영문법령 불러오는 중…

ENFORCEMENT DECREE OF THE ACT ON SPECIAL CASES CONCERNING THE REGULATION OF REGULATION-FREE SPECIAL ZONES AND SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT — 법갈피

영문법령 / ENFORCEMENT DECREE OF THE ACT ON SPECIAL CASES CONCERNING THE REGULATION OF REGULATION-FREE SPECIAL ZONES AND SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT

ENFORCEMENT DECREE OF THE ACT ON SPECIAL CASES CONCERNING THE REGULATION OF REGULATION-FREE SPECIAL ZONES AND SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT

대통령령타법개정시행 2025-10-01중소벤처기업부 · 제35807호 · 공포 2025-10-01

한국어 원본 국가법령정보센터 원문 ↗

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development and matters necessary for the enforcement thereof.

Article 2(Definitions) #

(1) "Project prescribed by Presidential Decree which is related to ... regional strategic industry" in subparagraph 14 of Article 2 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development (hereinafter referred to as the "Act") means a project approved and publicly notified by the Minister of SMEs and Startups in accordance with the procedures prescribed in Article 75(3) and (4) of the Act to foster a regional strategic industry suitable for regional characteristics. <Amended on Jul. 20, 2021>

(2) "Cases where it is not clear whether said special cases are subject to regulation as prescribed by Presidential Decree" in subparagraph 16 of Article 2 of the Act means cases where it is impossible to apply for a special case for demonstration under Article 86(1) of the Act due to the difference of opinions over whether the special cases are subject to regulation among the head of a relevant central administrative agency and any of the following persons having jurisdiction over a regulation-free special zone (hereinafter referred to as "Mayor/Do Governor, etc. of a non-Seoul metropolitan area"): <Added on Jul. 20, 2021; Jul. 30, 2024>

1. A Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or a Special Self-Governing Province Governor of a local government of an area other than the Seoul metropolitan area (hereinafter referred to as "Seoul metropolitan area") under subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act;

2. The head of a Si (including an administrative Si under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City)/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) of a local government of a non-Seoul metropolitan area;

3. The head of a special local government under Article 199 of the Local Autonomy Act (excluding where the Seoul metropolitan area is included in local governments constituting a special local government; hereafter the same shall apply in Article 40(2)3).

Article 3(Requests for designation of special economic zones for specialized regional development) #

(1) The head of a Si (the head of a Si includes the head of an administrative city under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City and is deemed to include the Sejong Special Self-Governing City Mayor under the Special Act on the Establishment of Sejong Special Self-Governing City; hereinafter the same shall apply) or Gun/Gu who intends to request designation of a special economic zone for specialized regional development under Article 5(1) of the Act (hereinafter referred to as "specialized zone"), shall submit such request to the Minister of SMEs and Startups along with the following documents. The same shall also apply to cases where such request is submitted jointly by the head of a Si/Gun/Gu and the head of another local government pursuant to Article 5(2) of the Act: <Amended Jul. 30, 2024>

1. A plan for a special economic zone for specialized regional development under Article 9(1) of the Act (hereinafter referred to as "specialized zone plan");

2. Documents necessary for consultation on strategic environmental impact assessment under Article 10 of the Act (limited to cases where applicable);

3. Other data requested by the Minister of SMEs and Startups, as those deemed necessary for the designation of a specialized zone.

(2) If deemed necessary, the Minister of SMEs and Startups may request the head of a local government [(referring to a Si/Gun/Gu, where a request is jointly filed by the Special Metropolitan City, a Metropolitan City, a Do, or a Special and Self-Governing Province (hereinafter referred to as "City/Do") and a Si (a Si includes an administrative city under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City and is deemed to include the Sejong Special Self-Governing City under the Special Act on the Establishment of Sejong Special Self-Governing City; hereinafter the same shall apply) or Gun/Gu (referring to an autonomous Gu; hereinafter the same shall apply) under its jurisdiction pursuant to Article 5(2) of the Act, and referring to the competent local government where an application is jointly filed otherwise; hereinafter referred to as "requesting local government"] that has filed a request for the designation of a specialized zone to supplement or additionally submit the matters to be included in the specialized zone plan.

(3) A Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor or Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") shall, when intending to submit his or her opinions on a specialized zone plan to the Minister of SMEs and Startups pursuant to Article 5(4) of the Act or to a committee on special economic zones for specialized regional development (hereinafter referred to as the "Specialized Zone Committee") pursuant to Article 12 of the Act, submit them within 30 days from the date he or she is notified of such specialized zone plan by the head of Si/Gun/Gu.

Article 7(Designation of specialized zones) #

(1) Upon receipt of an application for designation of a specialized zone, the Minister of SMEs and Startups shall decide within 90 days whether to designate a specialized zone and notify his or her decision to head of the relevant Si/Gun/Gu and the Mayor/Do Governor; provided, the period may be extended only once to the extent of 45 days where there is any unavoidable cause.

(2) The period prescribed in paragraph (1) shall not include the time taken pursuant to the proviso of paragraph (3) and to Article 3(2) and the period requested by the head of the requesting local government for postponing the deliberations and resolutions of the Specialized Zone Committee.

(3) When requested by the Minister of SMEs and Startups to have consultation pursuant to Article 11(1) of the Act, the head of each relevant administrative agency shall submit his or her opinions within 20 days from the date he or she receives such request; provided, where there is any unavoidable cause, the period may be extended in consultation with the Minister of SMEs and Startups only once to the extent of 10 days.

(4) The head of each relevant administrative agency shall make his or her best effort to have the matters treated as special cases for regulation, which are included in the specialized zone plans pursuant to Article 9(1)5 of the Act, reflected unless such matters fall into any of the following cases:

1. Where such matters treated as special cases for regulation are in violation of the relevant statutes or regulations;

2. Where such matters treated as special cases for regulation will obviously cause adverse effects;

3. Where such matters treated as special cases for regulation are likely to severely impair the purpose of legislation of the relevant statutes or regulations.

(5) When the head of a relevant administrative agency disagrees to the matters treated as a special case for regulation included in the specialized zone plan pursuant to Article 9(1)5 of the Act or intends to submit an opinion to the effect that he or she conditionally agrees thereto, he or she shall present the grounds therefor in detail.

(6) Upon designating a specialized zone pursuant to Article 11(1) of the Act, the Minister of SMEs and Startups shall publish notice of the following matters in the Official Gazette (including posting on the Internet; hereinafter the same shall apply) pursuant to paragraph (2) of that Article:

1. The name, location and size of the specialized zone;

2. The purpose and period of designation of the specialized zone;

3. Details of the specialization project;

4. The name and address of the specialization project operator (where the project operator is a corporation, referring to the name and address of the corporation and the name and address of its representative; hereinafter the same shall apply);

5. Implementation period of the specialization project, financing methods, and methods of implementation (in cases of implementation in phases, referring to the implementation period, financing methods and methods of implementation of each phase);

6. Matters concerning special cases of regulation;

7. Topographical maps or land registration maps showing the areas of specialized zone;

8. Methods of perusing relevant materials;

9. Other matters that the Specialized Zone Committee deems necessary.

Article 12(Organization and operation of Working Committee) #

(1) The Working Committee prescribed in Article 12(6) of the Act (hereinafter referred to as the "Working Committee") shall be comprised of not more than 20 members including one chairperson whom the Minister of SMEs and Startups appoints from among the public officials belonging to the Ministry of SMEs and Startups.

(2) From among the members of the Senior Executive Service of the Ministry of Economy and Finance, the Ministry of Education, the Ministry of Justice, the Ministry of National Defense, the Ministry of the Interior and Safety, the Ministry of Culture, Sports and Tourism, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade and Industry, the Ministry of Health and Welfare, the Ministry of Climate, Energy and Environment, the Ministry of Land, Infrastructure and Transport, the Ministry of Oceans and Fisheries, the Ministry of SMEs and Startups, the Ministry of Food and Drug Safety, the Korea Forest Service, and the Korea Fair Trade Commission, the heads of the relevant central administrative agencies shall nominate each one of the members of the Working Committee. <Amended on Oct. 1, 2025>

(3) The Working Committee shall review the following matters:

1. Bills referred to the meetings of the Specialized Zone Committee;

2. Matters for which adjusting opinions between the relevant administrative agencies is necessary in connection with specialized zones;

3. Matters the chairperson of the Working Committee refers to in meetings in connection with specialized zones.

(4) Articles 9 (excluding paragraphs (2) and (7) of that Article) through 11 pertaining to the operation, etc. of the Specialized Zone Committee shall apply mutatis mutandis to the operation of the Working Committee. In such cases, "Specialized Zone Committee" shall be construed as "Working Committee," "chairperson of the Specialized Zone Committee" as "chairperson of the Working Committee," "members of the Senior Executive Service of the relevant central administrative agencies" as "public officials of the relevant central administrative agencies (excluding the Ministry of Land, Infrastructure and Transport and the Korea Forest Service)," and "Mayors/Do Governors and the heads of requesting local governments" as "public officials belonging to Cities/Dos and public officials belonging to requesting local governments."

