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Busan Metropolitan City Ordinance on Expansion of Industrial Site

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BUSAN METROPOLITAN CITY ORDINANCE ON EXPANSION OF INDUSTRIAL SITE

Ordinance No. 4312, Nov. 5, 2008

Amended by Ordinance No. 4449, Dec. 30, 2009

Ordinance No. 4515, Jul 6, 2010

Ordinance No. 4606, Mar. 23, 2011

Ordinance No. 4976, Jan. 1, 2014

Ordinance No. 5078, Jan. 1, 2014

Ordinance No. 5120, Apr. 1, 2015

Ordinance No. 5136, May 27, 2015

Ordinance No. 5159, May 27, 2015

CHAPTER 1 GENERAL PROVISIONS

  • Article 1 (Purpose)
  • The purpose of this Ordinance is to contribute to the promotion of competitive local economy by regulating matters necessary to expand industrial area for timely supply of the industrial complex necessary for production activities of an enterprise and matters entrusted by the Industrial Sites and Development Act and the Act on Special Cases on Simplification of Authorization and Permission Procedures for Industrial Complexes.
  • Article 2 (Definitions)
  • For the purpose of this Ordinance, the following terms shall be defined as follows: (Amended by Ordinance No. 5078, Jan. 1, 2014; Ordinance No. 5120, Apr. 1, 2015)
    • 1. The term "industrial site" refers to the site within an industrial complex (hereinafter referred to as the "Industrial Complex") pursuant to subparagraph 8 Article 2 of the Industrial Sites and Development Act (hereinafter referred to as the "Industrial Sites Act").
    • 2. The term "existing industrial site" refers to an industrial area other than the area designated as the industrial complex.
    • 3. The term "foreign-invested enterprises" refer to the enterprises pursuant to subparagraph 5 of Article 2 of the Busan Metropolitan City Ordinance on Promoting Attraction of Enterprises and Investment.
    • 4. The term "domestic enterprises" refer to the enterprises pursuant to subparagraph 1 of Article 2 of the Busan Metropolitan City Ordinance on Promoting Attraction of Enterprises and Investment.
    • 5. The term "large-scale investment" refers to (i) the investment made by the foreign-invested enterprises or domestic enterprises to move its factory, main office or research institute into the Busan Metropolitan City area (hereinafter referred to as the "City area") that is fifty (50) billion won or more in amount, or (ii) the investment made to newly construct or expand or move a factory, main office or research institute that employs 300 or more employees at all times.

CHAPTER II EXPANSION OF INDUSTRIAL COMPLEX, ETC.

