ENFORCEMENT DECREE OF THE DEFENSE ACQUISITION PROGRAM ACT

영문법령 불러오는 중…

ENFORCEMENT DECREE OF THE DEFENSE ACQUISITION PROGRAM ACT — 법갈피

Article 4(Submission and Details of Pledge of Integrity) #

(1) “Committee prescribed by Presidential Decree” in Article 6 (1) 2 (c) of the Act means the Defense Acquisition Program Contract Deliberation Committee under Article 61-12 (1) (hereinafter referred to as the "Defense Acquisition Program Contract Deliberation Committee"). <Added on Apr. 30, 2024; Jul. 16, 2024>

(2) Where the Minister of National Defense and the Minister of the Defense Acquisition Program Administration appoint or commission members of the Committee, etc. classified as follows, he or she shall require the members to submit a pledge of integrity: <Amended on Apr. 30, 2024; Jul. 16, 2024>

1. Where submission is required by the Minister of National Defense:

(a) the Committee;

(b) The Military force policy subcommittee under Article 15 (1) 1;

2. Where submission is required by the Minister of the Defense Acquisition Program Administration:

(a) The defense acquisition program planning and management subcommittee under Article 15 (1) 2;

(b) The working committees under Article 15-2;

(c) Defense Acquisition Program Contract Deliberation Committee established in the Ministry of Defense Acquisition Program Administration.

(3) Where public officials designated by the Minister of National Defense belong to the department related to defense acquisition programs in the Ministry of National Defense by new appointment, promotion, advancement, transfer, or change of position, the Minister of National Defense shall require them to submit a pledge of integrity. <Added on Nov. 4, 2014; Apr. 30, 2024>

(4) Where public officials belonging to the Defense Acquisition Program Administration, or any persons become executive officers or employees of the Agency for Defense Development established under the Act on the Agency for Defense Development (hereinafter referred to as the "Agency for Defense Development") or the Defense Agency for Technology and Quality established under Article 32 of the Act (hereinafter referred to as the "Defense Agency for Technology and Quality"), by new appointment, promotion, advancement, transfer, or change of positions, the Minister of the Defense Acquisition Program Administration shall require them to submit a pledge of integrity. <Amended on Nov. 4, 2014; May 11, 2021; Apr. 30, 2024>

(5) Where defense contractors, general enterprises (hereinafter referred to as "defense contractors, etc."), general enterprises which have no relationship to the defense industry, or research institutes specified in Article 6 (1) 4 of the Act are registered as bidders to participate in defense acquisition programs, the Minister of the Defense Acquisition Program Administration shall require them to submit a pledge of integrity. <Amended on Nov. 4, 2014; Jul. 19, 2016; Apr. 30, 2024>

(6) Where a munitions sales agent specified in Article 6 (1) 5 of the Act enters into a contract on intermediation or agency with a foreign enterprise participating in a defense acquisition program, the Minister of the Defense Acquisition Program Administration shall require it to submit a pledge of integrity. <Added on Jul. 19, 2016; Apr. 30, 2024>

(7) "Amounts of money prescribed by Presidential Decree" in Article 6 (1) 6 of the Act means one billion won, respectively. <Added on Sep. 22, 2017; Apr. 30, 2024>

(8) Where a defense contractor, etc. which has concluded a defense procurement contract, general enterprise, specialized research institute, or general research institute which has not related to defense acquisition programs, intends to conclude a subcontract for a defense procurement contract with a contractor (referring to a supplier in cases of a sales contract; hereinafter referred to as "subcontractor") or where a subcontractor intends to conclude a sub-subcontract for a defense procurement contract, it shall notify the other party to the contract in advance of the fact that it is required to submit a pledge of integrity to the Minister of the Defense Acquisition Program Administration pursuant to Article 6 (1) of the Act. <Added on Sep. 22, 2017; Apr. 30, 2024>

(9) Matters prescribed by Presidential Decree in Article 6 (2) 4 of the Act means matters concerning requesting or receiving any of the following information from relevant public officials and prohibiting any act of arbitrarily providing or divulging information to a third party: <Amended on Apr. 30, 2024; Jul. 16, 2024>

1. The following information on the implementation of defense acquisition programs:

(a) Verification of appropriateness of requirements for weapons systems, etc. under Article 13 (3) of the Act;

(b) Project feasibility studies under Article 14-2 of the Act;

(d) Prior conceptual studies under Article 15-3 of the Act;

(e) Prior studies under the main clause of Article 17 (1) of the Act;

(f) Analysis and evaluation of defense force improvement projects under Article 23 of the Act;

(g) Other information on promotion of defense acquisition programs equivalent to those referred to in items (a) through (f);

2. Information on major decision-making by committees, etc. under the following items:

(a) the Committee;

(b) Subcommittees and working committees under Article 10 of the Act;

3. Information on major outcomes learned in the course of contract performance or derived as a result of contract performance.

(10) Where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration intends to allow a person falling under Article 6 (1) 4 or 5 of the Act to continuously perform the relevant tendering procedure or successful tender or contract pursuant to the proviso to Article 6 (4) of the Act, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may undergo deliberation by the Defense Acquisition Program Contract Deliberation Committee, if deemed necessary in consideration of the following matters, etc.: <Added on Apr. 30, 2024>

1. Characteristics of subject matter of contract;

2. Seriousness of misconduct;

3. The degree of performance and the period of performance of the relevant contract;

4. The urgency of the performance of the contract;

5. The amount of loss incurred by the State due to the suspension of performance of a contract.

Article 5(Formation and Term of Office of Ombudsmen) #

(1) The ombudsmen under Article 6 (5) of the Act shall be comprised of not more than three persons. <Amended on Oct. 1, 2010; Apr. 30, 2024>

(2) Ombudsmen under paragraph (1) shall be commissioned by the Minister of the Defense Acquisition Program Administration among the persons recommended by non-profit non-governmental organizations (hereinafter referred to as "non-profit non-governmental organization") under Article 2 of the Assistance for Non-Profit, Non-Governmental Organizations Act.

(3) Deleted. <Oct. 1, 2010>

(4) The term of office of ombudsmen shall be two years, and they may be re-commissioned only once.

(5) An ombudsman commissioned pursuant to paragraph (2) shall not be dismissed against his or her will; provided, where an ombudsman falls under any of subparagraphs 2 through 4, the Minister of the Defense Acquisition Program Administration may dismiss him or her, and where he or she falls under subparagraph 1, 5, or 6, the Minister of the Defense Acquisition Program Administration shall dismiss him or her: <Amended on Oct. 1, 2010; Apr. 30, 2024>

1. Where he or she has given or received money or other articles or entertainment in connection with his or her duties;

2. Where he or she has been negligent in performing his or her duties due to irresponsibility, or intentionally evaded the execution of duties;

3. Where he or she has performed an act in violation of security in the course of performing his or her duties;

4. Where he or she has violated the proviso of Article 7 (5);

5. Where it is recognized as being difficult for him or her to execute his or her duties as usual due to physical or mental incapacity;

6. Where an ombudsman is commissioned as an ombudsman, after being commissioned as an ombudsman, the grounds prescribed in the proviso, with the exception of the subparagraphs, of Article 6 (6) of the Act are clarified or where the ombudsman concurrently holds a position prescribed in the subparagraphs of Article 6 (9) of the Act.

[Title Amended on Oct. 1, 2010]

Article 8(Inquiry into Criminal Records) #

(1) Where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration requests criminal records inquiry pursuant to Article 6-2 (1) of the Act, he or she shall submit a written request for criminal records inquiry prescribed by Ordinance of the Ministry of National Defense to the Commissioner General of the National Police Agency, the chief prosecutor of a district prosecutors' office (including the chief of a branch office; hereafter the same shall apply in this Article) or the head of the Military Prosecutors' Office. In such cases, a written consent of a person subject to criminal records inquiry prescribed by Ordinance of the Ministry of National Defense shall be attached thereto.

(2) Upon receipt of a request for inquiry into criminal records pursuant to Article 6-2 (1) of the Act and paragraph (1) of this Article, the Commissioner General of the National Police Agency, chief prosecutors of district prosecutors' offices, and heads of military prosecutors' offices shall reply to the Minister of National Defense or the Minister of the Defense Acquisition Program Administration in accordance with a written reply to inquiry into criminal records prescribed by Ordinance of the Ministry of National Defense after verifying the criminal records of a person subject to inquiry into criminal records for the recent five years from the date of such request, which constitute a violation of the Military Secret Protection Act or the Defense Technology Protection Act.

(3) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration may request the relevant defense contractor, etc., general enterprise, or research institute not related to the defense industry, to provide information on persons subject to inquiries about criminal records, which is necessary to request inquiries about criminal records pursuant to Article 6-2 (1) of the Act and paragraph (1) of this Article.

[This Article Added on Jul. 16, 2024]

Article 15(Subcommittees) #

(1) Matters subject to deliberation and coordination by subcommittees by field and each subcommittee under Article 10 of the Act shall be as follows; provided, matters deliberated on by the Working Committee for Space Development of National Security under the proviso of Article 6 (7) of the Space Development Promotion Act shall be excluded herefrom: <Amended on Nov. 4, 2014; Sep. 24, 2019; Apr. 30, 2024>

1. Military force policy subcommittee: Matters prescribed in Article 9 (2) 2, 10, and 14 of the Act;

2. Defense acquisition program planning and management subcommittee: Matters prescribed in Article 9 (2) 1, 3 through 9, and 11 through 14 of the Act;

3. Deleted; <Sep. 24, 2019>

4. Deleted. <Sep. 24, 2019>

(2) Each subcommittee shall be comprised of not less than 5 nor more than 26 members including one chairperson, in consideration of gender. <Amended on Jun. 20, 2017; Sep. 24, 2019>

(3) The chairperson of each subcommittee shall be appointed by the Chairperson on the recommendation of the Vice Chairperson, from among the members of the Committee, and the members of each subcommittee shall be appointed or commissioned by the Chairperson on the recommendation of the Vice Chairperson, from among the following persons: <Amended on Dec. 17, 2013; Apr. 14, 2015; Jun. 20, 2017>

1. Persons recommended respectively by the members of the Committee under the jurisdiction of the Ministry of National Defense, the Headquarters of the Joint Chiefs of Staff, the headquarters of armed forces, and the Headquarters of the Marine Corps, from among public officials at the level of director general or military officers of the rank of general in the relevant agencies;

2. Public officials at the level of director general or military officers of the rank of general belonging to the Defense Acquisition Program Administration;

3. Persons recommended by the members of the Committee falling under Article 9 (4) 3 and 4 of the Act, from among public officials at the level of director general or executive officers or employees of the agencies to which such members belong;

4. Persons commissioned pursuant to Article 9 (4) 5 and 6 of the Act.

(4) The term of office for members of each subcommittee commissioned pursuant to paragraph (3) 1 through 3 shall coincide with the term of service in their positions, and the term of office for members of each subcommittee appointed pursuant to subparagraph 4 of that paragraph shall coincide with the term of service as a member of the Committee.

(5) Articles 14 (1) through (4) and (7), 14-2 and 14-3 shall apply mutatis mutandis to the operation of subcommittees. In such cases, the "Committee" shall be construed as "each subcommittee", the "Chairperson" as the "chairperson of each subcommittee", the "Vice Chairperson" as a "member designated in advance by the chairperson of each subcommittee." <Amended on Jun. 20, 2017>

Article 15-2(Working Committees) #

(1) Working committees necessary in each field shall be established under the control of subcommittees (excluding the military power policy subcommittee) prescribed in Article 15 (1) pursuant to Article 10 (3) of the Act.

(2) Each working committee shall deliberate on and coordinate matters requiring prior review before deliberation or coordination by the relevant subcommittee and other matters necessary for supporting affairs of the subcommittee.

(3) Each working committee shall be comprised of not less than 5 nor more than 20 members, including one chairperson, in consideration of gender.

