Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Act on Special Measures for Defense Industry (hereinafter referred to as the "Act") and matters necessary for the enforcement thereof. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
Article 2 #
Deleted.<by Presidential Decree No. 12450, May 12, 1988>
Article 3(Duration of Basic Plan for Fostering Defense Industry) #
(1) The duration of the basic plan for fostering the defense industry pursuant to Article 3 of the Act shall be 5 years.
(2) When the Minister of National Defense is to set up a plan for rationalizing production facilities for the defense industry in accordance with Article 3 (3) 2 of the Act, then he shall consult with the Minister of Commerce, Industry and Energy. <Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Wholly Amended by Presidential Decree No. 12450, May 12, 1988]
Article 4(Designation of Defense Industry Supplies) #
(1) The designation of supplies from the defense industry (hereinafter referred to as "defense industry supplies") pursuant to Article 4-2 of the Act shall be done by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) The supplies which can be designated as defense industry supplies pursuant to the proviso of Article 4-2 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 16147, Mar. 3, 1999>
1. The commodities which are under research and development for military use and also are expected to be adopted as part of a weapon system on the completion of such research and development;
2. The commodities which are to be produced through the introduction of technology and also are expected to be adopted as part of a weapon system; and
3. Other commodities which satisfy the criteria set forth by the Ordinance of the Ministry of National Defense.
(3) The major defense industry supplies and the general defense industry supplies as provided for in Article 4-2 (2) of the Act refer, respectively, to the following defense industry supplies and others than them: <Amended by Presidential Decree No. 14330, Jul. 20, 1994>
1. Major strategic and tactical equipment within the framework of the weapon system; and
2. Deleted; <by Presidential Decree No. 14330, Jul. 20, 1994>
3. Other commodities which the Minister of National Defense regards critical ones among those being served as military supplies.
(4) A person who wishes to be favored with the designation of defense industry supplies shall submit to the Minister of National Defense an application for the designation of defense industry supplies.
(5) When the Minister of National Defense regards appropriate to designate the commodities covered by the application pursuant to paragraph (4) as defense industry supplies, then he shall designate them as such and notify both the applicant and the Minister of Commerce, Industry and Energy accordingly. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(6) The qualifications of a defense industry supplies according to its use, etc. and other necessary matters relating to its designation shall be prescribed by the Ordinance of the Ministry of National Defense.
[This Article Wholly Amended by Presidential Decree No. 12450, May 12, 1988]
Article 5(Designation of Defense Industry Enterprise) #
(1) The designation of an enterprise as engaged in the defense industry (hereinafter referred to as a "defense industry enterprise") under Article 4 of the Act shall be done by the Minister of Commerce, Industry and Energy in consultation with the Minister of National Defense. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) Those who wish to be designated as a defense industry enterprise shall apply with the Minister of Commerce, Industry and Energy by submitting documents falling under the following subparagraphs: Provided, That when an already designated defense industry enterprise wishes to have an additional designation for the purpose of producing another defense industry supply, it may submit only those documents under subparagraphs 1 and 4 through 7: <Amended by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
1. An application form;
2. Articles of incorporation and authentic copy of Registration Certificate of the Corporation (applicable only to a legal corporation);
3. Balance sheets and profit and loss statement;
4. The specifications and performance description of the production facilities and their major adjuncts;
5. Data showing the past consumption and a plan for the procurement of materials;
6. The types and sizes of the products and data showing the past production and sale of the products and a plan for future production and sale of the products;
7. An overall business plan;
8. A plan for education of engineers and licensed technicians and the description of their technical capabilities; and
9. A plan for the provision of safety measures and detailed descriptions thereof.
(3) When the Minister of Commerce, Industry and Energy is in receipt of the application documents pursuant to paragraph (2), he shall examine the production facilities, etc. of the applicant in accordance with the facilities criteria provided for in Article 7, while requesting the Minister of National Defense to examine whether or not the applicant satisfies the security requirements as provided for in Article 8. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(4) When the Minister of Commerce, Industry and Energy admits that the applicant who has filed with him an application for the designation of a defense industry enterprise in accordance with paragraph (2) has satisfied the facilities criteria as provided for in Article 7 and the security requirements as provided for in Article 8 and, therefore, it is regarded appropriate to designate the applicant as such, then he shall designate the applicant as a defense industry enterprise and notify both the applicant and the chief of the administrative agency concerned accordingly. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(5) When the Minister of Commerce, Industry and Energy has newly designated a defense industry enterprise in accordance with paragraph (4), he shall issue to the applicant a letter of the designation of a defense industry enterprise. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(6) When the information as included in the documents submitted under paragraph (2) can be confirmed through joint use of administrative information under Article 21 (1) of the Act on Promotion of the Digitalization of Administrative Affairs, etc. for Creation of Digital Government, such confirmation may be substituted for such documents. <Newly Inserted by Presidential Decree No. 18312, Mar. 17, 2004>
Article 5-2(Sale of Defense Industry Enterprise) #
(1) The term "case which falls under the standards as prescribed by the Presidential Decree" in the main sentence of Article 4 (3) of the Act means any case which falls under any of the following subparagraphs:
1. Where the stocks (including equities and other property rights; hereinafter the same shall apply) of a defense industry enterprise are to be disposed of or acquired collectively by sale, exchange and merger between enterprises, exercise of security rights, receipt of accord and satisfaction, or other methods;
2. Where a defense industry enterprise desires to separate its production section of defense industry supplies and establish a new corporation with the separated production section or to dispose of or acquire the separated production section collectively by sale, exchange and merger between enterprises, exercise of security rights, receipt of accord and satisfaction, or other methods;
3. Where the same person desires to own 50/100 or more of the stocks of a defense industry enterprise independently or together with the following persons (hereinafter referred to as "persons related to the same person") (including where the same person who holds less than 50/100 of the stocks of the defense industry enterprise but is its largest stockholder desires to exercise ruling influential powers over the appointment of officers or the management of the defense industry enterprise in person or through the persons related to the same person):
(a) His or her spouse, blood relatives within the eighth degree of relationship, or affinity relatives within the fourth degree of relationship;
(b) An enterprise in which the same person exercises ruling influential powers over the major decision-making or the execution of business of the enterprise such as the change in organization or the investment in a new business in person or through the persons related to the same person; and
(c) An enterprise in which the same person appoints or removes the representing director of the enterprise or appoints or is capable of appointing 50/100 or more of the number of the officers through contracts or agreements with other stockholders; and
4. Where a defense industry enterprise is to be managed by means of the taking-over, lease, or acceptance of management of the whole or main part of its business.
