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SPECIAL ACT ON NEW DEVELOPMENT REGION NURTURING INVESTMENT PROMOTION

Chapter 1 General Provisions

Article 1 (Purpose) The purpose of this Act is to contribute to creating a growth engine and balanced national development by developing regions, of which industry- & life-based facilities lag behind other regions but growth potential is retained, in a comprehensive and systematic way and promoting investments. Article 2 (Definition) The definitions of terms used in this Act shall be as follows:

1. "New Development Region" shall mean a region as referred to in Subsections 7 and 8 of Article 2 in the Special Act on the Balanced National Development.

2. "Comprehensive Development Zone for New Development Region" shall mean a zone designated under Article 5 in order to broadly link a New Development Region and its adjacent city (Gun) and develop such region and city (Gun) in a comprehensive and systematic way.

3. "Comprehensive Development Plan for New Development Region" shall mean a plan established under Article 5 for the comprehensive and systematic development and investment promotion for the Comprehensive Development Zone for New Development Region.

4. "Development Promotion District for New Development Region" shall mean a district designated under Article 8, which is intended for a development project in accordance with the contents of the Comprehensive Development Plan for New Development Region.

5. "Investment Promotion District for New Development Region" shall mean a district designated under Article 21 in order to promote investment and support newly entering companies in accordance with the contents of the Comprehensive Development Plan for New Development Region.

Article 3 (Relationship, etc. with Other Laws and Regulations) This Act shall prevail over other laws and regulations for a supporting item and a special item applying to the Comprehensive Development Zone for New Development Region, provided that, if there are less regulative provisions in other laws and regulations than the special provision in respect of the regulation mentioned in this Act, the less regulative provisions in other laws and regulations shall apply to the Comprehensive Development Zone for New Development Region.

The Comprehensive Development Plan for New Development Region under this Act shall fully consider the plans under other laws and regulations, which have an influence on the Comprehensive Development Zone for New Development, and be harmonized and balanced with such plans.

Article 4 (Duties of the Nation, etc. for Development of New Development Regions) The State shall establish and drive a comprehensive policy for developing a New Development Region and seek any supporting measures. A Do governor shall establish and implement a plan and a policy relating to the development of a New Development Region through the participation of local residents and cooperation with the competent local government. Chapter 2 Designation, etc. of Comprehensive Development Zone for New Development Region

Article 5 (Designation, etc. of Comprehensive Development Zone for New Development Region) The Minister of Land, Transport, and Maritime Affairs (hereinafter referred to as "the Minister") may, directly or at the request of Do governor, designate a Comprehensive Development Zone for New Development Region, (hereafter referred to as "Comprehensive Development Zone"), provided that, in the event that any target zone covers more than two Dos, the concerned Do governors shall make jointly requests. In case of intending to designate a Comprehensive Development Zone pursuant to Section , the Minister shall hear the opinions of the Minister of Public Administration and Security and establish a Comprehensive Development Plan for the New Development Region, (hereafter referred to as a "Comprehensive Development Plan"). The Minister shall then have a consultation with the concerned Do governor and the head of the concerned central administrative agency, and pass the deliberation of a New Development Region Committee under Article 22. In this case, when having consultation with the head of the central administrative agency, the Minister shall conduct a pre-environmental review and consultation under Article 25 and Article 25-3 of the Framework Act on Environmental Policy.

In case of requesting a designation of a Comprehensive Development Zone, the Do Governor shall establish and submit a Comprehensive Development Plan. The Comprehensive Development Plan shall include the following subsections:

1. Name, location, and area of the Comprehensive Development Zone;

2. Purpose for designation as a Comprehensive Development Zone;

3. Matters relating to the basic policy for developing the Comprehensive Development Zone;

4. Matters relating to a designation of a Development Promotion District for a New Development Region and an Investment Promotion District for a New Development Region;

5. Matters relating to the implementation of main development projects;

6. Matters relating to the attraction of new companies and investment promotion;

7. Matters relating to the refurbishment and expansion of infrastructure;

8. Matters relating to the improvement of the settlement environment;

9. Matters relating to the required financial resources and capital funding; and

10. Other necessary matters for the development of the Comprehensive Development Zone.

Sections and shall also apply to any change of a Comprehensive Development Zone and Comprehensive Development Zone, provided that the same shall not apply to the change of minor items as prescribed by the Presidential Decree. In the event of designating or changing a Comprehensive Development Zone or establishing or changing a Comprehensive Development Plan, the Minister shall place a public notice in an official gazette as prescribed by the Presidential Decree and give notice to both the head of the concerned administrative agency and the head of the local government.

Article 6 (Requirements for Designating a Comprehensive Development Zone) In the event that the Minister intends to designate a Comprehensive Development Zone under Article 5, the Comprehensive Development Zone shall meet the requirements under the following subsections:

1. To be a New Development Region and its adjacent city (Gun), (the area of the adjacent cityGun in the New Development Zone shall not exceed the percentage of the area as prescribed by the Presidential Decree); and

2. To be easily accessible by the installation, etc. of infrastructure and have good development potential and situation such as local specialty industry, etc. Article 7 (Cancellation of Designation of Comprehensive Development Zone) In the event that it is deemed impossible to achieve the purposes for designating a Comprehensive Development Zone, the Minister may cancel such designation after deliberations with the New Development Region Committee pursuant to Article 22. Section of Article 5 shall also apply to a cancellation of the designation of a Comprehensive Development Zone.