Article 13(Disqualification of, challenge to and refrainment by members of Specialized Zone Committee) #

(1) Any member of the Specialized Zone Committee who falls under any of the following cases shall be disqualified from the deliberations and resolutions on the relevant agenda:

1. Where the member or his or her current or former spouse becomes a party (where a party is a corporation, organization, etc., including an executive officer thereof; hereafter the same shall apply in this subparagraph and subparagraph 2) to the relevant agenda or is related thereto as a joint holder of any right or liability;

2. Where the member is or was a relative of a party to the relevant agenda;

3. Where a member has given testimony, made statement, conducted counseling, provided services, conducted investigation, or made appraisal with respect to the relevant agenda;

4. Where the member worked at a corporation, organization, etc. to which a party to the relevant agenda item belongs within the last three years;

5. Where the member or a corporation, organization, etc. to which the member belongs is or was an agent of a party to the relevant agenda item.

(2) If any ground exists for which it would be difficult to expect the impartial deliberation and resolution from any member, a party to the relevant agenda may file a request to challenge him or her with the Specialized Zone Committee, and the Specialized Zone Committee shall make a decision on such request by its resolution. In such cases, the member subjected to such request for challenge shall not participate in the resolution.

(3) A member shall, if falling under any cause for disqualification referred to in subparagraphs of paragraph (1), voluntarily refrain from the deliberation and resolution of the relevant agenda.

(4) Where a member of the Specialized Zone Committee commissioned under Article 12(5) of the Act falls under any of the following cases, the chairperson of the Specialized Zone Committee may dismiss such member from his or her office:

1. If the council member is unable to continue to perform his or her duties due to a mental or physical disorder;

2. If the council member is found to have committed irregularities in connection with his or her duties;

3. Where a committee member is found unfit for office due to neglecting any of his or her duties, or due to indecent conduct or any other reason;

4. Where he or she admits it is difficult for him or her to perform his or her duties;

5. Where he or she fails to refrain from his or her duty despite the case falling under any subparagraph of paragraph (1).

(5) If any commissioned member is dismissed pursuant to paragraph (4) or if any vacancy arises among commissioned members, a new member shall be commissioned.

Article 15(Cancellation of designation of specialized zones) #

(1) "Any insignificant matter prescribed by Presidential Decree" in the proviso, with the exception of its subparagraphs, of Article 16(2) of the Act means the following matters:

1. The change of the name of a specialized zone resulting from the change, etc. of the administrative district;

2. The change of less than 10/100 of the size of a specialized zone;

3. The change of the detailed plan of a specialization project within the scope not changing the purpose of the specialization project;

4. The change of the name and address of a specialization project operator.

(2) "Cases ... prescribed by Presidential Decree" in Article 16(2)8 of the Act means any of the following: <Amended on Jul. 30, 2024>

1. Where a specialized zone is designated based on a specialization plan proposed by a private enterprise, etc. by fraud or other improper means;

2. Where canceling the designation of a specialized zone or changing the details of a specialized zone plan is particularly necessary for public interest due to circumstantial changes not anticipated at the time of designating the specialized zone;

3. Where the rank in the evaluation of achievements from operating specialized zones prescribed in Article 24 of the Act and in Article 17(3) of this Decree is within the lower 5/100 on at least three occasions.

(3) The Minister of SMEs and Startups shall, when canceling the designation of a specialized zone partially or changing the details of a specialized zone plan pursuant to Article 16(2) of the Act, publish notice of the grounds therefor and the matters prescribed in the subparagraphs of Article 7(6) in the Official Gazette; provided, when canceling the designation of a specialized zone in whole, he or she shall publish notice of the grounds for the cancellation and the matters prescribed in subparagraphs 1 through 3 of Article 7(6) in the Official Gazette.

(4) "Period prescribed by Presidential Decree" in Article 16(3) of the Act means two years.

(5) The Minister of SMEs and Startups shall, when canceling the designation of a specialized zone pursuant to Article 16 of the Act, notify the heads of the relevant Sis/Guns/Gus and competent Metropolitan City Mayors/Do Governors thereof without delay.

(6) The head of each Si/Gu/Gun shall, when notified pursuant to paragraph (5), take measures to make the details of the notice available to the residents for perusal for at least 14 days.

Article 26(Special cases concerning the State Forest Administration and Management Act) #

(1) State forests available to be sold or exchanged pursuant to Article 39(1) of the Act shall be any of the following state forests among non-permanent state forests prescribed in Article 16(1)2 of the State Forest Administration and Management Act:

1. State forests recognized to be necessary to implement urban/Gun planning prescribed in subparagraph 2 of Article 2 of the National Land Planning and Utilization Act, specialized zone plans and other projects of the State or local governments;

2. State forests, the sale or exchange of which is deemed unavoidable for the purpose of forest policies.

(2) Standards for loaning or granting the use of state forests prescribed in Article 39(2) of the Act are as follows:

1. The use of state forests shall not be prohibited or restricted or use plans for state forests shall not be made final and conclusive in accordance with the Creation and Management of Forest Resources Act, the Forestry Culture and Recreation Act or other statutes or regulations;

2. The loaning of state forests for livestock farming shall be limited to cases where a greenland creation permit is obtained under the Grassland Act, and the loaning of state forests for breeding stock farming shall be limited to cases where the registration of breeding stock business prescribed by the Livestock Industry Act is filed;

3. State forests shall not be used for livestock farming or breeding stock farming in special measures areas designated and publicly notified pursuant to Article 38(1) of the Framework Act on Environmental Policy;

4. State forests shall not be used for the purpose of installing facilities for tourist accommodation business or tourist-use facility business prescribed in Article 3(1)2 and 3 of the Tourism Promotion Act;

5. Where taking measures is necessary in accordance with other statutes or regulations, such as permission, authorization, approval, designation, registration, reporting or consultation, such measures shall be taken.

Article 39(Special cases concerning the Installation and Utilization of Sports Facilities Act) #

(1) "Any insignificant matters prescribed by Presidential Decree" in the proviso of Article 66(1) of the Act means the following matters:

1. Where a person who has obtained approval for a business plan is a juristic person, matters concerning the change of the name and address of the representative thereof (excluding cases of succession to approval of business plan prescribed in Article 27(3) of the Installation and Utilization of Sports Facilities Act);

2. Matters concerning the change of trade names;

3. Matters concerning the change of installation of facilities within the following scopes without changing the size and demarcation of land approved for the business plan:

a. In cases of essential facilities prescribed in Article 27(2) of the Installation and Utilization of Sports Facilities Act: Extension, alteration or change within 30/100 of the size (in cases of buildings, referring to the gross floor area) of each facility the business plan of which is approved, or of each facility registered;

b. In cases of facilities other than the essential facilities prescribed in Article 27(2) of the Installation and Utilization of Sports Facilities Act: The extension, alteration, relocation, reconstruction or change of facilities the business plan of which is approved, or of facilities registered;

4. Matters concerning the change of expected number of subscribing members and registration fees;

5. Matters concerning the change of scheduled commencement date of installation work or scheduled completion date of construction of business facilities of registered sports facility business.

(2) "Insignificant revision to any registered matter prescribed by Presidential Decree" in the proviso of Article 66(2) of the Act means the following matters:

1. Matters concerning the change of sport facility business operators resulting from succession to sports facility business prescribed in Article 27 of the Installation and Utilization of Sports Facilities Act;

2. Matters concerning improvements and repair within the scope not changing the land area of registered sports facility business and the scale of business facilities;

3. Matters concerning the change of purpose of the use of facilities of skiing ground business to other purpose without changing such facilities during the seasonal suspension of business.