(2) A person who desires to obtain approval from the Minister of Commerce, Industry and Energy under the main sentence of Article 4 (3) of the Act shall submit to the Minister of Commerce, Industry and Energy an application for approval as determined by the Ordinance of the Ministry of National Defense, together with the documents under Article 5 (2) 2 and 3 and documentary evidence concerning the acquisition of stocks of the defense industry enterprise: Provided, That where he desires to acquire the defense industry enterprise and operate it by changing the production facilities or security requirements of the defense industry supplies, he shall submit the documents under Article 5 (2) 4 through 9 in addition to the said documents.
(3) Where the Minister of Commerce, Industry and Energy approves of the application under paragraph (2), he shall notify the applicant and the heads of the relevant ministries and agencies, and if the trade name, representative, or address of the defense industry enterprise is changed as a result of the approval, shall re-issue the written designation of the defense industry enterprise.
[This Article Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999]
Article 5-3(Specialization and Departmentalization) #
(1) The specialization and departmentalization of supplies pursuant to Article 4-3 of the Act shall be implemented by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy, with them grouped into the major categories of weapon systems and functions, whereas the specialization and departmentalization of defense industry-related enterprises shall be carried out by the Minister of Commerce, Industry and Energy in consultation with the Minister of National Defense, taking into consideration the facilities capabilities, technical level, and security requirements of the enterprises concerned. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) Where the classification of items for specialization and departmentalization is no more needed, the Minister of National Defense may release the classification of the specialized and departmentalized items in consultation with the Minister of Commerce, Industry and Energy. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
(3) Where the designation of enterprises for specialization and departmentalization is no more needed, the Minister of Commerce, Industry and Energy may cancel the designation of the enterprises in consultation with the Minister of National Defense. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 12450, May 12, 1988]
Article 6(Commission of Research Institute) #
(1) Commission given to a certain research institute in accordance with subparagraph 4 of Article 2 of the Act shall be done by the Minister of National Defense.
(2) The Minister of National Defense shall give a commission to a certain research institute among the organizations which satisfy the security requirements pursuant to Article 8 (1), taking it into consideration of the facilities and technical level of the research institute concerned: Provided, That in the case where he commissions a research institute to undertake a research project, which is not a military secret, so as to establish the foundations of science and technologies for the national defense, he may be freed from the security requirements as provided for in Article 8 (1) thereto. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(3) When the Minister of National Defense is to commission a certain research institute in accordance with paragraphs (1) and (2), he may require the research institute to submit to him documents falling under each of the following subparagraphs: Provided, That when the information as included in the following documents can be confirmed through joint use of administrative information under Article 21 (1) of the Act on Promotion of the Digitalization of Administrative Affairs, etc. for Creation of Digital Government, such confirmation may be substituted for such documents: <Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 18312, Mar. 17, 2004>
1. Articles of incorporation and the authentic copy of Registration Certificate of the Corporation (applicable only to a legal corporation);
2. The specifications and performance description of the research facilities and their major adjuncts;
3. An overall business plan and the past business performance records; and
4. A detailed description of technical capabilities.
(4) When the Minister of National Defense is to commission a research institute operated by the Government or a local government or a research institute to which the Government made a financial contribution, as a research institute as provided in subparagraph 4 of Article 2 of the Act, he shall consult in advance with the competent Minister.
(5) When the Minister of National Defense commissions a research institute, he shall issue the letter of commission of the research institute to the manager of the research institute concerned and notify the organizations concerned accordingly.
Article 7(Criteria for Facilities) #
(1) The facilities criteria pursuant to Article 4 (1) of the Act shall be such criteria as determined by the Minister of Commerce, Industry and Energy with respect to the personal and physical facilities as stated below: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
1. Both general and special facilities needed for the production of defense industry supplies;
2. Facilities for quality inspection of defense industry supplies;
3. Engineering staff needed for the production of defense industry supplies; and
4. Other facilities which are regarded by the Minister of Commerce, Industry and Energy as necessary.
(2) When the Minister of Commerce, Industry and Energy is to determine the facilities criteria pursuant to paragraph (1), he shall consult in advance with the Minister of National Defense. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
Article 7-2(Change in Criteria for Facilities) #
(1) Where a defense industry enterprise deems that it bears an excessive burden in the management due to idle production facilities, it may recommend that the Minister of Commerce, Industry and Energy change the criteria for facilities under Article 7 (1) by producing the relevant documentary evidence.
(2) Where the Minister of Commerce, Industry and Energy desires to change the criteria for facilities in accordance with the recommendation under paragraph (1), he shall have prior consultation with the Minister of National Defense.
[This Article Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999]
Article 8(Security Requirements) #
(1) The security requirements pursuant to Articles 4 (1) and 4-3 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 16147, Mar. 3, 1999>
1. Security measures for both the area and facilities to ensure that the facilities for the defense industry (hereinafter referred to as the "defense industry facilities") may be fully protected;
2. Security measures for those who are engaged in defense industry enterprises;
3. Security measures pertaining to the handling, maintaining and control of confidential documents;
4. Measures for the protection of defense industry supplies and raw materials;
5. Measures for the protection of equipment and materials;
6. Security measures for the communication facilities and communication means;
7. Measures for the protection of the electronic processing of various data and the output of the electronic data processing;
8. Communication means which ensure organizational interrelationship with the intelligence agencies concerned in preparation for any security failure; and
9. Other security measures which the Minister of National Defense regards necessary for the preservation of security.
(2) The inspection of fulfillment of the security requirements and the ascertainment of the status of security maintenance under paragraph (1) shall be carried out by the Minister of Defense in accordance with the regulations on security affairs.
Article 9 #
Deleted.<by Presidential Decree No. 16147, Mar. 3, 1999>
Article 10 #
Deleted.<by Presidential Decree No. 16147, Mar. 3, 1999>
Article 11 #
Deleted.<by Presidential Decree No. 14330, Jul. 20, 1994>
Article 12 #
Deleted.<by Presidential Decree No. 16147, Mar. 3, 1999>
Article 13(Protection and Fostering of Defense Industry Enterprises) #
(1) The government shall first purchase defense industry supplies produced by defense industry enterprises.
