Article 168-11 (Scope of Land Used for Business)

"Land with reasonable grounds to be recognized as directly related to residence or business, as prescribed by Presidential Decree" under Article 104-3(1)4.c of the Act refers to land falling under any of the following subparagraphs. <Amended by 2008.2.29, 2009.12.14, 2010.2.18, 2010.9.20, 2015.6.1, 2016.6.21, 2018.2.13, 2021.1.5, 2021.2.17, 2025.12.30> 1. Land for sports facilities such as playgrounds and stadiums, falling under any of the following: a. Land for exclusive use by athletes: (1) Land for sports facilities exclusively for athletes, continuously provided by a person who has established a corporate sports team pursuant to the 「National Sports Promotion Act」, within the standard area for exclusive use by athletes as prescribed by the Ministry of Economy and Finance Ordinance. Provided, That this shall not apply if the corporate sports team does not meet the requirements regarding athletes, coaches, etc., as prescribed by the Ministry of Economy and Finance Ordinance. (2) Sports facilities directly used by a person engaged in the sports business for athlete training, within the standard area prescribed by the Ministry of Economy and Finance Ordinance. b. Land for employee sports facilities: Land for sports facilities established for the welfare and benefits of employees, within the standard area for employee sports facilities as prescribed by the Ministry of Economy and Finance Ordinance. Provided, That this shall not apply if it does not meet the standards for employee sports facilities as prescribed by the Ministry of Economy and Finance Ordinance. c. Land directly used for business by a person engaged in sports facility business pursuant to the 「Act on the Installation and Use of Sports Facilities」, who has equipped the facility and equipment in accordance with the provisions of the said Act. d. Land directly used for business by a person engaged in stadium operation business. 2. Land for parking lots, falling under any of the following: a. Land for appurtenant parking lots pursuant to the 「Parking Lot Act」 (excluding appurtenant parking lots for residences; hereinafter referred to as the same in this subparagraph), within the standard area for installation of appurtenant parking lots pursuant to the said Act. Provided, That appurtenant parking lot land within land for recreational facility business pursuant to subparagraph 6 shall be handled as prescribed in subparagraph 6. b. Land for parking of business vehicles (excluding passenger cars, motorcycles, and vans for employee commuting) provided for businesses that are required to possess business vehicles, by persons other than those specified in Article 101(3)1 of the 「Enforcement Decree of the Local Tax Act」. Provided, That this shall be limited to land within the area calculated by multiplying the total area obtained by multiplying the number of vehicles by each type of business vehicle owned by the area of the minimum garage standard area prescribed by the 「Passenger Transport Service Act」 or the 「Freight Transport Service Act」 for each vehicle type (hereinafter referred to as "minimum garage standard area"). c. Land for parking lot operation business: Land owned by a person engaged in parking lot operation business and used as an outdoor parking lot pursuant to the 「Parking Lot Act」, where the ratio of annual income to the value of the land is equal to or higher than the rate prescribed by the Ministry of Economy and Finance Ordinance. 3. Land created by a project implementer designated pursuant to the 「Act on Private Investment in Social Infrastructure」 for the implementation of private investment projects prescribed by the said Act, and land created by a project implementer pursuant to other Acts, as prescribed by the Ministry of Economy and Finance Ordinance. Provided, That land for which two years have passed since the completion of its creation shall be excluded. 4. Land for youth training facilities pursuant to the 「Youth Activity Promotion Act」, equipped with facilities and equipment in accordance with the said Act. Provided, That land exceeding the standard area prescribed by the Ministry of Economy and Finance Ordinance shall be excluded. 5. Land owned for conducting reserve forces training for employees, etc., satisfying all of the following conditions: a. The land's official designation shall not be 'Daedzi' or 'Factory Site'. b. It shall not be located within residential, commercial, or industrial zones within the urban area pursuant to the 「Act on Spatial Planning and Utilization of Land」. c. It shall be equipped with facilities and be within the standard area as prescribed by the Ministry of Economy and Finance Ordinance. d. It shall be owned by a person to whom the authority to conduct reserve forces training has been delegated by the commander of the military unit to which the reservists belong. 6. Land for recreational facility businesses such as specialized recreational business and integrated recreational business pursuant to the 「Tourism Promotion Act」, as prescribed by the Ministry of Economy and Finance Ordinance, within the standard area prescribed by the Ministry of Economy and Finance Ordinance. 7. Land for storage, etc. Warehouses, open storage yards, stacking yards, etc. (including land ancillary to warehouse buildings constructed without permits or notification under the 「Building Act」) separately installed and used for the storage and management of goods, within 120/100 of the maximum area used for storage and management of goods annually. 8. Land for aggregate extraction sites. Land used for aggregate extraction by a person who has obtained permission for aggregate extraction from a market, county governor, or district mayor (limited to the heads of autonomous districts) pursuant to the 「Aggregate Extraction Act」, in accordance with the permission. 9. Land used for business by a person engaged in waste treatment business, who has obtained permission pursuant to the 「Waste Control Act」. 10. Mineral spring land (mineral spring land refers to land used for businesses such as carbonated beverage manufacturing and hot spring businesses, where hot springs, medicinal waters, etc., gush from underground, and the land necessary for their maintenance) where the ratio of annual income to the value of the land is equal to or higher than the rate prescribed by the Ministry of Economy and Finance Ordinance. 11. Land for fish farms or ponds pursuant to the 「Act on the Construction and Management of Spatial Information」 (referring to dams, reservoirs, small ponds, and naturally formed lakes used for inland aquaculture, fishing, etc., and the land necessary for their maintenance), falling under any of the following: a. Land used for marine aquaculture or aquaculture seed production for which a license has been obtained pursuant to Article 43(1)1 of the 「Aquaculture Industry Development Act」 or Article 10(1)7 of the 「Inland Water Fishery Act」 and Article 43(1)2 of the 「Aquaculture Industry Development Act」. b. Land used for licensed fisheries (including aquaculture licenses), permitted fisheries (including aquaculture permits), and reported fisheries by a person who has obtained a license or permit from a market, county governor, or district mayor (referring to the head of the agency in charge of Han River management in the case of the Han River in Seoul Metropolitan City; hereinafter the same in this subparagraph) or has reported to them, pursuant to the 「Inland Water Fishery Act」 and the 「Aquaculture Industry Development Act」 (limited to inland aquaculture business under Article 10(1)7 and land-based inland aquaculture business under Article 43(1)2 of the same Act). c. Land other than that referred to in subparagraphs a and b, where the ratio of annual income to the value of the land is equal to or higher than the rate prescribed by the Ministry of Economy and Finance Ordinance. 12. Land for the manufacture of blocks, stone products, and concrete pipes, land for flower sales businesses, land for landscape crop planting businesses, land for academies teaching courses in automobile repair, heavy equipment repair, heavy equipment operation, or agriculture, and other similar land, where the ratio of annual income to the value of the land is equal to or higher than the rate prescribed by the Ministry of Economy and Finance Ordinance. 13. A single plot of undeveloped land (undeveloped land refers to land not falling under subparagraphs 1 through 12 and not being used for any purpose) owned by a single household not owning a residence, which meets the standards prescribed by the Ministry of Economy and Finance Ordinance, considering the possibility of new housing construction, etc. (limited to within 660 square meters). 14. Other land similar to the land specified in subparagraphs 1 through 13, which is recognized as being directly related to the business, considering the land's usage status, compliance with relevant laws and regulations, etc., as prescribed by the Ministry of Economy and Finance Ordinance.

