INDUSTRIAL CLUSTER DEVELOPMENT AND FACTORY ESTABLISHMENT ACT

Article 1(Purpose) #

The purpose of this Act is to contribute to the sound development of the national economy through continued industrial development and balanced regional development, by promoting industrial clustering, supporting the efficient establishment of factories, and performing systematic management of industrial sites and industrial complexes.

[This Article Wholly Amended on Feb. 6, 2009]

Article 2(Definitions) #

The terms used in this Act are defined as follows: <Amended on Apr. 12, 2010; Jul. 25, 2011; Jan. 21, 2014; Dec. 10, 2019; Dec. 8, 2020; Jun. 15, 2021; Oct. 19, 2021; Jan. 9, 2024>

1. The term "factory" means a place of business prescribed by Presidential Decree for conducting manufacturing business prescribed by Presidential Decree, equipped with buildings or structures, manufacturing facilities, such as machinery or equipment which constitutes manufacturing processes, and their ancillary facilities (hereinafter referred to as "manufacturing facilities, etc.");

2. Deleted; <Apr. 12, 2010>

3. Deleted; <Apr. 12, 2010>

4. Deleted; <Apr. 12, 2010>

5. The term "host area" means an area designated and publicly announced pursuant to Article 23 to establish an industrial complex necessary for implementing national policies, such as promoting relocation of factories to provinces;

6. The term "industrial clustering" means forming a cluster that creates synergy through mutual links by concentrating companies, research institutes, universities and corporate-support facilities in a specific area;

7. The term "knowledge-based industrial cluster zone" means a zone designated and publicly announced pursuant to Article 22 to promote the cluster of knowledge-based industries;

8. The term "knowledge-based industries" means highly knowledge-intensive industries prescribed by Presidential Decree;

8-2. The term "university-industry collaboration zone" means an area designated and publicly notified pursuant to Article 22-4 to promote the clustering of the universities, companies, and research institutes that can provide education and conduct research and development activities according to the demands of companies;

8-3. The term "high-tech investment" means investment for the purpose of research and production of advanced technologies and advanced products publicly notified under Article 5(1) of the Industrial Development Act or for the purpose of conducting business accompanying new growth engine industrial technologies under Article 121-2(1)1 of the Act on Restriction on Special Cases concerning Taxation;

8-4. The term "high-tech investment zone" means a zone designated and publicly notified pursuant to Article 22-6 to promote high-tech investment;

9. The term "industrial cluster infrastructure" means facilities to facilitate industrial clustering, such as research and development facilities, corporate-support facilities, educational and training facilities for technical human resources, and distribution facilities;

10. The term "industrial infrastructure" means basic facilities necessary for production activities of enterprises, such as water supply facilities, traffic and communications facilities, energy facilities, and distribution facilities;

11. The term "industrial complex structure improvement project" means a project to actively attract enterprises, etc. and to enhance the competitiveness of occupant enterprises by switching the industry type of occupant enterprises in the industrial complex to high value-added one, strengthening corporate-support services, maintaining, repairing, improving and expanding the industrial cluster infrastructure, industrial infrastructure, public facilities in industrial complexes (limited to public facilities prescribed by Presidential Decree; hereinafter referred to as "public facilities"), etc., and conducting other relevant business;

12. The term "competitiveness strengthening projects for industrial clusters" means a project to strengthen the competitiveness of an area where enterprises, universities, research institutes and support institutions defined in subparagraph 19 are clustered at an industrial complex to exchange and connect knowledge, information, technology, etc. and mutually cooperate (hereinafter referred to as "industrial clusters");

13. The term "knowledge industry center" means a multi-story complex prescribed by Presidential Decree which can be occupied by multiple persons engaged in a manufacturing business, knowledge business, information and communications business and support facilities;

14. The term "industrial complex" means a national industrial complex, general industrial complex, urban high-tech industrial complex or agro-industrial complex designated and developed pursuant to Articles 6, 7, 7-2 and 8 of the Industrial Sites and Development Act;

14-2. "Smart-green industrial complex" means an industrial complex designated pursuant to Article 45-11, which promotes digitalization, self-sufficiency of energy, and eco-friendly environment of occupant enterprises, industrial cluster infrastructure, industrial infrastructure, public facilities, etc.;

14-3. "Smart-green industrial complex facilitation project" means projects to improve the productivity of the main industry, to boost energy efficiency, to disseminate new and renewable energy, and to promote creation of new industries and jobs, by integrating intelligent information technology defined in subparagraph 4 of Article 2 of the Framework Act on Intelligent Informatization (hereinafter referred to as "smart information technology") to innovate the manufacturing process, thereby enhancing the competitiveness of the industrial complex;

15. The term "management of industrial complex" means any of the following affairs, which are prescribed by Presidential Decree:

a. Sale, lease, and ex post facto management of sites and facilities in an industrial complex;

b. Installation, maintenance, repair and improvement of infrastructure prescribed by Presidential Decree in an industrial complex;

c. Support for business activities of occupant enterprises and support institutions;

16. The term "authorized administrator" means a person who has the authority to manage an industrial complex pursuant to Article 30(1);

17. The term "management agency" means a person who manages an industrial complex pursuant to Article 30(2);

18. The term "occupant enterprise" means an enterprise qualified under Presidential Decree, which has entered into an occupancy agreement pursuant to Article 38(1) or (3), among those who intend to operate manufacturing business, knowledge business, information and communications business, resource storage business and other business prescribed by Presidential Decree in an industrial complex;

19. The term "support institution" means a person qualified under Presidential Decree which has concluded an occupancy agreement pursuant to Article 38(3), among those who intend to engage in financial business, insurance business, medical business, educational business, and other business prescribed by Presidential Decree necessary to assist occupant enterprises in an industrial complex or to revitalize the local economy;

20. The term "establishment of a factory" means constructing or expanding a factory;

21. The term "construction of a factory" means constructing a new building (including construction of a structure) or installing manufacturing facilities, etc. by changing the use of the existing building to that of a factory;

22. The term "enlargement of a factory" means enlarging a building area or the site area of a factory registered pursuant to Article 16(1);

23. The term "change in industry types" means switching the industry type of a factory the establishment, etc. of which has been approved under Article 13 or a factory registered under Article 16 to another industry type (referring to an industry type determined based on the standards on factory sites under Article 8) or adding another industry type to the existing type of the factory.

[This Article Wholly Amended on Feb. 6, 2009]

Article 3(Master plans for promotion of industrial clustering) #

(1) The Minister of Trade, Industry and Resources shall formulate and publicly announce a five-year master plan for promoting industrial clustering (hereinafter referred to as "master plan for promoting industrial clustering") covering all national territory. The same shall apply to any revision to such master plan. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) A master plan for promoting industrial clustering shall contain the following: <Amended on Apr. 12, 2010>

1. Matters concerning the demand for sites of industries with high growth potential prescribed by Presidential Decree, clustering and specialization for each region and plans to forge links between them;

2. Matters concerning industrial sites and the supply of and demand for human resources necessary for facilitating industrial clustering by region;

3. Matters concerning the expansion of industrial cluster infrastructure;

4. Matters concerning assistance for any region where industries remain backward or inactive;

5. Other matters concerning industrial clustering and development of regional industries.

(3) When the Minister of Trade, Industry and Energy intends to formulate or amend a master plan for promoting industrial clustering, he or she shall hear from the Special Metropolitan City Mayor, Integrated Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or the Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") and consult with the Minister of Land, Infrastructure and Transport and the head of the relevant central administrative agency; provided, this shall not apply to revisions to insignificant matters prescribed by Presidential Decree. <Amended on Mar. 23, 2013; May 18, 2015; Oct. 1, 2025; Mar. 5, 2026>

(4) When the Minister of Trade, Industry and Energy intends to formulate or amend a master plan for promoting industrial clustering, he or she shall ensure that such master plan accords with the following plans: <Amended on Apr. 22, 2009; Apr. 14, 2011; Mar. 23, 2013; Mar. 20, 2018; Jun. 9, 2023; Oct. 1, 2025>

1. A comprehensive national land plan pursuant to Article 6(2) of the Framework Act on the National Land;

2. A comprehensive plan for the Local Era under Article 6 of the Special Act on Local Autonomy, Decentralization, and Balanced Regional Development;

3. An urban or Gun plan pursuant to subparagraph 2 of Article 2 of the National Land Planning and Utilization Act;

4. Seoul Metropolitan area readjustment plan pursuant to subparagraph 2 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act;

5. An industrial site supply plan pursuant to Article 5-2 of the Industrial Sites and Development Act.

(5) Where the head of a central administrative agency intends to perform or promote a project related to industrial development, he or she shall ensure that such project accords with a master plan for promoting industrial clustering.

[This Article Wholly Amended on Feb. 6, 2009]

Article 3-2(Formulation of regional industry promotion plans) #

(1) A Mayor/Do Governor and the head of a large city (referring to the mayor of a metropolis with a population of at least 500 thousand persons under Article 198(1) of the Local Autonomy Act; hereinafter the same shall apply) may formulate a five-year regional industry promotion plan to develop local industries, such as boosting industrial clustering in a district under its jurisdiction; In such cases, the plan shall accord with a master plan for promoting industrial clustering. <Amended on Jul. 25, 2011; Feb. 18, 2020; Jan. 12, 2021; Mar. 5, 2026>

(2) The Minister of Trade, Industry and Resources may give assistance necessary for promoting regional industries, such as industrial clustering. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 3-3(Industrial complex day) #

(1) In order to propagate the importance of industrial complexes to citizens and to commemorate economic achievements created in industrial complexes, September 14 of each year shall be designated as the Industrial Complex Day.

(2) The Government shall hold a memorial event on the Industrial Complex Day.

[This Article Added on Nov. 15, 2022]

Article 4(Succession of effect of actions) #

Procedures and other acts under this Act shall be binding and inure to the benefit of the factory owner, factory occupant, and successor-in-interest.

[This Article Wholly Amended on Feb. 6, 2009]

Article 5 #

Deleted. <Feb. 6, 2009>

Article 6(Surveys on industrial sites) #

(1) The Minister of Trade, Industry and Resources may conduct a necessary survey on industrial sites, etc. (hereinafter referred to as "site survey") for the following matters, as prescribed by Presidential Decree: <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

1. Formulation of a master plan for promoting industrial clustering;

2. Proper operation of industrial sites;

3. Establishment of standards on factory sites;

4. Preparation of management guidelines for industrial complexes;

4-2. Management of industrial cluster infrastructure and industrial infrastructure, etc.;

5. Other matters deemed necessary by the Minister of Trade, Industry and Resources concerning industrial sites.

(2) If deemed necessary for conducting site surveys under paragraph (1), the Minister of Trade, Industry and Resources may request cooperation from the Mayor/Do Governor and the heads of relevant organizations, such as the Korea Industrial Complex Corporation under Article 45-17 (hereinafter referred to as the "Corporation"), Chambers of Commerce and Industry or the Korea Chamber of Commerce and Industry under the Chambers of Commerce and Industry Act, and the Korea Federation of Small and Medium Business under the Small and Medium Enterprise Cooperatives Act. In such cases, the Mayor/Do Governor and the heads of the relevant organizations, upon receipt of a request, shall comply with such request in the absence of good cause. <Amended on Apr. 12, 2010; Mar. 23, 2013; Dec. 8, 2020; Oct. 1, 2025>

(3) The Minister of Trade, Industry and Resources shall notify the Minister of Land, Infrastructure and Transport of the findings of a survey on industrial sites prescribed in paragraph (1). <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

(4) Pursuant to paragraph (3), the Minister of Land, Infrastructure and Transport notified of the findings of a survey on industrial sites shall reflect such findings in the guidelines for formulating a supply plan for industrial sites prescribed in Article 5-2 of the Industrial Sites and Development Act, unless there exist any extenuating grounds. <Added on Apr. 12, 2010; Mar. 23, 2013>

[This Article Wholly Amended on Feb. 6, 2009]

Article 6-2(Installation and operation of Factory Establishment Management Information System) #

(1) In order to efficiently handle the following affairs, the Minister of Trade, Industry and Resources may install and operate an electronic data processing system (hereinafter referred to as "Factory Establishment Management Information System"): <Amended on Jul. 25, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. Approval for factory establishment;

2. Smooth supply of and demand for data on factory establishment, etc.;

3. Collection and analysis of data necessary for formulating policies on industrial clustering and factory establishment;

4. Other affairs determined by the Minister of Trade, Industry and Resources.

(2) The head of a local government, or a management agency may have the following applications, reports, etc. (hereinafter referred to as "electronic application, etc.") filed through the Factory Establishment Management Information System: <Added on Jul. 25, 2011; Dec. 10, 2019>

1. Application for approval, permission, registration, confirmation, etc. referred to in the main clause of Article 13(1) and (3) of that Article, Articles 13-2, 13-3, 14, 14-2, 14-3, 16, 16-2, 20, 21 and 28-2(1) and (5);

2. Reporting referred to in the proviso to Articles 13(1), 14, 15, 28-2(2), 39(3), 40(2) and 43(2);

3. Application for an occupancy agreement referred to in Articles 38, 38-2 and 40(3);

4. Submission of reports and materials referred to in Article 48;

5. Submission of other applications or materials prescribed by Presidential Decree.

(3) The head of a local government, or a management agency may grant or notify approval, permission, acceptance, etc. of electronic applications, etc. or handle other affairs prescribed by Presidential Decree through the Factory Establishment Management Information System. <Added on Jul. 25, 2011>

(4) For the operation of the Factory Establishment Management Information System, the Minister of Trade, Industry and Resources may request the heads of relevant agencies, such as the relevant central administrative agencies, local governments, public institutions referred to in Article 4 of the Act on the Management of Public Institutions or government-funded institutions, to provide necessary materials or information. In such cases, the head of an agency so requested shall comply, except in extenuating circumstances. <Amended on Jul. 25, 2011; Mar. 23, 2013; Oct. 1, 2025>

(5) Matters necessary for operating the Factory Establishment Management Information System shall be prescribed by Presidential Decree. <Amended on Jul. 25, 2011>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Jul. 25, 2011]

Article 6-3(Use of data of Factory Establishment Management Information System) #

(1) The Minister of Trade, Industry and Resources may allow the heads of relevant central administrative agencies, local governments, or public institutions referred to in Article 4 of the Act on the Management of Public Institutions to use data on the Factory Establishment Management Information System (hereinafter referred to as "electronic data"), without obstructing the efficient handling of affairs concerning approval of factory establishment, etc. and violating the standards for protection of personal information of factory establishers, etc. prescribed by Presidential Decree. <Amended on May 18, 2015; Oct. 1, 2025>

(2) Deleted. <May 18, 2015>

(3) The Minister of Trade, Industry and Resources may charge usage fees on persons who intend to use electronic data pursuant to paragraph (1), as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(4) Matters such as the procedures for use of electronic data referred to in paragraph (1) shall be prescribed by Presidential Decree. <Amended on May 18, 2015>

[This Article Added on Jul. 25, 2011]

Article 6-4(Direction and supervision of users of electronic data) #

(1) When the Minister of Trade, Industry and Resources may, where deemed necessary, direct or supervise persons using electronic data pursuant to Article 6-3 with respect to matters concerning the possession, management, etc. of electronic data. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Matters regarding the procedures, etc. for direction and supervision referred to in paragraph (1) shall be prescribed by Presidential Decree.

[This Article Added on Jul. 25, 2011]

Article 6-5(Education of users of Factory Establishment Management Information System) #

(1) The Minister of Trade, Industry and Resources may provide persons using the Factory Establishment Management Information System with education necessary therefor. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Trade, Industry and Resources may receive the costs for education referred to in paragraph (1), as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Added on Jul. 25, 2011]

Article 7(Establishment of Industrial Site Research Center) #

(1) The Industrial Site Research Center shall be established under the Corporation for the purpose of providing efficient support for, surveying, researching, and advising on activities related to industrial sites for enterprises, such as providing information on the current status of industrial sites both in Korea and abroad. <Amended on Feb. 6, 2009>

(2) Deleted. <Dec. 30, 2002>

(3) Matters necessary for the operation and supervision of the Industrial Site Research Center pursuant to paragraph (1) shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2009>

(4) Deleted. <Mar. 3, 2006>

[This Article Wholly Amended on Feb. 8, 1999]

Article 7-2(Installation of factory establishment support center) #

(1) A factory establishment support center shall be installed under the Corporation in order to render consulting services on site selection for factory establishment, help gain access to various funds, provide guidance on tax reduction and exemption, operate the Factory Establishment Management Information System, conduct various affairs on the establishment of factories (including related affairs, such as application for permission for factory establishment; hereafter the same shall apply in this Article) or conduct such affairs by proxy and perform assistance affairs for factory establishment. <Amended on Feb. 6, 2009; Apr. 12, 2010; Jul. 25, 2011>

(2) Any person who intends to establish a factory may entrust the head of the factory establishment support center prescribed in paragraph (1) (hereinafter referred to as "support center") with affairs concerning factory establishment, such as preparation and submission of documents related to the establishment of his or her factory. <Amended on Feb. 6, 2009>

(3) The head of the support center entrusted with the affairs concerning factory establishment shall transfer the documents to the head of a Si (including the administrative head of a Si and a Special Self-Governing City Mayor under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply)/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) and the head of a relevant administrative agency. In such cases, such documents may be processed through the Factory Establishment Management Information System. <Amended on Feb. 6, 2009; Apr. 12, 2010; Jul. 25, 2011; Dec. 10, 2019>

(4) Deleted. <Aug. 3, 2007>

(5) Matters necessary for the composition, operation, etc. of the support center shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2009>

[This Article Added on Dec. 30, 2002]

Article 7-3(Installation of ombudsman’s office for factory establishment) #

(1) An ombudsman’s office shall be installed under the Corporation to receive, investigate, and deal with corporate bottlenecks or recommendations involving factory establishment; to devise ways to relax or streamline administrative regulation on factory establishment; to work out ways to improve the system for establishment of factories; and to recommend that such improvement measures be implemented by the administrative agencies concerned.

(2) The head of the ombudsman’s office for factory establishment established under paragraph (1) (hereinafter referred to as the "ombudsman’s office") shall perform his or her duty of dealing with bottlenecks, etc. involving factory establishment and may request cooperation from the administrative agencies concerned or other agencies. In such cases, such agencies concerned shall, upon receipt of a request for cooperation, present their opinions within 10 days.

(3) Matters necessary for the composition, operation, etc. of the ombudsman’s office shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 7-4(Establishment of industrial site support group) #

(1) The Mayor/Do Governor may establish and operate an industrial site support group (hereinafter referred to as "site support group") in order to support the selection of sites related to factory establishment and to provide information on factory sites.

(2) Matters necessary for the formation and operation of a site support group shall be prescribed by Presidential Decree.

[This Article Added on Feb. 6, 2009]

Article 8(Standards on factory sites) #

The Minister of Trade, Industry and Resources shall, in consultation with the head of a relevant central administrative agency, determine and publicly notify standards on factory sites (hereinafter referred to as "standards on sites") with respect to matters referred to in the following subparagraphs. The same shall also apply where such standards are altered: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. Matters concerning a type of business, size and the scale of a factory allowed or restricted in each specific use area under the statutes prescribed by Presidential Decree, such as the National Land Planning and Utilization Act;

2. The ratio of the area (hereinafter referred to as "standard factory area ratio") of a factory building, etc. (hereinafter referred to as "factory building, etc.") prescribed by Presidential Decree to the area of a factory site by type of manufacturing business and objects of the application thereof;

3. Matters concerning the prevention of environmental pollution by type of manufacturing business;

4. Matters concerning restrictions on factory sites which may cause environmental pollution.

[This Article Wholly Amended on Feb. 6, 2009]

Article 9(Confirmation of standards on factory sites) #

(1) Where a landowner or any other interested person files an application, the head of a Si/Gun/Gu shall ascertain whether it is possible to establish a factory by the number of land lot on the land in the district under his or her jurisdiction and notify the applicant thereof within 10 days.

(2) The head of a Si/Gun/Gu may publicly notify matters prescribed by Decree of the Ministry of Trade, Industry and Resources, such as areas in which factories are permitted to be established and types of business capable of operating factories which are permitted to be established in the areas, in an official report by the end of February each year. The same shall also apply where the head of a Si/Gun/Gu alters any matter publicly notified. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 10(Succession to rights and duties) #

Any of the following persons shall succeed to rights and duties regarding the factory owned by a person who has obtained approval pursuant to Article 13(1):

1. His or her successor, where a person who has obtained approval pursuant to Article 13(1) passes away;

2. His or her transferee, where a person who has obtained approval pursuant to Article 13(1) transfers the factory;

3. A corporation which continues to survive after merger or a corporation which is incorporated by merger, where a person who has obtained approval pursuant to Article 13(1), who is a corporation, merges.

[This Article Wholly Amended on Feb. 6, 2009]

Article 11(Application of standard factory area ratio) #

(1) A factory building, etc. to which the standard factory area ratio publicly announced pursuant to subparagraph 2 of Article 8 applies shall have the area calculated by applying the standard factory area ratio (hereinafter referred to as "standard factory construction area"); provided, this shall not apply to a site in which the construction of a factory is restricted under other Acts or which is prescribed by Presidential Decree.

(2) If the head of a Si/Gun/Gu or a management agency, upon receipt of a report on the completion of the establishment of a factory pursuant to Article 15, finds that the area of a factory building, etc. falls short of the standard factory construction area referred to in paragraph (1), he or she shall return such report and require a report on the completion of the establishment of the factory to be resubmitted after fulfilling the requirements. <Amended on Mar. 30, 2011; May 18, 2015>

(3) The area of factory buildings, etc. referred to in paragraph (1) includes the portion scheduled to be constructed during the period prescribed by Presidential Decree from the date the factory establishment, etc. is approved pursuant to Article 13.