(4) A person appointed by the Minister of the Defense Acquisition Program Administration, from among public officials at the level of director or military officers of the rank of general of the Defense Acquisition Program Administration, shall serve as the chairperson of each working committee, and the following persons shall serve as members of each working committee:

1. Persons appointed by the head of an agency to which they belong from among public officials or military officers of the rank of section chief belonging to the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, the Headquarters of each Armed Force and Marine Corps;

2. Persons appointed by the head of the relevant agency from among public officials of the rank of section chief or higher in agencies to which members of the Committee prescribed in Article 9 (4) 3 of the Act belong;

3. Persons recommended by members of the Committee prescribed in Article 9 (4) 4 of the Act from among executive officers and employees under their jurisdiction;

4. Persons commissioned by the Minister of the Defense Acquisition Program Administration, who are experts who have expert knowledge of and experience in defense acquisition programs.

(5) Each working committee shall convene a meeting, when the chairperson of each working committee deems it necessary.

(6) Articles 14 (1), (2) and (4), 14-2, and 14-3 shall apply mutatis mutandis to the operation of each working committee. In such cases, "Committee" shall be construed as "each working committee;" "Chairperson" as "chairperson of each working committee;" "Minister of National Defense" as "Administrator of the Defense Acquisition Program Administration;" and "Vice Chairperson" as "a member designated in advance by the chairperson of each working committee," respectively.

(7) Except as provided in paragraphs (1) through (6), the Minister of the Defense Acquisition Program Administration shall prescribe matters necessary for the organization, operation, etc. of each working committee.

[This Article Added on Jun. 20, 2017]

Article 20-3(Requirement Review Committee) #

(1) The Minister of National Defense may establish and operate a review committee (hereinafter referred to as the "Review Committee") as necessary to deliberate on requirement reviews. <Amended on Oct. 4, 2022>

(2) The Review Committee shall be comprised of not exceeding 21 members, including one chairperson.

(3) The Vice Minister of National Defense shall serve as the chairperson of the Review Committee, the The Director General of the Office of Military Force Policies of the Ministry of National Defense shall serve as the vice chairperson, and members of the Committee shall be persons under subparagraphs 1 through 4, and may include persons under subparagraphs 5 or 6 as necessary: <Amended on Jul. 26, 2017; Oct. 4, 2022; Jul. 25, 2023>

1. The Director General of Strategy and Planning of the Headquarters of the Joint Chiefs of Staff, the Deputy Chiefs of Staff of armed forces, and the Assistant Commandant of the Marine Corps;

2. Vice Minister of the Defense Acquisition Program Administration;

3. Persons appointed by the Minister of Economy and Finance, the Minister of Science and ICT, and the Minister of Trade, Industry and Energy, from among public officials at the level of an executive director or director-general of such Ministries;

4. The Deputy Chief of the Korea Institute for Defense Analysis, the Deputy Director of the Agency for Defense Development, and the Director General of Technology and Planning of the Defense Agency for Technology and Quality;

5. Persons from among executive officers and employees of Government-funded research institutes established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes who are recommended by the heads of such institutes;

6. Persons from among those with considerable knowledge and experience in the requirements of weapons systems, etc., defense acquisition programs, economy or industries.

(4) The Minister of National Defense may dissolve the Review Committee, if he or she recognizes that the purpose of organization of the Review Committee has been accomplished. <Added on Oct. 4, 2022>

(5) The Minister of National Defense may organize and operate a working committee for requirement review to efficiently conduct the affairs of the Review Committee. <Amended on Oct. 4, 2022>

(6) Matters necessary for the operation of the Review Committee, such as meetings of the Review Committee and the organization and operation of a working committee for requirement review, shall be prescribed by the Minister of National Defense. <Amended on Oct. 4, 2022>

[This Article Added on Nov. 4, 2014]

Article 22(Decision-Making Processes regarding Requirements) #

(1) Where the Chairman of the Joint Chiefs of Staff intends to determine the requirements for weapons systems, etc. pursuant to Article 15 (1) of the Act, he or she shall first obtain written proposals of requirements, including the following, from the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, the headquarters of each branch of the armed forces, the Headquarters of the Marine Corps, and agencies under the direct control of the Ministry of National Defense (hereinafter referred to as "agencies proposing requirements"): <Amended on Nov. 4, 2014; Jan. 22, 2019; Feb. 11, 2022; Apr. 30, 2024>

1. Necessity, operational concept, time of force integration, and required quantities of weapons systems, etc.;

2. Required operational capability (referring to the performance of weapons systems, etc. necessary for operational employment; hereinafter the same shall apply);

3. A plan to develop required operational capability in step with technical development trends (excluding cases where it is inappropriate or impracticable to devise such plan when taking into account the characteristics of weapons systems, project sizes, and other factors);

4. Requirements for support elements of force integration;

5. Other reference materials necessary to determine requirements, etc. for weapons systems.

(2) Where it is necessary for each agency proposing requirements to propose objective and reasonable requirements before it submits a written proposal of requirements pursuant to paragraph (1), it may require a specialized research institute or a general research institute prescribed by the Minister of National Defense to perform research on the necessity, operational concept, and required operational capability of weapons systems, etc. <Added on Jan. 22, 2019>

(3) The Chairman of the Joint Chiefs of Staff shall review written proposals of requirements submitted by agencies proposing requirements pursuant to paragraph (1) and formulate a force requirement plan, including matters under the subparagraphs of that paragraph. <Amended on Jan. 22, 2019>

(4) Each agency proposing requirements or the Chairman of the Joint Chiefs of Staff shall consider the following matters when preparing written proposals of requirements referred to in paragraph (1) or formulating force requirement plans referred to in paragraph (3): <Amended on Nov. 4, 2014; Jan. 22, 2019>

1. The basic direction-setting for policies on national defense;

2. Information acquired by analyzing the domestic and international situation of national defense;

3. The basic direction-setting for implementing a plan formulated by the Joint Chiefs of Staff for the construction of military capabilities based on current conditions of national security, military strategies, etc.;

4. The level of science and technology developed and secured for national defense;

5. The appropriate working efficiency and production capacity of defense contractors, etc.;

6. Matters regarding the maintenance and repair of weapons systems;

7. Compatibility and interoperability.

(5) The Agency for Defense Development, the Defense Agency for Technology and Quality, defense contractors, etc., or research institutes specified in Article 6 (1) 4 of the Act may present their opinions on requirements to the heads of agencies proposing requirements and the Chairman of the Joint Chiefs of Staff. <Amended on May 28, 2018; Jan. 22, 2019>

(6) Where the Chiefs of Staff of the respective armed forces and the Commander of the Marine Corps determines the requirements for weapons systems, etc. pursuant to the former part of Article 15 (1) of the Act, they shall prepare a draft form requirements for force including the matters referred to in the subparagraphs of paragraph (1), taking into consideration the matters referred to in the subparagraphs of paragraph (4), and shall be determined through self-deliberation procedures prescribed by the Chiefs of Staff of the respective armed forces and the Commander of the Marine Corps. If necessary to prepare a draft form requirements for force scientifically and quantitatively, opinions on the requirements of the agencies, etc. referred to in the subparagraphs of paragraph (7) may be heard. <Added on Jul. 16, 2024>

(7) Where necessary for formulating force requirement plans referred to in paragraph (3) of this Article in a scientific and quantitative manner prescribed in the latter part of Article 15 (1) of the Act, the Chairman of the Joint Chiefs of Staff shall hear opinions on requirements of the following agencies, etc. or operate a joint concept team comprised of public officials or employees of the agencies prescribed in subparagraphs 1 and 2 and experts prescribed in subparagraph 4. In such cases, matters necessary for the organization and operation of the joint concept team shall be determined by the Chairman of the Joint Chiefs of Staff: <Amended on May 28, 2018; Jan. 22, 2019; Jul. 16, 2024>

1. The Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, and the armed forces;

2. The Korea Institute for Defense Analysis, the Agency for Defense Development, and the Defense Agency for Technology and Quality;

3. Party interested in defense contractors, etc.;

4. Civilian specialists in defense industry field.

(8) The Chairman of the Joint Chiefs of Staff shall hear the opinions of the Minister of the Defense Acquisition Program Administration on the force requirement plans referred to in paragraph (3) of this Article before deliberation by the meeting of the Joint Chiefs of Staff prescribed in the latter part of Article 15 (1) of the Act. <Added on May 28, 2018; Jan. 22, 2019; Jul. 16, 2024>

(9) Except as provided in paragraphs (1) through (8), matters necessary for the decision-making processes regarding requirements shall be prescribed by Ministerial Decree of the National Defense. <Amended on May 28, 2018; Jan. 22, 2019; Jul. 16, 2024>

[This Article Wholly Amended on Dec. 17, 2013]

Article 22-2(Procedures for Decision on Expeditious Requirements) #

(1) The Chairman of the Joint Chiefs of Staff shall, when he or she intends to determine expeditious requirement (hereinafter referred to as "expeditious requirement") for weapons systems to which the mature technology of the private sector is applied pursuant to Article 15-2 (1) of the Act, receive a written proposal for expeditious requirement from the agencies proposing requirements, including the following matters: <Amended on Apr. 30, 2024>

1. Necessity, operational concept, time of force integration, and required quantities of weapons systems;

2. Required operational capability;

3. Requirements for support elements of force integration;

4. Other reference materials to determine expeditious requirements, etc.

(2) The Chairman of the Joint Chiefs of Staff shall review the written proposal for expeditious requirement pursuant to paragraph (1) and shall prepare a force requirement plan, including matters under the subparagraphs of the aforesaid paragraph.

(3) Each agency proposing requirements or the Chairman of the Joint Chiefs of Staff shall, when he/she prepares a written proposal for expeditious requirement referred to in paragraph (1) or a force requirement plan referred to in paragraph (2), take into account the matters in each subparagraph of Article 22 (4).

(4) The Agency for Defense Development, the Defense Agency for Technology and Quality, defense contractors, etc., or research institutes specified in Article 6 (1) 4 (d) and (e) of the Act may present their opinions on expeditious requirements to the heads of agencies proposing requirements and the Chairman of the Joint Chiefs of Staff.

(5) The Chairman of the Joint Chiefs of Staff shall, as necessary to scientifically and quantitatively prepare a force requirement plan under paragraph (2), hear opinion from the following agencies and others on expedited requirements or operate an integrated concept team consisting of public officials and employees from agencies under paragraphs (1) and (2) and civilian specialists under paragraph (4); in such cases, necessary matters for the composition and operation of the integrated concept team shall be decided by the Chairman of the Joint Chiefs of Staff:

1. The Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, and the armed forces;

2. The Korea Institute for Defense Analysis, the Agency for Defense Development, and the Defense Agency for Technology and Quality;

3. Party interested in defense contractors, etc.;

4. Civilian specialists in defense industry field.

(6) Notwithstanding paragraph (5), the Chairman of the Joint Chiefs of Staff may, when he or she performs the prior conceptual studies under Article 15-3 (1) of the Act (hereinafter referred to as "prior conceptual studies"), simplify the organization and operation of the integrated concept team, such as comprising the integrated concept team only of public officials and employees belonging to the institutions under paragraph (5) 1 and 2, as prescribed by the Minister of National Defense.

(7) The Chairman of the Joint Chiefs of Staff shall, under the latter part of Article 15-2 (1) of the Act, consider the opinions of the Administrator of the Defense Acquisition Program Administration before the deliberation of the Joint Chiefs of Staff on the written proposal for expeditious requirement referred to in paragraph (2) of this Article.

(8) Except as otherwise provided in paragraphs (1) through (7), detailed procedures for determining expedited requirements shall be determined by the Minister of National Defense.

