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A Study on the Cost Sharing System of Infrastructure in Urban Development Project - Basing on the Urban Development Act Article 55 Clause 2 -

  • DONG-A LAW REVIEW
  • 2011, (53), pp.113-140
  • Publisher : The Institute for Legal Studies Dong-A University
  • Research Area : Social Science > Law

Sang-Tae Kim 1

1순천향대학교

Accredited

ABSTRACT

Old Urban Development Act Article 54 Clause 1(Current Urban Development Act Article 55 Clause 1) stipulates only an installation obligator of infrastructure, but it had no provision on the burden subject of installation cost. Owing to this legislative inadequacy there arose an incessant quarrel over the cost burden of infrastructure between the installation obligator of infrastructure and its implementer. In order to settle such a struggle, lawmakers newly enacted Urban Development Act Article 55 Clause 2 in 2008 and helped the installation obligator bear the cost. However, notwithstanding these provisions, the installation obligator of infrastructure imposes the burden of cost upon the business implementer on the basis of the individual law such as the agreement between the parties, benefit principle, Integrated Energy Supply Act and Urban Gas Business Act etc. But, the profits the business implementer gained is restricted from the use by Urban Development Act, and remaining profits after execution revert to a local government. Whereas, the installation obligator gets the gains from a permanent exclusive business, it is not reasonable to impose the burden of cost upon the business implementer based on benefit principle. Moreover, the burden of cost of the business implementer by the agreement between the parties and the individual law is the violation of compulsory provisions. Therefore, it is not appropriate for the installation obligator to violate a positive law or render the business implementer to bear the cost in relation with the installation of infrastructure with an expedient or illegal method.

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