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SEOUL METROPOLITAN GOVERNMENT ENFORCEMENT RULE OF THE ORDINANCE ON VALUE ENHANCEMENT OF HANOK AND OTHER ARCHITECTURAL ASSETS

SEOUL METROPOLITAN GOVERNMENT ENFORCEMENT RULE OF THE ORDINANCE ON VALUE ENHANCEMENT OF HANOK AND OTHER ARCHITECTURAL ASSETS

Article 1 (Purpose) The purpose of this Rule is to provide for the matters mandated by the Seoul Metropolitan Government Ordinance on Value Enhancement of Hanok and Other Architectural Assets and those necessary for the enforcement thereof.

Article 2 (Exceptional Architectural Assets Eligible for Subsidies or Loans and Terms and Conditions of Loans) (1) The exterior and interior structures subject to a subsidy or a loan under Article 7 (4) of the Seoul Metropolitan Government Ordinance on Value Enhancement of Hanok and Other Architectural Assets (hereinafter referred to as the "Ordinance") shall be categorized as follows:
1. Exteriors (eligible for a subsidy): The exterior of buildings, such as roofs, outer walls, fences, and windows;
2. Interiors (eligible for a loan): The interior of buildings, such as a living room, toilet, and staircase, which do not fall under subparagraph 1.
(2) A loan extended under Article 7 (4) of the Ordinance shall be interest-free and repaid in equal installments over ten years after a three-year grace period; and the person who takes out a loan shall bear the associated fees to be paid to a financial institution, which shall be determined by agreement between the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") and the entrusted financial institution.
(3) Matters regarding payment and repayment of loans, other than those prescribed by the Ordinance or this Rule, shall be governed by the credit regulations of the financial institution entrusted with business affairs under Article 19.

Article 3 (Grounds for Providing Subsidy for Exceptional Architectural Assets before Completion of Construction) In any of the following cases, a subsidy may be provided before the completion of construction under the proviso of Article 8 (1) of the Ordinance:
1. Where a report on commencement of construction, the period of which is at least three months, is filed: Payment of up to 1/3 of the subsidy determined, before the completion of the construction project;
2. Where the progress in the construction project is at least 80 percent and the Mayor deems it necessary: Payment of an amount not to exceed the allotted subsidy.

Article 4 (Application for Subsidy for Exceptional Architectural Assets) (1) A person intending to apply for a subsidy for exceptional architectural assets under Article 9 (1) of the Ordinance shall file an application for subsidy or loan (change) in attached Form 1 with the head of an autonomous Gu having jurisdiction over the relevant location (hereinafter referred to as "head of a Gu") before construction commences. In such cases, the same shall apply to any change in the construction plan.
(2) Upon receipt of an application for subsidy or loan (change) under paragraph (1), the head of a Gu shall review its appropriateness based on the relevant drawings, documents, and applicable regulations and submit the application to the Mayor.
(3) In order for an excellent architectural asset to be eligible for financial support, 10 years shall have elapsed since the date a previous subsidy or loan was received under Article 7 (3) of the Ordinance.

Article 5 (Reporting on Commencement of Construction of Exceptional Architectural Assets) (1) A person notified of the Mayor's determination to provide a financial support for exceptional architectural assets under Article 9 (2) of the Ordinance (hereinafter referred to as "person eligible for support for exceptional architectural assets") shall submit a report on the commencement of construction of exceptional architectural assets in attached Form 2 to the head of the competent Gu before commencement thereof.
(2) Upon receipt of a commencement report under paragraph (1), the head of the Gu shall review the report and submit such report to the Mayor.
(3) Notwithstanding paragraphs (1) and (2), a report on the commencement of construction of exceptional architectural assets is not required where a report on the commencement of construction under Article 21 of the Building Act is filed. In such cases, the head of the Gu shall notify the Mayor as to how the latter commencement report was handled.

Article 6 (Reporting on Completion of Construction of Exceptional Architectural Assets) (1) Upon completion of construction, a person eligible for support for exceptional architectural assets shall submit a report on completion of construction of exceptional architectural assets using attached Form 3 to the head of the competent Gu.
(2) Upon receipt of a completion report under paragraph (1), the head of the Gu shall verify whether the report conforms to the deliberations held by by the Expert Committee on Architectural Assets in Seoul Metropolitan City under Article 27 (1) of the Ordinance (hereinafter referred to as the "Expert Committee") through review of the relevant documents and on-site inspection and submit to the Mayor such report, accompanied by his or her review opinions.
(3) Upon receipt of a completion report and review opinions under paragraph (2), the Mayor shall determine the amount of a subsidy or a loan to be provided, following deliberation by the Expert Committee, and shall provide notice of the results to the person eligible for support for exceptional architectural assets.