(2) The Minister of National Defense shall notify the defense industry enterprise concerned of the target volume of production of defense industry supplies each year. <Amended by Presidential Decree No. 14330, Jul. 20, 1994>
(3) In the case where a defense industry enterprise produces the volume of the supplies for the current year, of the target volume of production as was informed to him in accordance with paragraph (2), prior to making a contract for the procurement of supplies for the current year, it may request the Minister of National Defense to conduct quality inspection of the supplies so produced, and then he shall comply with such a request insofar as he has no specific reason for objection. <Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994>
(4) Where a defense industry enterprise finds difficulty in keeping defense industry supplies produced prior to the supply contract under paragraph (3) or they might cause safety accident, the defense industry enterprise may in advance deliver the supplies to the place as designated by the Chief of the General Staff of the army who is to be provided with the defense industry supplies or keep them in such place, after consultation with the said Chief of the General Staff. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Wholly Amended by Presidential Decree No. 12450, May 12, 1988]
Article 14(Financing) #
(1) When a defense industry enterprise or any enterprise which is not a defense industry enterprise (hereinafter referred to as a "general enterprise") as defined by the proviso of the text of Article 7 of the Act intends to be favored with a financing facility in accordance with this Article, it shall apply for it with a financial organization transacting such facilities, with a recommendation on such financing from the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(2) When the Minister of National Defense regards it necessary to build up defence industry enterprises in a balanced way, he may recommend the competent Minister to have a certain defense industry enterprise be favored with a financing facility. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
Article 15(Administration of Funds for Fostering Defense Industry) #
(1) The Minister of National Defense shall appoint revenue collection officers, financial officers, disbursing officers and accounting officials, for funds in order to administer the funds for fostering the defense industry under Article 7-2 of the Act (hereinafter referred to as the "funds"). <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 17824, Dec. 30, 2002>
(2) and (3) Deleted. <by Presidential Decree No. 17824, Dec. 30, 2002>
(4) The Minister of National Defense shall have the disbursing officers for the funds open an account therefor with the Bank of Korea. <Amended by Presidential Decree No. 17824, Dec. 30, 2002>
(5) and (6) Deleted. <by Presidential Decree No. 17824, Dec. 30, 2002>
Article 15-2(Undertaking of Affairs for Loaning Funds) #
The Minister of National Defense may deposit the funds with the Korea Development Bank in order to have it undertake affairs for loaning the funds in accordance with Article 19 of the Korea Development Bank Act.
[This Article Newly Inserted by Presidential Decree No. 9717, Jan 15, 1980]
Article 16(Receipts and Payments of Funds) #
(1) The receipts of the funds will consist of contributions, surplus from the settlement of accounts, amounts received, interest receipts, and profits from the operation of the funds.
(2) The payments of the funds will consist of loan, interest on borrowed money, and administration expenses. <Amended by Presidential Decree No. 9717, Jan. 15, 1980>
Article 16-2(Operation of Funds Surplus) #
The Minister of National Defense may operate any funds surplus in any of the following manner:
1. Purchasing a national bond or a public bond; or
2. Depositing with a financial organization.
[This Article Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980]
Article 17(Plan for Operation of Funds) #
The Minister of National Defense shall draw out a plan for the operation of the funds outlining the receipts and payments and the use of the funds prior to the beginning of every fiscal year, and shall obtain approval from the President via consultation with both Minister of Commerce, Industry and Energy and Minister of Planning and Budget and via the deliberation of the State Council. The same shall apply to cases where the plan for the operation of the funds is amended. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999; Presidential Decree No. 16326, May 24, 1999>
Article 18(Allocation of Maximum Amounts for Acts on Which Expenditure of Funds is Based) #
(1) When the Minister of National Defense orders the financial officers for the funds to carry out acts on which the expenditure of the funds is based, he shall ensure that maximum amounts for the acts on which the expenditure of the funds should be allocated within the framework of the plan for the operation of the funds pursuant to Article 17. <Amended by Presidential Decree No. 17824, Dec. 30, 2002>
(2) When the Minister of National Defense has allocated the maximum amounts for the acts on which the expenditure of the funds is based, he shall notify this to both the disbursing officers concerned and the Minister of Finance and Economy. <Amended by Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999; Presidential Decree No. 17824, Dec. 30, 2002>
(3) The Minister of Finance and Economy shall, if necessary in consideration of the operation conditions, etc. of the funds, take appropriate measures to limit the payment of the funds. <Amended by Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
Article 19(Entrustment of Right to Operate Funds) #
In accordance with Article 7-2 (5) of the Act, the Minister of National Defense may entrust the Minister of Commerce, Industry and Energy with the right to recommend financing the funds which fall under any of the following subparagraphs: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
1. Funds for the introduction, installation, relocation, replacement, supplement, or extension of defense industry facilities;
2. Funds for the operation of defense industry enterprise; or
3. Funds for the purchase of land needed for the production of defense industry supplies.
[This Article Wholly Amended by Presidential Decree No. 9717, Jan. 15, 1980]
Article 20(Financing of Funds) #
(1) When a defense industry enterprise, a research institute, a general enterprise, or an enterprise exporting defense industry supplies intends to be favored with a financing facility from the funds, it shall apply for this with the Korea Development Bank, after obtaining recommendation on the financing from the Minister of National Defense or the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) Upon receipt of the application pursuant to paragraph (1), the Korea Development Bank will effect financing in accordance with Article 24. <Amended by Presidential Decree No. 12450, May 12, 1988>
[This Article Wholly Amended by Presidential Decree No. 9717, Jan. 15, 1980]
Article 20-2(Repayment of Funds) #
(1) When the Korea Development Bank has been refunded the financed money under the funds deposited with it (hereinafter referred to as the "deposit") in accordance with Article 15-2 or has received its interest, then he shall immediately repay the refunded deposit and its interest to the account set up for the funds.
(2) When the Korea Development Bank has repaid the refunded deposit and its interest, it shall forwarded a voucher of the payback to the revenue collection officers for the funds without delay. <Amended by Presidential Decree No. 17824, Dec. 30, 2002>
[This Article Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980]
Article 21(Scope of Financing Funds) #
"Other matters as prescribed by the Presidential Decree" stated in Article 7-2 (3) 5 of the Act shall be as follows: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988, Presidential Decree No. 14330, Jul. 20, 1994>
1. Funds for the research and development of defense industry supplies or the introduction of defense industry technologies;
2. Funds for the purchase of land needed for the production of defense industry supplies; and
3. Funds for the maintenance of essential production facilities in preparation for wartime among the idle facilities of a defense industry enterprise.
