ARTICLE 168-11 (SCOPE OF OTHER LAND USED FOR BUSINESS)

“Land with reasonable grounds to be recognized as directly related to residence or business, as prescribed by Presidential Decree” in Article 104-3(1)4(c) of the Act refers to land that falls under any of the following subparagraphs. <Amended on Feb. 29, 2008, Dec. 14, 2009, Feb. 18, 2010, Sep. 20, 2010, Jun. 1, 2015, Jun. 21, 2016, Feb. 13, 2018, Jan. 5, 2021, Feb. 17, 2021, Dec. 30, 2025> 1. Land for sports facilities such as playgrounds and stadiums, which falls under any of the following: a. Land exclusively for athletes (1) Land for sports facilities exclusively for athletes, which is continuously provided as such by a person who has established a workplace sports team under the 「National Sports Promotion Act", and is within the standard area for exclusive athlete sports facilities prescribed by the Ministry of Economy and Finance Ordinance. However, this shall not apply if the workplace sports team does not meet the requirements for athletes and coaches, etc., prescribed by the Ministry of Economy and Finance Ordinance. (2) Land for sports facilities used directly for athlete training by a person operating a sports business, and 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 of employees, and within the standard area for employee sports facilities prescribed by the Ministry of Economy and Finance Ordinance. However, this shall not apply if it does not meet the standards for employee sports facilities prescribed by the Ministry of Economy and Finance Ordinance. c. Land directly used for business by a person operating a sports facility business under the 「Act on the Installation and Use of Sports Facilities", equipped with appropriate facilities and equipment in accordance with the provisions of the same Act. d. Land directly used for business by a person operating a stadium operation business. 2. Land for parking lots, which falls under any of the following: a. Attached parking lots under the 「Parking Lot Act" (excluding attached parking lots for residences; hereinafter the same applies in this subparagraph), and within the standard area for attached parking lots prescribed by the same Act. However, for land used for attached parking lots within recreational facility businesses under subparagraph 6, it shall be as prescribed in subparagraph 6. b. Land for parking lots for business vehicles (excluding passenger vehicles, motorcycles, and vans for commuting employees) which are essential to be possessed by a business operator other than those falling under Article 101(3)1 of the 「Enforcement Decree of the Local Tax Act", and are provided for such business vehicles. However, this shall be limited to land within the area calculated by multiplying the total area calculated by multiplying the number of business vehicles of each type owned by the area standard for the minimum garage space per vehicle of each type prescribed by the 「Passenger Transport Service Act" or the 「Freight Transport Service Act" by 1.5 (hereinafter referred to as "Minimum Garage Standard Area"). c. Land for parking lot operation business Land owned by a person operating a parking lot operation business, used as an outdoor parking lot under the 「Parking Lot Act", and where the ratio of annual revenue 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 under the 「Private Investment Act for Social Infrastructure" for the implementation of private investment projects prescribed by the same Act, and other land created by a project implementer under other laws, as prescribed by the Ministry of Economy and Finance Ordinance. However, land for which 2 years have passed since the completion of its creation shall be excluded. 4. Land for youth training facilities under the 「Youth Activity Promotion Act", equipped with facilities and equipment standards under the same Act. However, 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., which meets all of the following requirements: a. The land parcel classification shall not be a building site or factory land. b. It shall not be located within the residential, commercial, or industrial zones within the urban area under the 「National Land Planning and Utilization Act". c. It shall be equipped with facility standards prescribed by the Ministry of Economy and Finance Ordinance and be within the standard area prescribed by the Ministry of Economy and Finance Ordinance. d. It shall be owned by a person who has been delegated the authority to conduct reserve forces training by the commander of the stationed military unit. 6. Land for recreational facility businesses such as specialized recreational business and comprehensive recreational business under the 「Tourism Promotion Act", as prescribed by the Ministry of Economy and Finance Ordinance, and within the standard area prescribed by the Ministry of Economy and Finance Ordinance. 7. Land for depots, etc. Warehouses, open storage yards, stacking yards (including land attached to warehouse buildings constructed without permission or notification under the 「Building Act") separately installed and used for storage and management of goods, and land within 120% of the maximum area used for storage and management of goods each year. 8. Land for aggregate extraction sites. Land used for aggregate extraction by a person who has obtained permission for aggregate extraction from the mayor, county governor, or head of a district (limited to the head of a self-governing district) under the 「Aggregate Extraction Act", in accordance with the permission. 9. Land used for business by a person operating a waste treatment business with permission under the 「Waste Management Act". 10. Mineral springs (land used for beverage manufacturing, hot spring businesses, etc., referring to springs from which hot water, medicinal water, etc., gush out underground and the site for maintaining them) where the ratio of annual revenue 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 under the 「Act on the Construction and Management of Spatial Information, etc." (referring to dams, reservoirs, small reservoirs, and naturally formed lakes used for inland aquaculture and fishing operations, and the sites for maintaining them), which falls under any of the following: a. Land used for land-based seawater aquaculture with permission under Article 43(1)1 of the 「Aquaculture Industry Development Act" or for aquatic seed production with permission under the 「Aquatic Seed Industry Promotion 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, or reported to, the mayor, county governor, or head of a district (limited to the head of a self-governing district; in the case of the Han River in Seoul Metropolitan City, the head of the agency in charge of Han River management; hereinafter the same applies in this subparagraph) under the 「Inland Fisheries Act" and the 「Aquaculture Industry Development Act" (limited to inland aquaculture under Article 10(1)7 of the same Act and land-based inland aquaculture under Article 43(1)2 of the same Act). c. Land other than that in subparagraphs a and b, where the ratio of annual revenue 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 block, stone, and pipe manufacturing, land for flower sales facilities, land for landscape crop cultivation, land for academies teaching courses in automobile repair, heavy equipment repair, heavy equipment operation, or agriculture, and other similar land, as prescribed by the Ministry of Economy and Finance Ordinance, where the ratio of annual revenue to the value of the land is equal to or higher than the rate prescribed by the Ministry of Economy and Finance Ordinance. 13. Land, not exceeding 660 square meters, that is owned by a single household that does not own a house, and is a vacant lot (referring to land not falling under subparagraphs 1 through 12 and not being used for any purpose), which meets the standards prescribed by the Ministry of Economy and Finance Ordinance, considering the possibility of new housing construction, etc. 14. Other land similar to the land specified in subparagraphs 1 through 13, which is recognized as being directly related to business, considering the land use situation and compliance with relevant laws and regulations, as prescribed by the Ministry of Economy and Finance Ordinance.