Chapter 3 Designation, etc. of Development Promotion District for a New Development Region

Article 8 (Designation, etc. of Development Promotion District for New Development Region) For a region deemed necessary to drive a development project in accordance with a Comprehensive Development Plan, the Minister may, directly or at the request of the Do governor, designate the Development Promotion District for the New Development Region, (hereafter referred to as the "Development Promotion District"). In case of designating the Development Promotion District pursuant to Section , the Minister shall establish a Development Promotion District Development Plan, (hereafter referred to as a "Development Plan"), provided that, in case of requesting a designation of a Development Promotion District, the Do governor shall submit a Development Plan to the Minister.

The Development Plan shall include the following subsections, provided that matters falling under subsection may be included in the Development Plan after designating the Development Promotion District:

1. Name, location, and area of the Development Promotion District;

2. Purpose for designating the Development Promotion District and the period of implementing the development project;

3. In case of dividing and implementing the Development Promotion District into two or more project implementation districts, matters relating to the division of such districts;

4. Matters relating to an undertaker, (only for cases designated pursuant to Article 13), and the manner of implementing the development project;

5. Environment preservation plan;

6. Plans for population, traffic treatment, and land use;

7. Plans for building the main infrastructure such as roads, water supply, drainage, etc.

8. Plans for procuring financial resources and a yearly investment plan;

9. Plans for installing health & medical, education, and welfare facilities (limited to any necessary cases);

10. Matters relating to regional specialization development (limited to any necessary cases); and

11. Particulars, etc. of any land to be expropriate or used. In the event of intending to designate a Development Promotion District and establish a Development Plan, the Minister shall hear the opinions of both residents and experts under conditions as prescribed by the Presidential Decree and the opinions of the Do governor & mayor head of the Gun. The Minister shall consult with the head of the concerned central administrative agency and pass the deliberation of the Central Urban Planning Council under Article 106 of the Act on the Planning and Use of National Territory and the New Development Region Committee under Article 22. In this case, during such consultations, the Minister shall perform a pre-environmental review and consultation under Article 25 and Article 25-3 of the Framework Act on Environmental Policy.

The provisions of Sections , and shall also apply to any changes to a Development Promotion District and a Development Plan, provided that the same shall not apply to military confidential information or any changes of a minor item as prescribed by the Presidential Decree.

In case of designatingchanging a Development Promotion District or establishingchanging a Development Plan, the Minister shall place a public notice in an official gazette as prescribed by the Presidential Decree and give notice to both the head of the concerned administrative agency and the head of the local government. In this case, in the event of designating or announcing a Development Promotion District, the Minister shall announce any topographical drawings, etc. pursuant to Article 8 of the Fundamental Act on the Regulation of Land Use.

Article 9 (Designation Proposal of Development Promotion District) A person, who is not the state or local government but attempts to conduct a development project of a Development Promotion District, among any persons falling under any of the subsections of Section of Article 13 may propose the Do governor to request a designation of a Development Promotion District.

In case of proposing the designation of a Development Promotion District pursuant to Section , the proposer shall submit a Development Plan to the Do governor. Article 10 (Legal Fiction of Designation, etc. of Development Promotion District) In the event that a Development Promotion District is designated or announced under Article 8, the matters discussed in advance with the head of the concerned administrative agency in connection with designating, establishing, or approving any of the following subsections shall be deemed as having been designated, established, and approved in accordance with the contents of the Development Plan pursuant to Section of Article 8:

1. Designation of Urban Development Zone under Article 3 and the establishment of Urban Development Project Plan under Article 4 of the Urban Development Act;

2. Designation of the Projected District for Housing Site under Article 3 and the establishment of Housing Site Development Plan under Article 8 of the Housing Site Development Promotion Act;

3. Designation of National Industrial Complex, General Industrial Complex or Urban Hi-technology Industrial Complex in accordance with the provisions of Articles 6 through 7-2 of the Act on Industrial Sites and Development;

4. Designation of Tourist Site and Tourism Complex under Article 52 of the Tourism Promotion Act;

5. Designation of Logistics Complex under Article 22 of the Act on the Development and Operation of Logistics Facilities;

6. Establishment of Business Plan under Article 6, and the fixing of Business Plan under Article 7 of the Islands Development Promotion Act;

7. Establishment or change of Basic Urban Plan under Articles 18 and 22 of the Act on the Plan and Use of National Territory and the Minister's approval for such an establishment or change, (it means cases that, in the event that a Development Promotion District is designated in a city or Gun region, a revised basic urban plan draft of a location other than the Development Promotion District has been made and submitted to the city Gun);

8. Change into an urban region under subsection of Article 6 and the decision of the Urban Management Plan of Article 30, which is designated as a District Unit Planning Area under Article 51 of the Act on the Plan and Use of National Territory;

9. Decision of the Urban Management Plan under Article 30 which changes or cancels marine resource protection areas under Article 40 of the Act on the Plan and Use of National Territory; and

10. Establishment of Comprehensive Coastal Management Plan under Article 6, establishment of Coastal Management Region Plan under Article 6, and a change of such Comprehensive Coastal Management Plan or Coastal Management Region Plan under Article 12 of the Coastal Management Act.

Article 11 (Revocation of Designation of Development Promotion District) In the event that a Development Promotion District falls under any of the following subsections, the Minister may revoke such designation:

1. In case of failure to apply for approval of an implementation plan under Article 14 up to 3 years since the date of the designationannouncement of Development Promotion District;

2. In case of failure to purchase land of more than a percentage as prescribed by the Presidential Decree up to 2 years since the date of the approvalannouncement of the implementation plan under Article 14;

3. In case of acknowledgement of not achieving the purpose of the designation of the Development Promotion District.

In the event that the designation of a Development Promotion District is revoked under Section and there are designationestablishmentchangesdecisions under any of the subsections of Article 10 and authorizationpermits under Article 15, such a designation of a Development Promotion District shall be deemed as returned to the original state or cancelled.