(3) "Facilities above the size prescribed by Presidential Decree" in Article 66(3) of the Act means facilities prescribed in Article 21(1) of the Enforcement Decree of the Installation and Utilization of Sports Facilities Act.

(4) "Period prescribed by Presidential Decree" in Article 66(3) of the Act means the period remaining after the exclusion of the lapse of time taken until conditional registration from the period for installing facilities for registered sports facility business prescribed in Article 16 of the Installation and Utilization of Sports Facilities Act.

(5) Where a person who has filed a conditional registration pursuant to Article 66(3) of the Act satisfies all of the conditions before filing the registration of change prescribed in paragraph (2) of that Article.

Article 40(Filing applications for designation of regulation-free special zones) #

(1) To apply for designation of a regulation-free special zone pursuant to Article 72(1) of the Act, a Mayor/Do Governor, etc. of a non-Seoul metropolitan area shall submit to the Minister of SMEs and Startups an application for designation of a regulation-free special zone accompanied by the following documents, as prescribed by Decree of the Ministry of SMEs and Startups: <Amended on Jul. 20, 2021; Jul. 7, 2023; Jul. 7, 2024>

1. Documents necessary for consulting on strategic environmental impact assessment under Article 10 of the Act (limited to cases where applicable);

2. A plan for the regulation-free special zone under Article 74(1) of the Act (hereinafter referred to as "plan for a regulation-free special zone");

3. Results of hearing opinions of residents, enterprises, and the Committee for Decentralization and Balanced Development under Article 67 of the Special Act on Local Autonomy, Decentralization and Balanced Regional Development under Article 74(2) of the Act; provided, where there have been public announcements and other procedures for gathering consensus pursuant to other statutes or regulations under Article 74-2 of the Act, the outcomes thereof shall be submitted;

4. Topographical maps or land registration maps showing the regulation-free special zone;

5. Other documents requested by the Minister of SMEs and Startups, as those deemed necessary for the designation of a regulation-free special zone.

(2) Where any of the following local governments (hereinafter referred to as "City/Do, etc. in a non-Seoul metropolitan area") intends to jointly apply for designation of a regulation-free special zone, the Mayor/Do Governor, etc. of the relevant non-Seoul metropolitan area shall jointly formulate and submit a plan for the regulation-free special zone to the Minister of SMEs and Startups: <Amended on Jul. 30, 2024>

1. A metropolitan city, a Special Self-Governing City, a Do, or a Special Self-Governing Province, excluding the Seoul metropolitan area;

2. A Si (including an administrative Si under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City)/Gun/Gu, excluding the Seoul metropolitan area;

3. A special local government under Article 199 of the Local Autonomy Act.

(3) Where the Minister of SMEs and Startups deems it necessary to supplement the contents of an application for designation of a regulation-free special zone, he or she may request to supplement it, fixing a reasonable period.

Article 42(Establishment of plans for regulation-free special zones) #

(1) Where a Mayor/Do Governor, etc. of a non-Seoul metropolitan area intends to formulate a plan for a regulation-free special zone, he or she shall consult in advance with the Minister of SMEs and Startups and the Committee for Decentralization and Balanced Development under Article 67 of the Special Act on Local Autonomy, Decentralization and Balanced Regional Development.<Amended on Jul. 7, 2023; Jul. 30, 2024>

(2) The name of a regulation-free special zone under Article 74(1)1 of the Act shall be determined by a Mayor/Do Governor, etc. of a non-Seoul metropolitan area who intends to obtain designation of a regulation-free special zone, using the word "regulation-free special zone". In such cases, it shall be determined to be distinguished from the "specialized zone" under Article 11 of the Act, the "special tourist zone" under Article 70 of the Tourism Promotion Act, and the "special research and development zone" under Article 4 of the Special Act on Promotion of Special Research and Development Zones, etc. <Amended on Jul. 30, 2024>

(3) "Matters prescribed by Presidential Decree" in Article 74(1)10 of the Act means the following: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. Period of designation of the regulation-free special zone;

2. Period of implementation of innovative projects, strategic industries, etc.;

3. Objectives of the policy and performance indicators of the relevant regulation-free special zone;

4. Methods and plans for financing projects promoted in the regulation-free special zone;

5. Matters concerning attraction of enterprises and promotion of investment in the regulation-free special zone;

6. Matters concerning support for innovative projects, strategic industries, etc. in a City/Do, etc. in a non-Seoul metropolitan area;

7. Measures for the prevention of acts which are detrimental to the lives and safety of the people or which significantly harm the environment, and for the safe protection, etc. of personal information;

8. A land use plan for the regulation-free special zone (limited to cases where establishment of such plan is necessary);

9. A location map, topographical map, or cadastral map to identify the size, location, etc. of the regulation-free special zone;

10. Other matters determined and publicly notified by the Minister of SMEs and Startups, as those necessary for the application, etc. for designation of a regulation-free special zone.

(4) The Minister of SMEs and Startups may provide a Mayor/Do Governor, etc. of a non-Seoul metropolitan area with support necessary for establishing plans for regulation-free special zones. <Amended on Jul. 30, 2024>

Article 44(Designation of regulation-free special zones) #

(1) Where the Minister of SMEs and Startups receives an application for designation of a regulation-free special zone, he or she shall determine whether to approve the plan for a regulation-free special zone and whether to designate a regulation-free special zone within 90 days; provided, the period taken to supplement the contents of the application under the proviso of Article 75(2) of the Act and Article 40(3) of this Decree shall not be included in the relevant period.

(2) In any of the following cases, the Minister of SMEs and Startups may return an application for designation of a regulation-free special zone:

1. Where the applicant fails to submit any of the documents set forth in subparagraphs of Article 40(1) or to comply with a request for supplementation made pursuant to paragraph (3) of that Article;

2. Where the applicant fails to take procedures necessary for filing an application for designation of a regulation-free special zone under Article 74(2) of the Act and Articles 42(1) and 43 of this Decree.

(3) Upon designating a regulation-free special zone under Article 75(3) of the Act, the Minister of SMEs and Startups shall publicly notify the following matters in the Official Gazette pursuant to paragraph (4) of that Article: <Amended on Dec. 19, 2023>

1. The name, location and area of the regulation-free special zone;

2. The purpose and period of designation of the regulation-free special zone;

3. Details of innovative project, strategic industry, etc.;

4. The name and address of the project implementer of the regulation-free special zone;

5. Implementation period, financing methods, and implementation methods (in cases of implementation in phases, referring to the period of implementation, financing methods and methods of implementation of each phase) of the innovative projects, strategic industries, etc.;

6. Matters concerning special cases of regulation, etc. applicable to the regulation-free special zone;

7. Location maps or topographical maps showing the regulation-free special zone;

8. Methods of perusing relevant materials;

9. Other matters that the Committee on Regulation-Free Special Zones deems necessary.

(4) Except as provided in paragraphs (1) through (3), details concerning designation of regulation-free special zones shall be determined and publicly notified by the Minister of SMEs and Startups.

Article 47(Composition and operation of Committee on Regulation-Free Special Zones) #

(1) "Heads and public officials in political service of the relevant central administrative agencies prescribed by Presidential Decree" in Article 77(3)1 of the Act means the Minister of Food and Drug Safety and the Chairperson of the Personal Information Protection Commission. <Amended on Jul. 20, 2021>

(2) In commissioning members pursuant to Article 77(3)2 of the Act, not more than two experts recommended by the competent Standing Committee of the National Assembly shall be included.

(3) The chairperson of the Committee on Regulation-Free Special Zones shall represent the Committee on Regulation-Free Special Zones and exercise the overall control of its affairs.

(4) If the chairperson of the Committee on Regulation-Free Special Zones becomes unable to perform his or her duties due to unavoidable causes, a member nominated by the chairperson of the Committee on Regulation-Free Special Zones from among the members prescribed in Article 77(3)1 and 2 shall act on his or her behalf.

(5) The chairperson of the Committee on Regulation-Free Special Zones shall convene meetings of the Committee on Regulation-Free Special Zones and preside over the meetings.

(6) In order to convene a meeting of the Committee on Regulation-Free Special Zones, the chairperson of the Committee on Regulation-Free Special Zones shall inform the members of the Committee on Regulation-Free Special Zones of the date and time, place, purpose, etc. of the meeting in writing not later than seven days before the meeting; provided, in an emergency, he or she may give such information by means of telephone, etc. before opening the meeting.

