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Newsletter | February 2016, Issue 1
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REAL ESTATE & CONSTRUCTION
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Amendments to the Tourism Promotion Act Aim to Increase Global Competitiveness
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On December 22, 2015, certain amendments to the Tourism Promotion Act (the “Amendments”) were promulgated into law. They were designed to enhance the Korean tourism industry’s competitiveness by increasing tourism accommodations.
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The Amendments will become effective on March 23, 2016. However, the Amendments will only be effective for five years (until March 24, 2021).
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Requirements Prior to the Amendments
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Prior to the Amendments, the School Health Act prohibited the location of tourism accommodation within 50m or less from a school entrance. Similarly, the location of hotel facilities, which are more than 50m and 200m or less from a school entrance, required prior review of a school environment sanitation and clean-up committee.
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Under the Amendments
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The location of hotel facilities within 75m or less from a school entrance is still prohibited
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However, the location of hotel facilities that satisfy each of the following requirements are freely permitted in areas that are more than 75m from a school entrance:
| 1) |
Absence of certain specified entertainment facilities; |
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100 or more guest rooms; and |
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Open-type common space within the hotel facility (the “75m case”). |
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The easing of regulations for hotel facilities falling in the 75m case will only apply to specific areas, and is currently expected to include Seoul and its surrounding areas. These relaxed measures will be specified in the related Presidential Decrees.
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The location of hotel facilities falling within the 75m Case will also be subject to review by the local construction committee to assess any negative impact on the educational environment. And the local government could impose certain conditions for the protection of the educational environment and traffic safety.
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