INDUSTRIAL DEVELOPMENT ACT

Article 1(Purpose) #

The purpose of this Act is to contribute to national economic growth by achieving a balanced development of industry and promoting its rationalization.

Article 2(Scope of Application) #

This Act shall apply to industry prescribed by Presidential Decree and to such categories of industry closely related to the improvement of industry and its competitive power as prescribed by the Presidential Decree within the scope necessary to achieve the purpose of this Act. (hereinafter referred to as the “industry”). <Amended by the Act No. 4888, Jan. 5, 1995>

Article 3(Basic Directions of Industrial Development Policy) #

(1) The development of industry shall be based on the principle that it should be achieved by autonomy and competition based on the creative ideas of individuals.

(2) The Government shall devise policies which fall under any of the following subparagraphs to achieve the purpose referred to in Article 1: <Amended by Act No. 4888, Jan. 5, 1995>

1. Promotion of advanced industrial structure;

2. Improvement in industrial technology and productivity;

3. Efficient development and utilization of resources;

4. Training and efficient management of human resources; and

5. Expansion of the base for self-sufficient industry.

(3) Entrepreneurs engaged in managing the industry (hereinafter referred to as the “entrepreneur”) shall provide an active cooperation to implement efficiently the policy as referred to in each subparagraph of paragraph (2).

Article 3-2(Formulation of Direction for Long-Term Development) #

(1) The Minister of Trade, Industry and Energy may formulate a 10-Year direction for long-term development (hereinafter referred to as the “direction for long-term development”) for the purpose of presenting a long-term development prospect of the industry. <Amended by Act No. 4977, Nov. 22, 1995>

(2) In formulating the direction for long-term development, the matters falling under each of the following subparagraphs shall be included:

1. Prospects for the advanced industrial structure;

2. Development prospects and anticipated investments classified by category of industry;

3. Prospects for the supply and demand of factors required for business activities, such as technology, human resources, information, etc., and

4. Other necessary matters with respect to the direction for long-term development prospects of industry.

(3) The formulation of the direction for long-term development by the Minister of Trade, Industry and Energy shall be subject to the deliberation of the Industrial Development Council, pursuant to the provisions of Article 21, or a council as prescribed by the Presidential Decree. The same shall apply when such direction is modified. <Amended by Act No. 4977, Nov. 22, 1995>

(4) For the purpose of promoting an advanced industrial structure, in accordance with the direction for long-term development, the Minister of Trade, Industry and Energy shall determine the scope of advanced technology and skills, and advanced products for the public announcement thereof. <Amended by Act No. 4977, Nov. 22, 1995>

(5) The scope of advanced technologies and advanced products, pursuant to the provisions of paragraph (4), shall be determined to cover technologies and products whose level of technological intensity and speed of technological innovation are high, by taking into consideration the matters which fall under any of the following subparagraphs:

1. Contribution to an advanced industrial structure;

2. Effect of creating new demands and value-added; and

3. Effect of inter-industrial relations.

[This Article Newly Inserted by Act No. 4888, Jan. 5, 1995]

Article 3-3(Establishment of Policies for Strengthening Competitiveness) #

(1) The Minister of Trade, Industry, and Energy may establish policies (hereinafter referred to as the “policies for strengthening competitiveness”) for the purpose of strengthening the competitiveness of industry, classified by category, in accordance with the direction for long-term development. <Amended by Act No. 4977, Nov. 22, 1995>

(2) In establishing policies for strengthening the competitiveness, the matters which fall under any of the following subparagraphs shall be included:

1. Current status of national competitiveness, and plans for its strengthening;

2. Plans for the smooth supply of factors required for business activities such as technology, human resources, information, etc.;

3. Plans for the promotion of internationalization and informationization; and

4. Other matters necessary for the purpose of strengthening national competitiveness.

[This Article Newly Inserted by Act No. 4888, Jan. 5, 1995]

Article 4(Request for Designation of Industry to be Rationalized) #

The entrepreneur may request the Minister of Trade, Industry and Energy pursuant to the Presidential Decree to designate the industry he is engaged in as a target industry to promote the rationalization of industry (hereinafter referred to as the “industry to be rationalized”). <Amended by Act. No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