(4) A method for calculating the standard factory construction area shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 12(Application of standard building area ratios to types of business other than manufacturing business in industrial facilities zones) #

(1) Subparagraph 2 of Article 8 shall apply mutatis mutandis to the ratio of the area of a business building, etc. to the area of a business site of an occupant enterprise that intends to conduct business other than manufacturing business (hereafter referred to as "business building, etc." in this Article) in an industrial facilities zone and complex zone (hereinafter referred to as "industrial facilities zone, etc.") referred to in Article 33(8) (hereinafter referred to as "standard building area ratio"). In such cases, "factory building, etc." and "standard factory area ratio" shall be respectively construed as "business building, etc." and "standard building area ratio." <Amended on Dec. 30, 2014; Dec. 10, 2019>

(2) The standard building area ratio by types of business shall be prescribed by public notice within twice the highest ratio of the standard factory area ratios referred to in subparagraph 2 of Article 8, and the main clause of Article 11(1) and (4) shall apply mutatis mutandis to the methods of application thereof. In such cases, "factory buildings, etc.," "standard factory area ratio" and "standard factory construction area" shall be respectively construed as "business building, etc.," "standard building area ratio" and "standard business building construction area." <Amended on Dec. 30, 2014>

(3) Where a management agency deems that construction at a site in compliance with the standard business building area is likely to cause serious harm to safety or environmental preservation, the standard building area ratio may not apply to such site with approval from an authorized administrator, notwithstanding paragraph (2). <Added on Dec. 30, 2014>

[This Article Added on Mar. 30, 2011]

[Title Amended on Dec. 30, 2014]

Article 13(Approval for establishment of factories) #

(1) A person who intends to construct a new factory or extend the existing one or to alter the type of industry of a factory, the construction area of which is at least five hundred square meters (hereinafter referred to as "factory establishment, etc.") shall obtain approval from the head of a Si/Gun/Gu, as prescribed by Presidential Decree. The same shall also apply where he or she intends to alter any approved matter; provided, where he or she intends to alter any insignificant matter prescribed by Decree of the Ministry of Trade, Industry and Resources of the approved matters, he or she shall report thereon to the head of a Si/Gun/Gu. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Where he or she falls under any of the following subparagraphs, he or she shall be deemed to have obtained approval for the factory establishment, etc. pursuant to paragraph (1):

1. Where he or she obtains approval pursuant to Article 20(2);

2. Where he or she concludes an occupancy agreement and a contract for alteration pursuant to the main clause of Article 38(1) and (2);

3. Where he or she obtains permission, approval or license on the establishment of a factory under other Acts prescribed by Presidential Decree.

(3) Where the construction area of a factory is less than 500 square meters, a person who intends to be deemed to have obtained permission, reporting, licence, approval, cancellation, or abolition of use pursuant to Article 13-2 may also obtain approval for the factory establishment, etc. in accordance with paragraph (1).

(4) When the head of a Si/Gun/Gu receives documents regarding the factory establishment, etc. from the head of the support center pursuant to Article 7-2(3), he or she shall notify the head of the support center as to whether he or she approves the establishment or a reason for delay in processing for approval, within 20 days from the receipt of the documents (the period, where matters of authorization, permission and approval are separately prescribed in the relevant statutes). In such cases, where he or she fails to notify as to whether he or she approves the establishment or a reason for delay in processing for approval within the period, he or she shall be deemed to have approved the establishment on the day following the date the period expired.

(5) Where the head of a Si/Gun/Gu gives notice of a reason for delay in processing for approval pursuant to paragraph (4), he or she may extend the period for approval under paragraph (4) by up to 10 days.

(6) When the head of a Si/Gun/Gu gives notice of disapproval pursuant to paragraph (4), he or she shall clearly state the grounds therefor, and the head of the support center may peruse the documents relevant to such grounds.

(7) The head of a Si/Gun/Gu and a management agency shall keep a factory establishment ledger to enter necessary matters therein and maintain the same.

[This Article Wholly Amended on Feb. 6, 2009]

Article 13-2(Deemed uthorization and permission) #

(1) Where the head of the relevant Si/Gun/Gu has already consulted with the head of a relevant administrative agency (including cases where consultation is omitted pursuant to the proviso to paragraph (5)) pursuant to the main clause of paragraph (5) regarding the following permission, reporting, license, approval, cancellation, abolition of use, etc. (hereinafter referred to as "authorization, permission, etc.") on sites of relevant factory and access roads as at the time when granting approval for the factory establishment, etc. pursuant to Article 13(1), he or she shall be deemed to have been granted the relevant authorization, permission, etc.: <Amended on Jun. 9, 2009; Apr. 12, 2010; Apr. 15, 2010; May 31, 2010; Apr. 14, 2011; Jul. 21, 2011; Jan. 14, 2014; Jan. 19, 2016; Dec. 27, 2016; Oct. 24, 2017; Dec. 10, 2019; Dec. 27, 2022; Mar. 10, 2026>

1. Permission to convert farmland prescribed in Article 34(1) of the Farmland Act, reporting on the conversion of farmland prescribed in Articles 35(1) and 43 of that Act, and approval for the alteration of use prescribed in Article 40(1) of that Act;

2. Permission for and reporting on the conversion of mountainous districts prescribed in Articles 14 and 15 of the Mountainous Districts Management Act, permission for and reporting on the temporary use of mountainous districts prescribed in Article 15-2 of that Act, approval for the alteration of use of land converted into a mountainous district prescribed in Article 21 of that Act, and permission for and reporting on stumpage felling, etc. prescribed in Article 36(1) and (5) of the Creation and Management of Forest Resources Act;

3. Permission to convert grassland prescribed in Article 23(1) of the Grassland Act;

4. Permission to log bamboo, etc. in erosion-control areas prescribed in the main clause of Article 14(1) of the Erosion Control Work Act, and cancellation of the designation of erosion-control areas prescribed in Article 20(1) of that Act;

5. Permission to carry out a development project (only applicable to changing the form and quality of land or dividing land) prescribed in Article 56(1) of the National Land Planning and Utilization Act, designation of an implementor of a City/Gun urban planning facility project prescribed in Article 86 of that Act, and authorization of an implementation project prescribed in Article 88 of that Act;

6. Permission to execute river conservation works prescribed in the main clause of Article 30(1) of the River Act, and permission to occupy and use the rivers prescribed in the subparagraphs of Article 33(1) of that Act;

7. Permission to occupy and use public waters prescribed in Article 8 of the Public Waters Management and Reclamation Act, approval of or reporting on an execution project prescribed in Article 17 of that Act, and a license for reclamation of public waters prescribed in Article 28 of that Act;

8. Permission to relocate graves prescribed in Article 27(1) of the Act on Funeral Services;

9. Permission to open private roads, etc. prescribed in Article 4 of the Private Road Act;

10. Permission to connect roads with other facilities under Article 52(1) of the Road Act and permission to occupy and use roads under Article 61(1) of that Act;

11. Deleted; <Apr. 15, 2010>

12. Permission to use agricultural infrastructure facilities prescribed in the main clause of Article 23(1) of the Agricultural and Fishing Villages Improvement Act;

13. Permission to use State-owned property pursuant to Article 30 of the State Property Act, and disuse of roads, river, ditches, and banks prescribed in Article 40(1) of that Act;

14. Permission to change use, or disuse, administrative property pursuant to Article 11 of the Public Property and Commodity Management Act, and permission for use of administrative property or making a profit therefrom pursuant to Article 20(1) of that Act;

15. Building permission prescribed in Article 11(1) of the Building Act, reporting on building prescribed in Article 14(1) of that Act, permission for or reporting on change of use of a building prescribed in Article 19(2) of that Act, change of the details mentioned in paragraph (3) of the same Article, permission for or reporting on construction of a temporary building prescribed in Article 20(1) and (3) of that Act, and reporting on construction of the structures prescribed in Article 83(1) of that Act;

16. Consultation on small-scale environmental impact assessment referred to in Article 44 of the Environmental Impact Assessment Act;

17. Consultations on disaster impact assessment under Article 4 of the Countermeasures against Natural Disasters Act.

18. Permission for land transaction agreements prescribed in Article 11 of the Act on Report on Real Estate Transactions.

(2) When granting permission for opening a private road, etc. pursuant to Article 4 of the Private Road Act to a person who has obtained approval for the factory establishment, etc. pursuant to Article 13(1) (excluding a person deemed to have obtained the fictitious permission for opening a private road, etc. as at the time of obtaining approval for the factory establishment, etc. pursuant to paragraph (1)9), matters over which the head of the relevant Si/Gun/Gu has consulted with the head of the relevant administrative agency pursuant to paragraph (5), regarding authorization, permission, etc. referred to in the subparagraphs of paragraph (1) (excluding subparagraph 9 of that paragraph) on the site of an access road to the factory, shall be deemed to have been authorized, permitted, etc.

(3) When approving the factory establishment, etc. pursuant to Article 13(1), matters over which the head of a Si/Gun/Gu has consulted with the head of the relevant administrative agency pursuant to paragraph (5), regarding the following permission or reporting on the business to be conducted in the factory, shall be deemed to have been permitted or reported: <Amended on Mar. 22, 2010; Jan. 28, 2015>

1. Permission for manufacturing business of gas products pursuant to Article 5 of the Safety Control and Business of Liquefied Petroleum Gas Act;

2. Permission for manufacturing high-pressure gas pursuant to Article 4 of the High-Pressure Gas Safety Control Act, registration for manufacturing gas containers, etc. pursuant to Article 5 of that Act, and reporting on the utilization of specific high-pressure gas pursuant to Article 20 of that Act;

3. Conditional permission for manufacturing drinking spring water, etc. pursuant to Article 23(1) of the Drinking Water Management Act.

(4) A person who intends to obtain deemed authorization, permission, etc. or deemed permission or reporting under paragraphs (1) through (3) (including a person who intends to obtain deemed building permission or submit the deemed report on building pursuant to paragraph (1) 15 as well as deemed permission, etc. referred to in Article 14 (1)), shall submit related documents prescribed by Decree of the Ministry of Trade, Industry and Resources when filing an application for approval for the factory establishment, etc.; provided, he or she may submit the related documents prescribed by Decree of the Ministry of Trade, Industry and Resources when applying for permission for building pursuant to Article 14 (where he or she intends to obtain the deemed building permission or submit the deemed report on building pursuant to paragraph (1) 15, until the commencement of construction). <Amended on Mar. 23, 2013; Oct. 1, 2025>

(5) When the head of a Si/Gun/Gu approves the factory establishment, etc. pursuant to Article 13(1) or permits to open a private road, etc. referred to in Article 4 of the Private Road Act pursuant to paragraph (2), and if a matter falling under any subparagraph of paragraphs (1) and (3) is included in the matters of approval or permission, he or she shall consult with the head of the relevant administrative agency; provided, this shall not apply where the head of a Si/Gun/Gu grants approval according to the handling guidelines publicly notified pursuant to Article 13-4. <Amended on Mar. 10, 2026>

(6) The head of a relevant administrative agency shall submit his or her opinion within 10 days of receipt of a request for consultation under the main clause of paragraph (5) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 10 days, referring to that period). <Added on Dec. 10, 2019>

(7) Where the head of a Si/Gun/Gu approves the factory establishment, etc. pursuant to the proviso of paragraph (5), he or she shall notify the head of the relevant administrative agency of the details of such approval. <Amended on Dec. 10, 2019; Mar. 10, 2026>

(8) Except as provided in paragraphs (1) through (7), standards for and effects of legal fiction of authorization, permission, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Added on Mar. 10, 2026>

[This Article Wholly Amended on Feb. 6, 2009]

Article 13-3(Special cases concerning approval for establishment of factories) #

(1) Where it is necessary to connect a path which is not a road (referring to a road under subparagraph 1 of Article 2 of the Road Act and a portion deemed to be a road under Article 108 of that Act) to an access road to a factory in order to create access road to the factory and the standards prescribed by Presidential Decree are satisfied, the head of a Si/Gun/Gu shall grant permission to open a private road under Article 4 of the Private Road Act, deeming the road as a private road under Article 2 of that Act. <Amended on Jan. 14, 2014; Dec. 10, 2019>

(2) Where a person has obtained approval for the factory establishment, etc. in a specific use area, zone, etc. pursuant to Article 13 at the time a City/Gun management plan, etc. for designation or change of the specific use area, zone, etc. pursuant to the National Land Planning and Utilization Act is determined and publicly notified, he or she may continue to construct the factory or to conduct business without any restrictions on the relevant act, even if the specific use area, zone, etc. is designated or changed after he or she has obtained approval. In such cases, a person authorized to grant authorization or permission pursuant to the relevant statutes may give authorization or permission necessary for the factory establishment, etc. <Amended on Apr. 14, 2011>

(3) Where the head of a Si/Gun/Gu revokes approval of a plan to establish a factory or permission for building a factory pursuant to Article 49 of the Support for Small and Medium Enterprise Establishment Act for a person who has obtained approval of a plan to establish a factory pursuant to Article 45(1) of that Act, he or she may grant approval for the establishment, etc. of a factory on the land to the relevant startup or a third person, as prescribed by Presidential Decree, without issuing an order to reinstate such land, notwithstanding Article 49 of that Act. <Amended on Dec. 28, 2021>

[This Article Wholly Amended on Feb. 6, 2009]

Article 13-4(Public notice of standards for conduct of business establishing factories) #

`Article 20(2) of the Administrative Procedures Act shall apply mutatis mutandis to the submission of criteria for processing authorization, permission, etc. and the consolidated notice thereof under the subparagraphs of Article 13-2(1) (excluding subparagraph 16 of that paragraph). In such cases, "criteria for dispositions" shall be construed as "criteria for processing" and "publication" as "public notice".

[This Article Wholly Amended on Mar. 10, 2026]

Article 13-5(Revocation of approval for establishment of factories) #

Where any person or entity who has obtained approval for the factory establishment, etc. pursuant to Article 13 is deemed unable to perform a project due to a ground falling under any of the following subparagraphs, the head of a Si/Gun/Gun may revoke the approval for the establishment of such factory, etc. and order to restore the relevant land to its original state, and in such cases, Article 42 of the Farmland Act and Article 39 of the Mountainous Districts Management Act shall apply mutatis mutandis to the restoration of land to its original state; provided, this shall not apply to cases prescribed by Presidential Decree where it is deemed unavoidable to exceed the period pursuant to subparagraph 3:

1. Where he or she fails to commence constructing his or her factory until three years (two years, where permission for or reporting on the conversion of farmland is deemed granted or made) have lapsed from the date he or she obtains approval for the factory establishment, etc.;

2. Where he or she is unable to establish a factory, etc. because permission for change of the form and quality of land is cancelled;

3. Where he or she fails to report on completion pursuant to Article 15(1) until four years have passed after he or she obtains approval for the factory establishment, etc. and approval for installation of manufacturing facilities pursuant to Article 14-3, or has suspended construction works for not less than one year after the commencement of construction of a factory;

4. Where he or she uses a site or a building for which he or she obtains approval for the factory establishment, etc. for purposes other than those approved, without good cause;

5. Where he or she fails to meet the standards for approval to establish a factory pursuant to Article 13(1).

[This Article Wholly Amended on Feb. 6, 2009]

Article 14(Permission to construct factories) #

(1) Where a person who has obtained approval for establishment of a factory, etc. pursuant to Article 13(1) (including a person deemed to have obtained approval for establishment of a factory, etc. pursuant to Article 13(2); hereinafter the same shall apply) is granted building permission pursuant to Article 11 of the Building Act, or where his or her report filed pursuant to Article 14 of that Act is accepted (including cases where building permission or construction reporting is deemed obtained or submitted as at the time of granting approval for the factory establishment, etc. pursuant to Article 13-2(1)15), with respect to matters regarding which the competent head of a Si/Gun/Gu has already consulted with the head of the relevant administrative agency pursuant to paragraph (3) for the following permission, authorization, approval, consent, evaluation, or reporting (hereinafter referred to as "permission, etc."), the relevant permission, etc. shall be deemed to have been granted: <Amended on Jun. 9, 2009; Apr. 14, 2011; Jul. 25, 2011; Aug. 4, 2011; Jan. 14, 2014; Jan. 6, 2015; Jan. 28, 2015; Dec. 22, 2015; Jan. 17, 2017; Jan. 15, 2019; Mar. 31, 2020; Nov. 30, 2021; Mar. 10, 2026>

1. Permission to occupy and use a road pursuant to Article 61(1) of the Road Act;

2. Permission to install facilities or structures pursuant to Article 24 of the Sewerage Act, reporting on the installation of drainage facilities pursuant to Article 27(3) of that Act and reporting on the installation of private sewage disposal facilities pursuant to Article 34(2) of that Act;

3. Authorization to install exclusive waterworks prescribed in Article 52(1) of the Water Supply and Waterworks Installation Act;

4. Authorization for a private-use electric installation work plan and report thereon under Article 8(1) and (2) of the Electrical Safety Management Act;

5. Consent to building permission, etc. granted under Article 6(1) of the Act on Installation and Management of Firefighting Systems, reporting on the installation of a firefighting system under Article 13(1) of the Firefighting System Installation Business Act, and permission for the installation of a factory, etc. under Article 6(1) of the Act on the Safety Control of Hazardous Substances;

6. Permission for development under Article 56(1) of the National Land Planning and Utilization Act (only applicable to the construction of a building or installation of a structure), designation of an implementer of a City/Gun planning facility project prescribed in Article 86 of that Act, and authorization of an execution plan prescribed in Article 88 of that Act;

7. Permission to construct a temporary building or report thereon under Article 20(1) or (3) of the Building Act and report on construction of a structure prescribed in Article 83 of that Act;

8. Approval for the installation of waste disposal facilities and report thereon under Article 29(2) of the Wastes Control Act;

9. Permission for the installation of discharge facilities and report thereon under Article 11 of the Act on the Management and Use of Livestock Excreta;

10. Permission for the installation of discharging and emitting facilities and report thereon under Article 23(1) of the Clean Air Conservation Act, Article 33(1) of the Water Environment Conservation Act and Article 8(1) of the Noise and Vibration Control Act;

11. Reporting on the installation of specific soil contamination control facilities prescribed in Article 12 of the Soil Environment Conservation Act;

12. Permission for the installation of temporary storage of explosives prescribed in Article 25(1) of the Act on the Safety Management of Guns, Swords, and Explosives;

13. Permission for the installation of liquefied petroleum gas storage facilities prescribed in Article 8(1) of the Safety Control and Business of Liquefied Petroleum Gas Act;

14. Permission for the installation of high-pressure gas storage facilities prescribed in Article 4(3) of the High-Pressure Gas Safety Control Act;

15. Deliberation on plans for prevention of harm and danger referred to in Article 42(4) of the Occupational Safety and Health Act, and deliberation on process safety reports referred to in Article 45(1) of that Act;

16. Permission granted under Article 6 of the Act on the Integrated Control of Pollutant-Discharging Facilities.

(2) A person who intends to obtain permission, etc. deemed to be granted under the subparagraphs of paragraph (1) shall submit related documents prescribed by the relevant statutes when he or she applies for building permission for the relevant factory or submits a report thereon.

(3) Where the head of a Si/Gun/Gu grants building permission prescribed in Article 11(1) of the Building Act or receives a report on construction under Article 14(1) of that Act, if the details thereof include a matter falling under any subparagraph of paragraph (1), he or she shall consult with the head of the relevant administrative agency.

(4) The head of a relevant administrative agency shall submit his or her opinion within 10 days of receipt of a request for consultation under paragraph (3) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 10 days, referring to that period). <Added on Dec. 10, 2019>

(5) Except as provided in paragraphs (1) through (4), standards for and effects of legal fiction of permission, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Amended on Mar. 10, 2026>

[This Article Wholly Amended on Feb. 6, 2009]

Article 14-2(Approval for use of factory buildings) #

(1) Where the head of a Si/Gun/Gu grants approval for the use of a building pursuant to Article 22(1) of the Building Act to a person deemed to have obtained building permission or submitted a report on construction at the time of approval of the factory establishment, etc. pursuant to Article 13-2(1) and a person who has obtained building permission or submitted a report pursuant to Article 14, matters over which he or she has already consulted with the head of a relevant administrative agency pursuant to paragraph (3) with respect to the following inspection, reporting, consent and application (hereinafter referred to as "inspection, etc.") shall be deemed to have been inspected, etc.: <Amended on Jun. 9, 2009; Aug. 4, 2011; Jun. 3, 2014; Jan. 6, 2015; Jan. 28, 2015; Dec. 22, 2015; Jan. 17, 2017; Mar. 31, 2020; Nov. 30, 2021; Mar. 10, 2026>

1. Inspection prior to the operation of private-use electric facilities prescribed in Article 9 of the Electrical Safety Management Act;

2. Consent to approval for use under Article 6(1) of the Act on Installation and Management of Firefighting Systems, inspection on the completion of installation of a fire-fighting system under Article 14(1) of the Fire-Fighting System Installation Business Act, and inspection on the completion of a factory, etc. under Article 9(1) of the Act on the Safety Control of Hazardous Substances;

3. Reporting on the commencement of use of waste disposal facilities prescribed in Article 29(4) of the Wastes Control Act;

4. Inspection on the completion of private sewage treatment facilities prescribed in Article 37(1) of the Sewerage Act;

5. Reporting on the commencement of operation under Article 30(1) of the Clean Air Conservation Act and Article 37(1) of the Water Environment Conservation Act;

6. Inspection on the completion pursuant to Article 43 of the Act on the Safety Management of Guns, Swords, and Explosives;

7. Inspection on the completion of construction of storage facilities and the installation of gas products manufacturing facilities prescribed in Article 36(2) of the Safety Control and Business of Liquefied Petroleum Gas Act;

8. Inspection on the completion of construction of facilities for the manufacture, storage of high-pressure gas and facilities for manufacture of containers, etc. pursuant to Article 16(3) of the High-Pressure Gas Safety Control Act, and inspection on the completion of specific high-pressure gas facilities pursuant to Article 20 of that Act;

9. Completion inspection conducted under Articles 62(1) and 98(2) of the National Land Planning and Utilization Act;

10. Application for registration to move land, etc. pursuant to Article 64(2) of the Act on the Establishment and Management of Spatial Data;

11. Reporting on commencement of operation under Article 12 of the Act on the Integrated Control of Pollutant Discharging Facilities.

(2) A person who intends to be deemed to have obtained inspection, etc. conducted under paragraph (1) shall submit related documents prescribed by the relevant statutes when he or she requests approval for the use of the relevant factory building.

(3) Where the head of a Si/Gun/Gu approves the use pursuant to Article 22(1) of the Building Act, if the details thereof include a matter falling under any subparagraph of paragraph (1), he or she shall consult with the head of the relevant administrative agency.

(4) The head of a relevant administrative agency shall submit his or her opinion within 10 days of receipt of a request for consultation under paragraph (3) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 10 days, referring to that period). <Added on Dec. 10, 2019>

(5) Except as provided in paragraphs (1) through (4), standards for and effects of legal fiction of inspections, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Amended on Mar. 10, 2026>

[This Article Wholly Amended on Feb. 6, 2009]

Article 14-3(Approval for installation of manufacturing facilities) #

(1) A person who intends to install manufacturing facilities, etc. and to conduct manufacturing business in all or part of a factory building, which falls under any of the following subparagraphs, and of which construction area is at least 500 square meters, shall obtain approval from the head of a Si/Gun/Gu, as prescribed by Presidential Decree. The same shall also apply where the person intends to alter any matters approved; provided, when he or she intends to alter any insignificant matter prescribed by Decree of the Ministry of Trade, Industry and Resources among approved matters, he or she shall report thereon to the head of a Si/Gun/Gu: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. A factory building built with approval for the factory establishment, etc. under Article 13(1) without specifying a type of business in advance;

2. A factory building which is registered pursuant to Article 16(1), and the registration thereof has been cancelled pursuant to Article 17(1)2.