In the event that there has been a revocation of the designation of a Development Promotion District under Section , the Minister shall place a public notice under conditions as prescribed by the Presidential Decree and notify the head of the administrative agency of said fact.

Article 12 (Restriction of Actions, etc.) Any persons, who seek to perform any actions as prescribed by the Presidential Decree, such as building architecture, installing structures, changing land shape and quality, gathering soil and stone/rock, dividing land, piling object, and planting trees, including bamboo trees, in the Development Promotion District as designated under Article 8, shall gain the prior approval of the mayor or head of the Gun. The same shall also apply to any change of the approved matters. Notwithstanding the provision of Section , any actions falling under any of the following subsections may be performed without prior approval:

1. Natural disaster relief or actions taken for first-aid necessary for disaster prevention;

2. Other actions as prescribed by the Presidential Decree. Any persons who have commenced work or project in respect of the actions having already received approval under the relevant laws and regulations or not requiring such approval at the time of designating the Development Promotion District among those actions pursuant to Section may continue to do such work or project after reporting it to the mayor or head of the Gun under conditions as prescribed by the Presidential Decree.

The mayor or head of the Gun may give an order of restoration to those who have not obtained approval in violation of Section . In this case, if those who are given such an order fail to execute such order, the mayor or head of the Gun may perform vicarious administrative execution under the Administrative Vicarious Execution Act. Except for those things as prescribed in this Act in connection with approval pursuant to Section , Articles 57 through 60 and Article 62 of the Act on the Plan and Use of National Territory shall apply mutatis mutandis.

In case of obtaining approval pursuant to Section , such approval shall be deemed as being obtained under Article 56 of the Act on the Plan and Use of National Territory. Article 13 (Undertaker) An Undertaker to implement the Development Project of a Development Promotion District (hereafter referred to as an "Undertaker") shall be designated by a Do governor among entities falling under any of the following subsections after hearing the opinions of the mayor or head of the Gun:

1. The state;

2. Local government;

3. Public corporation as prescribed by the Presidential Decree among public institutions under the Act on the Operation of Public Institutions;

4. Local public enterprise under the Local Public Enterprise Act;

5. Private company (whose financial soundness, etc. shall meet the standards as prescribed by the Presidential Decree);

6. Local development corporation jointly invested and established by any entity falling under subsections 1 through 4 and a company which corresponds to subsection 5 at a percentage as prescribed by the Presidential Decree. In case of falling under any of the subsections, a Do governor may change the Undertaker.

1. Where the designation of the Undertaker or a permit of an Implementation Plan is cancelled in accordance with an administrative disposition.

2. Where the Undertaker goes bankrupt or becomes insolvent or is deemed as not being capable of achieving the purpose of the Development Project for similar reasons. Article 14 (Approval, etc. of the Implementation Plan) The Undertaker shall make an implementation plan (hereafter referred to as an "Implementation Plan") in respect of the Development Project attaching documents and drawings falling under any of the following subsections and obtain the Do governor's approval:

1. Name and address of any person which attempts to perform the project, (in the case of a juristic person, the name of the juristic person and its representative's name);

2. Name, period, location, and area of the project;

3. A location map and a cadastral map of a project implementation site;

4. A plane figure and a design sketch of the Implementation Plan;

5. A phase formation plan (only cases necessary to implement the Development Project step-by-step under project conditions);

6. A plan for using and disposing of the formed land, etc;

7. A financial plan (including a yearly fund input plan and a funding plan);

8. Other matters as prescribed by the Presidential Decree. The Implementation Plan shall include a district unit plan prepared under Article 52 of the Act on the Plan and Use of National Territory. In case of approving an Implementation Plan, a Do governor shall announce the Implementation Plan under conditions as prescribed by the Presidential Decree, and notify the head of the administrative agency and the mayor or head of the Gun of the contents of the Implementation Plan and the copies of all relevant documents. At this time, the mayor or head of the Gun notified shall take steps to enable the public to view the contents for more than 14 days.

Sections through shall also apply to any change of the Implementation Plan, provided that the same shall not apply to any minor changes as prescribed by the Presidential Decree.

Where there is a special case determined by the Presidential Decree in implementing the Development Project, the Undertaker may offer a land substitution deal to any land owner. In this case, the provisions of the Urban Development Project, such as the land substitution method or the mixing method for land substitution under the Urban Development Act shall apply mutatis mutandis.

Article 15 (Legal Fiction of Authorization and Permits, etc.) In the event that a Do governor has consulted with the head of the administration agency under Section regarding the permit, authorization, designation, approval, discussion, report, etc, (hereafter referred to as "Authorization and Permit, etc."), of any of the following subsections in approving the Implementation Plan or the change hereof under Article 14, the matters which have been consulted over shall be deemed as having obtained Authorization and Permit, etc. at the same time of the approval of the Implementation Plan. In the event that the Implementation Plan is announced, the announcement or public notice of the Authorization and Permit, etc. in accordance with the act of any of the following subsections shall be deemed as being formed:

1. Permits under Article 11, reports under Article 14, changes of permits and reports under Article 16, permits and reports of temporary architecture under Article 20 and consultations about construction under Article 29 of the Building Act;

2. Permits of occupancyuse of public waters under Article 5 of the Public Waters Management Act, discussion and approval of occupancyuse of public waters under Article 6 of the same Act, and approval of the Implementation Plan under Article 8 of the same Act;