In paragraph 2, "annual revenue" refers to the amount calculated according to the methods prescribed in the following subparagraphs. <Amended on Jun. 28, 2013> 1. The revenue for one taxable period of the business related to the land, buildings, facilities, etc., shall be used, and if a deposit or lease contract is concluded for the land, buildings, facilities, etc., and a deposit is received, the amount calculated by applying the formula under Article 65(1) of the 「Enforcement Decree of the Value-Added Tax Act" shall be added. 2. If the revenue for one taxable period is related to both the land, buildings, facilities, etc. (hereinafter referred to as "Subject Land, etc." in this subparagraph) and other land, buildings, facilities, etc. (hereinafter referred to as "Other Land, etc." in this subparagraph), and the actual attribution cannot be distinguished, the revenue for one taxable period related to the Subject Land, etc. shall be calculated according to the following formula: Revenue for one taxable period related to the Subject Land, etc. = Revenue for one taxable period commonly related to the Subject Land, etc. and Other Land, etc. × (Value of the Subject Land for the current taxable period ÷ Sum of the value of the Subject Land and the value of Other Land for the current taxable period). 3. If the period of business operation on the land during one taxable period is less than one year due to reasons such as the commencement or closure of business, transfer of land, prohibition of land use under laws and regulations, or other unavoidable circumstances, the revenue during that period shall be converted to one year to calculate the annual revenue.

When applying the provisions of Article 104-3(1) of the Act, if multiple contiguous parcels of land are used for a single purpose and their total area exceeds the standard area for determining whether it is non-business land (hereinafter referred to as "Standard Area" in this paragraph), the land in whole or in part exceeding the Standard Area shall be deemed as follows, according to the order of priority in each subparagraph of the following subparagraphs: 1. When there are no buildings or facilities on the land: a. Land acquired later. b. If the acquisition dates are the same, the land chosen by the resident. 2. When there are buildings or facilities on the land: a. Among the land excluding the floor area of the building or the horizontal projection area of the facility, the land acquired later. b. If the acquisition dates are the same, the land chosen by the resident.

When applying Article 104-3(1) of the Act, the classification of industries shall follow the Korean Standard Industrial Classification published by the head of the Statistics Korea, unless otherwise provided in this Decree. <Amended on Feb. 4, 2009, Oct. 1, 2025>