(2) Where a person has concluded an occupancy agreement pursuant to the main clause of Article 38(1), he or she shall be deemed to have obtained approval for installation of manufacturing facilities pursuant to paragraph (1).

(3) When the head of a Si/Gun/Gu grants approval pursuant to paragraph (1), with respect to matters over which he or she has consulted with the head of the relevant administrative agency regarding permission or reporting pursuant to the subparagraphs of Article 13-2(3) and permission, etc. pursuant to the subparagraphs of Article 14(1), permission shall be deemed granted or a report made pursuant to the subparagraphs of Article 13-2(3), or permission, etc. have been granted pursuant to the subparagraphs of Article 14(1).

(4) Article 13-2(4) and the main clause of paragraph (5) of that Article, and Article 14(2) and (3) shall apply mutatis mutandis to the cases referred to in paragraph (3). In such cases, "application for approval to establish a factory, etc." and "application for permission for construction of a factory or reporting on construction" shall be deemed "application for approval to install manufacturing facilities," respectively.

(5) When the head of a Si/Gun/Gu receives a report on the completion of the factory establishment, etc. pursuant to Article 15 from a person who has installed manufacturing facilities, etc. upon approval for the installation of manufacturing facilities obtained pursuant to paragraph (1), matters over which he or she has consulted with the head of the relevant administrative agency regarding inspection, etc. referred to in the subparagraphs of Article 14-2(1) shall be deemed to have been inspected, etc. pursuant to the subparagraphs of Article 14-2(1).

(6) Article 14-2(2) and (3) shall apply mutatis mutandis to the cases referred to in paragraph (5). In such cases, "application for approval for the use" and "approval for use" shall be construed as "reporting on the completion of the factory establishment, etc." and "acceptance of the reporting on the completion."

[This Article Wholly Amended on Feb. 6, 2009]

Article 14-4(Revocation of approval for installation of manufacturing facilities) #

Where a person is deemed to have obtained approval for installation of manufacturing facilities pursuant to Article 14-3(1) by fraud or other improper means, or to have difficulty in performing a project due to the grounds prescribed by Presidential Decree, the head of a Si/Gun/Gu may revoke the approval for installation of manufacturing facilities.

[This Article Wholly Amended on Feb. 6, 2009]

Article 15(Reporting on completion of establishment of factories) #

(1) Where a person who has obtained approval for factory establishment, etc. under Article 13(1) completes construction of the factory, or a person who has obtained approval for installation of manufacturing facilities under Article 14-3(1) (including a person deemed to have obtained approval for installation of manufacturing facilities under Article 14-3(2)) completes the installation of manufacturing facilities, he or she shall report the completion of the establishment of the factory, etc. to the head of a Si/Gun/Gu within the deadline prescribed by Presidential Decree; provided, an occupant enterprise shall report the completion to a management agency.

(2) Where an occupant enterprise that has concluded an occupancy agreement pursuant to Article 38(1) and (2) applied mutatis mutandis pursuant to paragraph (3) of that Article installs facilities in an industrial facilities zone, etc. according to a business plan, he or she shall report the commencement of his or her business to a management agency by the deadline prescribed by Presidential Decree after ensuring that such facilities conform to the standard building area ratio. <Amended on Mar. 30, 2011; Dec. 30, 2014>

(3) The head of a Si/Gun/Gu or a management agency shall give notice to a person who files a report as to whether or not to accept the report or of an extension of the processing period under statutes or regulations relating to processing civil petitions within 10 days of receipt of the report under paragraph (2). <Added on Dec. 10, 2019>

(4) Where the head of a Si/Gun/Gu or a management agency fails to give notice to the person who files the report as to whether or not to accept the report or of an extension of the processing period within the period prescribed in paragraph (3), the report shall be deemed accepted on the day after the date said period (referring to the relevant processing period if the processing period has been extended or re-extended under statutes or regulations relating to processing civil petitions) expires. <Added on Dec. 10, 2019>

[This Article Wholly Amended on Feb. 6, 2009]

Article 16(Registration of factories) #

(1) Upon receipt of a report on the completion of the establishment of a factory, etc. under Article 15, the head of a Si/Gun/Gu or a management agency shall register the factory in a factory registration ledger, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The owner or occupant of a factory subject to approval for the establishment of a factory, etc. pursuant to Article 13(1) or not subject to approval pursuant to Article 20(2) may file for registration of his or her factory under paragraph (1), as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) Where a person who has obtained approval for the establishment of a factory, etc. under Article 13(1) intends to partially operate a factory before the construction thereof is completed, he or she shall file for registration of the factory, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(4) Any person who has revised any matter prescribed by Decree of the Ministry of Trade, Industry and Resources among matters recorded in the factory registration ledger under paragraphs (1) through (3) shall file for registration of revision with the head of a Si/Gun/Gu within two months from the date of the revision; provided, where an occupant enterprise applies for change of an occupancy agreement pursuant to Article 38(2) after having completed the factory establishment, etc. it shall be deemed to have applied for registration of revision. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(5) Where a management agency registers a factory in the factory registration ledger under paragraphs (1) through (3) or records the revisions to registered matters under paragraph (4), it shall notify the head of a Si/Gun/Gu of such fact.

(6) When the head of a Si/Gun/Gu registers a person who has completed the establishment of a factory and similar pursuant to paragraphs (1) through (3), with respect to matters over which he or she has already consulted with the head of the relevant administrative agency for the following registration, reporting, and permission (hereafter referred to as "registration, etc." in this Article) pursuant to paragraph (9), the following registration, etc. shall be deemed to have been completed: <Amended on Feb. 6, 2009; Apr. 22, 2009; Mar 22, 2010; May 25, 2010; Jun. 4, 2013; May 28, 2014; Jan. 15, 2019; Jan. 11, 2022; Mar. 10, 2026>

1. Reporting on a printing company under Article 12(1) of the Print Culture Industry Promotion Act;

2. Registration of grain processing business under Article 19(1) of the Grain Management Act;

3. Reporting on ginseng manufacturing business under Article 12 of the Ginseng Industry Act;

4. Registration of feed manufacturing business under Article 8 of the Control of Livestock and Fish Feed Act;

5. Registration of fertilizer production business under Article 11(1) of the Fertilizer Control Act;

6. Permission to engage in butchery business and livestock product processing business or under Article 22(1) of the Livestock Products Sanitary Control Act;

7. Registration to engage in the business of manufacturing measuring instruments, the business of repairing measuring instruments, or the business of measurement and certification under Article 7 of the Measures Act;

8. Permission to manufacture substances under Article 118(1) of the Occupational Safety and Health Act;

9. Permission to engage in the business of handling toxic chemicals under Article 28 of the Chemicals Control Act;

10. Reporting on recycling of livestock excreta under Article 27(1) of the Act on the Management and Use of Livestock Excreta;

11. Permission to engage in drinking spring water manufacturing business, registration of water-treatment chemicals manufacturing business and reporting on water purifier manufacturing business under Article 21 of the Drinking Water Management Act;

12. Permission for and reporting on food or food additive manufacturing and processing business, apparatus, container or package manufacturing business under Article 37 of the Food Sanitation Act;

13. Permission to engage in the business of manufacturing functional health foods under Article 5 of the Health Functional Foods Act;

14. Notification of the establishment of business of manufacturing artificial limbs and auxiliary equipment under Article 69(1) of the Act on Welfare of Persons with Disabilities;

15. Registration of aggregate extraction business under Article 14(1) of the Aggregate Extraction Act;

16. Reporting on construction machinery repair business under Article 21(1) of the Construction Machinery Management Act;

17. Registration of automobile dismantling and recycling business under Article 53(1) of the Motor Vehicle Management Act;

18. Registration of and reporting on marine product processing business under Article 53 of the Fisheries Act;

19. Permission to engage in speculative machine manufacturing business under Article 13(1) of the Act on Special Cases concerning Regulation and Punishment of Speculative Acts.

(7) When the head of a Si/Gun/Gu registers revision pursuant to paragraph (4), matters over which he or she has consulted with the head of the relevant administrative agency regarding the following permission for revision, reporting on revision, or reporting on succession to status (hereinafter referred to in this Article as "permission for revision, etc.") pursuant to paragraph (9) shall be deemed to have been permitted for relevant revision, etc.: <Amended on Jun. 9, 2009; Jan. 28, 2015; Jan. 17, 2017; Mar. 31, 2020>

1. Authorization for, or reporting on, revision to a plan for installing private electric facilities under Article 8(1) and (2) of the Electrical Safety Management Act;

2. Permission to change a factory, etc. under Article 6(1) of the Act on the Safety Control of Hazardous Substances, and reporting on succession to status under Article 10(3) of that Act;

3. Approval for, or reporting on, revision to the installation of waste disposal facilities under Article 29(3) of the Wastes Control Act, and reporting on succession to status under Article 33(2) of that Act;

4. Reporting on the installation or change of private sewage treatment facilities under Articles 34(2) of the Sewerage Act;

5. Permission for, or reporting on, revision to a plan for installing discharge and ventilation facilities under Article 23(2) and (3) of the Clean Air Conservation Act, Article 33(2) and (3) of the Water Environment Conservation Act and Article 8(2) of the Noise and Vibration Control Act;

6. Reporting on revision under Article 12(1) of the Soil Environment Conservation Act;

7. Permission for revision to a plan for installing liquefied petroleum gas storage facilities under Article 8(1) of the Safety Control and Business of Liquefied Petroleum Gas Act, and reporting on succession to status under Article 12(3) of that Act;

8. Permission for revision to a plan for installing high-pressure gas storage facilities under Article 4(3) of the High-Pressure Gas Safety Control Act.

(8) A person who intends to be deemed to have obtained registration, etc. referred to in paragraph (6) or permission for revision, etc. referred to in paragraph (7) shall submit related documents prescribed by the relevant statutes when he or she reports the completion of the establishment of the relevant factory, etc. or files for registration of revision thereto.

(9) When the head of a Si/Gun/Gu registers a factory pursuant to paragraphs (1) through (3) or registers a revision pursuant to paragraph (4), if the details thereof include a matter falling under any of the subparagraphs of paragraph (6) or the subparagraphs of paragraph (7), he or she shall consult with the head of the relevant administrative agency.

(10) The head of a relevant administrative agency shall submit his or her opinion within 10 days of receipt of a request for consultation under paragraph (9) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 10 days, referring to that period). <Added on Dec. 10, 2019>

(11) Procedures for registration of a factory, the scope of application under paragraphs (1) through (5) and (9), and other necessary matters shall be prescribed by Decree of the Ministry of Trade, Industry and Energy.<Amended on Mar. 23, 2013; Dec. 10, 2019; Oct. 1, 2025; Mar. 10, 2026>

(12) Except as provided in paragraphs (6) through (10), standards for and effects of legal fiction of registration, etc. or permission for revision, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Added on Mar. 10, 2026>

[This Article Wholly Amended on Feb. 6, 2009]

Article 16-2(Registration of factory buildings) #

(1) A person who has obtained approval for use of a factory building under Article 14-2(1) may file an application for registration of the factory building with the head of a Si/Gun/Gu or a management agency before installing manufacturing facilities, etc.

(2) If the head of a Si/Gun/Gu or a management agency receives an application pursuant to paragraph (1), he, she, or it shall register the relevant factory building in the factory registration ledger under Article 16(1), as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 17(Revocation of registration of factories) #

(1) Where a factory registered under Article 16(1) through (3) falls under any of the following subparagraphs, the head of a Si/Gun/Gu may revoke registration of the relevant factory, as prescribed by Presidential Decree:

1. Where the factory ceases to exist or the use of the building is altered;

2. Where the factory is shut down or its manufacturing facilities are removed;

3. Other cases prescribed by Presidential Decree.

(2) Where the head of a Si/Gun/Gu has revoked registration of a factory pursuant to paragraph (1), he or she shall notify the relevant administrative agency with which he or she has consulted about registration, etc. referred to in the subparagraphs of Article 16(6), of such revocation.

(3) The scope of revocation of registration under paragraph (1) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 18(Consultation on establishment of factories) #

(1) When the head of a Si/Gun/Gu consults with the head of the relevant administrative agency under Articles 13-2(5) (including cases where Article 20(4) is applied mutatis mutandis), 14(3), 14-2(3) and 16(9), if such consultation is not effected, he or she may request the Mayor/Do Governor for consultation, and if consultation with the Mayor/Do Governor is not effected, he or she may request the Minister of Trade, Industry and Resources to consult with him or her. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Trade, Industry and Resources shall, upon receipt of a request prescribed in paragraph (1), have a consultation with the head of the relevant administrative agency over the details thereof. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 19(Establishment of public service center for establishment of factories) #

(1) The Mayor/Do Governor or the head of a Si/Gun/Gu may establish an organization (hereinafter referred to as "public service center for the establishment of factories") which is comprehensively able to receive and conduct civil petitions related to industrial sites and the establishment of factories. <Amended on Feb. 6, 2009>

(2) Deleted. <Dec. 31, 1996>

(3) Deleted. <Dec. 31, 1996>

(4) Deleted. <Dec. 29, 1995>

(5) Matters necessary for the establishment, operation, etc. of the public service center for the establishment of factories shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2009>

Article 20(Restrictions on establishment of new factories) #

(1) No person shall construct (including installation of manufacturing facilities under Article 14-3; hereafter the same shall apply in this Article), a new factory, expand or relocate the existing one (including a knowledge industry center; hereafter the same shall apply in this Chapter), the construction area of which is at least 500 square meters, nor change the type of business of a factory in an overpopulation control zone, growth management zone or nature conservation zone under the Seoul Metropolitan Area Readjustment Planning Act; provided, this shall not apply to cases prescribed by Presidential Decree, where it is deemed necessary for developing the national economy and creating a living environment for local residents. <Amended on Feb. 6, 2009; Apr. 12, 2010; Jul. 30, 2013>

(2) Any person who intends to construct a new factory, extend or relocate the existing one, or change the type of business, pursuant to the proviso to paragraph (1) shall obtain approval from the head of a Si/Gun/Gu, as prescribed by Decree of the Ministry of Trade, Industry and Resources. The same shall also apply where he or she intends to alter any approved matter; provided, where he or she intends to alter any insignificant matter prescribed by Decree of the Ministry of Trade, Industry and Resources among matters approved, he or she shall report thereon to the head of a Si/Gun/Gu. <Amended on Feb. 6, 2009; Mar. 23, 2013; Oct. 1, 2025>

(3) Deleted. <Dec. 31, 1996>

(4) Articles 13(3) and (4), 13-2, and 13-3 shall apply mutatis mutandis to approval prescribed in paragraph (2). <Amended on Feb. 6, 2009>

(5) Deleted. <Dec. 29, 1995>

(6) Article 13-5 shall apply mutatis mutandis to persons who have obtained approval under paragraph (2). <Amended on Feb. 6, 2009>

(7) Any person who has concluded an occupancy agreement pursuant to Article 38(1) (including a contract for change pursuant to Article 38(2)) in an overpopulation control zone, growth management zone, or nature conservation zone shall be deemed to have obtained approval under paragraph (2). <Amended on Feb. 6, 2009; Apr. 12, 2010>

[This Article Wholly Amended on Jan. 7, 1994]

Article 21(Confirmation of relocation of factories) #

Any person who has relocated a factory from an overpopulation control zone to a host area or any other area may apply for the confirmation of relocation of his or her factory to the head of a Si/Gun/Gu in which his or her previous factory is located and obtain confirmation thereof. <Amended on Apr. 12, 2010>

[This Article Wholly Amended on Feb. 6, 2009]

Article 22(Designation of knowledge-based industrial cluster zones) #

(1) If necessary to promote clustering of knowledge-based industries or to implement a competitiveness strengthening project for industrial clusters, the head of a Si/Gun/Gu, the Corporation, and other management agencies prescribed by Presidential Decree may formulate a program for promoting knowledge-based industrial cluster zones which includes the following matters, and request the head of a Si/Gun/Gu to designate a certain area under his or her jurisdiction as a knowledge-based industrial cluster zone: <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Jan. 9, 2024>

1. The area intended to be designated as a knowledge-based industrial cluster zone;

2. The scale of financial resources required for promoting a knowledge-based industrial cluster zone and funding plan;

3. Other matters prescribed by Presidential Decree to promote clustering of knowledge-based industries.

(2) Upon receipt of a request for designation of a knowledge-based industrial cluster zone, a Mayor/Do Governor may designate the relevant area as a knowledge-based industrial cluster zone if a program for promoting knowledge-based industrial cluster zones meets the following requirements. In such cases, he or she shall consult with the Minister of Trade, Industry and Resources and the head of the relevant central administrative agency in advance: <Amended on Jul. 25, 2011; Mar. 23, 2013; May 18, 2015; Jan. 9, 2024; Oct. 1, 2025>

1. A university-industry collaboration activation plan is harmonized with a master plan for promoting industrial clustering;

2. A program for promoting knowledge-based industrial cluster zones shall be brought in conformity with a program for the supply and demand of industrial sites provided for in Article 5-2 of the Industrial Sites and Development Act (limited to cases where a knowledge-based industrial cluster zone is designated in an industrial complex referred to in subparagraph 8 of Article 2 of the Industrial Sites and Development Act);

3. A plan to expand the industrial cluster infrastructure and a financing plan therefor, etc. shall be feasible.

(3) Where an area requested to be designated as a knowledge-based industrial cluster zone is located in an urban high-tech industrial complex referred to in Article 7-2 of the Industrial Sites and Development Act or in an industrial complex in which a competitiveness strengthening project for industrial clusters under Article 22-3 or an industrial complex structure improvement project under Article 45-2 is implemented, a Mayor/Do Governor may preferentially designate such area as a knowledge-based industrial cluster zone. <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Jan. 9, 2024>

(4) Where a Mayor/Do Governor designates a knowledge-based industrial cluster zone pursuant to paragraph (2), he or she shall publicly notify the details of the designation, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; May 18, 2015; Jan. 9, 2024>

[This Article Wholly Amended on Feb. 6, 2009]

Article 22-2(Support for knowledge-based industrial cluster zones) #

(1) The Minister of Trade, Industry and Resources may preferentially support the following projects to be implemented within knowledge-based industrial cluster zones: <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

1. A project for developing technoparks prescribed in Article 2 of the Act on Special Cases concerning Support for Technoparks;

2. An industrial technology development project prescribed in Article 11 of the Industrial Technology Innovation Promotion Act;

3. A project for creating industrial technology infrastructure prescribed in Article 19 of the Industrial Technology Innovation Promotion Act;

4. A project for promoting technology transfer and commercialization by local governments prescribed in Article 17 of the Technology Transfer and Commercialization Promotion Act.

(2) For the purpose of promoting knowledge-based industrial cluster zones, the Minister of SMEs and Startups may provide preferential support to a local government having jurisdiction over a designated knowledge-based industrial cluster zone, when giving support for fund-raising in relation to fostering of local small and medium enterprises pursuant to Article 8 of the Act on the Fostering of Local Small and Medium Enterprises and Promotion of Their Innovation. <Amended on May 18, 2015; Mar. 29, 2016; Jul. 26, 2017; Jul. 27, 2021>

(3) Where the Corporation establishes a knowledge industry center in a knowledge-based industrial cluster zone, the State or a local government may preferentially provide funds required for the establishment of such knowledge industry center. <Amended on Apr. 12, 2010; May 18, 2015>

(4) The State or a local government may preferentially support construction of industrial cluster infrastructure and industrial infrastructure of knowledge-based industrial cluster zones for promoting such knowledge-based industrial cluster zones. <Amended on May 18, 2015>

(5) A local government may provide necessary support, such as payment of subsidies, to companies located in its jurisdictional knowledge-based industrial cluster zone or scheduled to relocate into its jurisdictional knowledge-based industrial cluster zone, as prescribed by its municipal ordinances. <Amended on Apr. 12, 2010; May 18, 2015>

(6) The following charges may be reduced or exempted for companies engaged in the knowledge-based industry in a knowledge-based industrial cluster zone and the industrial cluster infrastructure located in a knowledge-based industrial cluster zone: <Amended on Apr. 12, 2010; May 18, 2015; Jun. 15, 2021>

1. The cost of the development of substitute forest resources under Article 19 of the Mountainous Districts Management Act;

2. Farmland preservation charges prescribed in Article 38 of the Farmland Act;

3. Costs incurred in creating substitute grassland under Article 23 (8) of the Grassland Act;

4. Charges for causing traffic congestion prescribed in Article 36 of the Urban Traffic Improvement Promotion Act.

(7) A 　 local government may grant a local tax exemption to any of the following persons, as prescribed by the Act on Restriction on Special Cases concerning Local Taxation and its municipal ordinances: <Added on Jul. 25, 2011; May 18, 2015>

1. A person who expands or improves industrial cluster infrastructure in a knowledge-based industrial cluster zone;

2. A person who establishes a knowledge industry center in a knowledge-based industrial cluster zone;

3. An occupant enterprise or support institution which purchases a knowledge industry center sold in lots in a knowledge-based industrial cluster zone.

