CHAPTER Ⅰ GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Ordinance is to provide for matters necessary for the management and disposal of land allotted and designated in recompense for development outlay in urban development projects, etc. implemented by the Seoul Metropolitan Government.

Article 2 (Scope of Application) The following lands allotted in recompense for development outlay shall be governed by this Ordinance: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Land allotted in recompense for development outlay and designated pursuant to Article 34 of the Urban Development Act (hereinafter referred to as the "Act") in an urban development project implemented by the Seoul Metropolitan Government; <Amended by Ordinance No. 4834, Jul. 30, 2009>
2. Land allotted in recompense for development outlay and reverted to the Seoul Metropolitan Government's special account for urban development pursuant to the repealed Land Compartmentalization and Rearrangement Projects Act. <Amended by Ordinance No. 4834, Jul. 30, 2009>

CHAPTER Ⅱ SALE OF LAND ALLOTED IN RECOMPENSE FOR DEVELOPMENT OUTLAY Article 3 (Decision to Sell) The Mayor shall sell land allotted in recompense for development outlay and available for sale after substitute land lots in a project district are designated.

Article 4 (Method of Sale) (1) The Mayor shall sell land allotted in recompense for development outlay by general public tender: Provided, That such land may be sold by negotiated contract in any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Where such land falls under any subparagraph of Article 38 (1) of the Enforcement Decree of the Public Property and Commodity Management Act; <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
2. Where the Mayor of the Seoul Metropolitan Government intends to use such land for any official or public purpose;
3. Where such land allotted in recompense for development outlay is sold to an educational foundation under the Private School Act that intends to use it as a site for the establishment of a school under Article 2 of the Elementary and Secondary Education Act on the recommendation of the Superintendent of the Seoul Metropolitan Office of Education; <Amended by Ordinance No. 4834, Jul. 30, 2009>
4. Where such land allotted in recompense for development outlay, on which a building or facility has existed even before designated as an urban development zone, is sold to the owner of such building or facility; <Amended by Ordinance No. 4834, Jul. 30, 2009>
5. Where such land allotted in recompense for development outlay but occupied by an authorized building registered on the building management register or a pre-existing unauthorized building defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Government Ordinance on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents is sold to the owner of such building;
6. Where such land allotted in recompense for development outlay is occupied by a school, factory, company, residential house, or any other facility or is located within the boundary thereof, and thus it is impossible or is considered significantly unreasonable to sell it to any other person; <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) Notwithstanding the proviso to the part other than the subparagraphs of paragraph (1), the Mayor shall sell land allotted in recompense for development outlay by general public tender, if a de facto or litigational dispute has arisen or is likely to arise between conflicting interested parties in connection with the land or if it is considered unreasonable to sell the land by negotiated contract. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 5 (Determination of Sale Price) (1) The expected price of land allotted in recompense for development outlay and sold by general public tender shall be determined by the Mayor based on the market value assessed in accordance with Article 27 (1) of the Enforcement Decree of the Public Property and Commodity Management Act. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
(2) The price of land allotted in recompense for development outlay to be sold by negotiated contract shall be assessed by the Seoul Metropolitan Government Committee for the Deliberation on Public Property under Article 4 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management (hereinafter referred to as the "Deliberative Committee"; referring to a Gu Committee for the Deliberation of Public Property in the case of an autonomous Gu) based on the market value under paragraph (1): Provided, That if land allotted in recompense for development outlay has become subject to a tender publicly notified for the second time pursuant to Article 38 (1) 20 of the Enforcement Decree of the Public Property and Commodity Management Act, but is sold by negotiated contract because there is no bidder or no successful bidder, the expected bidding price under paragraph (1) shall be the price of the land. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(3) Notwithstanding paragraph (2), when the Mayor of the Seoul Metropolitan Government purchases land allotted in recompense for development outlay under subparagraph 2 of Article 2 in order to use it for an official or public purpose, the land may be sold at the officially assessed individual land price without deliberation by the Deliberative Committee. <Newly Inserted by Ordinance No. 4834, Jul. 30, 2009>

Article 6 (Public Announcement of Sale) When the Mayor intends to sell land allotted in recompense for development outlay by general public tender, he/she shall make a public announcement thereof, as provided for in Article 33 of the Enforcement Decree of the Act on Contracts to which a Local Government is a Party. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>

Article 7 (Tender, etc.) (1) The general public tender for the sale of land allotted in recompense for development outlay shall become effective with bids by one or more persons. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) Except as provided for in paragraph (1), matters concerning bidding, the determination of a successful bidder, and the execution of contracts shall be governed by the Act on Contracts to which a Local Government is a Party, the Enforcement Decree of the aforesaid Act, and the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>

