REB: Korea Real Estate Board

A business which has been continuously run with equipment and human and material resources in a lawful place (i.e. a place where unauthorized buildings, etc., illegal changes of the form and quality of the land, and the stacking of materials are not prohibited by other laws) from the time before the project acceptance notification date, etc. to the time of the compensation plan notification date.
Where, if a lessee runs a business in an unauthorized building, etc., the business run by the lessee with a business registration obtained under Article 5 of the Value-Added Tax Act from one year before the project acceptance notification date is accepted and, if a business requires permission under the related statutes, etc., a business which has been run after obtaining the permission, etc. before the project acceptance notification date is accepted; if the business is suspended due to the implementation of a public works project, compensation is made up to the amount of business profits during the period of business suspension (4 months usually) and facility movement expenses, etc.
Where, if a lessee runs a business in an unauthorized building, etc., the business run by the lessee with a business registration obtained under Article 5 of the Value-Added Tax Act from one year before the project acceptance notification date is accepted as a lawful business, but the amount excluding fixed assets, raw materials, and products and sales loss of commodities, etc. cannot exceed KRW 10 million.

• A business run in unauthorized buildings constructed before January 24, 1989 is deemed to be a business in lawful buildings when compensating for business loss in accordance with the Supplementary Provisions.

  Losses caused by business suspension are calculated as the sum of business profits during the period of business suspension, business profits reduced after the movement of business premises, and the expenses shown below.

• Fixed expenses: Depreciation expenses and maintenance expenses of business assets during a period of business suspension and labor costs of the minimum persons required to work normally during a period of business suspension, etc.
• Movement expenses, etc.: Expenses for the movement of business facilities, raw materials, products, and commodities and the amount equivalent to the losses caused by such movement.
• Subsidiary expenses: Subsidiary expenses caused by the movement of a business place such as movement advertisement expenses and business opening expenses, etc.

Farmers, under the Farmland Act, who are cultivating farms to be included in a project district are compensated for farming losses up to the amount of “total yearly income of agricultural produce per mean unit farming area of farming families in each province” for two years calculated based on the “statistics of the survey of farming families’ economy” to be notified by a statistics preparation agency (regardless of the kinds of cultivated crops).
Where, if actual income is proved according to the actual income acceptance standard notified in the official gazette by the Minister of Land, Infrastructure and Transport, compensation may be made based on the actual income. The subject of compensation is the actual cultivator (farmer) of the corresponding farmland (under the Farmland Act).

• Land which has been used as farmland since the project acceptance notification date.
• Land which is temporarily used as farmland when considering the land use plan and the surrounding environment.
• Land which belongs to another person but has been illegally occupied and cultivated.
• Land cultivated by a person other than a farmer (“farmer” as prescribed under the Farmland Act).
• Land whose cultivation has been allowed by the project operator for two years or longer after land compensation.

A livestock business as shown below is compensated based on business compensation (business suspension losses, expenses incurred by the movement of facilities/domestic animals) and, if the case does not fall into the category of subjects eligible for compensation for livestock, only the expenses incurred by the movement of livestock facilities and domestic animals are paid.

• An incubation business or breeding stock business registered or permitted by the Livestock Industry Act
• Cases in which not less than standard number of domestic animals are bred and reared (Ex: 200 chickens, 150 ducks, 20 pigs, and 5 cows).
• Cases in which less than the standard number of domestic animals or fowls bred and reared together and where the sum of the ratio of actually raised animals/fowls to the standard number is not less than 1.

Compensation for leave is provided If a worker (from whom income tax is collected in accordance with the Income Tax Act) has worked for three months or longer at a workplace in the district of a public works project at the time of the project acceptance notification date and has leave for a certain period due to the movement of the workplace; however, the person who does not actually work is excluded from the subjects of compensation.

Compensation for leave is made by multiplying 70% of the worker’s mean wages under the Labor Standards Act by the number of days of leave (if the number of days of leave exceeds 120 days, 120 days are applied.). If jobs are lost due to the closure of a workplace, compensation is made in the amount of mean wages under Labor Standards Act equivalent to 120 days.