Article 40(Delegation and entrustment of authority) #
(1) Pursuant to Article 55(2) of the Act, the Minister of Economy and Finance may entrust the administrative authority with the authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, reduce or exempt taxes, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for tax reduction or exemption in free trade zones as provided for in Articles 121-2 and 121-4 of the Act on Restriction on Special Cases concerning Taxation. <Amended on Oct. 1, 2025>
(2) When the administrative authority performs the administrative affairs belonging to the authority entrusted in accordance with paragraph (1), it shall notify the Minister of Economy and Finance of the results thereof. <Amended on Oct. 1, 2025>
(3) "Corporations prescribed by Presidential Decree" in Article 55(3) of the Act means each of the following corporations:
1. The Korea Airports Corporation;
2. The Incheon International Airport Corporation;
3. The Port Authority;
4. Deleted. <Aug. 11, 2011>
(4) The Minister of Trade, Industry and Resources shall delegate the authority held by the administrative authority to conduct the following affairs with respect to the free trade zones in industrial complexes under Article 8(1)1 of the Act to the administrator of every free trade zone administrative agency in accordance with Article 55(3) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2016; Jul. 5, 2022; Jul. 1, 2025; Oct. 1, 2025; Dec. 30, 2025>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Categorization of free trade zones under Article 9 of the Act;
3. Occupancy contracts and modification of the contracts under Article 11 of the Act;
4. Reporting on the completion of construction, etc. of a factory, registration of a factory, issuance of a certificate of factory registration, revocation of registration of a factory, and imposition and collection of administrative fines pursuant to Article 14(2) of the Act;
5. Termination of occupancy contracts under Article 15 of the Act;
6. Notification of occupancy contracts, etc. under Article 16 of the Act;
7. Rental and sale of any State-owned land, factory, etc., and setting and renewal of a rental period under Article 17 of the Act;
8. Deferred payment of the purchase price for any land, factory, etc. and payment of the purchase price in installments under Article 19 of the Act;
9. Reduction or exemption of rents under Article 20 of the Act;
10. Serving notices demanding payment of rents, termination of rental contracts and taking actions to collect rents in arrears under Article 21 of the Act;
11. Receipt, etc. of construction permission and reports under Article 23(3) of the Act;
12. Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental and use under Article 25 of the Act;
13. Acquisition by transfer of any land, factory, etc. under Article 26(1)3 of the Act;
14. Installation, maintenance, management, etc. of control facilities under the provisions of Article 27(1) through (3) of the Act;
14-2. Maintenance of records of the persons and automobiles entering or exiting a free trade zone under Article 27(4) of the Act;
15. Collection of maintenance costs of joint facilities, serving notices demanding the payment of maintenance costs in arrears and dispositions on such cost in arrears under Article 28 of the Act;
16. Public announcement of the occupancy management guidelines and the modification thereof under Article 28-2(2) of the Act;
17. Approval for the shipment of goods, the export or import of which is restricted under Article 32(1) and (3) of the Act;
18. Request for materials about occupant enterprises’ shipments of goods in and out of free trade zones under Article 39(5) of the Act;
19. Holding hearings under Article 54(1) of the Act;
20. The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, grant tax reduction or exemption, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for reduction or exemption of taxes in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Economy and Finance under paragraph (2);
21. Imposition and collection of administrative fines under Articles 70(2), 70(3)1, and 70(4)1 of the Act.
(5) The Ministry of Land, Infrastructure and Transport shall delegate his or her authority to conduct the following affairs with respect to a free trade zone that is linked with or is accessible to any airport and its hinterland provided for in Article 8(1)2 of the Act to the Commissioner of the Seoul Regional Aviation Administration in accordance with Article 55(3) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2016; Jul. 1, 2025; Dec. 30, 2025>
1. Categorization of districts under Article 9 of the Act;
2. Deleted; <Jul. 26, 2016>
3. Deleted; <Jul. 26, 2016>
4. Deleted; <Jul. 26, 2016>
5. Rental and sale of any State-owned land, factory, etc. under Article 17 of the Act;
6. Payment deferral of the purchase price of any land, factory, etc. and payment thereof in installments under Article 19 of the Act;
7. Reduction or exemption of rents under Article 20 of the Act;
8. Serving notices demanding the payment of rents, etc. and taking actions to collect rents in arrears under Article 21 of the Act;
9. Receipt, etc. of construction permission and reports under Article 23 of the Act;
10. Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental, and use under Article 25 of the Act;
11. Deleted; <Jul. 26, 2016>
12. Deleted; <Jul. 26, 2016>
13. Deleted; <Jul. 26, 2016>
14. The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, grant tax reduction or exemption, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for reduction or exemption of taxes in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Economy and Finance under paragraph (2);