(7) A majority of all incumbent members of the Committee on Regulation-Free Special Zones shall constitute a quorum, and any decision thereof shall require a concurring vote of at least a majority of those present.

(8) Allowances may be paid to members and relevant experts who attend meetings of the Committee on Regulation-Free Special Zones within budgetary limits; provided, the same shall not apply where a member who is a public official attends the meetings of the relevant committee in direct connection with his or her competent duties.

(9) Except as provided in paragraphs (1) through (8), matters necessary for the operation of the Committee on Regulation-Free Special Zones shall be determined by the chairperson of the Committee on Regulation-Free Special Zones with the resolution of the Committee on Regulation-Free Special Zones.

Article 49(Composition and operation of Deliberation Committee on Special Cases concerning Regulation of Regulation-Free Special Zones) #

(1) The Deliberation Committee on Special Cases concerning Regulation, etc. of Regulation-Free Special Zones under Article 79(1) of the Act (hereinafter referred to as the "Deliberation Committee") shall be comprised of up to 45 members, including the chairperson. <Amended on Jul. 20, 2021>

(2) The following persons shall be the members of the Deliberation Committee, and an executive secretary shall be appointed by the Minister of SMEs and Startups from among members of the Senior Executive Service of the Ministry of SMEs and Startups: <Amended on Jul. 20, 2021; Jul. 7, 2023; Oct. 1, 2025>

1. Vice Ministers or vice-minister-level public officials (where there are two or more Vice Ministers or vice-minister-level public officials in the following central administrative agency, persons nominated by the head of the relevant central administrative agency) of the Ministry of Finance and Economy, the Ministry of Science and ICT, the Ministry of Education, the Ministry of Justice, the Ministry of National Defense, the Ministry of the Interior and Safety, the Ministry of Culture, Sports and Tourism, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade and Industry, the Ministry of Health and Welfare, the Ministry of Climate, Energy and Environment, the Ministry of Land, Infrastructure and Transport, the Ministry of Oceans and Fisheries, the Ministry of SMEs and Startups, the Korea Forest Service, the Office for Government Policy Coordination, the Fair Trade Commission, the Financial Services Commission, the Personal Information Protection Commission, and Vice Minister of the Ministry of Food and Drug Safety;

2. Persons commissioned by the chairperson of the Deliberation Committee from among those with extensive knowledge and experience in regulatory reform, balanced regional development policies, and innovative projects, strategic industries, etc.

(3) The term of office of the members referred to in paragraph (2)2 shall be two years, and consecutive appointment shall be limited to one occasion.

(4) The Deliberation Committee may have subcommittees if necessary for the professional examination of the agenda items presented by the Committee on Regulation-Free Special Zones, reconciling conflicts among interested parties, etc.

(5) The chairperson of the Deliberation Committee shall represent the Deliberation Committee and exercise the overall control of its affairs; provided, if the chairperson of the Deliberation Committee becomes unable to perform his or her duties due to unavoidable reasons, a member nominated by the chairperson of the Deliberation Committee from among the members prescribed in paragraph (2) shall act on his or her behalf. <Amended on Jul. 20, 2021>

(6) In order to convene a meeting of the Deliberation Committee, the chairperson of the Deliberation Committee shall inform the members of the Committee on Regulation-Free Special Zones of the date and time, place, purpose, etc. of the meeting in writing not later than seven days before the meeting; provided, in an emergency, he or she may give such information by means of telephone, etc. before opening the meeting.

(7) A majority of all incumbent members of the Deliberation Committee shall constitute a quorum, and any decision thereof shall require a concurring vote of at least a majority of those present.

(8) If deemed necessary for its deliberation, the Deliberation Committee may have a member of the Senior Executive Service of a central administrative agency, a Mayor/Do Governor, etc. of a non-Seoul metropolitan area, or an interested person attend its meetings and hear his or her opinion. <Amended on Jul. 30, 2024>

(9) Allowances may be paid to members and relevant experts who attend meetings of the Deliberation Committee within budgetary limits; provided, the same shall not apply where a member who is a public official attends the meetings of the relevant committee in direct connection with his or her competent duties.

(10) Except as provided in paragraphs (1) through (9), matters necessary for the operation of the Deliberation Committee shall be determined by the chairperson of the Deliberation Committee with the resolution of the Deliberation Committee.

Article 50(Disqualification of, challenge to, and refrainment by, members of commission on Regulation-Free Special Zones and Deliberation Committee) #

(1) Any member of the Committee on Regulation-Free Special Zones or the Deliberation Committee who falls under any of the following subparagraphs shall be disqualified from the deliberations and resolution on the relevant agenda:

2. Where the member is or was a relative of a party to the relevant agenda;

3. Where the member has given testimony, made statement, conducted counseling, provided services, conducted investigation, or made appraisal with respect to the relevant agenda;

4. Where the member worked at a corporation, organization, etc. to which a party to the relevant agenda item belongs within the last three years;

5. Where the member or a corporation, organization, etc. to which the member belongs is or was an agent of a party to the relevant agenda item.

(2) If any ground exists for which it would be difficult to expect the impartial deliberation and resolution of any member, a party to the relevant agenda may file a request to challenge him or her with the Committee on Regulation-Free Special Zones or the Deliberation Committee, and the Committee on Regulation-Free Special Zones or the Deliberation Committee shall make a decision on such request by its resolution. In such cases, the member subjected to such request for challenge shall not participate in the resolution.

(3) A member shall, if falling under any cause for disqualification referred to in subparagraphs of paragraph (1), voluntarily refrain from the deliberation and resolution of the relevant agenda.

(4) Where a member of the Committee on Regulation-Free Special Zones under Article 77(3)2 of the Act falls under any of the following cases, the chairperson of the Committee on Regulation-Free Special Zones may dismiss such member from his or her office:

1. If the council member is unable to continue to perform his or her duties due to a mental or physical disorder;

2. If the council member is found to have committed irregularities in connection with his or her duties;

3. Where a committee member is found unfit for office due to neglecting any of his or her duties, or due to indecent conduct or any other reason;

4. Where he or she admits it is difficult for him or her to perform his or her duties;

5. Where he or she fails to refrain from his or her duty despite the case falling under any subparagraph of paragraph (1).

(5) Where a member of the Deliberation Committee under Article 49(2)2 falls under any subparagraph of paragraph (4), the chairperson of the Deliberation Committee may dismiss such member from his or her office:

(6) If any commissioned member is dismissed pursuant to paragraph (4) or (5), or if any vacancy arises among commissioned members, a new member shall be commissioned.

Article 53(Cancellation of designation of regulation-free special zones) #

(1) "If there is any other ground prescribed by Presidential Decree" in Article 82(1)3 of the Act means any of the following cases:

1. Where a regulation-free special zone is designated based on a specialization plan proposed by a private enterprise, etc. in a false or other improper means;

2. Where canceling the designation of a regulation-free special zone is necessary for public interest due to circumstantial changes not anticipated at the time of designating the regulation-free special zone;

3. Where the purpose of designating a regulation-free special zone is achieved;

4. Other cases that the Minister of SMEs and Startups deems necessary.

(2) Where a Mayor/Do Governor of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone fails to apply for the cancellation of designation of a regulation-free special zone, in spite of the fact that the regulation-free special zone is deemed to fall under any subparagraph of Article 82(1) of the Act, the Minister of SMEs and Startups may request the competent Mayor/Do Governor, etc. of a non-Seoul metropolitan area to file an application for canceling the designation of the regulation-free special zone. <Amended on Jul. 30, 2024>

(3) A Mayor/Do Governor, etc. of a non-Seoul metropolitan area in receipt of a request to file an application for canceling designation of a regulation-free special zone pursuant to paragraph (2) shall apply for canceling designation of the regulation-free special zone unless there is a compelling reason not to do so. <Amended on Jul. 30, 2024>

(4) Where the designation of a regulation-free special zone is canceled pursuant to Article 82(2) or (3) of the Act, the Minister of SMEs and Startups shall publish notice of the details thereof in the Official Gazette and notify such fact to a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over the regulation-free special zone. <Amended on Jul. 30, 2024>

(5) A Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone in receipt of a notification under paragraph (4) shall immediately notify such fact to the relevant private enterprises, etc. and interested persons and make the details thereof available to residents, enterprises, etc. for perusal for at least 30 days. <Amended on Jul. 30, 2024>

(6) "Case where it is extremely impractical or there is no practical use to cease to apply the special cases for regulation, etc. or to apply the statutes related to the relevant regulation" in the proviso of Article 82(5) of the Act means a case falling under any subparagraph of Article 52(2).