3. Licensing of the reclamation of public waters under Article 9 of the Public Waters Reclamation Act, approval of the Implementation Plan under Article 15 of the same Act, and discussion or approval of the Implementation Plan under Article 38 of the same Act;

4. Permit of the use and benefits under Article 20 of the Act on the Management of Public Properties and Articles;

5. Approval of a business plan under Article 15 of the Tourism Promotion Act, approval for forming tourist sites and tourist complexes under Article 54 of the same Act, and permits for implementing such a formation project under Article 56 of the same Act;

6. Permits of the use and benefits of state-owned properties under Article 24 of the State Properties Act;

7. Decisions of an urban management plan under Article 30 of the Act on the Plan and Use of National Territory, permits of development behavior under Article 56 of the same Act, designation of the undertaker for urban planning facilities under Article 86 of the same Act, and authorization of the Implementation Plan under Article 88 of the same Act;

8. Approval of use other than the purpose of agricultural infrastructure under Article 22 of the Agricultural & Fishery Village Refurbishment Act and approval of a business plan for an agricultural & fishery village tourism and recreation complex under Article 68 of the same Act;

9. Permits or consultation of the exclusive use of farmland under Article 34 of the Farmland Act and report of any exclusive use of farmland under Article 35 of the same Act;

10. Consultations with or approval of a road management agency under Article 5 of the Road Act, permits of implementing roadwork under Article 34 of the same Act, and permits of occupying roads under Article 38 of the same Act;

11. Authorization of the Implementation Plan in respect of an urban development project under Article 17 of the Urban Development Act;

12. Permits of constructing private roads under Article 4 of the Private Road Act;

13. Permits of deforestation, etc. under Article 14 of the Work against Land Erosion or Collapse Act and cancellation of designation of erosion control places under Article 20 of the same Act;

14. Approval of an Implementation Plan for a national industrial complex development under Article 17 of the Act on Industrial Location and Development, approval of an Implementation Plan for a general industrial complex development under Article 17 of the same Act, and approval of an Implementation Plan for an urban hi-tech industrial complex development under Article 18-2 of the same Act;

15. Permits of any exclusive use of a mountainous district under Article 14 of the Mountainous District Management Act, report of any exclusive use of a mountainous district under Article 15 of the same Act, and permits of gathering soil and stone/rock under Article 25 of the same Act;

16. Permits, and reports of lumbering, etc. of standing trees under Sections and of Article 36 in the Act on the Formation and Management of Forest Resources, permits and reports of actions within a forest reserve under Sections and of Article 45 in the same act, and cancellation of a designation of a forest reserve under Article 46 of the same Act;

17. Permits of implementing small river construction work under Article 10 of the Small River Maintenance Act and permits of occupying small rivers under Article 14 of the same Act;

18. Authorization of a general waterworks business under Article 17 of the Water Supply and Waterworks Installation Act, authorization of a waterworks business for industrial water under Article 49 of the same Act, authorization of exclusive water supply under Article 52 of the same Act, and authorization of installing waterworks for exclusive industrial water under Article 54 of the same Act;

19. Permits of conducting fishing port development project under Article 23 of the Fishing Village and Fishing Port Act;

20. Consultation of energy using plan under Article 10 of the Energy Utilization Rationalization Act;

21. Registration of the establishment of a large-scaled store under Article 8 of the Distribution Industry Development Act;

22. Approval of an Implementation Plan for developing a logistics complex under Article 28 of the Act on the Development and Operation of Logistics Facilities;

23. Permits of opening tombs under Article 27 of the Act on Funeral Services, etc;

24. Approval of a business plan under Article 16 of the Housing Act;

25. Report of commencement or change or completion of a project under Article 27 of the Cadastral Act;

26. Consultation relating to the supply of integrated energy under Article 4 of the Integrated Energy Business Act;

27. Approval of a business plan under Article 12 of the Act on the Installation and Use of Sports Facilities;

28. Permits for changing the shape and quality, etc. of land under Article 21-2 and approval of the exclusive use of grassland under Article 23 of the Grassland Act;

29. Examination of the use of land survey performance, etc. under Article 25 of the Land Survey Act;

30. Approval of an Implementation Plan for a housing site development project under Article 9 of the Housing Site Development Promotion Act;

31. Approval or report of installing a waste treatment facility under Article 29 of the Waste Control Act;

32. Authorization of the installation of public sewerage under Article 11 of the Sewerage Act, permits of public sewerage work and maintenance under Article 16 of the same Act, and permits of occupying public sewerage under Article 24 of the same Act;

33. Consultation or approval of the concerned management agency under Article 6 of the River Act, permits of conducting river work under Article 30 of the same Act, and permits of occupying rivers under Article 33 of the same Act;

34. Permit of conducting harbor work under Section of Article 9 in the Harbor Act and approval of an Implementation Plan under Section of Article 10, Section 2 in the same Act.

In the event that any person who seeks to receive Authorization and Permit, etc., pursuant to Section , applies for approval or approval of a change of the Implementation Plan, he/she shall submit the relevant documents as determined by the relevant act in addition to the application.

In the event that an Implementation Plan, when intending to approve or approve a change of the Implementation Plan pursuant to Article 14, includes any of the subsections under Section , the Do governor shall consult in advance with the head of the concerned administrative agency. In this case, the head of the administrative agency may express his/her opinion.

