State or local government or any other area as prescribed by the Presidential Decree" under Article 29 (1) 2 of the Act shall refer to any area as set forth in any of the following subparagraphs:

1. Any area falling within two or more of the categories set forth in the following items as of the date of the designation of the regeneration promotion district: (a) any area in which the implementation of a public project under Article 4 of the Act on the Acquisition of Land, etc. for Public Works and the Compensation Therefor resulted in a mass relocation of 300 or more housing units built at the time of the relocation;

(b) any area where buildings for which twenty or more years have passed since the completion of construction account for fifty percent or more of all buildings in the regeneration promotion district;

(c) any area where apartment and multifamily units for which fifteen years or more have passed since the completion of construction account for forty percent or more of all buildings in the regeneration promotion district (residential only); (d) any area where sixty or more buildings are erected per 10,000 square meters of the regeneration promotion district;

(e) any area where the percentage of roadside housing is thirty percent or less; (f) any area where the total floor space used for non-housing uses account for forty percent or less of the total floor space of all buildings in the regeneration promotion district (downtown only); or

(g) any area where obstacle limitation surface under the Aviation Act and flight safety zones under the Military Installation and Military Facilities Protection Act account for fifty percent or more of the entire size of the regeneration promotion district; or

2. Any area falling within any of the categories set forth in the items of paragraph (1) as of the date of the designation of the regeneration promotion district and within any of the categories set forth in the following items under such renewal promotion plan as finalized and published under Article 12 of the Act: (a) any area where the total floor space used for non-housing uses account for fifty percent or more of the total floor space of all buildings in the regeneration promotion district;

(b) any area where an increase in the floor area ratio resulting from the renewal promotion project is fifty percent or less of the floor area ratio as of the date of designation of the regeneration promotion district; or (c) any area where the footprint of infrastructure elements to be installed by the project developer in addition to existing ones account for ten percent or more of the size of the regeneration promotion district.

(5) The words "as prescribed by the Presidential Decree" as set forth in Article 29 (1) 3 of the Act shall refer to where all of the following cases apply to the regeneration promotion district as of the year in which the regeneration promotion district is designated and announced:

1. Where the aggregate cost incurred in connection with the installation of infrastructure elements under paragraph (2) for a regeneration promotion district under the jurisdiction of a city, Gun, or Gu is equivalent to thirty percent or more of the average annual budget of the applicable city, Gun, or Gu for the last three years; and

2. Where the percentage of general funds with unspecified uses among the fiscal revenue of the local government exercising jurisdiction over the regeneration promotion district does not exceed the nationwide average.

(6) The Minister of Land, Transport and Maritime Affairs may determine and publish detailed calculation criteria for the requirements as set forth in the subparagraphs of paragraphs (4) and (5). (7) The terms and conditions of loans from the national housing fund under Article 29 (2) shall be in accordance with the Regulations for the Management of the National Housing Fund as prescribed by the Minister of Land, Transport and Maritime Affairs pursuant to Article 62 (1) of the Housing Act. <2008.2.29, 2009.3.31> Article 33 (Housing Statistics Survey Items)

The words "any other matters as prescribed by the Presidential Decree" as set forth in Article 30 (2) 5 of the Act shall refer to the following:

1. The number of years that have passed since the completion of the housing unit; and

2. Any other matters as prescribed by the municipal ordinance of the city or Do government.

Article 34 (Percentage of Rental Housing to Be Built, etc.) (1) The words "a rate prescribed by the Presidential Decree" as set forth in the former part of Article 31 (1) of the Act shall refer to any of the following percentages:

1. Any housing redevelopment project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents: any such percentage not less than fifty percent but not greater than seventy five percent of the increase in the floor area ratio resulting from the project as prescribed by the municipal ordinance of the applicable city or Do government or, in the case of any area other than congestion control regions under the Seoul Metropolitan Area Readjustment Planning Act, any such percentage not less than twenty five percent but not greater than seventy five percent as prescribed by the municipal ordinance of the applicable city or Do government;

2. Any urban environment improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, any urban development project under the Urban Development Act, or any marketplace improvement project under the Special Act on the Nurturing of Traditional Markets: a sum of the following percentages:

(a) such percentage not less than fifty percent but not greater than seventy five percent of the increase in the floor area ratio for housing uses (the increase referring to a difference between such ratio of the floor area for housing uses as set forth in the renewal promotion plan and such ratio of the floor area for housing uses effective as of the regeneration promotion district designation, as calculated after separately calculating the ratios for housing uses and non-housing uses as set forth in the renewal promotion plan and effective as of the regeneration promotion district designation) as prescribed by the municipal ordinance of the applicable city or Do government; and (b) such percentage not greater than seventy five percent of the increase in the floor area ratio for non-housing uses (the increase referring to a difference between such ratio of the floor area for non-housing uses as set forth in the renewal promotion plan and such ratio of the floor area for non-housing uses effective as of the regeneration promotion district designation, as calculated after separately calculating the ratios for housing uses and non-housing uses as set forth in the renewal promotion plan and effective as of the regeneration promotion district designation) as prescribed by the municipal ordinance of the applicable city or Do government; in which case, the sharing of the cost incurred in connection with the installation of infrastructure elements (excluding the elements for which the floor area ratio is adjusted in return for the provision of land under Article 11 (3) of the Act) shall be taken into account; or

3. Any housing redevelopment project or urban environment improvement project under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents where two or more areas are to be designated as a single renewal promotion zone under Article 12 (3) and residents are to be relocated, notwithstanding subparagraphs (1) and (2): such percentage not exceeding one third of the percentage under subparagraphs 1 and 2 as prescribed by the municipal ordinance of the applicable city or Do government taken into consideration the number of households to be relocated.

(2) The percentage of housing units for which private residential space exceeds eighty five square meters among the rental units built under Article 31 (2) shall refer to such percentage not exceeding forty percent as prescribed by the municipal ordinance of the applicable city or Do government.

Article 35 (Supply of Rental Housing)

(1) If the project developer supplies rental housing units under the former part of Article 31 (1) of the Act, the mayor/Do governor may elect to purchase such units; provided, however, that if the mayor/Do governor is unable to acquire the rental housing units, such mayor/Do governor shall request the Minister of Land, Transport and Maritime Affairs to designate a purchaser. (2) Upon the request of a mayor/Do governor to designate a purchaser under the proviso of paragraph (1), the Minister of Land, Transport and Maritime Affairs shall notify the mayor/Do governor of a purchaser within thirty days, and the mayor/Do governor shall promptly forward the notification to the mayor or head of the Gun or Gu so that such mayor or head may enter into negotiations with the purchaser.

(3) Notwithstanding paragraphs (1) and (2), any rental housing units built within a regeneration promotion district for which the Korea National Housing Corporation under the Korea National Housing Corporation Act or any local government-owned corporation established to carry out housing projects pursuant to the Local Public Enterprises Act is designated as a senior project manager may be supplied to such senior project manager in preference to any others.

(4) Any person who has purchased or has been supplied with rental housing units under the provisions of paragraphs (1) through (3) may supply the units having private residential space not more than eighty five square meters among the said rental housing units as bogeumjari homes under Article 2 (1) of the Special Act on Bogeumjari Housing Construction; provided, however, that any rental housing units having private residential space not more than sixty square meters shall be supplied as bogeumjari homes.

Article 36 (Eligibility of Rental Housing Tenants, etc.) (1) The eligibility for tenancy in rental housing units under Article 31 (6) of the Act shall be as follows, where the municipal ordinance of the applicable city or Do government shall prescribe any other necessary matters:

1. Primary: any person who has owned no housing units for one year or longer and resided in the city, Gun, or Gu in which the applicable regeneration promotion district is located for one year or longer;

2. Secondary: any person residing in the city, Gun, or Gu in which the applicable regeneration promotion district is located; or

3. Tertiary: any other person who has no primary or secondary eligibility. (2) The level of rent for rental housing under Article 31 (6) of the Act shall be as follows:

1. The key money deposit and monthly rent shall be no more than ninety percent of the levels prevailing in the areas neighboring the regeneration promotion district, respectively;

2. Matters concerning, inter alia, the contractual terms for rental housing units shall be as prescribed by rental housing laws; and

3. Matters concerning maintenance fees and other aspects of housing management shall be as prescribed by the Housing Act.

