SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
• EBL under the Electric Utility Act; • development activity permit or urban planning facility decision under the National Land Planning and Utilisation Act; • if required, (small-scale) environmental impact assessment; • approval of the construction plan under the Electric Utility Act; • construction of the electric facilities in accordance with the Electrical Construction Business Act; • pre-use inspection of the electric facilities; • test run; • report of business commencement; and • commercial operation. Under the New and Renewable Energy Act, facilities utilising new and renewable energy must, within one month from pre-use inspection, additionally apply for REC facilities confirmation. As noted in 1.4 Sale of Power Industry Assets , the following factors are considered for the issuance of the EBL: • whether the entity has the financial and technologi- cal capacity necessary to operate the electricity business; • whether the entity will be able to carry out the elec- tricity business as planned; • for the distribution business and district electricity business, whether the business territory of two or more distribution business entities or the supply territory of two or more district electricity business entities will not fully or partially overlap; • for the district electricity business, whether the entity will have the supply capacity of at least 60% of the total electricity demand in the particular sup- ply district and the entity’s district electricity busi- ness will not cause any disruptions in the electricity supply by other electricity business entities that supply to users residing in neighbouring districts; • whether the concentration of electric power sta- tions or fuels in a specific district will interfere with electric power systems; • whether concentration in a specific fuel will inter- fere with electricity supply; • whether the master plan for electricity supply and demand is complied with; and
• whether the achievement of the GHG reduction target will not be interfered with. In addition to the above, when approving permits for photovoltaic, wind and fuel cell power genera- tion businesses – which require either a small-scale or full-scale environmental impact assessment – the opinions of residents will be taken into account by providing prior notice to those residents. Technical Capacity for Electrical Construction Business An entity applying to register as an electrical construc- tion business must have certain technical capacities, including having at least three electrical construction engineers, a minimum capital of KRW150 million (for foreign entities applying through their South Korean branch, the branch must also have a minimum estab- lishment capital of KRW150 million), and an office for the operation of the electrical construction business. Generally, the project implementer does not register as an electrical construction business for the installa- tion of electric facilities and EPC duties are subcon- tracted to entities that have obtained the electrical construction business permit. Standards for Development Activity Permit The following standards must be complied with to obtain the development activity permit: • the development plan must be in accordance with the development scale limits prescribed by the Enforcement Decree; • the development plan must not run counter to any urban or local management/growth plans; • the development plan must not impede any urban or local management/growth plans; • the development plan must be harmonious with surrounding land usage, local environment and scenery; and • the infrastructure and securing of sites under the development plans must be appropriate. Environmental Impact Assessment If required under the Environmental Impact Assess- ment Act, full-scale or small-scale environmental impact assessments must be conducted. Opinion
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