Article 8 (Payment of Purchase Price) (1) The purchase price of land allotted in recompense for development outlay shall be paid in a lump sum within 60 days from the execution date of the contract: Provided, That it may be permitted to pay the sale price in installments in any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Where such land falls under Article 36 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management. In such cases, the installment payment period and interest shall be determined in accordance with the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management; <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
2. Where the Seoul Metropolitan Government intends to use such land for an official or public purpose. In such cases, the installment payment period shall not exceed ten years, and the interest rate shall be four percent per annum; <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4834, Jul. 30, 2009>
3. Where an educational foundation under the Private School Act intends to use such land as a site for the establishment of a school under Article 2 of the Elementary and Secondary Education Act on the recommendation of the Superintendent of the Seoul Metropolitan Office of Education. In such cases, the installment payment period shall not exceed ten years, and the interest rate shall be four percent per annum; <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
4. Where such land is sold as a site for a market to an association established by merchants in an area subject to demolition for a public project implemented by the State or a local government. In such cases, the installment payment period shall not exceed five years, and the interest rate shall be six percent per annum; <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4834, Jul. 30, 2009>
5. Where such land allotted in recompense for development outlay as described in Article 4 (1) 4 or 5 is sold. In such cases, the installment payment period shall not exceed five years, and the interest rate shall be six percent per annum; <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4834, Jul. 30, 2009>
(2) As to the imposition and collection of past due charges for a failure to pay the purchase price of land allotted in recompense for development outlay by the payment deadline, Article 80 of the Enforcement Decree of the Public Property and Commodity Management Act shall apply mutatis mutandis. <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
(3) The installment payments under the proviso to the part other than the subparagraphs of paragraph (1) shall be paid in equal installments for the balance remaining after deducting the contract price from the total purchase price. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(4) When the Mayor receives the balance of the purchase price pursuant to paragraph (1), he/she shall prepare data for taxation and notify such to the head of the competent Gu and the head of the competent tax office. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 9 (Sale of Land Allotted in Recompense for Development Outlay but Occupied by Obstacles)(1) (2) When the Mayor intends to sell land allotted in recompense for development outlay at a discount pursuant to paragraph (1), the descriptions of the land allotted in recompense for development outlay, the types and sizes of obstacles, and the discounted amount shall also be indicated in the public announcement of sale under Article 6, and the calculation method of the discounted amount shall be prescribed by the Enforcement Rule. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 10 (Approval for Transfer of Title of Purchaser and Use of Land Allotted in Recompense for Development Outlay) (1) If a purchaser requests the Mayor to permit him/her to transfer his/her title to land allotted in recompense for development outlay after he/she completes the payment of the purchase price and secures a loan from a financial institution or any similar entity by offering the land as security before land substitution is made, the Mayor may approve the transfer. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) A purchaser who intends to request the transfer of title in accordance with paragraph (1) shall submit the written consent of the lending financial institution. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(3) If a purchaser intends to use land allotted in recompense for development outlay after paying one or more installments of the purchase price in accordance with the proviso to the part other than the subparagraphs of Article 8 (1), the Mayor may approve the use. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 11 (Exchange of Land) (1) If it becomes impossible to perform a sales contract for land allotted in recompense for development outlay due to a change in land substitution or any other cause or event subsequent to the execution of the contract, the Mayor may cancel the initial contract and exchange the land with another equivalent land allotted in recompense for development outlay. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) Where land allotted in recompense for development outlay is exchanged with another land pursuant to paragraph (1), the value of the land allotted in recompense for development outlay for which the contract is cancelled shall be determined by its value as at the time the contract is cancelled, while the value of the land allotted in recompense for development outlay and exchanged as a substitute shall be determined by its value as at the time the land is exchanged. In such cases, the difference in the values shall not exceed 25 percent of the value of the more expensive land allotted in recompense for development outlay and shall be settled in cash. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 12 (Cancellation of Contract) (1) The Mayor may cancel a sales contract for land allotted in recompense for development outlay in any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Where it is discovered that the purchaser bought the property by making a false representation, submitting a false evidentiary document, or by other wrongful means; <Amended by Ordinance No. 4834, Jul. 30, 2009>
2. Where the purchaser uses the land allotted in recompense for development outlay for any purpose of use other than the originally designated purpose of use; <Amended by Ordinance No. 4834, Jul. 30, 2009>
3. Where the purchaser submits a release letter before the deadline for the payment of the purchase price;
4. Where the purchaser requests cancellation of the contract on the ground that it is found as a result of actual measurement that the area of the land allotted in recompense for development outlay which has been sold is significantly smaller than that on the cadastral records.
(2) When a contract is cancelled in accordance with paragraph (1), the contract deposit shall escheat to the Seoul Metropolitan Government: Provided, That the foregoing shall not apply to cases where a contract is cancelled on the ground described in paragraph (1) 4. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(3) If a contract is cancelled pursuant to paragraph (1), the Mayor shall notify the manager of the land allotted in recompense for development outlay of such cancellation and notify the other party to the contract of such cancellation and the escheat of the contract deposit. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 13 (Transfer of Ownership) (1) A purchaser shall file an application for the transfer of ownership with the Mayor, along with the following documents, after land substitution is completed for the relevant urban development project: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Bill of sale;
2. Application for grant of power of attorney;
3. Other necessary documents. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) The Mayor shall, upon receipt of an application under paragraph (1), provide the bill of sale and the power of attorney after he/she confirms that the payment is settled: Provided, That the foregoing shall not apply to land allotted in recompense for development outlay, in relation to which a lawsuit is filed. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(3) Notwithstanding paragraph (2), the Mayor may transfer ownership before the purchase price is fully paid, if he/she permits the payment in installments for the purchase price of land allotted in recompense for development outlay. In such cases, the Mayor shall take measures necessary for securing claims, such as establishment of mortgage. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(4) When a bill of sale and a power of attorney are provided pursuant to paragraph (2), the date of payment of the balance shall be deemed the date of sale, and the date of contract shall be deemed the date of the grounds for registration. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(5) All expenses incurred in the transfer of ownership shall be borne by the purchaser. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 14 (Increase and Decrease in Cadastral Records) (1) If any increase or decrease occurs in the cadastral records of land allotted in recompense for development outlay as a result of land substitution, the Mayor shall settle such increase or decrease in accordance with terms and conditions of the relevant sale and purchase contract. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) When the purchase price for an area increased on the cadastral records is settled pursuant to paragraph (1), data for taxation on the increased area shall be served to the head of the competent Gu and the head of the competent tax office. <Amended by Ordinance No. 4834, Jul. 30, 2009>

