SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
an EBL. Accordingly, negotiations with the relevant authority will be required. If a term or condition of an approval violates relevant laws and regulations, such term or condition will be deemed a separate meas- ure of the relevant authority and may be challenged through administrative litigation. 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities Under the Korean Constitution, just compensation must be paid for the expropriation, use or restriction of private property for public necessity in compliance with relevant laws. The Act on Acquisition of and Compensation for Land, etc, for Public Works Pro- jects (the “Land Compensation Act”) allows land to be acquired or used for installing electric business facili- ties under the Electric Utility Act. The Electric Utility Act also allows for the use of a third-party’s land under the Land Compensation Act. Accordingly, land may be acquired or expropriated for the installation of electric business facilities, and lump-sum compensation must be paid in cash under the Land Compensation Act, with the amount determined by an appraiser. In general, government-led businesses and privately led large impact businesses are acknowledged as public works projects. The majority of privately led businesses are conducted through the purchase, lease or establishment of surface rights over land. Issuance of an EBL may be restricted if land is not secured for the business. An entity that has obtained the approval for a public works project execution plan must prepare a land and goods protocol, disclose the compensation plan, determine the compensation amount and nego- tiate with landowners and other interested parties. If negotiations fail, compensation for expropriation or use is determined through alternative mechanisms, such as adjudication by the relevant land tribunal or objections to adjudication. Additional compensation may be required under the Act on the Compensation and Support for Areas Adjacent to Transmission and Substation Facilities. Under the Electric Power Source Development Pro- motion Act, which provides for relaxed regulations, if an electric power source business entity obtains approval for an execution plan for electric power
resource development, it is deemed to have acquired all permits, licences, decisions, designations, approv- als, cancellations, agreements and measures required under each separate law. Upon approval of the execution plan, the electric power source business entity may also expropriate or use the required land. Accordingly, expropriation and use rights may also be obtained under the Electric Power Source Develop- ment Promotion Act. 3.5 Decommissioning a Generation Facility Under the Nuclear Safety Act, construction of nuclear power reactors and relevant facilities requires a per- mit from the Nuclear Safety and Security Commission and the permit application must include a decom- missioning plan, which must thereafter be regularly renewed. The Nuclear Safety and Security Commis- sion’s approval is also required for the decommission- ing of nuclear power reactors and relevant facilities (as noted in 1.3 Foreign Investment Review Process , foreign investment in a nuclear power business is a cause for revocation of the nuclear power business licence). Generation businesses other than the nuclear genera- tion business are not subject to specific decommis- sioning requirements except general obligations under environmental laws and construction laws. However, if the generation facility site is within a mountainous dis- trict or farmland, a deposit for restoration is required. If the generation facility site is leased, the premises must be restored to the original state under the lease agreement with the lessor. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The principal laws governing the construction and operation of transmission facilities are the Electric Utility Act and the Electrical Construction Business Act and, for national core grid projects, the Electricity Network Expansion Act. Under the Electric Utility Act, transmission business- es must obtain a permit from the Minister of MCEE.
333 CHAMBERS.COM
Powered by FlippingBook