Article 1(Purpose) #
The purpose of this Act is to contribute to promoting the development of the defense industry and procuring supplies from the defense industry (hereinafter referred to as the "defense industry supplies") in an efficient manner by rationally guiding, fostering and building up the defense industry. <Amended by Act No. 3699, Dec. 31, 1983>
[This Article Wholly Amended by Act No. 3003, Jul. 23, 1977]
Article 2(Definitions) #
For the purpose of this Act, the definitions of terms used in this Act shall be as follows: <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987>
1. The term "defense industry" means business for the production (referring to manufacture, process, fabrication, maintenance, reproduction, improvement or modification; hereinafter the same shall apply) or the research and development of defense industry supplies;
2. The term "defense industry supplies" means materials supplied for the use of the military (hereinafter referred to as "supplies for military use") as designated by Article 4-2;
3. The term "enterprise engaged in the defense industry" (hereinafter referred to as a "defense industry enterprise") means an enterprise, which produces defense industry supplies, as designated by Article 4;
4. The term "research institute" means an organization mandated by the government to carry out research, development, test and measurement of defense industry supplies; fabrication and certification of machine and devices for test, etc. of defense industry supplies; business analysis of defense industry enterprises; or the development of software pertaining to the defense industry;
5. The term "facilities for the defense industry" (hereinafter referred to as "defense industry facilities") means the land and its fixtures (including equipment and apparatuses), which belong to a defense industry enterprise or a research institute, dedicated to the production, or the research and development of defense industry supplies; and
6. The term "supplies selected as part of weapons system" means the supplies which have been selected by the Minister of National Defense from among the supplies for military use with a view to efficiently attaining the objectives of military strategies.
Article 3(Basic Plan for Fostering Defense Industry) #
(1) The Minister of National Defense shall set up the basic plan for fostering the defense industry (hereinafter referred to as the "basic plan") to give guidance to and build up the defense industry in a rational way. <Amended by Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987; Act No. 4619, Dec. 27, 1993>
(2) Deleted. <by Act No. 5614, Dec. 31, 1998>
(3) The basic plan shall include the matters falling under the following subparagraphs: <Amended by Act No. 3958, Nov. 28, 1987; Act No. 4619, Dec. 27, 1993>
1. The outlines of both basic guideline of the national defense and strategic concept;
2. The rationalization of production facilities for the defense industry;
3. The research & development and acquisition of defense industry supplies;
4. The promotion of in-country production of defense industry supplies;
5. The assessment of the production capability of defense industry supplies;
6. Raising and operating the funds for the fostering of the defense industry;
7. The development of workforce and projected technological levels; and
8. Other matters which the Minister of National Defense regards necessary for fostering the defense industry.
(4) Deleted. <by Act No. 3958, Nov. 28, 1987>
Article 4(Designation of Defense Industry Enterprise) #
(1) Those who wish to produce defense industry supplies shall be designated by the government after having met the facilities criteria and the security requirements as prescribed by the Presidential Decree.
(2) In the case where the government designates defense industry enterprises in accordance with paragraph (1), it shall classify them into two groups: major defense industry enterprises and general defense industry enterprises, and designate enterprises producing defense industry supply falling under any of the following subparagraphs as the former and enterprises producing the rest as the latter. <Newly Inserted by Act No. 3958, Nov. 28, 1987; Act No. 4619, Dec. 27, 1993>
1. Firearms and other fire power arms;
2. Guided weapons;
3. Aircraft;
4. War ships;
5. Ammunition;
6. Tanks, armored vehicles, and other combat mobile equipment;
7. Radar, target identification devices, and other communication and electronic equipment;
8. Night-vision scope and other optical and thermal image devices;
9. Combat engineers equipment;
10. CBR equipment; and
11. Other supplies which are designated by the Minister of National Defense as they are considered important for military strategic objectives or tactical operations.
