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.

Key Aspects:

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:

  • Urban-type plants;
  • Facilities relating to knowledge-based industries;
  • Facilities relating to the information and communications industry; and
  • 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 facilities.

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.