Article 1(Purpose) #
The purpose of this Decree is to prescribe matters delegated by the Integrated Energy Supply Act (hereinafter referred to as the "Act") and other matters necessary for enforcing said Act.
Article 2(Classification of and standards for business) #
(1) The business defined in subparagraph 2 of Article 2 of the Act (hereinafter referred to as "business") and the criteria for such business shall be classified as follows:
1. District heating and cooling business: The business of supplying heat or both heat and electricity for heating, hot-water supply, and cooling with a heat production capacity of five million kilocalories or more per hour, exclusive of self consumption;
2. Integrated energy supply business for an industrial complex: The business of supplying heat or both heat and electricity for industrial process to an industrial complex, with a heat production capacity of 30 million kilocalories or more per hour, exclusive of self consumption.
(2) In order for business referred to in paragraph (1) to supply heat and electricity, facilities for producing heat and electricity concurrently shall meet all the following standards; provided, subparagraph 1 shall not apply to the facilities determined and publicly notified by the Minister of Climate, Energy and Environment, such as cogeneration plants using gas as fuel: <Amended on Dec. 30, 2014; Oct. 1, 2025>
1. Heat production capacity shall exceed power generation capacity;
2. Energy efficiency (referring to the ratio of heat and electrical energy output to the energy input) shall be equal to or exceed the standard determined and publicly notified by the Minister of Climate, Energy and Environment.
(3) The method of calculating heat production capacity and power generation capacity referred to in paragraphs (1) and (2) shall be determined by the Minister of Climate, Energy and Environment. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
[This Article Wholly Amended on Jun. 30, 1999]
Article 3 #
Deleted. <Jun. 30, 1999>
Article 4(Submission of data) #
When the Minister of Climate, Energy and Environment intends to formulate or amend a master plan for integrated energy supply under Article 3 of the Act, he or she may request the heads of related agencies or interested parties to submit relevant data. <Amended on Mar. 6, 1993; Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
Article 5(Development projects subject to consultation) #
(1) Development projects which require consultation with the Minister of Climate, Energy and Environment on the feasibility of supplying integrated energy under Article 4 of the Act are as follows: <Amended on Jun. 30, 1999; Dec. 26, 2002; Jun. 30, 2003; Nov. 29, 2003; Sep. 10, 2007; Feb. 29, 2008; Sep. 18, 2008; Nov. 20, 2009; Mar. 30, 2011; Nov. 16, 2011; Mar. 23, 2013; Aug. 11, 2016; Feb. 9, 2018; Oct. 1, 2025>
1. Housing construction projects, including the following:
a. Deleted <Nov. 29, 2003>
b. Housing construction projects or land development projects pursuant to Article 15 of the Housing Act
c. A project implemented to create a complex or urban area with residential functions as an urban development project pursuant to Article 2, Paragraph 1, Subparagraph 2 of the Urban Development Act.
d. Redevelopment project pursuant to Article 2, Paragraph 2, Subparagraph 2 of the Urban and Residential Environment Improvement Act
2. Projects to develop residential land as defined in Article 2, Paragraph 1 of the Land Development Promotion Act.
3. The following projects as industrial complex development projects:
a. Industrial complex development project pursuant to Article 2, Paragraph 9 of the Industrial Location and Development Act
b. Projects to create free trade zones in accordance with Article 4 of the Act on Designation and Operation of Free Trade Zones
c. Complex development project pursuant to Article 31, Paragraph 1 of the Act on Promotion of Small and Medium Enterprises
d. project implemented to create a complex or urban area with industrial functions as an urban development project pursuant to Article 2, Paragraph 1, Subparagraph 2 of the Urban Development Act.
4. Development of tourist destinations and tourist complexes pursuant to Article 2, Paragraphs 6 and 7 of the Tourism Promotion Act.
