SOUTH KOREA Law and Practice Contributed by: Hyeon Kang, Tae Kyoon Kim, Seungil Hong and Sung-Ho Moon, Bae, Kim & Lee LLC
4.2 Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction The principal laws applicable to design, appear - ance and method of construction are NLPUA and the Building Act. In particular, the Building Act regulates the standards and usage of land, structure, and facilities of buildings, as well as safety, functionality, environment, and aesthetics of buildings, and its application is overseen by municipal governments. 4.3 Regulatory Authorities As explained in 4.1 Legislative and Governmen- tal Controls Applicable to Strategic Planning and Zoning , at a national level, the MOLIT regu - lates the development and use of land by setting out a basic land use plan. At a local level, munici - pal governments regulate the development and use of land by promulgating local ordinances. The NLPUA provides a basic framework for planning regarding the use, development and preservation of national land and the implemen - tation of such plans. Under this framework, the MOLIT devises the national land plan, in accord - ance with which the regional plan, urban mas - ter plan and city management plan are devised by governors, mayors and other heads of local governments. The city management plan contains a detailed zoning plan covering certain areas of the city. In addition, the city management plan and related local regulations restrict granting development permits or building permits in certain areas where development activities and/or building works could seriously pollute or damage the sur - rounding environment, scenery, historic build - ings, cultural heritage, etc.
be voided by the rehabilitation receiver or the bankruptcy administrator if created by a “pref - erential” act by the borrower that favours certain lenders over others. 3.10 Taxes on Loans When entering into a loan agreement in Korea, a fixed stamp duty is levied based on the loan amount. For loans exceeding KRW1 billion, the applicable stamp duty is KRW350,000. This applies regardless of whether the loan is secured, mezzanine or any other type. If a mortgage is created for a secured loan, a registration tax equivalent to 0.24% of the value of the property is levied when registering the mortgage. There is no separate stamp duty for the mortgage. 4. Planning and Zoning 4.1 Legislative and Governmental Controls Applicable to Strategic Planning and Zoning The principal laws applicable to strategic plan - ning and zoning are NLPUA (regulating zoning and land use) and the Building Act (regulating construction and building use). For certain types of development such as the redevelopment of urban areas, other specific laws may apply, such as the Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions for Resi - dents (AMIUADCR) and the Special Act on Pro - motion of Urban Renovation. In addition, at a national level, the MOLIT regu - lates the development and use of land by setting out a basic land-use plan. At a local level, munic - ipal governments regulate the development and use of land by promulgating local ordinances.
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