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ENFORCEMENT DECREE OF THE DISTRIBUTION FACILITIES DEVELOPMENT AND OPERATION ACT

Enforcement Decree of the Distribution Facilities Development and Operation Act

[Enforcement: Jan. 1, 2009] [Presidential Decree No. 21231, Dec. 31, 2008, Amendments of other laws and regulations]

(Logistics Facilities and Information Division) Ministry of Land, Transportation, and Maritime Affairs, Telephone: 02-2110-6358

Chapter 1 General Provisions

Article 1 (Purpose)

The purpose of this Decree is to prescribe matters delegated by the Distribution Facilities Development and Operation Act and matters necessary for the enforcement thereof.

Article 2 (Sizes, etc. of Processing and Assembly Facilities) "Processing and assembly facilities not larger than the sizes as designated by Presidential Decree" in the proviso of Subsection 2, Article 2 of the Distribution Facilities Development and Operation Act, (hereinafter referred to as the "Act"), mean processing and assembly facilities of which the total floor area is less than a quarter of the total floor area of the distribution terminal. "Other facilities equipped with distribution functions and designated by Presidential Decree" in (i), Subsection 7, Article 2 of the Act mean facilities of the following subsections:

1. Bonded warehouses under the Customs Act;

2. Facilities for marine product processing businesses, (facilities only for freezing and refrigeration businesses), under Article 19 of the Marine Products Quality Control Act;

3. Cargo handling, storage, and processing facilities in the harbor area under Subsection 6, Article 2 of the Harbor Act;

4. Facilities for cargo transport, and incidental and support facilities in the airport area under Subsection 6, Article 2 of the Aviation Act;

5. Cargo transport, handling, and storage facilities used by railroad businesses for their operations under Subsection 8, Article 2 of the Railroad Enterprise Act;

6. Other facilities equipped with functions prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

"Processing and manufacturing facilities designated by Presidential Decree" in (a) of Subsection 8, Article 2 of the Act mean facilities falling under any of the following subsections:

1. Processed goods production factories under Article 5 of the Act for Agricultural Products Processing Industry Development;

2. Agricultural and fishery products distribution center, (including general stock farm product treatment facilities that perform butchery, processing, storage, etc. of stock farm products), in the producing area under Article 51 of the Act on the Distribution and Price Stabilization of Agricultural and Fishery Products;

3. Factories under Subsection 1, Article 2 of the Industrial Cluster Development and Factory Establishment Act;

4. Marine processed goods production factories under Article 17 of the Fishery Products Quality Control Act and facilities, (facilities for freezing and refrigeration businesses and marine product processing facilities on shipboards are excluded), for marine product processing businesses under Article 19 of the same Act; and

5. Other manufacturing and processing facilities designated by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs. "Other facilities designated by Presidential Decree to improve the performance of the distribution complex" in (e) of Subsection 8, Article 2 of the Act mean facilities falling under any of the following subsections:

1. Cultural and assembly facilities under Subsection 5, Table 1 of the Enforcement Decree of the Building Act;

2. Facilities to treat waste coming from occupied companies and support agencies; and

3. Other facilities prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs to improve the performance of the distribution complex. Chapter 2 Establishment of a General Distribution Facilities Development Plan Article 3 (Establishment of a General Distribution Facilities Development Plan) "Other matters designated by Presidential Decree" in Subsection 10, Section 3, Article 4 of the Act mean matters relating to infrastructure, including water, energy, communications, etc.

"The amendments of details designated by Presidential Decree" in the latter part of Section 1, Article 5 of the Act mean the amendment of demand and supply plans for the distribution facilities exceeding ten hundredths (10/100) of the distribution facility site for each distribution facility.

When the head of the central administrative agency concerned requests of the Minister of Land, Transportation, and Maritime Affairs, (hereinafter referred to as the "Minister"), an alteration of the General Distribution Facilities Development Plan in accordance with Section 3, Article 5 of the Act, it shall submit to the Minister documents relating to matters pertaining to the following subsections:

1. Current situations about the distribution facilities;

2. Plans for financing and investment; and

3. Other matters prescribed by Ordinance of the Minster of Land, Transportation, and Maritime Affairs.

When the Minister requests data or cooperation deemed necessary for the establishment or alteration of the General Distribution Facilities Development Plan in accordance with Section 3, Article 5 of the Act, it shall make clear the content of the data or cooperation and the period for the submission thereof.

Chapter 3 Distribution Terminal Business

Article 4 (Registration of Composite Distribution Terminal Business) "Public agencies designated by Presidential Decree" in Subsection 2, Section 2, Article 7 of the Act mean agencies pertaining to the following subsections:

1. Korea Railroad Corporation under the Korea Railroad Corporation Act;

2. Korea Land Corporation under the Korea Land Corporation Act;

3. Korea Expressway Corporation under the Korea Expressway Corporation Act;

4. Korea National Housing Corporation under the Korea National Housing Corporation Act;

5. Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

6. Korea Rural Community Corporation under the Korea Rural Community Corporation Act; and

7. Korea Harbor Corporation under the Korea Harbor Corporation Act. "Details prescribed by Presidential Decree" in Section 3, Article 7 of the Act mean matters other than any of the following subsections:

1. Alterations of the area of composite distribution terminal sites, (only the alteration of an area not exceeding one tenth (1/10) of the site without regard to the times of alteration);

2. Alteration of construction or equipment of the composite distribution terminal; and

3. Alteration of the name or location of the place of business. Any person, (hereinafter referred to as the "Composite Distribution Terminal Business"), who has formed a registration as a composite distribution terminal business in accordance with Section 1, Article 7 of the Act shall present documents prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs to the Minister when making an application for alteration of the registered details under Section 3 of the same Article. Article 5 (Authorization, etc. for Work Implementation) For a distribution terminal business, (hereinafter referred to as the "Distribution Terminal Business Entity") under Section 1, Article 10 of the Act to obtain authorization on work implementation or authorization on alteration under Section 1, Article 9 of the Act, the Composite Distribution Terminal Business Entity shall submit an application for work implementation or alteration attached with a written work plan to the Minister, and the person intending to operate the general distribution terminal business shall submit the application to the Special Metropolitan City Mayor, Metropolitan City Mayor, Do governor, or special autonomous Do governor, (hereinafter referred to as the "mayor/Do governor").

"Details prescribed by Presidential Decree" that require authorization of the alteration of a work plan in the latter part of Section 1, Article 9 of the Act mean any of the following subsections:

1. Alteration of the work period;

2. Alteration of the area of the distribution terminal site (only the alteration of an area exceeding one tenth (1/10) of the site);

3. Alteration of the total floor space, (the total area of all floors of a building; the same applies hereinafter), of buildings within a distribution terminal, (only the alteration of an area exceeding one tenth (1/10) of the site); and

4. Alteration of public facilities within the distribution terminal, such as roads, railroads, plazas, greenery, and other facilities prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

Article 6 (Consultation regarding Disuse, etc.)