(2) Deleted <Jun. 30, 1999>
(3) Deleted <Jun. 30, 1999>
(4) Deleted <Jun. 30, 1999>
(5) Deleted <Jun. 30, 1999>
Article 6(Designation and public announcement of areas subject to supply) #
(1) The designation and public announcement of an area to be supplied with integrated energy (hereinafter referred to as "area to be supplied") under Article 5 of the Act shall include the following:
1. The name of an area to be supplied;
2. The purpose of designating an area to be supplied;
3. The location and size of an area to be supplied;
4. The types of business operated in an area to be supplied.
(2) In either of the following cases, the Minister of Climate, Energy and Environment may cancel the designation of an area to be supplied: <Added on Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
1. Where an area was designated as an area to be supplied under Article 5(1)1 or 3 of the Act but no application for the business license has been filed within one year from the date of the designation;
2. Where an area was designated as an area to be supplied under Article 5(1)2 of the Act but the implementation of a development project is likely to be frustrated because no application for the business license was filed before the implementation of such development project.
(3) When the Minister of Climate, Energy and Environment cancels the designation of an area to be supplied under paragraph (2), he or she shall publicly announce the cancellation, without delay. <Added on Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
[Title revised June 30, 1999]
Article 7(Changes in minor matters concerning designation of areas to be supplied) #
Minor matters prescribed by Presidential Decree under the proviso of Article 5(2) of the Act shall be as follows:
1. A change in the name of an area to be supplied;
2. A change in the size of an area to be supplied by not more than 10/100 of the area (if the changed area is not smaller than 30,000 square meters, it shall be deemed 30,000 square meters);
3. A correction of the size of an area to be supplied, for reasons such as an error to an extent not resulting in a change in the location or boundaries of the area.
Article 8(Heat production facilities subject to permission for new establishment) #
(1) A heat production facility subject to permission for new establishment, re-establishment, or expansion under Article 6(1) of the Act shall be as follows: <Amended on Jun. 30, 1999; Nov. 29, 2003; Nov. 28, 2007; Mar. 30, 2011; Dec. 30, 2014; Aug. 11, 2016>
1. Any of the following heat production facilities in an area to be supplied where district heating and cooling business is operated:
a. Boilers and cogeneration plants used in multi-family housing under subparagraph 3 of Article 2 of the Housing Act (excluding multi-household housing; hereinafter referred to as "multi-family housing");
b. Heat production facilities for heating systems used in any building other than residential houses, with a total heat production capacity of at least 300,000 kilocalories per hour;
c. Heat production facilities for cooling systems used in any building other than residential houses if the total floor area of the building is at least 3,000 square meters;
d. Heat production facilities for cooling systems used in any building other than residential houses, with a total heat production capacity of at least 300,000 kilocalories per hour;
2. Boilers used for industrial processes in factories located in an area to be supplied where integrated energy supply business for an industrial complex is operated in the industrial complex;
3. Deleted. <Jun. 30, 1999>
(2) Notwithstanding paragraph (1), no permission shall be required for any of the following cases: <Added on Mar. 30, 2011; Dec. 30, 2014; Jun. 15, 2015; Oct. 1, 2025>
1. Where a heat production facility already existing as at the time of designation and public announcement of an area to be supplied is re-established or expanded;
2. Where a heat production facility using new or renewable energy defined in subparagraph 1 or 2 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy is newly established, re-established, or expanded;
3. Where a heat production facility is newly established, re-established, or expanded in a single-family house, a religious facility, or a school (excluding schools referred to in Article 2 of the Higher Education Act) among educational or research facilities, as referred to in Appendix 1 of the Enforcement Decree of the Building Act;
Article 9(Changes in minor matters concerning permission for new establishment of heat production facilities) #
"Minor matters prescribed by Presidential Decree" in the proviso of Article 6(2) of the Act shall be as follows: <Amended on Mar. 30, 2011>
1. Reducing the capacity of a facility;
2. Increasing the capacity of a facility by not more than 10/100 of permitted capacity;
3. Relocating a facility within the premises of the same building;
4. Minor repair for maintaining and managing a facility.
Article 10 #
Deleted. <Jun. 30, 1999>
Article 11(Support for business entities) #
(1) If the Minister of Climate, Energy and Environment recognizes the appropriateness of integrated energy supply after consultation under Article 4 of the Act, he or she may request a person who implements a development project to secure a building site required for establishing supply facilities. <Amended on Mar. 6, 1993; Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
(2) Upon receiving a request to secure a building site under paragraph (1), a person who implements a development project shall reflect such request in the relevant land use plan.