(3) In case where the management right of a defense industry enterprise is expected to be materially changed for its sale, auction, acquisition or merger, or other reason, which falls under the standards prescribed by the Presidential Decree, a person who desires to materially acquire the defense industry enterprise and its management right shall submit the relevant documents to obtain prior approval from the Minister of Commerce, Industry and Energy under the conditions prescribed by the PresIdential Decree: Provided, That where he obtains permission from the Minister of Finance and Economy in accordance with Article 6 (3) through (8) of the Foreign Investment Promotion Act, this shall not apply. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(4) Where the Minister of Commerce, Industry and Energy desires to grant approval under paragraph (3), he shall consult with the Minister of National Defense. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(5) Any matters as may be necessary with regard to the designation under paragraphs (1) and (2) shall be prescribed by the Presidential Decree.
Article 4-2(Designation of Defense Industry Supplies) #
(1) The government shall designate defense industry supplies among the supplies selected as part of a weapons system: Provided, That it may designate any supplies for military use which have not been selected as part of weapons system as defense industry supplies if they are supplies as prescribed by the Presidential Decree.
(2) The defense industry supplies shall be designated under the two categories of major defense industry supplies and general defense industry supplies.
(3) Any matters as may be necessary with regard to the classification of major defense industry supplies and general defense industry supplies and their designation under paragraph (2) shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 3958, Nov. 28, 1987]
Article 4-3(Specialization and Departmentalization) #
(1) The government may bring about the supplies and/or enterprises concerned which it desires to research and develop or produce through the introduction of technology, under either specialization or departmentalization, as and when deemed necessary for the rational fostering of the defense industry. <Amended by Act No. 5614, Dec. 31, 1998>
(2) Matters necessary for standards for specialization and departmentalization under paragraph (1), the classification and cancellation of items, procedures for the selection and cancellation of an enterprise, and the security requirements of enterprises other than defense industry enterprises which intend to be selected as specialized and departmentalized enterprises shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
[This Article Newly Inserted by Act No. 3958, Nov. 28, 1987]
Article 5 #
Deleted.<by Act No. 5614, Dec. 31, 1998>
Article 6(Protection and Building-up) #
(1) A defense industry enterprise shall receive a warranty from the government for the production and delivery of defense industry supplies. <Amended by Act No. 3699, Dec. 31, 1983>
(2) Defense industry enterprise which are involved in the production of major defense industry supplies shall be supported first in respect of matters falling under each of the following subparagraphs: <Newly Inserted by Act No. 3958, Nov. 28, 1987>
1. Financing in accordance with Article 7;
2. Financing out of the funds for the fostering of the defense industry in accordance with Article 7-2 (3);
3. Undertaking of commission to perform the research/or the production of a pilot model in accordance with Article 10 (1); and
4. Other matters as prescribed by the Presidential Decree.
Article 7(Financing) #
The government may finance a defense industry enterprise on long-term and low-interest basis, which falls under any of the following subparagraphs, as and when deemed necessary for fostering the defense industry: Provided, That the fund under subparagraph 3 may be loaned to an enterprise which is related to the defense industry, but cannot be categorized a defense industry enterprise hereinafter referred to as "a general enterprise"): <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987>
1. Funds needed for the installation, relocation, replacement, supplement or extension of defense industry facilities;
2. Funds needed for the purchase of raw material;
3. Development funds for the in-country production of defense industry supplies and other military supplies; and
4. Other necessary operation funds.
Article 7-2(Placement of Funds for Fostering Defense Industry) #
(1) The government shall place a certain amount of the funds for fostering the defense industry (hereinafter referred to as the "Funds") which is aimed at cultivating the defense industry.
(2) The Funds under paragraph (1) shall be composed of contributions made by both the government and other bodies outside the government, and surplus from the settlement of accounts for the Funds as well.
(3) The Funds may be made available for financing matters which fall under any of the following subparagraphs: <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987; Act No. 4619, Dec. 27, 1993>
1. The introduction, installation, relocation, replacement, supplement or extension of defense industry facilities;
2. The acquisition of materials (including reserved ones);
3. Funds for the operation of a defense industry;
4. Development funds for the in-country production of defense industry supplies and other military supplies;
5. Funds for export on deferred payment to facilitate the export of defense industry supplies; and
6. Other matters as prescribed by the Presidential Decree.
(4) Certain amounts of funds may be borrowed to the credit account of the Funds, on a long-term or temporary basis, as and when necessary for the operation of the Funds.