[This Article Added on Aug. 16, 2023]

Article 22-3(Procedures for Conducting Prior Conceptual Studies) #

(1) Where the Chairman of the Joint Chiefs of Staff intends to require the staff of the Agency for Defense Development, etc. to carry out the prior conceptual studies under Article 15-3 (1) of the Act, he or she shall receive a request for the prior conceptual studies from the agency proposing requirements.

(2) The Chairman of the Joint Chiefs of Staff shall, in receipt of a written request for prior conceptual studies pursuant to paragraph (1), select projects subject to the prior conceptual studies, in consideration of the necessity of research, urgency, the ability of an institution that performs the prior conceptual studies, such as the Agency for Defense Development (hereinafter referred to as "institutions performing prior conceptual studies"), and determine the order of performing prior conceptual studies. In such cases, the Chairman of the Joint Chiefs of Staff shall hear the opinions of the heads of agencies proposing requirements, the Commissioner of the Defense Acquisition Program Administration, and institutions performing prior conceptual studies.

(3) When institutions performing prior conceptual studies perform prior conceptual studies, they shall include the following in the scope of the studies: <Amended on Apr. 30, 2024>

1. Necessity and operational concept of weapons systems, etc.;

2. Required operational capability;

3. Requirements for support elements of force integration;

4. Analysis of alternatives;

5. Possibility of expeditious armed forces (limited to cases where prior conceptual studies are conducted to determine expeditious requirements);

6. Examining whether it is possible to combine the developmental test and evaluation and operational test pursuant to the proviso of Article 21 (3) of the Act (limited to cases where prior conceptual studies are conducted to determine expeditious requirements);

7. Other matters deemed necessary by the Minister of National Defense in order to efficiently conduct prior conceptual studies.

(4) Except as provided in paragraphs (1) through (3), matters necessary for procedures for conducting prior conceptual studies shall be determined by the Minister of National Defense.

[This Article Added on Aug. 16, 2023]

Article 24(Methods of Implementing Defense Force Improvement Projects) #

(1) Where prior research referred to in Article 17 (1) of the Act has been completed or expeditious requirements are determined, the Minister of the Defense Acquisition Program Administration shall formulate a basic strategy for implementing defense force improvement projects and submit it for deliberation by the Committee. <Amended on Aug. 16, 2023>

(2) The basic strategy for project implementation under paragraph (1) shall include the following: <Amended on Jan. 22, 2019; Aug. 16, 2023>

1. Details of review on research and development, or decisions on purchasing;

2. Matters regarding the types of research and development, methods of purchasing, etc.;

3. Detailed direction-setting for project implementation, following research and development, or purchasing;

4. Methods for test and evaluation (including whether the developmental test and evaluation and operational test are conducted in combination under the proviso of Article 21 (3) of the Act and the replacement of the test evaluation under paragraph (5) of the same Article);

5. Schedules for project implementation;

6. Administration schemes covering the whole life cycle of weapons systems;

7. In cases of developing required operational capability, step-by-step goals and strategies for the development thereof;

8. Interoperability among the weapons systems of armed forces under the condition of joint battlefield.

(3) The types of research and development referred to in paragraph (2) 2 shall be classified as follows:

1. Domestic research and development (including cases of receiving international technological cooperation) or joint international research and development;

2. Research and development funded by the Government, research and development funded by defense contractors, etc., or joint research and development funded by the Government, defense contractors, etc.;

3. Research and development supervised by the Agency for Defense Development or by defense contractors, etc. through competitive bidding.

(4) Methods of purchasing referred to in paragraph (2) 2 shall be classified into domestic purchase, offshore purchase, and lease. <Added on Oct. 1, 2010>

Article 27(Formulation of Test and Evaluation Plan) #

(1) Where the Minister of National Defense intends to formulate a test and evaluation plan for the research and development among tests and evaluations of weapons systems and core technologies pursuant to Article 21 (1) and (3) of the Act, he or she shall formulate a test and evaluation master plan including the following matters; provided, where he or she deems it unnecessary to formulate a test and evaluation master plan, as prescribed by him or her, he or she need not formulate the test and evaluation master plan: <Amended on Jul. 19, 2016>

1. Outline of weapons systems subject to test and evaluation;

2. Outline of developmental test and evaluation (hereafter in this Article, referred to as "developmental test and evaluation") specified in Article 21 (3) 1 of the Act;

3. Outline of operational test and evaluation (hereafter in this Article, referred to as "operational test and evaluation") specified in Article 21 (3) 2 of the Act;

4. Resources necessary for test and evaluation;

5. Other matters necessary for test and evaluation.

(2) The Minister of National Defense shall formulate a developmental test and evaluation plan and an operational test and evaluation plan based on a test and evaluation master plan under paragraph (1); provided, where he or she deems it unnecessary to undergo both the developmental test and evaluation plan and the operational test and evaluation plan, he or she may choose not to formulate part of the plans. <Amended on Jul. 19, 2016>

(3) Where the Minister of National Defense intends to formulate a test and evaluation plan for the purchase of weapons systems among tests and evaluations of weapons systems pursuant to Article 21 (1) and (4) of the Act, he or she shall formulate a test and evaluation plan in accordance with the classification under the subparagraphs of paragraph (4) of that Article; provided, test and evaluation plan shall not be established if it is deemed unnecessary to establish a test evaluation plan as determined by the Minister of National Defense. <Added on Jul. 19, 2016; Aug. 16, 2023>

(4) A test and evaluation plan referred to in paragraphs (2) and (3) shall contain the following matters: <Amended on Jul. 19, 2016>

1. Items of equipment to be tested and evaluated, and quantities thereof;

2. The timing, place, and method of a test and evaluation;

3. Items of a test and evaluation, and the standards for evaluation;

4. Testers and evaluators;

5. Budgets needed for a test and evaluation.

(5) Where the Minister of National Defense formulates a test and evaluation plan pursuant to paragraph (2), he or she shall consider the following matters, and where he or she formulates a test and evaluation plan pursuant to paragraph (3), he or she shall consider a written request for proposal: <Amended on Oct. 1, 2010; Dec. 17, 2013; Nov. 4, 2014; Jul. 19, 2016>

1. A plan for research and development;

2. A proposal for a project for research and development by an enterprise;

3. An execution plan for a test and evaluation for development prepared by a research and development institute;

4. An execution plan for a test and evaluation for operations prepared by an agency proposing requirements.

(6) For the purposes of the efficient formulation of plans for a test and evaluation, confirmation of the progress of a test and evaluation, judgment of results, etc., the Minister of National Defense may operate a combined test and evaluation team consisting of staff members of the Ministry of National Defense, the Joint Chiefs of Staff, the Defense Acquisition Program Administration, armed forces, the Defense Agency for Technology and Quality, and each agency referred to in Article 21 (2) of the Act, and matters regarding the composition and operation thereof shall be prescribed by the Minister of National Defense. <Amended on Nov. 4, 2014; Jul. 19, 2016>

(7) Where armed forces or relevant agencies test or evaluate weapons systems and core technology pursuant to Article 21 (2) of the Act, the Minister of National Defense shall secure and provide the budget necessary for smoothly conducting a test and evaluation. <Amended on Nov. 4, 2014; Jul. 19, 2016>

(8) The Minister of National Defense may conduct a test and evaluation based on data pursuant to the latter part, with the exception of the subparagraphs, of Article 21 (4) of the Act in the following cases: <Added on Jul. 19, 2016; Aug. 16, 2023>

1. Where he or she purchases a weapons system which has no pilot product because it is being developed;

2. Where he or she repurchases or purchases a partly remodeled weapons system currently in operation in the Republic of Korea;

3. Where he or she purchases a weapons system currently in operation in order to integrate it into the complex weapons system, such as naval vessels and aircraft.

(9) Matters necessary for conducting a test and evaluation, such as procedures for test and evaluation, shall be prescribed by Ministerial Decree of the National Defense. <Amended on Jul. 19, 2016>

[Title Amended on Jul. 19, 2016]

Article 29(Methods of Procurement) #

(1) Where the Minister of the Defense Acquisition Program Administration procures munitions in a lump pursuant to the main clause of Article 25 (2) of the Act, he or she may procure munitions by methods of domestic procurement, offshore procurement, or lease. In such cases, detailed procedures for procurement shall be determined by the Minister of the Defense Acquisition Program Administration.

(2) Munitions that armed forces may directly procure pursuant to the proviso of Article 25 (2) of the Act (hereinafter referred to as "procurement by military unit") shall be as follows: <Amended on Apr. 30, 2024>

1. Pilot products developed directly by the military unit that manages munitions;

2. Consumable materials necessary for the maintenance of munitions performed by a military maintenance unit (including the military maintenance depot; hereinafter the same shall apply), and for the manufacture of necessary parts therefor;

3. Items the planned amount of annual procurement of which by item is less than 30 million won, and unitary items with a track record of procurement by the military unit among items the planned amount of annual procurement of which by item is between 30 million won and 50 million won;

4. Items for which there are no national defense standards pursuant to Article 31 (1) and no sample is available for presentation;

5. Goods under subparagraph 15 (d) of Article 3 of the Act;

6. Items which require the maintenance of security, such as encryption equipment used by armed forces, and items which require special manufacture and installation because the requirements of users are diverse;

7. Where equipment and parts procured by a military unit are serviced by entrusting an enterprise with such service, items necessary therefor;

8. Other items agreed with the requirement-raising armed forces because the Minister of the Defense Acquisition Program Administration deems the procurement by military unit is efficient.

(3) Where the Minister of the Defense Acquisition Program Administration purchases munitions by requesting the Administrator of the Public Procurement Service pursuant to the proviso of Article 25 (2) of the Act, he or she shall decide the matters concerning munitions subject to purchase, and methods of and procedures for purchase in consultation with the Administrator of the Public Procurement Service. In such cases, the Minister of the Defense Acquisition Program Administration shall hear an opinion of the requirement-raising armed forces.

(4) When purchasing munitions by requesting to the Administrator of the Public Procurement Service under the proviso of Article 25 (2) of the Act, the Minister of the Defense Acquisition Program Administration shall entrust the procurement of the following munitions to the Administrator of the Public Procurement Service. <Added on Jul. 1, 2020>

1. Commercial items from among combat support equipment provided for in subparagraph 1 of Article 2-2;

2. Combat support materials referred to in subparagraph 2 of Article 2-2;

3. Medical support materials referred to in subparagraph 3 of Article 2-2.

(5) Notwithstanding paragraph (4), any of the following munitions that are necessary for operations, training and security may be excluded from those entrusted, in consultation with the Minister of the Defense Acquisition Program Administration: <Added on Jul. 1, 2020>

1. Munitions procured in parallel with equipment on the grounds of a close relationship to the weapons system or for an efficient maintenance and management of equipment;

2. Munitions that require special attention for security, such as disguised networks, encryption equipment and military maps;

3. Munitions purchased from foreign countries by utilizing the foreign government’ overseas military sales system or the like;

4. Other munitions for which direct procurement by the Minister of the Defense Acquisition Program Administration is deemed efficient in terms of operations, training and security.

(6) The Minister of the Defense Acquisition Program Administration shall perform the standardization of munitions under Article 26 of the Act procured by entrustment to the Administrator of the Public Procurement Service pursuant to paragraph (4) and the management of information on the inventory of munitions under Article 27 of the Act. <Added on Jul. 1, 2020; Feb. 11, 2022>

[This Article Wholly Amended on Oct. 1, 2010]

Article 37(Operation and Supervision of Defense Agency for Technology and Quality) #

(1) "Matters prescribed by Presidential Decree" in Article 32 (6) 10 of the Act means the following: <Amended on Jul. 19, 2016; May 28, 2018; Mar. 31, 2020; Mar. 30, 2021; Aug. 16, 2023; Oct. 8, 2024>

1. Deleted; <Mar. 30, 2021>

2. Support for technical assistance and international cooperation related to offset trade, permission for export, etc.;

3. Technical support affairs related to the determination of strategic items by the Minister of the Defense Acquisition Program Administration under Article 20 (1) of the Foreign Trade Act.