To request consultation with heads of administrative agencies relating to the disuse and sale of State- or local government-owned properties under the latter part of Section 2, Article 13 of the Act, the Minister or mayor/Do governor shall attach documents of the following subsection:

1. Detailed statement of properties subject to consultation;

2. Documents showing details of consultations about disuse, sale, and appraisal methods of properties;

3. Deleted

4. Deleted

5. Location drawing; and

6. Certificate of unregistered property (required only for unregistered properties). Heads of administrative agencies consulted pursuant to Section 1 shall confirm all the administrative information of the following subsections through the public use of administrative information under Section 1, Article 21 of the e-Government Act:

1. Transcript of land (forest land) register;

2. Transcript of the register; and

3. Transcript of cadastral map. The Minister of Strategy and Finance may have the properties managed or disposed in accordance with Section 4, Article 13 of the Act managed or disposed on consignment in accordance with Section 3, Article 32 of the State Properties Act.

Article 7 (Offenses, Surcharge Amount, etc.)

Offenses and surcharge amounts under Section 2, Article 18 of the Act are as shown in Table 1.

The Minister may increase or reduce the surcharge amount under Section 1 considering the scale of the business, particularity of the business area, extent and frequency of the offense/s, and other circumstances within the limits of a half of the amount. In the case of being increased, the total surcharge amount shall not exceed ten million won. Article 8 (Imposition and Payment of Surcharges)

Where a surcharge is imposed under Article 7, the Minister shall investigate and confirm the offense and notify the imposed of the surcharge with a documentary statement of the offense and the method and time limit for lodging objections. Any person who has received a notification under Section 1 shall pay the surcharge to the receiving agency specified by the Minister within 20 days from the date of notification, provided that, in the event that the surcharge cannot be paid before the expiry of the time limits due to natural calamities or any other uncontrollable accidents, it shall be paid within 7 days from the date the reason is no longer valid. The receiving agency that has received the surcharge under Section 2 shall deliver the receipt for the surcharge to the payer. When it has delivered the surcharge receipt under Section 3, the receiving agency shall give the Minister notice of having received the surcharge. Surcharges shall not be paid in installments.

Article 9 (Reminders and Collection of Surcharges) The Minister shall send a reminder to the person notified of a surcharge under Section 3, Article 18 of the Act within 7 days after the due date of payment when the person has failed to pay the surcharge. In this case, the time limit for payment shall not exceed 10 days from the date the reminder was sent.

In the event that the person who has received the reminder under Section 1 fails to pay the surcharge by the time limit, the Minister may have his/her official forcibly collect the surcharge following the example of a disposition of national taxes in arrears. In this case, the official shall carry a certificate proving his/her legal authority to present to those persons concerned.

Article 10 (Establishment of Association)

In the event that distribution terminal businesses are intended to establish a Distribution Terminal Business Association, (hereinafter referred to as an "Association"), under Article 19 of the Act, promoters consisting of 7 or more businesses shall submit an application for authorization on the establishment, attached with documents of the following subsections, to the Minister after passing the decision at the inaugural meeting:

1. Articles of association;

2. List and resumes of promoters;

3. List of members;

4. Business plan, and revenue and expenditure plan; and

5. Minutes of the inaugural meeting. Article 11 (Articles of Association)

Articles of Association shall include matters outlined in the following subsections:

1. Purpose;

2. Name;

3. Location of the office;

4. Matters relating to membership and the general meeting;

5. Matters relating to directors;

6. Matters relating to business activities;

7. Matters relating to budgeting and membership fees;

8. Matters relating to alterations of the Articles of Association;

9. Matters relating to dissolution; and

10. Matters relating to the method of announcements. Article 12 (Business)

The Association shall conduct the business activities of the following subsections:

1. Pursuit of the sound development of the distribution terminal business and common interests of the business entities;

2. Compilation and management of statistics necessary for the development of the distribution terminal business, and collection, investigation, and research of foreign data;

3. Training and education of managers and employees;

4. Guidance on the improvement of the management in the distribution terminal businesses;

5. Business activities consigned by the Minister; and

6. Business activities incidental to each of Subsections 1 to 5. Chapter 4 Development and Operation of a Distribution Complex Article 13 (Designation of a Distribution Complex) "The size designated by Presidential Decree" in the provision of Section 1, Article 22 of the Act means one million (1,000,000) sq. meters. "The amendments of important matters designated by Presidential Decree" in the latter parts of Sections 2 and 3, Article 22 of the Act mean alterations of the following subsections:

1. Alterations of the area designated for the distribution complex, (only an amendment of an area exceeding one tenth (1/10) of the total area);

2. Alterations of an area for the distribution complex facility sites, (only an amendment of an area exceeding one tenth (1/10) of the total area), or amendment of the use of the area for the distribution complex facility sites;

3. Alterations of the infrastructure, (including drains), (only an amendment of an area exceeding one tenth (1/10) of the total area), or an amendment of the site for the facilities hereof; or

4. Alterations of the distribution complex development project undertaker. Article 14 (Application for Designation as Distribution Complex) When designating a distribution complex in accordance with Section 2 or 3, Article 22 of the Act, the Minister or mayor/Do governor, (hereinafter referred to as the "Distribution Complex Designator"), shall designate a distribution complex only when it conforms to the distribution complex development plans and Distribution Complex Development Guidelines under Article 15.

Any person who intends to apply for a designation of a distribution complex under Section 4, Article 22 of the Act shall submit an application for designation, attached with documents and drawings of each of the following subsections, to the Distribution Complex Designator:

1. Location drawing, and drawings showing arrangements and air views of facilities;

2. Documents showing the uses of land subject to designation;

3. Documents relating to the conditions of the location, including water, energy, traffic, and communications;

4. Documents relating to plans for the disposition of developed land, facilities, etc., (disposition plans shall show location, area, price determination method, qualifications for and how to selected persons for supply, time, method, and conditions of supply, and matters relating to lease and management. The same shall apply hereinafter.) When an area for which an application for a designation as a distribution complex is deemed unsuitable to be so designated, the Distribution Complex Designator shall notify the applicant of the reason thereof. "Other matters prescribed by Presidential Decree" in Subsection 9, Section 5, Article 22 of the Act mean matters of the following subsections:

1. Plans for supporting major facilities for distribution complex development; and

2. Plans for land substitution, where necessary. Article 15 (Distribution Complex Development Guidelines) In the event that it is deemed necessary for the rational development of distribution complex, the Minister shall prepare and announce the basic guidelines of distribution complex development, (hereinafter referred to as the "Distribution Complex Development Guidelines"), in the official gazette.

When preparing the Distribution Complex Development Guidelines, the Minister shall hear opinions of the mayor/Do governor and have consultations with all central administrative agencies concerned, and pass the deliberations of the Distribution Facilities Subcommittee under Subsection 2, Section 1, Article 19 of the Basic Distribution Act. The same shall apply to alterations of the Distribution Complex Development Guidelines, provided, however, that the same shall not apply to alterations of trivial matters as prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

The Distribution Complex Development Guidelines shall be prepared in such a way as to ensure the reasonable apportionment of distribution complex facilities land among regions for balanced regional development.