[Title revised June 30, 1999]
Article 12(Determination and public notice of upper limits of charges) #
(1) When the Minister of Climate, Energy and Environment intends to determine upper limits of charges under Article 17(2) of the Act (hereinafter referred to as "upper limits of charges"), he or she shall publicly notify the upper limits, clearly stating the upper limits, business subject to such upper limits, and other necessary matters. <Amended on Feb. 29, 2008; Oct. 20, 2008; Mar. 23, 2013; Oct. 1, 2025>
(2) If the Minister of Climate, Energy and Environment deems it necessary to determine upper limits of charges, he or she may request related agencies, related experts and business entities, etc. to provide necessary materials and opinions and assist him or her otherwise. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
(3) Deleted. <Oct. 20, 2008>
[This Article Wholly Amended on Jun. 30, 1999]
Article 13 #
Deleted. <Oct. 20, 2008>
Article 13-2 #
Deleted. <Jul. 29, 2025>
Article 13-3 #
Deleted. <Jul. 29, 2025>
Article 14(Order to improve business operation method) #
(1) When the Minister of Climate, Energy and Environment intends to issue an order to improve business methods, etc. under Article 20 of the Act, he or she shall notify the relevant business entity, clearly stating the following matters: <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
1. Details of the business operation method, etc. to be improved;
2. Directions for improvement;
3. The deadline for complying with the order;
4. Other matters deemed necessary to improve the business operation method, etc.
(2) Before issuing an improvement order under paragraph (1), the Minister of Climate, Energy and Environment shall provide the relevant business entity with an opportunity to present his or her opinion, within a specified period of at least 10 days. <Amended on Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
[This Article Wholly Amended on Jun. 30, 1999]
Article 15 #
Deleted. <Jun. 30, 1999>
Article 16 #
Deleted <Jun. 30, 1999>
Article 17 #
Deleted. <Mar. 30, 2011>
Article 17-2(Scope of persons in special relationship) #
"Person in the special relationship with him or her as prescribed by Presidential Decree" in Article 32-2(1) of the Act means a person falling under any subparagraph of Article 16 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act. <Amended on December 28, 2021>
[This Article Added on Jan. 18, 2010]
Article 18 #
Deleted. <Mar. 30, 2011>
Article 19 #
Deleted <March 30, 2011>
Article 20 #
Deleted <March 30, 2011>
Article 21(Exercise of the state's rights as shareholder) #
The State's rights as a shareholder over stocks it holds shall be exercised by the Minister of Climate, Energy and Environment. <Amended on Dec. 23, 1994; Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
Article 22(Research and technical development) #
(1) The Korea District Heating Corporation under Article 29 of the Act (hereinafter referred to as the "Corporation") shall formulate a plan for research and technical development under Article 41(1)4 of the Act (hereinafter referred to as "research and technical development") every year, subject to resolution by its board of directors; and shall submit the plan to the Minister of Climate, Energy and Environment before the beginning of each fiscal year. The same shall also apply where the Corporation amends a plan for research and technical development. <Amended on Mar. 6, 1993; Jun. 30, 1999; Feb. 29, 2008; Mar. 30, 2011; Mar. 23, 2013; Oct. 1, 2025>
(2) If a plan for research and technical development under paragraph (1) is deemed inappropriate, the Minister of Climate, Energy and Environment may request the Corporation to adjust the plan. <Amended on Mar. 6, 1993; Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Oct. 1, 2025>
(3) A plan for research and technical development under paragraph (1) shall contain the following:
1. Tasks of research and technical development;
2. Methods and the timing of investment or contribution;
3. The amount of investment or contribution;
4. Other matters deemed necessary for research and technical development.
(4) The institutions to which the Corporation may contribute funds for performing tasks of research and technical development under paragraph (3)1 shall be as follows: <Amended on Jan. 29, 1999>
1. Corporations in which the Corporation has invested;
2. The Korea Energy Economics Institute established pursuant to Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;
3. Specific research institutes under Article 2 of the Specific Research Institutes Support Act.
(5) Notwithstanding paragraph (1), if the reserve for business expansion falls short of 50/100 of paid-in capital, the President of the Corporation need not formulate a plan for research and technical development under paragraph (1).
(6) Other details necessary for research and technical development shall be determined by the Corporation.
Article 23 #
Deleted. <Mar. 30, 2011>
Article 24(Transfer of earned surplus reserve to capital) #
Matters concerning the transfer of earned surplus reserve to capital under Article 42(3) of the Act shall be subject to resolution of a general meeting of shareholders.