(8) For the purpose of promoting knowledge-based industrial cluster zones, a local government may permit the construction of a knowledge industry center in a knowledge-based industrial cluster zone by up to the ceilings of building-to-land ratio and floor area ratio prescribed by its municipal ordinances for each specific use area. <Added on Jul. 25, 2011; May 18, 2015>

(9) Any of the following persons may provide credit guarantees preferentially to a person who establishes or purchases knowledge industry centers sold in lots in knowledge-based industrial cluster zones so that he or she can procure funds therefor efficiently: <Added on Jul. 25, 2011; May 18, 2015; Mar. 29, 2016>

1. Credit guarantee fund under the Credit Guarantee Fund Act;

2. Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;

3. Credit guarantee foundation established under Article 9 of the Regional Credit Guarantee Foundation Act.

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on May 18, 2015]

Article 22-3(Formulation of promotion plan for competitiveness strengthening projects for industrial clusters) #

(1) The Minister of Trade, Industry and Resources shall formulate and publicly notify a promotion plan for competitiveness strengthening projects for industrial clusters for the efficient promotion of competitiveness strengthening projects. The same shall also apply to any modification thereto. <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

(2) A promotion plan for competitiveness strengthening projects for industrial clusters shall include the following matters: <Amended on Apr. 12, 2010; May 18, 2015>

1. Matters concerning the current status of industrial clustering by industrial complex which promotes competitiveness strengthening projects for industrial clusters;

2. Matters concerning enhancement of research and development capabilities of enterprises, research institutes, and universities as well as mutual linkages therewith;

3. Matters concerning the expansion of the industrial cluster infrastructure and the attraction of superior industrial technical human resources;

3-2. A plan for promoting connections among industrial cluster areas;

4. The project promoting system and a plan for providing financial resources;

5. Other matters necessary for promoting a competitiveness strengthening project for industrial clusters.

(3) Where the Minister of Trade, Industry and Resources intends to formulate or modify a promotion plan for competitiveness strengthening projects for industrial clusters, he or she shall hear from the competent Mayor/Do Governor and consult with the head of the relevant central administrative agency; provided, this shall not apply where he or she modifies any minor matter prescribed by Presidential Decree. <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

(4) Where the Minister of Trade, Industry and Resources intends to formulate or modify a promotion plan for competitiveness strengthening projects for industrial clusters, he or she shall formulate or modify the plan in correlation with the master plan for promoting industrial clustering. <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

(5) The State or local governments may, if necessary to promote competitiveness strengthening projects for industrial clusters, grant contribution or subsidy to the Corporation and other management agencies prescribed by Presidential Decree. <Amended on Apr. 12, 2010; May 18, 2015>

(6) Detailed procedures for the execution and operation of competitiveness strengthening projects for industrial clusters shall be determined and publicly notified by the Minister of Trade, Industry and Resources. <Amended on Apr. 12, 2010; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on May 18, 2015]

Article 22-4(Designation of university-industry collaboration zones) #

(1) If it is necessary to promote clustering of educational facilities, research and development facilities, production facilities, and support facilities therefor for industrial clustering and the revitalization of industry-academia-research collaboration focused on demands by companies, the head of a Si/Gun/Gu, the Corporation, universities (including the industry-academic cooperation foundation under Article 25 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act), and management agencies prescribed by Presidential Decree, or non-profit corporations prescribed by Presidential Decree may request a Mayor/Do Governonr to designate a specific area as a university-industry collaboration zone by formulating a plan for promoting university-industry collaboration, including the following matters (hereinafter referred to as "a plan for promoting university-industry collaboration"); provided, where the head of a Si/Gun/Gu intends to request such designation, he or she shall consult with the head of the relevant Si/Gun/Gu in advance: <Amended on Mar. 23, 2013; Dec. 11, 2018; Oct. 19, 2021; Jan. 9, 2024>

1. An area intended to be designated as a university-industry collaboration zone;

2. Methods for the clustering of universities, companies, and research institutes;

3. Methods of expanding the facilities necessary for education, research and development, and production;

4. Methods of conducting industrial demand-based education, and research and development;

5. Other matters specified by Presidential Decree.

(2) Upon receipt of a request for designation of a university-industry collaboration zone, a Mayor/Do Governor may designate a university-industry collaboration zone, if the plan for promoting university-industry collaboration satisfies all of the following requirements. In such cases, he or she shall consult with the Minister of Trade, Industry and Resources and the heads of relevant central administrative agencies in advance: <Amended on Mar. 23, 2013; Dec. 11, 2018; Oct. 19, 2021; Jan. 9, 2024; Oct. 1, 2025>

1. A university-industry collaboration activation plan is harmonized with a master plan for promoting industrial clustering;

2. An area intended to be designated as a university-industry collaboration zone is a campus site (excluding green belt areas and others areas prescribed by Presidential Decree that are specified in Article 36 of the National Land Planning and Utilization Act), an industrial complex, an enterprise city defined in subparagraph 1 of Article 2 of the Special Act on the Development of Enterprise Cities, an innovation city defined in subparagraph 3 of Article 2 of the Special Act on the Construction and Development of Innovation Cities, an industrial cluster area including a free economic zone defined in subparagraph 1 of Article 2 of the Special Act on Designation and Management of Free Economic Zones, or its adjacent area, which complies with the standards prescribed by Presidential Decree;

3. Methods of clustering of universities, companies, and research institutes are feasible; for example, it is possible to satisfy the standards for establishment referred to in Article 4 of the Higher Education Act;

4. Methods of expanding and improving relevant facilities and methods of financing are reasonable;

5. Methods of conducting education, and research and development are proper.

(3) When a Mayor/Do Governor deems it necessary to designate a university-industry collaboration zone, he or she may formulate a university-industry collaboration promotion plan and designate a university-industry collaboration zone through consultation with the Minster of Trade, Industry and Resources and the heads of relevant central administrative agencies. <Amended on Mar. 23, 2013; Jan. 9, 2024; Oct. 1, 2025>

(4) When a Mayor/Do Governor designates a university-industry collaboration zone pursuant to paragraphs (2) and (3), he or she shall give public notice of the details thereof, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jan. 9, 2024>

(5) Except as provided for in paragraphs (1) through (4), matters necessary for the designation, change, etc. of university-industry collaboration zones shall be prescribed by Presidential Decree.

[This Article Added on Jul. 25, 2011]

Article 22-5(Support for and special cases on university-industry collaboration zones) #

(1) For the purpose of revitalizing the university-industry collaboration zones, the State or local governments may make contributions or provide subsidies to a person who provides education and conducts research and development in the university-industry collaboration zones. <Amended on Oct. 19, 2021>

(2) Notwithstanding the standards on sites referred to in subparagraphs 1 and 2 of Article 8, and Article 19(1) of the Building Act, and Article 76(1) of the National Land Planning and Utilization Act, occupant companies taking occupancy within a university-industry collaboration zone may establish urban factories under Article 28 (limited to urban factories prescribed by Presidential Decree) and related business facilities within educational facilities or research and development facilities located in a university-industry collaboration zone, within the scope of not undermining the structural safety. <Added on Oct. 19, 2021>

(3) The urban factories and related business facilities established by companies taking occupancy within a university-industry collaboration zone pursuant to paragraph (2) shall be deemed established in the industrial facilities zone pursuant to Article 33(8). <Added on Oct. 19, 2021>

[This Article Added on Jul. 25, 2011]

[Title Amended on Oct. 19, 2021]

Article 22-6(Designation of high-tech investment zones) #

(1) To facilitate high-tech investment, the head of a central administrative agency or a Mayor/Do Governor may apply for the designation of a high-tech investment district to the Minister of Trade, Industry and Resources regarding any of the following areas; provided, where the Mayor/Do Governor applies for the designation of a high-tech investment zone, he or she shall have a prior consultation with the head of the relevant Si/Gun/Gu: <Amended on Oct. 1, 2025>

1. Part of an area within the area prescribed by Presidential Decree, such as an industrial complex or a free economic zone defined in subparagraph 1 of Article 2 of the Special Act on Designation and Management of Free Economic Zones;

2. Where a company intends to make a high-tech investment meeting the standards prescribed by Presidential Decree, a zone in which the company wishes to make such investment.

(2) Where the head of a central administrative agency or the Mayor/Do Governor intends to apply for the designation of a high-tech investment zone pursuant to paragraph (1), he or she shall formulate a plan for high-tech investment zone, including the following matters, and submit it to the Minister of Trade, Industry and Resources: <Amended on Oct. 1, 2025>

1. Name, location, and scope of a high-tech investment zone;

2. Necessity for and expected effects of designating a high-tech investment zone;

3. Plans for development and growth of high-tech investment zones;

4. Scale of financial resources for development and growth of high-tech investment zones and methods of raising such financial resources;

5. Other matters necessary for designating a high-tech investment zone, which are prescribed by Decree of the Ministry of Environment.

(3) Where the Minister of Trade, Industry and Resources receives an application for designation of a high-tech investment zone pursuant to paragraph (1) or deems it necessary, he or she may approve a plan for a high-tech investment zone and designate a high-tech investment zone complying with all of the following criteria, after deliberation by the committee on high-tech investment zones under Article 22-9: <Amended on Oct. 1, 2025>

1. It shall be able to secure the demand of Korean or foreign enterprises to move in;

2. It shall be able to secure the infrastructure, such as sites, information and communications networks, water supply, and electricity, necessary for a high-tech investment zone;

3. It shall be able to achieve a scheme for raising necessary financial resources;

4. It shall comply with other criteria prescribed by Presidential Decree as necessary for designation of a high-tech investment zone.

(4) Where the Minister of Trade, Industry and Resources designates a high-tech investment zone under paragraph (3), he or she shall publicly notify the details thereof, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

(5) Subparagraph 15 of Article 2 shall apply mutatis mutandis to the management of a high-tech investment zone, and the management authority shall be the following; in such cases, where it is necessary for the efficient management of a high-tech investment zone, the management authority may entrust the Corporation with all or part of the management affairs, as prescribed by Presidential Decree:

1. Where a high-tech investment zone is designated within an industrial complex, the authorized administrator under Article 30(1);

2. Where a high-tech investment zone is designated in an area other than the industrial complex, the competent Mayor/Do Governor.

(6) Except as provided in paragraphs (1) through (5), matters necessary for the designation of a high-tech investment zone shall be prescribed by Presidential Decree.

[This Article Added on Jun. 15, 2021]

Article 22-7(Modification and cancellation of high-tech investment zones) #

(1) If necessary for the operation of a high-tech investment zone, the head of a central administrative agency or the Mayor/Do Governor who applies for the designation of a high-tech investment zone may file an application for modification of the relevant plan for a high-tech investment zone or modification of the designation of a high-tech investment zone with the Minister of Trade, Industry and Resources, who may modify such designation. <Amended on Oct. 1, 2025>

(2) In cases prescribed by Presidential Decree, such as where the Minister of Trade, Industry and Resources deems that the grounds for designation of a high-tech investment zone ceases to exist or the head of a relevant central administrative agency or the competent Mayor/Do Governor requests the cancellation of designation of a high-tech investment zone, the Minister of Trade, Industry and Resources may cancel the designation of a high-tech investment zone. <Amended on Oct. 1, 2025>

(3) The modification and cancellation of a high-tech investment zone under paragraph (1) or (2) shall be subject to deliberation by the committee on high-tech investment zones under Article 22-9 (hereinafter referred to as "committee on high-tech investment zones"); provided, where the Minister of Trade, Industry and Resources intends to modify any minor matters prescribed by Presidential Decree, he or she may make modifications in consultation with the competent Mayor/Do Governor or the head of the competent central administrative agency having jurisdiction over the relevant high-tech investment zone, without deliberation by the committee on high-tech investment zones. <Amended on Oct. 1, 2025>

(4) Except as provided in paragraphs (1) through (3), matters necessary for the methods, procedures, etc. for applying for modification and cancellation of a high-tech investment zone shall be prescribed by Presidential Decree.

[This Article Added on Jun. 15, 2021]

Article 22-8(Support for high-tech investment zones) #

(1) The State or a local government may grant subsidies to cover expenses necessary for any of the following in a high-tech investment zone in preference over other business projects: <Amended on Oct. 1, 2025>

1. Installation and operation of industrial cluster infrastructure and industrial infrastructure for high-tech investment;

2. Establishment of knowledge industry centers;

3. Creation of a site, and installation of various convenience facilities, such as medical facilities, educational facilities, residential houses, for the enterprises moving into a high-tech investment zone (referring to enterprises prescribed by Presidential Decree, such as enterprises that enter into an occupancy agreement; hereinafter referred to as "occupant enterprises in high-tech investment zones") or research institutes;

4. Capital investment in the high-tech investment zones by a repatriating enterprise under Article 7 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation;

5. Projects for creating a technopark defined in Article 2 of the Act on Special Cases concerning Support for Technoparks;

6. Projects for developing industrial technology prescribed in Article 11 of the Industrial Technology Innovation Promotion Act;

7. Projects for developing the infrastructure for industrial technology prescribed in Article 19 of the Industrial Technology Innovation Promotion Act;

8. Projects for promoting technology transfer and commercialization by local governments under Article 17 of the Technology Transfer and Commercialization Promotion Act;

9. Other projects determined and publicly notified by the Minister of Trade, Industry and Resources as necessary for developing the high-tech investment zones, such as projects to facilitate the start-up and attraction of high-tech investment enterprises.

(2) The State or a local government may provide necessary support, such as payment of subsidies, to occupant enterprises in a high-tech investment zone, as prescribed by relevant statutes and regulations, such as Article 14-2 of the Foreign Investment Promotion Act, Article 12 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation, and Article 86 of the Special Act on Local Autonomy, Decentralization, and Balanced Regional Development. <Amended on Jun. 9, 2023>

(3) The State and local governments may provide necessary tax support as prescribed by the statues and municipal ordinances on taxation, in order to facilitate high-tech investment and foster high-tech investment zones.

(4) If necessary to facilitate high-tech investment, the State or a local government may reduce or exempt the following charges for the industrial cluster infrastructure, knowledge industry centers, occupant enterprises in high-tech investment zones, and research institutes established in or moving into high-tech investment zones:

1. The cost of the development of substitute forest resources under Article 19 of the Mountainous Districts Management Act;

2. Farmland preservation charges prescribed in Article 38 of the Farmland Act;

3. Costs incurred in creating substitute grassland under Article 23 (8) of the Grassland Act;

4. Charges for causing traffic congestion prescribed in Article 36 of the Urban Traffic Improvement Promotion Act.

(5) The State and local governments may reduce and exempt the fees for the use and lease of the State-owned or public property, such as the land owned by the State or local governments, notwithstanding the provisions of the State Property Act, the Public Property and Commodity Management Act, and any other statutes, in regard to the knowledge industry center, occupant enterprises in high-tech investment zones (excluding companies that take occupancy in the Seoul metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Act, except for foreigner-invested enterprises defined in Article 2(1)6 of the Foreign Investment Promotion Act and repatriating enterprises under Article 7 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation), and the research institutes. In such cases, notwithstanding Article 34(2), the the amount and reduction rate of use fees and lease fees for the State-owned property shall be prescribed by Presidential Decree, and the specific details of public property, such as the projects eligible for the reduction or exemption of the use fees and lease fees of public property, and the amount and reduction rate of use fees and lease fees for public property shall be prescribed by ordinance of the relevant local government.

(6) The State or a local government may purchase and lease land designated as a high-tech investment zone. In such cases, matters regarding the purchase of land, such as requirements for purchase of the site, shall be prescribed by Presidential Decree.

(7) A person authorized to determine an urban or Gun management plan under Article 29 of the National Land Planning and Utilization Act may designate a high-tech investment zone as an urban innovation area under Article 40-3 of that Act. In such cases, the procedures for designation shall be governed by the National Land Planning and Utilization Act. <Amended on Feb. 6, 2024>

(8) Any of the following institutions may provide credit guarantee preferentially to occupant enterprises in a high-tech investment zone so that they can raise necessary funds smoothly:

1. Credit guarantee fund under the Credit Guarantee Fund Act;

2. Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;

3. Credit guarantee foundation established under Article 9 of the Regional Credit Guarantee Foundation Act.

[This Article Added on Jun. 15, 2021]

[The amended provisions of Article 22-8(5) of the Act (No. 18274, Jun. 15, 2021) shall remain effective until September 15, 2031 pursuant to Article 2 of the Addenda to that Act.]

Article 22-9(Committee on high-tech investment zone) #

(1) In order to deliberate on matters prescribed by Presidential Decree, such as the approval of a plan for a high-tech investment zone and the designation of a high-tech investment zone, the committee on high-tech investment zones shall be established under the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

(2) If necessary, the committee on high-tech investment zones may hear opinions of the public officials belonging to the relevant administrative agencies or City/Do.

(3) The Minister of Trade, Industry and Resources may request the heads of relevant central administrative agencies and the Mayor/Do Governor to provide data necessary for deliberation by the committee on high-tech investment zones, and the heads of the relevant central administrative agencies and the Mayor/Do Governor upon receipt of a request for provision of such data shall comply therewith unless there is good cause. <Amended on Oct. 1, 2025>

(4) Except as provided in paragraphs (1) through (3), matters necessary for the composition and operation of the committee on high-tech investment zones shall be prescribed by Presidential Decree.

[This Article Added on Jun. 15, 2021]

Article 22-10(Applications for regulatory improvements) #

(1) Where it is necessary to achieve the objectives of research and development in the fields of high-tech technology, testing and evaluation, verification, and production activities, the management authority of a high-tech investment zone, a knowledge industry center in a high-tech investment zone, occupant enterprises in a high-tech investment zone, and research institutes may file an application for regulatory improvement with the Minister of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

(2) Upon receipt of an application under paragraph (1), the Minister of Trade, Industry and Resources shall notify the head of the relevant administrative agency of the details of the application, and the head of the relevant administrative agency shall review the details of application and reply the results thereof in writing to the Minister of Trade, Industry and Resources within 15 days from the date of receiving the notice. In such cases, the head of the relevant administrative agency shall actively process the details of an application not requiring the improvement of the statutes and regulations. <Amended on Oct. 1, 2025>

(3) Where the head of the relevant administrative agency requires an applicant for regulatory improvement under paragraph (1) to supplement data in order to review whether the regulatory improvement is necessary, the period spent in supplementing data shall not be included in the period for reply specified in paragraph (2). In such cases, the head of the relevant administrative agency shall reply within 45 days from the date of receipt of the notice, and if it is impossible to reply, he or she may request an extension of the period for reply only once within the range of 30 days.

(4) Upon receipt of an application filed under paragraph (1), the Minister of Trade, Industry and Resources shall request the committee on high-tech investment zones to deliberate on the application, and the committee on high-tech investment zones shall deliberate on the details of application filed under paragraph (1), the details of review by the relevant administrative agencies, the results of processing the application, and whether the regulatory improvement is necessary, and any other similar matters. In such cases, the Minister of Trade, Industry and Resources or the committee on high-tech investment zones may request the head of a relevant administrative agency to attend the deliberation by the committee on high-tech investment zones. <Amended on Oct. 1, 2025>

(5) The Minister of Trade, Industry and Resources may notify the heads of relevant administrative agencies of the results of deliberation under paragraph (4) and file a request for regulatory improvement, and the heads of relevant administrative agencies may improve the relevant regulation in consideration of the results of deliberation by the committee on high-tech investment zones. <Amended on Oct. 1, 2025>

(6) Where it is necessary to improve the statutes or regulations as a result of deliberation under paragraph (4), the head of the relevant administrative agency shall review whether to improve the statutes and regulations, and shall promptly proceed with the improvement of the relevant statutes and regulations. In such cases, if the committee on high-tech investment zone deems it necessary, such as where there are at least two heads of relevant administrative agencies, the Minister of Trade, Industry and Energy Committee may request the improvement of regulation from the Regulatory Rationalization Committee under Article 23 of the Framework Act on Administrative Regulation. <Amended on Feb. 19, 2026>

(7) If it is deemed necessary to grant special cases on regulation for demonstration, such as research and development in the field of high-tech technology, testing and evaluation, verification, and production activities, as a result of deliberation by the committee on high-tech investment zones under paragraph (4), special cases on relevant regulations may be granted according to the procedures under Article 10-3 of the Industrial Convergence Promotion Act, Article 38-2 of the Special Act on Promotion of Information and Communications Technology and Vitalization of Convergence Thereof, and Article 86 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development; provided, with respect to special cases granted under Article 86 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development, the competent Mayor/Do Governor shall be notified of the results of deliberation by the committee on high-tech investment zones, and the Mayor/Do Governor shall review the results of deliberation and file an application for the matters related to the special cases on regulation with the Minister of SMEs and Startups pursuant to Articles 72 and 81 of that Act.

(8) Details related to the provisions under paragraphs (1) through (7), and matters necessary for the examination criteria, procedures, and methods for regulatory improvement shall be prescribed by Presidential Decree.

[This Article Added on Jun. 15, 2021]

Article 23(Designation of host areas) #

(1) Where it is required to create an industrial complex to facilitate the relocation of factories to provinces and the grouping of pollution causing industries, and where it is required to create factory sites the size of which is no smaller than the one prescribed by Presidential Decree, the Minister of Trade, Industry and Resources shall designate and publicly announce a host area. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Where the Minister of Trade, Industry and Resources intends to designate a host area, he or she shall prepare a designation plan for host areas and consult with the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) The following matters shall be included in a designation plan for host areas:

1. Locations and boundaries of host areas;

2. Types and scales of industries to be attracted to areas;

3. Kinds of industrial complexes by the development of host areas;

4. Other matters specified by Presidential Decree.

(4) Necessary matters, such as procedures for designating host areas prescribed in paragraphs (1) and (2), shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 24(Designation standards for host areas) #

Host areas shall be designated from among the areas which fulfill the following conditions:

1. In terms of location, areas with huge potential for use, such as capacity to accommodate highly concentrated industries;

2. Areas with substantial effects on regional development;

3. Areas allowing easy procurement of industrial sites and the installation of support facilities such as water and electricity connections.

[This Article Wholly Amended on Feb. 6, 2009]

Article 25(Relocation of factories to host areas) #

Regarding factories moving in to host areas designated and publicly notified pursuant to Article 23, the Minister of Trade, Industry and Resources may, if necessary, have factories which wish to leave a growth management zone preferentially occupy there. <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 26(Spurring relocation of enterprises to provinces) #

(1) The Minister of Trade, Industry and Resources may formulate and execute policies for developing regional industries in consultation with the head of the relevant central administrative agency to spur the development of regional industries by accelerating the relocation of enterprises to provinces. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The State or local governments shall give necessary assistance in order to propel the relocation of enterprises to provinces.

[This Article Wholly Amended on Feb. 6, 2009]

Article 27(Support for relocation of registered factories) #

(1) Where a factory registered under Article 16(1) through (3) satisfies all of the following criteria, the head of a Si/Gun/Gu may recommend the relocation of the relevant factory:

1. The factory is located in the vicinity of a high residential area;

2. Residents have collectively filed civil petitions for environmental damage caused by noise, dusts, sewage, waste water, malodor, etc.

(2) Where a factory is relocated following the recommendation under paragraph (1), the State and local governments may provide administrative and financial support necessary for the relocation of the relevant factory.