In the event that the Authorization and Permit, etc. pursuant to other acts are deemed as received under Section , license taxes, commissions, use charges, etc. imposed by the related laws and regulations shall be exempted. Article 16 (Expropriation and Use of Land, etc.) When necessary for conducting a Development Project, an Undertaker may expropriate or use land articles or rights, (hereafter referred to as "Land, etc."), under Article 3 of the Act on the Acquisition and Compensation of Land, etc. for Conducting a Public Service Project, provided that the Undertaker under subsection of Section of Article 13 shall purchase land corresponding to more than 2/3 of the area of the land entitled to the Development Project and gain approval from more than 1/2 of the total number of the landowners. In this case, the reference date for calculating the requirement for the agreement of the landowners shall be the announcement date of the designation of the Development Promotion District. The land which the Undertaker acquires after the reference date shall be included in the total number of landowners necessary for the requirement for an agreement, and calculated as the number of the agreed landowners. In case of announcing the particulars of Land, etc. under Section of Article 8, which are entitled to expropriation or use under Section (when announcement in the event that the particulars of Land, etc. to be expropriated or used in accordance with the proviso defined in Section of Article 8 are included in the Development Plan after the Development Promotion District has been designated), it is deemed that an acknowledgement for the project and a public notice of the project acknowledgement under Section of Article 20 and Article 22 of the Act on the Acquisition and Compensation of Land, etc. for Conducting a Public Project are made. Notwithstanding Section of Article 23 and Section of Article 28 in the same Act, an application for adjudication may be filed within the period of conducting the Development Project as defined in the Development Plan under Article 8.

Unless otherwise provided for in this Act in connection with the expropriation or use of Land, etc. and the relocation countermeasure, the provisions of the Act on the Acquisition and Compensation of Land, etc. for Conducting a Public Project shall apply mutatis mutandis.

Article 17 (Restriction of Disposition of State & Publicly Owned Property) The land which is in possession of the state or a local government within a Development Promotion District and is necessary for the Development Project shall not be disposed of for purposes other than those as prescribed in the Development Plan. Notwithstanding the State Properties Act and the Act on the Management of Public Properties and Articles, the land which is in possession of the state or a local government within the Development Promotion District and is necessary for the Development Project shall be disposed to the Undertaker in a manner of free contract. In this case, a Do governor shall, when intending to abolish or dispose of the use of the property, have a consultation with the head of the concerned administrative agency in advance. Upon receipt of a request for consultation pursuant to the latter paragraph of Section , the head of the concerned administrative agency shall take all necessary steps in relation to the consultation within 30 days of the receipt of such request. Article 18 (Inspection of Completion, etc.) Upon completion in whole or in part of the Development Project, the Undertaker (excluding the state and local governments) shall prepare a construction completion report under conditions as prescribed by the Presidential Decree and undergo a Do governor's completion inspection. Immediately upon receipt of the construction completion report under Section , the Do governor shall conduct a completion inspection without delay. When it is deemed that the Development Project has been completed as outlined in the Implementation Plan as a result of conducting the completion inspection under Section , the Do governor shall issue and grant to the Undertaker (excluding the state and local governments) a certificate of completion inspection and make a construction completion announcement. If the Development Project has not been completed as outlined in the Implementation Plan, the Do governor shall immediately take any necessary steps to complete the plan, such as complementary construction, etc. In the event that the Undertaker of the state or a local government has in whole or in part completed the Development Project, the Undertaker shall make a construction completion announcement. In this case, the Undertaker of a national organization other than the Minister shall have in advance a consultation with the Minister and the competent Do governor, and the Undertaker of the Minister shall have in advance a consultation with the Do governor.

In case of conducting a completion inspection under Section or making a construction completion announcement under Section , any matters which the state or local governments have consulted over with the head of the concerned administrative agency under Section of Article 15 regarding the completion inspection and completion authorization, etc. pursuant to the legal fiction of Authorization and Permit, etc. under Article 15 shall be deemed as having been received the completion inspection and completion authorization.

In case of intending to obtain the legal fiction of the completion inspection and completion authorization, etc. under Section , the Undertaker (excluding the state and local governments) shall, when filing an application for completion inspection pursuant to Section , submit the relevant documents as determined in the relevant laws and regulations.

Article 19 (Use or Disposition of Formed Land, etc.) The Undertaker shall use or rent or sell the land or architecture, which is formed in accordance with the Development Project, in accordance with a Plan for Using and Disposing the Formed Land etc. as defined in the Implementation Plan.

The use, procedures, and methods for renting or selling and the target of the formed land to be rent or sold under Section and other necessary matters shall be determined by the Presidential Decree.

Article 20 (Attribution of Public Facilities) In the event that the Undertaker installs new public facilities or public facilities substituting for existing facilities for undertaking the Development Project of the Development Promotion District, Article 65 and Article 99 of the Act on the Plan and Use of National Territory shall apply mutatis mutandis to an attribution of such new public facilities or substituting public facilities. In this case, the Undertaker falling under subsections 3 and 4 of Section of Article 13 shall be deemed as an Undertaker of an administrative agency.

Article 21 (Designation, etc. of Investment Promotion District for a New Development Region) The Minister may designate the region requiring investment promotion and support for regional industry and newly entering companies in accordance with the Comprehensive Development Plan as the Investment Promotion District for a New Development Region (hereafter referred to as "Investment Promotion District") at the request of a Do governor.