(2) Contributions by the Government to the Defense Agency for Technology and Quality pursuant to Article 32 (7) of the Act shall be made annually by the Minister of the Defense Acquisition Program Administration adding the funds to the budget.

(3) The President of the Defense Agency for Technology and Quality shall formulate an annual business plan and budget plan and submit them to the Minister of the Defense Acquisition Program Administration by no later than 10 months prior to the commencement of the relevant business year, and obtain approval. The same shall apply where an approved business plan and the budget are modified.

(4) The President of the Defense Agency for Technology and Quality shall report the quarterly results of the execution of business plans to the Minister of the Defense Acquisition Program Administration within one month from the end of each quarter.

(5) The President of the Defense Agency for Technology and Quality shall have the settlements of each business year audited by a certified public accountant designated by the Minister of the Defense Acquisition Program Administration, and submit the results thereof to the Minister of the Defense Acquisition Program Administration by the end of March of the following year.

(6) In cases falling under paragraph (5), details of settlement relating to national secrets and matters directly related thereto shall be excluded from the subject matter of audits by the certified public accountant.

Article 40(Scope of Designation of Defense Materials) #

(1) The Minister of the Defense Acquisition Program Administration shall designate defense materials by unit of a finished product or a main component (referring to a component comprised in one object connected by at least two combined bodies); provided, for the following items that require smooth procurement in order to enhance the efficiency of the operation of defense materials and weapons systems, defense materials may be designated by unit of a combined body (referring to a component assembled by at least two parts connected each other) or parts (referring to a single part as a minimal unit that cannot be further disassembled): <Amended on Oct. 1, 2010; Dec. 17, 2013; May 11, 2021; Feb. 11, 2022>

1. Munitions involving any of the following technologies:

(a) A technology secured through the research and development of core technologies under the Defense Science and Technology Innovation Promotion Act;

(b) A defense technology defined in the Defense Technology Security Act;

2. Components developed through the projects for domestic development of components under Article 9 (2) of the Defense Industry Development and Support Act (hereinafter referred to as "projects for domestic development of components) which meet the standards set by the Minister of the Defense Acquisition Program Administration.

(2) Parts used for defense materials and the following equipment required for the operation of defense materials shall be deemed designated by being included in such defense materials; provided, the foregoing shall not apply where the relevant parts and equipment are not manufactured or serviced by the relevant defense contractor, or are used for commodities which are not defense materials: <Amended on Jul. 1, 2009; Oct. 1, 2010; Nov. 29, 2016>

1. Test and measuring equipment;

2. Inspection equipment;

3. Rectification equipment.

(3) When the Minister of the Defense Acquisition Program Administration intends to designate commodities introduced from a foreign country as defense materials, he or she shall do so only where the relevant commodities are maintained in the Republic of Korea. <Added on Nov. 29, 2016>

(4) The Minister of the Defense Acquisition Program Administration may choose not to designate commodities as defense materials, for which it is deemed that at least two enterprises are able to manufacture them, in consideration of domestic technological standards. <Amended on Nov. 29, 2016>

[Title Amended on Oct. 1, 2010]

Article 41(Designation of Defense Contractors) #

(1) Anyone who intends to be designated as a defense contractor pursuant to Article 35 (1) of the Act shall apply to the Minister of Trade, Industry and Energy along with the following documents; provided, where a defense contractor who has been already designated intends to be designated to engage in the manufacture of another defense materials, he or she may apply only with the documents falling under subparagraphs 1 and 4 through 7: <Amended on Jun. 12, 2006; Feb. 29, 2008; Mar. 23, 2013; Jul. 2, 2019>

1. An application form;

2. The articles of incorporation (limited to corporations);

3. A statement of financial position and income statement;

4. Details and a description of the capacity of manufacturing facilities and the main facilities incidental thereto;

5. Results of use of raw materials and plans for procurement;

6. Kinds and specifications of products, and the results and plans for the manufacture and sale thereof;

7. A business plan;

8. Plans for upskilling engineers and technicians and a description of technical capability;

9. Plans for safety measures and explanation thereof.

(2) Where the Minister of Trade, Industry and Energy has received an application referred to in paragraph (1), he or she shall inspect the applicant’s manufacturing facilities, etc. in accordance with the standards for facilities prescribed in Article 42, and request the Minister of the Defense Acquisition Program Administration to inspect security requirements referred to in Article 44 of the Act. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(3) Where the Minister of Trade, Industry and Energy has received an application for designation of defense contractors under paragraph (2), he or she shall decide whether to designate the applicant as a defense contractor within six months and notify the applicant and the Minister of the Defense Acquisition Program Administration of such decision and deliver the certificate of designation to the applicant if he or she decides to designate. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(4) The Minister of Trade, Industry and Energy in receipt of an application for the designation under paragraph (1) shall verify a corporation registration certificate (limited to corporations) through administrative data matching referred to in Article 36 (1) of the Electronic Government Act. <Amended on Jun. 12, 2006; May 4, 2010; Nov 2, 2010; Mar. 23, 2013>

Article 45(Sale and Acquisition of Defense Contractors) #

(1) The standards for changes in substance in the governance of management of defense contractor pursuant to the provisions of Article 35 (3) of the Act shall be based on the instances falling under any of the following subparagraphs: <Amended on Dec. 7, 2010>

1. When the stocks, etc. (including equities or all other property rights; hereinafter the same shall apply) of a defense contractor are intended to be disposed of or taken over en bloc by means of sale and acquisition, exchange or merger between enterprises, execution of security rights, receipt of payment in kind, or by other means;

2. When a new corporation is established by spinning off the manufacturing sector of a defense contractor, or such manufacturing sector is intended to be disposed of or acquired en bloc by means of sale and acquisition, exchange or merger between enterprises, execution of security rights, receipt of payment in kind, or by other means;

3. When the same person intends to possess 50/100 or more of the stocks, etc. of a defense contractor independently or jointly with a person (hereinafter referred to as a "person related to the same person") falling under any of the following items (including when the same person possesses not more than 50/100 but becomes a major stockholder, and is able to exercise controlling influence over the selection of executives or management of the defense contractor directly or through a person related to the same person):

(a) Spouse, blood relatives as far as third cousins, and relatives as far as cousins of in-laws;

(b) A firm which the same person exercises a dominant influence over the principal decision-making, such as change in organization of the relevant firm or investment in new business, or the management of business for himself or herself or through a person referred to in item (a) or (c);

(c) A company where the same person appoints or dismisses the representative director of the relevant company, or appoints or designates 50/100 or more of the directors by contract or agreement with other major stockholders;

4. When a defense contractor is intended to be managed by means of acquisition by transfer, hire or entrustment of management of all or part of the business.

(2) Anyone who intends to obtain approval from the Minister of Trade, Industry and Energy in acquiring the controlling rights over a defense contractor pursuant to the provisions of Article 35 (3) of the Act shall submit an application for approval prescribed by Ministerial Decree of the National Defense along with the documents falling under Article 41 (1) 2 and 3 and the documentary evidence regarding acquisition of stocks, etc. of a defense contractor to the Minister of Trade, Industry and Energy; provided, where a person intends to manage a defense contractor with modifying the manufacturing facilities or requirements for security after the acquisition of the defense contractor, he or she shall also submit the documents falling under Article 41 (1) 4 through 9. <Amended on Feb. 29, 2008; Mar. 23, 2013>

(3) Where the Minister of Trade, Industry and Energy has granted approval pursuant to the provisions of paragraph (2), he or she shall notify the applicant and the Minister of the Defense Acquisition Program Administration of the fact. When the name, representative, address, etc. of the defense contractor are modified following such approval, he or she shall renew the certificate of designation of defense contractors. <Amended on Feb. 29, 2008; Mar. 23, 2013>

Article 46(Commissioning of Specialized Research Institutes) #

(1) The Minister of the Defense Acquisition Program Administration shall commission a specialized research institute, from among the organizations satisfying the requirements for security prescribed in Article 44 (1), in consideration of the research facilities and level of technology; provided, in cases of commissioning of specialized research institutes to implement projects for research and development other than those involving military secrets, the requirements for security pursuant to the provisions of Article 44 (1) may not apply.

(2) Where the Minister of the Defense Acquisition Program Administration intends to commission a specialized research institute pursuant to the provisions of paragraph (1), he or she may cause the relevant organization to submit the documents in the following subparagraphs. In such cases, the provisions of Article 41 (4) shall apply mutatis mutandis to the commission procedure of specialized research institutes: <Amended on Jun. 12, 2006>

1. The articles of incorporation (limited to corporations);

2. Details of research facilities and main annexed facilities, and a description of capacity;

3. A business plan and business outcomes;

4. A description of technical capacity.

(3) Where the Minister of the Defense Acquisition Program Administration intends to commission a research institute operated by the Government or a local government, or a government-funded research institute as a specialized research institute, he or she shall consult with the supervising organization in advance.

(4) Where the Minister of the Defense Acquisition Program Administration has commissioned a specialized research institute, he or she shall deliver a certificate of commission of specialized research institute to the specialized research institute. In such cases, he or she shall notify the supervising organization in charge of the fact where he or she has commissioned pursuant to the provisions of paragraph (3).

Article 50(Protection and Fostering of Defense Contractors) #

(1) The Government shall preferentially purchase defense materials manufactured by defense contractors.

(2) The Minister of the Defense Acquisition Program Administration shall notify the relevant defense contractors annually of the quantity of defense materials planned for manufacturing.

(3) Where the defense contractor intends to manufacture the annual quantity before the procurement contract of the pertinent year is concluded from among the planned manufacturing quantity notified pursuant to the provisions of paragraph (2), he or she shall obtain approval therefor from the Minister of the Defense Acquisition Program Administration.

(4) Where the Minister of the Defense Acquisition Program Administration intends to conclude a long-term contract, he or she shall notify the defense contractor concerned of quantities of defense materials planned for manufacturing by year and such defense contractor may secure raw materials and parts within budget of the relevant year by obtaining approval from the Minister of the Defense Acquisition Program Administration prior to the conclusion of a procurement contract. <Added on Jan. 7, 2009; Apr. 30, 2024>

(5) The defense contractor may request the Minister of the Defense Acquisition Program Administration to grant a quality certification of the materials manufactured pursuant to paragraph (3) and raw materials and parts secured pursuant to paragraph (4), and the Minister of the Defense Acquisition Program Administration shall comply therewith, in the absence of good cause. <Amended on Jan. 7, 2009>

(6) Where there are materials manufactured pursuant to the provisions of paragraph (3) which are difficult to keep or are prone to safety accidents, etc., the defense contractor may deliver or keep the materials in the place determined by the relevant Chief of Staff after consultation with the armed force where such materials are to be delivered. <Amended on Jan. 7, 2009>

Article 59(Transfer and Lease of State-Owned Property) #

(1) General assets that can be leased without consideration pursuant to Article 45 (1) of the Act shall be as follows: <Amended on Jul. 27, 2009; Mar. 30, 2021>

1. Knowledge and information on defense science and technology under Article 12 (1) of the Defense Science and Technology Innovation Promotion Act;

2. Land, buildings, and structures provided directly for the transfer of defense facilities executed in accordance with an order pursuant to Article 49 (1) of the Act.

(2) Administrative assets that can be permitted for use without consideration pursuant to Article 45 (1) of the Act shall be as follows:

1. All kinds of test centers and laboratory facilities;

2. Explosives disposal sites;

3. Shooting ranges;

4. Other assets prescribed by Ministerial Decree of the National Defense as necessary for the manufacture and testing of defense materials.

(3) Equipment for exclusive use or goods that can be leased free of charge or at a cost pursuant to Article 45 (2) of the Act shall be raw materials, equipment, jigs and fixtures, measuring instruments, inspection machinery and tools, or articles and parts thereof for performance test and inspection, which are used for the manufacture and research of defense materials or manufacture of prototypes.