[This Article Added on Jul. 27, 2021]

Article 28(Urban factories) #

The head of a Si/Gun/Gu and a management agency may designate high-tech industry factories, factories emitting low levels of pollutants, factories interrelated with urban life and other factories as urban factories, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Dec. 10, 2019>

[This Article Wholly Amended on Feb. 6, 2009]

Article 28-2(Establishment of knowledge industry center) #

(1) Articles 13, 13-2 through 13-5, 14, 14-2 through 14-4 and 18 shall apply mutatis mutandis to approval for the establishment of a knowledge industry center, deemed authorization, deemed permission, etc. special cases on approval for the establishment, etc. the public notice, etc. of issuance standards, revocation of approval for establishment, etc. building permit, approval for use, approval for the installation of manufacturing facilities, revocation of approval for the installation of manufacturing facilities and consultation thereon. <Amended on Apr. 12, 2010>

(2) Where any person who established a knowledge industry center has obtained approval for use under Article 22(1) of the Building Act, he or she shall report the completion of the establishment of a knowledge industry center to the head of a Si/Gun/Gu or a management agency within a period prescribed by Presidential Decree. The same shall also apply where he or she intends to modify important matters prescribed by Decree of the Ministry of Trade, Industry and Resources among reported matters. <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

(3) The head of a Si/Gun/Gu or a management agency shall give notice to a person who files a report as to whether or not to accept the report or an extension of the processing period under statutes or regulations relating to processing civil petitions within 10 days of receipt of the report under paragraph (2). <Added on Dec. 10, 2019>

(4) Where the head of a Si/Gun/Gu or a management agency fails to give notice to the person who files the report as to whether or not to accept the report or of an extension of the processing period within the period prescribed in paragraph (3), the report shall be deemed accepted on the day after the date said period (referring to the relevant processing period if the processing period has been extended or re-extended under statutes or regulations relating to processing civil petitions) expires. <Added on Dec. 10, 2019>

(5) Upon acceptance of a report on the completion of the establishment of a knowledge industry center under paragraph (2) (including cases where a report shall be deemed accepted under paragraph (4)), the head of a Si/Gun/Gu or a management agency shall register the knowledge industry center in the knowledge industry center ledger. <Amended on Apr. 12, 2010; Dec. 10, 2019>

(6) Where a management agency has registered the knowledge industry center under paragraph (5), it shall notify the head of a Si/Gun/Gu of such registration. <Amended on Apr. 12, 2010; Dec. 10, 2019>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Apr. 12, 2010]

Article 28-3(Support to knowledge industry center) #

(1) Necessary funds may be provided to a knowledge industry center, as prescribed by other Acts. <Amended on Apr. 12, 2010>

(2) Where the State or a local government intends to construct a knowledge industry center and sell in lots or lease the center, it may sell the center in lots at the construction cost or lease it at a rent prescribed by Presidential Decree, notwithstanding the State Property Act and the Public Property and Commodity Management Act. <Amended on Apr. 12, 2010>

(3) A person who has purchased a knowledge industry center in lots at the cost of construction pursuant to paragraph (2) shall sell it within a period prescribed by Decree of the Ministry of Trade, Industry and Resources; provided, this shall not apply to cases prescribed by Decree of the Ministry of Trade, Industry and Resources, such as sale due to bankruptcy. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Apr. 12, 2010]

Article 28-4(Sale of knowledge industry center in lots) #

(1) Where any person who has built a knowledge industry center intends to sell it in lots or lease it, he or she shall prepare a plan to publicly announce the invitation and obtain approval from the head of a Si/Gun/Gu after the commencement of construction of a knowledge industry center building and then openly invite occupants (referring to those who have purchased the knowledge industry center in lots or leased it and who conduct manufacturing or other business; hereinafter the same shall apply), as prescribed by Decree of the Ministry of Trade, Industry and Resources. The same shall also apply where he or she intends to change important matters prescribed by Decree of the Ministry of Trade, Industry and Resources among approved matters. <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

(2) Paragraph (1) shall not apply where any person sells in lots or leases a knowledge industry center falling under any of the following subparagraphs: <Amended on Apr. 12, 2010>

1. Knowledge industry centers built for attracting factories removed by public works projects or other reasons prescribed by Presidential Decree;

2. Knowledge industry centers less than the scale prescribed by Presidential Decree.

(3) Where any person who has built a knowledge industry center is the State, a local government, the Corporation, the Korea SMEs and Startups Agency under the Small and Medium Enterprises Promotion Act or a local corporation under the Local Public Enterprises Act (hereinafter referred to as "local corporation"), he or she may invite occupants after notifying the head of a Si/Gun/Gu of a plan for pubic notice, notwithstanding paragraph (1). The same shall also apply where he or she intends to alter important matters prescribed by Decree of the Ministry of Trade, Industry and Resources among notified matters. <Amended on May 21, 2009; Apr. 12, 2010; Mar. 23, 2013; Dec. 31, 2018; Oct. 1, 2025>

(4) Any person who has established a knowledge industry center shall not invite occupants by giving a false or exaggerated information or using fraudulent means. <Amended on Apr. 12, 2010>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Apr. 12, 2010]

Article 28-5(Moving in to knowledge industry center) #

(1) Facilities which may move in to a knowledge industry center shall be those referred to in the following subparagraphs: <Amended on Apr. 12, 2010; Jan. 9, 2024>

1. Facilities for conducting manufacturing business, knowledge-based industry, IT industry and other business prescribed by Presidential Decree;

2. Facilities for conducting venture business under Article 2(1) of the Special Act on the Promotion of Venture Businesses;

3. Other facilities prescribed by Presidential Decree, as facilities for assistance to the production activities of occupant enterprises.

(2) The scope and size of facilities which may move in to a knowledge industry center pursuant to paragraph (1)1 shall be prescribed by Presidential Decree. <Amended on Apr. 12, 2010>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Apr. 12, 2010]

Article 28-6(Management of knowledge industry center) #

(1) A knowledge industry center shall be managed by any of the following persons: <Amended on Apr. 12, 2010>

1. Where the relationship of divided ownership is formed under the Act on Ownership and Management of Condominium Buildings: A management organization under Article 23(1) of that Act;

2. Where the relationship of divided ownership is not formed under the Act on Ownership and Management of Condominium Buildings: A person who has established a knowledge industry center.

(2) A management organization referred to in paragraph (1)1 shall stipulate the rules under Article 28(1) of the Act on Ownership and Management of Condominium Buildings and report such rules to the head of a Si/Gun/Gu by a deadline prescribed by Decree of the Ministry of Trade, Industry and Resources from the date it is organized. The same shall also apply where it modifies important matters in a report prescribed by Decree of the Minister of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) The head of a Si/Gun/Gu, upon receipt of a report under paragraph (2), shall notify the management agency of the details of such report by the deadline prescribed by Decree of the Ministry of Trade, Industry and Resources. <Added on Jul. 25, 2011; Mar. 23, 2013; Oct. 1, 2025>

(4) The business scope of a person who manages a knowledge industry center pursuant to paragraph (1) (hereinafter referred to as "manager") shall be prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Apr. 12, 2010; Jul. 25, 2011; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

[Title Amended on Apr. 12, 2010]

Article 28-7(Duty of occupants) #

(1) Any occupant or the manger of a knowledge industry center shall not engage in the following conducts: <Amended on Apr. 12, 2010>

1. Removing, destroying or damaging a bearing wall of a knowledge industry center or main structures prescribed by Presidential Decree;

2. Installing heavy goods exceeding the bearing capacity prescribed by design books at the time of permitting construction of a building and vibration generating equipment;

3. Transferring or leasing all or part of a knowledge industry center to a person who uses or intends to use it for purposes other than those of facilities entitled to occupancy in pursuant to Article 28-5(1);

4. Occupying and using an area for common facilities without due authorization.

(2) Occupants shall observe the rules pursuant to Article 28-6(2).

[This Article Wholly Amended on Feb. 6, 2009]

Article 28-8(Measures in response to breach of duty) #

Where an occupant or a manager undermines the safety of a knowledge industry center or uses it for purposes other than those of the facilities entitled to occupancy under Article 28-5(1), including cases of doing harm to the knowledge industry center or causing trouble to production activities of other businesses by his or her failure to observe his or her duty pursuant to Article 28-7, the head of a Si/Gun/Gu may order him or her to correct such act for a fixed period or to take necessary measures for ensuring the safety of the knowledge industry center and for other purposes, as prescribed by Presidential Decree. <Amended on Apr. 12, 2010; Dec. 30, 2014>

[This Article Wholly Amended on Feb. 6, 2009]

Article 29 #

Deleted. <Feb. 8, 1999>

Article 30(Authorized administrator) #

(1) The authorized administrators shall be as follows: <Amended on Mar. 23, 2013; Oct. 1, 2025>

1. The Minister of Trade, Industry and Resources, in the case of the national industrial complexes;

2. The Mayor/Do Governor, in the case of general industrial complexes and urban high-tech industrial complexes (referring to the head of a Si/Gun/Gu in the case of industrial complexes designated by the head of a Si/Gun/Gu);

3. The head of a Si/Gun/Gu, in the case of agro-industrial complexes.

(2) The management agencies shall be as follows:

1. The authorized administrator;

2. The head of a local government to whom administrative affairs are delegated by the authorized administrator;

3. The Corporation or the industrial complex administrative corporation prescribed in Article 31(2) entrusted by the authorized administrator with administrative affairs;

4. The Consultative Council of Occupant Enterprises prescribed in Article 31(2), which is entrusted with administrative affairs by the authorized administrator;

5. Any institution prescribed by Presidential Decree, which is entrusted with administrative affairs (limited to administrative affairs of a general industrial complex, an urban high-tech industrial complex or an agro-industrial complex) by the authorized administrator.

(3) Industrial complexes created by the State, a local government, or any other person to occupy the industrial facilities under the Industrial Sites and Development Act and other Acts, such as the National Land Planning and Utilization Act, may be managed in a manner corresponding to the relevant industrial complex by the authorized administrator under paragraph (1).

(4) When a management agency administers an industrial complex, it shall do so in conformity with a development plan for industrial complexes under Articles 6, 7 and 7-2 of the Industrial Sites and Development Act.

(5) A management agency entrusted with administrative affairs by the authorized administrator may engage in real estate brokerage activities with regard to factory sites and factory buildings in the relevant industrial complex, notwithstanding Article 9 of the Licensed Real Estate Agents Act. <Amended on Dec. 11, 2018>

[This Article Wholly Amended on Feb. 6, 2009]

Article 31(Industrial complex administrative corporation) #

(1) In order to ensure the efficient administration of an industrial complex, the authorized administrator may delegate or entrust all or part of the administrative affairs to a management agency prescribed in Article 30(2), as prescribed by Presidential Decree.

(2) An industrial complex administrative corporation (hereinafter referred to as "administrative corporation") or any person who intends to establish a consultative council comprised of occupant enterprises (hereinafter referred to as "consultative council of occupant enterprises") to be entrusted with the affairs of managing an industrial complex shall satisfy the requirements for the establishment prescribed by Presidential Decree and obtain authorization from the authorized administrator.

(3) An administrative corporation shall give notice to an applicant for authorization for the establishment as to whether or not to authorize such establishment or of an extension of the processing period under statutes or regulations relating to processing civil petitions within 30 days of receipt of the application for authorization for the establishment under paragraph (2). <Added on Dec. 10, 2019>

(4) The administrative corporation and the consultative council of occupant enterprises (hereinafter referred to as "administrative corporation, etc.") shall be a juristic person and shall be formed by registration for the establishment in the seat of its main office. <Amended on Dec. 10, 2019>

(5) No property of the administrative corporation, etc. shall be transferred or offered as security without obtaining approval from the authorized administrator. <Amended on Dec. 10, 2019>

(6) Where the administrative corporation, etc. falls under any of the following cases, the authorized administrator may revoke his or her authorization for its establishment; provided, where it falls under subparagraph 1, he or she shall revoke authorization for its establishment: <Amended on Dec. 10, 2019>

1. Where it has obtained authorization for the establishment by fraud or other improper means;

2. Where it violates the requirements for the establishment under Article 31(2);

3. Where it fails to commence business within six months from the date it obtains authorization for the establishment or fails to achieve business performance for not less than one year without good cause;

4. Where it conducts business other than the purpose of its establishment;

5. Where it is deemed impracticable to attain the purposes of its establishment.

(7) Where the authorized administrator has authorized the establishment of a consultative council of occupant enterprises under paragraph (2), he or she shall, without delay, entrust it with the administrative affairs of the relevant industrial complex or take measures necessary for changing a management agency to the consultative council of occupant enterprises. <Amended on Dec. 10, 2019>

(8) Matters necessary for organizing and operating the consultative council of occupant enterprises shall be prescribed by Presidential Decree. <Amended on Dec. 10, 2019>

(9) The provisions concerning incorporated associations in the Civil Act shall apply mutatis mutandis to matters except those provided in this Act on the administrative corporation, etc. In such cases, "competent authorities" shall be construed as "authorized administrator." <Amended on Dec. 10, 2019>

(10) A local government may give necessary support, such as payment of subsides for establishment and operation of the administrative corporation, etc. <Added on Jan. 27, 2016; Dec. 10, 2019>

[This Article Wholly Amended on Feb. 6, 2009]

Article 32(Administrative guidelines for industrial complexes) #

(1) The Minister of Trade, Industry and Resources shall formulate and publicly announce administrative guidelines for industrial complexes (hereinafter referred to as "administrative guidelines") concerning basic matters on the administration of industrial complexes, as prescribed by Presidential Decree. The same shall also apply where it amends such guidelines; provided, this shall not apply to the modification of insignificant matters prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Among administrative guidelines, the administrative guidelines for agro-industrial complexes shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 33(Formulation of master plans for managing industrial complexes) #

(1) Where an industrial complex is designated pursuant to Articles 6, 7, 7-2 through 7-4 and 8 of the Industrial Sites and Development Act, a management agency shall formulate a master plan for managing the industrial complex (hereinafter referred to as "master management plan") with respect to an area required to be managed as an industrial complex, as prescribed by Presidential Decree. In such cases, a management agency delegated or entrusted with administrative affairs by the authorized administrator shall obtain approval from the authorized administrator regarding the master management plan (including a modified plan), and shall obtain approval from the Mayor/Do Governor or the head of a large city regarding the master management plan of an agro-industrial complex, as prescribed by Presidential Decree. <Amended on Feb. 18, 2020>

(2) In the case of any industrial complex for which authorization for the completion prescribed in Article 37 of the Industrial Sites and Development Act is not granted, where a management agency intends to formulate the master management plan (including its modification) or the authorized administrator intends to formulate or approve the master management plan (including its modification), the management agency or authorized administrator shall consult with a person authorized to designate the relevant industrial complex (hereinafter referred to as "person authorized to designate the relevant industrial complex") pursuant to Articles 6, 7, and 7-2 of the Industrial Sites and Development Act; provided, this shall not apply to the modification of minor matters prescribed by Presidential Decree. <Amended on Apr. 12, 2010>

(3) In the case of any industrial complex for which authorization for the completion prescribed in Article 37 of the Industrial Sites and Development Act is granted, where a management agency or the authorized administrator intends to modify, or approve modification of, the management master plan, the management agency or authorized administrator shall consult with the person authorized to designate the relevant industrial complex and the head of administrative agency concerned; provided, this shall not apply to the modification of insignificant matters prescribed by Presidential Decree. <Amended on Apr. 12, 2010>

(4) Where the person authorized to designate the relevant industrial complex and the head of a relevant administrative agency shall submit his or her opinion within 20 days of receipt of a request for consultation under paragraphs (2) and (3) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 20 days, referring to that period). <Added on Dec. 10, 2019>

(5) Where the person authorized to designate the relevant industrial complex and the head of a relevant administrative agency fails to submit his or her opinion within the period prescribed in paragraph (4) (where the answer period has been extended under Article 20(2) of the Civil Petitions Treatment Act, referring to that extended period), the consultation shall be deemed concluded. <Added on Dec. 10, 2019>

(6) Where a management agency, the authorized administrator, or Mayor/Do governor formulates or approves a management master plan, such plan shall be publicly notified. <Amended on Dec. 10, 2019>

(7) A management master plan shall include the following matters: <Amended on Dec. 10, 2019; Jan. 21, 2025>

1. Matters concerning the area of an industrial complex to be administered;

2. Matters concerning the type of business of occupants and qualifications for the occupant enterprises;

3. Matters concerning zones of the site of an industrial complex (hereinafter referred to as "industrial site") that are classified by use;

4. Matters concerning the placement of factories by type of business;

5. Matters concerning the establishment and operation of support facilities;

6. Matters concerning the conversion of the energy structure of industrial complexes, such as the utilization of new energy defined in subparagraph 1 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy and renewable energy defined in subparagraph 2 of that Article to reduce greenhouse gases in industrial complexes;

7. Other matters necessary for managing an industrial complex.

(8) Zones classified according to different purposes under paragraph (7)3 may be administered by classifying them into industrial facilities zones, support facilities zones, public facilities zones, and green belt zones, and the industrial facilities zones may be subdivided according to different purposes; provided, if it is necessary to build companies, research institutes, universities, corporate-support facilities, etc. in one zone for industrial clustering under subparagraph 6 of Article 2, a complex zone may be designated and managed as prescribed by Presidential Decree. <Amended on Dec. 30, 2014; Dec. 10, 2019>

(9) Article 76(1) of the National Land Planning and Utilization Act shall not apply to the zones classified by purpose referred to in paragraph (8). <Amended on Dec. 10, 2019>

(10) Where the authorized administrator changes zones of an industrial site classified by purpose according to the changed master management plan, he or she may receive contributions equivalent to the increased value in land prices following the change of zones from the land owner as prescribed by Presidential Decree, and may use it for the purpose of supporting occupant enterprises, such as expansion of infrastructure in the industrial complex; provided, this shall not apply in any of the following cases: <Added on Apr. 12, 2010; Dec. 30, 2014; Dec. 10, 2019; Jan. 9, 2024>

1. Where development profits generated from an industrial complex structure improvement project are reinvested pursuant to Article 45-6;

2. Any of the following cases, where there is a change in the zones classified by purpose due to approval of an industrial complex development plan under Articles 6, 7, 7-2, and 8 of the Industrial Sites and Development Act and an implementation plan for national industrial complex development, general industrial complex development, urban high-tech industrial complex development, and agricultural and industrial complex development under Articles 17, 18, 18-2, and 19 of that Act (including an industrial complex plan under Article 8 of the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes) and due to the formulation or modification of an industrial complex renovation plan under Article 39-7(1) of that Act, a renovation implementation plan under Article 39-7(1) of that Act, a renovation project district plan under Article 39-10(3) of that Act, or a plan for vitalization of a renovation project:

a. Where a project operator under Article 16(1)1, 2, 7, or 8 of the Industrial Sites and Development Act changes the zone by use according to the master management plan to execute a project (including where an industrial complex development plan or an implementation plan need not be modified or formulated pursuant to Article 13-4(2) of the Industrial Sites and Development Act and where a project operator is not designated);

b. Where a project operator under Article 16(1)2-2 or 3 through 6 of the Industrial Sites and Development Act installs public facilities pursuant to Article 13-4(4) or 33 (1) of that Act, uses profits from sale in lots for sale for the purpose of reducing the price of land for industrial facilities pursuant to Article 38(5) of that Act, or reinvests development gains pursuant to Article 39-15 of that Act.

(11) A management agency may request a person who desires to move into an industrial complex to submit data prescribed by Ministerial Decree of the Trade, Industry and Resources in order to confirm whether the development activities under Article 13-4(2) of the Industrial Sites and Development Act are applicable. <Added on Jan. 9, 2024; Oct. 1, 2025>

(12) Where a Mayor/Do Governor modifies an industrial complex development plan for a national industrial complex pursuant to Articles 6 and 49 of the Industrial Sites and Development Act, he or she shall notify such modification to the relevant management agency, which then shall reflect the modification in the master management plan. <Added on Jan. 9, 2024>

(13) A management agency shall review the change of the types of business eligible for occupancy in an industrial complex prescribed by Presidential Decree, among industrial complexes designated pursuant to Articles 6 and 7 of the Industrial Sites and Development Act, every five years, as prescribed by Decree of the Ministry of Trade, Industry and Resources, and may request the designation authority of the relevant industrial complex to change the types of business eligible for main target business, if it is necessary to do so. <Added on Jan. 9, 2024; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 33-2(Permission and authorization deemed granted under other Acts) #

(1) When a management agency, authorized administrator or a Mayor/Do Governor changes, or approves the change of, matters prescribed by Presidential Decree in a master management plan of the industrial complex, the completion of which has been authorized pursuant to Article 37 of the Industrial Sites and Development Act, matters on which he or she has already consulted with a person authorized to designate the relevant industrial complex and the head of the relevant administrative agency regarding the following permission, decision, authorization, consultation or approval, etc. (hereafter referred to as "authorization, etc." in this Article) pursuant to paragraph (3) shall be deemed to have been authorized, etc. and when the change or approval for change of the master management plan is publicly notified pursuant to Article 33(6), authorization, etc. under the following Acts shall be deemed to have been publicly notified or announced: <Amended on May 31, 2010; Apr. 14, 2011; Jan. 14, 2014; Jun. 3, 2014; Dec. 10, 2019; Dec. 27, 2022; Mar. 10, 2026>

1. Building permission under Article 11 of the Building Act, reporting on construction under Article 14 of that Act, permission for or reporting on change of matters permitted or reported pursuant to Article 16 of that Act, building permission for, or reporting on construction of, a temporary building pursuant to Article 20 of that Act, and consultation on construction pursuant to Article 29 of that Act;

2. Decision of a City/Gun management plan (excluding designation and decision of change of specific use areas, specific use zones and specific use districts) under Article 30 of the National Land Planning and Utilization Act, permission for development activities under Article 56 of that Act, designation of a City/Gun planning facilities project implementor under Article 86 of that Act and authorization of an execution plan under Article 88 of that Act;

3. Permission for execution of roadwork to a person other than a road management agency under Article 36 of the Road Act, permission for occupation and use of a road under Article 61 of the Act and consultations with or approval by a road management agency under Article 107 of the Act;

4. Permission to open a private road under Article 4 of the Private Road Act;

5. Permission for or reporting on acts in a forest reserve (excluding a forest genetic resources reserve) under Article 9(1) and (2) 1 and 2 of the Forest Protection Act, cancellation of designation of a forest reserve under Article 11(1)1 of that Act, permission for, or reporting on, the logging of trees, etc. under Article 36(1) and (5) of the Creation and Management of Forest Resources Act, permission for conversion of a mountainous district under Article 14 of the Mountainous Districts Management Act and reporting to convert a mountainous district under Article 15 of that Act, and permission for and reporting on the temporary use of mountainous districts under Article 15-2 of that Act;

6. Approval of, and approval to revise, an execution plan for an industrial complex development under Articles 17, 17-2, 18, 18-2 and 19 of the Industrial Sites and Development Act;

7. Approval for the modification of a master plan for small river maintenance pursuant to Article 6 of the Small River Maintenance Act, consultation about an implementation plan for small river maintenance pursuant to Article 8 of that Act, permission for implementation of small river conservation work pursuant to Article 10 of that Act, and permission for occupancy and use of a small river pursuant to Article 14 of that Act;

8. Authorization for general water works and industrial water works pursuant to Articles 17 and 49 of the Water Supply and Waterworks Installation Act and authorization of installation of exclusive waterworks and exclusive industrial waterworks pursuant to Articles 52 and 54 of that Act;

9. Reporting on the commencement, change or completion of a project pursuant to Article 86(1) of the Act on the Establishment and Management of Spatial Data;

10. Permission for public sewerage works under Article 16 of the Sewerage Act and permission for occupancy and use of public sewerage under Article 24 of that Act.

(2) When a management agency which intends to obtain authorization, etc. deemed to be granted under paragraph (1) files an application for approval to change a master management plan under the latter part of Article 33(1), it shall submit to the authorized administrator related documents prescribed by the relevant Act, along with the application.

(3) When a management agency, authorized administrator or Mayor/Do Governor changes, or approves to change, a management master plan, if a matter falling under any subparagraph of paragraph (1) is included in the details of the master plan, consultation shall be made with a person authorized to designate the relevant industrial complex and the head of the relevant administrative agency. In such cases, a person authorized to designate the relevant industrial complex or the head of the relevant administrative agency who has received a request for consultation from a management agency, authorized administrator or Mayor/Do Governor shall provide their opinions within 15 days from the receipt of such request.