In the event of requesting a designation of an Investment Promotion District, a Do governor shall prepare an investment plan for the Investment Promotion District, (hereafter referred to as the "Investment Plan") and hear an opinion of the Minister of Knowledge and the Economy and submit such Investment Plan to the Minister. The Investment Plan shall include the following subsections:

1. Name, location, and area of the Investment Promotion District;

2. Purpose for designation of Investment Promotion District and its implementation period;

3. Investment target, attraction of corporate investment and supporting plan;

4. Plan for installing medical, educational and welfare facilities (if necessary);

5. Plan for installing main infrastructure (if necessary);

6. Plan for providing financial resources and a yearly investment plan;

7. Matters relating to regional specialization plans (if necessary);

8. Other matters as prescribed by the Presidential Decree. Sections through of Article 8, Article 9 and Article 11 shall apply mutatis mutandis to any case of designation, change, suggestion of designation and cancellation of an Investment Promotion District.

Chapter 4 New Development Region Committee, etc.

Article 22 (Installation of New Development Region Committee) The Minister shall establish a New Development Region Committee (hereafter referred to as the "Committee") belonging to the Prime Minister in order to deliberate important policies for the development and investment promotion of the New Development Region. Article 23 (Matters To Be Deliberated by the Committee) The Committee shall deliberate any of the following subsections:

1. Matter relating to the designation and change of a Comprehensive Development Zone under Article 5;

2. Matter relating to the designation and change of a Development Promotion District under Article 8;

3. Matter relating to the designation and change of an Investment Promotion District under Article 21;

4. Matter relating to the coordination of a policy for the Development Project and Investment Promotion of a Comprehensive Development Zone;

5. Matter relating to the financial support necessary for undertaking the Development Project and Investment Promotion;

6. Other necessary matters determined by the Committee relating to the development of the New Development Region.

Article 24 (Constitution and Operation of the Committee) The Committee shall consist of less than 30 members, including one chairman.

The chairman shall be assumed by the Prime Minister and the vice chairman shall be assumed by the Minister of Planning and Finance and the Minister. Any persons falling under any of the following subsections shall become members (Amended by Act No. 9629, Apr. 22, 2009):

1. Government delegate: The head of the concerned administrative agency as prescribed by the Presidential Decree, the head of the Presidential Committee of Balanced National Development and the concerned Do governor;

2. Private delegate: Individuals appointed by the Prime Minister among those who have the knowledge and experience necessary for the development and investment promotion of the New Development Region.

The chairman may make the head of the concerned administrative agencies or the heads of the concerned local governments relating to the issues raised to the Committee participate and give their opinions in the meetings. The term of the membership pursuant to Section of Article 2 shall be 2 years and may be renewed.

Necessary matters regarding the constitution and operation of the Committee and other necessary matters other than those provided in this Act shall be prescribed by the Presidential Decree.

Article 25 (Chairman) The chairman shall represent the Committee and control the Committee's affairs as a whole.

In the event that the chairman is unable to conduct his/her job for an inevitable reason, the vice chairman appointed in advance by the chairman shall vicariously conduct the function of the chairman.

Chapter 5 Support for the Undertaker and Newly Entering Enterprises Article 26 (Exemption of Taxes) In case of being necessary for the smooth implementation of the Development Project for a Development Promotion District, the state and a local government may reduce or exempt such taxes as corporate tax, income tax, customs duties, comprehensive property tax, value added tax, acquisition tax, registration tax, and property tax etc. as prescribed by tax-related acts, such as the Restriction of Special Taxation Act and Local Tax Act, etc. for the Undertaker of a Development Promotion District.

The state and local government may reduce or exempt such taxes as corporate tax, income tax, customs duties, comprehensive property tax, value added tax, acquisition tax, registration tax, and property tax as prescribed by tax-related acts, such as the Restriction of Special Taxation Act and Local Tax Act, etc. for domestic and foreign new enterprises, (hereafter referred to as "New Enterprises'), which move into a Development Promotion District and/or an Investment Promotion District. Article 27 (Exemption of Charges) In the event of being necessary for the smooth implementation of the Development Project for a Development Promotion District, the state and local government may reduce or exempt, for the Undertaker, such charges as development charges, farmland preservation charges, substituted grassland formation charges and substituting forest resource charges as prescribed by the Act on the Restitution of Development Gains, the Farmland Act, the Grassland Act and the Mountainous District Management Act.

Article 28 (Funding for New Enterprises) The state and local government may provide a loan for purchasing land, reduce exempt rents for land, etc. and provide support for other financial needs for the Development Project to New Enterprises which move into a Development Promotion District and/or an Investment Promotion District. The state and local government may provide funds necessary for installing convenience facilities, such as medical establishments, education facilities, etc. to the Undertaker and New Enterprises of a Development Promotion District and/or New Enterprises of an Investment Promotion District.

Article 29 (Debt Guarantee) Where the Undertaker of a Development Promotion District signed a financial agreement with a financial institution under a resolution of its local council, a local government may guarantee part of the debt to the financial institution in respect of the Development Project. Article 13 of the Local Finance Act shall apply mutatis mutandis to the procedures and methods in respect of debt guarantees under Section . Article 30 (Support for Infrastructure and Subsidies, etc.) For the sake of the Development Project and Investment Attraction, the state or local government and the persons, who supplies the facilities, may provide infrastructure, such as ports, roads, irrigation channels, railroads, communications, and electricity, etc. Notwithstanding any differential rates for subsidies under Article 10 of the Act on the Budget and Management of Subsidies and the subsidy rates in accordance with other laws and regulations, the state subsidy for a project conducted by a local government under Section may be increased and/or supported in accordance with subsidy rates as prescribed by the Presidential Decree.