(4) Cases where specialized equipment or goods can be leased with or without consideration under paragraph (3) shall be as follows: <Amended on May 11, 2021>

1. Where the repair of disorder takes a long time or is impossible, or where it is apprehended to incur setbacks to the manufacture of defense materials due to difficulties in domestic purchase or in import from overseas;

2. Where it is needed for the performance test or inspection of defense materials;

3. Where it is impossible to manufacture defense materials as the manufacturing facilities have been destroyed due to natural disaster or other accidents;

4. Where the lease thereof is stipulated as a condition in the procurement contract or in commissioning of research and development, etc. of defense materials;

5. Where it is necessary for the test and evaluation of the results of projects for domestic development of components.

(5) Equipment for exclusive use or goods that can be transferred free of charge under Article 45 (2) of the Act are as follows: <Amended on May 11, 2021>

1. Specialized equipment or goods that have been leased pursuant to Article 45 (2) of the Act, but that cannot be returned or the return thereof is inappropriate after use as they fall under paragraph (4) 2 or 3;

2. Munitions that are equipment determined by the military as useless or surplus articles, but that can be used after repair or recycled by defense contractors or specialized research institutes;

3. Goods leased under paragraph (4) 5, for which transferring is economically advantageous, considering the costs of restoration or storage for the return after the test and evaluation.

(6) In any of the following cases, the Government shall preferentially consider transferring or leasing a facility owned by the State for manufacturing defense materials or lending defense materials owned by the State, without consideration, granting permission for the use of such facility or defense materials, or exchanging such defense materials with defense materials owned by a defense contractor pursuant to Article 45 (4) of the Act: <Added on Dec. 17, 2013; May 11, 2021>

1. Where a facility for manufacturing defense materials or defense materials become unusable because of aging or any other reason, and it is economically better to transfer such facility or defense materials without consideration, compared with the cost of shutdown or disposal;

2. Where the appropriate circulation cycle for the maintenance of quality or performance of defense materials is anticipated to elapse, and it is necessary to replace such defense materials with new ones;

3. Where it is anticipated to keep excessive quantity of certain defense materials in stock as a result of a decrease in the demand for the defense materials following a change in weapons systems, and it is necessary to replace such defense materials with other materials.

(7) Where a defense contractor or a specialized research institute intends to use, borrow, or acquire State assets pursuant to paragraphs (1) through (6), it shall apply therefor to the relevant management agency along with the following documents after receiving recommendation by the Minister of the Defense Acquisition Program Administration: <Amended on Dec. 17, 2013; May 11, 2021>

1. An application form;

2. A plan for utilization.

(8) Upon receipt of an application under paragraph (7), the management agency shall permit the use thereof, lease or transfer, in the absence of good cause. <Amended on Dec. 17, 2013; May 11, 2021>

[Title Amended on May 11, 2021]

Article 61(Types, Terms, and Methods of Contracts) #

(1) Contracts referred to in Article 46 (1) of the Act shall be concluded in accordance with the following classification: <Amended on Jul. 1, 2009; Oct. 1, 2010; Dec. 17, 2013>

1. General conclusive contracts: Where the contract amount is agreed at the time of conclusion of the contract, and the agreed contract amount is to be paid to the party to the contract if the agreed contract terms are fulfilled;

2. Commodity price-coordinated unit price contract: Where it is intended to conclude a contract for an item, for which a contract has been concluded during the latest three years after determining an estimated price by the cost calculation method, at a price of not more than the maximum contract amount determined by the Minister of the Defense Acquisition Program Administration by adjusting the latest contract unit price by fluctuation rate of the index specified by Ministerial Decree of the National Defense, such as the price indexes collected and published by the Bank of Korea under Article 86 of the Bank of Korea Act, without re-calculating the cost;

3. Cost reduction compensation contract: Where the amount of cost reduction is deducted from the contract amount and the compensation within the extent of the cost reduction is intended, when there is new technology or development of engineering methods, business rationalization, etc. during the contract execution period after the conclusion of a contract;

4. Cost reduction incentive contract: Where cost reduction can be expected in the nature of a contract or it is necessary to encourage cost reduction for substituting imported products with domestically-manufactured products, the contract is concluded with a targeted cost or profit specified for the items or components of the cost, the level of which the opposite party to the contract can control, and an incentive shall be paid in addition to the contract amount according to the results of the actual cost, the achievement of the targeted profit, and the reduction of the targeted cost after performing the contract;

5. Ceiling amount contract: Where a ceiling amount is established in order to efficiently secure repair parts for main equipment and maintenance for the operation of weapons systems when a contract is concluded, and the repair parts and maintenance are to be requested from the contracting enterprise for a certain period within the scope of such ceiling amount;

6. Midway conclusive contract: Where the contract amount is to be determined in the course of execution of a contract as it is difficult to determine the contract amount at the time of conclusion of a contract in view of the nature of a contract;

7. Deleted; <Dec. 17, 2013>

8. Indeterminate item contract: Where it is difficult to determine the cost of certain items that constitute the contract amount when concluding a contract, it is intended to determine only the items which are possible to determine the cost, and part of the items that are difficult to determine are to be determined after the execution of a contract;

9. General approximation contract: Where the contract amount is to be determined after the execution of a contract as there is no cost data to determine the contract amount at the time of conclusion of a contract;

10. Performance-based contract: Where it is required to accomplish a certain performance objective at the time of conclusion of a contract and the consideration is to be paid commensurate with performance after the contract execution;

11. Long-term option contract: Where the period of a contract is specified, which shall not exceed five years, and the conditions of amendment with respect to the price for the estimated quantity of requirements, the period of a contract, the termination of a contract, etc. are stipulated, but a separate contract shall be concluded on the quantity that shall be purchased by enforcing the conditions of amendment;

12. Ceiling performance contract: Where a ceiling for the supply of parts is fixed for a specified period of a contract, which shall not exceed five years, at the time a contract for the supply of parts for the repair of a weapons systems is concluded, and then the supplier is required to supply parts for repair as necessary within the ceiling, and the price therefor may vary according to the performance of supply.

(2) Upon completion of the performance of a contract concluded under any of paragraph (1) 3 through 6, 8 through 10, and 12, the contractor shall obtain approval therefor from the Minister of the Defense Acquisition Program Administration under Article 70 (3) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party; provided, upon completion of the performance of a contract concluded for procurement by a military unit, the contractor shall obtain approval therefor from the competent Chief of Staff or the competent head of an agency under the direct control of the Ministry of National Defense, notwithstanding Article 70 (3) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party. <Amended on Jul. 1, 2009; Dec. 17, 2013>

(3) Article 7 of the Act on Contracts to Which the State Is a Party shall apply to the method of a defense acquisition contract under the latter part of Article 46 (1) of the Act, and it may be concluded as a free contract in the following cases: <Added on Jul. 1, 2009; Dec. 17, 2013; Nov. 4, 2014; Apr. 14, 2015; Jan. 22, 2019; Feb. 2, 2021; Mar. 30, 2021; Feb. 11, 2022; Aug. 16, 2023; Apr. 30, 2024>

1. Where a contract for the manufacture (referring to the manufacture under Article 2 (1) 2 of the Defense Industry Development and Support Act) or purchase of defense materials (including a contract for the manufacture or purchase of repair parts (limited to those necessary at the stage of acquiring weapons systems) under subparagraph 13 (b) of Article 3 of the Act, which are not manufactured by the relevant defense contractor) is concluded with a defense contractor;

1-2. Where a purchase contract is concluded with a person who implemented the pilot project, after being selected as a project implementer under Article 24-2 (1), with regard to a weapons system the requirements for which are determined through the pilot project;

2. Where a ceiling amount contract referred to in paragraph (1) 5 is concluded;

3. Where a performance-based contract referred to in paragraph (1) 10 is concluded;

4. Where a contract is concluded for a quantity purchased by enforcing the terms of amendment under a long-term option contract under paragraph (1) 11;

5. Where a contract for defense acquisition programs is concluded in connection with the goods referred to in subparagraph 15 (d) of Article 3 of the Act;

6. Where a contract is concluded for the present contract partner to continue the research or production of prototype pursuant to Article 8 (1) and (4) of the Defense Science and Technology Innovation Promotion Act until the stage of mass production in order to meet the effective research and development of weapons systems or the time of reinforcing military capability;

7. Where each of the following requirements is satisfied, where a contract is concluded for the research and development of the relevant core technology with a specialized research institute having submitted the subject of a research referred to in item (b):

(a) Where the specialized research institute has submitted a research task in accordance with procedures for research and development of core technology under Article 8 (7) of the Defense Science and Technology Innovation Promotion Act with respect to the entrusted areas;

(b) Where the Minister of the Defense Acquisition Program Administration has determined to advance the research and development of core technology with respect to the research task referred to in item (a);

8. Where a contract is concluded with a domestic company that has developed the maintenance capability of equipment, components, or combinations, which is deemed necessary to develop domestic maintenance capability because there is no domestic repair clerk (repair clerk), as prescribed by the Minister of National Defense.

(4) Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for the specific details, scope, conclusion, etc. of defense acquisition program contracts shall be prescribed by Ministerial Decree of the National Defense. <Amended on Apr. 30, 2024>

(5) Deleted. <Apr. 30, 2024>

(6) Deleted. <Apr. 30, 2024>

Article 61-4(Settlement of Accounts for Contracts by Rough Estimate) #

(1) Where a contract for a defense acquisition program is concluded under an estimated contract pursuant to Article 46 (5) of the Act, Article 70 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party shall apply to the determination of the estimated price, procedures for concluding the estimated contract, standards for settlement, etc.

(2) Where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration determines the estimated price in advance pursuant to paragraph (1), he or she shall determine the estimated price based on the following prices; provided, where a contract is concluded through negotiations under Article 43 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party, the determination of the estimated price may be omitted:

1. Quoted price;

2. Price calculated by cost accounting of similar goods or services.

(3) Notwithstanding the standards for settlement of accounts under paragraph (1), in cases of an estimated contract that meets all of the following requirements, an additional settlement may be made within the scope of 3/100 of the initial contract amount; provided, the additional settlement may not exceed the difference between the budget for the relevant project and the initial contract amount at the time of public notice of a tender:

1. Where contracts are concluded through competitive tendering;

2. Where the cost calculated at the time of settlement for reasons prescribed by Ministerial Decree of the National Defense on the grounds prescribed by Ministerial Decree of the National Defense for which the other party to the defense acquisition program is unable to control, exceeds the contract price at the time of settlement (referring to the contract price reflecting the relevant change in the contract price, if the contract price is changed after the contract is concluded).

(4) Except as otherwise expressly provided for in paragraphs (1) through (3), matters necessary for the standards for concluding estimated contracts, detailed standards for settling accounts of estimated contracts, etc. shall be prescribed by Ministerial Decree of the National Defense. <Amended on Jul. 16, 2024>

[This Article Added on Apr. 30, 2024]

Article 61-7(Standards and Methods for Payment of Subscription Amount and Intermediate Payments) #

(1) In any of the following cases, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may pay a retainer and intermediate payment under Article 46-2 (1) of the Act:

1. Where the remaining implementation period of a defense acquisition program contract (excluding a purchase contract; hereafter the same shall apply in this Article) exceeds 30 days from the date on which the payment of the retainer and intermediate payment is requested;

2. Where it is deemed impracticable to perform a contract unless the retainer or intermediate payment is paid even though it does not fall under the remaining period of performance of the defense acquisition program contract under subparagraph 1.

(2) The report and intermediate payments shall be paid within the limits appropriated in the budget for the relevant year, but the total amount of payment by aggregating the report and intermediate payments shall not exceed 90/100 of the contract amount; provided, where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration deems it necessary to overcome the economic crisis caused by a disaster, economic recession, mass unemployment, etc. under subparagraph 1 of Article 3 of the Framework Act on the Management of Disasters and Safety, the report and intermediate payments may be paid in excess of 90/100 after consultation with the Minister of Economy and Finance.