Matters necessary for the writing of the Distribution Complex Development Guidelines shall be designated by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

Article 16 (Announcement of Distribution Complex Designation or Amendment) "Matters prescribed by Presidential Decree" in Section 1, Article 23 of the Act mean matters relating to the following subsections:

1. Name, location, and area of the distribution complex;

2. Purpose of the designation of the distribution complex;

3. Undertaker of the distribution complex development project;

4. Period and method for the development of the distribution complex;

5. Plans for land use and major basic facilities;

6. Business types for invitation and plans for their arrangement;

7. Particulars and owners of land, structures, or articles fixed on land and rights other than ownership thereof, mining rights, fishing rights, and water rights subject to expropriation or use, where necessary, and name and address of persons concerned, (hereinafter referred to as "Land, etc."), under Subsection 5, Article 2 of the Act on the Acquisition of Land, etc. for Public Works and Compensation Thereof;

8. Support plans for major facilities for distribution complex development;

9. Plans for land restitution to former land owners;

10. Basic plans for public water reclamation under Articles 4 and 8 of the Public Waters Reclamation Act;

11. Urban management plans under Article 30 of the National Land Planning and Utilization Act;

12. Land shape drawings, etc. under Section 3, Article 8 of the Basic Act on Regulations on Land Use; and

13. Methods for the public reading of relevant books. Where matters under Subsections 3, 7, or 9, Section 1 are not decided at the time of distribution complex designation, such matters may be separately announced later after their details are determined.

Where the mayor/Do governor has designated or altered a distribution complex and announced matters under subsections of Section 1, it shall notify the Minister of any details of such announcements without delay. Article 17 (Hearing of Opinions of Residents, etc.) In case of intending to hear opinions of residents and experts concerning a designation of a distribution complex, the Distribution Complex Designator shall send details of the draft distribution complex development plan to the special autonomous Do governor, head of a city, Gun or Gu, (hereafter meaning the head of an autonomous Gu; hereinafter referred to as the "Head of the City/Gun/Gu"), and upon receipt thereof, the Head of the City/Gun/ Gu shall announce all important details in the daily newspaper published in the region for the purposes of public reading for more than 14 days. Any person who has an opinion about any details of the distribution complex development plan draft announced under Section 1 may submit opinions in writing to the Head of the City/Gun/ Gu concerned within the period for public reading. The Head of the City/Gun/ Gu concerned shall submit comments and opinions presented under Section 2 to the Distribution Complex Designator. "Trivial matters prescribed by Presidential Decree" in the provision of Section 1, Article 24 of the Act mean matters relating to the following subsections:

1. Alterations of the designated area for a distribution complex, (only alterations of an area not exceeding one tenth (1/10) of the site);

2. Alterations of the designated area for distribution complex facilities, (only alterations of an area not exceeding one tenth (1/10) of the site), or alterations of the usage purpose of a distribution complex facilities site; and

3. Alterations of the area for infrastructure, (including drains), (only alterations of an area not exceeding one tenth (1/10) of the site), or alterations of the location of such the facilities.

In case of intending to omit the process of hearing opinions of residents and relevant experts, the Distribution Complex Designator shall have consultations with the heads of administrative agencies concerned in advance. Article 18 (Acts Subject to Permission)

Acts that shall obtain permissions from the Head of the City/Gun/Gu under Section 1, Article 25 of the Act are as per the following subsections:

1. Construction, etc. of buildings: Construction, large-scale repair, or alteration of the purpose of use of buildings, (including temporary buildings), under Subsection 2, Section 1, Article 2 of the Building Act;

2. Installation of structures: Installation of artificially made structures, (excluding structures under Subsection 2, Section 1, Article 2 of the Building Act);

3. Alterations of land shape and quality: Acts of altering land shapes by way of cutting, raising, leveling, and/or paving the ground, digging land, and/or the reclamation of public waters;

4. Gathering of earth and rocks: Gathering of earth and rocks, such as earth, sand, pebbles, and rocks. Subsection 3 shall apply, however, to such acts for the purpose of altering land shape and quality;

5. Division of land;

6. Piling up of articles: Piling up of articles that are difficult to move for in excess of one month; and

7. Lumbering or planting of bamboo and trees. In case of intending to give permission for actions under subsections of Section 1 in accordance with Section 1, Article 25 of the Act, and where the undertaker of the distribution complex development project, (hereinafter referred to as the "Undertaker"), has already been designated, the Head of the City/Gun/Gu shall hear opinions of the Undertaker in advance.

"Other actions prescribed by Presidential Decree" in Subsection 2, Section 2, Article 25 of the Act mean actions falling under any of the following subsections and not falling under acts required for permission for development under Article 56 of the Act on National Land Planning and Utilization:

1. Installation of small-scale structures prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs for direct use in the production of agricultural and marine products;

2. Alterations of land shape and quality for farming;

3. Gathering of earth and rocks that does not cause impediments to the development of the distribution complex and damage to natural scenic beauty;

4. Piling up of articles on land decided for retention in the distribution complex; and

5. Temporary planting of bamboo and trees for decorative purposes, (excluding temporary planting on farm land).

Any person seeking to submit a report under Section 3, Article 25 of the Act shall submit the report to the Head of the City/Gun/Gu concerned, attaching the progress of, and implementation plans for, the work or project within 30 days from the announcement of distribution complex designation. Article 19 (Cancellation of Distribution Complex Designation) "The period prescribed by Presidential Decree" in Section 1, Article 26 of the Act means 5 years.

In case of intending to cancel a distribution complex designation in accordance with Section 2, Article 26 of the Act, the Distribution Complex Designator shall specify matters relating to the following subsections and consult with the heads of administrative agencies concerned:

1. Reason for and particulars of cancellation; and

2. Matters relating to restitutions of the service area under Article 36 of the Act on National Land Planning and Utilization.

In the event that a distribution complex designation has been cancelled in accordance with Sections 1 and 2, Article 26 of the Act, the Distribution Complex Designator shall announce matters relating to the following subsections:

1. Name of the distribution complex;

2. Location and area of the distribution complex to be cancelled;

3. Reason for the cancellation of the distribution complex designation;

4. Whether the service area under Article 36 of the Act on National Land Planning and Utilization is restituted or not; and

5. The method for the public reading of books concerned. Article 20 (Undertaker)

The Distribution Complex Designator shall designate the Undertaker under Section 1, Article 27 of the Act in consideration of the feasibility of the project, financing capacity, and relationship with development plans established in accordance with other acts.

"Public agencies prescribed by Presidential Decree" in Subsection 2, Section 2, Article 27 of the Act mean agencies of the following subsections:

1. Korea Land Corporation under the Korea Land Corporation Act;

2. Korea Expressway Corporation under the Korea Expressway Corporation Act;

3. Korea National Housing Corporation under the Korea National Housing Corporation Act;

4. Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

5. Korea Rural Community Corporation under the Korea Rural Community Corporation Act; and

6. Korea Harbor Corporation under the Korea Harbor Corporation Act. Any person who seeks to be designated as the undertaker under Section 3, Article 27 of the Act shall submit an application for designation of the undertaker with the entry of details of the following subsections to the Distribution Complex Designator:

1. Name, (for corporations, names of the organization and representative), and address of the person who seeks to implement the project;

2. Name and location of the distribution complex where the project is to be implemented, and area for project implementation; and

3. The scheme of the project, including name, purpose, outline, implementation period, and implementation method.

The application for designation of the undertaker shall be attached with documents and drawings outlined in the following subsections:

1. Location drawing;

2. Business plan; and

3. Financing plan. Article 21 (Vicarious Implementation of Development Project) In the event that the simultaneous development of site for distribution complex facilities and construction of distribution complex facilities is deemed necessary or where it is deemed necessary for the smooth implementation of the distribution complex development project, the Undertaker may have the occupied companies concerned or support agencies vicariously develop the land that they will use for their facilities in accordance with Section 5, Article 27 of the Act. In case of intending to have the occupied companies or support agencies vicariously implement part of the distribution complex development project in accordance with Section 5, Article 27 of the Act, the Undertaker shall form a contract thereof. In this case, the Undertaker shall submit a report about the vicarious implementation of the distribution complex development project, attached with a copy of the contract, to the Distribution Complex Designator concerned within 14 days from the date of the contract.

