ENFORCEMENT DECREE OF THE SPECIAL ACT ON PROMOTION OF SPECIAL RESEARCH AND DEVELOPMENT ZONES, ETC.

Article 1(Purpose) #

The purpose of this Decree is to provide for matters mandated by the Special Act on Promotion of Special Research and Development Zones and matters necessary for the enforcement thereof.

[This Article Added on Jul. 26, 2012]

Article 2(Definitions) #

The terms used in this Decree are defined as follows: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jul. 2, 2024>

1. The term "undeveloped land" means land designated and publicly notified by the Minister of Science and ICT because it needs to be preserved in its natural condition in order to maintain a research environment among land in an area for educational, research and commercialization facilities owned by a resident institute;

2. The term "pilot plant" means any of the following facilities, which are prototype production facilities established by a resident institute to commercialize the outcomes of research and development:

(a) A facility designated as an urban factory under Article 28 of the Industrial Cluster Development and Factory Establishment Act;

(b) A testing plant as defined in Article 2 (5) of the Special Act on the Promotion of Venture Businesses.

[This Article Added on Jul. 26, 2012]

Article 3(Scope of public research institutes) #

"Institute prescribed by Presidential Decree" in subparagraph 5 (c) of Article 2 of the Special Act on Promotion of Special Research and Development Zones (hereinafter referred to as the "Act") means the following institutes: <Amended on Aug. 16, 2016; May 8, 2018; Jul. 9, 2019; Jul. 16, 2024>

1. A school established under Article 2 of the Higher Education Act;

2. The Agency for Defense Development established under the Act on the Agency for Defense Development;

3. A specialized manufacturing technology research institute established under Article 42 (1) of the Industrial Technology Innovation Promotion Act;

4. A corporation of which at least one half of annual costs for research and development is contributed or subsidized by the State, local governments, or public corporations or quasi-governmental institutions referred to in Article 5 of the Act on the Management of Public Institutions;

5. A corporation established under the Act on the Establishment and Operation of Public Interest Corporations, which conducts business for the purpose of academic studies or of research, survey, development, or dissemination of scientific technology under Article 2 (1) 3 of the Enforcement Decree of that Act;

6. A public institution that has a business-affiliated research institute or a department exclusively dedicated to research and development under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act, among public institutions designated under Article 4 of the Act on the Management of Public Institutions;

7. A hospital certified as a research-oriented hospital under Article 15 (1) of the Health and Medical Service Technology Promotion Act;

8. Other institutes determined and publicly notified by the Minister of Science and ICT to support the commercialization of the outcomes of research and development, which are corporations equivalent to those under subparagraphs 1 through 7.

[This Article Added on Jul. 26, 2012]

Article 3-2 #

Deleted. <Mar. 26, 2010>

Article 4 #

Deleted. <Jul. 26, 2012>

Article 5(Methods of designating research and development zones, and requirements for designation) #

(1) A special research and development zone under Article 4 (1) and (5) of the Act (hereinafter referred to as "special zone") may be designated by either of the following methods, considering its scale, etc.:

1. Creating and extensively developing a special zone in a relatively large area;

2. Creating and intensively developing a special zone in a small area.

(2) Specific requirements for designating an area as a special zone by the method prescribed in paragraph (1) 1 shall be as follows:

1. The following institutions shall be located in the area to be designated as a special zone:

(a) At least 40 research institutes in the fields of science and technology, including at least three national research institutes or government-funded research institutes (including branches of such institutes);

(b) At least three universities, industrial colleges, or technical colleges established under the Higher Education Act and educational institutions (only applicable to those with departments of natural sciences or engineering; hereinafter referred to as "universities") with bachelor or higher courses established under other statutes;

2. A council shall exist for collaboration among universities, research institutes, and businesses;

3. An industrial complex for mass production shall exist in the relevant area or in the vicinity thereof;

4. The proportions of funds invested in research and development and of registered patents shall be higher than those in other areas;

5. The relevant area shall have adequate transportation and telecommunications facilities, infrastructure, living conditions, etc. for easy exchange and cooperation with foreign countries;

6. Research institutes in the relevant area shall have internationally competitive technology.

(3) Specific requirements for designating an area as a special zone by the method prescribed in paragraph (1) 2 shall be as follows: <Amended on Jun. 22, 2021>

1. At least one public research institute that meets the requirements determined and publicly notified by the Minister of Science and ICT shall exist in the area to be designated as a special zone;

2. The agreement determined and publicly notified by the Minister of Science and ICT shall be entered into between the institute referred to in subparagraph 1 and the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor having jurisdiction over the relevant area (hereinafter referred to as the "Mayor/Do Governor");

Article 6(Public notice of designation of special zones) #

(1) The Minister of Science and ICT shall publicly notify the following matters in the Official Gazette pursuant to Article 4 (7) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. The name, location and surface area of a special zone;

2. The purpose for which a special zone is designated;

3. Methods of perusing relevant books;

4. A 1:5,000 topographical map indicating the location of the zone, the boundary of the zone, a land register, and forests and fields;

5. The status of lot numbers and classification of land category in the zone;

6. Other matters deemed necessary by the Committee for Special Research and Development Zones established under Article 7 of the Act.

(2) Where the designation of a special zone is fully or partially canceled under Article 5 (4) or 5-2 (3) of the Act, the Minister of Science and ICT shall give public notice of the following matters in the Official Gazette: <Amended on Mar. 23, 2013; Jul. 26, 2017; Oct. 16, 2018; Mar. 16, 2021>

1. The name, location and surface area of a special zone to be canceled;

2. Grounds for the cancellation of designation as a special zone;

3. Methods of perusing relevant books;

4. A 1:5,000 topographical map indicating the location of the zone, the boundary of the zone, a land register, and forests and fields;

5. The status of lot numbers and classification of land category in the zone;

[This Article Added on Jul. 26, 2012]

Article 6-2(Alteration of special zones) #

(1) Pursuant to Article 4-2 (1) of the Act, the Mayor/Do Governor may request the Minister of Science and ICT to alter a special zone, following a change in the area or location of the special zone, to the extent that such alteration does not cause any change in the objectives of the special zone.

(2) "Where a modification is made to any minor matters specified by Presidential Decree" in the proviso of Article 4-2 (2) of the Act means any of the following: <Amended on May 14, 2024>

1. A correction of an error in the area, due to a mistake, etc., or of such an error as a discrepancy in boundaries;

2. A change in the area or location of a special zone, following the relocation or extension of the building site directly used by an institution referred to in Article 5 (2) 1 or an institution falling under Article 5 (3) 1; provided, in cases of relocation of the building site, a modification may be made only where the requirements under Article 4 (2) 1 of the Act are made stricter.

3. Changes in the area or location of a special zone, following changes in the special zone development plan due to the reasons in Article 7-2 (4) 1 or 4;

[This Article Added on Oct. 16, 2018]

Article 7(Comprehensive plans to promote special zones) #

(1) "Retired scientists and engineers prescribed by Presidential Decree" in Article 6 (2) 5-2 of the Act means scientists and engineers as defined in subparagraph 1 of Article 2 of the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to Science and Technology who have been engaged in research and development and technology innovation activities in any of the following enterprises and entities for at least 20 years and are retired therefrom (including persons scheduled to retire from any of the enterprises and entities): <Added on Apr. 15, 2025>

1. Advanced technology enterprise;

2. Public research institute;

3. Research-based spin-off company;

4. Foreign research institute;

5. Research institute, etc. as defined in subparagraph 3 of Article 2 the Act on the Honorable Treatment of and Support for Persons of Distinguished Service to Science and Technology.

(2) Upon receipt of a request for consultation made under Article 6 (3) of the Act, the heads of related central administrative agencies and the competent Mayor/Do Governor shall submit their opinions within 20 days. <Amended on May 8, 2018; Apr. 15, 2025>

(3) Where the Minister of Science and ICT finalizes or revises the comprehensive plan to promote special zones (hereinafter referred to as "comprehensive plan to promote special zones") formulated under Article 6 (1) of the Act in accordance with Article 6 (3) of the Act, he or she shall publicly notify the grounds therefor and details thereof. <Amended on Mar. 23, 2013; Jul. 26, 2017; Apr. 15, 2025>

(4) The Minister of Science and ICT shall examine the outcomes of implementation of the comprehensive plan to promote special zones every year and shall notify the Committee for Special Research and Development Zones of the results. <Added on Jun. 22, 2021; Apr. 15, 2025>

[This Article Added on Jul. 26, 2012]

Article 7-2(Special zone development plans) #

(1) "Matters prescribed by Presidential Decree" in Article 6-2 (2) 16 of the Act means the following:

1. The period for implementation of a special zone development project (hereinafter referred to as a "special zone development project") prescribed in Article 6-2 (2) 4 of the Act;

2. A plan for connected development between areas subject to a special zone development project;

3. A plan for cultural facilities, parks, and greenbelts;

4. An urban landscape plan;

5. A plan for underground utilities, such as utility tunnels;

6. Matters concerning major facilities to be built in a special zone and standards for installing them;

7. Feasibility study of an infrastructure plan, such as major social overhead capital necessary for the development of a special zone.

(2) When the Mayor/Do Governor requests the formulation of a special zone development plan pursuant to Article 6-2 (3) or (4) of the Act, he or she shall submit a written request for the development plan containing the matters referred to in the subparagraphs of paragraph (2) of that Article to the Minister of Science and ICT, along with his or her review opinion. <Added on Jun. 22, 2021>

(3) Upon receipt of the proposal of a special zone development plan under Article 6-2 (4) of the Act, the Mayor/Do Governor shall examine related laws, the validity of the special zone development project, etc. and shall notify the relevant proposer of the results thereof in writing within three months from the date of receipt of the proposal. <Added on Jun. 22, 2021>

(4) "Where he or she intends to revise any minor matter prescribed by Presidential Decree" in the proviso of Article 6-2 (6) of the Act means any of the following (limited to cases where it does not violate any other subparagraph): <Amended on Nov. 4, 2014; Jun. 22, 2021; Jul. 23, 2024>

1. Any of the following items:

(a) A change in the area of a special zone development project or the area for each use of a land use plan by less than 10 percent (if the area of a special zone development project is at least 300,000 square meters, is shall be less than 30,000 square meters);

(b) A change in the size of each facility in a major infrastructure plan by less than 50 percent;

Article 7-3(Exception of consultation in developing regions without special zone development plans) #

"Permission, authorization, etc. of small scale development prescribed by Presidential Decree, including building permission granted under Article 11 of the Building Act" in the proviso of Article 6-3 of the Act means any of the following permission, authorization, designation, approval, etc.:

1. Building permission under Article 11 of the Building Act, a building report under Article 14 of that Act, permission for revision or reporting of revision under Article 16 of that Act, permission for, or reporting of, the change of use under Article 19 of that Act, permission or reporting of a temporary building under Article 20 of that Act, reporting of the commencement of construction works under Article 21 of that Act and approval for use of a building under Article 22 of that Act;

2. Permission for development activities (only applicable to where the surface area of land subject to development is less than 10,000 square meters) under Article 56 of the National Land Planning and Utilization Act.

