Article 1(Purpose) #
The purpose of this Act is to raise the international competitiveness of the Korean maritime industry and contribute to the development of the national economy by determining matters necessary for fostering a healthy maritime industry.
Article 2(Definitions) #
The definitions of terms used in this Act shall be as follows: <Amended by Act No. 4546, Mar. 10, 1993>
1. The term “mamritime transport businessman” means a person conducting a maritime transport business in accordance with the provisions of subparagraph 1 of Article 2 of the Marine Transport Act; and
2. The term “planned shipbuilding” means shipbuilding under the economic or financial support of the government at a domestic shipbuilding yard by a specific end-user selected by the government.
Article 3(Basic Plan for Fostering Maritime Transport Industry) #
(1) The Government shall each year formulate a basic plan for fostering maritime transport industry (hereinafter referred to as the “basic plan”) for the following year and give a public notice thereof.
(2) The basic plan formulated in accordance with the provisions of paragraph (1) above shall contain the following matters:
1. Matters concerning international trends in maritime transports;
2. Matters concerning supply and demand, improvement and replacement of vessels;
3. Matters concerning improvements in the balance of international payment relating to maritime transports;
4. Matters concerning international cooperation relating to maritime transport;
5. Matters concerning establishment of international sea routes and adjustment of fleet vessels;
6. Matters concerning orders to put vessels in services on sea routes;
7. Matters concerning activities of mutual aid and installation and operation of common facilities regarding maritime transport;
8. Matters concerning training of seamen and promotion of their welfare; and
9. Other matters necessary for fostering maritime transport industry.
Article 4(Assistance to Maritime Transport Industry) #
(1) When a maritime transport businessman conducts any of the following business activities within the scope of the basic plan and a financial assistance thereto is deemed necessary, the Government may subsidize,
cause, or arrange for a part of the capital required to be loaned in accordance with the Presidential Decree thereof:
1. Importation of vessels to be operated between domestic ports;
2. Improvement or replacement of vessel facilities;
3. Repairing vessels; and
4. Shipbuilding pursuant to the planned shipbuilding.
(2) When the business under paragraph (1) 1 or 4 is being conducted in order to replace old vessels, the government may give a priority in subsidizing, fiancing, or arranging the capital therefor.
Article 5(Designated Maritime Transport Businessman) #
(1) When it is deemed necessary to raise the international competitiveness of maritime transport businessmen, the Minister of Maritime Affairs and Fisheries may designate as a beneficiary of priority support a person operating a foreign liner freight transport business or a foreign tramp freight transport business in accordance with the provisions of Article 25 of the Marine Transport Act who satisfies the standards set in accordance with the Presidential Decree hereof in regard to the number, tonnage, and loading capacity of vessels in his possession and may give a preference in the governmental assistance. <Amended by Act No. 4546, Mar. 10, 1993; Act No. 5454, Dec. 13, 1997>
(2) Matters necessary in respect to the standards or method of the designation pursuant to the provisions of paragraph (1) above shall be determined by the Presidential Decree.
Article 6(Assistance to Designated Maritime Transport Businessman, etc.) #
(1) In regard to each of the following subparagraphs, the Minister of Maritime Affairs and Fisheries may give a preferential assistance to the maritime transport businessman designated in accordance with the provisions of Article 5 above (hereinafter referred to as the “designated maritime transport businessman”) over other maritime transport businessmen: <Amended by Act No. 5454, Dec. 13, 1997>
1. Selection of the end-user of vessels under the planned shipbuilding;
2. Licensing the establishment of international liner routes;
3. transport cargoes designated in accordance with the provisions of Article 16; and
4. Other matters determined by the Presidential Decree as necessary for the fostering of the maritime transport industry.
(2) When it is deemed necessary to foster the designated maritime transport businessman or for stable transport of import-export cargoes, the Minister of Maritime Affairs and Fisheries may order the designated maritime transport businessman to acquire or improve his vessels; improve the financial structure; or transport cargoes designated in accordance with the provisions of Article 16. <Amended by Act No. 5454, Dec. 13, 1997>
(3) The Minister of Maritime Affairs and Fisheries may cancel the designation if the designated maritime transport businessman fails to follow the orders issued in accordance with the provisions of paragraph (2) above. <Amended by Act No. 5454, Dec. 13, 1997>
Article 6-2(Hearing) #
Where the Minister of Maritime Affairs and Fisheries desires to cancel designation under Article 6 (3), he shall hold a hearing.
