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FOREIGNER'S LAND ACQUISTITION ACT

Amended by Act No. 9186 Dec. 26. 2008

Article .(Purpose) The purpose of this Act is to prescribe the requirements for foreigner's land acquisition within Korea territory. Article .(Definition) "Foreigner" in this Act claims to be an individual and a corporation or a group prescribed in Clauses as follows. Clause 1. An individual who does not have a Korean nationality. Clause 2. A corporation or a group which corresponds to Items as follows.

Item 1. A corporation or a group which is established in accordance with the foreign laws.

Item 2. A corporation or a group where more then half of employees or members correspond to Clause 1.

Item 3. A corporation or a group where more then half of the staff such as personnels in charge of the execution of one's duty or directors correspond to Clause 1.

Item 4. A corporation or a group where an individual corresponding to Clause 1 or a corporation or a group corresponding to Item 1 has more then half capital stock or voting rights. When calculating capital stock or the number of voting rights, it is considered that an individual corresponding to Clause 1 or a corporation or a group corresponding to Item 1 has bearer stocks of a corporation

Article .(Mutualism) An individual/a corporation/a group or a government of a foreign country, which prohibits or limits the Korean, a corporation or a group established according to the Korean laws, and the Korean government from acquiring or transferring the land within or transferring the land within its own territory, can be prohibited or limited from acquiring and transferring the land within Korean territory by Minister of Land, Transport and Maritime Affairs according to Presidential decree, unless it is deemed necessary in implementing agreements made according to the constitution and relevant Act. Article .( Reporting of land acquisition by a contract) When a foreigner/a foreign government or an international organization according to a Presidential decree(hereafter called "foreigner and etc.") concludes a contract(hereafter called "contract for land acquisition") for land acquisition within Korean territory, they must report the conclusion of the contract toMayor(hereafter called Mayor of the city where there is no Gu established and Mayor in accordance with article 17 of the Special Act on the establishment of Jeju Special Self-Governing Province and development of International free City)/county Chief or Ward Chief with a Presidential decree. However, if real estate transaction is reported in accordance with article 27 of the Business Affairs of Licensed Real estate Agents and Report of Real estate Transaction Act or housing transaction is reported according to Clause 2 Article 80 of the Housing Act, the conclusion of contract for land acquisition does not need to be reported.

However, in case of acquiring the land corresponding to Clauses as follows, foreigner and etc. must obtain an approval of Mayer/County Chief or Ward Chief before the conclusion of the contract according to a Presidential decree. However, this is not necessary provided that an approval has been obtained according to article 118 of the National Territory plan and Use Act.

Clause 1. Military base & installation preservation regions according to Clause 6 article II of the Military Base & Installation Preservation Act, and other areas especially necessary to limit foreigner's land acquisition for the purpose of national defence according to the Presidential decree.

Clause 2. Designated cultural properties, protectors and reservations for them according to Article Clause 2 of the Cultural Properties Protection Law.

Clause 3. Erasure(Jury 1. 1999)

Clause 4. Ecosystem preservation districts according to Article Clause 12 of the Natural Environment Preservation Law.

Claus 5. Special district for Wild life and plant protection according to Article 27 of the Wildlife protection Act

As long as foreigner and etc.'s land acquisition in districts and areas corresponding to Clauses of does not cause any inconven- iences in the related territories and areas, Mayor/County foreigner and etc.'s land acquisition according Clauses to .

A Contract for land acquisition concluded in violation of Clauses of is uneffective.

Article .(Report of land acquisition caused by other reasons different from a contract) When they acquire land within Korean territory by a way different from inheritance, auction, and other contracts according to a Presidential decree, foreigner and etc. must report it to Mayor/County Chief or Ward Chief within 6 months after their land acquisition according to a Presidential decree.

Article .(Report of the continuous maintenance of land) When a Korean who has land within Korean territory, or a corporation or a group established according to the Korean Laws changes the nationality and the wants to keep the land, they must report it to Mayor/County Chief or Ward Chief within 6 months after the change of the nationality according to a Presidential decree.

Article .(Penal regulations)

When a contract is concluded for land acquisition without obtaining any approval according to Article Clause 1 or with obtaining any illegal approval, the foreigner is sentenced to less than two years' imprisonment or to a fine of less than ten million .

Article .(Penalty against employer and employee) When a representative of a corporation or a proxy/employee/other personnels of a corporation or an individual violate Article , not only an illegal performer but also its corporation or its individual must be sentenced to the same amount of fine according to the same Article. However, the fine will not be levied, provided that the corporation and the individual have not neglected observing and supervising their works in order to prevent any violation. Article (Negligence fine) When they do not report land acquisition according to Article Clause 1 or makes a false report, foreigner and etc. must be sentenced to a negligence fine of less than three million . Foreigner and etc. corresponding to Clauses as follows must be sentenced to a negligence of less than one million . Clause 1. Foreigner and etc. who do not report land acquisition according to Article or make a false report.

Clause 2. Foreigner and etc. who do not report the continuous maintenance of land according to Article or makes a false report. Mayor/County Chief or Ward Chief in accordance with a Presidential decree must impose or collect a negligence fine according to Causes 1, 2. -> DELETED

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Supplementary Regulations

(Date of enforcement)

This Act shall be enforced six months after its public notification. However, the amendment of article 3 shall be enforced from the day of public notification.

(Application of land acquisition reporting in accordance with the contract)

The amendment of clause 1, article IV shall be applied to from the first land acquisition contract concluded after the implementation of this Act.