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National Assembly Legislation

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  • Special bill for social overhead capital (“SOC”) investment in the Gangwon, Chungcheong, and Honam axis for Northern Economic Cooperation
    • Competent Ministry : Ministry of Land, Infrastructure, and Transport
    • Advance Publication of Legislation : 2021-10-13
    • Opinion Submission Deadline : 2021-10-27
Reasons for Proposal

1. Reason for proposal

The country has pushed forward with an economic development policy centered on the Seoul-Busan axis over the past 70-plus years and realized rapid economic growth with its per-capita GDP exceeding $30,000 in 2017. On the dark side, however, the country suffers from the negative side effects of unbalanced development of national land.

At present, most of the local governments except major cities in the Seoul-Busan axis are faced with a crisis of near-collapse due to the lack of SOC, absence of special industries, and continued decrease in local population.

It is necessary for local governments to strive for accompanied growth and explore new economic growth engines through balanced national development for the country’s sustainable economic growth.

The Gangwon, Chungcheong, and Honam (G-C-H) axis covers an area distinguished from the Seoul-Busan axis. The area encompasses local governments marginalized in the country’s economic development centered on the Seoul-Busan axis. Accordingly, the development of the G-C-H axis is directly linked to balanced national development, and there is a need to overcome the crisis of regional collapse. The G-C-H axis can also be said to be related closely to the country’s future economic growth engine as the smooth execution of SOC construction programs embodying the axis—including the one for turning the Jochiwon-Jecheon Railroad into a high-speed rail—will make the axis the center of Northern Economic Cooperation initiated by the current ROK government.

Thus, the government intends to enact the special act for the comprehensive development of the G-C-H areas through the formulation of the relevant comprehensive development plan, execution of SOC development projects in said areas, and provision of support for SOC development projects in said areas as part of the effort to contribute to Northern Economic Cooperation and balanced national development through the following:

 

2. Main content

A.  The purpose of the law being contribution to balanced national development and reinforcement of the country’s national competitiveness through the promotion of SOC development projects in said areas to lay the groundwork for Northern Economic Cooperation and balanced national development; G-C-H areas defined as designated and publicly notified areas under the comprehensive development plan (Articles 1 and 2 of the bill).

B.   The Minister of Strategy and Finance may skip the preliminary feasibility survey where such need to carry out SOC development projects in said areas smoothly is recognized (Article 5 of the bill).

C.   The Minister of Land, Infrastructure and Transport shall formulate and fix a G-C-H-related comprehensive development plan including matters concerning the construction, overhaul, and improvement of SOC based on the submissions by the heads of the relevant central administrative institutions and si-mayors and do-governors of the areas (Articles 6 and 7 of the bill).

D.   The Minister of Land, Infrastructure and Transport may designate development districts upon requests from si-mayors and do-governors to engage in SOC development projects in said areas reflected to the comprehensive plan; construction of a building and installation of a structure shall be prohibited in development districts (Articles 8 through 11 of the bill).

E.    Si-mayors and do-governors may designate the state, a local government, a public institution, a local public enterprise, etc. as an implementer of a development project, shall formulate a development plan for the G-C-H areas based on the comprehensive development plan of the G-C-H areas, and shall obtain approval from the Minister of Land, Infrastructure and Transport for the plan (Articles 12 and 13 of the bill).

F.   A project implementer shall draw up an execution plan on the G-C-H-related SOC development project and obtain the approval of si-mayors and do-governors. Upon obtaining approval, all the necessary authorizations and permits shall be deemed to have been obtained (Articles 15 and 16 of the bill).

G.   Upon completion of work of a development project partially or wholly, a project implementer shall ask si-mayors and do-governors for inspection for completion. Where a development project has been completed as per the execution plan, si-mayors and do-governors shall put up a public notice on it (Article 21 of the bill).

H.      The G-C-H-related SOC Support Council and Planning Corps shall be established as a body for the promotion of the relevant SOC investment support. The relevant si-mayors and do-governors may operate an organization dedicated to the relevant SOC support (Articles 22 through 24 of the bill).

I.     The G-C-H-related SOC development project special account may be established for the smooth promotion of the relevant SOC development projects (Article 25 of the bill).

J.     The state may subsidize the loan expense required for the G-C-H-related SOC development project for a project implementer and may reduce/waive the tax and special assessment levied, etc. (Articles 26 and 27 of the bill).

K.    The state and a local government may attract private capital for the G-C-H-related SOC development projects and provide support for private developers (Articles 28 and 29 of the bill).

L.    Where it is impossible to execute a development project due to a change in the prevalent situation, si-mayors and do-governors may withdraw their approval or the like given to a project implementer; si-mayors and do-governors may have a project implementer submit the necessary report concerning development projects (Articles 33 and 34 of the bill).


Major Provisions

Articles 11, 17, 33, and 34 of the bill


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