BUSAN METROPOLITAN CITY ORDINANCE ON THE ESTABLISHMENT OF THE BUSAN METROPOLITAN CORPORATION
Wholly Amended by Ordinance No. 3556, Sep. 16, 1999
Amended by Ordinance No. 3644, Aug. 17, 2000
Ordinance No. 3807, Nov. 28, 2002
Ordinance No. 3928, Apr. 22, 2004
Ordinance No. 3984, Feb. 16, 2005
Ordinance No. 4001, May 4, 2005
Ordinance No. 4041, Nov. 16, 2005
- Article 1 (Purpose)
- The purpose of this Ordinance is to provide for matters necessary for the establishment and operation of a Busan Urban Development Corporation (hereinafter referred to as the "Corporation") under Article 49 of the Local Public Enterprises Act (hereinafter referred to as the "Act") in order to contribute to the stabilization of citizens' residence, the promotion of their welfare and the development of Busan region by carrying out urban development projects, including the development and supply of housing sites, the construction and supply of housing and the reclamation of public waters, and overseas construction projects. <Amended by Ordinance No. 3984, Feb. 16, 2005>
- Article 2 (Projects)
- The Corporation shall carry out those projects which fall under any of the
following subparagraphs: <Amended by Ordinance No. 3644, Aug. 17, 2000; Ordinance No.
3928, Apr. 22, 2004; Ordinance No. 4001, May 4, 2005; Ordinance No. 4041, Nov. 16, 2005>
- 1. Projects for the acquisition, construction, lease and management of housing and other general buildings and for the sale thereof in lots;
- 2. Projects for the acquisition, development, lease and management of land and for the sale thereof in lots;
- 3. Projects for the reclamation of public waters, including the construction of artificial islands;
- 4. Maintenance and improvement projects under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents;
- 5. Local industrial complex construction projects;
- 6. Construction materials production projects;
- 7. Projects related to the development of downtown areas;
- 8. Deleted; <by Ordinance No. 4041, Nov. 16, 2005>
- 8-2. Operation of Busan Youth Hostel Arpina;
- 9. Overseas construction projects;
- 9-2. Tourist complex construction projects;
- 9-3. Road construction projects among urban planning facilities projects;
- 10. Other projects which are entrusted by the State, local governments, public organizations, or other persons designated as project implementers by the State; and
- 11. Incidental projects related to those referred to in subparagraphs above.
- (2) Subject to the consent of the Busan Metropolitan Council (hereinafter referred to as the
"Council"), the Corporation may provide other corporations carrying out projects which fall under
any subparagraph of paragraph (1) or other similar projects with all or part of their capital with
the resolution of the Board of Directors.
- Article 3 (Capital) (1) The authorized capital of the Corporation shall be five hundred billion won, and the initial capital thereof shall be provided for by the Articles of Incorporation of the Corporation.
- (2) The time and method of the payment of such capital as may be invested by Busan Metropolitan City (hereinafter referred to as the "City") under paragraph (1) shall be determined by the Mayor of Busan Metropolitan City (hereinafter referred to as the "Mayor") with the resolution of the Council.
- Article 4 (Issuance, etc. of Shares) (1) If any person other than the City finances the Corporation, the capital of the Corporation shall be divided into shares.
- (2) All the shares of the Corporation shall be registered shares, which shall be divided into preferred shares and common shares.
- (3) The share certificates shall be issued in six (6) denominations of one (1), five (5), ten (10), fifty (50), one hundred (100), and one thousand (1,000) shares.
- (4) Each share to be issued by the Corporation shall have a par value of five thousand (5,000) won.
- (5) The total number of shares to be issued by the Corporation shall be one hundred million shares.
- (6) The time of issuance of shares, the scale thereof, and the time and method of payment thereof shall be resolved on by the Board of Directors of the Corporation and approved by the Mayor.
- Article 5 (Dividends on Shares)
- The payment of dividends on shares of the Corporation not owned by the City may have priority over the payment of dividends on those owned by the City.
- Article 6 (Officers) (1) The Corporation shall have several directors including a chief executive officer and auditors, whose number shall be provided for by the Articles of Incorporation of the Corporation, but the number of directors shall be not more than eleven.
- (2) The chief executive officer, the directors and the auditors may be appointed consecutively for a further term: Provided, That the term of office of an ex officio part-time director or an auditor who is a public official of the City taking charge of audit and inspection affairs shall be the period during which he/she holds office.
- Article 7 (Person to Act on Behalf of Chief Executive Officer)
- During the absence or disability of the chief executive officer, or when that office is vacant, any other director who is provided for by the Articles of Incorporation of the Corporation shall act on behalf of the chief executive officer.
- Article 8 (Directors)
- Directors shall be classified into full-time directors and part-time directors, and the number of part-time directors including Grade Ⅲ or higher public officials of the City taking charge of relevant affairs shall be provided for by the Articles of Incorporation of the Corporation and the number of full-time directors shall be less than 50/100 of that of directors including the chief executive officer. <Amended by Ordinance No. 3807, Nov. 28, 2002>
- Article 9 (Restriction on Representative Authority of Officers)
- The chief executive officer or any other director who acts on behalf of the chief executive officer shall not represent the Corporation with respect to matters in which his/her interests conflict with those of the Corporation, and an auditor shall represent it if there is no other officer who may do so.
