In case of accepting assets subject to tax on capital gains from non-landowners, etc. in Korea or foreign company, project operator has the responsibility to collect withholding tax. Therefore, relevant tax should be withheld upon compensation payment(Article 16.1.4 of Income Tax Act). If the compensation is deposited to the one who is obliged to pay withholding tax, project operator deposits the compensation amount after deducting withholding tax.
<Table 5-7> Other Compensation
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria
∙Grave without relative:
Grave without relative
Enforcement Rule.
∙Grave without relative:
Within the range of 50% of amount calculated in accordance with Article 42.1 and 42.3 of Enforcement Rule.
Rights Mining right
Article 43 of Enforcem ent Rule
∙In case where mining right is lost or suspension of work due to the use of land related to mine in operation.
∙Except for mines which suspend their operation due to absent of mineral deposit(including the case where deposit is very small that does not have economic value)
∙In case of mining right loss: Calculated in accordance with Article 19 of Enforcement Rule of Mining Act.
∙In case of suspension of business:
estimated with operating profit for the suspended period based on annual average of operating profit for the past 3 years.
Fishing right
Article 44 of Enforcem ent Rule
∙Public works limit or cancel fishing right or extension of effective date of fisheries license is not permitted in accordance with Article 16 of Fisheries Act or Article 13 of Inland Fisheries Act.
∙Except for those who obtained license for fishing rights after the announcement of compensation plan or announcement date of project approval
∙Fishing ground map
∙Fishing ground license register
∙Fishing right management register
∙Part of fishing right
∙Fishing in the restricted waters register
∙List of those who share fishing right
∙Calculated in accordance with attachment 3 of Enforcement Decree of Fisheries Act as stipulated in Article 44.2 of Enforcement Rule.
∙In case where fishing activities can be continued by relocating facilities to other fishing ground:
calculated based on loss calculation method and criteria in case of suspension of fishing right in
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria attachment 3 of Enforcement Decree of Fisheries Act.
Business Activity
Compensa tion for business activities
Article 45, 46, 47 of Enforcem ent Rule
1.Business activities that had continued with human recourses and physical facilities in legal place(the place except for unauthorized building, land whose shape and property was changed, or place where stack-up of property is prohibited under other law) before the date of announcement of project approval.
※ In case where lessee conducts business activity in unauthorized building, the business that had continued 1 year before the date of Project Approval after the lessor registered its business under Article 5 of Added Value Tax Act.
2. In case where permission is required in the process of business under applicable law, the business that was permitted before the date of Project Approval announcement.
∙Copy of resident registration certificate
∙Business permission certificate or copy of business registration
∙Certificate of one's seal impression
∙Full payment of electricity bill(closing of electricity service)
∙Copy of business registration certificate
∙Compensation for suspension: Under Article 47 of Enforcement Rule, calculation should be done assuming that suspension period is within 3 months.
However, if the suspension period becomes more than 4 months due to suspension or limitation of business for public works or the characteristics of the business makes it hard to relocate business within 3 months as the business requires high procession from objective perspective, calculation should be done for actual suspension period within 2 year limit.
∙Closing : In case where special characteristics of business place or hinterland make it hard to relocate the business to other area or other area will not give
∙Compensation for closing of business:
Calculated by adding operating profit for 2 years to loss caused by selling of fixed assets in accordance with
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria permission to the
business or relocation of the facility that gives feeling of aversion including slaughter's house with bad smell is very hard to be relocated from the perspective of mayor, governor or head of county.
Article 46 of Enforcement Rule.
Compensa tion for leave or unemploy ment
Article 51of Enforcem ent Rule.
∙Workers who have worked for more than 3 months in the business location in public works district as of the date of project approval announcement(those who paid withholding tax for his income according to Income Tax Act).
∙Compensation for leave:
in case where workers should take a leave for a certain period as a result of relocation of workplace
∙Compensation for unemployment : In case where worker lost his job as a result of closing of workplace.