[This Article Newly Inserted by Act No. 5453, Dec. 13, 1997]
Article 7(Maritime Transport Industry Rationalization Plan) #
(1) The Minister of Maritime Affairs and Fisheries may devise a Maritime transport Industry Rationalization Plan (hereinafter referred to as the “rationalization plan”) and carry out a maritime transport industry rationalization project (hereinafter referred to as the “rationalization project”) for sound fosterage and development of the maritime transport industry. <Amended by Act No. 5454, Dec. 13, 1997>
(2) The rationalization plan in accordance with the provisions of paragraph (1) above, shall contain the following matters:
1. Matters concerning systematization and of cooperation of the maritime transport industry;
2. Matters concerning reorganization and adjustment of fleet of ship;
3. Matters concerning the adjustment of sea routes;
4. Matters concerning the prevention of unfair trade practices;
5. Matters concerning the assistance for the rationalization project; and
6. Other matters deemed necessary to carry out the rationalization project.
(3) The formation of the rationalization plan by the Minister of Maritime Affairs and Fisheries in accordance with the provisions of paragraph (1) above shall be subject to deliberation and adjustment of an industry rationalization organization to be designated by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>
(4) When a compelling need arises in the process of conducting the rationalization project, the Minister of Maritime Affairs and Fisheries may make any necessary adjustments in regard to implementation of the matters listed in subparagraphs of paragraph (2) above. <Amended by Act No. 5454, Dec. 13, 1997>
(5) In respect to the maritime transport businessman participating in the rationalization project, the Government may provide any assistance deemed necessary based on the rationalization plan.
(6) When it is deemed necessary in carrying out the rationalization project pursuant to the rationalization plan in accordance with the provisions of paragraph (1), the Minister of Maritime Affairs and Fisheries may urge maritime transport businessmen to participate in the rationalization project, prevent excessive competition among those maritime transport businessmen participating in the rationalization project, or take necessary measure to maintain order on sea routes. <Amended by Act No. 5454, Dec. 13, 1997>
(7) In the event maritime transport businessmen participating in the rationalization project do not follow the measures taken in accordance with the provisions of paragraph (6) above, the Minister of Maritime Affairs and Fisheries may suspend his assistance under the provisions of paragraph (5) above or may request the head of a pertinent central administrative agency to suspend the assistance. <Amended by Act No. 5454, Dec. 13, 1997>
Article 8(Establishment of Funds for Planned Shipbuilding, etc.) #
(1) The Government may each year establish funds necessary for effective assistance of the business of constructing vessels according to the planned shipbuilding as determined by the Presidential Decree hereof.
(2) The Minister of Maritime Affairs and Fisheries shall, upon consultation with the head of a pertinent central administrative agency, prepare the standards for the selection of the end-user of vessels constructed under the planned shipbuilding. <Amended by Act No. 5454, Dec. 13, 1997>
(3) The end-user selection standards of paragraph (2) above shall include at least the following subparagraphs:
1. A long term freight transport contract; and
2. Construction of an economical model of vessels.
Article 9(Reorganization of Structure of Fleet of Vessels Based on New Shipbuilding) #
When it is deemed necessary to raise international competitiveness of the maritime transport industry, the Minister of Maritime Affairs and Fisheries may urge maritime transport businessmen to reorganize the structure of his fleet of vessels with newly constructed vessels (including vessels imported from foreign countries). <Amended by Act No. 5454, Dec. 13, 1997>
Article 10(Permission for Establishment of Overseas Branch Offices) #
(1) When a maritime transport businessman intends to establish an overseas branch office or a place of business, he must obtain a permission from the Minister of Maritime Affairs and Fisheries in accordance with the Ordinance of the Ministry of Maritime Affairs and Fisheries. The same shall apply when the details of the permitted matters are to be amended. <Amended by Act No. 5454, Dec. 13, 1997>
(2) A maritime transport businessman who is found appropriate under the standards determined in accordance with the Ordinance of the Ministry of Maritime Affairs and Fisheries may establish an overseas branch office or a place of business after reporting to the Minister of Maritime Affairs and Fisheries in accordance with the Ordinance of the Ministry of Maritime Affairs and Fisheries notwithstanding the provisions of paragraph (1) above. The same shall apply when the details of the reported matters are to be amended. <Amended by Act No. 5454, Dec. 13, 1997>
Article 11(Fostering Maritime Transport Organizations) #
The Government shall foster maritime transport business organizations the purpose of which is to improve the economic position and promote the international activities of the maritime transport businessmen.