Article 22(Supervision) #
(1) Those who have been favored with a financing facility from the funds shall not use it for any other purpose than its designated purpose.
(2) The Minister of Defense or the Minister of Commerce, Industry and Energy may, if it is regarded necessary to ascertain whether or not the beneficiary of the financing facility has been in compliance paragraph (1), order the beneficiary to make a specific report, to submit books, documents or other objects, or to have public officials under them examine those matters. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(3) When the beneficiary of the financing facility has used it for any other purpose than its designated purpose, or does not comply with the examination pursuant to paragraph (2), the Minister of National Defense or the Minister of Commerce, Industry and Energy may have the Korea Development Bank withdraw the financed money immediately or suspend recommending giving an additional financing facility to him for a certain period of time. <Amended by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(4) When it is found that the beneficiary of the financing facility is in breach of paragraph (1), the Korea Development Bank shall report the fact to the Minister of National Defense or the Minister of Commerce, Industry and Energy without delay. <Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
Article 23(Report on Settlement of Accounts) #
The Minister of National Defense shall prepare a report on the settlement of accounts for every fiscal year, and submit it to the Minister of Finance and Economy by the end of February of the next year. <Amended by Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
Article 24(Operation of Funds) #
With regard to the financing, application, approval, interest rates on the financed money, repayment periods, etc, the Minister of National Defense shall consult with the Minister of Finance and Economy and the Minister of Commerce, Industry and Energy about all the necessary details. <Amended by Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
Article 25(Transferring or Loaning of National Properties) #
(1) Miscellaneous properties which may be lent, free of charge, in accordance with Article 8 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 14330, Jul. 20, 1994>
1. The land, buildings and structures directly contributed to the defense industry facilities whose transfer is carried out in accordance with the order under Article 15 (1) of the Act; and
2. The information on science and technologies for the national defense pursuant to Article 21-3 (1) of the Act.
(2) The administrative properties, the use of which may be permitted, free of charge, in accordance with Article 8 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
1. Various types of testing places;
2. Explosives treatment places;
3. Fields for shooting; and
4. Other properties as determined in consultation with the Minister of Finance and Economy, which are needed for the production and testing of defense industry supplies
(3) The devices or objects for the exclusive use of the defense industry which may be lent on a basis of either payment or non-payment in accordance with Article 8 (2) or (4) of the Act refer to materials, equipment, tools/jiggers, measurement instrument, inspection equipment, or objects needed for performance test and inspection and their components which are used for the production and the research and development of defense industry supplies or the production of pilot models. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(4) The devices or objects for the exclusive use of the defense industry as provided for in paragraph (2) may be lent on a basis of either payment or non-payment in the case where they fall under any of the following subparagraphs: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988>
1. The case where it takes long time or is considered impracticable to perform repairs domestically, or the case where there are concerns that any difficulty in domestic purchase or in foreign procurement may give rise to hindrance to the production of a defense industry supply;
2. The case where it is necessary to perform tests or inspections of defense industry supplies;
3. The case where it becomes impracticable to carry out production because of the destruction of production facilities due to disaster beyond control; or
4. The case where a contract for the procurement of a defense industry supply or the research and development thereof, etc. is commissioned on condition that loans are made.
(5) The devices or objects for the exclusive use of the defense industry which may be transferred, free of charge, in accordance with Article 8 (2) of the Act shall be as follows: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14330, Jul. 20, 1994>
1. One of objects for the exclusive use of the defense industry or others, which is not suitable for return after being used, where paragraph (4) 2 and 3 apply;
2. Military supplies which have been determined by the military as unusable or extra devices, but can be turned into usable ones after being repaired or recycled by a defense industry enterprise or a research institute.
(6) When a defense industry enterprise or a research institute is to use, lease, or have the transfer of administration properties, etc., it, shall after having prepared the following documents, obtain recommendation from the Minister of National Defense and then file an application with the concerned Office responsible for the control of the properties: in the event that the concerned Office is the Ministry of National Defense, it shall file the application directly with the Minister of National Defense. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988>
1. An application form; and
2. A plan for the use of the properties.
(7) When the concerned Office receives an application pursuant to paragraph (6), it shall permit the use of, or lend or transfer the properties insofar as it has no specific reason to object to it.
(8) The provisions of Article 32 of the Enforcement Decree of the Act on the Management of Military Supplies shall apply mutatis mutandis to the procedures for exchange of defense industry supplies under Article 8 (4) of the Act. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
Article 26(Granting of Subsidies, etc.) #
(1) "Other matters as prescribed by the Presidential Decree" referred to in Article 9 (1) 4 of the Act shall be as follows: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 16147, Mar. 3, 1999>
1. The transfer of defense industry facilities in accordance with the order under Article 15 (1) of the Act;
2. Costs for maintenance and labor costs for employees of the devices or objects for the exclusive use of the defense industry which are lying idle because of the suspension or drastic decrease of the procurement by the government of defense industry supplies;
3. The restoration of the defense industry facilities or the defense industry supplies which have been destroyed, lost or damaged by natural disasters, earthquakes or other disasters, or the purchase of their replacements for the same reason; and
4. The removal or dismantlement of the facilities and devices only for the production of defense industry supplies unused as a result of the execution of the defense industry restructuring plan by the Government.
(2) Criteria and other necessary matters for the granting of subsidies pursuant to Article 9 (1) of the Act shall be determined by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(3) Those who wish to be favored with the granting of subsidies in accordance with Article 9 (1) of the Act shall file an application with the Minister of National Defense, after having prepared the following documents:
1. An application form;
2. A business plan; and
3. A description of the funds needed.
(4) When the Minister of National Defense is to grant a subsidy to a defense industry enterprise or a research institute, he may make it a condition that, if and when the subsidy brings about a substantial profit to such an organization, it will return the whole or part of the subsidy to the government. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
Article 27(Transfer, etc. of Properties Acquired by Subsidy) #
(1) Those who wish to have approval for the disposition of their properties in accordance with Article 9 (2) of the Act shall file an application with the Minister of National Defense, after having prepared the following documents:
1. An application form; and
2. A statement showing grounds.
(2) When the Minister of National Defense is to determine whether or not to give approval on the disposition of the properties, he shall consult with the Minister of Commerce, Industry and Energy about this. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
Article 28(Commission of Research Project and/or Production of Pilot Model) #
(1) The research or the production of a pilot model pursuant to Article 10 (1) of the Act shall be commissioned by the Minister of National Defense, but if such commission involves a defense industry-related enterprise other than a research institute, then he shall consult with the Minister of Commerce, Industry and Energy about this. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) When the research or the production of a pilot model pursuant to paragraph (1) is to be commissioned, it shall be commissioned preferentially to one of the research institutes, specialized enterprises, or departmentalized enterprises which research into or produce the like types of products: Provided, That such commission may be given to a defense industry enterprise or a general enterprise in the case where any of the following subparagraphs applies: <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
1. There is neither research institute, specialized enterprise, nor departmentalized enterprise that researches into or produces the like types of products;
2. It is determined that it may be impracticable to carry out the research or the production of a specific pilot model because of insufficiencies of the facilities, funds and technical competence of research institutes, specialized enterprises, or departmentalized enterprises; and
3. The research institute, specialized enterprise, or departmentalized enterprise which performs the research or the production of the like types of products avoids undertaking the research or the production of a specific pilot model.
(3) When the Minister of National Defense has given a commission pursuant to paragraph (1), he shall give notice to the head of the administrative agency concerned. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(4) Affairs relating to the granting of incentives pursuant to Article 10 (4) of the Act shall be managed by the Minister of National Defense.
(5) Criteria, procedures or other necessary matters for the payment of the incentives shall be determined by the Minister of National Defense: when he is to determine criteria for the payment of the incentives, he shall consult with the Minister of Planning and Budget about this. <Amended by Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999; Presidential Decree No. 16326, May 24, 1999>
Article 28-2(In-country Production of Defense Industry Supplies, etc.) #
Necessary matters relating to the fundamental principles objects and assistance, etc. with the in-country production of defense industry supplies and other supplies for military use shall be determined by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 12450, May 12, 1988]
Article 29(Granting of Incentives to Licensed Technicians, etc.) #
(1) Affairs relating to the granting of incentives pursuant to Article 11 (1) of the Act shall be managed by the Minister of National Defense.
(2) The scope of engineers and licensed technicians who may be eligible for receiving the incentives pursuant to paragraph (1) shall cover those who fall under any of the following subparagraphs and are regarded by the Minister of National Defense as an essential person of a defense industry enterprise, a research institute, a military depot/arsenal, a military maintenance unit or a military supply agency. <Amended by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 11491, Aug. 30, 1984>
1. Those who are qualified to act as an engineer or a technician as prescribed in Acts and subordinate statutes; and
2. Those who the Minister of National Defense regards have qualification corresponding to subparagraph 1.
(3) Criteria, procedures and other necessary matters for the payment of incentives shall be determined by the Minister of National Defense: when he is to determine criteria for the payment of the incentives, he shall consult with the Minister of Planning and Budget. <Amended by Presidential Decree No. 14338, Dec. 23, 1994; Presidential Decree No. 16147, Mar. 3, 1999; Presidential Decree No. 16326, May 24, 1999>
Article 30(The Period of Compulsory Service of Beneficiaries of Incentives) #
(1) The period of mandatory service, under Article 11 (4) of the Act, of a person who has received incentives in accordance with Article 11 (1) of the Act and Article 29 of this Presidential Decree shall be the period during which he receives incentives, not exceeding 3 years.
(2) Those who do not fulfill their mandatory service period under paragraph (1) shall be responsible to return their incentives already received.
Article 30-2(Coordination Committee for Contracts for Procurement of Defense Industry Supplies) #
(1) With respect to the transaction of administration affairs for contracts under Article 12 of the Act, the Coordination Committee for Contracts for the Procurement of Defense Industry Supplies (hereinafter referred to as the "Committee") shall be established under the Head of the Defense Procurement Agency with a view to deliberating matters falling under the following subparagraphs: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 14360, Aug. 19, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
1. Acknowledgement of a cause for delay for which the contractor may not be responsible;
2. Matters on adjusting time for the delivery of supplies;
3. Matters on contracts where the existence of a defense industry enterprise is uncertain due to dishonor or others; and
4. Other matters which the Chairman of the Committee regards necessary.
(2) The Committee shall be comprised of not more than 15 members including the Chairman of the Committee.
(3) The Chairman of the Committee shall be the Head of the Defense Procurement Agency and the members shall be those who fall under any of the following subparagraphs: <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 14360, Aug. 19, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
1. The Director or Vice-Director in charge of the Defense Industry of the Ministry of National Defense as nominated by the Minister of National Defense;
2. The Vice Head of the Defense Procurement Agency, and each of the Director in charge of the Planning Control Affairs and the Director in charge of the Equipment-related Affairs of the Defense Logistics Office as nominated by the Minister of National Defense; and
3. Others who are specialists in the field of procurement contracts and commissioned by the Chairman of the Committee.
(4) Necessary matters relating to the administration of the Committee, other than those as provided in this Presidential Decree, shall be determined by the Chairman of the Committee.
[This Article Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980]
Article 31(Special Cases of Contracts) #
(1) The short-term, long-term, fixed value, and approximate-value contracts pursuant to Article 12 (1) of the Act shall refer respectively to a contract falling under each of the following subparagraphs:
1. Short-term contract: A contract having a period from the execution date to the termination date (hereinafter referred to as the"contract period") which expires within the current fiscal year;
2. Long-term contract: A contract whose contract period spans more than two fiscal years;
3. Fixed-value contract: A contract which is executed after fixing the contract value, by regarding an estimated value determined in advance at the time of contracting as a yardstick; and
4. Approximate-value contract: A contract which is executed at an approximate contract value as it is difficult to fix an estimated contract value before contracting, and whose contract value is fixed in the course of or after the fulfillment of the contract.
(2) In accordance with Article 12 (1) of the Act, a long-term contract shall be executed in the case in which any of the following subparagraphs applies:
1. When it is considered difficult to execute a short-term contract as it may take several years to carry out the contract, in the case where it is required to procure the designated supplies in accordance with Article 4-2 of the Act or it is commissioned to perform the research and the production of a pilot model in accordance with Article 10 (1) of the Act; or
2. When it is regarded inefficient to execute a short-term contract, taking it into consideration a long-term procurement plan and economic conditions, etc.