  • Article 3 (Establishment of Industrial Complex) (1) Busan Metropolitan City Mayor (hereinafter referred to as the "Mayor") shall actively carry out the projects on establishment of the industrial complex in order to expand the industrial site.
  • (2) In order to ensure the smooth operation of the project on establishment of the industrial complex, the Mayor may assist, within limits of budget, by providing part of the expenses necessary for the industrial complex development project pursuant to Article 26 of the Enforcement Decree of the Industrial Sites and Development Act, following the prior deliberation of the Busan Metropolitan City Industrial Site Council executed pursuant to the provisions under Article 8 hereof.
  • Article 4 (Special Cases on Method of Appointing Priority Order for Move-in) (1) The Mayor may, pursuant to Article 42-3, Paragraph 5 of the Enforcement Decree of the Industrial Sites and Development Act, preferentially sell the industrial facilities site in units (i) to the foreign-invested enterprises or domestic enterprise that have significantly affected the local economy by providing a large-scale investment within the City area or moving into the City area, or (ii) to the foreign-invested enterprises or domestic enterprises with significant development potentials and high conduciveness to the development of local economy that wish to move out of the City area.
  • (2) Appointment of the enterprises that will receive, in preference to other, the industrial facilities site pursuant to the provisions under paragraph 1 shall be carried out following the prior deliberation of the Busan Metropolitan City Industrial Site Council executed pursuant to the provisions under Article 8 hereof.
  • Article 5 (Readjustment of Existing Industrial Site) (1) In case it is necessary to readjust the existing industrial site due to the changes inflicted upon the industrial structure of the existing industrial site and the deterioration of the industrial facilities, the Mayor may designate the existing industrial site as the renovation project district pursuant to Article 39-2 of the Industrial Sites Act and implement the readjustment project. (Amended by Ordinance No. 5159, May 27, 2015)
  • (2) In case it is necessary for the readjustment projects as prescribed under Paragraph 1, the Mayor may preferentially provide some part of the industrial site located within the industrial complex so that the occupant enterprises established in the existing industrial site subject to the readjustment can move in.
  • Article 6 (Support for Managing Agencies, etc.)
  • The Mayor may provide, within limits of budget, part of the operating expenses to the managing agencies and the Occupant Enterprises Council of the existing industrial site pursuant to Subparagraph 17 of Article 2 of the Industrial Cluster Development and Factory Establishment Act. (Amended by Ordinance No. 4606, Mar. 23, 2011)
  • Article 7 (Support for Environment Improvement Expenses) (1) The Mayor may subsidize the competent Gu/Gun by providing, within budgetary limits, such Gu/Gun with the expenses necessary to improve an environment of the industrial complex or the existing industrial site.
  • (2) The Mayor may, within budgetary limit, partially subsidize expenses incurred in knowledge industry center to facilitate the construction of knowledge industry center pursuant to subparagraph 13 of Article 2, of the Industrial Cluster Development and Factory Establishment Act. (Amended by Ordinance No. 4606, Mar. 23, 2011)
  • Article 7-2 (Profit Ratio for Determining Parceling-out Price)
  • The profit ratio under Article 40 (2) 2 and 40-3 (2) of the Industrial Sites and Development Act shall be 10/100. [This Article Newly Inserted by Ordinance No. 5120, Apr. 1, 2015]
  • Article 7-3 (Green Space Ratio and Street Ratio for Renovation Project Districts)
  • Standards for the green space ratio, street ratio, etc. applicable to renovation project districts under Article 39-15 (2) of the Industrial Sites Act shall exceed 50/100 of the green space ratio and street ratio, etc. determined under Article 14 of the Comprehensive Guidelines on the Development of Industrial Sites of the Announcement of the Ministry of Land, Infrastructure and Transport. [This Article Newly Inserted by Ordinance No. 5120, Apr. 1, 2015]
  • Article 7-4 (Outsourcee Institution for Management Operation)
  • "Institution prescribed by Ordinance of the local government" in Article 36-7 (1) 6 of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act means the Busan Economic Promotion Foundation. [This Article Newly Inserted by Ordinance No. 5120, Apr. 1, 2015]
  • Article 8 (Industrial Site Council) (1) The Busan Metropolitan City Industrial Site Council (hereinafter referred to as the "Industrial Site Council") shall, pursuant to Article 3 Paragraph 3 of the Industrial Sites Act, be established to comply with the Mayor's request for consultation on matters falling under each of the following subparagraphs:
    • 1. Matters concerning the development and supply and sale of the industrial complex;
    • 2. Matters concerning the types and rates of the supplementary costs necessary for the industrial complex development project;
    • 3. Matters concerning the readjustment of the industrial complex and the existing industrial site;
    • 4. Matters concerning the occupation qualification standard etc. that are necessary to control the fictitious demand for the industrial site;
    • 5. Important matters for vitalizing deteriorated industrial areas under the Busan Metropolitan City Ordinance on Supporting Activation of Deteriorated Industrial Area;
    • 6. Other matters to be referred by the Chairperson to the meeting of the Industrial Site Council in order to revitalize the industrial complex and the existing industrial site.
  • (2) The Industrial Site Council shall consist of no more than 20 members including one chairman and one vice chairmen.
  • (3) The chairman of the Industrial Site Council shall be the Director General of Employment and Economy Office, the vice chairman shall be elected by mutual vote among the members, and members ought to be commissioned or appointed by the Mayor among public officials of Grade 4 or higher Grade working in the Busan Metropolitan City and those who have abundant knowledge and experience in the establishment of industrial complexes.
  • (4) Appointed members of the Committee holds office for 2 years, and the consecutive appointment may be permitted only once.
  • (5) The chairman shall convene meetings of the Industrial Site Council, and the vice chairman shall assist the chairman and act on behalf of the chairman when the chairman inevitably can not perform his/her duties.
  • (6) The Industrial Site Council meeting is to start with a majority of the registered Committee members present and shall pass a resolution with a majority vote of the Committee members who are present.
  • (7) The Industrial Site Council shall have one executive secretary and one clerk, and the director in charge of the establishment of industrial complex shall be the executive secretary and the deputy director in charge of the establishment of industrial complex shall be the clerk.
  • (8) The chairman shall decide on necessary matters other than that regulated in this Ordinance with the consent of the Industrial Site Council.