The Undertaker shall guide and supervise the vicarious undertaker with whom he/she has made a contract in accordance with Section 2 to ensure the faithful implementation of the project by the vicarious undertaker as contracted. Article 22 (Approval of Implementation Plan)

In case of intending to approve the distribution complex implementation plan, (hereinafter referred to as the "Implementation Plan"), under Section 1, Article 28 of the Act, the Undertaker shall submit an application for approval of the Implementation Plan with an entry of the following details to the Distribution Complex Designator:

1. Name, (for corporations, names of the organization and representative), and address of the Undertaker;

2. Name of the project;

3. Purpose of the project;

4. Location and area of the project;

5. Implementation method and period of the project;

6. Current status of land utilization in the region for the project implementation;

7. Plan for land utilization and basic facilities; and

8. Plan for attribution and management of public facilities. The application for approval of the implementation plan under Section 1 shall be attached with documents and drawings outlined in the following subsections:

1. Location drawing;

2. Drawing for land utilization made in conformity with the cadastral map;

3. Planning plane plan and execution drawings, (for a project including reclamation of public waters, a written explanation of the reclamation work under Section 1, Article 16 of the Enforcement Decree of the Public Waters Reclamation Act is added hereto.);

4. Project cost and financing plan, (including yearly investment plan);

5. Documents relating to the plan for the disposition of developed land and facilities;

6. Particulars of existing distribution complex facilities or buildings retained in the project area;

7. Documents relating to the purchasing or compensation of land, buildings, or rights, and the settlement of residents of the project area;

8. Particulars and owners of land, etc., if any, and names and addresses of persons concerned under Section 5, Article 2 of the Act on the Acquisition of Land for Public Projects and Compensation Thereof;

9. Plans for gratuitous attribution of public facilities, land, etc.;

10. Relevant documents and drawings necessary for decisions about urban management plans;

11. Documents for consultation about the utilization of the sea area under Article 8 of the Enforcement Decree of the Prevention of Marine Pollution Act, (only for public water reclamation projects);

12. For projects subject to environmental impact assessment under the Environmental Impact Assessment Act or projects subject to traffic impact analysis and establishment of improvement measures under the Urban Traffic Improvement Promotion Act, a written environmental impact assessment or written traffic impact analysis and establishment of improvement measures; and

13. Documents relating to the preservation of cultural properties. "Important details prescribed by Presidential Decree" in the latter part of Section 1, Article 28 of the Act mean matters other than each of the following subsections:

1. Alterations of the address of the Undertaker;

2. Alterations of the representative of an Undertaker that is a corporation;

3. Correction of the implementation area due to mistakes and other problems within the range that do not influence the project implementation area;

4. Alterations of the area for the implementation of projects in divisions within a range that does not exceed the project implementation area;

5. Reduction of the area within a range not exceeding ten hundredths (10/100) of the project implementation area;

6. Increase or decrease of project costs within a range not exceeding ten hundredths (10/100) of the project cost; or

7. Alterations of the site area as a result of a cadastral confirmation survey conducted under Subsection 2, Article 41-3 of the Cadastral Act. Article 23 (Announcement of Approval of Implementation Plan) Matters of the following subsections shall be announced in accordance with Section 1, Article 29 of the Act:

1. Name of the project;

2. Name of the Undertaker, (for corporations, names of the organization and representative);

3. Purpose and summary of the project;

4. Location and area of the project implementation area;

5. Project implementation period, (including dates scheduled for the start and completion of the work); and

6. Matters relating to urban planning facilities under subsections of Section 5, Article 25 of the Enforcement Decree of the National Land Planning and Utilization Act. Article 24 (Implementation of a Distribution Complex Development Project on Consignment)

"Public facilities prescribed by Presidential Decree" in Section 1, Article 31 of the Act mean roads, water supply facilities, railroads, utility-pipe conduits, waste water final treatment facilities, waste treatment facilities, public energy supply facilities, embankment, shore protection, breakwater, estuary dams, and green zones. In case of intending to consign part of a distribution complex development project to the state, local governments, or public agencies in accordance with Section 1, Article 31 of the Act, the Undertaker shall consult with the consignee on matters relating to the following subsections:

1. The area of the consigned project;

2. Type, scale, amount, and other details of the consigned project that can form standards for work design;

3. Implementation period of the consigned project, (including dates scheduled for the start and completion of the work);

4. Payment method of the cost for the consigned project and management of the funds;

5. Matters relating to the management of real estate, machinery, materials, and workers, if the consignor provides them;

6. Matters relating to risk bearing; and

7. Other matters necessary to make certain the consigned project is completed. "Public agency as prescribed by Presidential Decree" in Section 1, Article 31 of the Act means agencies under subsections of Section 2, Article 20. Article 25 (Land Restitution to Land Owners)

Land owners to whom land can be restituted in accordance with Section 1, Article 34 of the Act shall be land owners who intend to construct distribution complex facilities suitable for invited business types and who have land of an area exceeding the minimum supply area specified in the distribution complex development plan. Any person who intends to have land restituted in accordance with Section 1 shall submit an application for land restitution attached with a plan for distribution complex facilities installation to the Undertaker. The application for land restitution under Section 2 shall be made within the consultation period specified in the announcement of compensation regarding the distribution complex.

The Undertaker shall provide the methods and procedures for land restitution in conformity with the standards outlined in the following subsections:

1. Value of the existing land to be restituted shall be the compensation value proposed by the Undertaker for consultation at the time of the compensation announcement and the value of restitution land shall be based on the selling price for the distribution complex facilities land;

2. The restitution area shall be determined based on the existing land area, but it may be increased or decreased considering the local conditions, and supply and demand for a distribution complex;

3. Differences between the value of the existing land and the value for restitution land shall be paid in cash.

Article 26 (Scope of Public Facilities)

Public facilities under Article 26 of the Act shall be facilities as per the following subsections among public facilities under Section 13, Article 2 of the National Land Planning and Utilization:

1. Roads;

2. Parks;

3. Plazas;

4. Parking lots, (only those installed by the state or local governments);

5. Railroads;

6. Rivers;

7. Green areas;

8. Playing fields, (only those constructed by the state or local governments);

9. Public open areas;

10. Waterworks, (for waterworks constructed by Korea Water Resources Corporation, pipelines only);

11. Sewerage;

12. Utility-pipe conduits;

13. Storing ponds; and

14. Ditches. Article 27 (Construction Scope, Period, etc. of Electrical and Other Facilities) The construction scope of electrical, telecommunication, gas supply, and regional heating facilities under Section 2, Article 38 of the Act shall be as per the following subsections:

1. Electrical facilities: Electrical facilities from the main facilities outside the distribution complex to the border line of the individual lot inside the distribution complex joining with an urban planning road of over 6m by the land utilization plan, (hereinafter referred to as the "Individual Lot");

2. Telecommunication facilities: Duct lines from the main facilities outside the distribution complex to the Individual Lot and cable facilities from the main facilities outside the distribution complex to the first terminal inside the distribution complex;

3. Gas supply facilities: Gas supply facilities from the main gas supply facilities outside the distribution complex to the border line of the Individual Lot inside the distribution complex. In the event that the constant pressure control room is constructed in the Individual Lot inside the distribution complex for the supply of gas for cooking or individual heating, (excluding for a regional concentration heating system), however, gas supply facilities to the constant pressure control room;

4. Regional heating facilities: Heat pipelines from the diverging point of the main heat pipeline outside the distribution complex to the cutoff valve at the entrance of machine rooms in the Individual Lot inside the distribution complex. When approving the implementation plan, the Distribution Complex Designator shall notify the fact to the constructers of electrical, telecommunication, gas supply, and regional heating facilities under Section 2, Article 38 of the Act of the fact without delay.

Unless there is special reason, the construction of facilities under Section 1 shall be completed before the date of application for authorization on construction completion, (for any Undertaker that is the Distribution Complex Designator, the date of completion of the distribution complex development project), under Article 46 of the Act.

Article 28 (Support for Cost or Loan)

Types of cost that the State or local government may subsidize or finance in accordance with Section 1, Article 39 of the Act shall be as per the following subsections:

1. Cost of the construction of the main road of the distribution complex;

2. Cost of construction of the green area of the distribution complex;

3. Cost of the settlement project;

4. Cost of the development and purchase of land for distribution complex facilities and support facilities;

5. Cost of the construction of water supply facilities, sewage, and waste water final treatment facilities; and

6. Cost of investigations relating to cultural properties. Article 29 (Support for the Construction of Infrastructure) The infrastructure that the State or local government gives in support, in accordance with Section 2, Article 39 shall be as per the following subsections:

1. Roads, railroads, and harbor facilities;

2. Water supply and communications facilities;

3. Sewage and waste treatment facilities;

4. Utility-pipeline conduits within the distribution complex;

5. Collective energy supply facilities; and

6. Other public facilities necessary for distribution complex development and prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs. Article 30 (Revenue Resources of Special Accounts for a Distribution Complex) "The proportion prescribed by Presidential Decree" in Subsection 6, Section 2, Article 40 of the Act means ten, (10) percent, provided, however, that, in the event that the municipal ordinance of the local government prescribes a proportion in excess of 10 percent, the proportion shall mean a proportion of over 10 percent. Article 31 (Purposes of Special Accounts for a Distribution Complex) "Other matter prescribed by Presidential Decree" in Subsection 7, Section 1, Article 41 of the Act mean the cost for the distribution complex development project conducted by local governments.

Article 32 (Operation and Management of Special Accounts for a Distribution Complex)

The scope of support of special accounts for a distribution complex under Article 41 of the Act shall be as provided by the following subsections:

1. Cost of the following items for a project conducted by the head of the local government:

a. Construction cost for distribution complex development project; and b. Construction cost for urban planning facilities for a distribution complex development project under Subsection 10, Article 2 of the National Land Planning and Utilization Act and costs for compensation for private land.

2. Support not exceeding half the cost of the following items for work conducted by persons other than in Subsection 1:

a. Cost for construction of urban planning facilities for a distribution complex development project; and

b. Construction cost for urban planning facilities connected with a distribution complex development project under Subsection 10, Article 2 of the National Land Planning and Utilization Act.

3. Cost for investigation and research under Subsection 4, Section 1, Article 41 of the Act; and

4. Expenses under Subsection 6, Section 1, Article 41 of the Act. The scope in which the special account for a distribution complex development under Article 41 of the Act can loan money shall be as provided for in the following subsections:

1. Less than half the cost for an urban planning facilities project that the head of the local government concerned conducts in connection with a distribution complex development project in accordance with Subsection 10, Article 2 of the National Land Planning and Utilization Act;

2. Less than one third (1/3) of the costs for projects of the following items conducted by persons other than as under Subsection 1: a. Cost for construction of urban planning facilities for a distribution complex development project; and

b. Construction cost for an urban planning facilities project connected with a distribution complex development project under Subsection 10, Article 2 of the National Land Planning and Utilization Act.

Article 33 (Prepayment)

Any Undertaker who intend to receive prepayment, (hereinafter referred to as the "Prepayment"), under Article 43 of the Act shall obtain approval of the implementation plan for the distribution complex concerned and meet the conditions outlined in the following subsections:

1. The Undertaker falling under Subsections 1 through 3, Section 2, Article 27 of the Act: Ownership over land exceeding thirty hundredths (30/100) of the area on which the implementation plan has been approved shall be secured, and construction work for the distribution complex development project shall be commenced.

2. The Undertaker falling under Subsections 4 and 5, Section 2, Article 27 of the Act: All requirements of the following items shall be met: a. The ownership of the land sold in lots shall be secured and the mortgage on the land shall be cancelled. In the event that the Undertaker has failed to secure ownership of the land or failed to cancel a mortgage on the land for inevitable reasons, the Undertaker, land owner, and the mortgagee shall notarize a joint agreement pursuant to the following purposes and submit it to the person who has the authority to approve the Implementation Plan under Section 1, Article 28 of the Act: (1) The land owner shall neither assign the land to a third party nor offer the land as security;

(2) In the event that any person who has paid the price under Article 43 of the Act has obtained the authorization on completion or permit for use prior to completion authorization and intends to use the land, the land owner and the mortgagee shall assign ownership and cancel the mortgage without delay.

b. The land sold shall have been developed by more than ten hundredths (10/100) of the entire planned process;

c. The Undertaker shall submit a letter of guarantee, etc., (this refers to a letter of guarantee, insurance policy, certificate of time deposit, beneficiary certificate, etc. as specified by subsections of Section 2, Article 37 of the Enforcement Decree of the Act on Contracts to Which the State is a Party), for the following purpose to the Distribution Complex Designator as security for a refund of the prepayment when he/she fails to perform the agreement for sale in lots:

(1) The guaranteed or insured amount shall exceed the prepaid amount plus the amount equivalent to the agreed interest for the guaranteed or insured period, (the amount calculated by the interest rate for a loan on a bill of commercial banks, excluding local banks);

(2) The guarantee or insurance period shall commence prior to the receipt date of prepayment and expire more than 30 days after the date of completion. In the event that the project period is extended, the Undertaker shall submit a letter of guarantee, etc. of which the guarantee or insurance period is the original guarantee or insurance period plus the extended project period. The Undertaker shall not offer his/her developed land or facilities as security after the receipt of prepayment under Section 1.