□Employer
∙1 copy of reporting statement of income tax withholding ∙1 copy of one's seal
impression(corpora te seal)
∙1 copy of corporation registration register
∙1 copy of business registration certificate
□ Employee
∙1 statement that confirms withholding tax collection of grade A earned income tax
∙1 copy of withholding tax collection of income tax for each individual
∙1 copy of resident registration copy
∙1 certificate of one's seal impression
∙1 copy of deposit account
∙Compensation for leave: the number of days for leave(if the number of leave period exceeds 90 days, the period is considered as 90 days) multiplied by 70% of average wage under Labor Standards Act (However if the
amount that equals to 70% of average wage exceeds ordinary wage, the basis for calculation is ordinary wage.)
∙Compensation for unemployment : Amount that equals to average income for 90 days in accordance with Labor Standards Act.
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria
∙1 copy of application form for
compensation for leave
∙1 copy of statement that confirms leave period
Compensation for Farming
Article 46 of Enforcem ent Rule.
∙The land included in the district for public works(farmland included in Article 2.1 of Farmland Act).
∙Except for the land which is used after the date of project approval announcement, temporary farmland considering surrounding environment, farmland owned by other people, land cultivated by those who are not farmer, and land for which project operator allows cultivation for 2 years after compensation.
∙Copy of resident registration
∙Copy of farmland register or qualification certificate or agreement
∙Statement that confirms the one who is cultivator
∙Copy of permission for private use or use.
∙Certificate of one's seal impression
∙For farmland to be included in public works district, the amount should be calculated by multiplying total income from crops per cultivation area for household on average released by statistical office through survey on farming household every year under Article 3.3 of Statistics Act by 2.
∙In case where the owner of farmland is farmer living in the area and actual agreement was made between landowner and actual cultivator or if the agreement was not made, the amount that equals to 50%
respectively should be compensated.
∙In case where the owner of farmland is not the resident in the area, compensation should be
∙In accordance with the actual income recognition standard announced after the consultation between the Minister of Land, Infrastructure and Transport and Minister of
Agriculture, Food and Rural Affairs, calculation should be done multiplying actual income per unit farmland by 2.
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria made to actual
cultivator.
∙In case where the land is not cultivated as of the date of compensation consultation date or adjudication for expropriation date as a result of migration at cultivator's will or cancellation of lease agreement as a result of transfer of
farmlandownership, the compensation should be made to landowner as far as the owner lives in the area.
Compensa tion for agricultura l machine
Article 48.6 of Enforcem ent Rule
∙If the farming activity cannot be continued as more than two thirds of the land are included in the project district.
∙Copy of resident registration
∙Certificate of one's seal impression
∙Compensation should be made after valuation the loss from selling of agricultural machine.
∙If it is not possible to evaluate the loss from selling, the amount should be determined within 60% of the price calculated by cost accounting.
Compensa tion for livestock industry
Article 49 of Enforcem ent Rule
∙Hatchery business, egg collection or breeding industry or livestock breeding industry registered in accordance with Article 22 of Livestock Act or in case where more than base number(stipulated in asterisk 3) of livestock is raised. Or the case where the number of livestock is less than the base
∙In accordance with Article 45 or 47 on suspension of bunnies of the Enforcement Rule.
∙If the livestock is not included in the scope of compensation for loss, valuation should be based on relocation cost. If the loss of weight, reduction in spawning rate or
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria number but the total of
ratio becomes more than 1.
∙In case of similar livestock except for the livestock in asterisk 3, the valuation can be made based on asterisk3.
increase in miscarriage is expected, this loss should be considered in valuation.
Compensa tion for sericultura l industry
Article 50 of Enforcem ent Rule
∙In case where sericultural industry is run regardless of scale.
∙In accordance with Article 45 or 47 on suspension of bunnies of the Enforcement Rule.
Special example of compensat ion for unauthoriz ed compensat ion
Article 52 of Enforcem ent Rule
∙If the person, who has conducted business which should be done after getting permission before project approval announcement date, cannot continue the business in legal place accrodong to Article 45.1, the compensation should be paid to those who meet the requirements for compensation based on criteria mentioned in the right column despite Article 45.2.
∙The amount equals to 3-month household expense with 3 family members on monthly average calculated by statistics office in accordance with Article 3.3 of Statistics Act should be provided as compensation for operating loss but relocation cost of operating facility should be paid separatedly.
∙If the lineal family member of spouse receives
compensation from other business activities only relocation cost of operating facility is paid.