(3) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall calculate the advance payment and intermediate payment based on the amount obtained by deducting the price from the contract amount in cases of a defense acquisition program contract in which consideration is paid for the completed or already paid portion pursuant to Article 15 of the Act on Contracts to Which the State Is a Party.

(4) In any of the following cases after the Minister of National Defense or the Minister of the Defense Acquisition Program Administration has paid a retainer payment and an intermediate payment, he or she shall, without delay, request the other party to the defense acquisition program contract to return all or part of the retainer payment and the intermediate payment:

1. Where the relevant defense acquisition program contract is cancelled or terminated;

2. Where he or she violates any of the conditions prescribed by Ministerial Decree of the National Defense concerning the payment, etc. of advance payments and intermediate payments.

(5) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall not pay any advance payment or intermediate payment where the other party to a contract for defense acquisition programs is subject to restrictions on qualification for participation in tendering pursuant to Article 59 of the Act, Article 70 of this Decree, and Article 27 of the Act on Contracts to Which the State Is a Party and is in the period of such restrictions.

(6) Where the other party to a defense acquisition program contract falls under any of the following cases pursuant to the main clause of Article 46-2 (3) of the Act, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may pay a retainer and an intermediate payment to the other defense acquisition program contract concluded before he or she is subject to restriction on qualification for participation in a tendering procedure:

1. Where he or she is subject to restrictions on qualification for participation in tendering, irrespective of a national defense procurement contract;

2. Where he or she is subject to restrictions on qualification for participation in tendering for less than two years in connection with a national defense procurement contract.

(7) Where the other party to a defense acquisition program contract falls under any subparagraph of paragraph (6), the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may pay a differential advance payment and intermediate payment according to the following classifications pursuant to the proviso to Article 46-2 (3) of the Act:

1. Where the other party to a defense acquisition program contract falls under paragraph (6) 1: Full payment of the amount calculated by subtracting the already paid retainer and intermediate payment from the maximum amount of the retainer and intermediate payment that can be paid pursuant to paragraphs (2) and (3);

2. Where the other party to a defense acquisition program contract falls under paragraph (6) 2: Payment differentially by at least 30/100 of the amount calculated by subtracting the already paid retainers and intermediate payments from the maximum amount of the retainers and intermediate payments that can be paid pursuant to paragraphs (2) and (3).

(8) Except as otherwise expressly provided for in paragraphs (1) through (7), matters necessary for the detailed standards for payment and return of advance payments and intermediate payments, differential standards for payment, etc. shall be prescribed by Ministerial Decree of the National Defense.

[This Article Added on Apr. 30, 2024]

Article 61-9(Imposition of Compensation for Deferment) #

(1) The compensation for deferment under Article 46-4 (1) of the Act shall be the amount calculated by multiplying the contract amount by the number of days of delay and the rate prescribed by Ministerial Decree of the National Defense.

(2) In cases falling under paragraph (1), where a person takes over (including where he or she manages and uses before taking over before taking over; hereafter the same shall apply in this Article) the completed portion or the portion paid in advance after undergoing an inspection, the penalty for delay shall be calculated based on the amount calculated by deducting the amount equivalent to such portion from the contract amount. In such cases, the takeover of the completed portion or the portion paid in advance shall be limited to the completed portion of goods, services, etc. that may be divided in light of their nature.

(3) Notwithstanding paragraphs (1) and (2), in cases of any of the following contracts, the limit on the total amount of liquidated damages for delay shall be as prescribed in paragraph (4): <Amended on Jul. 16, 2024>

1. A contract for the research and development of weapons systems under subparagraph 5 (a) of Article 2 of the Defense Science and Technology Innovation Promotion Act (A contract for the manufacture of weapons systems among the research and development of weapons systems shall be limited to defense materials);

2. The agreement conducting research and development of core technology under subparagraph 5 (b) of Article 2 of the Defense Science and Technology Innovation Promotion Act.

(4) The limit of the total amount of compensation for delay under paragraph (3) shall be as follows:

1. Where the contract period expires on or after May 1, 2024 and the compensation for deferment accrues as a result of the expiration of the contract period: An amount equivalent to 10/100 of the contract amount (referring to the amount deducted from the contract amount where the portion completed or the portion already paid is acquired through an inspection pursuant to paragraph (2); hereafter the same shall apply in this paragraph);

2. Where liquidated damages for delay are incurred due to the expiration of the contract period before May 1, 2024, the amount classified as follows:

(a) A contract falling under any subparagraph of Article 61 (4) of the previous Enforcement Decree of the Defense Acquisition Program Act (referring to the Enforcement Decree of the Defense Acquisition Program Act (referring to the Enforcement Decree of the Defense Acquisition Program Act prior to being amended by Presidential Decree No. 34459): An amount equivalent to 10/100 of the contract price;

(b) Contracts other than those referred to in item (a): An amount equivalent to 30/100 of the contract price.

(5) In applying Article 75 (2) 2 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party to a contract falling under any subparagraph of paragraph (3), the limit of a contract bond shall be the amount obtained by adding the maximum amount of compensation for deferment under paragraph (4) to the original contract bond.

(6) Except as provided in paragraphs (1) through (5), matters necessary for detailed procedures, etc. for imposing liquidated damages for delay shall be determined by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration.

[This Article Added on Apr. 30, 2024]

Article 61-10(Reduction of or Exemption from Penalty for Delay) #

(1) "Cases prescribed by Presidential Decree" in Article 46-4 (2) 1 of the Act means any of the following cases:

1. Natural disasters, incidents, emergencies, emergency disasters, infectious diseases, or other similar reasons;

2. Government is responsible for such reasons as changes in policies of the Government, failures in computerization, administrative delays, etc.;

3. Delay in importation of major raw materials or components due to war of exporting state of major raw materials or components, border closure, prohibition of exportation, etc.

(2) Pursuant to Article 46-4 (2) of the Act, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may reduce or exempt compensation for delay within the following limits:

1. In cases falling under Article 46-4 (2) 1 of the Act: Full reduction of or exemption from the liquidated damages for delay on the relevant delayed date;

2. In cases falling under Article 46-4 (2) 2 of the Act and subparagraph 3 (c) of the same paragraph: Reduction of at least 30/100 of the amount of liquidated damages for the relevant delayed date;

3. In cases falling under Article 46-4 (2) 3 (a) and (b) of the Act: Reduction or exemption as determined by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration, taking into consideration whether an appropriate subcontractor, etc. exists, other than a subcontractor who has a cause of delay, as determined by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration.

(3) The other party to a defense acquisition program contract who intends to be fully or partially reduced or exempted from compensation for delay pursuant to Article 46-4 (2) of the Act shall file an application for reduction or exemption with the Minister of National Defense or the Minister of the Defense Acquisition Program Administration, along with materials, etc. evidencing the grounds for delay in performing the contract.

(4) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration or the Minister of the Defense Acquisition Program Administration upon receipt of an application for reduction or exemption of compensation for delay under paragraph (3), he or she shall determine whether to grant reduction or exemption of compensation for delay, taking into consideration the nature and scale of the subject matter of the contract, the level of fidelity to perform the contract, etc. and notify the other party to the defense acquisition program contract of the compensation for delay calculated accordingly. If the Minister of National Defense or the Minister of the Defense Acquisition Program Administration deems it necessary in consideration of the grounds for reduction or exemption of the compensation for delay, he or she may undergo deliberation by the Defense Acquisition Program Deliberation Committee.

(5) Notwithstanding paragraph (4), where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration applies for the reduction or exemption of compensation for delay on the grounds falling under Article 46-4 (2) 2 and 3 (c) of the Act, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall determine whether to grant the reduction or exemption of compensation for delay, following deliberation by the Deliberative Committee on Defense Acquisition Program Agency after hearing the opinion of the President of the Defense Agency for Technology and Quality.

(6) Where the President of the Defense Agency for Technology and Quality intends to submit his or her opinion pursuant to paragraph (5), he or she may organize and operate a technology review committee comprised of the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, armed forces, the Agency for Defense Development, civilian experts in the field of defense acquisition programs, etc. in order to professionally review matters concerning the challenges, sincerity, etc. of the performance of contracts and gather consensus from interested parties, etc.

(7) The Technology Review Committee referred to in paragraph (6) may request the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, respective armed forces, etc. to submit data, if necessary for efficiently performing its duties. Upon receipt of a request for submission of data in such cases, a person in receipt of such request shall comply therewith, unless there is a compelling reason not to do so.

(8) Except as otherwise expressly provided for in paragraphs (1) through (7), matters necessary for the detailed standards and procedures for the reduction of or exemption from liquidated damages for delay and the composition, operation, etc. of the technology review committee shall be determined by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration.

[This Article Added on Apr. 30, 2024]

Article 61-11(Change of Contract) #

(1) Where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration intends to modify the period, amount, conditions, etc. of a contract (including an estimated contract; hereafter the same shall apply in this Article) pursuant to the proviso, with the exception of the subparagraphs, of Article 46-5 of the Act, he or she may undergo deliberation by the Deliberative Committee on Defense Acquisition Program Acquisition Agency Contracts, if deemed necessary in consideration of the scale of the contract, the clarity of the grounds for modification, etc.

(2) Where the period, amount, conditions, etc. of a contract may be modified pursuant to the proviso, with the exception of the subparagraphs, of Article 46-5 of the Act and subparagraph 1 of the same Article, the following cases shall be deemed included:

1. Change of process schedule;

2. Change in characteristics of materials;

3. Technology change;

4. Reflection of additional requirements by requirement-proposing agency;

5. Where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration deems that the cases fall under subparagraph 1 of Article 46-5 of the Act, which are equivalent to those referred to in subparagraphs 1 through 4.

(3) Where the other party to a defense acquisition program contract intends to request the Minister of National Defense or the Minister of the Defense Acquisition Program Administration to modify the contract on the grounds referred to in subparagraph 2 of Article 46-5 of the Act, the other party may request the Minister of National Defense or the Minister of the Defense Acquisition Program Administration to modify the contract, as prescribed by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration, after undergoing testing, evaluation, etc. under Article 21 of the Act in relation to the terms and conditions of the contract to be changed.

(4) Notwithstanding paragraph (1), where the Minister of National Defense or the Minister of the Defense Acquisition Program Administration intends to modify a contract for any reason prescribed in subparagraph 2 of Article 46-5 of the Act, he or she shall hear the opinion of the President of the Defense Agency for Technology and Quality and submit it for deliberation by the Deliberative Committee on Defense Acquisition Program Contracts. Article 61-10 (6) and (7) shall apply mutatis mutandis to the submission, etc. of opinion of the President of the Defense Agency for Technology and Quality in such cases.

(5) Except as otherwise expressly provided for in paragraphs (1) through (4), the Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall prescribe matters necessary for the specific details, procedures, etc. for the modification of a contract and other necessary matters; provided, matters concerning the adjustment of the contract price in the estimated contract shall be prescribed by Ordinance of the Ministry of National Defense. <Amended on Jul. 16, 2024>

[This Article Added on Apr. 30, 2024]

Article 61-12(Defense Acquisition Program Contract Deliberation Committee) #

(1) The Defense Acquisition Program Administration or the Defense Acquisition Program Administration may establish a deliberative committee on defense acquisition program contracts, respectively, in order to efficiently deliberate on and seek advice on the following matters concerning bidding or successful tenders for defense acquisition program contracts or the conclusion and execution of contracts:

1. Whether a tendering procedure, successful tendering procedure, or contract under the proviso of Article 6 (4) of the Act and Article 4 (10) of this Decree continues to be executed;

2. Matters concerning reduction of or exemption from liquidated damages for delay under Article 46-4 (2) of the Act and Article 61-10 (4) and (5) of this Decree;

3. Matters concerning change of contracts under Article 46-5 of the Act and Article 61-11 (1) and (4) of this Decree;

4. Matters concerning restrictions on qualification for participation in tendering procedures under Article 59 (1) of the Act and Article 70 (1) of this Decree;

5. Other matters the Minister of National Defense or the Minister of the Defense Acquisition Program Administration deems necessary for deliberation or consultation by the Defense Acquisition Program Contract Deliberation Committee.