In the event that the Undertaker fails to conduct the project as provided for in the agreement for sale in lots or is deemed incapable of conducting the project, the Distribution Complex Designator may use the letter of guarantee, etc. to get the prepayment returned before the distribution complex is completed. Article 34 (Facilities Charge)

"Public facilities designated by Presidential Decree" in Section 1, Article 44 of the Act mean facilities as per the following subsections:

1. Access roads and main roads to the distribution complex;

2. Parks and green areas of the distribution complex, (only parks and green areas decided as urban planning facilities);

3. Water supply facilities, sewage, telecommunication facilities, and waste treatment facilities; and

4. Public facilities attributed to the state or local government gratuitously in accordance with Article 36 of the Act.

The cost for the construction of public facilities under Section 1 shall be the sum of land costs, land charges, development costs, infrastructure construction costs, direct labor costs, costs for settlement, selling expenses, administrative expenses, capital cost, and other costs calculated in accordance with standards specified in Section 3, Article

39. In the event that there are two or more Undertakers to whom the provision of Section 1, Article 44 of the Act is applied, the cost for construction of public facilities in the distribution complex shall be jointly shared among those Undertakers in proportion to the usable area allotted to each of them among the total usable area, (including all land areas for existing facilities), of the distribution complex. In the event that public facilities are constructed for the use of specific Undertakers, the whole or part of the construction costs may be shared among the Undertakers who will use the public facilities considering location, construction purpose, usage conditions, and regional conditions, notwithstanding the provision of Section 3. Facilities charges to be imposed on owners of maintained facilities or persons who buy land or facilities after development in accordance with Section 2, Article 44 of the Act shall be calculated by multiplying the dividend of dividing the construction costs of the public facilities by the total area sold after development by the area owned by the payer of the facilities charges. Facilities charges imposed on owners of maintained facilities, however, may be reduced by the cost of the facilities as designated by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs. In case of imposing facilities charge in accordance with Section 2, Article 44 of the Act, the Undertaker shall notify the payers of the charge in writing with specifications of the name of public facilities, total construction cost, amount to be paid, payment method, and time limits. Where imposing facilities charges on owners of maintained facilities, however, the Undertaker shall hear the opinions of the owners in advance.

Article 35 (Employment of Settlers)

Where it is deemed necessary for the stabilization of livelihood of settlers or residents in neighborhoods in accordance with Section 2, Article 45 of the Act, the Undertaker may make a list of positions sought for employment applications by local companies and ask the head of the employment agency, city, Gun, or Gu for job placement assistance.

Upon receipt of the request for job placement under Section 1, the head of the employment agency, city, Gun, or Gu shall take earnest measures for job placement, including a presentation of a list of wanted positions to job seekers and a list of applicants to companies.

Article 36 (Authorization for Completion)

To obtain authorization for completion under Section 1, Article 46, the Undertaker shall submit an application for authorization for completion with the entry of the following information to the Distribution Complex Designator concerned:

1. Name (for corporations, names of the organization and representative) and address of Undertaker;

2. Name of the project;

3. Location and area of the project implementation district;

4. Project implementation period;

5. Land utilization plan; and

6. Plan for basic facilities. The application for authorization for completion shall be attached with documents and drawings as per the following subsections:

1. Documents on completion design, (including pictures on completion);

2. Cadastral survey map issued by the head of the city, Gun, or Gu;

3. Report on the attribution of public facilities, land, etc. under Article 36 of the Act, (for the Undertaker under Subsection 5, Section 2, Article 27 of the Act, report on the assessment of the appraiser for disused public facilities, land, etc., and a calculation of the cost of public facilities construction in accordance with the Public Notice of Values and Appraisal of Real Estate Act are included.);

4. Land restitution plan and comparison of the former and new cadastral maps, (only in the case of restituting land in accordance with Article 34 of the Act);

5. Statement of land to be acquired by the Undertaker and land, etc. to be attributed to the state or local governments in accordance with Article 26, Section 4 of Article 38 of the Public Waters Reclamation Act, and Article 20 of the Enforcement Decree of the same Act, (only in cases of reclaiming public waters);

6. Drawings of land, facilities, etc. before and after completion;

7. Comparison table of land and facilities before and after completion; and

8. Documents with records relating to other matters necessary for completion inspection.

Upon receipt of the application for authorization for completion, the Distribution Complex Designator shall conduct an inspection on completion and deliver the certificate of authorization for completion when the work is deemed completed as specified in the implementation plan approved under Article 28 of the Act. "Public agencies, research institutes, or other professional institutes specified by Presidential Decree" in the first part of Section 2, Article 46 of the Act mean agencies outlined in the following subsections:

1. Korea Land Corporation under the Korea Land Corporation Act;

2. Korea Expressway Corporation under the Korea Expressway Corporation Act;

3. Korea Rural Community Corporation under the Korea Rural Community Corporation Act;

4. Korea Institute for Industrial Economics and Trade, Korea Maritime Institute, Korea Transport Institute, Korea Rural Economic Institute, and Korea Research Institute for Human Settlements under the Act on the Establishment, Operation, and Fosterage of Government-invested Research Institutes, and the Korea Institute of Construction Technology under the Act on the Establishment, Operation, and Fosterage of Government-invested Science and Technology Research Institutes;

5. Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

6. Korea National Housing Corporation under the Korea National Housing Corporation Act; and

7. Korea Harbor Corporation under the Korea Harbor Corporation Act. Matters to be announced in accordance with Section 3, Article 46 shall be as per the following subsections:

1. Name of the project;

2. Name, (for corporations, names of the organization and representative) and address;

3. Location and area of the project implementation district;

4. Date of authorization for completion; and

5. Plan for maintenance and disposition of public facilities, land, etc. When obtaining authorization for completion under Section 3, the Undertaker shall notify the managing agency of the distribution complex of matters relating to Sections 1 and 2 within one month from the date of completion authorization. Article 37 (Permission for Use prior to Completion Authorization) In case of intending to use the developed land or constructed facilities before obtaining completion authorization in accordance with the provision of Section 5, Article 46 of the Act, the Undertaker shall determine the scope and submit an application for permission for use before completion authorization, attached with a report on the investigation relating to whether it would cause impediments to the implementation of the distribution complex development project to the Distribution Complex Designator or not. In the event that there are state or public properties included in the land or properties for which use permission is applied, the Undertaker shall obtain ownership over the properties in advance.

When receiving the application for permission to use before completion authorization under Section 1, the Distribution Complex Designator shall give permission to use after carefully checking whether the use would cause impediments to the implementation of future distribution complex development projects. When receiving the permission to use before completion authorization under Section 2, the Undertaker shall allow the use of permitted land or facilities unless there is special reason not to do so, if any person applies for use of the land or facilities. Article 38 (Announcement of Cancellation of Designation, Approval, and Authorization)

Matters of the following subsections shall be announced in accordance with Section 2, Article 48 of the Act:

1. Name of the project;

2. Name (for corporation, names of the corporation and the representative) and address of the Undertaker;

3. Location and area of the project; and

4. Details of and reasons for the disposition. Article 39 (Decision of Selling Price, etc.)

When the land and facilities developed by the Undertaker in accordance with Section 1, Article 50 of the Act are sold in lots for distribution complex facilities, the selling price shall be the sum of the development cost and a reasonable profit. Where the Undertaker deems it necessary, however, the selling price may be lowered below that level, (for public properties, the amount in accordance with the Public Properties and Goods Management Act).