Article 5(Designation of Industry to be Rationalized) #

(1) In case the Minister of Trade, Industry and Energy has received the request pursuant to Article 4 and it falls under any of the following subparagraphs, he may designate it as the industry to be rationalized for the prescribed period. In this case the number of the entrepreneurs who have requested such designation under Article 4 shall represent a considerable share of the total numbers of entrepreneurs engaged in such industry, or the management size or production scale of the requesting entrepreneurs shall occupy the largest share of such industry: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

1. In case where the industry falls under any of the following items and it is recognized that the achievement of international competitive power is indispensable for the development of the industry and the sound development of the national economy, and it cannot be attained efficiently without the independent effort of the entrepreneur:

(a) In case where the productivity can be remarkably promoted by advancing industrial technology or equipment;

(b) In case where the effect of saving the resources and energy or increasing the value-added is enormous; and

(c) In case where the common difficulties facing the entrepreneurs in production and management can be solved.

2. In case where the weakened competitive power due to the change of the economic conditions at home and abroad such as the change of industrial structure continues for a considerable period of time, and thus it is deemed necessary to overcome such conditions for the achievement of industrial development and the sound development of national economy.

(2) In case it is deemed difficult to make an application which satisfies the requirement in the latter part of the text of paragraph (1) or it is deemed unlikely for the entrepreneur who operates the industry falling under paragraph (1) 1 or 2 to make an application under Article 4 voluntarily, the Minister of Trade, Industry and Energy may designate the category of industry concerned as an industry to be rationalized for the prescribed period. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(3) In case the Minister of Trade, Industry and Energy intends to designate the industry to be rationalized under paragraph (2), he shall hear the opinions of the interested parties (including organizations). <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(4) In case the Minister of Trade, Industry and Energy intends to designate the industry to be rationalized under paragraphs (1) and (2), he shall in advance refer the designation to the deliberation of the Industrial Development Council under Article 21 and the Council prescribed by the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(5) In case the Minister of Trade, Industry and Energy has designated the industry to be rationalized under paragraphs (1) and (2), he shall make a public notice thereof. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

Article 6(Establishment of Rationalization Plan) #

(1) In case the Minister of Trade, Industry and Energy has designated the industry to be rationalized under Article 5, he shall establish a plan to promote the rationalization of industry classified pursuant to the provisons of Article 5 (1) 1 and 2 (hereinafter referred to as the “rationalization plan by industry”), and make the public notice thereof. The same shall also apply to the change of the rationalization plan by industry. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(2) The rationalization plan by industry shall include the following matters: <Amended by Act No. 4888, Jan. 5, 1995>

1. For the industry falling under Article 5 (1) 1,

(a) Matters concerning the contents of necessary technology and the promotion thereof;

(b) Matters concerning the performance of the products or their quality level;

(c) Matters concerning the rationalization of production scale or the specialization of the products;

(d) Matters concerning joint activities; and

(e) Other matters necessary for promotion of industrial rationalization by sector.

2. For the industry falling under Article 5 (1) 2,

(a) Matters concerning the disposal of facilities and equipment;

(b) Matters concerning prohibition or restriction of installing, expanding, remodeling, or replacing the facilities and equipment;

(c) Matters concerning rationalization of management scale, production scale or production methods;

(d) Matters concerning business cooperation including merger and assignment of the whole or an important part of the business;

(e) Matters concerning exit from the industry concerned by converting the business into another one, etc.;

(f) Matters concerning joint activities; and

(g) Other matters necessary for promoting industrial rationalization by sector.

(3) In case the Minister of Trade, Industry and Energy is to establish the rationalization plan classified by industry, the provisions of Article 5 (4) shall be applied mutatis mutandis. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

(4) The Government shall take the necessary measures for employment matters arising from establishing and implementing the rationalization plan under paragraph (2) 2.

Article 7(Implementation of Rationalization Plan by Industry) #

The entrepreneur who operates or is to operate the business designated as the industry to be rationalized (hereinafter referred to as the “rationalization entrepreneur”) shall make independent efforts to implement the rationalization plan by industry, if the public notice of the rationalization plan by industry has been made under Article 6 (1).