15. Imposition and collection of administrative fines under Articles 70(2), 70(3)1, and 70(4)1 of the Act.
(6) The Minister of Land, Infrastructure and Transport shall delegate his or her authority to conduct the following affairs with respect to any free trade zone that is linked with or accessible to any airport and its hinterland provided for in Article 8(1)2 of the Act to the Korea Airports Corporation or the Incheon International Airport Corporation in accordance with Article 55(3) of the Act: <Amended on Jul. 26, 2016>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Occupancy contracts and modification of the contracts under Article 11 of the Act;
3. Termination of occupancy contracts under Article 15 of the Act;
4. Notification of occupancy contracts, etc. under Article 16 of the Act;
5. Transfer of the land, factory, etc., under Article 26(1)3 of the Act;
6. Installation, maintenance, management, etc. of control facilities under the provisions of Article 27(1) through (3) of the Act;
7. Maintenance of records of the persons or automobiles entering or exiting a free trade zone as prescribed in the provisions of Article 27(4) of the Act;
8. Collection, etc., of maintenance costs of joint facilities prescribed in Article 28 of the Act;
9. Public announcement of occupancy management guidelines and modification of such guidelines under Article 28-2(2) of the Act;
10. Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39(5) of the Act;
11. Holding hearings prescribed in Article 54(1) of the Act.
(7) The Minister of Oceans and Fisheries shall delegate his or her authority to conduct the following affairs with respect to the State-owned and privately owned property located in harbors and their hinterlands under Article 8(1)4 of the Act to the head of a regional office of oceans and fisheries in accordance with Article 55(3) of the Act; provided, authority prescribed in subparagraphs 1, 3, 4 through 6 (limited to sale), 9, and 13 through 18 shall be excluded with respect to the property invested in a Port Authority under Article 6 of the Port Authority Act, the property which the relevant Port Authority is permitted to gratuitously borrow, use, or make profit from under Article 27 of that Act, the property directly acquired by the relevant Port Authority, the property on which a local government holds a license to manage harbor facilities under Article 24 of the Harbor Act, and the property managed by the relevant Port Authority designated as a management agency for a Class 1 harbor hinterland complex under Article 66 of that Act: <Amended on Jul. 26, 2016; Jul. 28, 2020; Jul. 5, 2022; Jul. 1, 2025; Dec. 30, 2025>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Categorization of free trade zones under Article 9 of the Act;
3. Occupancy contracts and modification of the contracts under Article 11 of the Act;
3-2. Reporting on the completion of construction, etc. of a factory, registration of a factory, issuance of a certificate of factory registration, revocation of registration of a factory, imposition and collection of administrative fines pursuant to Article 14(2) of the Act;
4. Termination of occupancy contracts under Article 15 of the Act;
5. Notification of occupancy contracts, etc. under Article 16 of the Act;
6. Rental, sale, etc. of any State-owned land, factory, etc. under Article 17 of the Act;
7. Deferred payment of the purchase price of any State-owned land, factory, etc. and payment thereof in installments under Article 19(1) of the Act;
8. Rent reduction or exemption under Article 20 of the Act;
9. Collection of rents, etc., serving notices demanding the payment thereof, dispositions taken to collect rents, etc. in arrears, and termination of rental contracts under Article 21 of the Act;
10. Receipt, etc. of construction permission and reports under Article 23 of the Act;
11. Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental or use under Article 25 of the Act;
12. Acquisition by transfer of any land, factory, etc. under Article 26(1)3 of the Act;
13. Installation, maintenance, management, etc. of control facilities under Article 27(1) through (3) of the Act;
14. Maintenance of records of those who enter or exit a free trade zone or of automobiles under Article 27(4) of the Act;
15. Collection of maintenance costs of joint facilities under Article 28 of the Act;
16. Public announcement of the occupancy management guidelines and the modification thereof under Article 28-2(2) of the Act;
17. Request for materials about occupant enterprises’ shipments of goods in and out of free trade zones under Article 39(5) of the Act;
18. Holding hearings under Article 54(1) of the Act;
19. The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, grant tax reduction or exemption, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for reduction or exemption of taxes in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Economy and Finance under paragraph (2);
