1. Article 21(4) of the former Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (amended by Act No. 14567, Feb. 8, 2017; hereinafter “former Act”) provides that “no person shall provide, manifest an intention or promise to provide, or receive or promise to provide money, valuables, entertainment, or other property benefits in connection with the election of members of the promotion committee; or shall not receive or promise to provide such benefits; and Article 84-2 subparag. 3 of the same Act provides that “any person who provides, expresses an intention or promises to provide, or accepts the indication of an intention to provide, money, valuables or other property benefits in violation of any of the subparagraphs of Article 21(4).”

Article 21(4) of the former Urban Improvement Act and Article 84-2 subparag. 3, which are penal provisions, are introduced by the amendment of the Act on January 2, 2012. The legislative purpose is to facilitate the implementation of improvement projects by enhancing the transparency of improvement projects, etc.

Article 13(2) of the former Act provides that, where a cooperative intends to be established under the title of “establishment of a cooperative and the composition of a promotion committee,” the committee shall be organized to establish a promotion committee with the consent of a majority of the members including the chairperson and the land owners concerning the operating regulations under Article 15(2). Article 15 provides that, under the title of “organization and operation of the promotion committee,” the promotion committee shall have one chairperson representing the promotion committee and one auditor,” and Article 13(2) provides that, for the fair operation of the promotion committee, the Minister of Land, Infrastructure and Transport shall determine the operating regulations of the promotion committee and publicly notify them in the Official Gazette.

Article 15 of the former Act on the Improvement of Urban Areas.