The Undertaker may determine the selling price for land and facilities purposed for selling businesses, (excluding the land and facilities supplied to residents in substitution for their land, etc. for their livelihood, considering their ownership status and occupation), such as large stores or specialized arcades, through competitive bidding, where the value appraised in accordance with the Public Notice of Values and Appraisal of Real Estate Act shall be considered the probable price. The development cost under Section 1 shall be the sum of the land price calculated in accordance with the standards of Table 2, land charges, construction costs, infrastructure construction costs, direct labor costs, settling costs, selling expenses, administrative expenses, capital cost, and other expenses. The reasonable profit under Section 1 shall be determined by the Undertaker within a range not exceeding five hundredths (5/100) of the development cost calculated in accordance with Section 3 after subtracting capital cost, costs for project vicarious implementation under Section 5, Article 27 of the Act, and prepayment considering the demand for the location of the distribution complex and local conditions, including considerations of the promotion of balanced development between regions. In the event that land for distribution complex facilities was sold in lots before completion authorization, settlement of the selling price may be made later based on the total cost invested in the distribution complex development project and a reasonable profit after completion authorization.

In the settling of the selling price with a prepaid person under Section 5, the amount equivalent to interest for a one-year time deposit at commercial banks from the date of payment to the settling date shall be deducted from the settling amount. The selling price for land and facilities supplied for purposes other than land for distribution complex facilities under Section 1 shall be determined on the basis of the value appraised in accordance with the Public Notice of Values and Appraisal of Real Estate Act, and where deemed necessary, the Undertaker may sell them below the value, (for public properties, the value in accordance with the Public Properties and Goods Management Act).

Article 40 (Standards for the Calculation of Rent) When leasing the land, facilities, etc. developed as a distribution complex development project in accordance with Section 1, Article 50 of the Act, the rent fee shall be computed in accordance with the following standards, (in the event that the Undertaker deems it necessary, however, the rent fee may be below the level otherwise determined):

1. The initial rent fee for land, facilities, etc.: The amount obtained by multiplying the selling price calculated in accordance with Article 39 by the rate of rent prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs;

2. Rent fees for extending lease owing to the expiry of a lease term and other reasons: The amount obtained by multiplying the declared individual land price calculated in accordance with Article 11 of the Public Notice of Values and Appraisal of Real Estate Act by the rate of rent prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

Article 41 (Method, etc. of the Supply of Land, Facilities, etc.) The Undertaker shall sell in lots or lease the land, facilities, etc. developed as a distribution complex development project for the purposes specified in the distribution complex development plan under Section 2 or 3, Article 22 of the Act, (this selling in lots and lease hereinafter is referred to as "Supply"). In this case, the Undertaker may place restrictions on the qualifications of persons to whom the land, facilities, etc. may be supplied or may make conditions on the selling or leasing. Supply under Section 1 shall be made by lot at a predetermined price. The Supply of land and facilities, (excluding land and facilities supplied to residents in substitution for their previous land, etc. for their livelihoods, considering their ownership status and occupation), such as large stores or specialized arcades, however, shall be made in a competitive bidding process.

For the Supply of land, facilities, etc., the Undertaker shall announce matters of the following subsections: This shall not apply, however, to persons to whom land, facilities, etc. are specifically supplied, and cases where the qualifications to apply for Supply is restricted, and so a notification has been individually made:

1. Name and address of the Undertaker, and name of the representative;

2. Location, area, and purpose of the use of the land, facilities, etc., (including details of restrictions in the event that purposes of use are restricted);

3. Methods and conditions of Supply;

4. Supply price or its determination method;

5. Qualifications for the applicants for Supply and how to select;

6. Period and place for the application for Supply; and

7. Other matters the Undertaker deems necessary to consider. In case of falling under one of the following subsections, the Undertaker may supply land, facilities, etc. by a private contract notwithstanding Section 2:

1. In the event that land for public facilities, such as land for school buildings and public office buildings, which may not be sold to the general public, is supplied to a person who is qualified to construct public facilities in accordance with laws or ordinances of the state or local governments, or other related laws and ordinances;

2. In the event that land of the least area necessary for the maintenance of the maintained structures in accordance with the implementation plan announced under Section 1, Article 29 of the Act is supplied;

3. In the event that land is supplied in compliance with standards specified by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs to a person who has assigned all land he/she owns in the distribution complex to the Undertaker in accordance with the consultation process pursuant to the Act on Land Acquisition for Public Projects and Compensation Thereof;

4. In the event that land is redeemed in accordance with a land redemption bond;

5. In the event that it is deemed inevitable to supply land with remarkably low utility levels in terms of size, shape, and location to a neighboring land owner;

6. In the event that any Undertaker falling under any of Subsections 1 through 3, Section 2, Article 27 of the Act supplies land to a chosen person in accordance with procedures and methods as prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs for the development of the distribution industry, and/or out of necessity for the complex and versatile development of a distribution complex; or

7. In the event that land may be supplied under private contract in accordance with other laws and ordinances concerned.

Other matters necessary for the supply method, etc. of land, facilities, etc. shall be designated by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs. Article 42 (Assignment, etc. of Land and Facilities for Disposition) In the event that any company or support agency intends to assign its purchased land or facilities to the Undertaker or the managing agency, (hereinafter referred to the "Managing Agency"), under Article 53 of the Act prior to finishing the construction of the distribution complex facilities or support facilities in accordance with Section 1, Article 51 of the Act, it shall submit an application for disposition, attached with documents prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs to the Undertaker or the Managing Agency.

The Undertaker or the Managing Agency that has received an application for disposition under Section 1 shall select the person for assignment within the period prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs and notify the fact to the applicant for disposition in accordance with Section 1, Article 51 of the Act. In case of intending to select a person for assignment under Section 2, the Undertaker or the Managing Agency shall announce matters outlined in the following subsections in advance and receive applications for purchasing from candidates for locations:

1. Indication of goods for sale;

2. Selling price and terms and conditions of the payment;

3. Period for purchasing;

4. Qualifications for the location of the purchaser; and

5. Other matters necessary for the Undertaker or the Managing Agency. "Other persons designated by Presidential Decree" in Subsection 3, Section 1, Article 51 of the Act mean organizations pursuant to the following subsections:

1. Korea Credit Guarantee Fund under the Credit Guarantee Fund Act;

2. Korea Technology Credit Guarantee Fund under the Korea Technology Credit Guarantee Fund Act;

3. Korea Asset Management Corporation under the Act on the Efficient Disposition of Insolvent Assets of Financial Institutes and the Establishment of Korea Asset Management Corporation;

4. National Agricultural Cooperatives Federation under the Agricultural Cooperatives Act;

5. National Federation of Fisheries Cooperatives under the Fisheries Cooperatives Act;

6. National Forestry Cooperatives Federation under the Forestry Cooperatives Act;

7. Korea Federation of Small and Medium Business under the Small and Medium Business Cooperatives Act;

8. Small and Medium Business Cooperation under the Act on the Development of Small and Medium Business and the Promotion of Purchases of their Products;

9. Local Business Corporation established for land development projects in accordance with the Local Public Enterprise Act; and