(5) The Funds shall be managed and operated by the Minister of National Defense: Provided, That he shall assign or entrust part of his power related thereto to other bodies, as prescribed by the Presidential Decree.
(6) Terms and conditions of financing the Funds and other necessary matters including the management and operation shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 3003, Jul. 23, 1977]
Article 8(Transferring or Loaning National Property) #
(1) The government may sell or loan, on a basis of either payment or nonpayment, any of the miscellaneous properties and objects(which include military supplies. The same shall apply hereinafter) among the national properties to a defense industry enterprise on a free contract notwithstanding the provisions of the State Properties Act and other Acts and subordinate statutes, and also permit it to use, free of charge, any of the administration properties among the national properties as prescribed by the Presidential Decree notwithstanding the provisions of the State Properties Act. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983>
(2) The government may loan or transfer, on a basis of either payment or non-payment, to a defense industry enterprise or a research institute any device or objects for the exclusive use of the defense industry, as and when deemed necessary to help it produce, study and pilot-produce a defense industry supply(ies) notwithstanding the provisions of the Commodity Management Act and other Acts and subordinate statutes. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983>
(3) A defense industry enterprise or research institute shall not use national property or objects the transfer, loan, or use of which is permitted on a basis of either payment or non-payment under paragraph (1) or (2) for purposes other than their original purposes. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(4) Where a defense industry enterprise requests the use, loan, transfer, or exchange of defense industry facilities or supplies possessed by the State for the purpose of export, the government may, notwithstanding the provisions of other Acts and subordinate statutes, permit the use of, loan, transfer, or use the defense industry facilities or supplies on a basis of either payment or non-payment, or exchange them for defense industry supplies owned by the defense industry enterprise, in so far as it does not cause any obstacle to military operations and the maintenance of war readiness. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(5) In case of the exchange of defense industry facilities or supplies under paragraph (4), if their prices are not the same, the balance shall be adjusted through money. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(6) Matters necessary for the permission for use, loan, transfer, or exchange of defense industry facilities or supplies under paragraphs (4) and (5) shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
Article 9(Granting of Subsidies, etc.) #
(1) The government shall grant a defense industry or a research institute subsidies covering the whole or part of an expense needed for a matter which falls under any of the following subparagraphs as and when deemed necessary to help foster the defense industry: <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983>
1. The purchase or installation of equipment for the exclusive use of the defense industry;
2. Research and development or the inducement of technologies;
3. Quality inspection or quality control; and
4. Other matters as prescribed by the Presidential Decree.
(2) A defense industry or a research institute may not be allowed to transfer, exchange or lend any property and/or the added value of it which had been acquired by the subsidies under paragraph (1) without an approval of the government. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983>
Article 10(Development, etc. of Defense Industry) #
(1) The government may commission a specialized or departmentalized enterprise or a research institute to perform studies on a specific object or to produce its pilot model which needs research and development in pursuit of its usability as a defense industry or military supply, after having determined the items, method, scale and other necessary matters of such studies or production: Provided, That the Government may commission a defense industry enterprise or general enterprise to perform such affairs as and when it is considered neither practicable nor appropriate to commission a specialized or departmentalized enterprise or a research institute to do so. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
(2) When commissioned under paragraph (1), a defense industry enterprise, a research institute, a specialized or departmentalized enterprise, or a general enterprise shall draw out an action plan without delay and effect the studies and/or the pilot-production. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 5614, Dec. 31, 1998>
(3) When the government has given a commission under paragraph (1), it shall make payment of expenses for the studies and/or the pilot-production.
(4) The Government may grant incentive money to those who have invented a quality defense industry supply or the core technologies for a defense industry supply, as prescribed by the Presidential Decree. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983; Act No. 4619, Dec. 27, 1993>
Article 10-2(In-country Production of Defense Industry Supplies, etc.) #
A defense industry enterprise, a research institute or a general enterprise shall endeavor to materialize the in-country production of defense industry supplies and other military supplies.