The Minister of Culture, Sports, and Tourism may loan or support a tourism promotion development fund to the local government or the Undertaker under the Tourism Promotion Development Fund Act in order to construct infrastructure for developing a tourism industry or drive a tourism publicity project in a Development Promotion District and/or an Investment Promotion District. Article 31 (Lease or Sale of State & Publicly Owned Properties) Notwithstanding the State Properties Act and the Act on the Management of Public Properties and Articles, the state or local government may enable New Enterprises, which move into an Investment Promotion District, to use and make benefit of state & publicly owned properties, or lease or sell to those New Enterprises (hereafter referred to as "Lease") free of charge. In the event that New Enterprises fail to use the state & publicly owned properties within a period as prescribed by the Presidential Decree in entering into Lease or sales contract under Section , the state or local government may cancel the contract. In the event of Leasing state & publicly owned properties under Section , the Lease period may be determined within a 50-year period, notwithstanding Section of Article 27 and Section of Article 36 in the State Properties Act and Section of Article 21 and Section of Article 31 in the Act on the Management of Public Properties and Articles. In this case, the Lease period may be renewed to cover a period not exceeding 50 years per renewal.

In the event of Leasing land in the possession of the state or local government under Section , the Undertaker may build factories and/or other permanent facilities on the land, notwithstanding Section of Article 24 in the State Properties Act and Article 13 of the Act on the Management of Public Properties and Articles. In this case, the state or local government shall place a condition stipulating that the Undertaker must donate or return such factories and/or other permanent facilities to the state or local government or restore the area to its original state at the end of the period in consideration of the types of the facilities, etc.

Notwithstanding Section of Article 25 and Article 25-2 in the State Properties Act, (including a case of an application of mutatis mutandis under Article 38 of the State Properties Act), and Section of Article 22, Article 23, Article 32 and Article 38 of the Act on the Management of Public Properties and Articles, regarding the rents for state & publicly owned properties Leased under Section 1, the rents of state-owned properties may be reduced or exempted as prescribed by the Presidential Decree and those of publicly owned properties as prescribed by Municipal Ordinance. Chapter 6. Support for Investment Promotion and

Improvement of the Settlement Environment, etc.

Article 32 (Priority for Designation of a Lease-only Industrial Complex) In order to attract private investment, the state or local government may make the Undertaker falling under subsections 1 through 4 of Section of Article 13 designate a part of a Development Promotion District as a Lease-only Industrial Complex pursuant to Article 46-6 of the Act on Industrial Sites and Development. Article 33 (Priority for the Recruitment of Local Residents) The Undertaker and New Enterprises of a Development Promotion District and New Enterprises of an Investment Promotion District may hire relocators under an implementation of the project and local residents inside the Comprehensive Development Zone. Article 34 (Support for Educational, Cultural & Tourism Facilities) The head of a concerned administrative agency shall first take the step of installing or attracting cultural facilities, including any kinds of school, literary centers, libraries and museums, etc, tourism facilities, accommodation facilities, leisure facilities and sports facilities, (hereafter referred to as "Educational, Cultural, and Tourism Facilities"), in accordance with the Comprehensive Development Plan.

Authorization and Permits, etc. shall be issued to any persons who attempt to install Educational, Cultural, and Tourism Facilities in the Comprehensive Development Zone under Section or transfer to the Educational, Cultural, and Tourism Facilities. Article 35 (Special Provision for the Installation of Schools and Medical Facilities) In the event that the Undertaker attempts to install a private school to nurture human resources and improve education conditions within the Development Promotion District in accordance with the Development Plan, Article 35 of the Special Act on the Development of Corporate Cities shall apply mutatis mutandis. In the event that the Undertaker seeks to be granted an application of a special provision on school and curriculum for the cultivation of human resources and the improvement of education conditions, which are suitable for the characteristics of a Comprehensive Development Zone within the Development Promotion District, Article 36 of the Special Act on the Development of Corporate Cities shall apply mutatis mutandis.

In the event that the Undertaker attempts to install and/or operate medical establishments to secure medical based facilities in accordance with the Development Plan within the Development Promotion District, Article 37 of the Special Act on the Development of Corporate Cities shall apply mutatis mutandis. Article 36 (Special Provision for the Supply of Houses) In the event that New Enterprises attempt to build houses for their employees or newly established educational institutions attempt to construct houses for teachers and other workers or newly established medical establishments attempt to construct houses for their doctors, nurses and other workers, the Undertaker may first provide the land formed for building houses. In the event of providing houses to the employees of New Enterprises within the Comprehensive Development Zone or the teachers, doctors, nurses and other workers of the newly established educational institutions and medical establishments, the Undertaker may first provide houses, notwithstanding Article 38 of the Housing Act. To any persons to be first provided for under Section , a fund for purchasing a house or a fund for security money for a lease on a deposit basis may be loaned from a national housing fund.

Chapter 7 Supplementary Provisions

Article 37 (Basic Survey, etc.) In order to conduct the designation of Comprehensive Development Zone and establishment of Comprehensive Development Plan under Article 5, the designation of Development Promotion District and establishment of Development Plan under Article 8 or the establishment of Implementation Plan under Article 14, the state, a Do governor, or the Undertaker may conduct a basic survey regarding the population, economy, land use, architecture, structure, and other necessary matters as prescribed by the Presidential Decree. Any person who attempt to conduct a basic survey under Section may ask the head of the concerned administrative agency, local government, or public organization under the Act on the Operation of Public Institutions, or other relevant organizations to submit the necessary documents. In this case, the heads of the organizations that are requested to provide the documents shall accept such a request without justifiable reason. Article 38 (Entry and Exit to Land, etc.) In the event it is deemed necessary for a basic survey pursuant to Article 37, the state, a Do governor, or the Undertaker may enter and exit other people's land or temporarily use other people's land as an article stacking yard or a provisional road, and change or remove bamboo, soilstones and any other obstacles.