Relocation cost
Resettlement cost
Article 41 of Enforcem ent Decree
∙In case where migration planning cannot be implemented or the number of household who wants to resettle in
∙Copy of resident registration
∙Certificate of one's seal impression
∙Certified copy of
∙The amount should be 30% of valuation value of building for residence to be compensated. If the
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria and Article
53 of Enforcem ent Rule
other place is less than 10 so that migration planning is not established and implemented.
∙In case where those subject to migration want to move to another place except for planned resettlement area.
building register amount is less than 5 million won, the amount should be 5 million won and if the amount exceeds 10 million won, the amount is regarded as 10 million won.
Migration cost
Article 54 of Enforcem ent Rule
∙Owner : It is provided as the compensation should be made to building for residence purpose(except for the case where the owner does not live in the building or the building is unauthorized one).
∙Lessee : Lessee of the building for residence purpose and who has been living in the public works district for more than 3 months as of the date of announcement of Project Approval or announcement of public works under applicable laws.
※ Lessee living in unauthorized building who has been living for more than 1 years as of the date of announcement of Project Approval or announcement of public works under applicable laws.
∙1 copy of resident registration
∙1 copy of certificate of one's seal impression
∙1 copy of telephone service subscription certificate
∙1 certificate that demonstrates full payment of electricity bill(closing of electricity service)
∙1 copy of statement that demonstrates suspension of water service
∙1 copy of receipt on handling of excreta
∙Owner: calculated based on monthly average of household expense in households of urban workers which is released by statistics office under Article 3.3 of Statistics Act for 2 months.
∙Lessee :calculated based on monthly average of household expense in households of urban workers which is released by statistics office under Article 3.3 of Statistics Act for 4 months.
Movement cost
Article 55 of Enforcem
∙landowners, etc. in building for residence purpose(except for the
∙1 copy of resident registration
∙1 copy of certificate
∙Calculated based on asterisk 4 of Article 55.2 of Enforcement
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria ent Rule case where movement
happens within the same project district).
of one's seal impression
∙1 copy of telephone service subscription certificate
∙1 certificate that demonstrates full payment of electricity bill(closing of electricity service)
∙1 copy of statement that demonstrates suspension of water service
∙1 copy of receipt on handling of excreta
∙1 copy of memorandum related to migration plan for
lessee(limited to leased apartment subscriber)
Rule.
Relocation cost of movable asset
∙Movable assets to be relocated as the result of acquisition or use of the land except for the movable asset subject to movement cost compensation.
Relocation cost and loss caused by relocation.
Migration of farming and fishing ground cost
Article 78.6 of the law Article 56 of Enforcem ent Rule
∙Farmers who need to migrate to one of the following district as their farming or fishing activities cannot be continued with the execution of public works(Farmer under Article 3.1 of Farmland Act who cultivate crops or perennial plant by
∙Copy of resident registration in new residential area.
∙Statement that confirms cultivation
∙ Certificate of one's seal impression
∙Amount designated by the decree of the Ministry of Land, Infrastructure and Transport or the difference between actual compensation and Amount designated by the decree of the Ministry of Land,
Classification Type of Compensation
Applicable
Law Target Documents to be
Prepared Selection Criteria himself or by
participating in more than one second of the activities) or
fishermen(who participate in fisheries for more than 200 days a year) does not have the amount to be compensated or total amount is less than the amount designated by the decree of Ministry of Land, Infrastructure and Transport.
1. The location of farmland to be included in public works(in case of fishermen, it refers to their address) and same city, province or county.
2. City, province or county that is adjacent to the area mentioned in 1.
Infrastructure
∙Amount designated by the decree of the Ministry of Land, Infrastructure:
Annual average of household spending released by survey on farming household economy conducted by statistics agency under Article 3.3 of Statistics Act and 1-year average spending on livelihood calculated based on the number of family members of average farming household nationwide.
∙1-year average spending on livelihood calculated based on the number of family members of average farming household nationwide = annual household spending nationwide ÷ average number of farming population per household × number of family members to be migrated
5. Confirmation of Agreement
The confirmation of agreement on consultation by Land expropriation committee has the same effect of acquisition through adjudication. The application
for the confirmation of agreement on consultation should be done within application period for adjudication under Article 28 of Land Compensation Act.