Article 56(Request for rapid identification of regulation) #

(1) A person who intends to check whether it is necessary to obtain permission, etc. related to an innovative project, strategic industry, etc. (hereinafter referred to as "regulation check") pursuant to Article 85(1) of the Act, shall submit an application for regulation check in the form prescribed by Decree of the Ministry of SMEs and Startups, along with the following documents, to the competent Mayor/Do Governor, etc. of a non-Seoul metropolitan area; provided, the documents falling under subparagraphs 2 and 3 shall be submitted only if applicable: <Amended on Jul. 30, 2024>

1. Description of the innovative project or strategic industry;

2. Details of the statutes and regulations, etc. requiring regulation check in relation to subparagraph 1;

3. Where no permission, approval, certification, verification, authorization, etc. (hereinafter referred to as "permission, etc.") is obtained despite the fact that an application therefor has been filed before applying for regulation check to promote the innovative project or strategic industry, the relevant documents.

(2) A Mayor/Do Governor, etc. of a non-Seoul metropolitan area in receipt of a request for regulation check under paragraph (1) shall, upon conducting the regulation check within the scope of his or her authority pursuant to Article 85(2) of the Act, shall notify the result thereof immediately to the person who has requested the regulation check; and where regulation check by the head of any central administrative agency is deemed necessary, he or she shall send a copy of the application and documents attached thereto to the Minister of SMEs and Startups without delay. <Amended on Jul. 30, 2024>

(3) In cases of matters under the jurisdiction of the Ministry of SMEs and Startups among the matters on which regulation check is requested pursuant to paragraph (2), the Minister of SMEs and Startups shall conduct regulation check within 30 days from the date a copy of the application and documents attached thereto are received from a Mayor/Do Governor, etc. of a non-Seoul metropolitan area; and in cases of matters under the jurisdiction of any other central administrative agency, he or she shall send a copy of the application and documents attached thereto to the head of the competent central administrative agency without delay. <Amended on Jul. 30, 2024>

(4) The Minister of SMEs and Startups shall immediately notify the opinion received from the head of the competent central administrative agency and the result of rapid identification of regulation conducted pursuant to Article 85(6) or (7) of the Act to the Mayor/Do Governor, etc. of the relevant non-Seoul metropolitan area as prescribed by Decree of the Ministry of SMEs and Startups. <Amended on Jul. 30, 2024>

(5) A Mayor/Do Governor, etc. of a non-Seoul metropolitan area in receipt of a notification under paragraph (3) or (4) shall immediately notify the person who has requested regulation check of the result thereof. <Amended on Jul. 30, 2024>

Article 57(Application for special cases concerning demonstration) #

(1) "Person prescribed by Presidential Decree" in the provisions, with the exception of the subparagraphs, of Article 86(1) of the Act means a private enterprise, etc. which participates in an innovative project, strategic industry, etc. and intends to file an application for a special case for demonstration under Article 86(1) of the Act (hereinafter referred to as "special case for demonstration") with a place of business located in an area other than a regulation-free special zone (including the Seoul metropolitan area). <Added on Jul. 30, 2024>

(2) A person who intends to file an application for a special case for demonstration shall file an application for a special case for demonstration in the form prescribed by Decree of the Ministry of SMEs and Startups, along with the following documents, with a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone: <Amended on Jul. 30, 2024>

1. A demonstration plan for testing and verifying a new service or product related to an innovative project, strategic industry, etc.;

2. Data explaining that the relevant service or product falls under an innovative project, strategic industry, etc.;

3. Data explaining that the new service or product related to innovative project, strategic industry, etc. falls under any subparagraph of Article 86(1) of the Act;

4. Data necessary for the deliberation and resolution on the special case for demonstration under Article 86(4) of the Act;

5. Other data requested by the Minister of SMEs and Startups or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone, as those deemed necessary for a special case for demonstration.

(3) A demonstration plan under paragraph (2)1 shall include the following matters: <Amended on Jul. 30, 2024>

1. The purpose and outline of testing and verifying a new service or product related to the innovative project, strategic industry, etc.;

2. The name and contents of a new service or product related to the innovative project, strategic industry, etc., and related statutes or regulations;

3. Details of the special case for demonstration and testing and verifying methods of a new service or product related to the innovative project, strategic industry, etc.;

4. The region, period, and scale for demonstration of a new service or product related to the innovative project, strategic industry, etc.;

5. Other matters determined and publicly notified by the Minister of SMEs and Startups.

(4) Where the Minister of SMEs and Startups deems it necessary to supplement the contents of an application for a special case for demonstration, he or she may request to supplement it, fixing a reasonable period. <Amended on Jul. 30, 2024>

(5) In any of the following cases, the Minister of SMEs and Startups may return an application for a special case for demonstration: <Amended on Jul. 30, 2024>

1. Where it is obvious that the details of the application for a special case does not fall under any subparagraph of Article 86(1) of the Act;

2. Where the applicant fails to submit any of the documents prescribed in subparagraphs of paragraph (2) or to comply with a request for supplementation made pursuant to paragraph (4);

3. Where it is obvious that the details of the application for a special case for demonstration has been prepared by false or improper means.

(6) Where a person who has filed an application for granting a special case for demonstration fails to supplement the contents of the application despite the fact that the period during which he or she is requested to supplement them pursuant to the proviso of Article 86(3) of the Act has elapsed, the head of the relevant central administrative agency shall send the result of examination to the Minister of SMEs and Startups based on the documents already submitted. <Amended on Jul. 30, 2024>

(7) When deliberating and adopting a resolution on a special case for demonstration pursuant to Article 86(4) of the Act, the Committee on Regulation-Free Special Zones shall comply with the criteria for examination determined internally, taking the following matters into comprehensive consideration: <Amended on Jul. 30, 2024>

1. The scope of testing and verification of a new service or product related to the innovative project, strategic industry, etc. (including regional scope and scale of users) and the concreteness of testing and verification methods;

2. Financial and technical capacity to test and verify a new service or product related to the relevant innovative project, strategic industry, etc.;

3. Innovativeness and benefits of users of a new service or product related to the relevant innovative project, strategic industry, etc.;

4. Effect of the relevant innovative project, strategic industry, etc. on the lives, health, safety, environment, etc. of the people;

5. Measures for protection of users and safe protection and processing of personal information;

6. Other matters that the chairperson of the Committee on Regulation-Free Special Zones deems necessary according to the characteristics of the innovative project, strategic industry, etc.

(8) In granting a special case for demonstration under Article 86(4) of the Act, the Minister of SMEs and Startups shall issue a certificate of the special case for demonstration in the form prescribed by Decree of the Ministry of SMEs and Startups and make a public announcement of such fact in the Official Gazette. <Amended on Jul. 30, 2024>

(9) A person who intends to have the effective period of a special case for demonstration extended pursuant to the proviso of Article 86(9) of the Act shall file an application therefor in the form prescribed by Decree of the Ministry of SMEs and Startups, accompanied by the following documents, with the Minister of SMEs and Startups through a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. A result report, including the present status and result of utilizing the special case for demonstration;

2. A document stating the reasons for extension of the special case for demonstration and related evidential data;

3. A plan for extending the effective period of liability insurance or mutual aid (hereinafter referred to as "liability insurance, etc.") or a plan for revising damage compensation;

4. A copy of the certificate of the special case for demonstration;

5. An extension plan including details, methods, schedule, etc. of demonstration during the extended period of the special case for demonstration;

6. Any other matters necessary for extending the special case for demonstration.

(10) Where the Minister of SMEs and Startups intends to apply the special case for demonstration after extending the effective period of the special case for demonstration pursuant to the proviso of Article 86(9) of the Act or while the effective period of the special case for demonstration is deemed not expired pursuant to Article 87(10) of the Act, he or she shall issue a certificate of the special case for demonstration in the form prescribed by Ordinance of Ministry of SMEs and Startups. <Amended on Jul. 20, 2021; Jul. 30, 2024>

(11) Except as provided in paragraphs (1) through (10), matters necessary for the detailed criteria, procedures, methods, etc. for a special case for demonstration shall be determined and publicly notified by the Minister of SMEs and Startups. <Amended on Jul. 30, 2024>