[This Article Newly Inserted by Act No. 3958, Nov. 28, 1987]
Article 11(Treatment, etc of Licensed Technician) #
(1) The government may grant incentive money to the engineers and technicians who are engaged in a defense industry enterprise, a research institute, a military engineering depot or arsenal, a military maintenance unit, or a military procurement agency within the budgetary scope as prescribed by the Presidential Decree. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983>
(2) The engineers and technicians who are engaged in a defense industry enterprise, a research institute, a military engineering depot or arsenal, a military maintenance unit, or a military procurement agency may be favored with a special treatment pertaining to the military service in accordance with the Military Service Act. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 4157, Dec. 30, 1989; Act No. 4684, Dec. 31, 1993>
(3) A defense industry enterprise or a research institute shall make sure that they are in acquisition of engineers and technicians and are in smooth operating conditions as regards the production of pilot models of or the supply of defense industry supplies. <Amended by Act No. 3699, Dec. 31, 1983>
(4) The engineers and technicians who have been granted incentive money under paragraph (1) shall have themselves engaged compulsorily in a defense industry enterprise, a research institute, a military engineering depot or arsenal, a military maintenance unit, or a military procurement agency over certain period of time as prescribed by the Presidential Decree. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983>
Article 12(Special Cases, etc. of Contracts) #
(1) When the government is to procure a defense industry supply or to effect commissioning of the study or the pilot-production (including the commission of study relating thereto) under Article 10 (1), it may execute a short-term, long-term, fixed-value, or approximate-value contract. In such cases, the type, contents, scope and other necessary particulars of the contracts shall be prescribed by the Presidential Decree notwithstanding the provisions of the Act on Contracts to Which the State is a Party and other relevant Acts and subordinate statutes. <Amended by Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
(2) When a contract is executed under paragraph (1), both advance and intermediate payments may be made within the budgetary scope for the current year, as and if it is regarded necessary to make such payments in view of the nature of the contract. <Amended by Act No. 3958, Nov. 28, 1987>
(3) When a contract is executed under paragraph (1), the criteria and methods of cost accounting and the criteria, methods and procedures of making both advance and intermediate payments under paragraph (2) shall be determined by Ordinance of the Ministry of National Defense notwithstanding the Act on Contracts to Which the State is a Party and other relevant Acts and subordinate statutes. In this case, the Minister of National Defense shall consult with the Minister of Finance and Economy. <Amended by Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987; Act No. 4619, Dec. 27, 1993; Act No. 5614, Dec. 31, 1998>
(4) With respect to such advance and intermediate payments made for a long-term contract among those contracts described in paragraph (1), the settlement of accounts may be deferred until the final delivery of the contracted supplies, notwithstanding the provisions of the Act on Contracts to Which the State is a Party and other relevant Acts and subordinate statutes. <Amended by Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
[This Article Wholly Amended by Act No. 3003, Jul. 23, 1977]
Article 13(Tax Reduction or Exemption) #
A defense industry enterprise, research institute, and specialized or departmentalized enterprise may be reduced or exempted from payment of various taxes as provided for in the Regulation of Tax Reduction and Exemption Act. <Amended by Act No. 3003, Jul. 23, 1977; Act No. 3699, Dec. 31, 1983; Act No. 5614, Dec. 31, 1998>
Article 14(Special Regulations on Manufacture, etc. of Military Firearms, Swords and Explosives) #
With regard to military fire-arms, swords and explosives, the Minister of National Defense shall permit and supervise the manufacture, management, export and import, etc. of them and issue orders or take actions, as necessary, in relation thereto, as prescribed by the Presidential Decree, notwithstanding the provisions of other Acts and subordinate statutes. <Amended by Act No. 3441, Apr. 13, 1981; Act No. 3699, Dec. 31, 1983>
[This Article Wholly Amended by Act No. 3003, Jul. 23, 1977]
Article 15(Replacement, Supplement, Extension or Relocation of Facilities) #
