'Amendment to the Enforcement Decree of the Act on the Development of Abandoned Mine Areas and Establishment of the Enforcement Decree of the Korea Mine Reclamation Corporation Act' Approved at the Cabinet Meeting'
[Sejong=Asia Economy Reporter Joo Sang-don] Going forward, the standard for the Abandoned Mine Area Development Fund paid by Kangwon Land will change to the amount obtained by deducting the annual total amount paid to customers from the annual total amount received from casino customers.
The Ministry of Trade, Industry and Energy announced that the partial amendment to the Enforcement Decree of the Act on the Development of Abandoned Mine Areas (Abandoned Mine Act), which includes this content, was approved at the Cabinet meeting on the 24th (Tuesday).
Earlier, the Abandoned Mine Act amended in March changed the payment standard for the Abandoned Mine Area Development Fund from '25% of the profits from casino business, tourist hotels, and integrated resort facilities' to '13% of the total casino sales.' The standard for total casino sales was delegated to the enforcement decree.
Accordingly, through the amendment of the enforcement decree, it was clarified that 'total casino sales' means the amount obtained by deducting the annual total amount paid to customers from the annual total amount received from customers in relation to casino operations.
An official from the Ministry of Trade, Industry and Energy said, "With the amendment of the Abandoned Mine Act and its enforcement decree, the payment standard for the Abandoned Mine Area Development Fund has changed, so the fund payment will be made regardless of Kangwon Land's profit or loss, and stable financial support for abandoned mine areas is expected in the future." He added, "It is expected that an additional 5 trillion KRW of the Abandoned Mine Area Development Fund will be created, with 200 billion KRW annually until the application deadline of the Abandoned Mine Act in 2045."
Along with this, at the Cabinet meeting on the same day, the establishment decree of the 'Korea Mine Reclamation Corporation Act,' which will take effect from the 10th of next month and stipulates delegated matters, was also approved. The main content of the Korea Mine Reclamation Corporation Act is to integrate the Korea Mine Reclamation Corporation and the Korea Mineral Resources Corporation to establish the Korea Mine Reclamation Corporation and increase the statutory capital to 3 trillion KRW.
According to the established enforcement decree, the corporation must register its establishment with its purpose, name, main office location, and capital. In addition, when relocating the main office, it must register the relocation within three weeks, and when changing the purpose or name, it must register the change within two weeks. Regarding the loan procedures for mining funds, loans will be provided secured by mining rights and mining facilities, and if the loan is used for purposes other than intended or recovery is difficult, demands for additional collateral provision will be possible.
It also stipulates the qualifications of members of the Overseas Asset Management Committee and the composition of the secretariat. The qualifications for members of the Overseas Asset Management Committee are public officials of grade 3 or higher in charge of energy and resource affairs, those who have worked for 15 years or more in overseas resource development, finance, law, accounting, and financial related institutions or organizations, or those who have obtained lawyer or certified public accountant qualifications and have worked for 10 years or more in related fields.
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