Article 59(Management of special cases concerning demonstration) #

(1) Pursuant to Article 87(1) of the Act, the Minister of SMEs and Startups, the head of each relevant central administrative agency, and a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone shall respectively have public officials under their jurisdiction manage and supervise the following matters: <Amended on Jul. 30, 2024>

1. Whether the relevant plan for demonstration is implemented;

2. Whether the conditions for granting each special case for demonstration are fulfilled;

3. Results of demonstration of services and products.

(2) "Institution or organization having professional personnel and technologies prescribed by Presidential Decree" in Article 87(2) of the Act means the following institution or organization: <Amended on Feb. 17, 2022>

1. National or public research institutions;

2. A government-funded research institute established pursuant to the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes or the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes;

3. A specific research institute pursuant to the Specific Research Institutes Support Act;

4. A research institute, such as a research institute specializing in manufacturing technology, established under the Industrial Technology Innovation Promotion Act;

5. A research institute belonging to a public institution under the Act on the Management of Public Institutions;

6. Any of the schools set forth in subparagraphs of Article 2 of the Higher Education Act, or a polytechnic college under the Act on the Development of Lifelong Vocational Skills of Citizens;

7. An industrial technology research cooperative established under the Industrial Technology Research Cooperatives Support Act;

8. A project implementer designated under Article 4 of the Act on Special Cases concerning Support for Technoparks;

9. Any other institution or organization recognized and publicly notified by the Minister of SMEs and Startups as having the professional personnel and technology necessary for performing testing and inspection services for the management of special cases for demonstration.

(3) The head of each relevant central administrative agency, a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone, and each business operator presenting demonstration shall notify the following matters to the users pursuant to Article 87(3) of the Act; provided,, the Mayor/Do Governor, etc. of the non-Seoul metropolitan area having jurisdiction over the regulation-free special zone need not notify them if the business operator presenting demonstration has notified them to the users: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. The name and contents of a new service or product related to the innovative project, strategic industry, etc.;

2. Conditions attached to the area, period or scale of the special case for demonstration to secure safety, etc. pursuant to the latter part of Article 86(4) of the Act (only applicable where conditions are attached);

3. Details of the liability insurance, etc. or compensation measures for damage referred to in Article 88(2) of the Act.

(4) "Method prescribed by Presidential Decree" in the former part of Article 87(4) of the Act means the case where a business operator presenting demonstration proves safety, etc. of a new service or product related to an innovative project, strategic industry, etc. through an institution or organization with professional personnel and technology referred to in paragraph (2) and submit the result thereof.

(5) Where the head of a related central administrative agency or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone deems it necessary to improve any statute or regulation under Article 87(6) of the Act, he or she shall take the following matters into comprehensive consideration: <Added on Jul. 20, 2021; Jul. 30, 2024>

1. Whether any safety accident or damage has occurred in relation to services or products subject to the relevant special case for demonstration;

2. Degree of users' benefits drawn through demonstration of the services or products subject to the relevant special case for demonstration;

3. Industrial ripple effects and expected effects of the launch of services or products subject to the relevant special case for demonstration;

4. Other matters that the Minister of SMEs and Startups deems necessary to examine whether it is necessary to improve statutes or regulations.

(6) Where the head of a relevant central administrative agency submits the results of the processing of a recommendation for regulatory improvement under Article 14(2) of the Framework Act on Administrative Regulations which is applied mutatis mutandis in Article 18(2) of that Act to the Regulatory Reform Committee under Article 23 of that Act according to the results of the examination under Article 87(7) of the Act, he or she shall report the processing results to the Deliberation Committee without delay. <Added on Jul. 20, 2021>

(7) Where the head of a related central administrative agency or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone reports to the Deliberation Committee the results of examination or processing under Article 87(6) or paragraph (6) of this Article, the Minister of SMEs and Startups shall prepare a report on the results of review prescribed by Decree of the Ministry of SMEs and Startups and notify the business operator presenting demonstration of the details thereof through the Mayor/Do Governor, etc. of the non-Seoul metropolitan area having jurisdiction over the regulation-free special zone. <Added on Jul. 20, 2021; Jul. 30, 2024>

(8) Where the head of the relevant central administrative agency or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone intends to commence the improvement of statutes or regulations pursuant to the former part of Article 87(4) of the Act and paragraph (6) of that Article, he or she shall formulate a plan on the improvement of statutes or regulations, including all the following matters, and submit it to the Minister of SMEs and Startups: <Amended on Jul. 30, 2024>

1. Details of statutes or regulations subject to improvement in relation to special cases for demonstration;

2. Schedule for the improvement of statutes or regulations;

3. Other matters deemed necessary by the Minister of SMEs and Startups in relation to the formulation of a plan on the improvement of statutes or regulations.

(9) Where the head of the relevant central administrative agency or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone completes the improvement of statutes or regulations in accordance with a plan on the improvement of statutes or regulations under paragraph (8), he or she shall notify the Minister of SMEs and Startups thereof without delay; and the Minister of SMEs and Startups shall notify the business operator presenting demonstration of the completion of the improvement of statutes or regulations through the Mayor/Do Governor, etc. of the non-Seoul metropolitan area having jurisdiction over the regulation-free special zone. <Added on Jul. 30, 2024>

(10) Where a business operator presenting demonstration intends to request the improvement of statutes or regulations pursuant to Article 87(9) of the Act, he or she shall submit a request for the improvement of statutes or regulations prescribed by Decree of the Ministry of SMEs and Startups accompanied by the following documents, to the Minister of SMEs and Startups, the head of a relevant central administrative agency, and a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone: In such cases, a result report under subparagraph 2 shall include the matters specified in subparagraphs of paragraph (11): <Added on Jul. 20, 2021; Jul. 30, 2024>

1. A copy of a certificate of the special case for demonstration;

2. A result report including the present status and results of utilizing the special case for demonstration, and data substantiating them;

3. A plan for extending the effective period of liability insurance, etc. or a plan for revising damage compensation (limited to where the person intends to apply the special case for demonstration while the effective period of the special case for demonstration is deemed not expired pursuant to Article 87(10) of the Act);

4. Other data requested by the Minister of SMEs and Startups, the head of a related central administrative agency, or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone to examine whether it is necessary to improve statutes or regulations, etc.

(11) A business operator presenting demonstration shall submit a result report including the following matters, accompanied by data substantiating such results, to the Minister of SMEs and Startups, the head of the relevant central administrative agency, and a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone under Article 87(11) of the Act: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. Whether the purpose of the demonstration plan is achieved;

2. Whether conditions for granting the special case for demonstration are fulfilled;

3. Whether any safety accident or compensation for damage has occurred;

4. Result of demonstration of a new service or product;

5. Data substantiating the necessity for improving statutes or regulations.

(12) Where it is deemed necessary to supplement result reports and other data submitted pursuant to paragraph (10) or (11), the Minister of SMEs and Startups, the head of the relevant central administrative agency, or a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone may request to supplement them within a specific reasonable period. <Amended on Jul. 20, 2021; Jul. 30, 2024>

Article 60(Purchase of liability insurance) #

(1) A person who has been granted a special case for demonstration or provisional permission pursuant to Article 90(1) of the Act (hereinafter referred to as "provisional permission") shall submit data substantiating the fact that he or she has purchased a liability insurance, etc. pursuant to the main clauses of Articles 88(2) and 90(14) of the Act to the Minister of SMEs and Startups and a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone before implementing a new innovative project, strategic industry, etc. <Amended on Jul. 20, 2021; Jul. 30, 2024>

(2) The effective period of the liability insurance, etc. provided in paragraph (1) shall expire after the effective period for a special case for demonstration or provisional permission expires; and the relevant liability insurance, etc. shall be renewed if a person intends to obtain an extension of the effective period of a special case for demonstration or provisional permission under the proviso of Article 86 (9), Article 87 (10) (limited to cases where the person intends to be subject to the application of the relevant special case for demonstration while the effective period of the special case for demonstration is deemed not expired) or the proviso of Article 90 (10). In such cases, a person who is granted a special case for demonstration or provisional permission shall submit a copy of the renewed certificate of liability insurance, etc. to the Minister of SMEs and Startups and the Mayor/Do Governor outside the Seoul metropolian area having jurisdiction over the regulation-free special zone, within 30 days from the date of renewal. <Amended on Jul. 20, 2021; Jul. 30, 2024>