(1) In the case where there is an imminent need for the national defense, the government may issue to the person operating of a defense industry enterprise an order that it shall take relevant steps for the replacement, supplement, extension, or relocation of its facilities directly contributed to the production of the defense industry supplies. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983>
(2) The government shall compensate the enterprise for any loss or damage normally taking place due to the replacement, supplement, extension or relocation executed in compliance with the order under paragraph (1). <Amended by Act No. 3163, Apr. 17, 1979>
(3) Any successor or assignee who has taken over business involving the facilities which are subject to the order for the replacement, supplement, extension or relocation in accordance with paragraph (1) above shall take over any rights and obligations under paragraphs (1) and (2) which are based on the order. <Amended by Act No. 3163, Apr. 17, 1979>
Article 16(Protection of Confidential Information) #
The officers and staff of a defense industry enterprise, a research institute, a specialized or departmentalized enterprise, or a general enterprise, or any other persons who are or have been engaged in the production and/or research of the defense industry supplies in a defense industry enterprise, a research institute, a specialized or departmentalized enterprise, or a general enterprise shall not disclose or make fraudulent use of any information that they knew or acquired in the performance of their duties. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 5614, Dec. 31, 1998>
Article 17(Quality Administration, etc.) #
(1) A defense industry enterprise and a research institute shall take all necessary steps for quality administration, as prescribed by the Presidential Decree, to assure the quality of the defense industry supplies. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3699, Dec. 31, 1983; Act No. 4619, Dec. 27, 1993; Act No. 5614, Dec. 31, 1998>
(2) The government shall receive reports from a defense industry enterprise and a research institute, or dispatch supervisors to the defense industry facilities or other necessary spots so as to offer them guidance on quality administration or technologies, as and when deemed necessary for the production, procurement, research and development of defense industry supplies, as prescribed by the Presidential Decree. <Amended by Act No. 3699, Dec. 31, 1983; Act No. 4619, Dec. 27, 1993>
(3) Deleted. <by Act No. 5614, Dec. 31, 1998>
[This Article Wholly Amended by Act No. 3003, Jul. 23, 1977]
Article 17-2(Support of Defense Industry by Military Arsenal, etc.) #
A military arsenal and a military maintenance unit may give technical and production support to a defense industry enterprise or a research institute to help them to conduct the production or the research and development of the defense industry supplies, at the expense of the defense industry enterprise or the research institute. <Amended by Act No. 3699, Dec. 31, 1983>
[This Article Newly Inserted by Act No. 3003, Jul. 23, 1977]
Article 18(Labor Dispute) #
Actions taken by workers in a labor dispute who are engaged in major defense industry enterprise shall be restricted or prohibited as provided in the Trade Union and Labor Relations Adjustment Act. <Amended by Act No. 5454, Dec. 13, 1997>
[This Article Wholly Amended by Act No. 3658, Nov. 28, 1987]
Article 19(Stock of Raw Materials) #
(1) The defense industry enterprise shall keep raw materials for the production of the defense industry supplies in stock. <Amended by Act No. 3699, Dec. 31, 1983>
(2) The stock control, etc. of the materials under paragraph (1) and other necessary matters related thereto shall be prescribed by the Presidential Decree.
Article 20(Sale Order, etc.) #
(1) In the case where there is an imminent need for the national defense, the Minister of National Defense may issue to the person operating a defense industry enterprise or to those who own defense industry supplies for the purpose of selling, an order that they transfer the defense industry supplies at issue to the government, after having determined the time for transfer, the purchasing price, the time for payment, the payment method, and other necessary matters. <Amended by Act No. 3699, Dec. 31, 1983; Act No. 5614, Dec. 31, 1998>
(2) In the case where it is impracticable to issue such an order under paragraph (1) because it is not possible to identify the owner of the defense industry supplies, the Minister of National Defense may issue, as and when deemed necessary, to the occupier/holder of the defense industry supplies, an order, based on his title to them, that he transfer the same to the government, after having determined the time for transfer, the purchasing price, the time for payment, the payment method, and other necessary matters. <Amended by Act No. 3699, Dec. 31, 1983>
(3) When the purchase price under paragraph (1) is to be set up, reference to the production cost, profit margin, etc. shall be made.