(3) Articles 8 (2), 37 (1), 50 (3), and 69 of the Enforcement Decree of the Act on Contracts to Which the State is a Party shall apply mutatis mutandis to the execution of a long-term contract for the procurement of defense industry supplies. <Amended by Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Wholly Amended by Presidential Decree No. 14330, Jul. 20, 1994]
Article 32(Types, Contents, Scope, etc. of Contracts) #
(1) Contracts as referred to in Article 12 (1) of the Act shall be executed according to classification made as follows: <Amended by Presidential Decree No. 14330, Jul. 20, 1994>
1. General fixed-value contract: A contract whose value shall be fixed at the time of contracting and the fixed value of which shall be paid to the contractor when the agreed terms and conditions have been fulfilled;
2. Adjustable-unit-price contract: A contract, for a specific supply(ies) which in the last 2 years a previous contract has been executed for it after fixing its estimated value by a cost accounting method, which is executed with an agreement that the contract value shall be determined, within the contract amount allocated by the Minister of National Defense, without newly calculating its cost but by just adjusting the latest contractual unit price by applying a pertinent index of the indexes classified by the basic divisions of producers' prices;
3. Compensating-for-cost-saving contract: A contract which is executed with an agreement that, in the event that substantive cost saving is made thanks to the development of a new technology or technical know-how or the rationalization of business administration during the implementation of the contract, then the amount of saved costs shall be deducted from the contact value and in return certain compensation shall be made within the amount of such saved costs;
4. Incentive fee plus fixed value contract; A contract which, in the event it is expected to attain cost saving by any profit from incentive activity in view of the nature of the contract although its estimated value can be determined at the time of contracting, is executed with an agreement that it shall have the maximum payable contract value and both target cost and target profit determined in advance, and actual payment of the contract value shall be made after the fulfillment of the contract to cover the cost actually incurred plus the target profit and the profit from incentive activity;
5. Midway-fixed-value contract: A contract which, in the event that it is difficult to fix the contract value in view of the nature of the contract at the time of contracting, is executed with an agreement that the contract value shall be determined during the implementation of the contract;
6. Contract without fixing the costs of certain units: A contract which, in the event that it is difficult to fix costs of certain units constituting the contract value at the time of contracting, is executed with an agreement that costs of those units whose costs can be fixed shall be determined in advance and costs of those units which are difficult to fix in advance shall be determined after the fulfillment of the contract;
7. Incentive-fee-plus-costs-settlement contract: A contract which, in the event that it is not possible to fix the contract value but it is required of the contractor to conduct possible replacement of imported commodities with in-country ones or cost-saving activities, is executed with an agreement that the costs of the contact shall be paid to cover the costs actually incurred and the contractor's profit shall be paid to cover the target profit plus the profit from incentive activity;
8. Costs-settlement-and-fixed-profit contract: A contract which is executed with an agreement that the contractors' profit from the fulfillment of the contact shall be fixed at the time of contracting and the costs payable shall be settled at actual expenses after the fulfillment of the contract; and
9. General approximate-value contract: A contract which, in the event that data necessary for the fixing of the contract value are not available at the time of contracting, is executed with an agreement that the contract value shall be determined after the fulfillment of the contract.
(2) In executing contracts in accordance with any of subparagraphs of paragraph (1), fixed value contracts (including a long-term contract) and approximate-value contracts (including a long-term contract) may be executed, according to classification under the provisions of paragraph (1) 1 through 4 and the provisions of paragraph (1) 5 through 9 respectively. <Amended by Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 14330, Jul. 20, 1994>
(3) Notwithstanding Article 70 (3) of the Enforcement Decree of the Act on Contracts to Which the State is a Party, the approximate-value contracts under paragraph (2) which are entered into and completely fulfilled shall be subject to approval by the Chief of the General Staff of the land, sea, or air forces or the commander of a unit under the direct control of the Ministry of National Defense (including the chief of an organ under the direct control of the Ministry of National Defense), except the case as is prescribed by the Minister of National Defense as subject to his approval. <Amended by Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Wholly Amended by Presidential Decree No. 11062, Feb. 26, 1983]
Article 33(Advance Payment, Cost Accounting, etc.) #
(1) The Minister of National Defense shall place on the current year's budget the budgetary amount of money needed for the advance payment and the intermediate payment pursuant to Article 12 (2) of the Act.
(2) Deleted. <by Presidential Decree No. 14330, Jul. 20, 1994>
Article 34(Special Regulations for Manufacture, etc. of Military Fire-arms, Swords and Explosives) #
(1) With regard to the fire-arms, swords and explosives which are under research and development or production for the military purpose in accordance with Article 14 of the Act, the rights, as provided in other Acts and subordinate statutes, on the permission and supervision of the manufacture, importation, transfer, acquisition by transfer, keeping, using, storage, transport, disposal, etc. of them shall be exercised by the Minister of National Defense. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(2) When the Minister of National Defense regards necessary for the fulfillment of a supply contract and for the sake of security and safety with respect to the manufacture, management, etc. by a defense industry enterprise or a research institute of the military firearms, sword and explosives, he may have supervisors or other concerned officials dispatched to a defense industry enterprise or a research institute conduct the inspection of or other necessary measures for the military fire-arms, swords, explosives and other related facilities, or entrust such affairs to the head of a military unit or the chief of an organization designated by him. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(3) The Minister of National Defense may, if specially necessary, determine matters on permission for manufacturing the military firearms, sword, and explosives, and standards for their safe management, and other necessary matters by the Ordinance of the Ministry of National Defense. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
(4) Except as specifically prescribed by paragraphs (1) through (3), the provisions of the Acts and subordinate statutes regulating firearms, swords and explosives shall apply mutatis mutandis to the military firearms, sword and explosives. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 16147, Mar. 3, 1999>
Article 35(Replacement, Supplement, Extension or Relocation of Facilities) #
Necessary matters for the replacement, supplement, extension or relocation of the facilities pursuant to Article 15 (1) of the Act shall be implemented by the Minister of Commerce, Industry and Energy at the request of the Minister of National Defense. <Amended by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
Article 36(Quality Administration, etc.) #
(1) The Minister of National Defense and the Minister of Commerce, Industry and Energy shall consult with each other and determine criteria for each of the following subparagraphs in order to secure a quality assurance system, etc. needed for the quality administration of defense industry supplies. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