(3) The insurance or mutual aid money of a liability insurance, etc. a person who is granted a special case for demonstration or provisional permission must purchase pursuant to the main clauses of Articles 88(2) and 90(14) of the Act (hereinafter referred to as "insurance money, etc.") shall comply with the following standards; provided, the amount of insurance money, etc. to be paid shall not exceed the amount of actual damage, except as provided in the proviso of subparagraph 1: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. Where a person dies: 150 million won per person; provided, where the amount of damage incurred is less than 20 million won, the amount of damage shall be deemed 20 million won;

2. In cases of an injury, 30 million won per person;

3. At a state in which no further therapeutic effect is expected and the symptom is fixed after treatment for an injury, if any physical disability is caused by such injury (hereafter in this Article, referred to as "aftereffect disability"), 150 million won per person;

4. Where property is lost or damaged: 1 billion won per accident.

(4) Where a case falls under at least two provisions of paragraphs (1) through (3), insurance money, etc. shall be paid to the extent not exceeding the actual amount of loss, according to the following category: <Amended on Jul. 20, 2021>

1. If an injured person dies during treatment due to the relevant injury, the aggregate of the amounts prescribed in paragraph (3)1 and 2;

2. If an aftereffect disability is caused to an injured person due to the relevant injury, the aggregate of the amounts prescribed in paragraph (3)2 and 3;

3. If a person dies due to the relevant injury after being paid the amount prescribed in paragraph (3)3, the amount calculated by subtracting the amount paid pursuant to paragraph (3)3 minus the amount of loss for the period since the date of death from the amount prescribed in paragraph (3)1.

(5) The Minister of SMEs and Startups may partially subsidize the insurance premium or mutual aid membership fees of a liability insurance, etc. purchased by a person who is granted a special case for demonstration or provisional permission, pursuant to the main clauses of Articles 88(2) and 90(14) of the Act. <Amended on Jul. 20, 2021; Jul. 30, 2024>

(6) The criteria for liability insurances, etc. for loss under paragraphs (3) and (4) shall be determined by the Minister of SMEs and Startups. <Amended on Jul. 20, 2021>

Article 62(Procedures for compensation for damage) #

(1) A person who intends to file a claim for damages in accordance with a liability insurance, etc. or compensation measures for damage under Articles 88(2) and 90(14) of the Act shall file such claim, stating the following matters, with the person who is granted a special case for demonstration or provisional permission: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. Name and address of the claimant;

2. Relationship between the claimant and the deceased (limited to cases where the victim has deceased);

3. Details of an accident, such as the date, time, and place of the accident;

4. Amount of damage and standard for calculation thereof.

(2) A person who receives a claim for damages pursuant to paragraph (1) shall inform, without delay, the claimant of the fact that he or she has purchased a liability insurance, etc. or the plan for compensation for damage to users referred to in Article 61(1). <Amended on Jul. 20, 2021>

(3) A person who has failed to purchase a liability insurance, etc. among those who have received claims for damages pursuant to paragraph (1) shall compensate the damage in accordance with the plan for compensation for damage to users referred to in Article 61(1) within 30 days from the date the claim is received pursuant to paragraph (1). <Amended on Jul. 20, 2021>

(4) Where a person who is granted a special case for demonstration or provisional permission refuses to compensate damage pursuant to the proviso of Article 88(1) of the Act or the proviso of Article 90(13) of the Act, he or she shall notify the claimant of his or her decision, in writing, specifying the reasons for the refusal. <Amended on Jul. 30, 2024>

(5) A person who has received a claim for damages pursuant to paragraph (1) shall report such fact without delay to the Minister of SMEs and Startups and a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone, and shall report the result thereof within 15 days from the date the damage is compensated (where he or she has refused to compensate the damage pursuant to paragraph (4), referring to the date the notice of refusal is given). <Amended on Jul. 30, 2024>

(6) Except as provided in paragraphs (1) thorough (5), matters necessary for compensation for damage shall be determined by the Minister of SMEs and Startups.

Article 64(Application for provisional permission) #

(1) A person who intends to apply for provisional permission shall submit an application for provisional permission prescribed by Decree of the Ministry of SMEs and Startups to a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone, along with the following documents; provided, where a business operator presenting demonstration who has received a notice under Article 59(7) to the effect that it is deemed necessary to improve statutes or regulations applies for provisional permission pursuant to Articles 87(8) and 90(1) of the Act, he or she may omit the submission of safety verification data under subparagraph 3, as prescribed by the Minister of SMEs and Startups, <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. A project plan for the innovative project, strategic industry, etc. subject to provisional permission;

2. Materials explaining that the relevant innovative project, strategic industry, etc. falls under any subparagraph of Article 90(1) of the Act;

3. Safety verification data for the innovative project, strategic industry, etc. subject to provisional permission;

4. Data necessary for conducting deliberation and resolution on the adequacy of provisional permission pursuant to Article 90(5) of the Act;

(2) A project plan under paragraph (1)1 shall include the following: <Amended on Jul. 20, 2021>

1. The purpose and outline of the innovative project, strategic industry, etc. subject to provisional permission;

2. The name and contents of the provisional permission related to the relevant innovative project, strategic industry, etc., and related statutes and regulations;

3. A commercialization plan containing a plan for advancing into the market;

4. The zone, period, and scale of provisional permission related to the relevant innovative project, strategic industry, etc., and major users thereof;

5. Other matters determined and publicly notified by the Minister of SMEs and Startups.

(3) Where the Minister of SMEs and Startups deems it necessary to supplement the contents of an application for provisional permission, he or she may request to supplement it, fixing a reasonable period.

(4) In any of the following cases, the Minister of SMEs and Startups may return an application for provisional permission:

1. Where it is obvious that the details of the application for provisional permission does not fall under any subparagraph of Article 90(1) of the Act;

2. Where the applicant fails to submit any of the documents prescribed in subparagraphs of paragraph (1) or to comply with a request for supplementation made pursuant to paragraph (3);

3. Where it is obvious that the safety of the innovative project, strategic industry, etc. subject to provisional permission is not verified;

4. Where it is obvious that the contents of the application for provisional permission is prepared by false or other improper means.

(5) Where a person who has filed an application for provisional permission fails to supplement data despite the fact that the period during which he or she is requested to supplement them pursuant to the proviso of Article 90(4) of the Act has elapsed, the head of the relevant central administrative agency shall send a reply on the result of examination to the Minister of SMEs and Startups based on the documents already submitted.

(6) When deliberating and adopting a resolution on matters related to provisional permission pursuant to Article 90(5) of the Act, the Committee on Regulation-Free Special Zones shall comply with the criteria for examination determined internally, taking the following matters into comprehensive consideration:

1. Completeness and practicability of the contents of the project plan submitted pursuant to paragraph (1)1;

2. Financial and technical capacity of the applicant for provisional permission related to the relevant innovative project, strategic industry, etc.;

3. Innovativeness, safety, and benefits of users of the relevant innovative project, strategic industry, etc.;

4. Growth potential of the market related to the relevant innovative project, strategic industry, etc.;

5. Effect of the relevant innovative project, strategic industry, etc. on the lives, health, safety, environment, etc. of the people;

6. Measures for protection of users and safe protection and management of personal information;

7. Other matters that the chairperson of the Committee on Regulation-Free Special Zones deems necessary according to the characteristics of the innovative project, strategic industry,

(7) In granting provisional permission under Article 90(5) of the Act, the Minister of SMEs and Startups shall issue a certificate of provisional permission in the form prescribed by Decree of the Ministry of SMEs and Startups and publish an announcement of such fact in the Official Gazette.