Article 20-2(Consultation, etc. about Production, Purchasing Agreement, etc. of Defense Industry Supply) #
(1) In the case a government agency or a non-governmental body is in need of a defense industry supply available for the maintenance of the domestic security, precaution, study, test, inspection, and etc., it may execute a production/purchasing contract for such a defense industry supply with the defense industry enterprise concerned. In this case, the government agency shall consult with the Minister of National Defense in advance, whereas the non-governmental body shall obtain approval from the Minister of National Defense following its acquisition of recommendation from the chief of the central administration agency concerned. <Amended by Act No. 3958, Nov. 28, 1987>
(2) Deleted. <by Act No. 5614, Dec. 31, 1998>
[This Article Newly Inserted by Act No. 3699, Dec. 31, 1983]
Article 21(Export) #
(1) Those who intend to export the defense industry supplies to a foreign country shall obtain permission from the government as prescribed by the Presidential Decree. <Amended by Act No. 3163, Apr. 17, 1979; Act No. 3441, Apr. 13, 1981; Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987>
(2) A person who desires to conduct as a business the export of major defense industry supplies under Article 4-2 (2) shall report to the Minister of National Defense, and the matters necessary for the contents and procedures of the report shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(3) The Minister of National Defense may order restrictions on or adjustments to the export of major defense industry supplies after consultations with the head of the administrative agency concerned under the conditions prescribed by the Presidential Decree. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
Article 21-2(Military Off-set Trade) #
(1) When the Minister of National Defense is to procure a supply for military use from abroad, he may pursue a military off-set trade making it a condition that he will take a specific consideration in return for the execution of the contract, for instance, including the transfer of technologies and the export of components and parts of the supply for military use and other supplies, from the foreign party to the contract for the sake of development of the defense industry. <Amended by Act No. 5614, Dec. 31, 1998>
(2) The terms and conditions, scope, and other necessary matters for the military off-set trade under paragraph (1) shall be prescribed by the Presidential Decree.
[This Article Newly Inserted by Act No. 3958, Nov. 28, 1987]
Article 21-3(Control of Information on Science and Technologies for National Defense) #
(1) The Minister of National Defense shall systematically integrate and control the information on science and technologies for the national defense as follows: <Amended by Act No. 5614, Dec. 31, 1998>
1. The technologies introduced from a foreign country for the production of a major defense industry supply;
2. The technologies transferred from a foreign party to the contract as per the military off-set trade as provided for in Article 21-2;
3. The technologies developed as the result of research and development conducted by the National Defense Science Research Center in accordance with the National Defense Science Research Center Act; and
4. Other scientific and technological data on the national defense collected by the Government in and out of the Republic of Korea.
(2) With regard to information on science and technologies for the national defense under control in accordance with the provision of paragraph (1), the Minister of National Defense shall manage and distribute technological information, except for any such information as is regarded as difficult to disclose for military sake, in compliance with the policies on the management and distribution of knowledge and information of national science and technology pursuant to the Framework Act on Science and Technology. <Amended by Act No. 6353, Jan. 16, 2001>
(3) A military agency or government-invested research institute may transfer defense and scientific technology in its possession to the enterprises or agencies concerned on a basis of either payment or nonpayment with approval from the Minister of National Defense. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
[This Article Newly Inserted by Act No. 4619, Dec. 27, 1993]
Article 21-4(Suspension or Closure of Business) #
When a defense industry enterprise is to close or terminate business, it shall obtain in advance approval from the government in accordance with the Presidential Decree.
