Privately Developed Port Facilities Can Be Transferred During Inheritance and Corporate Restructuring

The Full Amendment of Subordinate Legislation of the "Port Act" and the Establishment of Subordinate Legislation of the "Port Redevelopment Act" Passed at the Cabinet Meeting

[Sejong=Asia Economy Reporter Joo Sang-don] Starting from the 30th, land and port facilities developed by non-administrative authorities such as private developers, rather than the Minister of Oceans and Fisheries, will be transferable in cases such as inheritance and corporate restructuring.

On the 21st, the Ministry of Oceans and Fisheries announced that the full revision of subordinate statutes under the Port Act and the establishment of subordinate statutes under the Act on Port Redevelopment and Surrounding Area Development, which include these provisions, were passed at the Cabinet meeting and will be enforced from the 30th.

The subordinate statutes passed at the Cabinet meeting separate port redevelopment-related content from the existing Port Act to establish a separate Port Redevelopment Act. This involved transferring and organizing related provisions, fully revising the subordinate statutes of the Port Act to improve deficiencies in the operation of existing laws, and newly enacting subordinate statutes for the Port Redevelopment Act.

Previously, the Port Act was amended to restrict the transfer of land and port facilities acquired by non-administrative authorities other than the Minister of Oceans and Fisheries for 10 years. This restricted the transfer of land, mooring facilities, distribution and sales facilities, fishing port facilities, support facilities, and port waterfront facilities. However, transfers are allowed in cases such as inheritance, corporate division or merger, bankruptcy declaration, corporate restructuring, and conversion of individual businesses to corporations (capital contribution in kind) to avoid disruption to business management. Additionally, to encourage the use of new technologies in port development projects and support trial construction, a "Port Facility Technical Standards Subcommittee" will be established within the Central Port Policy Deliberation Committee.

The full revision of the Port Act Enforcement Rules also amended the lease permit requirements for land and port facilities developed exclusively for use by non-administrative authorities. The Port Act restricts leasing such land and port facilities to others, but to increase utilization, leasing to others is allowed if certain conditions are met, such as the original permit purpose not being changed.

Furthermore, related laws such as the Act on the Promotion of Marine Science and Technology designate certified new technologies, new construction methods, and patents valid within their effective period as new technologies supported in port development projects, laying the foundation for more active use of new technologies in port development. To prevent safety accidents, the Port Act now provides grounds to control access to port areas such as breakwaters, and detailed procedures and methods for designating access control zones within port areas have been specified. When restricting access to locations within port areas with a high risk of human accidents, the reasons for designation, location, and maps of the access control zones must be announced in the official gazette and information communication media at least 30 days in advance, and signs must be installed at access control entrances.

The amended Port Redevelopment Act allows for the designation of two or more geographically non-contiguous port areas and their surrounding areas as a single project zone to efficiently promote port redevelopment projects. Accordingly, the draft enforcement decree sets conditions for combining project zones, such as the need to install replacement port facilities or the comprehensive maintenance of scattered facilities in surrounding areas.

Kim Myung-jin, Director of the Port Policy Division at the Ministry of Oceans and Fisheries, said, "Through the full revision of subordinate statutes under the Port Act and the establishment of subordinate statutes under the Port Redevelopment Act, a systematic and efficient implementation of port development projects and strengthened management of port facilities have been achieved. At the same time, these provide institutional foundations to reorganize port functions and promote the development of surrounding port areas in response to the rapidly changing port logistics environment." He added, "We will make every effort to ensure that these two laws are smoothly enforced from July 30 with active participation from local governments and industry."

This content was produced with the assistance of AI translation services.