Article 7 (Registration of Hanoks) (1) A person intending file an application for registration of a Hanok under Article 16 (1) of the Ordinance shall submit to the head of the competent Gu an application for registration of a Hanok in attached Form 4 and required documents.
(2) Upon receipt of an application for registration of a Hanok under paragraph (1), the head of the Gu shall review the public register of the relevant Hanok, etc. and submit to the Mayor such application, accompanied by his or her opinions.
(3) Upon receipt of an application and opinions under paragraph (2), the Mayor shall determine whether to approve registration under Article 16 (2) of the Ordinance and issue to the applicant a certificate of registration of a Hanok using attached Form 5.

Article 8 (Verification of Registered Hanoks) (1) Where a certificate of registration of a Hanok is issued under Article 7 (3), the Mayor shall prepare and manage a ledger for registered Hanoks using attached Form 6; and may conduct on-site verification where deemed necessary for preserving the relevant registered Hanok.
(2) The Mayor may cancel the registration of a Hanok deemed to be unworthy of preservation, upon verification under paragraph (1), after deliberation by the Expert Committee. In such cases, the owner of the relevant Hanok shall be notified of such fact.

Article 9 (Validity of Registration of Hanoks) (1) The period of validity of the registration of a Hanok prescribed by rule under Article 17 (1) 3 of the Ordinance shall be as follows:
1. Where a subsidy or a loan prescribed in Article 21 of the Ordinance is not granted after registration: Until the date a person holding ownership of the Hanok or the project owner defined in subparagraph 12 of Article 2 of the Building Act (hereinafter referred to as "owner, etc. of the Hanok") makes a request for the revocation of registration of the relevant Hanok or until the Hanok is demolished or destroyed;
2. Where the period specified in Article 17 (1) 1 or 2 of the Ordinance has elapsed: Until the owner, etc. of the relevant Hanok makes a request for the revocation of registration of the relevant Hanok or until the Hanok is demolished or destroyed;
3. Where a Hanok falling under Article 17 (1) 1 or 2 of the Ordinance has been collapsed or destroyed due to a force majeure event, such as a natural disaster, without passing the period of validity: Until the relevant Hanok is collapsed or destroyed.
(2) "A document stating the inheritance of rights and obligations prescribed by rule" in Article 17 (2) of the Ordinance means attached Form 7.

Article 10 (Standards for Exteriors and Interiors of Hanoks) (1) Detailed standards for the exteriors and interiors of a Hanok under Article 21 (2) of the Ordinance shall be as specified in the attached Table.
(2) The Mayor may not apply some of the standards, where the Expert Committee deems it impracticable to apply the standards specified in the attached Table due to natural or artificial conditions or other special circumstances.

Article 11 (Terms and Conditions of Loans for Repairing Hanoks) (1) A loan for repairing a Hanok (including the construction and major repairs of a building under Article 2 of the Building Act, for the purposes of remodeling it into a Hanok; hereinafter the same shall apply) in accordance with Article 21 (2) of the Ordinance shall be interest-free and repaid in equal installments over 10 years after a three-year grace period; and the person who takes out a loan shall bear the associated fees to be paid to a financial institution, which shall be determined by agreement between the Mayor and the entrusted financial institution.
(2) The date of repayment of a loan referred to in paragraph (1) shall be the last day of each quarter: Provided, That it shall be December 20th in the case of each fourth quarter.
(3) Matters regarding payment and repayment of loans, except as provided in the Ordinance or this Rule, shall be governed by the credit regulations of financial institutions entrusted with business affairs under Article 19.

Article 12 (Application for Subsidy or Loan for Repairing Hanoks) (1) The owner, etc. of a Hanok intending to receive a subsidy or loan to cover expenses incurred in repairing the Hanok under Article 22 (1) of the Ordinance shall submit an application in any of the following forms to the head of the competent Gu before commencing the relevant construction work. In such cases, the same shall apply to any change thereto:
1. Application for a subsidy or a loan for repairing a Hanok (excluding cases where the roof is only partially repaired): Attached Form 9 of the Enforcement Rule of the Act on Value Enhancement of Hanok and Other Architectural Assets;
2. Application for a subsidy for partial repairs of the roof of a Hanok (including an application for change): Attached Form 8;
3. Application for a loan relating to the Hanok building style: Attached Form 1.
(2) Upon receipt of an application under paragraph (1), the head of the Gu shall review drawings, relevant documents, and applicable regulations, and submit the application to the Mayor.
(3) No person who has filed an application for a subsidy or a loan for repairing a Hanok shall commence construction, such as repairs, before receiving a notice under Article 22 (2) of the Ordinance.

Article 13 (Reporting on Commencement of Repair of Hanoks) (1) A person notified of a determination to provide a subsidy or a loan for repairing a Hanok (hereinafter referred to as "person eligible for support for Hanoks") shall submit a report on the commencement of repair of a Hanok in attached Form 9 to the head of the competent Gu before commencement thereof.
(2) Upon receipt of a commencement report under paragraph (1), the head of the Gu shall review the report and submit it to the Mayor.
(3) Notwithstanding paragraphs (1) and (2), a report on the commencement of repair of a Hanok is not required where a report on the commencement of construction under Article 21 of the Building Act is filed. In such cases, the head of the Gu shall notify the Mayor as to how the latter commencement report was handled.