1. Organizational system;
2. Documents control;
3. Manufacture control;
4. Purchase control;
5. Inspection, test and test equipment;
6. Control of supplies inconsistent with the standards;
7. Handling, storage and materials control;
8. Quality records; and
9. Other necessary matters needed for quality administration.
(2) Defense industry enterprises and research institutes shall take necessary measures in accordance with the criteria set out in paragraph (1). <Amended by Presidential Decree No. 9717, Jan. 15, 1980; Presidential Decree No. 11491, Aug. 30, 1984>
(3) Deleted. <by Presidential Decree No. 16147, Mar. 3, 1999>
(4) Deleted. <by Presidential Decree No. 14330, Jul. 20, 1994>
(5) Deleted. <by Presidential Decree No. 16147, Mar. 3, 1999>
(6) The Minister of National Defense and the Minister of Commerce, Industry and Energy, through consultation, may dispatch supervisors to a defense industry enterprise or a research institute for the purpose of giving technical guidance on, and conducting the supervision of quality administration of, the production and the research and development of defense industry supplies. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(7) The supervisors pursuant to paragraph (6) may request the management of a defense industry enterprise or a research institute to take a remedial action or other necessary measures on the status of quality administration of defense industry supplies. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 14330, Jul. 20, 1994>
Article 37(Support by Military Arsenal, etc. to Defense Industry) #
(1) When a defense industry enterprise or a research institute wishes to have technical or production support in accordance with Article 17-2 of the Act, it shall submit to the Minister of National Defense through the head of the military arsenal or the military maintenance unit concerned (hereinafter referred to as the "supporting unit") an application for technical or production support describing matters falling under each of the following subparagraphs: <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
1. The contents and period of the support requested; and
2. The particulars of expenses to be borne.
(2) The head of the supporting unit who has received an application pursuant to paragraph (1) shall submit to the Minister of National Defense his opinion on whether or not to render the support, along with the application.
(3) The Minister of National Defense who receives the application for technical or production support shall render support accordingly to the extent that such support shall not cause any impediment to the operation of the supporting unit concerned or the military operation.
Article 38(Stock of Raw Materials) #
(1) The types and quantities of and other necessary matters for the materials that the defense industry enterprises shall keep in stock in accordance with Article 19 of the Act shall be prescribed by the Minister of National Defense. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(2) With respect to the decisions made under paragraph (1), the Minister of National Defense shall issue an order for the stock as determined to the defense industry enterprise. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(3) In accordance with the order under paragraph (2), the Minister of National Defense may grant the defense industry enterprise a certain amount of subsidy which is corresponding to the interest of the funds needed by it for the stock of the materials. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
(4) The defense industry enterprise which has been ordered under paragraph (2) to stock raw materials within one year from the date of receipt of such an order, and, when it fails to stock them within this period, shall report to the Minister of National Defense the cause of the failure and the estimated date of completing the stock. <Newly Inserted by Presidential Decree No. 11491, Aug. 30, 1984>
Article 39(Sale Order) #
The sale order under Article 20 of the Act issued by the Minister of National Defense shall be made in writing. <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
Article 39-2(Consultation, etc. about Production and Purchase Agreement of Defense Industry Supply) #
(1) When anyone other than those belonging to the government organizations intends to obtain approval for executing a contract for the production and purchase of a defense industry supply entered into with a defense industry enterprise in accordance with Article 20-2 of the Act, then he shall file an application for the approval with the Minister of National Defense.
(2) When the Minister of National Defense receives the application, then he shall give approval to the extent that it does not hamper meeting the military requirements, and advise the result of his decision to the applicant and the defense industry enterprise concerned.
[This Article Newly Inserted by Presidential Decree No. 12450, May 12, 1988]
Article 40(Export) #
(1) In granting an export permission pursuant to Article 21 of the Act, the export permission of the major defense industry supplies and the export permission of the general defense industry supplies as provided in Article 4 (3) shall be granted, respectively, by the Minister of National Defense and the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(2) When a defense industry enterprise or a research institute intends to export any technology relating to the production of a defense industry supply, it shall obtain recommendation from the Minister of National Defense.
(3) The scope of the defense industry supplies which may be exported in accordance with Article 21 of the Act and the scope of the technologies in accordance with paragraph (2) shall be determined by the Minister of National Defense.
(4) When defense industry supplies and technologies are exported, respectively, in accordance with paragraphs (1) and (2), and the Minister of National Defense or the Minister of Commerce, Industry and Energy is requested by the government of the purchasing country to provide a contract performance guarantee, a quality assurance guarantee and etc., he may respond to such a request. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(5) A person who desires to conduct as a business the export of major defense industry supplies under Article 21 (2) of the Act shall submit to the Minister of National Defense a report on the export business of major defense industry supplies, together with the documents as prescribed by the Ordinance of the Ministry of National Defense. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
(6) The Minister of National Defense shall, upon the receipt of the report under paragraph (5), issue a certificate of complete report on the export business of major defense industry supplies to the reporter. <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
(7) The cases in which the Minister of National Defense may make an order for the restrictions on or adjustments to the export of major defense industry supplies under Article 21 (3) of the Act shall be as follows: <Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999>
1. Where it is necessary for the maintenance of international peace and safety and the national security;
2. Where it is expected that the export of major defense industry supplies creates diplomatic friction;
3. Where it is necessary for observing a technology introduction agreement made with a foreign nation or an agreement entered into between governments concerning strategic materials export control;
4. Where it is concerned that the national interest might be undermined due to overcompetition between domestic enterprises which export major defense industry supplies; and
5. Where the supplies which have not undergone or have failed in the quality examination are exported.
[This Article Wholly Amended by Presidential Decree No. 12450, May 12, 1988]
Article 40-2(Military Off-set Trade) #
(1) When a military off-set trade is promoted in accordance with Article 21-2 of the Act, the terms and conditions shall be as follows: <Amended by Presidential Decree No. 16147, Mar. 3, 1999>
1. Acquisition of technologies needed for the defense industry;
2. Securing integrated logistic supporting capabilities;
3. Participation in the manufacture of components and parts;
4. Export of defense industry supplies or general supplies;
5. Procurement of foreign maintenance equipment; and
6. Other matters as deemed necessary.
(2) The scope of and other necessary matters for the supplies which are subject to the military off-set trade shall be determined by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 13922, Jul. 1, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 12450, May 12, 1988]
Article 40-3(Control, Circulation of Information, etc. on Technologies) #
(1) Information on science and technologies for the national defense as provided for in Article 21-3 of the Act shall refer to industrial rights such as patents, rights for utility models, etc., a package of technical documents including product specifications, design drawings, quality assurance data, etc., and other various on technical information.