(4) Where a management agency has changed a management master plan under paragraph (1), it shall notify a person authorized to designate the relevant industrial complex and the head of the relevant administrative agency of the changes.

(5) Where authorization, etc. under the related Act is deemed to have been obtained pursuant to paragraph (1), fees or use charges imposed under the relevant related Act shall be exempt.

(6) Except as provided in paragraphs (1) through (5), standards for and effects of legal fiction of authorization, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Added on Mar. 10, 2026>

[This Article Added on Apr. 12, 2010]

Article 34(Sale and lease of State-owned land and public land in industrial complexes) #

(1) The Minister of Trade, Industry and Resources or the heads of local governments may sell or lease State-owned or public land, factories, buildings and other facilities (in cases of State-owned land, factories, buildings, and facilities, only applicable to those, management of which is transferred by the managing authorities or those designated by the Minister of Economy and Finance for management or disposal thereof) to occupant enterprises or the support institutions, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Prices of land, factories, buildings and facilities owned by the State (hereinafter referred to as "factories, etc.") to be sold or leased under paragraph (1) shall be as determined by the Minister of Trade, Industry and Resources in consultation with the Minister of Economy and Finance, notwithstanding the provisions of the State Property Act, and prices of public land and factories, etc. shall be determined by the head of the relevant local government, notwithstanding the Public Property and Commodity Management Act. In such cases, the amount may be denominated in foreign currency, if necessary. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) Occupant enterprises or support institutions, which have leased State-owned or public land pursuant to paragraph (1), may build factories, etc. on the leased land, notwithstanding the State Property Act and the Public Property and Commodity Management Act.

[This Article Wholly Amended on Feb. 6, 2009]

Article 35 #

Deleted. <Mar. 3, 2006>

Article 35-2 #

Deleted. <May 18, 2015>

Article 35-3 #

Deleted. <Dec. 31, 2004>

Article 35-4 #

Deleted. <Dec. 31, 1996>

Article 35-5(Occupancy) #

A management agency may perform each of the following affairs as proxy for a foreign investment enterprise that has concluded an occupancy agreement pursuant to Article 38(1) or for foreign investors who invest in the relevant foreign investment enterprise: <Amended on Jan. 19, 2016>

1. Affairs related to various reports and requests for authorization or permission therefor, etc. of foreigners under the Foreign Investment Promotion Act;

2. Affairs related to various reports on land transactions and requests for permission, etc. granted under the Act on Report on Real Estate Transactions;

3. Affairs related to reporting and requests for permission, etc. granted under the Building Act, and the other relevant statutes.

[This Article Wholly Amended on Feb. 6, 2009]

Article 35-6(Support for enterprises in North Korea) #

The Government may allow the Corporation to execute projects to support South Korean enterprises that invest in North Korea, establish a factory and manage industrial sites for business activities in North Korea.

[This Article Wholly Amended on Feb. 6, 2009]

Article 36(Sale in lots or lease of developed land) #

(1) Where a management agency intends to be entrusted by a project implementor prescribed in Article 16 of the Industrial Sites and Development Act (hereinafter in this Chapter referred to as "project implementor") with business regarding sale in lots or lease of land pursuant to Article 38 of that Act, it shall submit a plan for sale in lots or lease of land to the authorized administrator; provided, in the case of an agro-industrial complex, it shall obtain approval from the Mayor/Do Governor or the head of a large city. <Amended on Feb. 6, 2009; Apr. 12, 2010; Feb. 18, 2020>

(2) Deleted. <Feb. 8, 1999>

(3) Necessary matters such as the object, scope and procedures for approval under paragraph (1) shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2009>

Article 37(General contribution) #

(1) Deleted. <Dec. 31, 1996>

(2) A management agency may, upon approval by the authorized administrator, collect general contributions from occupant enterprises and the support institutions, if necessary for establishing, maintaining, and repairing roads, wastewater treatment stations, waste disposal stations, street lights and common facilities prescribed by Decree of the Ministry of Trade, Industry and Resources, other than public facilities which have to be maintained and managed by the State or local governments; provided, in the case of general contributions regarding the agro-industrial complex, it shall obtain approval from the Mayor/Do Governor or the head of a large city as prescribed by Presidential Decree. <Amended on Feb. 6, 2009; Mar. 23, 2013; Feb. 18, 2020; Oct. 1, 2025>

(3) Deleted. <Dec. 31, 1996>

(4) Standards and methods concerning general contributions under paragraph (2) shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2009>

Article 38(Occupancy agreement) #

(1) Any person who engages in or intends to engage in manufacturing business in an industrial complex shall conclude an occupancy agreement (hereinafter referred to as "occupancy agreement") with a management agency, as prescribed by Decree of the Ministry of Trade, Industry and Resources; provided, this shall not apply to cases prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Where any occupant enterprise or support institution intends to modify matters prescribed by Decree of the Ministry of Trade, Industry and Resources among the matters related to occupancy agreement, it shall conclude a new modification agreement. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) Paragraphs (1) and (2) shall apply mutatis mutandis to any person who engages in or intends to engage in business other than manufacturing business in an industrial complex.

(4) Where the administrative corporation or the consultative council of occupant enterprises among management agencies, concludes an occupancy agreement pursuant to paragraph (1) or a modification agreement pursuant to paragraph (2), it shall report thereon to the head of a Si/Gun/Gu, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 38-2(Leasing business in industrial complex) #

(1) Any person who intends to engage in the leasing business of industrial sites or factories, etc. in the industrial facilities zone and similar (excluding the supporting institutions and the implementers of industrial complex development projects referred to in Article 16(1)1 and 2 of the Industrial Sites and Development Act) shall conclude an occupancy agreement with the management agency after reporting on the completion of establishment of factories and others pursuant to Article 15(1) or reporting on the commencement of business pursuant to paragraph (2) of that Article; provided, he or she may conclude an occupancy agreement before reporting on the completion of establishment of factories and others or on the commencement of business, in any of the following cases: <Amended on Jul. 25, 2011; Jul. 30, 2013; Dec. 30, 2014; Dec. 2, 2016; Nov. 26, 2019; Aug. 17, 2021>

1. Where a person intends to lease a building which has been registered as a factory for partial operation pursuant to Article 16(3) to a person who engages in electricity generation business referred to in subparagraph 3 of Article 2 of the Electric Utility Act by using solar energy referred to in subparagraph 2a of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy;

2. Where the Korea Asset Management Corporation leases an industrial site or a factory, etc. to provide support for the improvement of financial structure of an occupant enterprise pursuant to 26 (1) 2 d of the Act on the Establishment of Korea Asset Management Corporation.

(2) The term of a leasing agreement of industrial sites or factories shall be at least five years; provided, if requested by a tenant, it may be at least one year, and if a tenant requests the renewal of an agreement between two and six months prior to the termination of the term of the leasing agreement, it may be renewed by up to five years under the same terms and conditions of the previous leasing agreement. <Added on Dec. 30, 2014>

(3) Matters regarding the scope of leasing business, base value of rents, the term of an occupancy agreement, etc. of industrial sites or factories, etc. concluded pursuant to paragraph (1) shall be prescribed by Presidential Decree. <Amended on Dec. 30, 2014>

(4) Where any person who engages in the leasing business of industrial sites or factories, etc. in an industrial facilities zone, etc. intends to transfer an industrial site or factory, etc. before the term of an occupancy agreement concluded pursuant to paragraph (1) expires, he or she shall transfer it to a management agency at an amount specified in Article 39(5), and where a management agency cannot purchase it, Article 39(2) shall apply mutatis mutandis. The same shall also apply where the person intends to transfer it within a period prescribed by Presidential Decree after reporting on the completion of the factory establishment, etc. or on the commencement of business referred to in the subparagraphs of Article 39(1), after the term of an occupancy agreement expires. <Amended on Dec. 30, 2014>

(5) Deleted. <Dec. 2, 2016>

(6) Where part of an industrial complex has been designated as an industrial complex solely for lease pursuant to Article 46-6 of the Industrial Sites and Development Act, a management agency shall determine matters necessary for managing the industrial complex solely for lease, such as qualifications for occupancy and leasing term, in consultation with an implementer of the project and reflect such matters in a management master plan. <Amended on Dec. 30, 2014>

(7) No person who has rented an industrial site that belongs to an industrial complex solely for lease under paragraph (6) shall sublet it to any other person; provided, this shall not apply to unavoidable cases prescribed by Presidential Decree, such as subleasing the relevant industrial site at a lower price than rents. <Amended on Dec. 30, 2014>

(8) The Minister of Trade, Industry and Resources may conduct a demand survey concerning the location, size, etc. of an industrial complex solely for lease pursuant to paragraph (6) for promoting industrial clustering, etc., in consultation with the Minister of Land, Infrastructure and Transport. <Amended on Mar. 23, 2013; Dec. 30, 2014; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 38-3(Special cases concerning lease of industrial sites) #

(1) Notwithstanding the main clause of Article 38-2(1), an occupant enterprise may lease all or part of an industrial site in an industrial facilities zone, etc. in any of the following cases:

1. Where an adjacent occupant enterprise intends to install manufacturing facilities or ancillary facilities (limited to where the requirements prescribed by the management guidelines are satisfied) through physical or functional linkages with existing manufacturing facilities with respect to an industrial site in an industrial facilities zone, etc. owned by the occupant enterprise;

2. Where any other occupant enterprise (including a person intending to perform construction works under a contract) intends to use an industrial site in an industrial facilities zone, etc. owned by the occupant enterprise as a materials stockpiling yard, a parking lot, etc. for purposes of adding or expanding a factory, etc., which is deemed necessary by the authorized administrator;

3. Where an occupant enterprise (limited to an operator of an industrial complex development project under Article 16(1)3 of the Industrial Sites and Development Act, who has installed and occupied facilities in compliance with the relevant industrial complex development plan, or a person who has entered into an occupancy contract under Article 38(1) and (3) of this Act) intends to lease an industrial site in an industrial facilities zone, etc. that it has developed to another occupant enterprise or an enterprise intending to occupy the relevant industrial complex (limited to where approval has been obtained from the person authorized to designate the relevant industrial complex under the proviso of Article 38(9) of the Industrial Sites and Development Act).

(2) An occupant enterprise that intends to lease an industrial site in an industrial facilities zone, etc. pursuant to paragraph (1) may enter into an occupancy contract with a management agency before filing a report on the completion of factory establishment, etc. under Article 15(1) or a report on the commencement of business under paragraph (2) of that Article.

(3) Where an industrial site is leased pursuant to paragraph (1), Article 38-2(2) through (4) shall apply mutatis mutandis to the duration of a lease contract, the scope of the lease business, the standards for the lease price, the duration of an occupancy contract, the disposal of an industrial site in an industrial facilities zone, etc. and other relevant matters.

[This Article Wholly Amended on Jan. 21, 2025]

Article 39(Restrictions on disposal of industrial sites) #

(1) Where any occupant enterprise that owns an industrial site, factory, etc. in an industrial facilities zone, etc. falls under any of the following subparagraphs, and also in cases prescribed by Presidential Decree, it shall transfer an industrial site (when it intends to dispose of a joint-ownership portion, referring to the relevant joint-ownership portion) or factory, etc. to a management agency: <Amended on Dec. 30, 2014; Dec. 10, 2019>

1. Where it intends to dispose of (including disposal of the joint-ownership portion of the relevant industrial site) an industrial site (including an industrial site which has been transferred from a person who has acquired it in sale in lots pursuant to paragraph (2), or the ownership of which has been acquired by decision of a court, succession, etc. and an industrial site partitioned pursuant to Article 39-2(2)1 or an industrial site the ownership of which has been acquired following conversion of an industrial complex for lease only under Article 46-6 of the Industrial Sites and Development Act to an industrial complex subject to sale in lots), factory, etc. which was sold in lots, before it reported on the completion of the factory establishment, etc. pursuant to Article 15(1), or before a period prescribed by Presidential Decree within 10 years after the reporting thereof elapses;

2. Where it intends to dispose of (including disposal of the joint-ownership portion of the relevant industrial site) an industrial site (including an industrial site which has been transferred from a person who has acquired it in sale in lots pursuant to paragraph (2) or the ownership of which has been acquired by decision of a court, succession, etc. and an industrial site partitioned pursuant to Article 39-2(2)1, or an industrial site the ownership of which has been acquired following conversion of an industrial complex for lease only under Article 46-6 of the Industrial Sites and Development Act to an industrial complex subject to sale in lots), factory, etc. which was sold in lots, before it reported on the commencement of business pursuant to Article 15(2), or before a period prescribed by Presidential Decree after the reporting thereof elapses.

(2) Where a management agency cannot purchase an industrial site, factory, etc. of an occupant enterprise pursuant to paragraph (1), it shall transfer the industrial site, factory, etc. to another enterprise selected from among applicants for purchase or the following institutions (hereinafter referred to as "relevant institution"), as prescribed by Presidential Decree: <Amended on May 21, 2009; May 17, 2010; Jul. 25, 2011; Dec. 31, 2018>

1. The Korea SMEs and Startups Agency prescribed in the Small and Medium Enterprises Promotion Act;

2. The Korea Land and Housing Corporation prescribed in the Korea Land and Housing Corporation Act and the Korea Water Resources Corporation under the Korea Water Resources Corporation Act;

3. Banks (including banks established pursuant to Acts, such as the Industrial Bank of Korea Act), the incorporation of which is authorized pursuant to Article 8 of the Banking Act;

4. Other institutions prescribed by Presidential Decree, relating to the establishment of and support for occupant enterprises.

(3) Where any occupant enterprise that owns an industrial site, factory, etc. in an industrial facilities zone, etc. intends to dispose of such industrial site, factory, etc. after a period prescribed by Presidential has elapsed, pursuant to paragraph (1)1, after having reported on the completion of the factory establishment, etc. pursuant to Article 15(1) or after having reported on the commencement of business pursuant to Article 15(2), in cases prescribed by Presidential Decree, it shall report thereon to a management agency, as prescribed by Presidential Decree; provided, this shall not apply where it intends to dispose of the industrial site, factory, etc. to another occupant enterprise or any person who intends to operate the same type of business (referring to the type of business eligible for occupancy pursuant to Article 33(7)2). <Amended on Dec. 30, 2014; Dec. 10, 2019>

(4) When a management agency transfers an industrial site, factory, etc. in an industrial facilities zone, etc. which it has acquired by transfer or it has received a request for purchase pursuant to paragraphs (1) and (2), it may receive the actual cost necessary for the selection of a transferee from a company that acquires it by transfer, as prescribed by Presidential Decree. <Amended on Dec. 30, 2014>

(5) The price for transfer of an industrial site prescribed in paragraphs (1) and (2) shall be determined by adding the interest and cost prescribed by Presidential Decree to the acquisition price, and the price for transfer of a factory, etc. may be determined, based upon the current appraisal price of an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers; provided, where an occupant enterprise makes a request, the transfer price of the industrial site may be lower than the amount obtained by adding the interest and cost prescribed by Presidential Decree to its acquisition price. <Amended on Jan. 19, 2016; Apr. 7, 2020>

(6) Where any person who intends to lease an industrial site, factory, etc. from a leasing business entity prescribed in Article 38-2(1) or to acquire an industrial site, factory, etc. by transfer from another occupant enterprise prescribed in paragraphs (2) and (3) is not an existing occupant enterprise, he or she shall conclude an occupancy agreement prescribed in Article 38(1) or (3) in advance; provided, this shall not apply where any person who intends to acquire it by transfer is the relevant institution.

(7) Matters regarding the sale price and procedures, etc. of an industrial site, factory, etc. purchased by the relevant institution shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 39-2(Partition of industrial sites) #

(1) An authorized administrator, management agency, or project implementor may partition its or his or her industrial site (referring to an industrial site without a building; hereafter the same shall apply in this paragraph) (limited to where an industrial site of an industrial facilities zone, etc. is partitioned as not less than the area prescribed by Decree of the Ministry of Trade, Industry and Resources). In such cases, a project implementor shall pre-consult with the management agency. <Amended on May 18, 2015; Oct. 1, 2025>

(2) Where any occupant enterprise intends to partition its own industrial site (referring to an industrial site with a building) or intends to dispose of its joint-ownership portion thereof, after having reported on the completion of the factory establishment, etc. pursuant to Article 15 (1) or after having reported on the commencement of business pursuant to Article 15 (2), it shall fulfill the following requirements. In such cases, it shall pre-consult with the management agency: <Amended on Jul. 25, 2011; Mar. 23, 2013; May 18, 2015; Oct. 1, 2025>

1. Where it partitions the area of an industrial site: The area partitioned shall exceed the area prescribed by Decree of the Ministry of Trade, Industry and Resources (limited to cases where an industrial site other than an industrial facilities zone, etc. is deemed by the management agency as necessary to limit the partitioned area under the conditions of infrastructure prescribed by Decree of the Ministry of Trade, Industry and Resources);

2. Where it disposes of a joint-ownership portion of an industrial site (excluding joint-ownership portions of industrial sites of knowledge industry centers; hereafter the same shall apply in this subparagraph and paragraph (4) 2): The area calculated by multiplying the whole area of an industrial site by the percentage of a joint-ownership portion of a joint owner shall exceed the area prescribed by Decree of the Ministry of Trade, Industry and Resources pursuant to subparagraph 1 (limited to cases where an industrial site other than an industrial facilities zone, etc. is deemed necessary by the management agency to limit the partitioned area under the conditions of infrastructure prescribed by Decree of the Ministry of Trade, Industry and Resources).

(3) Any person who intends to partition an industrial site in accordance with paragraph (1) shall build the infrastructure prescribed by Decree of the Ministry of Trade, Industry and Resources, such as roads, water supply facilities, and tap-water and sewage systems for the partitioned industrial site. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(4) When an occupant enterprise falls under any of the following subparagraphs, it shall transfer the relevant industrial site or a joint-ownership portion to a management agency at a price specified in Article 39(5); provided, where a management agency cannot purchase such site or portion, Article 39(2) shall apply mutatis mutandis: <Amended on Mar. 30, 2011>

1. Where it intends to dispose of the partitioned industrial site (only applicable to cases where it falls short of the standard factory area ratio or standard building area ratio) before a period of up to 10 years that is prescribed by Presidential Decree has elapsed from the date the industrial site is partitioned pursuant to paragraph (2)1;

2. Where it intends to dispose of a joint-ownership portion acquired before a period prescribed by Presidential Decree pursuant to subparagraph 1 has elapsed from the date it acquires a joint-ownership portion partitioned pursuant to paragraph (2)2.

(5) Notwithstanding paragraph (4) 1, if a company subject to restructuring under Article 21 of the Industrial Development Act (hereinafter referred to as "company subject to restructuring") satisfies all of the following requirements, it may dispose of partitioned industrial sites. In such cases, it shall consult with the management agency in advance: <Added on Jul. 25, 2011; Mar. 23, 2013; Oct. 1, 2025>

1. A period prescribed by Presidential Decree in the range of ten years shall have elapsed since a report on the completion of factory establishment, etc. under Article 15(1) or a report on the commencement of business under Article 15(2) is filed;

2. A period prescribed by Presidential Decree in the range of five years shall have elapsed from the date a company becomes subject to restructuring;

3. An industrial site shall be partitioned pursuant to paragraph (2)1 after a company becomes subject to restructuring;

4. The area of an industrial site before partitioning shall be not less than the area prescribed by Decree of the Ministry of Trade, Industry and Resources;

5. Infrastructure referred to in paragraph (3) shall be installed in an industrial site before a company subject to restructuring disposes of the industrial site.

[This Article Wholly Amended on Feb. 6, 2009]

Article 40(Acquisition of industrial site by auction) #

(1) Where any person who has acquired an industrial site or a factory, etc. by auction or other Acts fails to conclude an occupancy agreement within a period prescribed by Decree of the Ministry of Trade, Industry and Resources from the date of such acquisition, the person shall transfer such industrial site or factory, etc. to a third person within a period prescribed by Decree of the Ministry of Trade, Industry and Resources from the date such period has elapsed. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Where any person who has acquired an industrial site and factory, etc. pursuant to paragraph (1) intends to transfer the same to a third party, he or she shall report thereon to a management agency, as prescribed by Presidential Decree; provided, this shall not apply where he or she intends to dispose of an industrial site and factory, etc. to an occupant enterprise.

(3) Where any person who has acquired an industrial site and factory, etc. pursuant to paragraph (1) is not a current occupant enterprise, he or she shall enter into an occupancy agreement in advance in accordance with Article 38(1) or (3); provided, this shall not apply where a person who intends to acquire the same is the relevant institution.

[This Article Wholly Amended on Feb. 6, 2009]

Article 40-2(Disposal of industrial sites for which no occupancy agreement is concluded) #

(1) Where a person who has acquired an industrial site or factory, etc. (including persons who receive the transfer of an industrial site or factory, etc. pursuant to Articles 39(2) and (3) and 40(1)) which is sold in lots fails to conclude an occupancy agreement within a period prescribed by Decree of the Ministry of Trade, Industry and Resources, which ranges from three to six months from the date of acquisition, he or she shall transfer such industrial site or factory, etc. to the management agency within a period prescribed by Decree of the Ministry of Trade, Industry and Resources that ranges from six months to one year from the date on which such period has elapsed, and where the management agency cannot purchase such site or factory, the management agency shall transfer it to another enterprise or relevant institution selected from among those who apply for purchase, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) Where an industrial site or factory, etc. is transferred pursuant to paragraph (1), it shall be transferred at a price determined pursuant to Article 39(5).

[This Article Added on Mar. 30, 2011]

Article 41(Redemption of industrial sites) #

(1) Where all or part of an industrial site which was sold in lots to an occupant enterprise or a support institution is not used for the purpose of an occupancy agreement, a management agency may redeem such site by paying the price prescribed in the main clause of Article 39(5), as prescribed by Presidential Decree.

(2) A management agency shall issue a corrective order to an occupant enterprise or a support institution to use all or part of an industrial site for the purpose of use as stated in an occupancy agreement, as prescribed by Presidential Decree, before redeeming all or part of the industrial site pursuant to paragraph (1).

[This Article Wholly Amended on Feb. 6, 2009]

Article 42(Termination of occupancy agreement) #

(1) Where an occupant enterprise or a support institution falls under any of the following subparagraphs, a management agency shall order the occupant enterprise or support institution to correct the situation within the period prescribed by Presidential Decree, and where the occupant enterprise or support institution fails to comply therewith, it may terminate such an occupancy agreement: <Amended on Feb. 6, 2009; Mar. 23, 2013; Oct. 1, 2025>

1. Where an occupant enterprise fails to commence construction of such factory, etc. within a period prescribed by Decree of the Ministry of Trade, Industry and Resources without good cause after concluding an occupancy agreement;

2. Where the completion of a factory, etc. is deemed virtually impracticable;

3. Where an occupant enterprise fails to commence business within one year after the completion of a factory, etc. or continues to suspend its business for not less than one year without good cause;

4. Where an occupant enterprise or support institution has modified a matter prescribed by Decree of the Ministry of Trade, Industry and Resources, without concluding a contract of modification pursuant to Article 38(2) (including cases where it is applied mutatis mutandis by Article 38(3));

5. Where an occupant enterprise breaches an occupancy agreement pursuant to Articles 38 and 38-2;

6. Where an occupant enterprise leases or disposes of an industrial site and factory, etc. in violation of Article 38-2 or 39 (1) and (2);

7. Where an occupant enterprise disposes of the partitioned industrial site or a joint-ownership portion of an industrial site, in violation of Article 39-2(4).

