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  • Act on the Development and Management of Logistics Facilities
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-06-04
    • Opinion Submission Deadline : 2021-06-18
Reasons for Proposal

The current Act stipulates that the upper limit of a penalty surcharge in lieu of the suspension of the business of complex logistics terminal operators is ten million won or less; this amendment aims to raise the upper limit of the penalty surcharge to 100 million won or less in consideration of the sales volume of the complex logistics terminal business to enhance equity with similar businesses such as passenger or trucking transport business and railroad business and enhance the effectiveness of the penalty surcharge system. However, the upper limit of a penalty surcharge in lieu of business suspension will be maintained at the current level, considering that in the case of the logistics warehouse business, the business scale is smaller than that of complex logistics terminals and that logistics warehouses for commercial use among storage facilities with a total floor area of at least 1,000 square meters or storage spaces with a total area of at least 4,500 square meters are subject to registration obligations. 

In addition, this amendment aims to prevent confusion and ensure uniformity of law enforcement in the application of the Act by local governments and lay a basis for delegating major executive functions of complex logistics terminal projects, etc., to the heads of agencies belonging to the Ministry of Land, Infrastructure and Transport by reorganizing the provisions applicable mutatis mutandis for the logistics and warehouse business related to the complex logistics terminal business.

Moreover, the current Act imposes both a punishment and a penalty surcharge for one violation when violating the obligation to register changes in the logistics and warehouse business but deletes the punishment provisions for a violation of the obligation to register changes in the complex logistics terminal business, whereas it allows both a punishment and an administrative disposition to be imposed on the relatively small logistics and warehouse business, placing a heavy burden on business operators. Therefore, this amendment aims to delete the punishment provisions for a person who operates a logistics and warehouse business without the registration of changes (Article 18 and Article 21-9).


Major Provisions

Article 18, Article 21-9

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