[This Article Added on Jul. 26, 2012]

Article 8(Organization of Committee for Special Research and Development Zones) #

(1) The Vice Chairperson of the Committee for Special Research and Development Zones established under Article 7 of the Act (hereinafter referred to as the "Committee on Special Research and Development Zones") shall be elected by and from among the members commissioned under paragraph (5) of that Article (hereinafter referred to as "commissioned members"). <Amended on Mar. 16, 2021>

(2) "Persons prescribed by Presidential Decree" in Article 7 (4) of the Act means the following persons; in such cases, where an agency has two or more public officials at the vice-ministerial rank, such person shall be a public official at the vice-ministerial rank designated by the head of the relevant agency: <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017; Mar. 16, 2021; Jun. 28, 2022>

1. The Vice Minister of Economy and Finance;

2. Deleted; <Jun. 28, 2022>

3. The Vice Minister of the Interior and Safety;

4. Deleted; <Jun. 28, 2022>

5. The Vice Minister of Trade, Industry and Energy;

6. Deleted; <Jun. 28, 2022>

7. Deleted; <Jun. 28, 2022>

8. Deleted; <Jun. 28, 2022>

9. The Vice Minister of Land, Infrastructure and Transport;

10. The Vice Minister of SMEs and Startups.

(3) The commissioned members of the Committee for Special Research and Development Zones shall be selected by the Chairperson, taking gender equality into consideration, from among the following persons: <Amended on Mar. 16, 2021>

1. Experts in fields related to special zones, such as research and development, environment, foreign investment, commercialization of technologies, corporate management, and urban policies;

2. Demonstration of new technology (referring to demonstration under the main clause of Article 3-3 (1) of the Act: hereinafter the same shall apply) and experts in relevant regulation;

(4) The term of office of commissioned members shall be two years. <Amended on Mar. 16, 2021>

(5) Where a commissioned member’s position becomes vacant, a new member shall be commissioned, and the term of office of the new member shall be counted from the date of being commissioned.

Article 9(Operation of Committee for Special Research and Development Zones) #

(1) The Chairperson of the Committee for Special Research and Development Zones shall represent the Committee and have general supervision and control of its affairs. <Amended on Mar. 16, 2021>

(2) The vice chairperson of the Committee for Special Research and Development Zones shall assist the Chairperson and shall act on behalf of the Chairperson if he or she is unable to perform his or her duties due to any unavoidable cause. <Amended on Mar. 16, 2021>

(3) The Chairperson of the Committee for Special Research and Development Zones shall convene and preside over meetings of the Committee. <Amended on Mar. 16, 2021>

(4) When the Chairperson of the Committee for Special Research and Development Zones intends to convene a meeting of the Committee, he or she shall notify members of the date, time, venue, objectives, etc. of the meeting in writing by not later than seven days prior to the opening of the meeting; provided, if there is any urgent reason, the Chairperson may notify committee members thereof by the day before the meeting is held. <Amended on Mar. 16, 2021>

(5) A majority of the members of the Committee for Special Research and Development Zones shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present. <Amended on Mar. 16, 2021>

(6) The Committee for Special Research and Development Zones shall have one secretary to conduct its affairs and the Minister of Science and ICT shall appoint the secretary from among public officials who are members of the Senior Executive Service belonging to the Ministry of Science and ICT or public officials of Grade III. <Amended on Mar. 23, 2013; Jul. 26, 2017; Mar. 16, 2021>

[This Article Added on Jul. 26, 2012]

Article 9-2(Dismissal of member of Committee for Special Research and Development Zones) #

In any of the following cases, the Chairperson of the Committee for Special Research and Development Zones may dismiss the relevant member of the Committee:

1. Where a commissioned member is no longer unable to perform his or her duties due to mental or physical disability;

2. Where a commissioned member engages in any misconduct in connection with his or her duties;

3. Where a commissioned member is deemed unsuitable to serve as a member due to neglect of duties, loss of dignity, or for other similar reasons;

4. Where a commissioned member voluntarily declares that it is impracticable for the member to perform his or her duties;

5. Where a commissioned member fails to refrain voluntarily although any subparagraph of Article 9-3 (1) applies to him or her.

[This Article Added on Mar. 16, 2021]

Article 9-3(Exclusion of, challenge to, or refrainment by members of Committee for Special Research and Development Zones) #

(1) Where a member of the Committee for Special Research and Development Zones falls under any of the following cases, he or she shall be excluded from deliberations and resolutions on the agenda item at issue:

1. Where the member or his or her former or current spouse is a party to the agenda item at issue (including the executive officer if the party is a corporation or organization; the same shall apply in this subparagraph and subparagraph 2) or where the member shares certain rights and obligations with such party;

2. Where the member is or was a relative of a party to the agenda item at issue;

3. The member has testified, made a statement, provided advice or services, or conducted research, a survey, or appraisal regarding the agenda item at issue;

4. Where the member or the corporation, organization, etc. to which such member belongs is or was an agent for a party to the agenda item at issue;

5. Where the member has worked for a party to the agenda item at issue, as an executive officer or employee, during the recent three years.

(2) If the circumstances indicate that it would be difficult for a party to the agenda item at issue to expect fair deliberations and resolutions from a member of the Committee for Special Research and Development Zones, the party may file a request to challenge the committee member with the Committee on Special Research and Development Zones; and the Committee on Special Research and Development Zones shall determine whether to accept the request by resolution. In such cases, the committee member to whom the challenge has been made shall not participate in the resolution.

(3) Where a member of the Committee for Special Research and Development Zones falls under any ground for exclusion set forth in the subparagraphs of paragraph (1), he or she shall voluntarily refrain from deliberations and resolutions on the agenda item at issue.

[This Article Added on Mar. 16, 2021]

Article 9-4(Composition and operation of Expert Committee on Regulatory Exemptions for Special Research and Development Zones) #

(1) An Expert Committee on Regulatory Exceptions for Special Research and Development Zones (hereinafter referred to as the "Expert Committee") shall be established within the Committee for Special Research and Development Zones to conduct preliminary reviews or deliberate and decide on the following matters in accordance with Articles 7 (7), 16-2 (7), and 16-7 (7) of the Act: <Amended on Apr. 15, 2025>

1. Preliminary review of the following matters:

(a) Regulatory exemptions for demonstration under Article 16-2 (1) of the Act (hereinafter referred to as "regulatory exemptions for demonstration");

(b) Temporary permission under Article 16-7 (1) of the Act;

2. Deliberation and resolution on the following matters:

(a) Regulatory exemptions for demonstration under Article 16-2 (7) of the Act;

(b) Temporary permission under Article 16-7 (7) of the Act.

(2) The Expert Committee shall consist of up to 20 members, including one chairperson.

(3) The chairperson of the Expert Committee shall be designated by the chairperson of the Committee for Special Research and Development Zones from among the members of the Expert Committee in comprehensive consideration of professional knowledge, experience, etc.

(4) Members of the Expert Committee shall be commissioned by the chairperson of the Committee for Special Research and Development Zones from among the following persons, taking gender equality into consideration. In such cases, at least one member under subparagraph 1 shall be included, and the ratio of members under each of the following subparagraphs shall be determined by the Committee for Special Research and Development Zones: <Amended on Apr. 15, 2025>

1. A member of the Committee for Special Research and Development Zones;

2. A person who has at least five years’ work experience in an enterprise and a research and development institute in the field of research and development of new technologies and relevant regulation;

3. A person who has at least five years’ work experience as an expert, such as a professor, attorney-at-law, or professional engineer, having abundant knowledge and experience in the fields of new technologies and relevant regulation;

Article 9-5(Dismissal, exclusion, challenge, or recusal of members of Expert Committee on Regulatory Exemptions for Special Research and Development Zones) #

The provisions of Articles 9-2 and 9-3 shall apply mutatis mutandis to the dismissal, exclusion, challenge, or refrainment of a member of the Expert Committee. In such cases, the "Committee for Special Research and Development Zones" shall be construed as the "Expert Committee".

[This Article Added on Mar. 16, 2021]

[Title Amended on Sep. 19, 2023]

Article 10(Hearing of opinions) #

(1) The head of a central administrative agency who is not an ex officio member of the Committee for Special Research and Development Zones may appear before the Committee and speak at the meeting, if necessary. <Amended on Mar. 16, 2021>

(2) Where it is deemed necessary for deliberation, the Committee for Special Research and Development Zones may require the Mayor/Do Governor or interested parties to appear before the Committee and hear their opinions. <Amended on Mar. 16, 2021>

(3) Where it is necessary for a preliminary expert review of matters relating to regulatory exemptions for demonstration and temporary permission, the Expert Committee may hear the opinions of public officials of the central administrative agencies or local governments that are related to the new technology subject to regulatory exemptions for demonstration and other related regulatory affairs, experts in the relevant field, or interested parties. <Added on Mar. 16, 2021; Sep. 19, 2023>

[This Article Added on Jul. 26, 2012]

Article 11(Allowances) #

The Committee for Special Research and Development Zones or Expert Committee may reimburse their members, etc. for allowances and travel expenses within the budget; provided, the foregoing shall not apply to a committee member who is a public official appears before the Committee in direct connection with the affairs under his or her jurisdiction. <Amended on Mar. 26, 2021>

[This Article Added on Jul. 26, 2012]

Article 12 #

Deleted. <Mar. 16, 2021>

Article 12-2(Evaluation of performance of each special zone) #

(1) The Minister of Science and ICT may formulate a master plan to conduct a comprehensive evaluation for each special zone under Article 7-2 of the Act. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(2) Where the Minister of Science and ICT conducts a comprehensive evaluation for each special zone pursuant to Article 7-2 (1) of the Act, he or she shall take into consideration the performance of projects in each special zone, the degree of satisfaction of members constituting each special zone, a related local government’s contribution to the development of each special zone and other matters. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(3) Where the Minister of Science and ICT conducts a comprehensive evaluation pursuant to Article 7-2 (1) of the Act, he or she shall notify the relevant local government of the results of the comprehensive evaluation and shall disclose the results thereof on the web-site, etc. pursuant to Article 7-2 (2) of the Act. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(4) Except as provided in paragraphs (1) through (3), matters necessary for criteria and procedures for comprehensive evaluations, methods for disclosure of the results of comprehensive evaluations, and other matters shall be prescribed and publicly notified by the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Added on Jul. 26, 2012]

[Previous Article 12-2 moved to Article 12-3 <Jul. 26, 2012>]

Article 12-3(Requirements for designation as advanced technology enterprises) #

(1) "Field of technology prescribed by Presidential Decree" in Article 9 (1) 1 of the Act means either of the following fields: <Amended on Mar. 23, 2013; Mar. 12, 2019; Mar. 16, 2021; Sep. 19, 2023; Apr. 15, 2025>

1. Advanced technologies and advanced products publicly notified by the Minister of Trade, Industry and Energy pursuant to Article 5 (1) of the Industrial Development Act;

2. Advanced technologies and advanced products publicly notified by the Minister of Science and ICT, taking into consideration technological intensity, the speed of technological innovation, the effect of creating high added value, etc.;

3. New technology which is designated for regulatory exemptions for demonstration pursuant to Article 16-2 (3) of the Act or paragraph (7) of that Article or granted temporary permission pursuant to Article 16-7 (4) of the Act or paragraph (7) of that Article, and new services or products utilizing the new technology.

(2) "Standards prescribed by Presidential Decree" in Article 9 (1) 4 of the Act means the following standards. In such cases, the annual gross sales that apply to subparagraphs 1 and 2 shall be the total sales for the four quarters immediately preceding a quarter in which an application for designation as an advanced technology enterprise is filed, and if at least two quarters have passed but one year has not passed since the foundation of a corporation, the annual gross sales of the corporation shall be the total sales for quarters immediately preceding a quarter in which an application for designation as an advanced technology enterprise is filed: <Amended on Mar. 12, 2019>

1. The ratio of a company’s research and development expenses (referring to expenses eligible for a tax credit for research and manpower development expenses classified in Appendix 6 of the Enforcement Decree of the Restriction of Special Taxation Act and expenses for the acquisition of research and testing facilities to be directly used by a department exclusively responsible for research and development under that Appendix; hereinafter the same shall apply) to its annual gross sales shall not be lower than the applicable rate among the following rates; provided, the upper limit of expenses for the acquisition of research and testing facilities shall be 60 percent of the applicable rate among the following rates:

(a) Where annual gross sales are less than 5 billion won: 5 percent;

(b) Where annual gross sales are not less than 5 billion won but are less than 20 billion won: 4 percent;

Article 12-4(Procedures for designation as advanced technology enterprises) #

(1) A company that intends to be designated as an advanced technology enterprise pursuant to Article 9 (1) of the Act shall file an application for designation as an advanced technology enterprise, accompanied by documents evidencing that it meets all the requirements referred to in Article 9 (1) of the Act, with the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(2) Upon receipt of an application for designation as an advanced technology enterprise filed under paragraph (1), the Minister of Science and ICT shall designate the relevant company as an advanced technology enterprise if it is deemed to meet all the requirements referred to in Article 9 (1) of the Act; and shall issue a letter of designation as an advanced technology enterprise. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(3) The designation as an advanced technology enterprise granted under paragraph (2) shall be valid for two years from the date of designation.