(8) The Minister of SMEs and Startups may attach a condition requiring testing and inspection to secure safety, etc. pursuant to Article 90(6) of the Act, and the person who applies for provisional permission shall bear expenses necessary for conducting the testing and inspection. <Amended on Jul. 20, 2021>

(9) A person who intends to have the effective period of provisional permission extended pursuant to the proviso of Article 90(10) of the Act shall file an application therefor in the form prescribed by Decree of the Ministry of SMEs and Startups, accompanied by the following documents, with the Minister of SMEs and Startups through a Mayor/Do Governor, etc. of a non-Seoul metropolitan area having jurisdiction over a regulation-free special zone: <Amended on Jul. 20, 2021; Jul. 30, 2024>

1. A result report, including the present status and result of utilizing the provisional permission;

2. A document stating the reasons for extending the provisional permission and related evidential data;

3. A plan for extending the period of the liability insurance, etc. or modifying indemnification for damage;

4. A copy of the certificate of provisional permission;

5. An extension plan including the details, method, schedule, etc. of implementation of the innovative project, strategic industry, etc. subject to provisional permission for the extended period of provisional permission;

6. Any other matters necessary for extending provisional permission.

(10) When extending the effective period of provisional permission pursuant to the proviso of Article 90(10) of the Act, the Minister of SMEs and Startups shall issue a certificate of provisional permission in the form prescribed by Ordinance of the Minister of SMEs and Startups. <Amended on Jul. 30, 2024>

(11) Where the head of the relevant central administrative agency commences or completes the improvement of statutes or regulations pursuant to Article 90(11) of the Act, he or she shall notify such fact to the Minister of SMEs and Startups without delay, and the Minister of SMEs and Startups shall notify persons who have received the provisional permission of the fact that the statutes and regulations that serve as grounds for permission, etc. for the innovative projects, strategic industries, etc. subject to provisional permission are prepared. <Amended on Jul. 30, 2024>

(12) Except as provided in paragraphs (1) through (11), matters necessary for the detailed criteria, procedures, methods, etc. for provisional permission shall be determined and publicly notified by the Minister of SMEs and Startups.

Article 67(Support for designation, operation, and other affairs of regulation-free special zones) #

(1) The Minister of SMEs and Startups may have any of the following institutions or organizations perform the affairs prescribed in paragraph (2) to support the affairs related to the designation and operation of regulation-free special zones, special cases for demonstration, provisional permission, etc.:

1. A public institution prescribed in the Act on the Management of Public Institutions;

2. Government-funded research institutes under Article 2 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;

3. The project implementer of a technopark designated under Article 4 of the Act on Special Cases concerning Support for Technoparks;

4. Any other institution or organization recognized by the Minister of SMEs and Startups as having the professional personnel and exclusive organization necessary for providing support in mutual cooperation and exchange among industry, academia and research, special cases for demonstration, provisional permission, etc.

(2) The Minister of SMEs and Startups may have any institution or organization referred to in paragraph (1) provide support in the following affairs:

1. Affairs related to the operation of the Committee on Regulation-Free Special Zones, Deliberation Committee, and subcommittees;

2. Affairs related to the evaluation of achievements from operating regulation-free zones under Article 83(1) of the Act;

3. Affairs related to the post management under Article 84(1) of the Act;

4. Affairs related to the management and supervision under Article 87(1) of the Act;

5. Other affairs that the Minister of SMEs and Startups deems necessary for the smooth performance of the affairs related to the designation and operation of regulation-free special zones, special cases for demonstration, provisional permission, etc.

(3) The Minister of SMEs and Startups may wholly or partially subsidize the expenses incurred in performing the affairs prescribed in paragraph (2).

(4) Details to provide support for the affairs under paragraphs (1) and (2) shall be determined and publicly notified by the Minister of SMEs and Startups.

ENFORCEMENT DECREE OF THE ACT ON SPECIAL CASES CONCERNING THE REGULATION OF REGULATION-FREE SPECIAL ZONES AND SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT

Article 1(Purpose) #

Article 2(Definitions) #

Article 2-2(Preparation of List of Statutory Regulations) #

Article 3(Requests for designation of special economic zones for specialized regional development) #

Article 4(Proposal of specialized zone plans by private enterprises) #

Article 5(Public announcement of specialized zone plans) #

Article 6(Specialized zone plans) #

Article 7(Designation of specialized zones) #

Article 8(Matters subject to deliberation and resolution of Specialized Zone Committee) #

Article 9(Operation of Specialized Zone Committee) #

Article 10(Hearing of opinions by Specialized Zone Committee) #

Article 11(Allowances) #

Article 12(Organization and operation of Working Committee) #

Article 13(Disqualification of, challenge to and refrainment by members of Specialized Zone Committee) #

Article 14(Matters to be considered in deliberations and resolutions of Specialized Zone Committee) #

Article 15(Cancellation of designation of specialized zones) #

Article 16(Effects of cancellation of designation of specialized zones) #

Article 17(Standards on operation of specialized zones) #

Article 18(Structural sophistication of specialized zone) #

Article 19(Demand survey regarding specialized zones) #

Article 20(Special cases concerning establishment of schools) #

Article 21(Special cases concerning the Elementary and Secondary Education Act) #

Article 22(Special cases concerning autonomous schools) #

Article 23(Special cases concerning the Immigration Act) #

Article 24(Special cases concerning the Agricultural and Fishing Villages Improvement Act) #

Article 25(Special cases concerning the Mountainous Districts Management Act) #

Article 26(Special cases concerning the State Forest Administration and Management Act) #

Article 27(Joint management standards for oriental medicine wholesalers) #

Article 28(Incidental business of medical corporations) #

Article 29(Special cases concerning the National Land Planning and Utilization Act) #

Article 30(Special cases concerning the Monopoly Regulation and Fair Trade Act) #

Article 31(Requests for application of special cases concerning state and public property) #

Article 32(Special cases concerning the Liquor License Act) #

Article 33(Special cases concerning the Museum and Art Gallery Support Act) #

Article 34(Special cases concerning the Seed Industry Act) #

Article 35(Requests for application of special cases concerning the Act on Acquisition of and Compensation for Land for Public Works Projects) #

Article 36(Formulation and submission of land use plans for specialized zones) #

Article 37(Legal fiction of decision of urban and Gun management plan) #

Article 38(Deemed authorization or permission for specialized zones) #

Article 39(Special cases concerning the Installation and Utilization of Sports Facilities Act) #

Article 40(Filing applications for designation of regulation-free special zones) #

Article 41(Proposal of plans for regulation-free special zone by private enterprises) #

Article 42(Establishment of plans for regulation-free special zones) #

Article 43(Public announcement of plans for regulation-free special zones) #

Article 44(Designation of regulation-free special zones) #

Article 45(Matters subject to consideration in deliberation and resolution of Committee on Regulation-Free Special Zones) #

Article 46(Designation of specialized zone and regional innovation cluster as regulation-free special zone) #

Article 47(Composition and operation of Committee on Regulation-Free Special Zones) #

Article 48(Hearing of opinions by Committee on Regulation-Free Special Zones (1) #

Article 49(Composition and operation of Deliberation Committee on Special Cases concerning Regulation of Regulation-Free Special Zones) #

Article 50(Disqualification of, challenge to, and refrainment by, members of commission on Regulation-Free Special Zones and Deliberation Committee) #

Article 51(Operation of Special Zone Innovation Planning Office) #

Article 52(Alteration of designation of regulation-free special zones) #

Article 53(Cancellation of designation of regulation-free special zones) #

Article 54(Standards for evaluation on achievements from operating regulation-free zones) #

Article 55(Post management) #

Article 56(Request for rapid identification of regulation) #

Article 57(Application for special cases concerning demonstration) #

Article 57-2(Application for re-deliberation of special cases for demonstration) #

Article 58(Changes of special cases concerning demonstration) #

Article 59(Management of special cases concerning demonstration) #

Article 60(Purchase of liability insurance) #

Article 61(Criteria for damage compensation in cases of inability to purchase liability insurance) #

Article 62(Procedures for compensation for damage) #

Article 63(Cancellation of special cases concerning demonstration) #

Article 64(Application for provisional permission) #

Article 64-2(Application for re-deliberation on provisional permission) #

Article 65(Changes of provisional permission) #

Article 66(Cancellation of provisional permission) #

Article 67(Support for designation, operation, and other affairs of regulation-free special zones) #

Article 68(Establishment of regional office for promotion of regulation-free special zones) #

Article 68-2(International Cooperation) #

Article 69(Special cases concerning the Special Act on Promotion of Special Research and Development Zones) #

Article 70(Special cases concerning the Building Act) #

Article 71(Special cases concerning the Environmental Impact Assessment Act) #

Article 72(Special cases concerning the Industrial Sites and Development Act) #

Article 73(Special cases concerning the High-Pressure Gas Safety Control Act) #

Article 74(Special cases concerning the Road Act) #

Article 75(Special cases concerning the Aerospace Industry Development Promotion Act) #