CHAPTER Ⅲ LEASE, ETC. OF LAND ALLOTTED IN RECOMPENSE FOR DEVELOPMENT OUTLAY Article 15 (Subject Matters of Lease) Notwithstanding Article 3, the Mayor may lease land allotted in recompense for development outlay in any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Land allotted in recompense for development outlay but occupied by an authorized building registered on the building management register;
2. Land allotted in recompense for development outlay but occupied by a pre-existing unauthorized building under subparagraph 1 of Article 2 of the Seoul Metropolitan Government Ordinance on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents; <Amended by Ordinance No. 4167, Dec. 30, 2003; Ordinance No. 4834, Jul. 30, 2009>
3. Land allotted in recompense for development outlay which the State or a local government intends to use for an official or public purpose or for a public interest project;
4. Land allotted in recompense for development outlay, on which an agricultural cooperative or a livestock industry cooperative under Article 2 of the Agricultural Cooperatives Act or a fisheries cooperative under Article 2 of the Fisheries Cooperatives Act files an application with intent to install and operate a direct distribution market in order to stabilize the prices of agricultural, livestock, or fishery products and to improve the distribution system of such products; <Amended by Ordinance No. 4834, Jul. 30, 2009>
5. Land allotted in recompense for development outlay, on which a small and medium enterprise cooperative under Article 3 of the Small and Medium Enterprise Cooperatives Act files an application with intent to install and operate an exhibition and distribution center in order to promote sales of products from small and medium enterprises or to expand the market for such products; <Amended by Ordinance No. 4834, Jul. 30, 2009>
6. Land allotted in recompense for development outlay, on which a corporation established by the Seoul Metropolitan Government pursuant to the Local Public Enterprises Act or a corporation invested or funded by the Seoul Metropolitan Government files an application with intent to use it for business consistent with its purpose of business; <Amended by Ordinance No. 4834, Jul. 30, 2009>
7. Land allotted in recompense for development outlay but not sold by the date on which the completion of the relevant urban development project is publicized and specified by the Enforcement Rule. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 16 (Imposition and Collection of Rents) (1) When the Mayor intends to lease land allotted in recompense for development outlay pursuant to Article 15, he/she shall execute a lease contract and impose and collect rents calculated on the basis of rent rates specified in Article 26 or 32 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
(2) The Mayor may fully or partially exempt a person from rents under paragraph (1) in accordance with the following subparagraphs: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. Full exemption: In any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
(a) Where the land is leased so that it can be used for a project under any item of Article 30 (1) 1 or (2) 1 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management; <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
(b) Where the land is leased so that the State or a local government can use it for an official or public purpose or for a public interest project;
(c) Where the land is leased so that the owner of a public interest facility to be relocated for a project implemented by a local government can use the land in direct relation to the facility during the period required for the relocation;
(d) Where the land is leased with the consent of the Seoul Metropolitan Council so that a public enterprise or corporation established, invested, or funded by the Seoul Metropolitan Government for business consistent with its purpose of business;
2. Partial exemption: Where the land is leased so that it can be used for a project under Article 30 (1) 2 or 3 or (2) 2 or 3 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management at the exemption rate specified by the relevant Ordinance. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>