(4) Except as provided in paragraphs (1) through (3), matters necessary for procedures for designation as advanced technology enterprises shall be prescribed by Decree of the Ministry of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Added on Jul. 26, 2012]

[Moved from Article 12-3; previous Article 12-4 moved to Article 12-5 <Jul. 26, 2012>]

Article 12-5(Revocation of designation as advanced technology enterprises) #

"Period prescribed by Presidential Decree" in Article 9-2 (1) 3 of the Act means three months.

[This Article Added on Jul. 26, 2012]

[Moved from Article 12-4 <Jul. 26, 2012>]

Article 13(Registration of research-based spin-off companies) #

(1) "Company which shall meet the standards prescribed by Presidential Decree" in Article 9-3 (1) 3 of the Act means a company specializing in new technology start-up, at least 50 percent of its stocks (including shares; hereinafter the same shall apply) is held by a public research institute.

(2) Any institution or company referred to in the subparagraphs of Article 9-3 (1) of the Act may invest any of the following assets, information or rights to establish a research-based spin-off company:

1. An intellectual property right and knowhow;

2. Cash;

3. Real estate;

4. Research facilities and equipment and materials;

5. Other transferable assets.

(3) An institution or company that intends to file for registration as a research-based spin-off company under Article 9-3 (2) of the Act shall file an application for registration as a research-based spin-off company in the form prescribed by Decree of the Ministry of Science and ICT, accompanied by the following documents, with the Minister of Science and ICT. In such cases, the Minister of Science and ICT shall confirm the corporate registration certificate through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. The articles of incorporation;

2. Documents concerning the status of human resources and facilities held;

3. Documents concerning the stock holding ratios and details thereof;

4. The business plan (including the feasibility study).

(4) Where any of the following is revised among matters registered under paragraph (3), a research-based spin-off company shall file an application for registration of revision, accompanied by documents evidencing such revision, with the Minister of Science and ICT, within 30 days from the date of revision pursuant to the latter part of Article 9-3 (2) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. The trade name;

2. Location of the main office;

3. Its representative;

4. Stock holding ratio as prescribed in Article 9-3 (3) 1 of the Act.

Article 14(Use of profits) #

(1) The head of a public research institute shall distribute the rewards under Article 9-3 (5) of the Act, out of profits from investment in a research-based spin-off company and retained earnings (hereafter in this Article referred to as "profits, etc."), at either of the following rates determined by considering the amount of accrued profits, etc.:

1. Rewards to personnel and departments that have contributed to the development of technology: Not less than 50/100 but less than 90/100 of profits, etc.;

2. Rewards to personnel and departments that have contributed to commercialization: Not less than 10/100 but less than 50/100 of profits, etc.

(2) The head of a public research institute may formulate internal guidelines for matters necessary for payment of rewards under Article 9-3 (5) of the Act.

[This Article Wholly Amended on Oct. 16, 2018]

Article 14-2(Corrective orders) #

(1) Where the Minister of Science and ICT issues a corrective order to a research-based spin-off company pursuant to Article 9-3 (8) of the Act, he or she shall order the research-based spin-off company to correct the relevant violation within a period not exceeding six months.

(2) Where the Minister of Science and ICT issues a corrective order pursuant to paragraph (1), he or she shall do so in writing, specifying the following:

1. Details of the violation;

2. Details of the corrective order;

3. Period for relevant correction;

4. Procedures for raising objections to the corrective order.

(3) Before issuing a corrective order pursuant to paragraph (1), the Minister of Science and ICT shall provide the relevant research-based spin-off company subject to the corrective order with an opportunity to submit explanatory materials or to state its opinion.

(4) Except as otherwise provided in paragraphs (1) through (3), matters necessary for corrective orders shall be determined and publicly notified by the Minister of Science and ICT.

[This Article Added on Jun. 28, 2022]

[Previous Article 14-2 moved to Article 14-3 <Jun. 28, 2022>]

Article 14-3(Revocation of registration of research-based spin-off companies) #

(1) "If it fails to meet the stock holding ratio specified by Presidential Decree" in Article 9-4 (1) 2 of the Act means where the ratio of stock of the relevant research-based spin-off company held solely or jointly by an institution or company referred to in any subparagraph of Article 9-3 (1) of the Act ceases to reach the ratio specified in any subparagraph of Article 13 (5) (or 5 percent, if a registered research-based spin-off company has increased its capital for investment in the development of technology, etc.). <Amended on Nov. 4, 2014; May 8, 2018, Jun. 22, 2021>

(2) Where a research-based spin-off company’s stock holding ratio is not less than five percent under the proviso, with the exception of the subparagraphs, of Article 9-4 (1) of the Act, the revocation of registration of the research-based spin-off company may be suspended for five years from the date when the stock holding ratio becomes lower than the ratio specified in paragraph (1). <Added on Nov. 4, 2014>

(3) "Period prescribed by Presidential Decree" in Article 9-4 (1) 5 of the Act means three months. <Amended on Nov. 4, 2014>

[This Article Added on Jul. 26, 2012]

[Moved from Article 14-2 <Jun. 28, 2022>]

Article 15(Strengthening exchanges and cooperation among universities, research institutes, and companies in special zones) #

"Affairs prescribed by Presidential Decree" in Article 10 (2) 11 of the Act means any of the following:

1. Joint research and development among universities, research institutes and enterprises;

2. Promotion of transactions of technologies held by universities and research institutes.

[This Article Added on Jul. 26, 2012]

Article 16(Methods for entering into contracts) #

(1) A contract entered into under Article 12 (1) of the Act shall include:

1. A research plan;

2. A summary of the research task;

3. Use and management of research and development funds and the methods for the payment thereof;

4. Reporting of the outcomes of research and development;

5. Reversion and utilization of the outcomes of research and development;

6. Collection of royalties for the utilization of the outcomes of research and development;

7. Commercialization of the outcomes of research and development;

8. Measures to be taken based on evaluations of the outcomes of research and development;

9. Revision and cancellation of the contract;

10. Measures to be taken for any violation of the contract;

11. Other matters involved in research and development.

(2) The head of an institution that has entered into a contract pursuant to Article 12 (1) of the Act may entrust any institution referred to in the subparagraphs of Article 14 (1) of the Basic Research Promotion and Technology Development Support Act or any third person with some of the relevant research and development tasks to perform such tasks.

[This Article Added on Jul. 26, 2012]

Article 17(Payment, use, and management of contributions) #

Article 13 of the National Research and Development Innovation Act shall apply mutatis mutandis to the payment, use and management of contributions under Article 12 (3) of the Act. <Amended on Dec. 29, 2020>

[This Article Added on Jul. 26, 2012]

Article 18(Use of, benefiting from, or lending of, state property) #

(1) Use fees and rents for State property under Article 15 (4) of the Act shall be an amount calculated by multiplying the value of the relevant land by the rate of at least one percent.

(2) The deadline for payment of the purchase price of State property may be deferred within one year or such purchase price may be paid in installments within 20 years under Article 15 (5) of the Act. In such cases, the interest rate that applies to the installment period for payment shall not exceed four percent a year.

[This Article Added on Jul. 26, 2012]

Article 19(Special cases concerning the Monopoly Regulation and Fair Trade Act) #

(1) Where the Minister of Science and ICT intends to be eligible for special cases as prescribed in Article 16 (1) of the Act, he or she shall file an application stating the following matters with the Fair Trade Commission: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. Necessity for application of special provisions;

2. The name, address (where a participating business entity is a corporation, referring to the name and address of the corporation and the name and address of its representative) and seat of a place of business of business entities who intend to participate in joint research and technical development (hereinafter referred to as "participating business entity");

3. Details of joint research and technical development and relationship to projects included in the comprehensive plan to promote special zones;

4. A period intended for joint research and technical development;

5. Details of projects of participating business entities.

(2) An application filed under paragraph (1) shall be accompanied by the following documents: <Amended on Jan. 5, 2021; Dec. 28, 2021>

1. Business reports, statements of financial position, and statements of profit and loss of participating business entities for the past two years;

2. A copy of the agreement for joint research and technical development;

3. Documents evidencing that joint research and technical development meets requirements for authorization under Article 45 (1) 2 of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act.

[This Article Added on Jul. 26, 2012]

Article 19-2(Application for regulatory exemptions for demonstration) #

(1) Deleted. <Sep. 19, 2023>

(2) Deleted. <Sep. 19, 2023>

(3) A person who intends to apply for regulatory exemptions for demonstration pursuant to Article 16-2 (1) of the Act shall submit to the Minister of Science and ICT an application for regulatory exemptions for demonstration prescribed by Decree of the Ministry of Science and ICT, along with the following documents: <Amended on Sep. 19, 2023>

1. A plan for regulatory exemptions for demonstration that includes all of the following matters relating to regulatory exemptions for demonstration (hereinafter referred to as the "plan for regulatory exemptions for demonstration"):

(a) Name and details of a new technology for which an application for regulatory exemptions for demonstration is sought;

(b) Scope, methods, and schedules for demonstration of the new technology;

(c) Details of and periods for regulatory exceptions that are necessary for demonstration of the new technology and relevant statutes and regulations;

(d) Financial and technical capabilities of the applicant for regulatory exemptions for demonstration;

2. Documents substantiating that the new technology for which regulatory exemptions for demonstration are sought falls within any subparagraph of Article 16-2 (1) of the Act;

3. A plan for ensuring safety for obtaining regulatory exemptions for demonstration (hereinafter referred to as the "plan for ensuring safety") which includes the following matters:

(a) Whether there exist persons who are to use a new technology, for which regulatory exemptions for demonstration are sought, and persons who may be affected by the technology (hereinafter referred to as "users, etc.");

(b) Where such users, etc. exist, the details and sizes of them and methods for protecting them;

4. Other documents deemed necessary by the Minister of Science and ICT for designation for regulatory exemptions for demonstration.

(4) Where the Minister of Science and ICT deems it necessary to supplement the contents of an application for regulatory exemptions for demonstration submitted under paragraph (3), he or she may request the supplementation of the application, specifying a reasonable period.

Article 19-3(Designation of regulatory exemptions for demonstration) #

(1) Where the Minister of Science and ICT makes a designation or refuses to make a designation for regulatory exemptions for demonstration under Article 16-2 (3) of the Act or paragraph (7) of that Article, he or she shall notify the relevant applicant for regulatory exemptions for demonstration within seven days from the date on which deliberation and resolution thereon is made by the Committee for Special Research and Development Zones or the Expert Committee. <Amended on Sep. 19, 2023; Apr. 15, 2025>

(2) Upon the designation of regulatory exemptions for demonstration pursuant to Article 16-2 (3) of the Act or paragraph (7) of that Article, the Minister of Science and ICT shall issue a certificate of designation of regulatory exemptions for demonstration prescribed by Ordinance of the Ministry of Science and ICT, stating the following matters, to the relevant applicant for designation of regulatory exemptions for demonstration, and shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT. <Amended on Sep. 19, 2023; Apr. 15, 2025>

1. Number and date of granting;

2. Trade name (title) and the representative's name;

3. Location of the main office;

4. Name of the new technology for which the regulatory exemptions for demonstration are being sought;

5. Areas in which the regulatory exemptions for demonstration are granted;

6. Main details of the regulatory exemptions for demonstration;

7. Term of validity of the regulatory exemptions for demonstration;

8. Conditions for designation for regulatory exemptions for demonstration (applicable only to where conditions are attached pursuant to the latter part of Article 16-2 (3) of the Act).