Article 25 #
Deleted. <Mar. 30, 2011>
Article 26 #
Deleted <March 30, 2011>
Article 27 #
Deleted <March 30, 2011>
Article 27-2(Rent for public land) #
The manager of public land may exempt a user from paying rent for using it or partially reduce such rent as he or she deems necessary for public interest in granting permission to use public land under Article 45(1) of the Act, as prescribed by relevant statutes or regulations.
[This Article Added on Jun. 30, 1999]
Article 28(Period of consultation) #
The period prescribed by Presidential Decree under the latter part of Article 49(2) of the Act shall be 30 days; provided, the same shall not apply where other statutes or regulations provide the period of consultation otherwise.
Article 29 #
Deleted <Dec. 31, 1997>
Article 30(Entrustment of authority) #
Pursuant to Article 53 of the Act, the Minister of Climate, Energy and Environment shall entrust the following authority to the Korea Energy Agency established under Article 45 of the Energy Use Rationalization Act (hereinafter referred to as the "Korea Energy Agency"): <Amended on Oct. 1, 2025>
1. Review of documents requesting consultation on the feasibility of integrated energy supply under Article 4 of the Act;
2. Review of documents requesting business license or change thereof under Article 9(1) of the Act;
3. Review of details of a report on supply regulations or modification thereof under Article 17(1) of the Act;
4. Review of construction plans to install or alter supply facilities under Article 22(1) of the Act;
5. Inspection of supply facilities under the main clause of Article 23(1) and Article 23(3) of the Act;
6. Permission for temporary use of supply facilities under Article 23(2) of the Act.
[This Article Wholly Amended on Jul. 29, 2025]
Article 31(Reporting) #
When the Korea Energy Agency performs administrative work with the authority entrusted under Article 30, he or she shall report the result of performance to the Minister of Climate, Energy and Environment, as prescribed by Decree of the Ministry of Climate, Energy and Environment. <Amended on Mar. 6, 1993; Jun. 30, 1999; Feb. 29, 2008; Mar. 23, 2013; Jul. 24, 2015; Jul. 29, 2025; Oct. 1, 2025>
Article 31-2(Processing of sensitive and personally identifiable information) #
(1) The Minister of Climate, Energy and Environment may process information constituting criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers under subparagraph 1 of Article 19 of that Decree, where it is inevitable to perform administrative work for verifying grounds for disqualifications of an applicant for an integrated energy supply business license under Article 10 of the Act. <Amended on Jul. 29, 2025; Oct. 1, 2025>
(2) A person who received a business license under Article 9 of the Act may process documents containing resident registration numbers referred to in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, where it is inevitable to perform administrative work concerning the reduction of any charge reported to the Minister of Climate, Energy and Environment under Article 17 of the Act or other charges imposed under supply regulations concerning terms and conditions of supply. <Amended on Oct. 1, 2025>
[This Article Added on Aug. 6, 2014]
[Title Amended on Jul. 29, 2025]
[Previous Article 31-2 Moved to Article 31-3 <Aug. 6, 201>]
Article 31-3(Re-examination of regulation) #
(1) The Minister of Climate, Energy and Environment shall examine the appropriateness of the scope of heat production facilities subject to permission for new construction, re-establishment, or expansion in an area to be supplied under Article 8 every three years, counting from January 1, 2014 (referring to the period that ends on the day before January 1 of every third year); and shall take measures, such as making improvements. <Amended on Dec. 9, 2014; Oct. 1, 2025>
(2) The Minister of Climate, Energy and Environment shall examine the appropriateness of the period set for submitting opinions under Article 14(2) every two years, counting from January 1, 2015 (referring to the period that ends on the day before January 1 of every second year); and shall take measures, such as making improvements. <Added on Dec. 9, 2014; Oct. 1, 2025>
[This Article Wholly Amended on Dec. 30, 2013]
[Moved from Article 31-2 <Aug. 6, 2014>]
Article 32(Criteria for imposing administrative fines) #
The criteria for imposing administrative fines under Article 60(1) of the Act shall be as provided for in Appendix 3.
[This Article Wholly Amended on Jan. 18, 2010]