Article 17 (Imposition and Collection of Indemnities) If a person occupies or uses for profit land allotted in recompense for development outlay without a lease contract, the Mayor shall impose and collect indemnities under Article 81 of the Enforcement Decree of the Public Property and Commodity Management Act and Articles 89 and 90 of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>

Article 18 (Lease Term) The lease term shall correspond to the period during which land allotted in recompense for development outlay is occupied, but a contract shall be made for each year, if the period of occupancy exceeds one year: Provided, That a lease contract may be made for a period not exceeding five years in any of the following cases: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. When the State or a local government intends to use the land for an official or public purpose;
2. When a corporation incorporated pursuant to the Local Public Enterprises Act or the Act on the Management of Public Institutions or the Government Employees Pension Service established pursuant to the Public Officials Pension Act intends to use the land for business consistent with its purpose of business. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 19 (Time to Collect Rent, etc.) (1) Rent shall be imposed and collected for each fiscal year.
(2) Indemnities shall be imposed and collected for each fiscal year not later than the end of February the following year: Provided, That if the land allotted in recompense for development outlay is sold or there are exceptional circumstances, indemnities may be imposed and collected at any time. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 20 (Payment Deadline) The deadline for the payment of rent or an indemnity shall be within 60 days from the day on which the payment notice is delivered: Provided, That if annual rent exceeds 500,000 won, it may be permitted to pay the rent in not more than four installments with a six percent interest rate per annum. <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4834, Jul. 30, 2009>

Article 21 (Methods of Collecting Rent, etc.) (1) When the Mayor intends to collect rent or an indemnity pursuant to Article 16 or 17, he/she shall issue a payment notice. <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4834, Jul. 30, 2009>
(2) If a person fails to pay rent or an indemnity by the payment deadline under Article 20, the Mayor may dispose of such delinquent rent or indemnity according to practices for the collection of local taxes. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 22 (Imposition and Collection of Past Due Charges) If a person fails to pay rent or an indemnity by the payment deadline, the Mayor shall apply Article 80 of the Enforcement Decree of the Public Property and Commodity Management Act to the imposition and collection of past due charges. <Amended by Ordinance No. 4210, Jun. 21, 2004; Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>

Article 23 (Keeping of Management Register) (1) The Mayor shall keep a register for the collection of rent and indemnities. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(2) The Mayor shall conduct on-site inspections on land allotted in recompense for development outlay at least once each year and shall keep records of such inspections. <Amended by Ordinance No. 4834, Jul. 30, 2009>
(3) If the Mayor discovers as a result of an inspection under paragraph (2) that corrective measures are required, he/she shall establish and implement a plan for such corrective measures. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 24 (Trust of Land Allotted in Recompense for Development Outlay) If the Mayor intends to set up a trust for land allotted in recompense for development outlay, he/she shall apply relevant provisions of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management mutatis mutandis to the trust. <Amended by Ordinance No. 4437, Oct. 4, 2006>

Article 25 (Delegation of Authority) (1) The Mayor shall delegate the following administrative affairs concerning the management of land allotted in recompense for development outlay to the head of the Gu having jurisdiction over the location of the land: <Amended by Ordinance No. 4834, Jul. 30, 2009>
1. The keeping and maintenance of records of the management register of land allotted in recompense for development outlay, and the management of each land allotted in recompense for development outlay, such as the prevention of unauthorized occupancy and the removal of obstacles; <Amended by Ordinance No. 4834, Jul. 30, 2009>
2. The sale of land allotted in recompense for development outlay under any provision of Article 4 (1) 4 through 6 (excluding school sites);
3. The leasing of land allotted in recompense for development outlay and the imposition and collection of rent and indemnities: Provided, That a lease under any provision of subparagraphs 3 through 6 of Article 15 shall be excluded herefrom. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>
(2) An amount equivalent to 50 percent of the collected rent from land allotted in recompense for development outlay, the collection of which has been delegated to the head of the competent Gu, an amount equivalent to 40 percent of the collected indemnities, and an amount equivalent to 30 percent of the purchase price received shall belong to the competent autonomous Gu. <Amended by Ordinance No. 4834, Jul. 30, 2009>

Article 26 (Application Mutatis Mutandis) Except as otherwise provided for in this Ordinance, the relevant provisions of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management and the Enforcement Decree of the Public Property and Commodity Management Act shall apply mutatis mutandis to the procedures for sale of land allotted in recompense for development outlay and the imposition and collection of rent or indemnities. <Amended by Ordinance No. 4437, Oct. 4, 2006; Ordinance No. 4834, Jul. 30, 2009>