(3) Except as provided in paragraphs (1) and (2), matters necessary for the designation of regulatory exemptions for demonstration shall be determined and publicly notified by the Minister of Science and ICT. < Added on Sep. 19, 2023>

[This Article Added on Mar. 16, 2021]

Article 19-4(Application for re-deliberation on regulatory exemptions for demonstration) #

(1) A person who intends to apply for re-deliberation on regulatory exemptions for demonstration pursuant to Article 16-2 (8) of the Act shall file with the Minister of Science and ICT an application for re-deliberation on regulatory exemptions for demonstration prescribed by Ordinance of the Ministry of Science and ICT, along with the documents specified in the subparagraphs of Article 19-2 (3) ICT within 30 days from the date he or she is notified under Article 19-3 (1). <Amended on Apr. 15, 2025>

(2) If it is deemed necessary to supplement the content of an application for re-deliberation on regulatory exemptions for demonstration submitted under paragraph (1), the Minister of Science and ICT may request the application to be supplemented within a reasonable period of time.

(3) The Minister of Science and ICT shall submit an application for re-deliberation on regulatory exemptions for demonstration submitted pursuant to paragraph (1) (including where such application is supplemented pursuant to paragraph (2)), to the Committee on Special Research and Development Zones.

(4) The Minister of Science and ICT may return an application for re-deliberation on regulatory exemptions for demonstration if the application falls under any of the following cases:

1. Where it is obvious that the details of such application are prepared by fraud or other improper means;

2. Where it is obvious that the details of such application do not correspond to any of the cases prescribed in the subparagraphs of Article 16-2 (1) of the Act;

3. Where the applicant fails to comply with a request for supplementation under paragraph (2).

(5) Except as provided in paragraphs (1) through (4), matters necessary for re-deliberation on regulatory exemptions for demonstration shall be determined and publicly notified by the Minister of Science and ICT.

[This Article Added on Sep. 19, 2023]

[Previous Article 19-4 moved to Article 19-5 <Sep. 19, 2023>]

Article 19-5(Term of validity of regulatory exemptions for demonstration) #

(1) When the Minister of Science and ICT determines the term of validity of regulatory exemptions for demonstration pursuant to the former part of Article 16-2 (4) of the Act, he or she shall take into consideration the characteristics and details of the regulatory exemptions for demonstration for which an application is filed under Article 19-2 (3).

(2) A person who intends to apply for an extension of the term of validity pursuant to the latter part of Article 16-2 (4) of the Act shall submit to the Minister of Science and ICT an application for extension of the effective period for regulatory exemptions for demonstration prescribed by Decree of the Ministry of Science and ICT, along with the following documents: <Amended on Sep. 19 2023>

1. A copy of a certificate of designation for regulatory exemptions for demonstration as prescribed in Article 19-3 (2);

2. A written statement on the grounds for extension of the term of validity for regulatory exemptions for demonstration and documents substantiating the grounds for extension;

3. Documents including current status of use of regulatory exemptions for demonstration and reports on the use thereof;

4. A written plan for renewal or purchase of liability insurance under the main clause of Article 16-3 (7) of the Act (such plan shall be submitted only where a person intending to apply for extension of the term of validity for regulatory exemptions for demonstration renews or newly purchases such liability insurance pursuant to Article 19-13 (2));

5. A written plan for the extension of a compensation plan pursuant to the proviso of Article 16-3 (7) of the Act (to be submitted only where it is necessary to extend such compensation plan due to the extension of the term of validity for regulatory exemptions for demonstration);

6. Documents stating the occurrence of safety accidents and compensation for damage, etc. caused by demonstration of the new technology;

7. Other documents that the Minister of Science and ICT deems necessary for determining the appropriateness of extension of the term of validity of regulatory exemptions for demonstration.

(3) Where the Minister of Science and ICT extends the term of validity in accordance with an application for extension of the term of validity under paragraph (2), he or she shall issue a certificate of designation for regulatory exemptions for demonstration as prescribed by Decree of the Ministry of Science and ICT, stating the matters referred to in the subparagraphs of Article 19-3 (2), to the applicant for extension of the term of validity, and shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT.

Article 19-6(Detailed criteria for examination of regulatory exemptions for demonstration) #

Detailed matters relating to designation of regulatory exemptions for demonstration pursuant to Article 16-2 (6) 5 of the Act shall be as follows: <Amended on Sep. 19, 2023>

1. Specificity of the scope and method of demonstration of the new technology;

2. Financial and technical capabilities of the applicant for the regulatory exemptions for demonstration;

3. Ripple effects of the new technology subject to regulatory exemptions for demonstration;

4. Means to protect users, etc.;

5. Other matters deemed necessary by the Committee for Special Research and Development Zones for designation of regulatory exemptions for demonstration, taking into consideration the characteristics of such regulatory exemptions for demonstration.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-5; previous Article 19-6 moved to Article 19-7 <Sep. 19, 2023>]

Article 19-7(Designation of testing and inspection agencies for designation of regulatory exemptions for demonstration) #

"Institution or organization having professional human resources and technologies prescribed by Presidential Decree" in Article 16-2 (10) of the Act means any of the following institutions and organizations: <Amended on Oct. 19, 2021; Sep. 19, 2023; Apr. 15, 2025>

1. A public research institute;

2. A professional research business entity reported under Article 6 (1) of the Research Industry Promotion Act;

3. Other institutions or organizations that meet the standards determined and publicly notified by the Minister of Science and ICT regarding professional human resources and technologies necessary for performing testing and inspection affairs for designation of regulatory exemptions for demonstration.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-6; previous Article 19-7 moved to Article 19-10 <Sep. 19, 2023>]

Article 19-8(Application for modification of regulatory exemptions for demonstration) #

(1) A person who intends to apply for modification of regulatory exemptions for demonstration under the main clause of Article 16-2 (11) of the Act shall submit to the Minister of Science and ICT a written application for modification of regulatory exemptions for demonstration prescribed by Ordinance of the Ministry of Science and ICT, along with the following documents: <Amended on Apr. 15, 2025>

1. A plan for modification of regulatory exemptions for demonstration;

2. Materials on the current status of use and records of utilization of regulatory exemptions for demonstration;

3. A written statement on the grounds for modification of regulatory exemptions for demonstration and materials evidencing the grounds for modification;

4. A written plan for the modification of the liability insurance or compensation plan referred to in Article 16-3 (7) of the Act (limited to cases where any details of the liability insurance or compensation plan are modified);

5. A copy of a certificate of designation of regulatory exemptions for demonstration;

6. Other documents deemed necessary by the Minister of Science and ICT for modification of regulatory exemptions for demonstration.

(2) Where the Minister of Science and ICT deems it necessary to supplement the details of an application for modification of regulatory exemptions for demonstration submitted under paragraph (1), he or she may request the details of an application to be supplemented within a reasonable period of time.

(3) Where an application for modification of regulatory exemptions for demonstration submitted under paragraph (1) (including the cases where an application is supplemented under paragraph (2)) falls under any of the following subparagraphs, the Minister of Science and ICT may return the application for modification of regulatory exemptions for demonstration:

1. Where it is obvious that the details of such application are prepared by fraud or other improper means;

2. Where it is obvious that the details of such application do not correspond to any of the cases prescribed in the subparagraphs of Article 16-2 (1) of the Act;

3. Where the applicant fails to comply with a request for supplementation under paragraph (2).

(4) Upon making a modification of regulatory exemptions for demonstration pursuant to Article 16-2 (11) of the Act, the Minister of Science and ICT shall issue a certificate of designation of regulatory exemptions for demonstration prescribed by Ordinance of the Ministry of Science and ICT, stating the following matters, to the relevant applicant for modification of regulatory exemptions for demonstration, and shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT. <Amended on Apr. 15, 2025>

Article 19-9(Request for legislative arrangements for regulatory exemptions for demonstration) #

(1) A person who intends to request legislative arrangements related to regulatory exemptions for demonstration pursuant to Article 16-2 (12) of the Act shall submit a request for legislative arrangements to the Minister of Science and ICT and the head of the relevant administrative agency, accompanied by the following documents: <Amended on Apr. 15, 2025>

1. Documents on the results of application of regulatory exemptions for demonstration, which include the following matters:

(a) Current status of implementation of plan according to a written plan for regulatory exemptions for demonstration;

(b) Current status of fulfillment of the conditions for designation of regulatory exemptions for demonstration (applicable only to cases where the conditions are attached pursuant to the latter part of Article 16-2 (3) of the Act);

(c) Current status of the occurrence of safety accidents and compensation for loss or damage in relation to the new technology services and products;

(d) Other reference materials necessary for determining the necessity of legislative arrangements and the direction of improvement of the statutes and regulations.

2. Any of the following documents (limited to cases where it is intended to continue demonstration for a period during which the term of validity of regulatory exemptions for demonstration is deemed not terminated under Article 16-2 (16) of the Act):

(a) A plan to renew or purchase liability insurance pursuant to the main clause of Article 16-3 (7) of the Act;

(b) A plan for the extension of a compensation plan under the proviso of Article 16-3 (7) of the Act;

(2) If it is deemed that the details of a written request for legislative arrangements submitted under paragraph (1) needs to be supplemented, the Minister of Science and ICT or the head of the relevant agency may request the person who has requested the legislative arrangements to submit additional materials.

(3) Where the head of the relevant agency reviews the necessity of the legislative arrangements pursuant to Article 16-2 (13) of the Act, he or she shall comprehensively consider the following matters: <Amended on Apr. 15, 2025>

1. The level of users’ benefits derived from demonstration of the new technology;

Article 19-10(Management and supervision of regulatory exemptions for demonstration) #

(1) Pursuant to Article 16-3 (1) of the Act, the Minister of Science and ICT and the heads of related central administrative agencies shall jointly manage and supervise the following matters: <Amended on Apr. 15, 2025>

1. Implementation of a written plan for regulatory exemptions for demonstration and a written plan for ensuring safety;

2. Fulfillment of the conditions for designation of regulatory exemptions for demonstration (applicable only to cases where the conditions are attached pursuant to the latter part of Article 16-2 (3) of the Act);

3. Other matters jointly deemed by the Minister of Science and ICT and the heads of related agencies to require management and supervision to facilitate the execution of regulatory exemptions for demonstration.

(2) A person who is granted regulatory exemptions for demonstration shall notify the users, etc. of the new technology of the following matters pursuant to Article 16-3 (2) of the Act: <Amended on Sep. 19, 2023>

1. Matters specified in Article 19-3 (2) 2 and 4 through 8;

2. Details of the liability insurance or compensation plan referred to in Article 16-3 (7) of the Act.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-7; previous Article 19-10 moved to Article 19-13 <Sep. 19, 2023>]

Article 19-11(Submission of results of application of regulatory exemptions for demonstration) #

(1) A person who is granted regulatory exemptions for demonstration shall submit a report on the results of application of regulatory exemptions for demonstration, which includes the following matters, to the Minister of Science and ICT and the heads of the related agencies pursuant to Article 16-3 (3) of the Act:

1. Achievement of the purpose of the regulatory exemptions for demonstration in accordance with the plan for regulatory exemptions for demonstration;

2. Fulfillment of the conditions for designation of regulatory exemptions for demonstration (applicable only to cases where the conditions are attached pursuant to the latter part of Article 16-2 (3) of the Act);

3. Results of demonstration of the new technology;

4. Occurrence of any safety accidents and compensation for damages, etc. caused by demonstration of the new technology;

5. Recommendations for institutional improvement or legislative arrangements following regulatory exemptions for demonstration (applicable only to cases where recommendations are given).

