This Act is enacted to promote a well-planned urban land redevelopment, revitalize urban functions, and improve urban living environments and landscapes for the public interest.

The authority as referred to in this Act shall be the “Ministry of Interior” of the Central Government; the Municipal Governments, and the County (City) Government.

The definitions of the terminologies used in this Act are as follows:
1. Urban Renewal: Refers to the implementation of reconstruction, renovation, or maintenance within the urban plan area by the procedures instituted in this Act.
2. Renewal area: a demarcated area that changed and underwent redevelopment by the procedures outlined in this Act or the Urban Planning Law.
3. Urban renewal plan: a set of urban renewal project plan guidelines established, following the procedures stated in this Act.
4. Urban renewal project: Refers to the implementation of reconstruction, renovation, or maintenance within the renewal unit.
5. Renewal unit: a specified area in which the urban renewal project is conducted.
6. Implementer: A government agency (institution), designated legal entity or institution, urban renewal association, or urban renewal project corporation.
7. Rights transfer: the landowners and legal building owners in a reconstruction section within a renewal unit, holders of other rights, the implementer, and/or parties entering agreements on the provision. After the implementation is completed, the updated land, buildings, or royalties, will be distributed according to the ratio of the values of the rights before the update and the amount of funds provided.

The processing of the urban renewal is divided into the following three methods:
1. Reconstruction: Refers to the demolishing of the former buildings within the renewal unit, and the resettlement of the tenants, improvement of public facilities within the area, and changes in the land-use characteristics of the area or its zonal density.
2. Renovation: Refers to remodeling, updating buildings, or, improving amenities within the renewal unit, and improvement of the public facilities.
3. Maintenance: Refers to the strengthening of management within the renewal unit, improvement of the public facilities, and the maintenance thereof in good condition.
An urban renewal project may be conducted in two or more of the abovementioned methods.