(3) Notwithstanding paragraph (1), any owner or tenant of a housing unit to be removed due to a renewal promotion project shall be given priority with respect to the eligibility for tenancy in bogeumjari homes, where the details of such priority shall be as prescribed by the Ordinance of the Ministry of Land, Transport and Maritime Affairs. (4) Notwithstanding paragraph (2) 1, the key money deposit and rent for a bogeumjari home shall be in compliance with Article 12 of the Enforcement Decree of the Rental Housing Act. CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 37 (Scope of Land Sizes Requiring Permission of Transaction) The words "the transaction of any tract of land larger than a size as prescribed by the Presidential Decree" shall refer to the transaction of a parcel of land twenty square meters or more in size (excluding any transaction of a parcel smaller than the sizes as set forth in the subparagraphs of Article 118 (1) of the National Land Planning and Utilization Act located within any area designated as an intact management zone (any other portion of an intact area than any such zones as deemed likely to satisfy the renewal promotion zone designation requirements within three years and thus designated as intact improvement zones in accordance with the renewal promotion plan) or within any area in which a renewal promotion project has been completed).

Article 38 (Establishment, Operation etc. of Urban Regeneration Committee) (1) The Urban Regeneration Committee established under Article 34 (1) of the Act (hereinafter referred to as the "Committee") shall consist of twenty to twenty five Committeepersons, including one Chairperson and one Vice-Chairperson. (2) The person as set forth in the following subparagraphs shall be the Chairperson, and the Committeepersons shall elect the Vice-Chairperson among themselves.

1. For Seoul: the Vice Mayor II for Administrative Affairs;

2. For any metropolitan city: the Vice Mayor for Administrative Affairs; or

3. For any Do: Deputy Governor for Administrative Affairs. (3) The Committeepersons of the Committee shall be appointed or commissioned by the mayor/Do governor among the following persons, in which case, the Committeepersons not falling within the scope as set forth in subparagraph 1 or 2 but falling within the scope as set forth in subparagraph 3 or 4 shall account for thirty percent of all Committeepersons:

1. Any councilor of the municipal council of the applicable city or Do;

2. Any public official holding a position with the applicable city or Do government or any public official of an administrative agency relevant to urban renewal;

3. Any committeeperson of the applicable City/Do Urban Planning Committee or of the Construction Committee; or

4. Any person with an appropriate level of learning and experience in urban planning, urban design, architecture, housing, or any other urban renewal related fields. (4) The term of office of any Committeeperson falling within the scope as set forth in paragraph (3) 3 or (3) 4 shall be two years, which shall be renewable; provided, however, that the term of office of any Committeeperson filling a vacancy shall be the remainder of the term of office of his predecessor. (5) The Chairperson shall represent the Committee and be ultimately responsible for its affairs.

(6) The Chairperson shall convene and chair the meetings of the Committee. (7) The meeting of the Committee shall be in session by the presence of a majority of the Councilors registered, and pass resolutions by the affirmative vote of a majority of the Councilors present.

(8) The Committee may have one or more sub-committees if necessary to ensure efficient conduct of its affairs.

(9) If necessary to conduct, inter alia, thorough investigations and studies of the duties of the Committee, the Committee may have three or less Expert Committeepersons commissioned by the mayor/Do governor among experts in urban renewal.

(10) Except as otherwise prescribed by this Decree, the municipal ordinance of the applicable city or Do government shall prescribe matters concerning the operation of the Committee.

ADDENDA (Enforcement Decree of the Special Act on Bogeumjari Housing Construction)

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation; Article 2 (Amendment of Other Laws)

Paragraphs (1) through (8) omitted.

(9) The Enforcement Decree of the Special Act on the Promotion of Urban Renewal shall be amended in part as follows:

In the main clause of Article 35 (4), the words "bogeumjari homes under Article 2 (1) of the Special Act on Bogeumjari Housing Construction (rental housing only; hereinafter referred to as "bogeumjari homes")" shall be substituted for "national rental housing units under Article 2 (1) of the Act on Special Measures for National Rental Housing, etc. (hereinafter referred to as "national rental housing units")", and in the proviso of the same Article, the words "bogeumjari homes" for "national rental housing units". In Articles 36 (3) and 36 (4), the words "bogeumjari homes" shall be substituted for "national rental housing units".

Paragraphs (10) through (24) omitted.

Article 3 omitted.


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