(2) Where it is deemed necessary to supplement the details of a report on the results of applying regulatory exemptions for demonstration received pursuant to paragraph (1), the Minister of Science and ICT and the heads of the related agencies may request the supplementation thereof within a reasonable period of time.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-8; previous Article 19-11 moved to Article 19-14 <Sep. 19, 2023>]

Article 19-12(Legislative arrangements for regulatory exemptions for demonstration) #

(1) Upon commencing the legislative arrangements pursuant to Article 16-3 (4) of the Act, the heads of the relevant administrative agencies shall notify the Minister of Science and ICT and the Minister of Government Legislation of the legislative arrangements without delay. The foregoing shall also apply where the heads of the relevant administrative agencies have completed the legislative arrangements.

(2) Upon receipt of the notice under the latter part of paragraph (1), the Minister of Science and ICT shall notify the persons who are granted designation for regulatory exemptions for demonstration of such fact.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-9; previous Article 19-12 moved to Article 19-15 <Sep. 19, 2023>]

Article 19-13(Purchase of liability insurance following designation of regulatory exemptions for demonstration and temporary permission) #

(1) A person who has purchased liability insurance under the main clause of Article 16-3 (7) of the Act or under the main clause of Article 16-7 (14) of the Act (hereinafter referred to as "liability insurance") shall submit materials evidencing the purchase of liability insurance to the Minister of Science and ICT before demonstration of the new technology or before implementation of a project using the new technology services and products. <Amended on Sep. 19, 2023; Apr. 15, 2025>

(2) The expiration date of the insurance period for liability insurance under paragraph (1) shall be after the expiration of the term of validity of regulatory exemptions for demonstration or temporary permission; and where the term of validity is extended pursuant to Article 16-2 (4) of the Act or Article 16-7 (5) of the Act (including cases where the term of validity for regulatory exemptions for demonstration is deemed not terminated pursuant to Article 16-2 (16) of the Act and where the term of validity of temporary permission is deemed extended pursuant to Article 16-7 (10) of the Act), the liability insurance shall be renewed or newly purchased in consideration of the extended period. <Amended on Sep. 19, 2023; Apr. 15, 2025>

(3) Where a person referred to in paragraph (1) renews or newly purchases the liability insurance pursuant to paragraph (2), he or she shall submit to the Minister of Science and ICT a copy of the liability insurance policy renewed or newly purchased, within 30 days from the date of renewal or new purchase of the liability insurance.

(4) The liability insurance under paragraph (1) shall guarantee compensation for any damage to life, body, and property of users caused by new technology subject to regulatory exemptions for demonstration or temporary permission. <Amended on Sep. 19, 2023>

(5) The proceeds of liability insurance under paragraph (1) shall be calculated based on the amounts specified in the following subparagraphs, but shall not exceed the amount of actual damages; provided, in cases falling under the proviso of subparagraph 1 (a), the insurance proceeds may exceed the amount of actual damages:

1. In cases of personal damage: The following amount per victim;

(a) In cases of death: 150 million won; provided, where the amount of actual damages is less than 20 million won, the insurance proceeds shall be 20 million won;

(b) In cases of injury: 30 million won;

Article 19-14(Formulation of compensation plan following designation of regulatory exemptions for demonstration and temporary permission) #

(1) A person who is unable to subscribe to a liability insurance and granted designation of regulatory exemptions for demonstration or temporary permission therefor shall submit the following materials to the Minister of Science and ICT, and shall prepare a compensation plan under the proviso of Article 16-3 (7) of the Act or the proviso of Article 16-7 (14) of the Act (hereinafter referred to as "compensation plan"), after consulting with the Minister of Science and ICT based on the materials submitted, before demonstration of a new technology or before implementation of a project utilizing new technology services and products: <Amended on Sep. 19, 2023; Apr. 15, 2025>

1. An explanatory statement for the reasons the person is unable to purchase liability insurance;

2. A plan for compensation for damage to users, including the criteria, methods, and procedures for compensation in the case of occurrence of damage to users.

(2) The provisions of Article 19-13 (5) shall apply mutatis mutandis to the criteria for compensation for damages in a compensation plan referred to in paragraph (1). In such cases, "proceeds of liability insurance" shall be construed as "amount of compensations for damage". <Amended on Sep. 19, 2023>

[This Article Added on Mar. 16, 2021]

[Title Amended on Sep. 19, 2023]

[Moved from Article 19-11; previous Article 19-14 moved to Article 19-17 <Sep. 19, 2023>]

Article 19-15(Administrative and financial support for regulatory exemptions for demonstration and temporary permission) #

"Administrative and financial support prescribed by Presidential Decree" in Article 16-4 of the Act means the following support:

1. Preliminary examination of regulation that may arise from the stage of commencing the transfer of new technology to the stage of commercializing the new technology;

2. Laying the foundation necessary to perform demonstration of the new technology efficiently;

3. Legal and accounting support for the commercialization of new technology and protection of the intellectual property rights;

4. Other support that the Minister of Science and ICT deems necessary to facilitate the implementation of demonstration.

[This Article Added on Mar. 16, 2021]

[Title Amended on Sep. 19, 2023]

[Moved from Article 19-12 <Sep. 19, 2023>]

Article 19-16(Corrective order to persons designated for regulatory exemptions for demonstration) #

(1) Where a person who is designated for regulatory exemptions for demonstration falls under any subparagraph of Article 16-5 (1) 2 through 4 of the Act, the Minister of Science and ICT may order the person to take corrective actions within a specified period of six months as provided for in that paragraph.

(2) Where a person in receipt of a corrective order issued under paragraph (1) is unable to make a correction by the due date because of unavoidable causes, the Minister of Science and ICT may extend the deadline only once by up to three months.

(3) Where the Minister of Science and ICT orders a person designated for regulatory exemptions for demonstration to take corrective actions pursuant to paragraph (1), he or she shall do so in writing specifying the following matters:

1. Statement that the relevant person falls under any provisions of Article 16-5 (1) 2 through 4 of the Act;

2. Details of the corrective order;

3. Period for relevant correction;

4. Procedures for raising objections to the corrective order.

(4) The Minister of Science and ICT shall provide a person designated for regulatory exemptions for demonstration who is subject to a corrective order, with an opportunity to submit explanatory materials or to state his or her opinion in advance.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-13 <Sep. 19, 2023>]

Article 19-17(Revocation of designation of regulatory exemptions for demonstration) #

Where the Minister of Science and ICT revokes designation of regulatory exemptions for demonstration pursuant to Article 16-5 (1) of the Act, he or she shall publicly announce such fact in the Official Gazette or on the website of the Ministry.

[This Article Added on Mar. 16, 2021]

[Moved from Article 19-14 <Sep. 19, 2023>]

Article 19-18(Request for prompt confirmation of regulation) #

(1) A person who intends to request to confirm the existence or application of any regulations related to the creation of new technology within a special zone under Article 16-6 (1) of the Act shall submit a written request for prompt confirmation of any regulations prescribed by Decree of the Ministry of Science and ICT to the Minister of Science and ICT, along with materials explaining demonstration or projects utilizing the new technology.

(2) Where matters requested to be confirmed under paragraph (1) fall under the jurisdiction of another agency, the Minister of Science and ICT shall send, without delay, a copy of a request for prompt confirmation of regulation and attached documents to the head of a relevant agency under Article 16-6 (2) of the Act.

(3) The Minister of Science and ICT shall describe the matters replied by the head of a relevant agency pursuant to Article 16-6 (4) of the Act in a written notice of the results of prompt confirmation prescribed by Decree of the Ministry of Science and ICT and shall notify the requester thereof.

[This Article Added on Sep. 19, 2023]

Article 19-19(Application for temporary permission) #

(1) A person who intends to apply for temporary permission pursuant to Article 16-7 (1) of the Act shall submit to the Minister of Science and ICT a written application for temporary permission prescribed by Decree of the Ministry of Science and ICT, along with the following documents:

1. A business plan that includes all the following matters relating to temporary permission (hereinafter referred to as the "plan for temporary permission"):

(a) Name and details of the new technology services and products;

(b) Scope and implementation methods, eligible target users, and period of a project;

(c) Financial and technical capabilities of an applicant for temporary permission;

2. Documents substantiating that the new technology services and products fall under any subparagraph of Article 16-7 (1) of the Act;

3. Descriptions of the relevant new technology services and products regarding the innovative achievements and enhancement of user convenience;

4. Materials verifying the safety of the new technology services and products, and measures to protect users;

5. Other documents deemed necessary by the Minister of Science and ICT for temporary permission.

(2) Where the Minister of Science and ICT deems it necessary to supplement the details of the application for temporary permission submitted under paragraph (1), he or she may request the applicant to supplement the application, within a reasonable period of time.

(3) Where a written application for temporary permission submitted under paragraph (1) (including cases where the details of the application is supplemented under paragraph (2)) falls under any of the following subparagraphs, the Minister of Science and ICT may return the written application for temporary permission:

1. Where it is obvious that the details of such application are prepared by fraud or other improper means;

2. Where it is obvious that the details of such application do not correspond to any of the cases prescribed in the subparagraphs of Article 16-7 (1) of the Act;

3. Where the applicant fails to submit the documents specified in each subparagraph of paragraph (1) or to comply with a request for supplementation made under paragraph (2).

Article 19-20(Term of validity of temporary permission) #

(1) The term of validity of temporary permission under the main clause of Article 16-7 (5) of the Act shall be two years; provided, where the Minister of Science and ICT deems it necessary, the term of validity may be shortened.

(2) A person who intends to apply for an extension of the term of validity pursuant to the proviso of Article 16-7 (5) of the Act shall submit to the Minister of Science and ICT an application for extension of the term of validity for temporary permission prescribed by Ordinance of the Ministry of Science and ICT, along with the following documents: <Amended on Apr. 15, 2025>

1. Copy of a certificate of temporary permission as prescribed in Article 19-19 (9);

2. Documents including the current status of use and performance records of utilization of the new technology services and products;

3. A plan for the renewal or purchase of liability insurance;

4. A plan for extension of compensation plans;

5. Materials necessary for judging the legislative arrangements and directions for improvement in relation to the new technology services and goods;

6. Documents stating the occurrence of any safety accidents or compensation for damage, etc. caused by the new technology services or products;

7. Other documents that the Minister of Science and ICT deems necessary to be submitted for judging the appropriateness of extension of the term of validity for temporary permission.

(3) Where the Minister of Science and ICT extends the term of validity in accordance with an application for extension of the term of validity under paragraph (2), he or she shall issue a certificate of temporary permission prescribed by Ordinance of the Ministry of Science and ICT, stating the matters specified in the subparagraphs of Article 19-19 (9), to the applicant for extension of the term of validity, and shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT. <Amended on Apr. 15, 2025>

[This Article Added on Sep. 19, 2023]

Article 19-21(Criteria for examination of temporary permission) #

Matters necessary for temporary permission pursuant to Article 16-7 (6) 5 of the Act shall be as follows:

1. Concreteness of business plans utilizing the new technology services and products;

2. Financial and technical capabilities of the applicant for temporary permission;

3. Ripple effects of the new technology services and goods on the relevant market and user convenience;

4. Appropriateness of measures to protect the users of the new technology services and goods;

5. Other matters deemed necessary for temporary permission by the Minister of Science and ICT.

[This Article Added on Sep. 19, 2023]

Article 19-22(Application for modification of temporary permission) #

(1) A person who intends to apply for modification of temporary permission pursuant to Article 16-7 (9) of the Act shall submit to the Minister of Science and ICT an application for modification of temporary permission prescribed by Ordinance of the Ministry of Science and ICT, along with the following documents: <Amended on Apr. 15, 2025>

1. A plan for modification of temporary permission;

2. Materials regarding the current status and performance records of utilization of temporary permission;

3. A written statement on the grounds for modification of temporary permission and materials substantiating such grounds;

4. A plan for modifying the liability insurance or compensation plan (to be submitted only in the case of any change in the details of the liability insurance or compensation plan);

5. A copy of a certificate of temporary permission;

6. Other materials deemed necessary by the Minister of Science and ICT for modification of temporary permission.

(2) Where the Minister of Science and ICT deems it necessary to supplement the details of an application for change of temporary permission submitted under paragraph (1), he or she may request the details of the application to be supplemented, within a reasonable period of time.