(2) Any person whose occupancy agreement has been terminated pursuant to paragraph (1) shall immediately cease his or her business, except business prescribed by Presidential Decree, such as the conduct of remaining business. <Amended on Feb. 6, 2009>

(3) Deleted. <Feb. 8, 1999>

(4) Where a management agency has terminated an occupancy agreement pursuant to paragraph (1), it shall notify the head of a Si/Gun/Gu of the details thereof. <Amended on Feb. 6, 2009>

(5) Where a management agency intends to terminate an occupancy agreement pursuant to paragraph (1), it shall hear from the party to such contract in advance. <Amended on Feb. 6, 2009>

Article 43(Disposal of property after termination of occupancy agreement) #

(1) Any person who falls under any of the subparagraphs of Article 39(1) among persons whose occupancy agreement has been terminated on any of the grounds specified in the subparagraphs of Article 42(1), shall dispose of his or her own industrial site and a factory, etc. within a period prescribed by Decree of the Ministry of Trade, Industry and Resources, pursuant to Article 39(1) and (2). <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

(2) As for the cases other than those falling under the subparagraphs of Article 39(1), where any person among those whose occupancy agreement has been terminated on any of the grounds specified in the subparagraphs of Article 42(1), intends to transfer his or her own industrial site and a factory, etc., he or she shall transfer the same to another company or the relevant institution within a period prescribed by Decree of the Ministry of Trade, Industry and Resources after reporting such fact to a management agency, as prescribed by Presidential Decree. The same shall also apply to a person who has discontinued his or her business; provided, this shall not apply where he or she intends to transfer an industrial site and a factory, etc. to another occupant enterprise. <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

(3) Article 39(5) shall apply mutatis mutandis to the transfer price of an industrial site and a factory, etc. pursuant to paragraphs (1) and (2).

(4) A management agency may purchase an industrial site and a factory, etc., which has not been transferred within a period prescribed in paragraph (2) at the price prescribed in Article 39(5).

[This Article Wholly Amended on Feb. 6, 2009]

Article 43-2(Measures taken against persons in default of transfer obligations) #

(1) Where any person who acquires a factory, etc. falls under any of the following subparagraphs, the authorized administrator may order removal of such factory, etc., as prescribed by Presidential Decree: <Amended on Jan. 27, 2016>

1. Where he or she fails to transfer the factory, etc., in violation of Article 40(1);

2. Where he or she fails to transfer the factory, etc., within the period prescribed in Article 43(1) and (2).

(2) A removal order issued pursuant to paragraph (1) may be exercised only where the authorized administrator holds the ownership of the relevant industrial site.

(3) Where the authorized administrator intends to issue a removal order prescribed in paragraph (1), he or she shall hold a hearing.

[This Article Wholly Amended on Feb. 6, 2009]

Article 43-3(Charges for compelling performance) #

(1) The authorized administrator shall set a deadline for performance by Decree of the Ministry of Trade, Industry and Energy against any person who fails to perform the duty of disposal or transfer under Article 43(1) or (2), and may impose an amount equivalent to 20/100 of the value of assets to be disposed of or transferred as charges for compelling performance, if he or she fails to perform his or her duty by the deadline. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The authorized administrator may repeatedly impose and collect the charge for compelling the performance under paragraph (1) once every year from the date on which the duty of disposition or transfer under Article 43(1) or (2) arises until the duty is performed. <Amended on Mar. 10, 2026>

(3) The authorized administrator may entrust a management agency prescribed by Presidential Decree with the affairs of disposition and collection of the charge for compelling the performance. <Amended on Mar. 10, 2026>

(4) Except as provided in paragraphs (1) through (3), imposition and collection of charges for compelling performance shall be governed by Article 31(2) through (6) of the Framework Act on Administration. <Amended on Mar. 10, 2026>

[This Article Wholly Amended on Feb. 6, 2009]

Article 44(Support for occupant enterprises) #

(1) A management agency may engage in support business prescribed by Presidential Decree, such as providing market information, improving efficiency of energy consumption, improving and expanding facilities for promoting the use and diffusion of new and renewable energy (referring to new energy defined in subparagraph 1 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy and renewable energy defined in subparagraph 2 of that Article; hereinafter the same shall apply), supplying energy, promoting industrial relations, and vocational training, for the benefit of occupant enterprises. <Amended on Apr. 12, 2010; Sep. 20, 2024>

(2) The Korea SMEs and Startups Agency under the Small and Medium Enterprises Promotion Act or the Korea Agro-Fisheries and Food Trade Corporation under the Korea Agro-Fisheries and Food Trade Corporation Act, upon request by a management agency, occupant enterprise, or support institution, may provide management and technology guidance (in cases of the Korea Agro-Fisheries and Food Trade Corporation, only applicable to enterprises processing agricultural products and manufacturing food and beverages). <Amended on May 21, 2009; Jul. 25, 2011; Dec. 31, 2018>

[This Article Wholly Amended on Feb. 6, 2009]

Article 44-2(Support for occupant enterprises in fund-raising) #

(1) An occupant enterprise located in an area outside the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act may raise funds on condition that it disposes of industrial sites, factories and other assets it owns, by means of asset-backed securitization under the Asset-Backed Securitization Act or real-estate financing prescribed by Presidential Decree (hereinafter referred to as "asset-backed securitization, etc.), and rent them afterwards.

(2) Where an occupant enterprise intends to raise funds through asset-backed securitization, etc., it shall consult with a management agency in advance.

(3) Article 39(1), (2), and (5) shall apply mutatis mutandis where an occupant enterprise or a party to a contract for asset-backed securitization, etc. under paragraph (1) fails to conduct business under the occupancy contract concluded with a management agency within the period prescribed by Presidential Decree.

(4) The authorized administrator may use the donated difference in land prices arising from asset-backed securitization, etc. in performing the affairs falling under subparagraph 15a and c of Article 2, as prescribed by Presidential Decree.

(5) Details such as the procedures and methods for concluding a contract on asset-backed securitization, etc. shall be prescribed by Presidential Decree.

[This Article Added on Jan. 9, 2024]

Article 45(Safety management for industrial complexes) #

A management agency may provide necessary guidance to occupant enterprises with respect to safety management, pollution control and environmental management, etc., as prescribed by Presidential Decree.

[This Article Wholly Amended on Feb. 6, 2009]

Article 45-2(Formulation of project plan for improving structures of industrial complexes) #

(1) Where an industrial complex, the completion of which has been authorized pursuant to Article 37 of the Industrial Sites and Development Act, falls under any of the following subparagraphs, the authorized administrator may require a project implementer referred to in Article 45-3 (hereafter in this Chapter referred to as "project implementer") to implement an industrial complex structure improvement project (including construction projects prescribed by Presidential Decree notwithstanding subparagraph 9a, c and d of Article 2 of the Industrial Sites and Development Act; hereinafter the same shall apply): <Amended on Aug. 4, 2011; May 18, 2015>

1. Where it is necessary to switch the types of business in an industrial complex to high-value added industries and to relocate industries because of changes in industrial circumstances, urbanization of surrounding areas, etc.;

2. Where the maintenance, repair, improvement and expansion of industrial infrastructure, industrial cluster infrastructure, public facilities, etc., are necessary to support business activities of occupant enterprises;

3. Where the authorized administrator deems it necessary in order to support occupant enterprises and to strengthen competitiveness of an industrial complex.

(2) The Mayor/Do Governor shall formulate and publicly notify a 10-year industrial complex structure improvement plan for an industrial complex prescribed by Presidential Decree (hereinafter referred to as "structure improvement plan"), including the following matters, for an industrial complex prescribed by Presidential Decree, among industrial complexes for which 20 years have elapsed from the date of commencement of construction within his or her jurisdiction, within one year from the date 20 years have elapsed from the date of commencement of construction within his or her jurisdiction. The same shall also apply to any modification to the matters publicly notified: <Added on Jan. 21, 2014; Jan. 9, 2024; Sep. 20, 2024>

1. Analysis of the current status and competitiveness of industrial complexes subject to formulation of a structure improvement plan;

2. Development strategy for industrial complexes subject to formulation of a structure improvement plan;

3. Measures to link such plan with regional development plans, such as a regional industry promotion plan under Article 3-2, and measures to advance occupant industries and add value thereto;

4. Matters concerning placement of promising industries and modification of land use plans;

5. Measures to maintain and expand industrial cluster infrastructure, industrial infrastructure, public facilities, etc.;

5-2. Measures to promote the use and diffusion of new and renewable energy (including measures to improve and expand facilities) and measures to reduce greenhouse gas emissions;

6. Measures attract companies, research institutes, universities, and talented human resources in industrial technology;

7. Matters concerning improvement of the living environment for workers, including settlement and transportation conditions and convenience facilities in industrial complexes subject to formulation of a structure improvement plan.

(3) Where a Mayor/Do Governor intends to formulate or modify a structure improvement plan pursuant to paragraph (2), he or she shall hear opinions of the head of a Si/Gun/Gu having jurisdiction over the relevant industrial complex and consult with the designation authority and the authorized administrator (including the management agency of the relevant national industrial complex, if a national industrial complex is included) thereon. In such cases, the Mayor/Do Governor shall reflect the results of such consultation in the structure improvement plan. <Added on Jan. 9, 2024>

(4) Where a project implementor intends to conduct an industrial complex structure improvement project, he or she shall formulate an industrial complex structure improvement project plan including the following matters (hereinafter referred to as "structure improvement project plan") and obtain approval from the authorized administrator. The same shall also apply to any modification to important matters prescribed by Presidential Decree: <Amended on Jul. 25, 2011; Jan. 21, 2014; May 18, 2015; Jan. 9, 2024>

1. Purpose and necessity of an industrial complex structure improvement project;

2. Implementation period for an industrial complex structure improvement project and a project implementer;

3. Location and surface area of a zone where an industrial complex structure improvement project is to be implemented;

4. Current status of a zone where an industrial complex structure improvement project is to be implemented, and the analysis of the competitiveness thereof;

5. Implementation methods of an industrial complex structure improvement project;

6. Matters concerning changes to the land use plan for the planned industrial complex structure improvement project area;

7. Funding plans;

8. Plans to reinvest profits generated from development under Article 45-6;

9. Other matters prescribed by Presidential Decree.

(5) The location and size of a zone where an industrial complex structure improvement project is to be implemented under paragraph (4)3 shall meet all the following requirements: <Amended on Jan. 21, 2014; May 18, 2015; Oct. 31, 2017; Jan. 9, 2024>

1. Where it overlaps with an area (including an area where formulation of an industrial complex renovation plan prescribed by Presidential Decree is underway) in an industrial complex renovation plan formulated and publicly announced under Article 39-2(5) of the Industrial Sites and Development Act, it shall be in the location and area determined by a project implementor in consultation with the authority designating renovation project districts referred to in Article 39-2(1) of the Industrial Sites and Development Act;

2. It shall not exceed 30/100 of the surface area of the whole industrial complex, including a zone slated for an industrial complex structure improvement project already implemented or being implemented.

(6) A project implementer shall consult with the designation authority and the authorized administrator of an industrial complex subject to an industrial complex structure improvement project before formulating a structure improvement plan. In such cases, a project implementer shall reflect the results of such consultation in the structure improvement plan. <Amended on Jan. 21, 2014; May 18, 2015; Jan. 9, 2024>

(7) When the authorized administrator intends to approve a structure improvement project plan under paragraph (4), he or she shall hear opinions from occupant enterprises and the head of a relevant local government and consult with a person authorized to designate the relevant industrial complex and the head of a relevant administrative agency. The same shall apply to any revision to significant matters prescribed by Presidential Decree. <Amended on Jan. 21, 2014; Jan. 9, 2024>

(8) When the authorized administrator intends to approve a structure improvement project plan (including approval for revision; hereinafter the same shall apply), he or she shall ensure such plan is in accordance with a master plan for promoting industrial clustering, a master plan for the management of industrial complexes and a structure improvement plan. <Amended on Jan. 21, 2014; Jan. 9, 2024>

(9) When the authorized administrator approves a structure improvement project plan, he or she shall publicly announce such plan, as prescribed by Presidential Decree. <Amended on Jan. 21, 2014; Jan. 9, 2024>

(10) When a structure improvement project plan is approved and publicly notified under paragraph (9), a master plan for the management of industrial complexes under Article 33 shall be deemed changed accordingly. In such cases, public notice under Article 33(6) shall not be omitted. <Added on Jul. 25, 2011; Jan. 21, 2014; Dec. 10, 2019; Jan. 9, 2024>

(11) The Minister of Trade, Industry and Resources may preferentially support the following projects for industrial complexes for which a structure improvement plan has been formulated and publicly notified pursuant to paragraph (2): <Added on Jan. 9, 2024; Oct. 1, 2025>

1. Industrial complex structure improvement projects under subparagraph 11 of Article 2;

2. Competitiveness strengthening projects for industrial clusters under subparagraph 12 of Article 2;

3. Projects for promoting smart green industrial complexes under subparagraph 14-3 of Article 2;

4. A project for promoting technology transfer and commercialization by local governments prescribed in Article 17 of the Technology Transfer and Commercialization Promotion Act.

5. Projects for developing industrial technology prescribed in Article 11 of the Industrial Technology Innovation Promotion Act, and projects for developing infrastructure for industrial technology referred to in Article 19 of that Act;

6. Facility investment of repatriating enterprises eligible for assistance selected pursuant to Article 7 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation.

(12) The Minister of Trade, Industry and Resources may partially subsidize expenses incurred in the formulation of a structure improvement plan. <Added on Jan. 9, 2024; Oct. 1, 2025>

[This Article Wholly Amended on Apr. 12, 2010]

Article 45-3(Implementor of industrial complex structure improvement project) #

(1) Any of the following persons may implement an industrial complex structure improvement project: <Amended on Jul. 25, 2011; May 18, 2015>

1. The State or local governments;

2. Management agencies;

3. Corporations incorporated by the participation of entities falling under subparagraph 1 or 2 and private enterprises satisfying the requirements prescribed by Presidential Decree in investment for the purpose of an industrial complex structure improvement project; provided, this shall be limited to corporations observing the investment ratio prescribed by Presidential Decree;

4. Project implementers referred to in subparagraph 7 of Article 2 of the Act on Public-Private Partnerships in Infrastructure;

5. Other persons prescribed by Presidential Decree, such as local public enterprises.

(2) Where a projector implementor referred to in paragraph (1) deems it necessary to efficiently implement an industrial complex structure improvement project, he or she may have any of the following persons (hereinafter referred to as "agent") conduct part of the industrial complex structure improvement project by proxy, as prescribed by Presidential Decree: <Amended on Jul. 25, 2011; May 18, 2015>

1. Landowners of the relevant industrial complex;

2. Corporations incorporated by the participation of private enterprises satisfying the requirements prescribed by Presidential Decree in investment for the purpose of an industrial complex structure improvement project.

[This Article Added on Apr. 12, 2010]

[Title Amended on May 18, 2015]

[Previous Article 45-3 moved to Article 45-9 <Apr. 12, 2010>]

Article 45-4(Deemed authorization or permission under other Acts) #

(1) When an authorized administrator approves a structure improvement project plan, matters on which he or she has already consulted with a person authorized to designate the relevant industrial complex and the head of a relevant administrative agency regarding the following permission, decision, authorization, consultation, approval, etc. (hereafter in this Article referred to as "authorization, etc.") on such structure improvement project plan pursuant to Article 45-2(7), shall be deemed to have obtained the relevant authorization, etc., and when approval for a structure improvement project plan is publicly notified pursuant to Article 45-2(9), authorization, etc. under the following Acts shall be deemed to have been publicly announced or publicly notified: <Amended on May 31, 2010; Apr. 14, 2011; Jan. 14, 2014; Jan. 21, 2014; Jun. 3, 2014; Dec. 27, 2022; Jan. 9, 2024; Mar. 10, 2026>

1. Building permission under Article 11 of the Building Act, permission for or reporting on change of matters permitted or reported pursuant to Article 16 of that Act, permission for or reporting on construction of a temporary building pursuant to Article 20 of that Act and consultation about building pursuant to Article 29 of that Act;

2. Decision of a City/Gun management plan (excluding designation and decision of change of specific use areas, specific use zones and specific use districts) under Article 30 of the National Land Planning and Utilization Act, permission for development activities under Article 56 of that Act, designation of a City/Gun planning facilities project implementor under Article 86 of that Act and authorization of an execution plan under Article 88 of that Act;

3. Permission for execution of roadwork to a person other than a road management agency under Article 36 of the Road Act, permission for occupation and use of a road under Article 61 of the Act and consultations with or approval by a road management agency under Article 107 of the Act;

4. Permission to open a private road under Article 4 of the Private Road Act;

5. Permission for or reporting on acts in a forest reserve (excluding a forest genetic resources reserve) under Article 9(1) and (2) 1 and 2 of the Forest Protection Act, cancellation of designation of a forest reserve under Article 11(1)1 of that Act, permission for, or reporting on, the logging of trees, etc. under Article 36(1) and (5) of the Creation and Management of Forest Resources Act, permission for conversion of a mountainous district under Article 14 of the Mountainous Districts Management Act and reporting to convert a mountainous district under Article 15 of that Act, and permission for and reporting on the temporary use of mountainous districts under Article 15-2 of that Act;

6. Change of a plan for development of industrial sites under Articles 6, 7, 7-2 and 8 of the Industrial Sites and Development Act and approval of, and approval to change of, an execution plan of development of an industrial complex under Articles 17, 17-2, 18, 18-2 and 19 of that Act;

6-2. Modification of an industrial complex renovation plan under Article 39-2(5) of the Industrial Sites and Development Act, modification of a renovation implementation plan under Article 39-7(1) of that Act, modification of a renovation project district plan under Article 39-10(3) of that Act, and modification of a renovation project promotion plan under Article 39-12(2) of that Act;

7. Approval for the modification of a master plan for small river maintenance pursuant to Article 6 of the Small River Maintenance Act, consultation about an implementation plan for small river maintenance pursuant to Article 8 of that Act, permission for implementation of small river conservation work pursuant to Article 10 of that Act, and permission for occupancy and use of a small river pursuant to Article 14 of that Act;

8. Authorization for general water works and industrial water works pursuant to Articles 17 and 49 of the Water Supply and Waterworks Installation Act and authorization of installation of exclusive waterworks and exclusive industrial waterworks pursuant to Articles 52 and 54 of that Act;

9. Reporting on the commencement, change or completion of a project pursuant to Article 86(1) of the Act on the Establishment and Management of Spatial Data;

10. Permission for public sewerage works under Article 16 of the Sewerage Act and permission for occupancy and use of public sewerage under Article 24 of that Act.

(2) When a project implementor who intends to obtain deemed authorization, etc. pursuant to paragraph (1) files an application for approval of a structure improvement project plan, he or she shall submit related documents prescribed by the relevant Act together with the application to the authorized administrator. <Amended on Jan. 9, 2024>

(3) When the authorized administrator approves a structure improvement project plan, if a matter falling under any subparagraph of paragraph (1) is included in the details of the plan, he or she shall consult with the head of the relevant administrative agency in advance. <Amended on Jan. 9, 2024>

(4) The head of a relevant administrative agency shall submit his or her opinion within 15 days of receipt of a request for consultation under paragraph (3) (where the answer period prescribed by statutes or regulations which prescribe matters falling under the authority of the head of the relevant administrative agency exceeds 15 days, referring to that period). <Amended on Dec. 10, 2019>

(5) Where authorization, etc. under relevant statutes is deemed obtained under paragraph (1), fees or use charges imposed pursuant to the relevant statutes shall be exempt. <Amended on Dec. 10, 2019; Mar. 10, 2026>>

(6) Except as provided in paragraphs (1) through (5), standards for and effects of legal fiction of authorization, etc. shall be governed by Articles 24 through 26 of the Framework Act on Administration. <Added on Mar. 10, 2026>

[This Article Added on Apr. 12, 2010]

[Previous Article 45-4 moved to Article 45-10 <Apr. 5, 2010>]

Article 45-5(Bearing expenses) #

(1) Expenses associated with an industrial complex structure improvement project shall be borne by a project implementor. <Amended on May 18, 2015>

(2) The State or a local government may partially subsidize expenses associated with any of the following, among industrial complex structure improvement projects implemented by a project implementer falling under Article 45-3(1)2 through 5; provided, it may also subsidize some of expenses incurred in relation to industrial infrastructure, in the case of industrial complex structure improvement projects implemented in a national industrial complex where at least 30 years have lapsed since its construction: <Amended on Jul. 25, 2011; May 28, 2013; May 18, 2015; Sep. 20, 2024>

1. Public facilities;

2. Facilities for the use and diffusion of new and renewable energy.

[This Article Added on Apr. 12, 2010]

[Previous Article 45-5 moved to Article 45-11 <Apr. 12, 2010>]

Article 45-6(Re-investment of development profits) #

(1) Each project implementor or agent shall reinvest some of the development profits earned from an industrial complex structure improvement project into other projects for improving the industrial complex structure prescribed by Presidential Decree, such as installing industrial infrastructure and public facilities, as prescribed by Presidential Decree; provided, this shall not apply to an industrial complex structure improvement project conducted by a project implementor under Article 45-3(1)1 or 2 (excluding one conducted by proxy under paragraph (2) of that Article). <Amended on Jul. 25, 2011; May 18, 2015; Jan. 9, 2024>

(2) A management agency referred to in Article 30(2)3 through 5 that is a project implementor, shall establish and operate separate accounts, as prescribed by Presidential Decree, so that it may make re-investment pursuant to paragraph (1) and raise funds to cover operating costs without difficulties.

[This Article Added on Apr. 12, 2010]

[Previous Article 45-6 moved to Article 45-12 on Apr. 12, 2010]

Article 45-7(Authorization for project completion) #

(1) Where a project implementor has fully or partially completed an industrial complex structure improvement project, he or she shall obtain authorization for project completion from the authorized administrator, as prescribed by Presidential Decree. <Amended on May 18, 2015>

(2) Upon receipt of an application for authorization for project completion pursuant to paragraph (1), the authorized administrator shall conduct completion inspection, without delay.