Article 14 (On-Site Inspection on Repair of Hanoks) (1) The Mayor and head of a Gu may order a public official under his or her control to conduct an on-site inspection to verify whether the repair of a Hanok, commencement of which has been reported on under Article 13, is in compliance with the standards specified in Article 10.
(2) Where necessary for preserving Hanoks, the Mayor may provide guidance and advice to persons eligible for support for Hanoks or to Hanok repair business entities.

Article 15 (Reporting on Completion of Repair of Hanoks) (1) Upon completion of the repair of a Hanok, a person eligible for support for a Hanok shall submit to the head of the competent Gu a report on completion of repair of Hanok in attached Form 10.
(2) Upon receipt of a completion report under paragraph (1), the head of the Gu shall verify its compliance with the standards prescribed in Article 10 through review of the relevant documents and on-site inspection and shall submit to the Mayor such report, accompanied by his or her review opinions. In such cases, the head of the Gu may conduct on-site inspections, jointly with Hanok experts, where deemed necessary.
(3) Upon receipt of a completion report and review opinions under paragraph (2), the Mayor shall determine the amount of a subsidy, after deliberation by the Expert Committee, and notify the person eligible for support for a Hanok of the results thereof.

Article 16 (Grounds for Providing Subsidies for Repairing Hanoks before Completion of Construction) In any of the following cases, a subsidy may be granted prior to the completion of construction under the proviso of Article 23 (1) of the Ordinance:
1. Where a report on commencement of the repair, the period of which is at least three months, is filed: Payment of up to 1/3 of the subsidy determined, before the completion of the construction project;
2. Where the progress in the repair of a Hanok is at least 80 percent and the Mayor deems it necessary: Payment of an amount not to exceed the allotted subsidy.

Article 17 (Restoration after Revocation of Determination to Provide Subsidy or Loan for Repairing Hanoks) Before such measures as restoration under Article 24 (2) of the Ordinance are taken, the Expert Committee shall undertake consultation on whether it is impracticable to achieve the original purposes of the project.

Article 18 (Scope of Inspection) The scope of an inspection on exceptional architectural assets and registered Hanoks under Article 33 (2) of the Ordinance includes whether they have been demolished or destroyed and whether such requirements as maintenance of the horizontal facade and continuation of the intended uses at the time a subsidy was granted remain satisfied.

Article 19 (Entrustment of Business Affairs) The Mayor may entrust a financial institution with the following business affairs regarding loans under Article 34 of the Ordinance:
1. Extension of a loan under Articles 7 and 21 of the Ordinance and withdrawal under Articles 10 and 24 of the same Ordinance;
2. Business affairs regarding preservation of claims against loans.

ADDENDA <Ordinance No. 4225, May 17, 2018>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on July 5, 2018.
Article 2 (General Transitional Measures)
Any determination made, support provided, or other acts done under the previous Seoul Metropolitan Government Enforcement Rule of the Ordinance on Value Enhancement of Hanok and Other Architectural Assets and the previous Seoul Metropolitan Government Enforcement Rule of the Ordinance on Preservation and Promotion of Hanoks before this Ordinance enters into force shall be deemed made, provided, or done, respectively, under the provisions of this Rule corresponding thereto.
Article 3 (Repeal of Other Rules)
The Seoul Metropolitan Government Enforcement Rule of the Ordinance on Preservation and Promotion of Hanoks shall be repealed.
Article 4 Omitted.

- Table 1 (Standards for Repairing Hanok (pursuant to Article 10))

- Form 1 (Application for Subsidy or Loan (Change) (pursuant to Articles 4 (1) and 12 (1)))

- Form 2 (Report on Commencement of Construction of Exceptional Architectural Assets (pursuant to Article 5 (1)))

- Form 3 (Report on Completion of Construction of Exceptional Architectural Assets (pursuant to Article 6 (1)))

- Form 4 (Application for Registration of Hanok (pursuant to Article 7 (1)))

- Form 5 (Certificate of Registration of Hanok (pursuant to Article 7 (3)))

- Form 6 (Management Ledger for Registered Hanoks (pursuant to Article 8 (1)))

- Form 7 (Certificate of Succession of Rights and Obligations (pursuant to Article 9 (2)))

- Form 8 (Application for Subsidy for Partial Repair of Hanok Roof (Change) (pursuant to Article 12 (1)))

- Form 9 (Report on Commencement of Repair of Hanok (pursuant to Article 13 (1)))

- Form 10 (Report on Completion of Repair of Hanok (pursuant to Article 15 (1)))