- Article 10 (Restriction of Participation in Board of Directors)
- If the Board of Directors deliberates on those matters on which an officer of the Corporation or his/her relatives have a conflict of interest, he/she shall refrain from participating in such deliberation.
- Article 11 (Preparation of Budget)
- At least forty days prior to the commencement of each project year, the chief executive officer shall prepare the project plans and the budget during the project year involved in accordance with the budget preparation guidelines established by the Mayor.
- Article 12 (Correction of Final Accounts)
- If it is deemed that a statement of final accounts submitted under Article 59 of the Enforcement Decree of the Act is wrong, the Mayor may issue an order to correct that statement.
- Article 13 (Payment of Expenses Incurred in Conducting Projects on Behalf of State or Local
Government)
(1) Those expenses which are incurred in connection with projects conducted by
the Corporation on behalf of the State or a local government under Article 71(2) of the Act and
which fall under any of the following subparagraphs shall be borne by the State or local
government:
- 1. Expenses referred to in Article 63 (2) of the Enforcement Decree of the Act; and
- 2. Difference between the average price for services as rendered, for any public purpose, gratuitously or at prices below the price for those rendered ordinarily and the actual price therefor.
- (2) The Corporation shall consult with the relevant central administrative agency or local government on the payment of expenses referred to in paragraph (1) 2.
- Article 14 (Creation of Fund, etc.) (1) Subject to the approval of the Mayor, the chief executive officer may, if deemed necessary for the conduct of projects of the Corporation, establish and administer a Fund with the resolution of the Board of Directors.
- (2) The City may provide the Corporation with subsidies to create the Fund referred to in paragraph (1).
- Article 15 (Issue of Debentures)
- The Corporation may, if necessary, issue debentures, and matters concerning the issue, sale and redemption thereof shall be provided for by the Articles of Incorporation of the Corporation. [This Article Wholly Amended by Ordinance No. 4041, Nov. 16, 2005]
- Article 16 (Short-term Borrowings, etc.) (1) The Corporation may, subject to the approval of the Mayor, borrow the funds the repayment period of which is not more than two years.
- (2) The Corporation may, if its cash is insufficient for any such expenditure as its budget permits, borrow funds temporarily, and a ceiling on such borrowing shall be determined by the budget.
- (3) Those funds which are temporarily borrowed under paragraph (2) shall be repaid in the year involved.
- Article 17 (Supervision)
- The Corporation shall obtain the approval of the Mayor with respect to
those matters which fall under any of the following subparagraphs:
- 1. Matters concerning organs and the prescribed number of staff; and
- 2. Matters concerning the establishment, amendment and repeal of important regulations, such as the personnel regulations, the remuneration regulations (including the annual salary contract system regulations and the welfare regulations) and the retirement benefits regulations (including the voluntary retirement regulations).
- Article 18 (Prohibition of Disclosure of Confidential Information, etc.)
- A person who was or is an officer or staff member of the Corporation shall neither disclose any confidential information which comes to his/her knowledge in the course of performing his/her duties to other persons nor use such confidential information for any purpose other than to perform his/her duties.
- Article 19 (Keeping of Official Seal of Mayor)
- In order to transfer the ownership of housing, land, etc. owned by the City or to register the cancellation of maximal-hypothec on national housing loans, the Corporation may, subject to the approval of the Mayor, keep and use his/her official seal until the completion of such transfer or registration in accordance with the Busan Metropolitan City Ordinance on Official Seals. <Amended by Ordinance No. 3984, Feb. 16, 2005>
- ADDENDA(1) (Enforcement Date) This Ordinance shall enter into force on the date of its promulgation.
- (2) (Transitional Measures) An officer of the Corporation who is appointed before this Ordinance enters into force shall be deemed to be appointed in accordance with this Ordinance and shall hold office for the remainder of his/her term of office.
- (3) (Succession to Rights and Duties) The rights and duties of the housing office of the City related to housing projects shall, as a whole, be succeeded to by the Corporation on the date of its establishment.
- (4) (Amount Invested by City at Time of Establishment of Corporation) The amount invested by the City at the time of the establishment of the Corporation shall be that given by adding the revaluated assets of the housing office and other assets invested by the City.
- ADDENDUM <Ordinance No. 3644, Aug. 17, 2000>
- This Ordinance shall enter into force on the date of its promulgation.
- <Ordinance No. 3807, Nov. 28, 2002>
- This Ordinance shall enter into force one month after the date of its promulgation.
- ADDENDA <Ordinance No. 3928, Apr. 22, 2004>
- Article 1 (Enforcement Date)
- This Ordinance shall enter into force one month after the date of its promulgation.
- Articles 2 through 10 Omitted.
- ADDENDUM <Ordinance No. 3984, Feb. 16, 2005>
- This Ordinance shall enter into force on the date of its promulgation.
- ADDENDUM <Ordinance No. 4001, May 4, 2005>
- This Ordinance shall enter into force on the date of its promulgation.
- ADDENDUM <Ordinance No. 4041, Nov. 16, 2005>
- This Ordinance shall enter into force one month after the date of its promulgation.