Article 8(Advice, Adjustment, etc.) #

(1) The Minister of Trade, Industry and Energy may provide a necessary advice and make a necessary adjustment within the limits of the following subparagraphs in order to promote the implementation of the rationalization plan by industry such as joint activities to be conducted for the prescribed period, etc., in case he deems that the rationalization plan by industry is hard to be implemented effectively only with the independent effort of the entrepreneur: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

1. It is not to exceed the limit necessary for achieving the rationalization goal referred to in the rationalization plan by industry;

2. It is not likely to violate unreasonably the interests of consumers in general and related entrepreneurs; and

3. It is not to discriminate unreasonably against the rationalization entrepreneur.

(2) The Minister of Trade, Industry and Energy may order the rationalization enterpriser to take the measures pursuant to the advice or the adjustment for the prescribed period as prescribed by the Presidential Decree, if he fails to follow the advice or the adjustment under paragraph (1). <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(3) The rationalization entrepreneur who has implemented the measures pursuant to the order to take the measures as referred to in paragraph (2) shall make a report of the matters prescribed by the Ordinance of the Ministry of Trade, Industry and Energy to the Minister of Trade, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(4) In case the Minister of Trade, Industry and Energy is to issue the order to take the measures as referred to in paragraph (2), the provisions of Article 5 (4) shall be applied mutatis mutandis. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

Article 9(Registration of Details, etc. of Enterprise) #

(1) The Minister of Trade, Industry and Energy may designate the industry whose details of enterprise, facilities and equipment shall be registered from among the industries to be rationalized pursuant to the Presidential Decree, in case he deems that the designation is especially necessary to implement the rationalization plan by industry efficiently. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(2) In case the Minister of Trade, Industry and Energy has designated the industry to be registered under paragraph (1), the rationalization entrepreneur of the said industry shall be registered with the Ministry of Trade, Industry and Energy pursuant to the Ordinance of the Ministry of Trade, Industry and Energy. The same shall also apply to the modification of the registered matters: Provided, That slight matters prescribed by the Order of the Ministry of Trade, Industry and Energy shall be excluded. <Amended by the Act. No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

Article 10(Support to Rationalization Industry) #

(1) The Government may provide financial, fiscal and other necessary support for the rationalization entrepreneur implementing the rationalization plan by industry.

(2) In case the Government is to provide the support under paragraph (1), the provisions of Article 5 (4) shall be applied mutatis mutandis.

Article 10-2(Working out Measures to Promote Economical Use of Resources for Conversion of Structures) #

(1) The Minister of Trade, Industry and Energy, if it is necessary to promote an advanced industrial structure, may work out measures (hereinafter referred to as the “measures to promote economical use of resources for conversion of structures”) to promote their conversion into industrial structures using resources efficiently. <Amended by Act No. 4977, Nov. 22, 1995>

(2) In working out the measures to promote economical use of resources for conversion of structures, the matters falling under each of the following subparagraphs shall be included:

1. Current status of resources used by industry and prospects for the supply and demand of resources;

2. Plans for improving the structure of using the resources by industrial sector;

3. Utilization of equipment by using resources in an economical way, and ways of promoting the technological development; and

4. Other matters necessary for the conversion of industrial structures into industrial structures saving resources.

(3) When the Minister of Trade, Industry and Energy establishes the policies to promote the conversion of industrial structures into industrial structures saving resources, he shall be subject to the deliberation of the Industry Development Council, pursuant to the provisions of Article 21. The same shall apply when this is modified. <Amended by Act No. 4977, Nov. 22, 1995>

[This Article Newly Inserted by Act No. 4888, Jan. 5, 1995]

Article 10-3(Establishment of Measures to Induce Specialization in Specified Industries) #

The Minister of Trade, Industry and Energy, if it is necessary for the strengthening of the competitiveness of the industry, may work out the policies to induce the specialization in the specified industry operated by the entrepreneur. <Amended by Act No. 4977, Nov. 22, 1995>