(2) The Defense Acquisition Program Contract Deliberation Committee shall be comprised of not more than 15 members, including one chairperson.

(3) The chairperson of the Defense Acquisition Program Contract Deliberation Committee shall be appointed by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration from among the members of the Deliberative Committee on Defense Acquisition Program Agency Contracts, and the members of the Deliberative Committee on Defense Acquisition Program Agency Contracts shall be appointed or commissioned by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration from among the following persons:

1. Persons appointed by the heads of the agencies to which they belong, from among public officials who are at least equivalent to director general level or field-grade officers of the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, and armed forces;

2. Persons with extensive knowledge of and experience in defense acquisition programs, procurement contracts, etc.

(4) The term of office of members of the Defense Acquisition Program Contract Deliberation Committee shall be two years, and they may be reappointed only once; provided, the term of office of a member under paragraph (3) 1 shall be the period during which he or she holds the relevant position.

(5) A majority of the members of the Defense Acquisition Program Contract Deliberation Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present; provided, in cases of deliberation on paragraph (1) 2, a majority of the members of the Defense Acquisition Program Contract Deliberation Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of at least 2/3 of those present.

(6) Articles 14-2, 14-3, 17, and 18 shall apply mutatis mutandis to the exclusion, challenge, abstention, refrainment, dismissal, request for submission of materials, allowances, travel expenses, etc. of members of the Defense Acquisition Program Agency Contract Deliberation Committee.

(7) The Defense Acquisition Program Contract Deliberation Committee may establish a subcommittee if necessary to efficiently deliberate on and consult on matters delegated by the Defense Acquisition Program Contract Deliberation Committee among the matters referred to in the subparagraphs of paragraph (1). <Amended on Jul. 16, 2024>

(8) The chairperson and members of a subcommittee shall be appointed by the chairperson of the Defense Acquisition Program Administration Contract Deliberation Committee from among the members of the Defense Acquisition Program Administration Contract Deliberation Committee. <Added on Jul. 16, 2024>

(9) Matters referred to in the subparagraphs of paragraph (1) that have undergone deliberation by a subcommittee in accordance with the delegation of the Defense Acquisition Program Contract Deliberation Committee shall be deemed to have undergone deliberation by the Defense Acquisition Program Contract Deliberation Committee. <Added on Jul. 16, 2024>

(10) Paragraph (5) shall apply mutatis mutandis to the operation of meetings of the subcommittee. <Added on Jul. 16, 2024>

(11) The Defense Acquisition Program Contract Deliberation Committee shall continue to exist until Apr. 30, 2029. <Amended on Jul. 16, 2024>

(12) Except as otherwise expressly provided for in paragraphs (1) through (11), matters necessary for the composition and operation of the Deliberative Committee on Defense Acquisition Program Contracts and subcommittees shall be determined by the Minister of National Defense or the Minister of the Defense Acquisition Program Administration. <Amended on Jul. 16, 2024>

[This Article Added on Apr. 30, 2024]

Article 64-2(Approval for Participation in National Strategic Arms Projects) #

(1) The Minister of the Defense Acquisition Program Administration shall determine and publicly notify types of projects subject to approval referred to in Article 50-2 (1) of the Act, among the projects researching and developing strategically valuable arms pursuant to Article 8 of the Defense Science and Technology Innovation Promotion Act. <Amended on Mar. 30, 2021>

(2) Any enterprise which a foreign enterprise or a foreigner who intends to obtain approval to participate in a national strategic arms project or a project corresponding thereto (hereinafter referred to as "strategic arms project") substantially acquires control over management of (hereinafter referred to as "enterprise subject to approval") pursuant to Article 50-2 (1) of the Act shall submit an application for approval prescribed by Ministerial Decree of the National Defense to the Minister of the Defense Acquisition Program Administration with documents referred to in the following subparagraphs attached thereto: <Amended on Jul. 2, 2019>

1. The articles of association, statement of financial position, and statement of profit and loss for the last three years of a foreign enterprise (hereinafter referred to as "foreign investing enterprise") which has acquired substantial control over the management of an enterprise subject to approval as well as those of the enterprise subject to approval;

2. Record of mergers and acquisitions of a foreign investing enterprise and an enterprise subject to approval for the last five years;

3. Management structure and the current status of subsidiaries of a foreign investing enterprise and an enterprise subject to approval;

4. Record of investments and a plan for investment of a foreign investing enterprise (including subsidiaries) in an enterprise subject to approval;

5. The current status of exchange of human resources (including dispatch and education) between a foreign investing enterprise (including subsidiaries) and an enterprise subject to approval for the last three years;

6. Materials referred to in the following items related to security of an enterprise subject to approval:

(a) Security measures for the area where the relevant facilities may be fully protected and for the facilities;

(b) Security measures for the personnel engaged in an enterprise subject to approval;

(d) Measures to protect manufactured goods and raw materials;

(e) Measures to protect equipment and facilities;

(f) Security measures for communications facilities and means of communications;

(g) Measures to protect the process of information processing of various materials and to protect data resulting from information processing;

(h) Means of organic communications with the relevant information agency against any security accident.

(3) If the Minister of the Defense Acquisition Program Administration receives an application for approval pursuant to paragraph (2), he or she shall decide whether he or she approves within 60 days from the date he or she receives such an application and notify the applicant concerned thereof, and when he or she has approved, he or she shall issue an applicant a letter of approval prescribed by Ministerial Decree of the National Defense.

(4) When an enterprise subject to approval submits a proposal to participate in a strategic arms project, it shall submit a letter of approval pursuant to paragraph (3).

(5) The criteria for the substantial acquisition of control over management pursuant to Article 50-2 (2) of the Act shall be any of the following cases:

1. Where stocks, etc. (including stakes or all the other property rights; hereinafter the same shall apply) of an enterprise are traded, exchanged or merged between enterprises, a security right thereof is exercised, payment in substitutes thereof is received, or are acquired in a lump by other methods;

2. Where a new corporation is incorporated by separating part of an enterprise therefrom, a separated part is traded, exchanged, or merged between enterprises, a security right thereof is exercised, payment in substitutes thereof is received, or is acquired in whole by other methods;

3. Where the same person holds not less than 50/100 of the stocks, etc. of an enterprise, alone or jointly with any person (hereinafter referred to as "person who has relation with the same person") under any of the following items (including cases where the same person becomes the largest stockholder, as cases where he or she holds less than 50/100, and becomes able to exercise a dominant influence over the appointment of executives of an enterprise or management thereof for himself or herself or through a person who has relation with the same person):

(a) Spouse, blood relatives as far as third cousins, and relatives as far as cousins of in-laws;

(c) A firm which the same person may appoint or dismiss the representative director of the relevant firm or appoint not less than 50/100 of the executive officers by contract or agreement with other major stockholders;

4. Where an enterprise is managed by means of the acquisition by transfer or lease of the whole or important part of business thereof, or acceptance of entrustment of the management thereof.

[This Article Added on Oct. 1, 2010]

Article 66(Requirements for Permission to Manufacture Military Firearms, Swords and Explosives) #

(1) Cases where it is required to obtain permission from the Administrator of the Defense Acquisition Program Administration for military firearms, swords, explosives, etc. (hereinafter referred to as "military firearms, etc.") pursuant to Article 53 (1) of the Act shall be as follows; provided, for military firearms, etc. meeting the standards prescribed by the Minister of the Defense Acquisition Program Administration, the following acts (limited to subparagraph 9 in cases of military firearms and swords; and excluding subparagraph 5 in cases of military explosives) may be conducted without permission: <Amended on Mar. 31, 2020; May 11, 2021; Feb. 11, 2022>

1. Where a person intends to engage in manufacturing military firearms, etc.;

2. Where a person intends to add manufacturing items of military firearms, etc.;

3. Where a person intends to build, expand or change (referring to change of the structure of a factory, etc.; hereafter in this Article the same shall apply) manufacturing facilities of military firearms, etc., except in the following cases:

(a) Where the Agency for Defense Development intends to build, expand or change manufacturing facilities in connection with the activities under Article 7 (1) of the Act on the Agency for Defense Development;

(b) Where the Defense Agency for Technology and Quality intends to build, expand or change manufacturing facilities in connection with the implementation of the projects under Article 32 (6) of the Act, Article 71 (2) of this Decree, Article 16 (1) of the Defense Science and Technology Innovation Promotion Act and Article 19 (1) of the Enforcement Decree of the Defense Science and Technology Innovation Promotion Act;

4. Where a person intends to use manufacturing facilities of military firearms, etc. after newly building, expanding, or changing such facilities, except in the following cases:

(a) Where the Agency for Defense Development intends to use such facilities after newly building, expanding, or changing the facilities in connection with performing activities under Article 7 (1) of the Act on the Agency for Defense Development;

(b) Where the Defense Agency for Technology and Quality intends to use such facilities after newly building, expanding, or changing the facilities in connection with the implementation of the projects under Article 32 (6) of the Act, Article 71 (2) of this Decree, Article 16 (1) of the Defense Science and Technology Innovation Promotion Act and Article 19 (1) of the Enforcement Decree of the Defense Science and Technology Innovation Promotion Act;

5. Where a person intends to export or import military firearms, etc.;

6. Where a person intends to transfer or acquire military firearms, etc., except in the following cases:

(a) Where a person has consulted on and obtained approval for a sales contract of defense materials pursuant to Article 51 (2) of the Act;

(b) Where military firearms, etc. are to be delivered to armed forces according to a procurement contract;

(c) Where a person who has obtained import permission under subparagraph 5 intends to transfer to an end user under a contract according to the purpose of the import;

(d) Where each of the armed forces seeks to transfer or acquire;

7. Where a person intends to carry military firearms, etc. except in the following cases:

(a) Where a person carries military firearms, etc. manufactured by a person who has obtained permission for manufacturing pursuant to subparagraph 1 within manufacturing facilities;

(b) Where a person, who has obtained permission for export or import, permission for transfer or acquisition, permission for storage, permission for transport, or permission for disuse (including cases where transfer, acquisition, storage, transport and disuse are possible without permission) pursuant to subparagraphs 5, 6, and 8 through 10, intends to carry;

8. Where a person intends to store military firearms, etc. in a place other than manufacturing facilities permitted for use pursuant to subparagraph 4, except the following cases:

(a) Where the person intends to store in a facility on the premises of the military base, such as a military base ammunition depot;

(b) Where each of the armed forces intends to store;

9. Where a person intends to transport military firearms, etc., except in the following cases:

(a) Transporting within the area of one business site (multiple business places bordering each other are considered as one business domain) without going through a road under Article 10 of the Road Act;

(b) Transporting military firearms, etc. that are being developed by the Agency for Defense Development (including military firearms, etc. being managed by the defense contractors, etc. as the Agency for Defense Development assigns the production of prototypes, etc. to the defense contractors, etc. for development);

(c) Where the Defense Agency for Technology and Quality intends to transport in connection with the implementation of projects under Article 32 (6) of the Act, Article 71 (2) of this Decree, Article 16 (1) of the Defense Science and Technology Innovation Promotion Act, and Article 19 (1) of the Enforcement Decree of the Defense Science and Technology Innovation Promotion Act;

(d) Where each of the armed forces intends to transport;

10. Where a person intends to disuse military firearms, etc. except in the following cases:

(a) Where the person intends to disuse military firearms, etc. wherein defects are detected in the manufacturing process in the manufacturing facilities permitted for pursuant to subparagraph 4 (including cases where using manufacturing facilities is possible without permission);

(b) where each of the armed forces intends to disuse.