Article 12(Assistance for Maritime Mutual Aid Project, etc.) #
The Government may assist or arrange for a financing in accordance with the Presidential Decree in regard to a maritime mutual aid project or the establishment or operation of common facilities by the maritime transport organizations.
Article 13(Operation of Consultation Committee between Owners of Vessels and Cargoes) #
The maritime transport businessmen and owners of the cargoes may establish and operate a consultation committee for transport of cargoes and mutual exchange of information.
Article 14(Grant of Encouragement Fund) #
The Government may, in accordance with the Presidential Decree, grant encouragement fund to a maritime transport businessmen who is engaged in international shipping and has made a substantial contribution to the development of international maritime transport.
Article 15(Assistance Respecting International Sea Route) #
In the event a maritime transport businessmen commences regular services on international sea routs in order to enhance foreign trade and suffers a loss due to such commencement the Government may grant a subsidy in accordance with the Presidential Decree hereof.
Article 16(Utilization for Korean Flag Vessels, etc.) #
(1) A person who intends to transport by vessel major cargoes as prescribed in the Presidential Decree (hereinafter referred to as the “designated cargoes”) shall utilize Korean flag vessels (including foreign vessels chartered by a maritime transport businessman under the condition that Korean nationality shall be obtained for such vessels; hereinafter the same shall apply): Provided, That this shall not apply where this constitutes a violation of an international treaty or an agreement regarding maritime transport; where the freight fare exceeds the fixed schedule determined by the Presidential Decree; or where a Korean vessel cannot be used under the Ordinance of the Ministry of Maritime Affairs and Fisheries. <Amended by Act No. 5454, Dec. 13, 1997>
(2) When it is deemed necessary for the establishment of a long term stable system for the transport of the designated cargoes, the Minister of Maritime Affairs and Fisheries may request the head of a central administrative agency with competent jurisdiction in regard to the designated cargo concerned to advise such cargo-owner to conclude a long term transport contract. <Amended by Act No. 5454, Dec. 13, 1997>
(3) When the head of a central administrative agency in relation to the affairs of his competent jurisdiction intends to approve a maritime transport contract to be concluded by a foreign vessel, and the cargo concerned is a designated cargo under the provisions of paragraph (1) above, he shall consult in advance with the Minister of Maritime Affairs and Fisheries. The same shall apply when there is to be an approval of change in the content of the contract. <Amended by Act No. 5454, Dec. 13, 1997>
(4) One who intends to transport cargoes regularly by vessel in the area where liner vessels of the Republic of Korea are in service shall utilize the vessels of the Republic of Korea to the extent permitted by the international treaties setting out the transport ratio among the nations in order to achieve equality with the trading nations concerned. This shall not apply when the Ordinance of the Ministry of Maritime Affairs and Fisheries provides otherwise. <Amended by Act No. 5454, Dec. 13, 1997>
Article 17(Order to Put Vessels in Service on Sea Route) #
(1) When it is deemed necessary for fostering the maritime transport industry and the public interests, the Minister of Maritime Affairs and Fisheries may order a maritime transport businessman who received assistance or financing under this Act (excluding the domestic passenger transport businessman) to put vessels in service on a domestic or international sea route for a designated period of time. <Amended by Act No. 5454, Dec. 13, 1997>
(2) The Minister of Maritime Affairs and Fisheries shall provide a just compensation in accordance with the Presidential Decree hereof to one who has sustained damage by putting his vessels in service pursuant to an order issued in accordance with the provisions of paragraph (1) above. <Amended by Act No. 5454, Dec. 13, 1997>
Article 18(Replacement of Vessels, etc.) #
(1) In the event the Minister of Maritime Affairs and Fisheries deems that a vessel is so old that its operation or its service in a designated route is unsuitable for fostering the maritime transport industry and the public interests, he may order the replacement of such vessel or the improvement in the facilities thereof. <Amended by Act No. 5454, Dec. 13, 1997>
(2) In regard to any compensation for damage sustained by the replacement of vessels in accordance with the provisions of paragraph (1) above, the provisions of Article 17 (2) shall apply mutatis mutandis.