[This Article Newly Inserted by Act No. 4888, Jan. 5, 1995]

Article 11(Encouragement of Industrial Technology and Improved Productivity) #

The Minister of Trade, Industry and Energy shall encourage the entrepreneur to carry out activities which fall under each of the following subparagraphs in order to promote the improvement in industrial technology and productivity: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

1. Establishment and operation of organizations related to research and development and improvement in productivity of the enterprises;

2. Establishment and operation of the Private Industrial Technology Institute pursuant to the provisions of Article 18 of the Act on the Establishment of Industrial and Energy Technology Foundation and the Industrial Technology Research Association pursuant to the Act on the Support of the Industrial Technology Research Cooperatives;

3. Active participation in the projects executed by the Industrial Technology Institute in accordance with Article 15 of the Act on the Establishment of Industrial and Energy Technology Foundation, the Specific Research Institute governed by the Support of Specific Research Institutions Act, and the Korea Productivity Center as referred to in Article 16 hereof;

4. Active participation in the project designed to create the infrastructure of technology pursuant to Article 5 of the Act on the Establishment of Industrial and Energy Technology Foundation and the project designed to develop the industrial infrastructure and technology pursuant to Article 13 hereof;

5. Promotion and expansion of research and development investment;

6. Introduction of foreign advanced technology; and

7. Other projects necessary to promote the improvement in industrial technology and productivity.

Article 12(Establishment and Public Notice of Industrial Basic Technology Development Plan) #

(1) The Minster of Trade, Industry and Energy shall establish a plan to develop efficiently the technology which is essential for industrial development and falls under each of the following subparagraphs (hereinafter referred to as the “industrial basic technology development plan”) and make the public notice thereof. The same shall apply if this is changed: <Amended by Act No. 4977, Nov. 22, 1995>

1. A field of technology which has been considered as a common bottleneck to the industries;

2. Technological field of core materials and components, as well as a technological field of engineering and systems which are necessary for improving the technological capabilities of the industry;

3. Technological fields having a great potential demand for the development of energy and resource technology and industrial technology, etc. related to motion pictures, and environment; and

4. Other technological fields whose development is needed, on a priority basis, for improving industrial technology.

(2) The industrial basic technology development plan shall include the matters which fall under each of following subparagraphs:

1. Matters concerning technology development and technology inducement for improving industrial technology;

2. Matters concerning investigation of prospects for technological developments such as drawing up of a schematic diagram of the technical system;

3. Matters concerning the investigation of the demand for technological development, and evaluation of the level of industrial technology;

4. Matters concerning development of joint research with foreign governments, international organizations, and foreign technology-related organizations;

5. Matters concerning the practical use of developed technology, such as transfer, dissemination, and commercial utilization, etc., thereof; and

6. Other matters required to implement efficiently the technological development in the technical fields falling under each of subparagraphs of paragraph (1).

[This Article Wholly Amended by Act No. 4888, Jan. 5, 1995]

Article 13(Industrial Basic Technology Development Project) #

(1) The Minister of Trade, Industry and Energy may cause the institutions, organization, entrepreneur, etc. (hereinafter referred to as the “management institutions”) falling under any one of the following subparagraphs to implement the project of technology development necessary for industrial development (hereinafter referred to as the “industrial basic technology development project”) after consultation with the head of the central administrative organization concerned pursuant to the Presidential Decree in order to implement efficiently the industrial basic technology development plan: <Amended by Act No. 4977, Nov. 22, 1995; Act No. 5214, Dec. 30, 1996>

1. A national or public research institute;

2. A specific research institute governed by the Support of Specific Research Institutions Act;

3. An Industrial Technology Research Association under the Act on the Support of the Industrial Technology Research Cooperatives;

4. A university, junior college, an open university under the Education Act;

5. An Industrial Technology Institute under Article 15 of the Act on the Establishment of Industrial and Energy Technology Foundation and Private Industrial Technology Institute under Article 18 of the same Act;

6. The Korea Institute of Industrial Design Promotion and companies specialized in the industrial design under the Industrial Design Promotion Act;

7. The Korea Institute of Industrial Technology and the Information under the Act on the Institute of Industrial Technology and Information;

8. The Korea Productivity Center pursuant to the provisions of Article 16 hereof; and

9. Other juristic person, organization, entrepreneur, etc, designated by the Minister of Trade, Industry and Energy as he deems it necessary for promoting the development of industrial technology.

