Much of the county is composed of farmlands and forests, with low ratio of urban land.

04

* Share of urban land: Korea 6.4%(as of 2007), Japan 8.3%(2004), UK 14.4%(2005)

Heavy rental payments encourage domestic companies to move abroad while preventing advancement of foreign companies into Korea.

Complex regulations on land-use zones/inconsistent restrictions hamper land searching.

* of 2020, demands for urban land will reach 3,000 ㎢ (4th Comprehensive National Territory Plan)

* Industrial land rental rates(in $/ ㎡ ): Korea 144.4, Shanghai 50, Tianjin 38, Manila 50

2

Excessive regulations on land use in capital region limit business activities and lives of people

Related regulationsMinistry of Land, Transport and Maritime Affairs 33, Ministry of Environment 14, Ministry of Food, Agriculture, Forestry and Fisheries 8, Ministry of Culture 6, Ministry of Knowledge Economy 6, Public Administration and Security 5, Ministry for Health, Welfare and Family Affairs 2, Ministry of National Defense 1, Ministry of Education 1, Korean Communication Commission 1

Total

Acts

PresidentialDecree

Ordinanceof Ministry

MunicipalOrdinance

10

10

3

4

116

77

3

4

32

401

216

48

11

126

*

Current land use: forest 64.8%, farmland 21.1%, urban land 6.4%Urban land continues upward trend, thanks to rises in housing and factory sites (3.1% in 1980 6.4% in 2007).

06

In addition to the traditional zoningand environmental conservation·military facility·development-restricted zones

The Capital region has the strong regulations on establishment of plants, large buildings and various construction sites, applied differently according to three types of regulatory districts

07

- Three types of regulatory districts are

applied to address overconcentration

in the Capital region.

Each of central and local governments develops an independentland use plan.

09

Basic Urban Plan is required to include Topographic Map,required land amount and other specific information,limiting flexible land use.

Many development plans are built for a variety of purposes such asgeneral, agricultural, environmental, tourism and transportation purposes.

Each land use plan has its own process and schedule.

On top of the National Territory PlanningAct, hundreds of zones are beingapplied, complicating regulations further.

Although Basic Act on Land Use Regulation was enacted in Dec. 2005 to control the creation of new regulatory zones, no less than 28 were created for the past 3 years. * In detail, Ministry of Environment 11/ Ministry of Land, Transport and Maritime Affairs 11/ Ministry of Public Administration and Security and three other agencies 6

10

* 10 government ministries identified 401 zones, following 116 regulations

* On average, one parcel of land has 4.6 zones overlapped. (For example, Namyang-ju has been designated as 7~11 different zones)

Ex)Namyang-ju

Excessive restrictions on possession or trade of marginal landswhich can be diverted to urban land

Difficult diversion of semi-conserved mountainous districts preventsefficient land use.

11

Ineffective regulations on agricultural promotion areas surrounding cities

Only some activities have been approved in semi-conserved mountainousdistricts /designation of alternative areas is mandatoryin case of diversion.

Pollutant discharge is being regulated in addition to the ban on high riskbusinesses.

Areas which do not meet purpose of this system or have low conservationvalues are also regulated under strict rules, causing inconvenienceto residents.

Overlapped assessment requirements and difficult conditions resultsin huge time and costs.

- Eliminated regulations on plants(2002)- Eliminated regulations on plants(2002)

- Eliminated new plant/ business building construction permission system(1981)

- Eliminated new plant/ business building construction permission system(1981)

- Exempted plants from impact fee (1982)- Exempted plants from impact fee (1982)

prevent improvement of national competitiveness by reducingbusiness investment and causing huge costs

prevent development in areas which were selected as naturalconserved district and also as protection district for environmentalpurposes(18.1% out of entire Capital Region)

12

14

- Guideline for urban land planning will be divided into two parts, guideline for planning and that for policy

1. Guideline for Metropolitan Area 2. Guideline for basic urban planning 3. Guideline for urban management 4. Guideline for district planning 5. Guideline for development activities permission

Form and process

1. Response to climate change 2. Landscape and design 3. Urban Regeneration

15

To address conflicts among different land development plans based on different regulations

Adjust possible land utilization within the total amount allowedduring the planning period reaching 20 years

16

Land use will not be marked on the mapOverall direction of development will be stated based on the vision of the city

Capacity to balance conflicts among different land use plans will bestrengthened. Power of local governments is expanded to designateland use zones and to allow diversion rather than meeting local or national policy goals.

Role of Urban Planning Committee will be fostered to offercomprehensive deliberation and settlement functions for issuesrelated to farmlands, forests and environment.

Suggestions were proposed to integrate zones with similar objectives(reported by the Presidential Council on National Competitiveness in March, 2009)

Various standards, process and regulations, which have been segmented will be unified

17

residential · commercial · industrial

natural green, planned control, productive green, productive control

Development will be pursued accordingto types of areas.

Development approval will be grantedflexibly, focusing on areas withlow conservation values.

* Local governments will introduce Time Zoning.

Developments will be strictly limited except agricultural dwelling houses, etc.

Urbanization

Reservation

Conservation

18

conserved green, conserved control, agriculture and forest, natural environment conservation

When over 50% of the site is entitled to development

which is based on the district-unit plan,

the entire area will be approved

even though it has some conservation land.

To promote multi-purpose land use,

semi-housing, semi-industrial, and commercial

districts will be integrated as a multi-purpose district

when it is based on district-unit plan.

19

Farmlands recording average cultivation of 15% or more will be allowed to be possessed by non-farmers/regulations on rental and consignment management will be eliminated.

Eased regulations on diversion of marginal farmlands(permission system to notification system)

20

Ownership cap(30,000 ㎡ ) of the land inherited to non-farmers will be eliminated.