[This Article Newly Inserted by Act No. 4619, Dec. 27, 1993]
Article 22(Cancellation of Designation) #
(1) The designation of a defense industry enterprise shall be cancelled when it falls under any of the following subparagraphs: <Amended by Act No. 3699, Dec. 31, 1983; Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
1. It fails to satisfy the facilities criteria and the security requirements as provided for in Article 4;
1-2. It fails to obtain approval under Article 4 (3);
2. It refuses or avoids the execution of, or fails to carry out a contract to supply the government with the defense industry supplies without a justifiable reason;
3. It acquires any finances as provided for in Article 7 or Article 7-2 (3) in a false or fraudulent manner, or use it apart from its true purpose;
3-2. It is in breach of the provisions of Article 8 (3);
4. It acquires any subsidy as provided for in Article 9 (1) in a false or fraudulent manner, or use it apart from its true purpose;
5. It disposes of any property without obtaining approval under Article 9 (2);
6. It is in breach of the order under Article 14;
7. It fails to carry out the order under Article 15 (1);
8. It enters into a supply agreement by submitting to the government cost data drawn up with forged or other fraudulent contents;
8-2. Where a defense industry enterprise is unable to conduct normal business activities due to insolvency, bankruptcy, or other serious managerial reasons, and so requests that the Minister of Commerce, Industry and Energy cancel the designation of the enterprise as a defense industry enterprise, accompanied by the relevant documents; and
9. It is in breach of this Act or any order under this Act in other ways.
(2) The designation of a defense industry supply may be cancelled when it falls under any of the following subparagraphs: <Newly Inserted by Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
1. It is recognized that it can be procured from more than two enterprises with ease and its quality can be assured;
2. It is no longer required by the military, or has been dropped off a suit of formation equipment it is incorporated into;
3. It does not need its military confidentiality, for its grade of classification has been lowered; and
4. It needs the cancellation of designation as defense industry supplies or does not need the continuous maintenance of designation as such, due to the change or cancellation of a business plan on the research and development or production through introduction of technology.
(3) The procedures and other necessary matters for the cancellation of the designation as provided for in paragraphs (1) and (2) shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 3958, Nov. 28, 1987>
[This Article Wholly Amended by Act No. 3163, Apr. 17, 1979]
Article 22-2(Redemption of Unjust Enrichment) #
(1) Where a defense industry enterprise, a research institute, a specialized or departmentalized enterprise, or a general enterprise gains unjust enrichment through the submission of false or other unjust cost accounting data to the government, the government shall collect both the amount so obtained and additional dues equivalent thereto under the conditions prescribed by the Presidential Decree.
(2) Where a person who is to return the unjustly obtained enrichment and additional dues equivalent thereto under paragraph (1) concurrently has a claim for money such as a deposit to be paid by the government, the government may offset the amount of the claim by the amount to be redeemed under paragraph (1).
[This Article Newly Inserted by Act No. 5614, Dec. 31, 1998]
Article 22-3(Defense Industry Promotion Association) #
(1) Those who operate defense industry enterprises and research institutes may establish a defense industry promotion association (hereinafter referred to as the "Promotion Association") with a view to pursuing reliable development of the defense industry, with approval of the Minister of National Defense. <Amended by Act No. 4619, Dec. 27, 1993>
(2) When the Minister of National Defense is to give approval under paragraph (1), then he shall consult with the Minister of Commerce, Industry and Energy. <Amended by Act No. 4541, Mar. 6, 1993; Act No. 5614, Dec. 31, 1998>
(3) The Promotion Association shall be incorporated as a juristic person.
(4) The Promotion Association will undertake the following affairs: <Newly Inserted by Act No. 4619, Dec. 27, 1993; Act No. 5614, Dec. 31, 1998>
1. Offering guarantee for a finance given from the funds under Article 7-2 (3);
2. Offering payment guarantee for a bid bond, contract deposit, and defect-repair deposit for the procurement, research and development, and pilot-production of defense industry supplies under Article 12 (1);
3. Offering guarantee for advance and intermediate payments under Article 12 (2);
4. Offering guarantee against the risks of damages and losses to government-issued munitions under Article 24 of the Act on the Management of Military Supplies;
5. Offering guarantee for the loan of reserved raw materials; and
6. Other necessary affairs for the promotion of the defense industry.
(5) The Promotion Association may, in order to perform the affairs of guarantee under paragraph (4) 1 through 5, establish and operate a defense industry enterprise guarantee fund (hereinafter referred to as the "guarantee fund") created through contributions made by defense industry enterprises, and the matters necessary for the creation, operation, and supervision of the guarantee fund shall be prescribed by the Presidential Decree. <Newly Inserted by Act No. 5614, Dec. 31, 1998>
(6) The Promotion Association may charge fees from those who benefit from its service, with approval of the Minister of National Defense.