(3) When the person who was ordered to replace his vessels in accordance with the provisions of paragraph (1) above is found appropriate according to the standards under the provisions of Article 8 (2) and (3), the Minister of Maritime Affairs and Fisheries may select such a person as an end-user of a vessel constructed under the planned shipbuilding in preference to other maritime transport businessmen. <Amended by Act No. 5454, Dec. 13, 1997>
Article 19(Adjustment of Sea Route, etc.) #
When the Minister of Maritime Affairs and Fisheries deems it necessary for maintaining order and balance of supply and demand of shipping space according to each sea route thereby contributing to insuring smooth maritime transport, and for fostering the maritime transport industry, he may order the maritime transport businessman who has received financing or assistance under this Act to regulate sea routes and his vessels in service or take aboard navigational apprentices. <Amended by Act No. 5454, Dec. 13, 1997>
Article 20(Suspension of Assistance, etc.) #
In the event a maritime transport businessman who has received financing or assistance under this Act falls under any of the following subparagraphs, the Minister of Maritime Affairs and Fisheries may suspend such assistance of fiancing under this Act: <Amended by Act No. 5454, Dec. 13, 1997>
1. Establishing an overseas branch office or a place of business in violation of the provisions of Article 10;
2. Failing to follow the order to put vessels in service on a certain sea route in accordance with the provisions of Article 17; and
3. Failing to follow the order issued in accordance with the provisions of Article 19.
Article 21(Supervision) #
(1) A person who has received assistance or financing under this Act shall not use the funds financed for purposes other than for which if was granted.
(2) The Minister of Maritime Affairs and Fisheries shall supervise the person who has received assistance or financing in the proper use thereof. <Amended by Act No. 5454, Dec. 13, 1997>
Article 22(Maritime Transport Promotion Deliberation Committee) #
(1) A Maritime transport Promotion Deliberation Committee shall be established under the Minister of Maritime Affairs and Fisheries in order to deliberate upon important policy matters upon the request of the Minister of Maritime Affairs and Fisheries regarding the fostering the maritime transport industry. <Amended by Act No. 5454, Dec. 13, 1997>
(2) Matters necessary for the organization and operation of the Maritime transport Promotion Deliberation Committee shall be determined in accordance with the Presidential Decree hereof.
Article 23(Exceptions concerning Mortgage of Vessels) #
In the event of importing, chartering, or building vessels in order to operate a business in accordance with the provisions of Article 4 (1) 1 or 4, a financing may be made under the condition that the vessels concerned will be mortgaged as soon as the ownership is acquired even though the acquisition of ownership of the said vessels is not yet registered.
Article 24(Measure to Fulfill International Treaties) #
When it is deemed necessary in order to comply with international treaties which determine the ratio of transport among nations or other matters necessary for the fulfillment of treaties relevant to the transport, the Minister of Maritime Affairs and Fisheries may take necessary measures such as adjustment in the services provided by vessels in each international route, determination of the ratio of transport among maritime transport businessmen, or establishment of consultative organizations thereon. <Amended by Act No. 5454, Dec. 13, 1997>
Article 25(Counter Measures) #
(1) When a maritime transport businessman has received disadvantageous treatment, against the principles of reciprocity and equality, from a foreign government, an organization of foreign maritime transport businessmen, or a foreign maritime transport businessman who is member of such an organization, the government may take necessary countermeasures against the vessels of the nation in case of the foreign government, the vessels of the members of the organization in case of an organization or the vessels of the foreign maritime transport businessman in case of a businessman.
(2) When a foreign maritime transport businessman is deemed to have committed acts hindering the development of the maritime transport business of the Republic of Korea, or to have disrupted the order of the trading routes, the government may take measures against the foreign maritime transport businessman concerned, such as restricting the entry of its vessels into Korean ports.
(3) Necessary matters concerning measures as referred to in paragraphs (1) and (2) above shall be provided for in the Presidential Decree hereof.
Article 26(Penal Provisions) #
A person falling under any of the following subparagraphs shall be punished by imprisonment for not more than five years or by a fine of not more than ten million won:
1. A person who has received a grant of encouragement fund or subsidy under Article 12, 14 or 15 hereof through fraudulent or other dishonest means; and
2. A person who has used the funds for a purpose other than for which they were provided in violation Article 21 (1) hereof.
Article 27(Joint Penal Provisions) #
When a representative of a juristic person or an agent, employee, or servant of a juristic person or an individual violates the provisions of Article 26 herein in connection with the business of the juristic person or individual, such juristic person or individual shall be punished by fine in addition to the punishment of the offender.
Article 28(Enforcement Decree) #
Matters necessary for the enforcement of this Act shall be provided for in the Presidential Decree.