housing Construction and Site Preparation Project

Project undertaker of housing construction and site preparation project is of the national or local government, the Korea Land and Housing Corporation and registered housing construction contractor or site preparation contractor, etc. who obtains approval for housing construction or site preparation project plan and executes that project (Housing Act, Article 2, Clause 7). Any party wishing to execute housing construction project of more than 20 single-family homes or 20 units of apartment buildings annually or execute site preparation project on more than 10,000㎡ annually must register with the Minister of Land, Transport and Maritime Affairs (Act, Article 9; Decree, Article 10). However, if the project undertaker that is of the national or local government, the Korea Land and Housing Corporation, local corporation and housing union or employers do not need to register (Act, Article 9 proviso). Housing union refers to unions established by residents of same city, province, or district to prepare housing (regional union) or unions established by employees of the same company (professional union) (Act, Article 2, Clause 11). Land owner may build a house with a registered contractor. In that case, the land owner and registered contractor are seen as business co-undertakers (Act, Article 10, Paragraph 1).

When housing union builds the housing for its members, the project may be executed jointly with local government, the Korea Land and Housing Corporation, local corporation or registered contractor. In this case, housing union and registered contractor are seen as business co-undertakers (Act, Article 10, Paragraph 2). To establish a housing union, permission must be obtained from mayor, district governor, head of autonomous borough in the respective jurisdiction (Act, Article 32, Paragraph 1). When the employer builds housing for its employees, the project must be executed jointly with a registered contractor. In this case, the employer and registered contractor are seen as business co-undertakers (Act, Article 10, Paragraph 3).

In selling or leasing land owned by the national or local government, the land may be sold or leased preferentially to any party wishing to purchase or rent the said land for the purpose of

<<< Procedure for Housing Construction and Site Preparation Project

Set project plan (project undertaker) → request project plan approval (project undertaker) → project plan approve (project plan approver) → announce project plan (project plan approver) → housing construction and site preparation project (project undertaker) → Usage inspection (mayor, district governor or head of autonomous borough)

133133 Chapter III building housing with a certain proportion or national housing-scale housing, building housing built

by housing union, or preparing site for this purpose (Act, Article 25, Paragraph 1). When project undertaker requests purchase of secured land to use as national housing lot, the urban development project executor must sell up to half of the total area of the secured land to the project undertaker preferentially (Act, Article 26, Paragraph 1).

Project undertaker must execute housing construction or site preparation project based on separately determined housing construction criteria, installation criteria for additional or welfare facilities, size of housing, and proportion of construction for each size, and site preparation guidelines (Act, Article 21, Paragraph 1). If deemed necessary for surveying or measuring for business plan or executing public housing project, project undertaker that is of the national or local government, the Korea Land and Housing Corporation or local corporation may enter land owned by another, temporarily use that land as material yard or interim road, or modify or remove obstacles including trees and soil (Act, Article 18, Paragraph 1). If any party suffers damage in the process, affiliated administrative agency of the executor or the project undertaker shall compensate the damages (Act, Article 19, Paragraph 1).

Those desiring to build more than 20 single-family homes, 20 units of apartment building, or prepare more than 10,000㎡ of building site is government, the Korea Land and Housing Corporation or certain contractor, they should prepare a business plan, attach documents such as arrangement of housing, additional and welfare facilities, and design document for site preparation construction, and obtain approval of the Minister of Land, Transport and Maritime Affairs (Act, Article 16, Paragraph 1; Decree, Article 15, Paragraph 1). At this time, if the housing construction project or housing site preparation project has relevant housing site area of more than 100,000㎡, permission should be obtained from mayor of special metropolitan city/other metropolitan cities, governor of provinces/special autonomous province or mayor of large city whose population is greater than 500,000 (Act, Article 16, Paragraph 1, Clause1). At this time, if the housing construction project or housing site preparation project has relevant housing site area of less than 100,000㎡, permission should be obtained from mayor of special metropolitan city/other metropolitan cities, governor of special autonomous province, mayor or district governor (Act, Article 16, Paragraph 1, Clause 2).

Any party wishing to obtain approval of housing construction project plan must secure ownership of the relevant housing construction site (Act, Article 16, Paragraph 2). Project undertaking who has obtained approve for the project plan may file a claim with the owner of the site among the relevant housing construction sites for which he/she failed to secure a title to use to sell at the

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market price in accordance with the following (Act, Article 18-2, Paragraph 1). ① If title to use has been secured for more than 95/100 of the housing construction sites: file a claim for sales for every owner of sites for which the right was not obtained. ② Cases other than ① : file a claim to sales for owner of land for which right was not obtained, excluding those who acquired and have held ownership of the site for 10 years prior to the date of decision and announcement of district unit planning area. When project undertaker who obtained approval for the project plan has noticeable difficulty in finding out the whereabouts of the owner of housing construction site where rights were not obtained, he/she must announce this fact at least twice in two or more daily newspapers circulated nationwide, and after 30 days have passed since the announcement, then the site is seen as subject to claim for sale (Act, Article 18-3, Paragraph 1). Project undertaker may deposit in the court the amount equivalent to the appraised value of to site subject to claim for sale and execute the housing construction project (Act, Article 18-3, Paragraph 2).