(2) The Minister of Trade, Industry and Energy may contribute the fund needed to implement the industrial basic technology development project. <Amended by Act No.4977, Nov. 22,1995>

(3) The necessary matters concerning the payment, use and management, etc. of the contribution referred to in paragraph (2) shall be prescribed by the Presidential Decree.

[This Article Wholly Amended by Act No. 4888, Jan. 5, 1995]

Article 14(Supporting Fund for Advanced Technology Development Projects) #

The government, for the purpose of promoting the development of technology, may, within the limits of the budget, provide the supporting fund necessary for projects which fall under each of the following subparagraphs:

1. Projects for the development of advanced technology and advanced products, pursuant to the provisions of Article 3-2 (4);

2. Projects for the development of prototypes of capital goods;

3. Follow-up development projects covering the project for the development of basic industrial technology, pursuant to the provisions of Article 13; and

4. Other projects for the development of technology deemed by the Minister of Trade, Industry, and Energy, to be necessary for the purpose of promoting an advanced industrial structure and the balanced growth of industry.

[This Article Newly Inserted by Act No. 4977, Nov. 22, 1995]

Article 15(Commercial Application of Developed Technology) #

(1) The Government shall devise a policy necessary for fostering the entrepreneurs who commercially apply the developed new technology or the investors who invest capital in such enterprise as his main business.

(2) The Minister of Trade, Industry and Energy may, for the purpose of promoting the utilization of developed technology, carry out the projects which fall under each of the following subparagraphs, pursuant to the provisions of the Presidential Decree: <Amended by Act No. 4977, Nov. 22, 1995>

1. Fostering of specialized agencies supporting such commercial utilization;

2. Sales promotions of products made by such commercial utilizations; and

3. Other enterprises necessary for promoting the commercial utilization of the developed technology.

[This Article Wholly Amended by Act No. 4888, Jan. 5, 1995]

Article 16(Korea Productivity Center) #

(1) The Korea Productivity Center (hereinafter referred to as the “Productivity Center”) shall be established in order to carry out efficiently and systematically the improvement in productivity of industry.

(2) The Productivity Center shall be in the form of a juristic person.

(3) The Productivity Center shall be formed by registration of incorporation at the place of its principal office.

(4) The Productivity Center may have branch offices at the necessary places at home and abroad pursuant to the articles of incorporation.

(5) In order to improve the productivity, the Productivity Center shall implement the undertakings which fall under each of the following subparagraphs: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

1. Undertakings for business consultation and guidance;

2. Undertakings for education and training;

3. Undertakings for research and investigation;

4. Undertakings for development and dissemination of technical know-how to improve the productivity of the auto industry and informationization;

5. Undertakings entrusted by the Minister of Trade, Industry and Energy for the purpose of improving the productivity; and

6. Other undertakings as referred to in the articles of incorporation governing the Productivity Center.

(6) The Productivity Center may, under the provisions of the Presidential Decree, carry on a business for profit in order to meet the expenses necessary for performing the purposes referred to in paragraph (1).

(7) Any person other than the Productivity Center may not use the same or similar name of the Korea Productivity Center.

(8) With regard to the Productivity Center, the provisions of the Civil Act concerning incorporated foundation shall be applied mutatis mutandis save for the matters referred to in the provisions of this Act.

Article 17(Establishment of Fund) #

The Government shall establish an Industrial Foundation Fund (hereinafter referred to as the “Fund”) in order to secure financial resources necessary for promoting balanced development of industry and building industrial infrastructure. <Amended by Act No. 4977, Nov. 22, 1995>

Article 18(Composition of Fund) #

(1) The Fund shall be composed of financial resources which fall under each of the subparagraphs:

1. Government contributions or loan;

2. Contributions by the entrepreneurs or a group of entrepreneurs referred to in Article 23;

3. Proceeds accruing from the operation of the Fund; and

4. Other revenues referred to in the provisions of the Presidential Decree.

(2) In addition to the financial resources under paragraph (1), the Government may obtain domestic and foreign loans and lend the same to the Fund.