(3) The Minister of Science and ICT may return the application for modification of temporary permission submitted pursuant to paragraph (1) (including cases where the details of application are supplemented under paragraph (2)), if falls under any of the following subparagraphs:

1. Where it is obvious that the details of such application are prepared by fraud or other improper means;

2. Where it is obvious that the details of such application do not correspond to any of the cases prescribed in the subparagraphs of Article 16-7 (1) of the Act;

3. Where the applicant fails to comply with a request for supplementation under paragraph (2).

(4) Where the Minister of Science and ICT modifies temporary permission pursuant to Article 16-7 (9) of the Act, he or she shall issue a certificate of temporary permission prescribed by Ordinance of the Ministry of Science and ICT to the relevant applicant for modification of temporary permission, stating the matters specified in each subparagraph of Article 19-19 (9), and shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT. <Amended on Apr. 15, 2025>

Article 19-23(Legislative arrangements following temporary permission) #

(1) Upon completion of the legislative arrangements pursuant to the main clause of Article 16-7 (10) of the Act, the head of the relevant agency shall notify the Minister of Science and ICT of such fact without delay. <Amended on Apr. 15, 2025>

(2) Upon receipt of the notice under paragraph (1), the Minister of Science and ICT shall notify the persons who obtain temporary permission of such fact.

[This Article Added on Sep. 19, 2023]

Article 19-24(Corrective order to persons granted temporary permission) #

(1) Where a person who is granted temporary permission falls under any subparagraph of Article 16-8 (1) 2 through 5 of the Act, the Minister of Science and ICT may order the person to make a correction within a specified period of up to six months as provided in Article 16-8 (1) of the Act.

(2) Where a person in receipt of a corrective order issued under paragraph (1) is unable to make a correction by the due date because of unavoidable causes, the Minister of Science and ICT may extend the deadline only once by up to three months.

(3) Where the Minister of Science and ICT orders a person granted temporary permission pursuant to paragraph (1) to make a correction, he or she shall do so in writing specifying the following:

1. Statement that the relevant person falls under any of Article 16-8 (1) 2 through 5 of the Act;

2. Details of the corrective order;

3. Period for relevant correction;

4. Procedures for raising objections to the corrective order.

(4) The Minister of Science and ICT shall provide a person who is subject to a corrective order and granted temporary permission with an opportunity to submit explanatory materials or to state his or her opinion in advance.

[This Article Added on Sep. 19, 2023]

Article 19-25(Revocation of temporary permission) #

Where the Minister of Science and ICT revokes temporary permission pursuant to Article 16-8 (1) of the Act, he or she shall publicly announce such fact in the Official Gazette or on the website of the Ministry of Science and ICT.

[This Article Added on Sep. 19, 2023]

Article 20(Assistance to research groups for each field of technology) #

Details of assistance to research groups for each field of technology provided under Article 21 (2) of the Act shall be as follows: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. Service for shared utilization of research facilities and equipment;

2. Dissemination of domestic and overseas technical information;

3. Public relations about technical development and improvement;

4. Expenses incurred in conducting activities deemed necessary by the Minister of Science and ICT.

[This Article Added on Jul. 26, 2012]

Article 20-2 #

Deleted. <Aug. 3, 2015>

Article 21(Operation of ombudsman system) #

(1) The term of office of an ombudsman (hereinafter referred to as "ombudsman") commissioned under Article 25 of the Act shall be three years.

(2) Ombudsmen shall conduct the following affairs:

1. Support for solving problems faced by foreign-invested enterprises and foreigners taking occupancy in a special zone;

2. Collecting information on grievances in management of foreign-invested enterprises taking occupancy in a special zone;

3. Collecting information on grievances of foreigners in a special zone regarding their living therein;

4. Formulating a plan to improve matters referred to in subparagraphs 2 and 3 and making recommendations to related administrative agencies to execute such plan.

(3) Ombudsmen may request cooperation from a related administrative agency in conducting the affairs under paragraph (2), and the related administrative agency in receipt of a request for cooperation shall notify the ombudsmen of its opinion thereon within seven days.

(4) Ombudsmen shall analyze the grievance handling record in each quarter and report the results thereof to the Minister of Science and ICT within one month after each quarter expires. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Added on Jul. 26, 2012]

Article 21-2(Special Cases on the Immigration Act) #

(1) The upper limit on the period of sojourn that can be granted at one time for the status of sojourn corresponding to the Foreign National of Special Ability (E-7) visa in accordance with Article 25-2 (1) of the Act shall be five years.

(2) The confirmation by the Minister of Science and ICT under Article 25-2 (2) of the Act shall be based on a letter of recommendation under Article 7 (5) of the Enforcement Decree of the Immigration Act.

(3) A person who intends to obtain a visa in accordance with Article 25-2 (1) of the Act shall submit a letter of recommendation under paragraph (2) to the Minister of Justice.

(4) Standards for issuing letters of recommendation under paragraph (2) shall be determined by the Minister of Science and ICT in consultation with the Minister of Justice.

[This Article added on Apr. 15, 2025]

Article 22(Project implementers) #

(1) "Person who meets the requirements prescribed by Presidential Decree" in Article 26 (1) 4 of the Act means any of the following persons:

1. Either of the following persons who intends to establish facilities suitable for a special zone development project and take occupancy therein:

(a) A person who intends to directly develop a site for industrial and research facilities, etc.;

(b) A person who intends to develop a site for industrial and research facilities and directly use part of such site for facilities suitable for a special zone development project, and supply the rest of such site to those who wishes to take occupancy in the special zone;

2. A person whose business for general construction works (only applicable to civil works and civil and building works) has been registered pursuant to the Framework Act on the Construction Industry, whose announced execution capacity evaluated in the relevant year exceeds the annual average project costs (excluding costs for compensation) of a special zone development project.

(2) "Corporation which meets the requirements prescribed by Presidential Decree" in Article 26 (1) 5 of the Act means a corporation in which persons referred to in Article 26 (1) 1 through 3 of the Act has invested at least 30 percent of its capital.

[This Article Added on Jul. 26, 2012]

Article 23(Implementation of special zone development project on behalf of project implementers) #

(1) A person who intends to implement part of a special zone development project on behalf of a project implementer pursuant to Article 26 (3) of the Act shall file an application therefor, stating the following details, with the relevant special zone development project:

1. The name (in the case of a corporation, the name of the corporation and the name of its representative) and address of a person who intends to implement the special zone development project on behalf of the project implementer;

2. The name and location of the special zone development project he or she intends to implement on behalf of the project implementer and the surface area of land on which such project is executed;

3. A project plan stating the following matters regarding the implementation of the special zone development project on behalf of the project implementer:

(a) Objectives of the project;

(b) Kind and outline of the project;

(c) A period for the implementation of the project;

4. A funding plan;

5. A land utilization plan and a location map.

(2) Upon receipt of an application filed under paragraph (1), the project implementer may authorize the applicant to implement part of a special zone development project, including a project to create a site for industrial and research facilities to be used by such applicant among the special zone development projects, where it is necessary to simultaneously implement the special zone development project and establish industrial and research facilities, or where deemed necessary to facilitate executing the special zone development project.

(3) Where a project implementer intends to authorize a person who will take occupancy in a special zone to implement part of a special zone development project on his or her behalf, he or she shall enter into a contract for the execution of the special zone development zone on his or her behalf.

(4) A project implementer shall direct and supervise a person who implements a special zone development project on his or her behalf, with whom he or she has entered into a contract pursuant to paragraph (3), so that he or she may conscientiously implement the special zone development project according to the relevant comprehensive plan to promote special zones and the terms and conditions of the contract.

Article 23-2(Revocation of designation of project implementers) #

"Period prescribed by Presidential Decree" in Article 26-2 (1) 4 of the Act means a period of two years from the date a person is designated and announced as a project implementer.

[This Article Added on Jul. 26, 2012]

Article 24(Approval of implementation plans) #

(1) "Matters prescribed by Presidential Decree" in the former part of Article 27 (1) of the Act means the following:

1. The name of a special zone development project;

2. Objectives of a special zone development project;

3. The location where a special zone development project to be implemented and the surface area thereof;

4. The name (where a project implementer is a corporation, the name of the corporation and the name of its representative) and address of a project implementer;

5. The method and period for the implementation of a special zone development project;

6. The Status of the utilization of land in an area where a special zone development project is to be implemented;

7. A land utilization plan and an infrastructure plan;

8. A plan for re-investment of development gains.

(2) "Mayor/Do Governor prescribed by Presidential Decree" in the former part of Article 27 (1) of the Act means the Mayor/Do Governor having jurisdiction over the relevant special zone.

(3) Where a project implementer intends to obtain approval of an implementation plan of a special zone development project (hereinafter referred to as "implementation plan") or approval for any revision thereto pursuant to Article 27 (1) of the Act, he or she shall submit an application for approval of (or revision to) an implementation plan, accompanied by the following documents and drawings. In such cases, the Mayor/Do Governor (where a project implementer and a person who has the authority to approve an implementation plan are the same person, the Minister of Science and ICT) shall confirm a cadastral map through the joint use of administrative information under Article 36 (1) of the Electronic Government Act: <Amended on Mar. 23, 2013; Aug. 3, 2015; Jul. 26, 2017>

1. A location map;

2. A planned ground plan and detail drawings and plans (where the reclamation of public water is included, including an explanation of reclamation works);

3. Project costs and a funding plan (including an annual investment plan);

4. A plan for the management and disposal of land or facilities to be developed;

5. A detailed statement of the existing plants, buildings, etc. to be retained in an area where a special zone development project is implemented;

Article 25(Public notice of approval of implementation plans) #

Matters to be publicly notified by the Mayor/Do Governor in the relevant public report pursuant to the main clause of Article 28 (1) of the Act or matters to be publicly notified by the Minister of Science and ICT in the Official Gazette under the proviso of that paragraph shall be as follows: <Amended on Aug. 3, 2015; Jul. 26, 2017>

1. The name of a special zone development project;

2. Objectives and the outline of a special zone development project;

3. The location and surface area of an area where the special zone development project is implemented;

4. The name (where a project implementer is a corporation, the name of the corporation and the name of its representative) and address of a project implementer;

5. The method and period for the implementation of a special zone development project;

6. Details of land, etc. to be expropriated or used.

[This Article Added on Jul. 26, 2012]

Article 25-2(Organization and operatio of Council on Special Zone Development Projects) #

(1) The Council on Special Zone Development Projects (hereafter referred to as the "Council on Special Zone Development Projects" in this Article) established under Article 29-2 (2) of the Act shall be comprised of public officials of related administrative agencies and related departments that grant permission, authorization, designation or approval, hold consultations, file reports, etc. (hereafter referred to as "approval, permission, etc." in this Article) under Article 29 (1) of the Act.

(2) Where the Mayor/Do Governor intends to hold a meeting of the Council on Special Zone Development Projects, he or she shall inform the heads of related administrative agencies under Article 29 (2) of the Act of the meeting by three days before holding of the meeting.

(3) The heads of related administrative agencies under Article 29 (2) of the Act shall submit their opinions on the agenda items of approval, permission, etc. at the meeting of the Council on Special Zone Development Projects; provided, where it is impracticable for the heads of related administrative agencies under Article 29 (2) of the Act to submit their opinions on the relevant approval, permission, etc. at the meeting of the Council on Special Zone Development Projects as reviews of statutes and regulations and additional reviews for the confirmation, etc., of facts are required, they may submit their opinions within five days after holding the meeting of the Council on Special Zone Development Projects.