(3) If necessary for the efficient inspection of project completion, each authorized administrator may request relevant administrative agencies, public institutions, research institutes and other specialized institutions or organizations to inspect whether such project has been completed. In such cases, the project implementor shall bear the associated costs. <Added on Jul. 25, 2011>

(4) Where the authorized administrator shall give notice to an applicant for authorization for project completion as to whether or not to authorize project completion or of an extension of the processing period under statutes or regulations relating to processing civil petitions within 30 days of receipt of an application for said authorization under paragraph (1). <Added on Dec. 10, 2019>

(5) Where the authorized administrator fails to give notice to the applicant as to whether or not to authorize application or of an extension of the processing period under statutes or regulations relating to processing civil petitions within the period prescribed in paragraph (4), authorization shall be deemed granted on the day after the date said period (referring to the relevant processing period if the processing period has been extended or re-extended under statutes or regulations relating to processing civil petitions) expires. <Added on Dec. 10, 2019>

(6) When the authorized administrator has authorized the completion of a project under paragraph (1) (including cases where authorization of completion is deemed obtained pursuant to paragraph (5)), he or she shall publicly announce such fact as prescribed by Presidential Decree, and notify the relevant project implementor thereof. <Amended on Jul. 25, 2011; Dec. 10, 2019>

(7) Where the authorized administrator has consulted with the head of the relevant administrative agency under paragraph (9) on approval for use, inspection, verification, authorization, etc. under the following subparagraphs in granting authorization for project completion under paragraph (1), the relevant approval for use, etc. shall be deemed obtained: <Added on Jul. 25, 2011; Jan. 14, 2014; Dec. 10, 2019>

1. Granting approval for use of buildings referred to in Article 22 of the Building Act;

2. Inspecting completion of construction for development activities referred to in Article 62 of the National Land Planning and Utilization Act, and inspecting completion of City planning facility projects referred to in Article 98 of that Act;

3. Confirming completion of road occupation works referred to in Article 62(2) of the Road Act;

4. Authorizing completion of industrial complex development projects referred to in Article 37 of the Industrial Sites and Development Act;

5. Inspecting completion of small river works referred to in Article 10(3) of the Small River Maintenance Act;

6. Water quality testing at the time of completion of waterworks construction works referred to in Article 19 of the Water Supply and Waterworks Installation Act.

(8) In order for a project implementor to obtain approval for use, etc. deemed to be granted under paragraph (7), he or she shall also submit relevant documents prescribed by relevant statutes to the authorized administrator at the time of applying for authorization for completion. <Added on Jul. 25, 2011; Dec. 10, 2019>

(9) If any matter referred to in the subparagraphs of paragraph (7) is involved in the inspection of project completion, each authorized administrator shall consult with relevant administrative agencies in advance. <Added on Jul. 25, 2011; Dec. 10, 2019>

[This Article Added on Apr. 12, 2010]

[Previous Article 45-7 moved to Article 45-13 <Apr. 12, 2010>]

Article 45-8(Attribution of public facilities) #

Where a project implementor installs new public facilities or public facilities replacing existing public facilities under an industrial complex structure improvement project, Article 26 of the Industrial Sites and Development Act shall apply mutatis mutandis to the attribution of such public facilities. In such cases, the determination of attribution shall be limited to the public facilities prescribed in Article 26 of the Industrial Sites and Development Act. <Amended on May 18, 2015>

[This Article Added on Apr. 12, 2010]

[Previous Article 45-8 moved to Article 45-14 <Apr. 5, 2010>]

Article 45-9(Guidelines for fostering smart green industrial complexes) #

(1) The Minister of Trade, Industry and Resources may formulate and publicly notify guidelines for fostering smart green industrial complexes, as prescribed by Presidential Decree, with regard to specific details about the designation and management of smart green industrial complexes, the business promotion system, the projects for promoting smart green industrial complexes, and other relevant matters. <Amended on Oct. 1, 2025>

(2) Where the guidelines for fostering smart green industrial complexes publicly notified pursuant to paragraph (1) are amended, the details of such amendment shall be publicly notified; provided, the same shall not apply to the modification of minor matters prescribed by Presidential Decree.

[This Article Added on Dec. 8, 2020]

[Previous Article 45-9 moved to Article 45-17 <Dec. 8, 2020>]

Article 45-10(Public offering of smart green industrial complexes) #

(1) The Minister of Trade, Industry and Energy shall, when he or she intends to designate a smart green industrial complex, invite public participation to the Special Metropolitan City, Integrated Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province having an industrial complex within his or her jurisdiction, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025; Mar. 5, 2026>

(2) The Mayor/Do Governor who intends to acquire designation as a smart green industrial complex shall submit an application for designation as a smart green industrial complex (hereinafter referred to as "application for designation") describing the following matters, as prescribed by Presidential Decree:

1. Basic goals and mid- and long-term development directions of the project promotion;

2. Basic status of the relevant industrial complex;

3. Annual plan of project promotion;

4. Matters concerning the utilization of intelligent information technology, such as technological innovation of manufacturing and digitalization of infrastructure of occupant enterprises;

5. Matters concerning the revitalization of new and renewable energy in industrial complexes and the reduction of greenhouse gases;

6. Measures for securing financial resources for promoting a competitiveness enhancement project;

7. Other matters deemed necessary for the designation of the smart green industrial complex, which are prescribed by Presidential Decree.

(3) A Mayor/Do Governor who intends to obtain designation of a smart green industrial complex shall consult with the designating authorities (referring to designating authorities under Articles 6, 7, 7-2, and 8 of the Industrial Sites and Development Act), managing authority of the relevant industrial complex and agencies, and shall submit an agreement along with a request for designation.

[This Article Added on Dec. 8, 2020]

[Previous Article 45-10 moved to Article 45-18 <Dec. 8, 2020>]

Article 45-11(Designation as smart green industrial complexes) #

(1) The Minister of Trade, Industry and Resources shall designate a smart green industrial complex based on the results of evaluating an application for designation. <Amended on Oct. 1, 2025>

(2) 　 The evaluation prescribed in paragraph (1) shall be conducted in consideration of the following criteria:

1.The industrial complex shall enhance its competitiveness, improve the business environment, and convert its industrial structure into an environment-friendly one;

2. The conditions of industrial complex such as the current status of sites shall be suitable for utilizing intelligent information technology for manufacturing innovation of industrial complexes.

3. The industrial complex shall have feasible and practicable plans for energy efficiency utilization of new and renewable energy;

4. The industrial complex shall maintain, repair, improve, and expand existing industrial cluster infrastructure, industrial infrastructure, public facilities, etc. to promote the innovation of manufacturing technology of occupant enterprises and to provide diverse services to support enterprises related thereto;

5. The industrial complex shall have measures in place to secure financial resources for promoting the project;

6. The industrial complex shall be in urgent need of promoting the innovation of manufacturing technology of occupant enterprises and providing diverse services for supporting enterprises related thereto for other reasons.

(3) Where any of the following occupant enterprises or support institutions is located in an industrial complex subject to evaluation, the Minister of Trade, Industry and Resources may give preferential treatment in evaluation to such industrial complex, as prescribed by Presidential Decree: <Amended on Jun. 9, 2023; Oct. 1, 2025>

1. Repatriating enterprises under subparagraph 4 of Article 2 of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation;

2. Institutions, corporations, and organizations participating in projects for mutually-beneficial local jobs under Article 29 of the Special Act on Local Autonomy, Decentralization, and Balanced Regional Development.

(4) Where the Minister of Trade, Industry and Resources designates a smart green industrial complex under paragraph (1), he or she shall publicly notify it in the Official Gazette, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

[This Article Added on Dec. 8, 2020]

[Previous Article 45-11 moved to Article 45-19 <Dec. 8, 2020>]

Article 45-12(Plans for projects to promote smart green industrial complex) #

(1) A project implementer provided for in Article 45-14 shall formulate an project plan to promote a smart green industrial complex (hereinafter referred to as "smart green industrial complex plan") and obtain approval therefor from the Minister of the Trade, Industry and Resources. The same shall also apply where it is intended to alter an approved implementation plan; provided, the same shall not apply to any modification to minor matters prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

(2) A plan for the smart green industrial complex shall be formulated covering the whole area of the industrial complex.

(3) Where the Minister of the Trade, Industry and Resources approves a smart green industrial complex plan, he or she shall publicly notify such fact, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

[This Article Added on Dec. 8, 2020]

[Previous Article 45-12 moved to Article 45-20 < Dec. 8, 2020>]

Article 45-13(Composition of task force) #

(1) The Minister of Trade, Industry and Resources may establish a task force in the Corporation to strategically conduct a smart green industrial complex promotion project; provided, such task force may be established in a management agency for the relevant smart green industrial complex (excluding a smart green project complex designated in a national industrial complex designated and developed pursuant to Article 6 of the Industrial Sites and Development Act) where the Minister of Trade, Industry and Resources approves such establishment at the request of a Mayor/Do Governor. <Amended on Jan. 9, 2024; Oct. 1, 2025>

(2) The Task Force shall be comprised of not more than 15 persons, including the leader thereof, and matters necessary for the organization, operation, etc. of the Task Force shall be prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Oct. 1, 2025>

[This Article Added on Dec. 8, 2020]

[Previous Article 45-13 moved to Article 45-21 <Dec. 8, 2020>]

Article 45-14(Project implementer) #

A project operator entitled to implement a project to promote a smart green industrial complex shall be any of the following:

1. The State or local governments;

2. Public institutions under the Act on the Management of Public Institutions;

3. Other persons prescribed by Presidential Decree as deemed capable of efficiently implementing a project to promote a smart green industrial complex.

[This Article Added on Dec. 8, 2020]

[Previous Article 45-14 moved to Article 45-22 <Dec. 8, 2020>]

Article 45-15(Collection of information of occupant enterprises) #

(1) Where necessary for the project to promote a smart green industrial complex, a project implementer under Article 45-14 shall collect and process information prescribed by Presidential Decree (including data on manufacturing process, industrial cluster infrastructure, infrastructure and public facility data accumulated in the factory of occupant enterprises by utilizing information and communications technology, and information about public data defined in subparagraph 2 of Article 2 of the Act on Promotion of the Provision and Use of Public Data) (hereinafter referred to as "data in an industrial complex"), with the consent of the holder of the information (limited to a person who has legitimate authority to provide data to a third party; hereafter the same shall apply) In such cases, if the project implementer intends to use the information collected and processed by the project implementer (including providing such information to a third party other than the information holder; hereafter the same shall apply in this Article) the implementer shall obtain consent of the information holder.

(2) Where special provisions exist in other statutes with respect to the collection, processing, and use of data in industrial complexes by a project implementer, such statutes shall apply. In such cases, except as otherwise provided in other statutes, the Personal Information Protection Act shall apply to the protection of personal information.

(3) Matters necessary for the collection, processing, and use of data in industrial complexes shall be prescribed by Presidential Decree.

[This Article Added on Dec. 8, 2020]

[Previous Article 45-15 moved to Article 45-23 < Dec. 8, 2020>]

Article 45-16(Special cases on smart green industrial complex) #

(1) Deleted. <Jan. 9, 2021>

(2) A Mayor/Do Governor may preferentially designate a certain area in a smart green industrial complex as a knowledge-based industrial cluster zone, after hearing the opinions of the designation authority under Article 45-11. <Amended on Jan. 9, 2024>

(3) The Minister of Trade, Industry and Resources may grant approval for each of the following to a smart green industrial complex; in such cases, the authorized administrator shall reflect it in the management master plan: <Amended on Oct. 1, 2025>

1. Approval prescribed otherwise in the relevant smart green industrial plan for occupant enterprises and facilities permitted to move to knowledge industry centers, notwithstanding subparagraph 18 of Article 2 and Article 28-5;

2. Granting approval according to a plan for the smart green production phase, if necessary for expanding workers' welfare facilities, the concept of the appurtenant facilities referred to in subparagraph 1 of Article 2.

(4) Article 41 of the Act on the Promotion of Smart City Development and Industry shall apply mutatis mutandis to smart green industrial complexes. In such cases, "State agency or other relevant authority" shall be construed as "project implementer under Article 45-14 of the project to promote smart green industrial complexes; and "national pilot smart city construction project" as "project to promote smart green industrial complexes."

[This Article Added on Dec. 8, 2020]

[Previous Article 45-16 moved to Article 45-24 <Dec. 8, 2020>]

Article 46(Tax reduction and exemption) #

The State or a local government may reduce or exempt corporate tax, income tax, acquisition tax, property tax and registration tax, etc., as prescribed by the Act on Restriction on Special Cases concerning Taxation, in order to facilitate the smooth establishment of industrial sites and to attract occupant enterprises and support institutions into industrial complexes.

[This Article Wholly Amended on Feb. 6, 2009]

Article 47(Funding) #

The State or a local government may take such measures as are necessary for providing funds to ensure a smooth establishment of industrial sites, and to attract occupant enterprises and support institutions into industrial complexes.

[This Article Wholly Amended on Feb. 6, 2009]

Article 48(Report and inspection) #

(1) The Minister of Trade, Industry and Resources may order the Mayor/ Do governor, the Mayor/Do Governor may order the head of a Si/Gun/Gu and the head of a Si/Gun/Gu may order the owner or occupant of a factory, respectively, to report, as necessary, or submit materials regarding the site, construction and registration of a factory, as prescribed by Decree of the Ministry of Trade, Industry and Resources, and may have public officials under his or her control examine the report or materials. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Trade, Industry and Resources may order the management agencies, occupant enterprises, support institutions of national industrial complexes, and the Mayor/Do Governor, the Mayor/Do Governor may order the management agencies, occupant enterprises, support institutions of general industrial complexes and urban high-tech industrial complexes and the head of a Si/Gun/Gu, and the head of a Si/Gun/Gu may order the management agencies, occupant enterprises and support institutions of agro-industrial complexes, respectively, to report as necessary or to submit materials regarding the management of the industrial complex, as prescribed by Decree of the Ministry of Trade, Industry and Resources and may have a public official under his or her control inspect business concerning the management of the industrial complex. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(3) Where a public official conducts inspection pursuant to paragraphs (1) and (2), he or she shall notify any person subject thereto of inspection plans, including the inspection date and time, grounds for inspection and details thereof, etc., no later than seven days prior to the inspection; provided, this shall not apply where an inspection is urgently needed, or where a prior notice is feared to make it impossible to attain the objectives of the inspection on the grounds of the destruction of evidence.

(4) A public official who conducts an inspection pursuant to paragraphs (1) and (2) shall carry identification indicating his or her authority and show it to the persons concerned, and shall deliver a document in which the name of a public official in charge, proposed time of his or her access and objectives of his or her access are entered to persons concerned during entry and inspection.

(5) Matters necessary for report and inspection under paragraphs (1) through (4) shall be prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 49(Guidance and supervision) #

(1) The Minister of Trade, Industry and Resources may guide and supervise the Mayor/Do Governor, the head of a Si/Gun/Gu, and the owner or occupant of a factory concerning the location, construction and registration, etc. of a factory, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Trade, Industry and Resources may guide and supervise the management agencies, occupant enterprises and support institutions concerning management, etc. of industrial complexes, as prescribed by Decree of the Ministry of Trade, Industry and Resources. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]

Article 50(Restrictions on permission for construction) #

The Mayor/Do Governor or the head of a Si/Gun/Gu shall not grant permission to construct a factory, permission to engage in the business, etc. of a factory pursuant to the relevant statutes to any person who fails to obtain approval for construction, extension, relocation or change of a type of business of a factory type under this Act.

[This Article Wholly Amended on Feb. 6, 2009]

Article 51(Delegation and entrustment of authority) #

(1) Part of the authority of the Minister of Trade, Infrastructure and Resources under this Act may be delegated or entrusted to the heads of central administrative agencies, Mayors/Do Governors, heads of Sis/Guns/Gus, management agencies or the Corporation, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

(2) The Minister of Trade, Infrastructure and Resources may entrust the installation and operation of the Factory Establishment Management Information System to the Corporation or institutions or organizations prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Jul. 25, 2011]

Article 51-2(Hearings) #

Where the head of a Si/Gun/Gu intends to take any of the following dispositions, he or she shall hold a hearing: <Amended on Jul. 25, 2011>

1. Revoking approval for the factory establishment, etc. and issuance of orders for reinstatement of the relevant land under Article 13-5;

2. Revoking approval for the installation of manufacturing facilities under Article 14-4;

3. Revoking registration of a factory under Article 17;

4. Revoking approval under Article 13-5 applied mutatis mutandis pursuant to Article 20(6).

[This Article Wholly Amended on Feb. 6, 2009]

Article 51-3(Request for information on business suspension or closedown) #

For the efficient management of industrial complexes, each authorized administrator or management agency may request the Commissioner of the National Tax Service to submit such information as the current status, etc. of enterprises whose business located in relevant industrial complexes is closed down or suspended, the list of which has been submitted under relevant statutes or regulations such as the Value-Added Tax Act. <Amended on Dec. 10, 2019>

[This Article Added on Mar. 30, 2011]

Article 51-4(Re-examination of regulation) #

The Minister of Trade, Industry and Resources shall examine the appropriateness of the grounds for revocation of the authorization of the establishment of an administrative corporation and others under Article 31 (6) every two years, counting from January 1, 2016 (referring to the period that ends on the day before January 1 of every second year) and shall take necessary measures. <Amended on Dec. 10, 2019; Oct. 1, 2025>

[This Article Added on May 18, 2015]

Article 52(Penalty provisions) #

(1) Any of the following persons shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won: <Amended on Mar. 30, 2011; Dec. 30, 2014; May 18, 2015; Dec. 10, 2019; Jan. 9, 2024>

1. Any person who transfers an industrial site or a factory, etc., in violation of Article 38-2(4) or 39 (1), (2), and (5) (including cases applied mutatis mutandis pursuant to Article 44-2(3));

2. Any person who disposes of a partitioned industrial site or a joint-ownership portion of an industrial site, in violation of Article 39-2(4);

3. Any person who transfers an industrial site or factory, etc. to a person, other than a management agency, another enterprise selected from among the applicants for purchase by a management agency or a relevant institution, in violation of Article 40-2(1);

4. Any person who transfers an industrial site or factory, etc. to a person, other than a management agency, or an enterprise or a relevant institution selected by a management agency from among the applicants for purchase, in violation of Article 43(1).

(2) Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended on Jul. 30, 2013; Mar. 21, 2017>

1. Any person who constructs or extends any factory or changes a type of business of a factory without having obtained approval or who changes approved matters without obtaining approval for change (including cases applied mutatis mutandis pursuant to Article 28-2(1)), in violation of Article 13(1);

2. Any person who installs manufacturing facilities, etc. without obtaining approval, in violation of Article 14-3(1);

3. Any person who constructs (including installation of manufacturing facilities under Article 14-3), extends, relocates a factory or changes a type of business of a factory without obtaining approval, or who changes the approved matters without obtaining approval for change, in violation of Article 20(1) and (2);

4. Any person who invites occupants by disseminating false or exaggerated information or by using fraudulent means, in violation of Article 28-4(4);

5. Any person who engages in manufacturing business or any other business without concluding an occupancy agreement pursuant to Article 38(1) or (3);

6. Any person who continues to engage in such business, in violation of Article 42(2).

(3) Any person who has sold a knowledge industry center in lots without obtaining approval under Article 28-4(1) shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding 10 million won. <Added on Jan. 21, 2014>

[This Article Wholly Amended on Feb. 6, 2009]

Article 53(Penalty provisions) #

Any of the following persons shall be subject to a fine not exceeding 15 million won: <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

1. Any person who sells a knowledge industry center, in violation of Article 28-3(3);

2. Deleted; <Jan. 21, 2014>

3. Any person who breaches a duty referred to in Article 28-7(1);

4. Any person who engages in manufacturing or any other business without concluding a contract for revision (excluding revision of insignificant matters prescribed by Decree of the Ministry of Trade, Industry and Resources), in violation of Article 38 (2).

[This Article Wholly Amended on Feb. 6, 2009]

Article 54(Joint penalty provisions) #

Where the representative of a corporation or an agent or employee of, or other persons employed by, the corporation or an individual commits an offense under Article 52 or 53 in connection with the business of the juristic person or the individual, not only shall such violator be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions; provided, this shall not apply where the juristic person or individual has not been negligent in giving due attention and supervision concerning the relevant business to prevent such violation.

[This Article Wholly Amended on Dec. 26, 2008]

Article 55(Administrative fines) #

(1) Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Mar. 30, 2011>

1. Any person who engages in the business of leasing an industrial site and a factory, etc., in violation of Article 38-2;

2. Any person who transfers an industrial site or a factory, etc., without reporting thereon, in violation of Article 39(3), 40 (2) or 43 (2);

3. Any person who fails to transfer an industrial site or a factory, etc., in violation of Article 40(1);

4. Any person who fails to transfer an industrial site or a factory, etc., within a period referred to in Article 40-2(1) or 43 (1) and (2);

5. Any person who transfers an industrial site or a factory, etc., in violation of Article 43(2);

6. Any person who refuses, interferes with or evades an inspection under Article 48(1) or (2).

(2) Any of the following persons shall be subject to an administrative fine not exceeding two million won: <Amended on Apr. 12, 2010; Mar. 30, 2011; Mar. 23, 2013; May 18, 2015; Dec. 8, 2020; Oct. 1, 2025>

1. Any person who fails to report on completion referred to in Article 11(2) or files a false report to run a factory;

2. Any person who changes approved matters without any report pursuant to the proviso to Article 13(1), the proviso to Article 14-3(1), or the proviso to Article 20(2);

3. Any person who runs a factory without reporting the completion of the factory establishment, etc., under Article 15(1) or with a false report;

4. Any person who commences his or her business without reporting the commencement of his or her business, in conformity with the standard building area ratio under Article 15(2), or after reporting thereon by fraud or other improper means;

5. Any person who operates part of a factory without registering for a partial operation under Article 16(3);

6. Any person who changes registered matters without registration of change change under Article 16(4);

7. Any person who fails to report under Article 28-6(2) or submits a false report;

8. Deleted; <May 18, 2015>

9. Any person who conducts manufacturing business and any other business without concluding an alteration contract (referring to minor alterations as prescribed by Decree of the Ministry of Trade, Industry and Resources), in violation of Article 38 (2);

10. Any person who uses the name of the Korea Industrial Complex Corporation or any name similar thereto, in violation of Article 45-17(3);

11. Any person who fails to report under Article 48(1) or (2), or submits a false report.

(3) Administrative fines provided for in paragraphs (1) and (2) shall be imposed and collected by the Minister of Trade, Industry and Resources (where his or her authority has been delegated or entrusted to the head of a central administrative agency or the head of a Si/Gun/Gu pursuant to Article 51, referring to the head of a central administrative agency or the head of a Si/Gun/Gu delegated or entrusted with such authority), the Mayor/Do Governor or the head of a Si/Gun/Gu, as prescribed by Presidential Decree. <Amended on Apr. 12, 2010; Mar. 23, 2013; Oct. 1, 2025>

[This Article Wholly Amended on Feb. 6, 2009]