Article 19(Operation and Control of Fund) #

(1) The Fund shall be operated and controlled by the Minister of Trade, Industry and Energy: Provided, That the Minister of Trade, Industry and Energy may cause the group of entrepreneurs referred to in Article 23 or the juristic person referred to in the Presidential Decree to operate and control the Fund pursuant to the Presidential Decree when he deems it necessary. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

(2) Necessary matters concerning the operation, control and separate accounting of the Fund shall be prescribed by the Presidential Decree.

Article 20(Use of Fund) #

The Fund shall be used for the undertakings which fall under each of the following subparagraphs:

1. Undertakings for carrying out policies to strengthen competitiveness;

2. Undertakings for improving the industrial productivity and promoting higher value added;

3. Undertakings for improving the environment and preventing environmental pollution by industry, and supporting undertakings for improvement in the manufacturing process, replacement of equipment, and investment in new and expanded facilities, in order to build an environmentally friendly industrial structure;

4. Undertakings for structural improvement, etc. of the distribution industry; and

5. Other undertakings needed for building the industrial infrastructure and balanced development of the industry.

[This Article Wholly Amended by Act No. 4977, Nov. 22, 1995]

Article 21(Establishment of Industrial Development Committee) #

(1) An Industrial Development Committee (hereinafter referred to as the “Committee”) shall be established in the Ministry of Trade, Industry and Energy for the purpose of fully utilizing the knowledge of entrepreneurs and industrial specialists, of devising a rational policy for industrial development, by hearing their opinions and deliberating the matters prescribed by this Act. <Amended by the Act. No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

(2) When the Committee deems it necessary for its efficient operation, such as the hearing of civil opinions, etc., it may establish by its resolution a civil consultative council by subcommittee of the Committee. <Newly Inserted by Act No. 4888, Jan. 5, 1995>

Article 22(Organization and Management) #

Necessary matters concerning the organization and management, etc. of the Committee shall be prescribed by the Presidential Decree.

Article 23(Group of Entrepreneurs) #

(1) Entrepreneurs may establish a group of entrepreneurs by industry (hereinafter referred to as the “group of entrepreneurs”) with the permission of the Minister of Trade, Industry and Energy pursuant to the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(2) The group of entrepreneurs shall be in the form of a juristic person.

(3) Details to be recorded in the articles of incorporation and necessary matters concerning management and supervision of the group of entrepreneurs shall be prescribed by the Presidential Decree.

(4) With regard to the group of entrepreneurs, the provisions of the Civil Act concerning the incorporated foundation shall be applied mutatis mutandis save for the matters prescribed by this Act.

Article 24(Undertakings) #

In order to develop related industry, the group of entrepreneurs shall implement the undertakings which fall under each of the following subparagraphs: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

1. Undertakings for investigation and research concerning the direction of development;

2. Undertakings for increasing the profit;

3. Undertakings for implementing the rationalization by industry plan;

4. Undertakings for improving the international competitive power;

5. Undertakings entrusted by the Minister of Trade, Industry and Energy for development of a related industry; and

6. Other undertakings referred to in the articles of incorporation governing the group of entrepreneurs.

Article 25(Mutual Aid Organization) #

(1) Entrepreneurs may establish a mutual aid organization falling under one of following subparagraphs with the permission of the Minister of Trade, Industry and Energy pursuant to the Presidential Decree: <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

1. A mutual aid organization of machinery for the purpose of quality guarantee and warranty of machinery; and

2. A mutual aid organization of shipbuilding for the purpose of compensation for the loss sustained by a ship due to an accident occurring during shipbuilding or before delivery.

(2) A mutual aid organization shall be in the form of a juristic person.

(3) Details to be recorded in the articles of incorporation and necessary matters concerning management and supervision of the mutual aid organization shall be prescribed by the Presidential Decree.

(4) With regard to the mutual aid organization, the provisions of the Civil Act concerning incorporated associations shall be applied mutatis mutandis save for the matters prescribed by this Act.