CHAPTER III BUSAN METROPOLITAN CITY INDUSTRIAL COMPLEX DEVELOPMENT SUPPORT CENTER

  • Article 9 (Composition) (1) The Busan Metropolitan City Industrial Complex Development Support Center (hereinafter referred to as the "Support Center") which is established under the Article 5, Paragraph 1 of the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes (hereinafter referred to as the "Act on Special Cases") shall consist of no more than 60 public officials including one director.
  • (2) The director of the Support Center shall be the Director General of Employment and Economy Office, the members of the Support Center shall be commissioned or appointed by the Mayor to each subcommittee among those who fall under the following subparagraphs:
    • 1. The heads of the branches in charge of affairs regarding the development of industrial complexes such as industrial site, urban planning, construction, traffic, parks, green area, environment, etc;
    • 2. Public officials of Grade 4 or higher of a relevant Gu/Gun who in charge of developing industrial complexes.
    • 3. Public officials dispatched by the head of an agency related to designation of industrial complexes, under Article 5 (3) of the Act on Special Cases.
  • Article 10 (Duties of Director of the Support Center) (1) The director shall represent the Support Center and exercise the overall control of the Support Center.
  • (2) The one who was designated in advance by the director shall carry out the duties of the director when he/she inevitably can not perform his/her duties.
  • Article 11 (Executive Secretary, Etc.)
  • The Support Center shall have one executive secretary and one clerk, and the deputy director in charge of the industrial site shall be the executive secretary and the one who does actual works regarding the industrial site shall be the clerk.
  • Article 12 (Meeting)
  • The director of the Support Center shall convoke a meeting immediately if the investment intension letter pursuant to Article 7 of the Act on Special Cases or the director feels the necessity.
  • Article 13 (Notice of Opinion Such as Redress, Etc.)
  • The director of the Support Center shall notify to the applicant about what needs to be redressed, etc. after he/she examine the content of the investment intension letter is consistent with Article 7 of the Act on Special Cases.

CHAPTER IV BUSAN METROPOLITAN CITY DELIBERATION COMMITTEE OF INDUSTRIAL COMPLEX PLAN

  • Article 14 (Composition)
  • The members of the Busan Metropolitan City Deliberation Committee of Industrial Complex Plan (hereinafter referred to as the "Deliberation Committee") established under the Article 6, Paragraph 1 of the Act on Special Cases shall be the ones pursuant to each subparagraph of the Article 6, Paragraph 2 of the Act on Special Cases, and the ones who is commissioned or appointed by the Mayor among those who fall under the following subparagraphs:
    • 1. Persons who are recommended by the Busan Metropolitan Council;
    • 2. Those who are recommended by the Busan Metropolitan City Committee for Breaking Enterprise's Bottleneck among that committee members pursuant to the Busan Metropolitan City Ordinance on the Honorable Treatment of Distinguished Businessmen and the Promotion of Business Activities;
    • 3. Those who are recommended by the director of the Busan Incorporated Foundation for Economic Promotion among the officers of that foundation pursuant to the Busan Metropolitan City Ordinance on the Establishment and Management of the Busan Economic Promotion Foundation.
  • Article 15 (Terms)
  • Appointed members of the Committee holds office for 2 years and the consecutive appointment shall be permitted only once.
  • Article 16 (Duties of the Chairman) (1) The chairman shall convoke the meeting of the Deliberation Committee and exercise the overall control of the Deliberation Committee.
  • (2) The vice chairman shall assist the chairman and act on behalf of the chairman when the chairman inevitably can not perform his/her duties.
  • Article 17 (Executive Secretary, Etc.)
  • The Deliberation Committee shall have one executive secretary and one clerk, and the director in charge of the industrial site shall be the executive secretary and the deputy director in charge of the industrial site shall be the clerk.
  • Article 18 (Managerial Rules)
  • The chairman shall decide on necessary matters for the management of the Deliberation Committee other than that regulated in this Ordinance with the consent of the Deliberation Committee.

CHAPTER V SUPPLEMENTARY PROVISIONS

  • Article 19 (Hearing of Opinions, etc.)
  • If necessary to perform its duties, the Industrial Site Council, Support Center, or Deliberation Committee (hereinafter referred to as the “Industrial Site Council, etc.”) may request related public officials or experts to appear before the Industrial Site Council, etc. and present their opinions or to submit materials.
  • Article 20 (Allowances, etc.) (1) Allowances and travel expenses may be paid to commissioned members of the Industrial Site Council, etc. within budgetary limits.
  • (2) Where the Mayor requests related experts to prepare a technical review report under Article 13 of the Act on Special Cases, he/she may pay the expenses incurred in preparing such report within budgetary limits.
  • Article 21 (Prohibition against Divulging Confidential Information)
  • Any member and related public official who has attended the meeting of the Industrial Site Council, etc. shall not divulge confidential information that he/she has learned in the course of performing his/her duties.
  • ADDENDUM (Ordinance No. 5159, May 27, 2015)
  • This Ordinance shall enter into force on the date of its promulgation.
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