(7) The government may allow the Promotion Association, for and on behalf of it, to undertake some affairs relating to the guidance on and the cultivation of the defense industry and the import and export of the defense industry supplies. <Amended by Act No. 3699, Dec. 31, 1983>
(8) The provisions of the Civil Act with respect to a unincorporated association shall apply mutatis mutandis to the Promotion Association, except otherwise prescribed in this Act.
[This Article Newly Inserted by Act No. 3163, Apr. 17, 1979]
Article 23(Penal Provisions) #
(1) When a person acquired any loan or subsidy as provided for in Article 7 or 7-2 (3) and 9 (1) in a false or fraudulent manner, or used it apart from its true purpose, then he shall be punished by imprisonment for not more than 10 years, or a fine of not more than 10 times as much as the loan or subsidy he acquired.
(2) When a person obtained those permissions as provided for in Article 14 or 21 (1) in a false or fraudulent manner, or attempted to effect any act thereunder without obtaining such a permission, then he shall be punished by imprisonment for not more than 10 years, or a fine not exceeding 50 million won. <Amended by Act No. 3441, Apr. 13, 1981; Act No. 5614, Dec. 31, 1998>
(3) A person who is in breach of Article 16 shall be punished by imprisonment of not more than 5 years, or by a fine of not more than 30 million won.
(4) A person falling under any of the following subparagraphs shall be punished by imprisonment for not more than 3 years, or a fine not exceeding 10 million won: <Amended by Act No. 3699, Dec. 31, 1983; Act. No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
1. A person who used the advance or intermediate payment as he received in accordance with Article 12 (2) for any other purpose than its true purpose;
2. Deleted; <by Act No. 5614, Dec. 31, 1998>
3. A person who is in breach of Article 9 (2) or 20;
4. A person who failed to carry out his responsibilities under the contract to supply defense industry supplies and specialized or departmentalized items to the government without justifiable reason;
5. A person who is in breach of the order under Article 14 or 15 (1); and
6. A person who committed such an act as provided in Article 22 (1) 8.
(5) A person falling under any of the following subparagraphs shall be punished by imprisonment for not more than 1 year, or a fine of not more than 5 million won: <Amended by Act No. 3958, Nov. 28, 1987; Act No. 5614, Dec. 31, 1998>
1. A person who materially changed the management right without obtaining approval under Article 4 (3);
1-2. A person who is in breach of Article 8 (3);
2. A person who used the defense industry supplies purchased under the contract which was executed for the production and purchase in accordance with Article 20-2 (1) for a purpose other than their true purpose; and
3. A person who suspended or closed his business without obtaining approval under Article 21-4.
(6) A person falling under any of the following subparagraphs shall be punished by a fine not exceeding 5 million won: <Amended by Act No. 5614, Dec. 31, 1998>
1. A person who is in breach of Article 19 (1) without justifiable cause; and
2. A person who conducts the export business of major defense industry supplies without making a report under Article 21 (2) or makes a report on the export business of major defense industry supplies through false or other unjust means.
[This Article Wholly Amended by Act No. 3163, Apr. 17, 1979]
Article 24(Joint Penal Provisions) #
If a representative of a juristic person, or an agent, a servant or other employees of a juristic person or an individual, commits an offense as provided for in Article 23 in connection with the affairs of such a juristic person or an individual, the fine prescribed in Article 23 shall be imposed on such a juristic person or an individual, in addition to punishment of the offender.
Article 25(Enforcement Decree) #
Necessary matters for the enforcement of this Act shall be prescribed by the Presidential Decree.