Article 26(Special Provisions for Joint Activities) #

(1) The Monopoly Regulation and Fair Transaction Act shall not be applied to such business tie-ups and joint activities as merger, assignment, transfer, etc. of the whole or the main part of a business executed under the rationalization by industry plan. <Amended by Act No. 4888, Jan. 5, 1995>

(2) If the Minister of Trade, Industry and Energy intends to establish the rationalization by industry plan including the matters concerning joint activities and business tie-ups such as merger, assignment, transfer of the whole or an important part of the business, etc., he shall consult with the Fair Trade Commission in advance. <Amended by Act No. 4198, Jan. 10, 1990; Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

Article 27(Submission of Data) #

The Minister of Trade, Industry and Energy may request the rationalization entrepreneur, management institutions, the Productivity Center, a juristic person, and the Group of Entrepreneurs as referred to in Article 19 (1) to submit the data on their business, in case it is necessary for executing this Act. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

Article 28(Delegation or Entrustment of Power) #

A part of the power of the Minister of Trade, Industry and Energy prescribed by this Act may, pursuant to the Presidential Decree, be delegated to the Administrator of the Industrial Advancement Administration, the Seoul Special Metropolitan City Mayor, the Metropolitan City Mayor or the Do Governor, or be entrusted to the Productivity Center, Small and Medium Enterprise Promotion Corporation, Group of Entrepreneurs, or such juristic person or organization as prescribed by the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4888, Jan. 5, 1995; Act No. 4977, Nov. 22, 1995>

Article 29(Penal Provisions) #

(1) Any person who has violated any order pursuant to Article 8 (2) shall be punished by a fine not exceeding fifty million won. <Amended by Act No. 4888, Jan. 5, 1995>s

(2) A person who has failed to complete the registration pursuant to Article 9 (2) shall be punished by a fine not exceeding twenty million won. <Amended by Act No. 4888, Jan. 5, 1995>

(3) The crime referred to in paragraph (1) shall be subject to indictment only upon a complaint filed by the Minister of Trade, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

Article 30(Joint Penal Provisions) #

When the representative of a juristic person or an agent, servant, and any other employee of a juristic person or individual person, violates the provisions of Article 29, in connection with the business of such juristic person or individual, not only the offender, but also such juristic person or individual shall be punished by a fine as set forth in Article 29.

Article 31(Fine for Negligence) #

(1) A person who has not submitted the data under Article 27 or submitted false data shall be punished by fine for negligence not exceeding twenty million won. <Amended by Act No. 4888, Jan. 5, 1995>

(2) A person who has violated the provisions of Article 16 (7) shall be punished by fine for negligence not exceeding five million won. <Amended by Act No. 4888, Jan. 5, 1995>

(3) The fine for negligence referred to in paragraphs (1) and (2) shall be imposed and collected by the Minister of Trade, Industry and Energy as prescribed by the Presidential Decree. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(4) A person who has an objection against the disposition of the fine for negligence under paragraph (3) may appeal to the Minister of Trade, Industry and Energy within 30 days from the date on which the said disposition becomes known to him. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(5) In case the person having been notified of the disposition of the fine for negligence under paragraph (3) files an appeal under paragraph (4), the Minister of Trade, Industry and Energy shall promptly notify the competent court thereof, and the competent court which has received such notification shall pass judgement on the fine for negligence prescribed by the Non-Contentious Case Litigation Procedure Act. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>

(6) In case a person has failed to file an appeal within the period prescribed by paragraph (4) and also failed to pay the fine for negligence, such fine shall be collected in such a manner as a disposition on the National Tax in Arrears.

Article 32(Fiction of Public Officials in Application of Penal Provisions) #

Officers and staffs of the Productivity Center, Small and Medium Enterprise Promotion Corporation, the Group of Entrepreneurs, such juristic person or organization as prescribed by the Presidential Decree, all of which are engaged in the business entrusted by the Minister of Trade, Industry and Energy under Article 28, are regarded as public officials in application of Articles 129 through 132 of the Criminal Act. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 4977, Nov. 22, 1995>