Article 31(Restrictions on Participation in Projects for Supporting Promotion of Technological Innovation) #
(1) Where any small and medium entrepreneur, school, institution, or organization that has participated in any project for technological innovation under Article 10 (1) or project for supporting academic-industrial cooperation under Article 11 (1), or any executive officer or employee belonging thereto, or any person in charge of research or researcher not belonging thereto falls under any of the following cases, the Minister of SMEs and Startups may restrict the participation of such person or entity in a project for supporting the promotion of technological innovation within the period of up to five years (10 years for a person whose participation in a task for a national research and development project under Article 11 of the Framework Act on Science and Technology is restricted due to the same cause of participation restriction), and may notify the heads of the relevant central administrative agencies of such participation restriction: Provided, That the period of participation restriction may be reduced in cases falling under subparagraph 1 where the fact is recognized that the research and development has been faithfully conducted: <Amended on Dec. 11, 2012; Mar. 21, 2017; Jul. 26, 2017>
1. Where a project is decided as a failed project or suspended project according to the evaluation conducted by the Minister of SMEs and Startups because the findings of research and development are extremely poor;
2. Where such person or entity divulges or leaks the details of research and development without following proper procedures;
3. Where such person or entity abandons the performance of research and development tasks without good cause;
4. Where such person or entity uses contributions for the purpose other than the designated purposes, or files a false report on the details of use;
5. Where such person or entity files an application for or registers an intellectual property right which is the findings of research and development in the name of an executive officer or employee belonging thereto, or a person in charge of research or researcher not belonging thereto without good cause;
6. Where such person or entity commits misconduct in relation to research, such as forging, altering, or plagiarizing research and development data or the outcomes thereof;
7. Where such person or entity fails or neglects to pay royalties without good cause;
7-2. Where such person or entity fails to pay the amount of project costs to be withdrawn under Article 32, without good cause;
8. Where such person or entity participates in or conducts research and development by fraud or other improper means;
9. Cases prescribed by Presidential Decree where regarding a project for technological innovation under Article 10 (1) and a project for supporting academic-industrial cooperation under Article 11 (1), the Minister of SMEs and Startups violates an agreement into which he or she has entered with a person who performs the relevant project.
(2) Where any activity is performed to use contributed research and development expenses for any purpose, other than research, the Minister of SMEs and Startups may impose a penalty surcharge on the relevant small and medium entrepreneur, school, institution, organization, or an executive officer or employee belonging thereto or a person in charge of research or researcher not belonging thereto within five times the amount used for the relevant purpose, other than research, and collect the surcharge from such person or entity. <Newly Inserted on Dec. 11, 2012; Jul. 26, 2017>
(3) Where a person on whom a penalty surcharge has been imposed pursuant to paragraph (2) fails to pay such surcharge by the deadline for payment, the Minister of SMEs and Startups shall collect the surcharge in the same manner as delinquent national taxes are collected. <Newly Inserted on Dec. 11, 2012; Jul. 26, 2017>
(4) Recognition of the fact of faithfully conducting a research and development activity and standards for reduction of the period of participation restriction under the proviso of paragraph (1), and standards and procedures for evaluating the findings of research and development under subparagraph 1 of that paragraph, specific criteria for the period of restrictions on participation for each reason for restrictions on participation under the subparagraphs of the aforesaid paragraph, and necessary matters concerning the amount of a penalty surcharge based on types, gravity, etc. of offenses on which the penalty surcharge under paragraph (2) is imposed shall be prescribed by Presidential Decree. <Amended on Dec. 11, 2012; Mar. 21, 2017>
[This Article Wholly Amended on Apr. 14, 2011]