(2) In order to pursue the systematic and integrated control and circulation of information on science and technologies for the national defense under Article 21-3 of the Act, the Minister of National Defense shall perform functions falling under each of the following subparagraphs:
1. Collection, control, study, analysis, assessment and categorization of information on science and technologies for the national defense;
2. Forecast of the future of technologies;
3. Evaluation of the level of technologies at home and abroad and forecast of the trends of technological development;
4. Classification and verification/assessment of core technologies;
5. Establishment of the circulation system of information on the scientific technologies for the national defense; and
6. Publication and dissemination of information on science and technologies for the national defense.
(3) The Minister of National Defense may have the Head of the Agency for Defense Development pursuant to the Agency for Defense Development, for and on behalf of him, perform functions for the systematic and integrated control and circulation of information on science and technologies for the national defense pursuant to paragraph (2).
[This Article Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994]
Article 40-4(Suspension or Closure of Business) #
The approval of the suspension or cessation of business of a defense industry enterprise pursuant to Article 21-4 of the Act shall be effected by the Minister of Commerce, Industry and Energy in consultation with the Minister of National Defense.
[This Article Wholly Amended by Presidential Decree No. 16147, Mar. 3, 1999]
Article 41(Cancellation of Designation of Defense Industry Enterprise) #
(1) The cancellation of designation of a defense industry enterprise pursuant to Article 22 (1) of the Act shall be made by the Minister of Commerce, Industry and Energy at the request of the Minister of National Defense: if the cause of such cancellation is that the defense industry enterprise concerned does not satisfy the facilities criteria among the causes as prescribed in Article 22 (1) 1 of the Act, this shall be determined in consultation with the Minister of National Defense. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(2) When the Minister of Commerce, Industry and Energy is to cancel the designation of a major defense industry enterprise in accordance with paragraph (1), he shall undergo the deliberation of the Deliberation Committee. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 12450, May 12, 1988; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
(3) When the Minister of Commerce, Industry and Energy has cancelled the designation of a defense industry enterprise, he shall give to its management a notification where the cause of such cancellation is described, and withdraw the certificate of designation of the defense industry enterprise. <Amended by Presidential Decree No. 11491, Aug. 30, 1984; Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>
Article 41-2(Cancellation of Designation of Defense Industry Supply) #
(1) The cancellation of designation of the defense industry supply pursuant to Article 22 (2) of the Act shall be made by the Minister of National Defense in consultation with the Minister of Commerce, Industry and Energy. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
(2) The Minister of National Defense shall examine every two years whether or not to cancel designation of all the defense industry supplies.
(3) Deleted. <by Presidential Decree No. 14330, Jul. 20, 1994>
(4) When the Minister of National Defense has cancelled the designation of a defense industry enterprise, then he shall give to the organizations concerned and the defense industry enterprise concerned a notification where the cause of such cancellation is described.
[This Article Newly Inserted by Presidential Decree No. 12450, May 12, 1988]
Article 41-3(Hearing) #
When the Minister of Commerce, Industry and Energy intends to cancel the designation of a defense industry enterprise in accordance with Article 22 (1) of the Act, he shall hold a hearing. <Amended by Presidential Decree No. 15598, Dec. 31, 1997; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994]
Article 42(Termination of Commission of Research Institute) #
(1) The Minister of National Defense may terminate the commission already given to a research institute in the case where any of the following subparagraphs applies: <Amended by Presidential Decree No. 11491, Aug. 30, 1984>
1. When it does not satisfy the security requirements as provided for in Article 8;
2. When it refuses to undertake, or fails to carry out the research and development of a defense industry supply or the production of a pilot model as commissioned, without a justifiable reason; or
3. Other cases, where it does not need to exist as a research institute any longer.
(2) When the Minister of National Defense has cancelled the commission of a research institute, he shall give to its chief a notification where the cause of such cancellation is described, and withdraw the letter of commission of the research institute.
(3) The provisions of Article 41-3 shall apply mutatis mutandis to the cases of paragraph (1). <Newly Inserted by Presidential Decree No. 14330, Jul. 20, 1994>
Article 42-2(Redemption of Unjust Enrichment) #
(1) Where the Minister of National Defense desires to collect both unjustly obtained enrichment and additional dues (hereinafter referred to as "unjust enrichment") under Article 22-2 of the Act, he shall specify in writing the fact of unjust enrichment, the amount and time limit of payment of unjust enrichment, and the methods and period of raising an objection against the imposition of unjust enrichment, and notify its payment.
(2) A person who has been notified under paragraph (1) shall pay the unjust enrichment to the agency as designated by the Minister of National Defense within 30 days from the date when he has been notified.
[This Article Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999]
Article 42-3(Guarantee Regulations) #
(1) Where the Promotion Association desires to establish the defense industry enterprise guarantee fund under Article 22-3 (5) of the Act to transact guarantee business, he shall formulate guarantee regulations and obtain authorization therefor from the Minister of National Defense. This shall also apply to any change in the guarantee regulations.
(2) The guarantee regulations under paragraph (1) shall contain the scope of guarantee, contents of guarantee contract, limit of guarantee, guarantee fees, establishment of a defense industry enterprise guarantee fund operation committee, and other matters necessary for the conduct of the guarantee business.
[This Article Newly Inserted by Presidential Decree No. 16147, Mar. 3, 1999]
Article 43(Fee) #
When the Defense Industry Promotion Association (hereinafter referred to as "Promotion Association") is to obtain approval for the fees in accordance with Article 22-3 (6) of the Act, it shall submit a business plan to the Minister of National Defense. <Amended by Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980]
Article 44(Undertaking by Promotion Association) #
When the Minister of Commerce, Industry and Energy intends to have the Promotion Association, acting on behalf of him, undertake his functions in accordance with Article 22-3 (7) of the Act, he shall consult in advance with the Minister of National Defense about it. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 14330, Jul. 20, 1994; Presidential Decree No. 16147, Mar. 3, 1999>
[This Article Newly Inserted by Presidential Decree No. 9717, Jan. 15, 1980]
Article 45(Enforcement Regulations) #
Necessary matters for the enforcement of this Decree shall be determined either by the Ordinance of the Minister of National Defense or the Ordinance of the Ministry of Commerce, Industry and Energy according to their competence. <Amended by Presidential Decree No. 13870, Mar. 6, 1993; Presidential Decree No. 16147, Mar. 3, 1999>