20. Imposition and collection of administrative fines under Articles 70(2), 70(3)1, and 70(4)1 of the Act.
(8) The Minister of Oceans and Fisheries shall delegate his or her authority to conduct the following affairs with respect to the State-owned and privately owned property (referring only to the property invested in a Port Authority under Article 6 of the Port Authority Act, the property which the relevant Port Authority is permitted to gratuitously borrow, use, or make profit from under Article 27 of that Act, the property directly acquired by the relevant Port Authority, and the property managed by the relevant Port Authority designated as a management agency for a Class 1 harbor hinterland complex under Article 66 of the Harbor Act) located in harbors and their hinterlands under Article 8(1)4 of the Act to the relevant Port Authority in accordance with Article 55(3) of the Act: <Amended on Jul. 26, 2016; Jul. 5, 2022>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Occupancy contracts and modification of the contracts under Article 11 of the Act;
3. Termination of occupancy contracts under Article 15 of the Act;
4. Notification of occupancy contracts, etc. under Article 16 of the Act;
4-2. Rental of any State-owned land, factory, etc. under Article 17 of the Act;
4-3. Collection of rents, etc., serving notices demanding the payment thereof, dispositions taken to collect rents, etc. in arrears, and termination of rental contracts under Article 21 of the Act;
5. Installation, maintenance, management, etc. of control facilities prescribed in the provisions of Article 27(1) through (3) of the Act;
6. Maintenance of records of the persons and automobiles entering or exiting a free trade zone as prescribed in the provisions of Article 27(4) of the Act;
7. Collection, etc. of maintenance costs of joint facilities prescribed in Article 28 of the Act;
7-2. Public announcement of occupancy management guidelines and of the modification of such guidelines under Article 28-2(2);
8. Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39(5) of the Act;
9. Holding hearings prescribed in Article 54(1) of the Act.
(9) The Minister of Oceans and Fisheries shall delegate his or her authority to conduct the following affairs with respect to the public property owned by a City/Do, which is linked with and accessible to an airport and its hinterland provided for by Article 8(1)4 of the Act, to the Mayor/Do Governor in accordance with Article 55(3) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2016; Jul. 1, 2025; Dec. 30, 2025>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Categorization of free trade zones under Article 9 of the Act;
3. Occupancy contracts and modification of the contracts under Article 11 of the Act;
4. Termination of occupancy contracts under Article 15 of the Act;
5. Notification of occupancy contracts, etc. under Article 16 of the Act;
6. Receipt, etc. of construction permission and reports under Article 23 of the Act;
7. Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental and use under Article 25 of the Act;
8. Acquisition by transfer of any land, factory, etc. under Article 26(1)3 of the Act;
9. Installation, maintenance, management, etc. of control facilities under the provisions of Article 27(1) through (3) of the Act;
9-2. Maintenance of records of the persons and automobiles entering or exiting a free trade zone prescribed in the provisions of Article 27(4) of the Act;
10. Collection of maintenance costs of joint facilities under Article 28 of the Act;
11. Public announcement of the occupancy management guidelines and the modification thereof under Article 28-2(2) of the Act;
12. Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39(5) of the Act;
13. Holding hearings under Article 54(1) of the Act;
14. The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, grant tax reduction or exemption, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for reduction or exemption of taxes in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Economy and Finance under paragraph (2);
15. Imposition and collection of administrative fines under Articles 70(2), 70(3)1, and 70(4)1 of the Act.
(10) The Minister of Oceans and Fisheries shall delegate his or her authority to conduct the affairs falling under the subparagraphs of paragraph (9) with respect to the public property owned by a Si/Gun/Gu, which is linked with or accessible to any airport and its hinterland provided for by Article 8(1)4 of the Act, to the head of the Si/Gun/Gu in accordance with Article 55(3) of the Act. <Amended on Mar. 23, 2013>
(11) Pursuant to Article 55(3) of the Act, the Minister of Oceans and Fisheries shall delegated the following authority with respect to the property on which a local government holds a license to manage harbor facilities under Article 24 of the Harbor Act of the State-owned property located in harbors and their hinterlands under Article 8(1)4 of the Act to the head of a local government granted a license to manage the relevant property: <Added on Jul. 26, 2016; Jul. 28, 2020; Jul. 5, 2022>
1. Administration of free trade zones under Article 8(2) of the Act;
2. Occupancy contracts and modification of the contracts under Article 11 of the Act;
3. Termination of occupancy contracts under Article 15 of the Act;
4. Notification of occupancy contracts, etc. under Article 16 of the Act;
4-2. Rental of any State-owned land, factory, etc. under Article 17 of the Act;
4-3. Collection of rents, etc., serving notices demanding the payment thereof, dispositions taken to collect rents, etc. in arrears, and termination of rental contracts under Article 21 of the Act;
5. Installation, maintenance, management, etc. of control facilities prescribed in the provisions of Article 27(1) through (3) of the Act;
6. Maintenance of records of the persons and automobiles entering or exiting a free trade zone as prescribed in the provisions of Article 27(4) of the Act;
7. Collection, etc. of maintenance costs of joint facilities prescribed in Article 28 of the Act;
7-2. Public announcement of occupancy management guidelines and of the modification of such guidelines under Article 28-2(2);
8. Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39(5) of the Act;
9. Holding hearings prescribed in Article 54(1) of the Act.
[This Article Wholly Amended on Jul. 15, 2011]