Sections through 9 of Article 130, Article 131 and subsections 2 and 3 of Section of Article 144 in the Act on the Plan and Use of National Territory shall apply mutatis mutandis to cases under Section . In this case, "the Undertaker of an Urban Planning Project" shall be regarded as "the state, a Do governor, or the Undertaker." Article 39 (Measures for Stability of Real Property Prices and Prevention of Reckless Development) The Minister, a Do governor, and a mayor or the head of the Gun shall take all necessary steps to stabilize the prices of real estate and prevent reckless development in a Comprehensive Development Zone.

The Minister and a Do governor shall request the head of the concerned administrative agency to take steps falling under any of the following subsections in the regions where there is a concern that real estate speculation or the sudden rise of real estate prices is likely to result from a designation of a Comprehensive Development Zone:

1. Designation of the Designated Region under Section of Article 104-2 in the Income Tax Act;

2. Designation of a Speculation-Watch Zone under Article 41 of the Housing Act;

3. Designation of Land Transaction Permit Zones Regarding Land Transaction Contracts under Article 117 of the Act on the Plan and Use of National Territory;

4. Other necessary steps for stabilizing the prices of real estate. In order to prevent the reckless development of regions in the vicinity of a Comprehensive Development Zone, a Do governor shall take all necessary steps, such as the change etc. of the urban control plan under Article 30 of the Act on the Plan and Use of National Territory.

Article 40 (Supervision) In the event that the Undertaker under this Act falls under any of the following subsections, a Do governor may cancel the authorization, approval, permit, registration, or designation pursuant the Act, or suspend the validity, stop the work, give an order of the alteration, change, transfer or removal of architecture and/or structures, or make the Undertaker take other necessary steps:

1. When authorization, approval, permits, registration, or designation is obtained in a deceit or unlawful way;

2. When the continuous performing the Development Project is deemed impossible or likely to hurt the public interest due to a change of circumstances;

3. When breaching this Act or an order or disposition hereto; In the event of making a disposition pursuant to Section , a Do governor shall place a public notice in his/her provincial gazette.

Article 41 (Delegation of Powers) The Minister may delegate part of his/her powers under this Act to a Do governor or a mayor or the head of the Gun. Chapter 8 Penal Provisions

Article 42 (Penal Provision) Anyone who falls under any of the following subsections shall be punished by an imprisonment for not more than 5 years or by a fine not exceeding 50 million:

1. Any person who suggests under Article 9 to designate or change a Development Promotion District under Article 8 in a deceit or other unlawful way;

2. Any person who performs the construction of architecture and installs structures, etc. in a Development Promotion District without obtaining a permit in violation of Section of Article 12,;

3. Any person who obtains approval or approval of change for the Implementation Plan under Article 14 in a deceit or other unlawful way;

4. Any person who conducts the Development Project without obtaining approval or approval of change for the Implementation Plan under Article 14. Article 43 (Joint Penal Provisions) Where the representative of a juristic person or the juristic person itself, or an individual's agent, servant, or other employees commit offenses under Article 42 in connection with the work of such a juristic person or individual, the juristic person or individual shall also be punished by a fine as prescribed in the corresponding provisions in addition to a punishment for the offender, provided that, in the event that the juristic person or individual is not negligent in paying considerable attention and supervision in order to prevent such offenses, the same shall not apply. Article 44 (Fine for Negligence) Any person who fails to deliver the order of a Do governor pursuant to Section of Article 40 shall be punished by a fine for negligence not exceeding 30 million won.

The fine for negligence under Section shall be imposed and collected by a Do governor as prescribed by Ordinance of the Do.

Any person who is dissatisfied with a disposition of a fine for negligence under Section may make an objection to the Do governor within thirty days of the date of the receipt of such a disposition.

Where a person who has been given a disposition of a fine for negligence pursuant to Section makes an objection pursuant to Section , the Do governor shall immediately notify the competent court of the fact and the court which has received the notification shall bring a hearing on the fine for negligence under the Non-Contentious Case Litigation Procedure Act.

Where no objections are made and no fine for negligence is paid within the period referred to in Section , the fine shall be collected in accordance with the example of dispositions on a default of local taxes.

Addenda (Coastal Management Act) Article 1(Enforcement Date) This Act shall enter into force one year after the date of its promulgation.

Articles 2 through 9; omitted

Article 10 (Revision of Other Acts) Sections through : Omitted. Part of the Special Act on the Investment Promotion for Nurturing a New Development Region shall be revised as follows;

The "Establishment of the Comprehensive Coastal Management Plan under Article 5, Establishment of the Coastal Management Region Plan under Article 8, the Comprehensive Coastal Management Plan under Article 10, Coastal Management Act " in the provisions of Article 10, Section shall be revised as "Establishment of the Comprehensive Coastal Management Plan under Article 6, Establishment of the Coastal Management Region Plan under Article 9, and the Comprehensive Coastal Management Plan under Article 12 of the Coastal Management Act," respectively. Sections through : Omitted

Article 11: Omitted

Addenda (Special Act on Balanced National Development)

Article 1(Enforcement Date) This Act shall enter into force on the date of its promulgation.

Articles 2 through 5; Omitted

Article 6 (Revision of Other Acts) Sections through : Omitted. Part of the Special Act on the Investment Promotion for Nurturing a New Development Region shall be amended as follows;

The "subsection of Article 2 in the Special Act on Balanced National Development shall be amended as subsections and of Article 2 in the Special Act on Balanced National Development.

Sections through <16>: Omitted

Article 7: Omitted.