[This Article Added on Jul. 26, 2012]

Article 26(Completion inspection) #

(1) Where a project implementer intends to undergo a completion inspection pursuant to Article 32 (1) of the Act, he or she shall prepare an application for completion inspection stating the following matters and file the application with the competent Mayor/Do Governor after consulting with the Foundation:

1. The name and address of a project implementer (where the project implementer is a corporation, the name of the corporation and the name of its representative);

2. The name of a special zone development project;

3. The location and surface area of an area where the special zone development project is implemented;

4. The period for the implementation of a project.

(2) An application for completion inspection filed under paragraph (1) shall be accompanied by the following documents and drawings: <Amended on Aug. 31, 2016; Jan. 21, 2022>

1. As-built drawings and documents (including as-built photographs);

2. A cadastral surveying map issued by the head of a Si/Gun/Gu (referring to the head of an autonomous Gu);

3. A plan for the management and disposition of land or facilities;

4. A report on the reversion of public facilities and the drawings thereof (including an appraisal report prepared by an appraisal corporation, etc. under the Act on Appraisal and Certified Appraisers on public facilities, land, etc. the use of which has been abolished, and a detailed calculation statement of construction costs of public facilities newly established, if a project implementer is the one referred to in Article 26 (1) 2 through 6 of the Act);

5. Comparison of a new and old cadastral maps;

6. A detailed statement of land to be acquired by a project implementer and land to be vested in the State or a local government pursuant to Articles 35 (4) and 46 of the Public Waters Management and Reclamation Act (only applicable to the reclamation of public waters under the Public Waters Management and Reclamation Act);

7. A written opinion notified by the Foundation notifies under paragraph (3).

(3) Upon receipt of a request for consultation made under paragraph (1), the Foundation shall examine whether the application for completion inspection complies with the relevant implementation plan and notify the project implement of its opinion within seven days.

Article 27(Use of land before completion inspections) #

(1) Where a person who has purchased a parcel of land developed or any facility established by a special zone development project intends to use such parcel of land or facility before the completion inspection pursuant to the proviso of Article 32 (3) of the Act, he or she shall file an application for permission for use before final inspection by defining the scope of the use thereof with the Mayor/Do Governor.

(2) Upon receipt of an application for use before completion inspection filed under paragraph (1), the Mayor/Do Governor may permit the use before completion inspection if he or she deems that the use of a parcel of land or facility does not hinder the relevant special zone development project after hearing the opinion of the relevant project implementer.

[This Article Added on Jul. 26, 2012]

Article 27-2(Reinvestment of development gains) #

(1) A project implementer shall determine the extent of development gains he or she should reinvest pursuant to Article 32-2 (1) of the Act in consultation with the Mayor/Do Governor between 20/100 and 25/100 of development gains accrued from the relevant special zone development project. <Amended on Mar. 16, 2021>

(2) A project implementer shall complete the re-investment of development gains under Article 32-2 (1) of the Act before he or she undergoes a completion inspection under Article 32 (1) and (2) of the Act.

[This Article Added on Jul. 26, 2012]

[Previous Article 27-2 moved to Article 27-3 <Jul. 26, 2012>]

Article 27-3(Priority support for infrastructure) #

Where the State or a local government gives priority to supporting the construction of infrastructure pursuant to the main clause of Article 33 of the Act, infrastructure eligible for support shall be predeliberated upon by the Committee for Special Research and Development Zones. <Amended on Mar. 16, 2021>

[This Article Added on Jul. 26, 2012]

[Moved from Article 27-2; previous Article 27-3 moved to Article 27-4 <Jul. 26, 2012>]

Article 27-4(Subsidizing expenses) #

(1) Items for costs which the State or a local government may subsidize pursuant to Article 33-2 (2) of the Act shall be as follows: <Amended on Mar. 16, 2021>

1. Costs incurred in purchasing a site or constructing facilities, etc. in a special zone created for the purpose of leasing land, facilities, etc.;

2. Other costs deliberated and resolved by the Committee for Special Research and Development Zones as deemed necessary for a special zone development project.

(2) The State or a local government may subsidize costs referred to in paragraph (1) up to 50/100 thereof after deliberation and resolution thereon by the Committee for Special Research and Development Zones. <Amended on Mar. 16, 2021>

[This Article Added on Jul. 26, 2012]

[Moved from Article 27-3 <Jul. 26, 2012>]

Article 28(Modification to minor matters of special zone management plans) #

"Modification to minor matters prescribed by Presidential Decree" in the proviso of Article 34 (2) of the Act means any of the following (limited to cases where it does not violate any other subparagraph): <Amended on May 8, 2018; Jun. 22, 2021>

1. A correction of the surface area due to an error, etc. within the extent that does not change the location or boundary of a special zone or a correction of an error, such as a discrepancy in boundaries;

2. A revision to the surface area or size of infrastructure, such as service water, energy, communications, transportation and distribution facilities, by up to 1/10;

3. A correction of an error in the use of land, due to an error, etc. in zoning the land in a special zone, based on its usage or a change of the use of parcels of land with an area of not greater than 660 square meters to adjust boundaries of land;

4. An alteration of undeveloped land;

5. An amendment to a special zone management plan, following an amendment of any minor matter in the relevant special zone development plan under Article 7-2 (4);

6. Where a special zone management plan is changed in accordance with the approval of, or the approval for a revision of, the following plans:

(a) An implementation plan;

(b) An implementation plan of a free economic zone development project under Article 9 of the Special Act on Designation and Management of Free Economic Zones;

(c) An implementation plan of an innovation city development project under Article 12 of the Special Act on the Construction and Development of Innovation Cities;

(d) An implementation plan under Article 17, 18, 18-2, or 19 of the Industrial Sites and Development Act;

7. Where a special zone management plan is revised as a consequence of a revision to a master plan for managing industrial complexes under Article 33 of the Industrial Cluster Development and Factory Establishment Act (limited to where consultation with the Minister of Science and ICT is made).

[This Article Added on Jul. 26, 2012]

Article 29(Subdivision of residential areas and areas for industrial facilities) #

(1) Pursuant to Article 35 (2) of the Act, the Minister of Science and ICT may further divide residential areas referred to in paragraph (1) 1 of that Article and areas for industrial facilities referred to in subparagraph 5 of that paragraph as follows: <Amended on Mar. 23, 2013; Aug. 3, 2015; Jul. 26, 2017; May 8, 2018; Jun. 22, 2021>

1. Residential areas: Exclusive residential areas, general residential areas and quasi-residential areas;

2. Areas for industrial facilities:

(a) Industrial development areas: Areas necessary for production and research activities of advanced technology enterprises, etc.;

(b) Areas for supporting industries: Areas necessary to encourage and support production and research activities in industrial development areas;

(c) Industrial complex areas: Areas necessary to perform multiple functions of conducting, facilitating, and supporting manufacturing and research activities of advanced technology enterprises, etc.;

(d) Areas for industrial public facilities: Areas requiring the development of infrastructure to support research and production activities in areas for industrial facilities.

(2) In cases of an industrial complex area under paragraph (1) 2 (c), the area of industrial facilities under the Industrial Sites and Development Act shall be at least 50/100 of the total area. <Added on May 8, 2018; Jun. 22, 2021>

[This Article Added on Jul. 26, 2012]

[Title Amended on Aug. 3, 2015]

Article 30(Regulation on building activities) #

(1) The types of buildings permitted to be constructed in areas under Article 35 (1) and (2) of the Act pursuant to Article 36 (1) of the Act shall be as specified in Appendix 1; provided, where a plan that determines the type of buildings permitted to be constructed, such as an implementation plan, an implementation plan of development projects under other statutes, or a district unit plan under Article 49 of the National Land Planning and Utilization Act, has been formulated separately for areas under Article 35 (1) and (2) of the Act, such plan shall apply. <Amended on Jun. 22, 2021>

(2) Notwithstanding the main clause of paragraph (1), if the Minister of Science and ICT deems it necessary in any of the following cases, he or she may exempt the case from being subject to the regulation prescribed in Appendix 1, after deliberation by related experts under Article 33 (2): <Added on May 8, 2018; May 14, 2024>

1. Where an urban or Gun planning facility is installed pursuant to Article 43 of the National Land Planning and Utilization Act;

2. Where the Mayor/Do Governor requests exemption in order to attain the objectives of designating a special zone, such as fostering of new industries and new technology.

[This Article Added on Jul. 26, 2012]

Article 31(Buildings subject to examination of design) #

"Building in excess of the size prescribed by Presidential Decree" in Article 36 (2) of the Act means a building with at least 5,000 square meters’ total floor area or at least 16 floors.

[This Article Added on Jul. 26, 2012]

Article 32(Occupancy contract requirements for educational, research and commercialization facility areas) #

A person who intends to move into an area for educational, research and commercialization facilities pursuant to Article 37 of the Act shall be any of the following persons: <Amended on Mar. 23, 2013; Jul. 26, 2017; Sep. 19, 2023; Apr. 30, 2024>

1. Any of the following entities, the main business of which is to conduct research on science and technology or educational activities:

(a) A government-funded research institute;

(b) A research institute affiliated with an enterprise under Article 14 (1) 2 of the Basic Research Promotion and Technology Development Support Act;

(c) A university;

(d) An industrial technology research cooperatives established under the Act on the Support of Industrial Technology Research Cooperatives;

(e) A national or public research institute;

(f) Korea Institute for Advancement of Technology, Korea Planning and Evaluation Institute of Industrial Technology, Korea Institute of Ceramic Engineering and Technology, Korea Testing Laboratory, and a specialized manufacturing technology research institute under the Industrial Technology Innovation Promotion Act;

(g) A corporate research institution in the field of science and technology incorporated under the Civil Act or other statutes;

(h) An exhibiting institution for public viewing in the field of science and technology;

(i) A foreign institution that performs functions similar to those of institutions referred to in items (a) through (h);

2. A small and medium enterprise under Article 2 (1) of the Framework Act on Small and Medium Enterprises (hereafter referred to as "small or medium enterprise" in this Article) whose research and development expenses account for at least five percent of its annual gross sales;

3. A person who intends to start a technology-intensive small and medium enterprise to commercialize the outcomes of research and development or a person whose main business is to support such business startup;

4. A person who intends to establish an urban factory under subparagraph 1 of Article 34 of the Enforcement Decree of the Industrial Cluster Development and Factory Establishment Act, and deemed necessary for commercializing the outcomes of research and development by the Minister of Science and ICT;

Article 33(Application for occupancy contract) #

(1) A person who intends to conclude an occupancy contract pursuant to Article 37 of the Act shall submit an application for occupancy contract containing the following to the management agency, along with documents prescribed by Decree of the Ministry of Science and ICT: <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 22, 2021>

1. Purposes of taking occupancy in the special zone;

2. Matters concerning the location and total surface area of a site in which he or she intends to take occupancy, and a land utilization plan;

3. Matters concerning a plan to establish educational, research and commercialization facilities, etc.

(2) Upon receipt of an application for an occupancy contract under paragraph (1), the management agency may refer such application to related experts for deliberation on the feasibility of the research and development plan and commercialization plan of the applicant, the appropriateness of the location and area of the application site, and the appropriateness of the educational, research and commercialization facilities to be installed, etc. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 22, 2021>

(3) "Where a person intends to revise any matter prescribed by Presidential Decree" in the latter part of Article 37 (1) of the Act means any of the following cases: <Amended on Jun. 22, 2021>

1. Where he or she intends to change the purpose of occupancy at the time of signing the occupancy contract;

2. Where he or she intends to revise the intended use, such as alteration of research facilities to a pilot plant;

3. Where he or she intends to alter the surface area of a site by at least 1/10 or at least 3,300 square meters;

4. Where he or she intends to revise a land utilization plan in order to develop undeveloped land;

5. Where he or she intends to alter the total floor area of educational, research and commercialization facilities by at least 330 square meters.