During permission or notification of diversion, ineffective certificationprocess of farmland management committee will be eliminated.

Release of the agricultural promotion area will be conducted simultaneously with permission of diversion.

When the conserved mountainous district is being controlled by other regulations, restrictions based on Management of Mountainous Districts Act will be eliminated.

Requirement to designate alternative protection areas in case of diversion will also be eliminated.

The local governments will have the authority to permit sand/rocks collecting.

Information on forest protection will be provided via on-line networks, to identify possibility of development.

When utilizing forests for other purposes, diversion permission will be conducted.

21

Environmental examination(National Land Planning Act), prior environmental examination(Environmental Policy Act) and environmental impact assessment(Environmental Impact Assessment Act) will be streamlined. - Improvement including the process integration will be completed by end of 2008.

Scoping will be required to define target items of assessments, in order to reduce time(30 days and more) and costs(by 30%) of the process. - Development projects of small areas (smaller than 0.3 million ㎡ ) will be replaced by check lists.

22

23

Allow construction, expansion and relocation of plants inside of industrial complexes (Growth Control District-Overpopulation Constraint District) regardless of factory size or business type

Allow construction, expansion and relocation of plants inside of industrial complexes (Growth Control District-Overpopulation Constraint District) regardless of factory size or business type

Plants in other areas of Growth Control Districts will be allowed to expand their facilities

- Limit of expansion will be eased greatly for high technology businesses(96 types)

* Industrial area: within 1,000 ㎡ unlimited * Others: within 100% for 14 types within 200% for all businesses

- Increased autonomy when relocating plants in Metropolitan Area

Plants in other areas of Growth Control Districts will be allowed to expand their facilities

- Limit of expansion will be eased greatly for high technology businesses(96 types)

* Industrial area: within 1,000 ㎡ unlimited * Others: within 100% for 14 types within 200% for all businesses

- Increased autonomy when relocating plants in Metropolitan Area

In other areas of Overpopulation Constraint District, more expansion of plants will be available

* Industrial Area: High technology plants 1,000 ㎡ within 200% * Others: High technology plants 3,000 ㎡ within 100%

In other areas of Overpopulation Constraint District, more expansion of plants will be available

* Industrial Area: High technology plants 1,000 ㎡ within 200% * Others: High technology plants 3,000 ㎡ within 100%

Industrial development cap will be removed in areas which have been selected as the target of national projects

* Such as free economic zones, areas returned by US military and urban project areas supported by the government

Targets of regulations on plant construction will decrease markedly

- Targets of cap system: over 200 ㎡ over 500 ㎡- Targets of construction and expansion of plants: warehouses · offices will be excluded.

Targets of regulations on plant construction will decrease markedly

- Targets of cap system: over 200 ㎡ over 500 ㎡- Targets of construction and expansion of plants: warehouses · offices will be excluded.

Construction of knowledge · culture · IT industrial complexeswill be approved in Seoul to reorganize the city focusingon high technologies

24

Restriction based on the location of developments changed to bebased on pollutant discharge

- Regulations on mandatory pollution cap system will be implemented- Gradually ease regulations based on water pollution cap system

* Construction of industrial areas and construction / expansion of high-technology plants will be determined after consultation with experts(by end of 2010)

25

26

In Incheon free economic zone, the overpopulation constraint district(25%) will be changed to growth control district for foreign investments

Release regulations on areas where regulations are overlapped

Agencies which were excluded from the relocation of ministriesand other government organizations will be allowed to conduct constructions or expansions(now banned) after consultation.

Financial businesses in financial districts and R&D facilities inindustrial parks will be exempted from impact fee (designation of financial districts will take place in December 2008)

Reduce the heavy acquisition & registration taxes fornew businesses (1st half of 2009)

27

Use economic benefits generated by the deregulation toinvest in other regions

Set up funds and prepare ways to provide financial assistances by June 2009

Make use of additional benefits from deregulationin the Capital Region

Assist local governments' local investment projects

Adopt system of competition among local governments and fair & transparent selection system

Among agricultural promotion areas, some with low concern of water pollution will be excluded from the designation(about 650 ㎢ ).

Some of conserved mountainous districts will change into semi-conserved districts which are allowed to be Developed(1,000 ㎢ ).

28

Korea Land Corporation will be authorized to reserve Farmlands (in natural green area and development control area)for supply of public lands.

When the area is composed of 70% of semi-conversedmountainous district, the entire area will be regarded as a semi-conserved mountainous district.

58 areas reaching 454 ㎢ , which are currently included in protection areas for military purpose, will be released with considering changes in conditions to promote local development and address inconvenience.

Civilian Control Line near the MDL will be moved back by 5 ㎢ towards north.

Among green belts, area of 308 ㎢ will be released by 2020 as it fails to play its role as the designated area.

But, followings will remain as protection area. Areas which are critical to green corridors, water quality preservation or have chances of causing conurbation or speculation

29

The government will maintain the goal of efficient land use with

following the principle that developments will be promoted while

areas requiring conservation will be protected.

Market monitoring will be conducted to prevent speculation after

easing regulations on capital region, farmland,

Restricted Development zone and military facilities protection area.

As a result, strong measures such as strengthened screening on land trades and freezing land developments

will be conducted at appropriate time.

30

32

Land Use Planning

Simplification of Planning Process

Expansion of Delegation of

Planning Authority

24 months

10 months

12~18 months

4~7 months

6~12

months 3~6

months

Development

Urban Planning Committee Consulting

Integration and Simplification of Environmental

Assessment

5 months

12 months

2 months

9 months

3 months at Maximum

3 months at Maximum

33

34