Industrial Innovation Statute Article 46-1

Where the owner of a plot of land in an industrial park developed and established by the central competent authority or a special municipality or county (city) competent authority has kept the land idle for a certain consecutive period without good reasons, and the land is in a condition set forth in the criteria for identifying idle land prescribed by the central competent authority, the central competent authority may designate such land as idle, and notify the land owner and the interested parties that a building/buildings has/have to be constructed on the land for use in accordance with the laws in two years, unless the land is subject to any contract between the land owner and a competent authority or is to be disposed of in accordance with the applicable regulations. The competent authority may at any time provide counseling to such a landowner and the interested parties on how to construct buildings on the land for use within the given time limit.Where the competent authority orders the construction of buildings for use within the time limit pursuant to the preceding paragraph, the competent authority shall request the land registration agency to add a note to the registration of such buildings indicating such a requirement. The requirement shall be valid for two years. If title to the land is transferred to another within the two years, the requirement shall be assumed by the successor to the title. The two-year period shall be reduced by the number of the days in which the requirement is suspended for causes not attributable to the land owner, and may be extended if requested by the landowner for good reasons.Where a building has been constructed on a plot of land and used within the period under the preceding two paragraphs in accordance with the law, the competent authority shall request the land registration agency to cancel the note. Where no building is constructed on such a plot of land in the given time limit, the competent authority may fine the landowner with an amount of up to ten percent of the assessed then current value of the idle land and order the land owner to propose a correction plan within one month. Upon receipt of the correction plan, the competent authority may notify the land owner for consultation. The landowner shall complete the consultation within one month of receipt of the notice from the competent authority. To promote use of the land in industrial parks in line with the legislative purposes and development of national economy, and prevent land hoarding from harming public interests, if a landowner fails to propose an correction plan or complete consultation with the competent authority within the given time limit, the authority may decide in writing that the idle land shall be put up for open compulsory auction after a reasonable price is set on the basis of an appraised market price.The competent authority shall request branch offices of the Administrative Enforcement Agency of the Ministry of Justice to conduct the compulsory auction under the preceding paragraph. Unless otherwise specified in this article, the auction procedures under the Administrative Enforcement Act shall apply mutatis mutandis to the auction under this article.If all the bids for a plot of idle land subject to compulsory auction under the preceding two paragraphs are deemed invalid; the highest bid from the bidders is lower than the reasonable price set on the basis of the appraised market price; any other auction requirements are not met, the land shall not be auctioned off.In the event of a situation described in the preceding paragraph, the competent authority may request that another auction for the same or another reasonable price be held in accordance with the preceding three paragraphs.As soon as a plot of land is auctioned off, there shall be no preferential right to purchase the land under the Land Act or other laws or regulations, and the competent branch office of the Administrative Enforcement Agency of the Ministry of Justice shall ask the land registration agency to cancel or remove all the noted requirements for, encumbrances, restraints or leasehold on the land before the land is delivered to the winner of the auction. If the competent authority considers it unnecessary to continue the auction procedure, it may withdraw its request to the competent branch office of the Administrative Enforcement Agency of the Ministry of Justice for the auction, and request the land registration agency to cancel the noted requirement.The regulations governing the criteria for defining idle land and land having been used to construct buildings, public announcements, notices, reduction of the time limit for non-attributable causes, reasons supporting request for extension of the time limit, matters noted as requested by the competent authorities, the methods, procedures, and guidelines for deciding appraised market prices, qualifications for bidders for compulsory auction, and the terms for using land acquired under the preceding seven paragraphs shall be prescribed by the central competent authorities.