Reasons for Proposal
While the current Act was legislated in 1982 to encourage a proper allocation of populations and industries concentrated too much into the Seoul Metropolitan Area to readjust and develop the Seoul Metropolitan Area in an orderly and balanced manner, unilateral policies to restrict overcrowding in the Seoul Metropolitan Area for 37 years under the current Act have caused excessive regulatory cost and weakened competitiveness in the Seoul Metropolitan Area, a key to the country’s national competitiveness.
In particular, other regulations for national security or drinking water sources also apply to some parts of the Seoul Metropolitan Area in addition to those under the current Act, which have fallen behind as underdeveloped areas for a long time and deteriorated their residents’ quality of life.
In addition, while the government tried to introduce a readjustment development district program that deregulates the Seoul Metropolitan Area in connection with the construction of the Multifunctional Administrative City in 2005 and balanced regional development policies such as relocating public institutions to rural areas, the introduction of the readjustment development district program is being delayed as opposed to other balanced regional development policies that are going well, which deepens a sense of alienation among residents in the Seoul Metropolitan Area.
In this regard, this Act aims to tackle the issue of rigidity and inflexibility in regulations on the Seoul Metropolitan Area, which were introduced during the country’s development period, by introducing the readjustment development district, which flexibly applies regulations under the current Act to growth promotion areas under the Special Act on Balanced National Development, to systematically manage the Seoul Metropolitan Area, a center of national land and pillar of growth, and prepare the institutional basis to ensure national competitiveness in the face of a low-growth era by strengthening competitiveness in the Seoul Metropolitan Area and systematically managing underdeveloped parts of the Seoul Metropolitan Area.
Details
A. Allow the Minister of Land, Infrastructure and Transport to designate growth promotion areas and areas of special concern under the Special Act on Balanced National Development, returned districts and adjacent areas under the Special Act on Support for Areas, etc. Adjacent to Districts Granted to the United States Armed Forces in Korea, and border areas under the Special Act on Support for Border Area as a readjustment development district after receiving an application from the competent Mayor/Do Governor if planned readjustment is required to enhance competitiveness and the quality of life in the Seoul Metropolitan Area (Article 20-2 newly inserted)
B. Require the Mayor/Do Governor to establish a readjustment development plan, which includes the purposes of readjustment development district designation and the directions in readjustment, in applying for the designation of any readjustment development district, submit the plan to the Minister of Land, Infrastructure and Transport, and seek approval of the plan from the Minister of Land, Infrastructure and Transport within the period prescribed by Presidential Decree when the district is designated as a readjustment development district (Article 20-3 newly inserted)
C. Require the Seoul Metropolitan Area Readjustment Committee to consider the purposes of readjustment development district designation and the directions in readjustment, the effects on local competitiveness and residents’ quality of life, and opinions from the head of any relevant Si/Gun/Gu and residents when reviewing the designation of any readjustment development district or the establishment of the readjustment development plan (Article 20-4 newly inserted)
D. Impose no regulations on the readjustment development district such as restrictions on activities by region and total quantity regulations under the current Act and restrictions on factory construction, expansion, or relocation under the Industrial Cluster Development and Factory Establishment Act as defined by the readjustment development plan (Article 20-5 newly inserted)
E. Allow central and local governments to reduce and/or exempt income tax, corporate tax, acquisition tax, property tax, development charges, farmland preservation charges, and costs incurred in creating substitute grassland for those implementing the project under the readjustment development plan as specified by applicable laws (Article 20-6 newly inserted)
F. Ban the readjustment development district from seeking permission for development activities under the National Land Planning and Utilization Act and permission/reporting for any building or temporary building and reporting for the erection of any structure under the Building Act from the date when the designation of the readjustment development district is notified (Article 20-7 newly inserted)
G. Add the designation and termination of any readjustment development district and the establishment and change of the readjustment development plan to matters reviewed by the Seoul Metropolitan Area Readjustment Committee (Articles 21, paragraph 2, subparagraphs 8 and 9 newly inserted)