(4) Where a management agency intends to change any matter under paragraph (3) 1 through 3, it may refer such change to related experts for deliberation on the appropriateness of the change. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 22, 2021>

[This Article Added on Jul. 26, 2012]

[Title Amended on Jun. 22, 2021]

Article 33-2(Business affairs processed by occupancy management system) #

(1) Business affairs that may be processed by the occupancy management system under Article 37-2 (1) of the Act (hereafter referred to as "occupancy management system" in this Article) shall be as follows:

1. Business affairs relating to the conclusion of occupancy contracts under Article 37 (1) of the Act;

2. Collection, processing, and analysis of information on occupancy management under Article 37-2 (1) of the Act;

3. Business affairs relating to reporting on transfer under Article 38 (1) of the Act;

4. Business affairs relating to termination of occupancy contracts under Article 40 (1) of the Act;

5. Business affairs relating to the sale and lease of industrial sites, the follow-up management thereof, and the occupancy of industrial sites to which subparagraph 15 of Article 2 of the Industrial Cluster Development and Factory Establishment Act and Article 5 (1) 3 of the Enforcement Decree of that Act are applicable mutatis mutandis pursuant to Article 43 (4) of the Act. In such cases, "industrial sites" shall be construed as "sites for industrial facilities" and "industrial complex" as "areas for industrial facilities";

6. Other business affairs determined and publicly notified by the Minister of Science and ICT, which are to enhance the convenience and work efficiency of resident institutes.

(2) Where a management agency manages the affairs referred to in each subparagraph of paragraph (1) without going through the occupancy management system, it shall input and manage the data on such processing, etc. into the occupancy management system without delay.

[This Article Added on Jul. 23, 2024]

Article 34(Transfer of building sites) #

(1) A person who intends to transfer any site, facility, or structure (hereinafter referred to as "building, etc.") in an educational, research and commercialization facility area pursuant to Article 38 (1) of the Act shall submit a transfer report on building, etc. to the relevant management agency, along with documents prescribed by Decree of the Ministry of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017; Jun. 22, 2021>

(2) "Expenses prescribed by Presidential Decree" in Article 38 (3) 1 (c) of the Act means all of the following expenses: <Amended on Mar. 23, 2013; Jul. 26, 2017>

1. An acquisition tax, various other taxes and public charges (excluding taxes collected for reasons attributable to a transferor) paid to purchase a building site;

2. Expenses incurred in changing the purpose of a building site to be transferred;

3. Expenses incurred in improving a building site to be transferred;

4. Expenses incurred in ensuring convenience in the use of a building site to be transferred;

5. Expenses equivalent to those referred to in subparagraphs 2 through 4 and acknowledged by the Minister of Science and ICT.

(3) The acquisition price and the date of acquisition of a building site for the purpose of calculating the transfer price of the building site under Article 38 (3) 1 of the Act shall be as prescribed in Appendix 8. <Amended on May 8, 2018>

[This Article Added on Jul. 26, 2012]

Article 35(Special cases concerning inclusion in period regarding termination of occupancy contract) #

A period of delay for justified reasons, such as a period of delay for reasons not attributable to a resident institution in the course of the creation of a building site, the examination of design and various approval and permission shall be disregarded for the purpose of calculating the period specified in Article 40 (1) 1 and 3 of the Act.

[Title Amended on Jun. 22, 2021]

Article 36(Handling of remaining work after termination of occupancy contract) #

"Business affairs prescribed by Presidential Decree" in Article 40 (2) of the Act means the following: <Amended on Jun. 22, 2021>

1. Business affairs related to the transfer of land, facilities, buildings, etc. following the termination of the occupancy contract;

2. Educational and research affairs that cannot be conducted in other area but can be completed within six months and affairs incidental thereto.

[This Article Added on Jul. 26, 2012]

[Title Amended on Jun. 22, 2021]

Article 36-2(Special cases concerning industrial complexes) #

(1) Pursuant to the proviso, with the exception of the subparagraphs, of Article 43 (2) of the Act, the Foundation may entrust the management of the areas under the subparagraphs of that paragraph to the following institutions: <Amended on Jun. 22, 2021; May 14, 2024>

1. National industrial complexes defined in subparagraph 8 (a) of Article 2 of the Industrial Sites and Development Act: The institutions specified in the subparagraphs of Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act or the Korea Industrial Complex Corporation under Article 45-17 of that Act;

2. Areas in general industrial complexes defined in subparagraph 8 (b) of Article 2 of the Industrial Sites and Development Act and urban high-tech industrial complexes defined in subparagraph 8 (c) of Article 2 of that Act, where a management agency is located as at the time a special zone is designated: The institutions specified in the subparagraphs of Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act.

(2) Where the Foundation entrusts its business affairs pursuant to paragraph (1), it shall give public notice thereof on its website, etc. <Added on Jun. 22, 2021>

(3) An agreement entered into under Article 43 (5) of the Act regarding the management of a special zone shall include the following: <Amended on Jun. 22, 2021>

1. Objectives;

2. The scope and period of management affairs;

3. Other matters necessary to conduct management affairs of the special zone.

[This Article Added on Jul. 26, 2012]

Article 37(Special cases concerning the National Land Planning and Utilization Act) #

"Limits prescribed by Presidential Decree" in Article 44 of the Act means the limits not exceeding 200 percent of the building-to-land ratio or the floor area ratio applicable to green areas under Article 77 or 78 of the National Land Planning and Utilization Act. In such cases, buildings shall have up to seven floors, and the height of urban planning facilities, such as schools, shall be governed by the National Land Planning and Utilization Act. <Amended on May 14, 2024>

[This Article Added on Jul. 26, 2012]

Article 38(Registration for incorporation of foundation) #

(1) The Foundation shall register its incorporation at the seat of its principal office within two weeks after obtaining approval from the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(2) Matters to be registered for incorporation of the Foundation shall be as follows:

1. Objectives;

2. Name;

3. Location of the main office;

4. Names and addresses of executive officers;

5. Methods of making public announcement;

[This Article Added on Jul. 26, 2012]

Article 39(Requests for dispatching public officials) #

(1) Where the Foundation intends to request the dispatch of public officials pursuant to Article 57 of the Act, it shall, in advance, consult with the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(2) Where the Foundation requests for consultation under paragraph (1), it shall submit documents stating the number of persons to be dispatched, the period of dispatch, grounds for request for dispatch and qualifications to the Minister of Science and ICT. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Added on Jul. 26, 2012]

Article 40(Investment in other projects) #

(1) Where the Foundation intends to make an investment or contribution pursuant to Article 65 of the Act, it shall give notice thereof to the Minister of Science and ICT after passing a resolution thereon at the meeting of the board of directors. <Amended on Mar. 23, 2013; Jul. 26, 2017>

(2) Upon receipt of notice under paragraph (1), the Minister of Science and ICT shall consult the Minister of Economy and Finance about such investment or contribution. <Amended on Mar. 23, 2013; Jul. 26, 2017>

[This Article Added on Jul. 26, 2012]

Article 41(Issuance of bonds) #

Where the Foundation intends to issue bonds pursuant to Article 66 of the Act, it shall pass a resolution on the following matters at the meeting of the board of directors:

1. Amount of bonds to be issued (referring to the total amount of bonds issued, the face value of each bond, etc.);

2. Methods of issuance;

3. Conditions of issuance;

4. Interest rates of bonds;

5. The methods and timing for repayment of principal;

6. The methods and timing for payment of interest;

7. Other matters necessary for issuing bonds.

[This Article Added on Jul. 26, 2012]

Article 41-2 #

Deleted. <Jul. 26, 2012>

Article 42(Delegation or entrustment of authority or affairs) #

(1) The Minister of Science and ICT shall delegate the following authority to the Mayor/Do Governor pursuant to Article 72 (1) of the Act: <Added on Jul. 23, 2024>

1. To change minor matters in a special zone development plan under the proviso of Article 6-2 (6) of the Act;

2. To give public notice of the details of a special zone development plan in the Official Gazette under Article 6-2 (7) of the Act (limited to cases where minor matters are changed under the proviso of paragraph (6) of that Article).

(2) Where the Mayor/Do Governor handles the business affairs over which authority has been delegated pursuant to paragraph (1), he or she shall send copies of relevant documents to the Minister of Science and ICT. <Added on Jul. 23, 2024>

(3) The Minister of Science and ICT shall entrust the following affairs to the Foundation pursuant to Article 72 (2) of the Act: <Amended on Mar. 23, 2013; Jul. 26, 2017; Mar. 16, 2021; Sep. 19, 2023; Jul. 23, 2024; Apr. 15, 2025>

1. Receiving and confirming applications for designation as an advanced technology enterprise under Article 9 (1) of the Act;

2. Receiving and confirming applications for registration of a research-based spin-off company and registration for revision thereto under Article 9-3 (2) of the Act;

2-2. Deleted; <Mar. 19, 2023>

3. Receiving applications for regulatory exemptions for demonstration under Article 16-2 (1) of the Act;

4. Receiving applications for extension of the term of validity of regulatory exemptions for demonstration under Article 16-2 (4) of the Act;

5. Receiving applications for re-deliberation under Article 16-2 (8) of the Act;

6. Receiving applications for modification of regulatory exemptions for demonstration under Article 16-2 (11) of the Act;

7. Receiving requests for legislative arrangements under Article 16-2 (12) of the Act;

8. Receiving the results of application of regulatory exemptions for demonstration under Article 16-3 (3) of the Act;

9. Receiving requests for prompt confirmation of regulation under Article 16-6 (1) and (4) of the Act;

10. Receiving applications for temporary permission under Article 16-7 (1) of the Act;

Article 42-2(Handling of personally identifiable information) #

Where deemed unavoidable in conducting administrative affairs to ascertain the grounds for disqualifying an executive officer under Article 53 of the Act, the Minister of Science and ICT or the Foundation may handle data containing a resident registration number under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act. <Amended on Jul. 26, 2017>

[This Article Added on Aug. 6, 2014]

[Previous Article 42-2 moved to Article 42-3 <Aug. 6, 2014>]

Article 42-3(Re-examination of regulation) #

(1) The Minister of Science and ICT shall examine the appropriateness of the following matters every three years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures for improvement, etc.: <Amended on Mar. 8, 2022; Sep. 19, 2023>

1. Criteria for purchase of liability insurance under Article 19-13: January 1, 2022;

2. Criteria for preparation of compensation plans under Article 19-14: January 1, 2022;

3. Types of buildings, construction of which is restricted pursuant to the main clause of Article 30 (1): January 1, 2020.

(2) The Minister of Science and ICT shall examine the appropriateness of the following matters every two years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every second year) and shall take measures for improvement, etc.: <Added on Dec. 9, 2014; Jul. 26, 2017; Mar. 2, 2021>

1. The criteria for revoking the designation of an advanced technology enterprise under Article 12-5: January 1, 2015;

2. Deleted; <Aug. 3, 2015>

3. Deleted. <Mar. 2, 2021>

4. The limits on re-investment of development gains prescribed in Article 27-2 (1): January 1, 2015;

5. Deleted; <Mar. 7, 2023>

6. Deleted. <Mar. 7, 2023>

(3) The Minister of Science and ICT shall examine the appropriateness of the criteria for revocation of the designation of project implementers under Article 23-2, every five years, counting from January 1, 2021 (referring to the period that ends on the day before January 1 of every fifth year) and shall take measures for improvement, etc. <Added on Mar. 2, 2021>

[This Article Added on Dec. 30, 2013]

[Moved from Article 42-2 <Aug. 6, 2014>]

Article 43 #

Deleted. <Mar. 16, 2021>

Article 44(Criteria for imposition of administrative fines) #

Criteria for imposition of administrative fines under Article 76 (1) through (3) of the Act shall be as specified in Appendix 9. <Amended on Aug. 3, 2015; May 8, 2018; Jun. 28, 2022>

[This Article Added on Jul. 26, 2012]