10. Other organizations that the Undertaker or the Managing Agency deems necessary for the distribution complex management. "Interest and cost designated by Presidential Decree" in Section 2, Article 51 of the Act means the amount of money as per the following subsections:

1. The amount calculated by multiplying the acquired price of the land or facilities for assignment by the producer price index during the period from the acquired date to the assigned date;

2. Taxes and public charges, including acquisition tax and registration tax, excluding taxes additionally charged due to faults attributed to the acquirer; and

3. Expenses spent on maintenance, preservation or improvements of the land, facilities, etc.

In the event that any person under subsections of Section 1, Article 51 of the Act intends to assign land or facilities that he/she has purchased under the same Section, he/she shall have a consultation with the Managing Agency in advance. The assignment price for land or facilities that any person under subsections of Section 1, Article 51 of the Act has purchased under the same section shall be the sum of the acquired price and interest and costs under subsections of Section 5. Article 43 (Organization and Operation of Occupied Companies' Council) The council of occupied companies, (hereinafter referred to as the "Occupied Companies' Council"), under Section 1, Article 53 of the Act shall have over 90 percent of occupied companies of the distribution complex as members. The Occupied Companies' Council shall be comprised of general members and special members.

General members of the Occupied Companies' Council shall be composed of representatives of local companies and supporting agencies and special members shall be appointed from among general members in accordance with membership rules as prescribed by statute of the Occupied Companies' Council. The Occupied Companies' Council shall hold a regular general meeting within two (2) months from the first day of each business year and may hold extraordinary general meetings where necessary.

Unless otherwise prescribed in the articles of association, decisions at meetings of the Occupied Companies' Council shall be formed by the presence of the majority of members and a majority vote of the present members. Article 44 (Details of Management Guidelines for the Distribution Complex) Management guidelines for the distribution complex under Section 1, Article 54 of the Act shall include matters relating to the following subsections:

1. Matters relating to the formulation of plans for the distribution complex management under Article 55;

2. Business types to be invited and standards for invitation;

3. Matters necessary for distribution complex management, including maintenance, repairs, and improvement of land and facilities of the distribution complex. Article 45 (Collection of Management Charges)

The Managing Agency shall charge expenses for the management of the distribution complex under Section 1, Article 56 of the Act within the rates prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

The management charges under Section 1 shall be collected when occupied companies or support agencies move into the distribution complex. The Managing Agency, however, may settle the collection time differently, if necessary. Article 46 (Collection of Share Amount)

"Public Facilities prescribed by Presidential Decree" in Section 2, Article 56 of the Act mean facilities of the following subsections:

1. Roads of the complex;

2. Facilities for the prevention of water quality pollution; and

3. Other facilities prescribed by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs.

The Managing Agency shall charge the shared amount for public facilities under Section 2, Article 56 of the Act in proportion to the benefits obtained by occupied companies and support agencies; provided, however, that, in the event that it is difficult to calculate the benefits, total expenses shall be shared among occupied companies and support agencies in accordance with proportions calculated by considering land area, total floor space, and number of employees.

The Managing Agency may charge the shared amount monthly or quarterly as operating circumstances demand.

Chapter 5 Supplementary Provisions

Article 47 (Commission of Powers)

Powers of the following subsections are commissioned by the Minister to the mayor/Do governor in accordance with Section 1, Article 64 of the Act:

1. Registration and alteration of registration under Subsection 3, Section 1, Article 7 of the Act;

2. Authorization for work implementation and alteration of the work implementation under Subsection 1, consultation with the head of administrative agencies concerned under Subsection 2, and announcements of authorization for work implementation under Subsection 4, Section 1, Article 9 of the Act;

3. Consultation with the head of the administrative agency concerned about the disuse and sale of state or public properties under Section 2, Article 13, (and under Article 37) of the Act;

4. Receipt of reports on succession to composite distribution terminal businesses under Section 2, Article 14 of the Act;

5. Receipt of reports on suspension or closure of business under Section 1, Article 15 of the Act, or dissolution of a corporation under Section 2, Article 7 of the Act;

6. Cancellation of registration and suspension on a composite distribution terminal business under Article 17 of the Act;

7. Imposition and collection of surcharges on a composite distribution terminal business under Article 18 of the Act;

8. Approval for an implementation plan and alteration of the plan under Section 1, (and under Article 49), and consultation with the head of the administrative agency under Section 3, Article 28, (and under Article 49), of the Act;

9. Announcement of approval for the implementation plan and alteration of the plan and forwarding to the head of the city, Gun or Gu under Section 1, Article 29, (and under Article 49), of the Act;

10. Authorization for the completion of a distribution complex development project under Section 1, (and under Article 49), announcement and notification to the Undertaker and the managing administration under Section 3, (and under Article 49), and permission of use under Section 5, (and under Article 49), Article 46 of the Act;

11. Receipt of plans for distribution complex management under Section 1, Article 55 of the Act;

12. Recommendation to the managing agency, etc. under Article 57 of the Act;

13. Order to submit reports and data, and inspection on services of a composite distribution terminal business under Section 1, Article 61 of the Act;

14. Hearings under Section 1, Article 62 of the Act; and

15. Charging of negligence fines on a composite distribution terminal business and collection thereof under Article 67 of the Act;

In the event that the mayor/Do governor has processed any of the commissioned matters under Sections 1, 2, (only for authorization for work implementation and alteration of the work implementation), 4 through 7, 8, (only for approval of implementation plan and alteration of the plan), 10, (only for completion authorization and use authorization) and 15, he/she shall report the matter to the Minister within 5 days. Article 48 (Imposition and Collection of Negligence Fines) In the event of imposing a negligence fine in accordance with Section 1, Article 68 of the Act, the Minister or mayor/Do governor shall investigate and confirm the offense, and notify the offender thereof with a clear statement of the method and time limit for lodging any objections.

In the event of imposing a negligence fine in accordance with Section 1, the Minister or mayor/Do governor shall give the offender an opportunity to state their opinions in writing or orally during a set period of over 10 days. In this case, in case of failing to state its opinions before the expiry of the period, the offender shall be considered as having no opinion.

The sum of a negligence fine as shown in Table 3 shall be imposed in accordance with corresponding types of offenses. The Minister or mayor/Do governor may increase or decrease the sum of a negligence fine within the range of one half, considering the motive for, and frequency of, the offense.

Procedures for the collection of negligence fines shall be designated by Ordinance of the Ministry of Land, Transportation, and Maritime Affairs. Addenda (Enforcement Decree of the Urban Traffic Improvement Promotion Act) Article 1 (Enforcement Date) This Decree shall enter into effect from January 1, 2009. Articles 2 and 3: Omitted.

Article 4 (Amendments of Other Acts and Ordinances): through omitted. Part of the Enforcement Decree of the Distribution Facilities Development and Operation Act shall be amended as follows:

Subsection 12, Section 2, Article 22 shall be as follows:

12. For a business subject to environmental impact assessment under the Environmental Impact Assessment Act or a business subject to traffic impact analysis or formulation of traffic improvement measures in accordance with the Urban Traffic Improvement Promotion Act, a written environmental impact assessment, a written traffic impact analysis, or written traffic improvement measures shall be required. through <18>: Omitted.

Article 5: Omitted.


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