In paragraph 2, "annual income" refers to the amount calculated according to the methods prescribed in the following subparagraphs. <Amended by 2013.6.28> 1. The income for one tax period from the business related to the land and buildings, facilities, etc., shall be included. If a security deposit or deposit is received through a lease or rental contract for the land, buildings, and facilities, the amount calculated by applying the formula prescribed in Article 65(1) of the 「Enforcement Decree of the Value Added Tax Act」 shall be added. 2. If the income for one tax period is commonly related to the land and buildings, facilities, etc. (hereinafter referred to as "subject land, etc." in this subparagraph) and other land and buildings, facilities, etc. (hereinafter referred to as "other land, etc." in this subparagraph), and the actual attribution cannot be distinguished, the income for one tax period related to the subject land, etc. shall be calculated according to the following formula: Income for one tax period related to the subject land, etc. = Income for one tax period commonly related to the subject land, etc. and other land, etc. × (Value of the subject land for the current tax period ÷ Total value of the subject land and other land for the current tax period). 3. If the period of business operation on the land during one tax period is less than one year due to the new commencement or closure of business, transfer of land, prohibition of land use by law, or other unavoidable reasons, the income during that period shall be annualized to calculate the annual income.

When applying Article 104-3(1) of the Act, if multiple adjacent parcels of land are used collectively for a single purpose and their total area exceeds the area criterion for determining whether it is non-business land (hereinafter referred to as "standard area" in this paragraph), the entire or part of the land according to the order of priority in each item of the following subparagraphs shall be considered as the area exceeding the standard area, according to the classification in the following subparagraphs. 1. When there are no buildings or facilities on the land: a. Land acquired later. b. In case of the same acquisition date, land chosen by the resident. 2. When there are buildings or facilities on the land: a. Among the land excluding the floor area of buildings or the horizontal projection area of facilities, land acquired later. b. In case of the same acquisition date, land chosen by the resident.

When applying Article 104-3(1) of the Act, the classification of industries shall be based on the Korean Standard Industrial Classification, as notified by the head of the Statistics Administration pursuant to the 「Statistics Act」, unless otherwise provided in this Decree. <Amended by 2009.2.4, 2025.10.1>