When the party authorized to approve project plan has approved the project plan, the approval must be announced. In this case, the Minister of Land, Transport and Maritime Affairs or the mayor/governor must send a copy of the written approval for the project plan and other related documents to mayor, district governor, head of autonomous borough without delay (Act, Article 16, Paragraph 6). Project undertaker who has obtained approval for project plan must execute the project according to the approved project plan and must being construction within two years of obtaining the said approval (Act, Article 16, Paragraph 7). If the project undertaker does not begin project, the party authorized to approve project plan may cancel its approval of the said project plan (Act, Article 16, Paragraph 9). When the project undertaker with approved project plan intends to begin construction, he/she must report to the party authorized to approve project plans (Act, Article 16, Paragraph 8).

When project undertaker obtains approval of project plan or designation, it is seen as having obtained permission, authorization, decision, approval, designation, or report by other statutes, and public announcement of approval for a project plan is deemed as public announcement by another law (Act, Article 17, Paragraph 1). In this case, approval of project plan is seen as project recognition (Act, Article 27, Paragraph 3).

When project undertaker constructs national housing or prepares a housing site to build national housing, he/she may expropriate or use the land or any object in the land as well as rights other than ownership over the said land or object (Act, Article 18, Paragraph 2). In this case, national housing refers to housing that is constructed or renovated with support from National Housing Fund and whose area is less than 85㎡ per family or household (Act, Article 2, Paragraph 3).

135135 Chapter III Project undertaker that is the government or the Korea Land and Housing Corporation may

delegate tasks related to housing construction or site preparation project such as land purchase or loss compensation to head of local government in the respective jurisdiction (Act, Article 28, Paragraph 1).

When project undertaker builds more than 100 housing or prepares more than 16,500㎡, arterial facilities must be installed by relevant group, roads and water supply sewage systems by the local government, electricity, gas, and heating system by electricity, gas, or heating supplier to the area, communications system and mailboxes by the national government or the Korea Telecom Authority (Act, Article 23, Paragraph 1; Decree, Article 24, Paragraph 1).

When project undertaker installs new public facility or installs public facility replacing existing public facility in the land of project area with approved project plan, newly public facilities are reverted to the managing administrative agency at no cost and existing public facilities are reverted to the project undertaker at no cost, regardless of regulations in National Property Act and Local Finance Act (Act, Article 30, Paragraph 1).

After completing housing construction or site preparation project, project undertaker must undergo a usage inspection by the mayor, district governor or head of autonomous borough (Act, Article 29, Paragraph 1). When the project undertaker undergoes a usage inspection, it is deemed as receiving completion inspection or authorization of completion by another law (Act, Article 29, Paragraph 2).

5. inDuStriAL CoMPLex DeveLoPMent ProjeCt(1990 - PreSent)

1) Significance and Major Changes

Industrial complex refers to a group of lands designated and developed following a comprehensive plan to install residential, cultural, environmental, green, medical, tourist, sports, welfare facilities to enhance function of plant, facilities related to the knowledge industry, culture industry, information-communication industry, recycling industry, resources stock facilities, logistics facilities and related educational, research, professional, support, information process, and distribution facilities (Industrial Sites and Development Act²¹⁾, Article 2, Paragraph 8). Industrial complex development projects refer to projects executed to prepare an industrial complex (Act, Article 2, Paragraph 9).

Industrial complex development projects are divided into ① plant, facilities related to knowledge

21) Industrial Sites and Development Act(amended 2011. 4. 14, Act No.10599) is abbreviated as “Act” hereinafter.

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industry, culture industry, information-communication industry, recycling industry, resources stock facilities, logistics facilities, and other lot preparation and construction project, ② education, research facilities lot preparation project for the development of advanced science and technology industry, ③ lot preparation project and construction project such as work facilities to, information process facilities, support facilities, exhibit facilities, distribution facilities, etc to improve efficiency of industrial complex, ④ lot preparation project, park creation project and construction project such as residential, cultural, medical, welfare, sports, education, tourist facilities enhancing function of industrial complex, ⑤ project to install facilities to supply industrial water and water for daily living

⑥ construction of road, railway, harbor, canal, reservoir, etc, ⑦ supply system such as electricity, communications, gas, oil, steam, and other fuel, ⑧ sewage and waste treatment facility and other pollution prevention facilities project, or ⑨ other projects affiliated with projects ① ~ ⑧ (Act, Article 2, Paragraph 9 A~I).

In 1990, the government integrated regulations spread out over many laws into one law, Industrial Sites and Development Act, under the responsibility of Ministry of Land, Transport and Maritime Affairs for organized and systematic distribution and management of industrial lots.

The purpose of Industrial Sites and Development Act is to contribute to sound development of the national economy by promoting continued industrial development and balanced territorial development through smooth supply of industrial lot and reasonable arrangement of industries.