On June 30, 2016, certain amendments to the Act on Development
and Management of Logistics Complexes (the "Act"), and
the enforcement decrees and regulations (collectively, the
"Amendments") came into effect. These Amendments aim to
redevelop aging logistics facilities located in cities throughout
Korea for the development of high-tech, mixed-use complexes for
logistics and distribution.
The Amendments include, among others, the following:
1.Changes to Existing Regulatory Scheme to Allow Installation
of Facilities Related to Distribution/Logistics/High-tech
Industries in Logistics Complexes
Under the Amendments, existing logistics complexes are
re-classified as "general logistics complexes," and urban
high-tech logistics complexes are newly introduced.
In urban high-tech logistics complexes, the following can be
installed, but in each case, must be related to high-tech
industries and logistics/distribution business:
Facilities relating to knowledge-based industries;
Facilities relating to the information and communications
Educational and research facilities.
2.Promotion of Multi-dimensional Development through
Installation of Facilities Permitted in Other Districts (e.g., in
Public Housing Districts)
Under the Amendments, simultaneous district designation is
possible at the site for an urban high-tech logistics complex.
Pursuant to the Amendments, certain other districts prescribed
by the Presidential decree to the Act, including a public housing
district, can be simultaneously designated as urban high-tech
logistics complex sites.
Also, a single building can be developed through consolidation
of facilities permitted under such other districts, as well as
urban high-tech logistics complex facilities and their supporting
3.Mandatory Contributions to Public Interest upon Designation
as Urban High-tech Logistics Complex
Under the Amendments, the developer of an urban high-tech
logistics complex is obligated to make contributions of up to 25%
of the market value of the concerned land to the national or a
local government by way of the provision of public facilities.
Contribution examples include support centers for business
start-ups in the logistics industry, joint logistics facilities,
and public housing or contributing to their operational costs.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This article is the first in a series to examine the new Planning Act 2016 and how it may impact on future development.
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