(2) A person who intends to obtain permission pursuant to paragraph (1) shall apply for permission to the Minister of the Defense Acquisition Program Administration, as prescribed by Ministerial Decree of the National Defense. In such cases, where a person intends to obtain permission to use manufacturing facilities of military firearms, etc. pursuant to paragraph (1) 4, he or she shall file an application within 20 days from the completion date of the construction, expansion or change of manufacturing facilities. <Amended on Mar. 31, 2020>

(3) Where the Minister of the Defense Acquisition Program Administration grants permission (only applicable to permission falling under paragraph (1) 1 through 4 and 8) upon application for permission under paragraph (2), he or she shall determine whether to grant such permission in consideration of the following requirements. In such cases, he or she shall require the president of the Agency for Defense Development to conduct a safety inspection of the manufacturing facilities and storage facilities of military firearms, etc. (hereafter in this paragraph referred to as "manufacturing facilities") and shall reflect the result therein:

1. To secure a safety distance between manufacturing facilities, and to the adjacent residential area;

2. To secure safety in the structure of manufacturing facilities and their incidental facilities;

3. To secure safety in protection of manufacturing facilities;

4. To secure maintenance of appropriate supply and quality assurance according to the demand of armed forces.

(4) Detailed matters concerning procedures for permission of military firearms, etc. under paragraph (1) and requirements for permission, etc. referred to in paragraph (3) shall be prescribed by Ministerial Decree of the National Defense.

(5) In cases of a national emergency, or where security is deemed necessary, the Minister of the Defense Acquisition Program Administration may request the commander of a military unit designated by the Minister of National Defense to escort the transport of military firearms, etc.

[This Article Wholly Amended on Jul. 1, 2009]

Article 66-3(Appointment of Persons in Charge of Security in Manufacturing and Managing Military Explosives) #

(1) A person who has obtained permission to use manufacturing facilities for military explosives shall appoint a person in charge of security in manufacturing military explosives and a person in charge of security in managing military explosives; and a person who has obtained permission for the storage of military explosives shall appoint a person in charge of security in managing military explosives, respectively, from among persons who have obtained a license prescribed in Article 28 of the Act on the Safety Management of Guns, Swords, and Explosives.

(2) Where a person who is required to appoint a person in charge of security in manufacturing military explosives or a person in charge of security in managing military explosives pursuant to paragraph (1) appoints or dismisses a person in charge of security in manufacturing military explosives or a person in charge of security in managing military explosives, he or she shall report to the Minister of the Defense Acquisition Program Administration, as prescribed by Ministerial Decree of the National Defense.

(3) A person in charge of security in manufacturing military explosives shall supervise matters concerning the manufacturing process of military explosives and a person in charge of security in managing military explosives shall supervise overall affairs of handling (excluding manufacturing) military explosives, respectively: Provided, That they shall faithfully perform supervisory duties for safety including the following matters:

1. To ensure that manufacturing facilities, etc. are maintained in conformity with the standards as at the time of permission;

2. To guide and supervise the hazard prevention regulations and the status of compliance under Article 66-2 (1);

3. To guide and supervise a safety education plan and the status of implementation thereof under Article 66-2 (2);

4. To guide and supervise the safety inspection plan and the status of implementation thereof under Article 66-2 (3).

(4) A person handling military explosives shall follow the safety instruction and supervision by a person in charge of security in manufacturing military explosives and a person in charge of security in managing military explosives.

[This Article Added on Mar. 31, 2020]

Article 68(Permission for Exportation) #

(1) A person, who intends to engage in exportation or intermediation business pursuant to Article 57 (1) of the Act, shall submit a report on exportation or intermediation business to the Minister of the Defense Acquisition Program Administration, along with the documents prescribed by Ministerial Decree of the National Defense. <Amended on Oct. 1, 2010>

(2) The Minister of the Defense Acquisition Program Administration, in receipt of a report submitted under paragraph (1), shall issue a certificate of reporting exportation or intermediation business to the relevant reporting person. <Amended on Oct. 1, 2010>

(3) A person, who intends to obtain permission for exporting defense materials and national defense science and technology or intermediating the trade thereof pursuant to the main clause of Article 57 (2) of the Act, shall submit a written application to obtain permission for exportation or trade intermediation prescribed by Ministerial Decree of the National Defense, to the Minister of the Defense Acquisition Program Administration, along with the documents prescribed by Ministerial Decree of the National Defense. ＜Amended on Sep. 22, 2015; Jun. 20, 2017>

(4) The scope of defense materials and national defense science and technology permitted to be exported pursuant to Article 57 of the Act shall be prescribed by the Minister of the Defense Acquisition Program Administration.

(5) Where the guarantee of the performance of contracts and of quality is requested from the government of the purchasing country when exporting defense materials and national defense science and technology pursuant to paragraph (4), the Minister of the Defense Acquisition Program Administration may comply therewith. <Amended on Feb. 29, 2008; Mar. 23, 2013; Sep. 22, 2015>

(6) The Minister of the Defense Acquisition Program Administration may restrict exportation or order coordination of major defense materials and national defense science and technology referred to in Article 34 (1) of the Act, pursuant to Article 57 (4) of the Act, in each of the following cases: <Amended on Jul. 1, 2009; Oct. 1, 2010; Sep. 22, 2015; Mar. 31, 2020; Mar. 30, 2021>

1. Where it is necessary for international peace, maintenance of safety, and national security, or where there are urgent changes in international situations, such as war and terrorism;

2. Where diplomatic friction is likely to occur, as a result of exporting major defense materials and national defense science and technology;

3. Where it is necessary to comply with agreements concluded between governments regarding an agreement for importation of technology with a foreign country or export control of strategic materials;

4. Where it is apprehended that national interests might be damaged due to excessive competition between domestic enterprises that export major defense materials and national defense science and technology;

5. Where items, the quality of which has not been guaranteed, are exported, or where disqualified items are exported;

6. Where it is apprehended that assistance in subsequent supplies of war following the exportation of defense materials might be hindered;

7. Where a person breaches a contract for technology transfer referred to in Article 16 (4) of the Enforcement Decree of the Defense Science and Technology Innovation Promotion Act.

(7) "Cases prescribed by Presidential Decree ... to provide ... for the Republic of Korea troops sent overseas" in the proviso of Article 57 (2) of the Act means any of the following cases; provided, excluded herefrom are cases falling under subparagraph 4 or 5 where a consent or permission from a foreign government is required for export or cases falling under any subparagraph of paragraph (6). <Added on Sep. 22, 2015; Jun. 20, 2017; Mar. 31, 2020>

1. Where the major defense materials and national defense science and technology are supplied for the use of the national army dispatched overseas;

2. Where the major defense materials and national defense science and technology are supplied for the use of embassies and legations abroad;

3. Where the major defense materials and national defense science and technology are supplied for the emergency repair use for the security of fleet or military aircraft of Korea;

4. Where the goods identical to the defense materials exported with permission from the Minister of the Defense Acquisition Program Administration pursuant to the main clause of Article 57 (2) of the Act (detailed standards for recognition as identical goods shall be prescribed by the Minister of the Defense Acquisition Program Administration) are exported to the same end user (limited to cases where the end user is the government of the importing country) within two years from the date of permission;

5. Where defense materials, which have been imported for repair or replacement for reasons such as poor performance, defect, or damage after exporting with permission from the Minister of the Defense Acquisition Program Administration pursuant to the main clause of Article 57 (2) of the Act, are subsequently exported to the same end users;

(8) Deleted. <Jun. 20, 2017>

[Title Amended on Sep. 22, 2015]

Article 68-2(Registration of Munitions Sales Agency) #

(1) Any person who intends to register a munitions sales agency pursuant to Article 57-2 (1) of the Act shall submit an application for registration of a munitions sales agency (including an application for registration in an electronic form) prescribed by Ministerial Decree of the National Defense to the Minister of the Defense Acquisition Program Administration along with the following documents (including electronic documents): <Amended on Dec. 3, 2019>

1. Resumes of its representative and executive officers;

2. Current status of employment, such as the total number of employees and the number of employees related to defense acquisition programs;

3. A pledge of integrity under Article 6 (1) of the Act;

4. Deleted. <Dec. 3, 2019>

(2) Upon receipt of an application under paragraph (1), the Minister of the Defense Acquisition Program Administration shall verify the following documents through administrative data matching under Article 36 (1) of the Electronic Government Act; provided, where the applicant does not consent to verification, the Minister shall require the applicant to submit the relevant documents: <Amended on Apr. 30, 2024>

1. In cases of a corporation, a corporation registration certificate;

2. Business registration certificate (referring to business registration certificate excluding resident registration numbers).

(3) Where the Minister of the Defense Acquisition Program Administration receives an application for registration of munitions sales agency pursuant to paragraph (1), he or she shall issue a registration certificate to an applicant within 30 days from the date he or she receives the application after checking whether matters in the application fall under any subparagraph of Article 57-2 (1) of the Act, and the relevant facts.

(4) Where it is necessary to verify the relevant facts under paragraph (3), the Minister of the Defense Acquisition Program Administration may extend the period required for issuance of a registration certificate within 15 days, and notify an applicant of reasons for the extension thereof and the extended period.

[This Article Added on Nov. 29, 2016]

Article 68-3(Registration of Alterations of Munitions Sales Agency) #

(1) "Important matters prescribed by Presidential Decree" in Article 57-2 (2) of the Act means the following:

1. Representative and executive officers;

2. Company (corporation) name;

3. Location of a place of business and contact details.

(2) Where a person intends to register any alterations of munitions sales agency pursuant to Article 57-2 (2) of the Act, he or she shall submit an application for registration of alterations of munitions sales agency (including an application for registration of alterations in an electronic form) prescribed by Ministerial Decree of the National Defense within 30 days from the date such alterations are made to the Minister of the Defense Acquisition Program Administration along with the following:

1. Documents evidencing the relevant amendment;

2. A certificate of registration (only applicable where a matter included in the certificate of registration is modified).

(3) The provisions of Article 68-2 (2) through (4) shall apply mutatis mutandis to procedures for examining documents relating to registration of alterations and issuing a registration certificate.

(4) Where a munitions sale agent intends to continuously conduct munitions sales agency even after the effective period of registration under Article 57-2 (4) of the Act, he or she may file an application for renewal of registration with the Minister of the Defense Acquisition Program Administration from three months before the expiration date of the effective period to one month before the expiration date thereof. In such cases, Article 68-2 shall apply mutatis mutandis to procedures for applying for renewal of registration and the issuance of a registration certificate.

(5) The Minister of the Defense Acquisition Program Administration shall pre-notify the relevant munitions sales agent of procedures for renewal of registration and the fact that the effective period will expire unless he or she applies for renewal within the period by text messaging, email, fax, telephone, etc. no later than three months prior to the expiration date of the effective period of registration.

[This Article Added on Nov. 29, 2016]

Article 68-5(Reporting of Commission) #

(1) "Project of at least the size prescribed by Presidential Decree" in Article 57-4 (1) of the Act means a project whose budget for a contract which the Minister of the Defense Acquisition Program Administration intends to enter into is at least two million US dollars.

(2) Where the Minister of the Defense Acquisition Program Administration invites competitive tenders for a project (hereinafter referred to as "project subject to reporting of commission") in which case he or she should report remuneration, such as commission, (hereinafter referred to as "commission") under Article 57-4 (1) of the Act, he or she shall specify that the project is subject to reporting of commission in an invitation to tender, and where he or she enters into a private contract, he or she shall notify the other party to a contract or a munitions sales agent who intermediates or represents the relevant contract of the fact that the project is subject to reporting of commission before he or she enters into the contract.

(3) Any person who intends to report commission pursuant to Article 57-4 (1) of the Act shall submit a report mentioning a party to the contract concerning commission, the commission, etc. to the Minister of the Defense Acquisition Program Administration by the deadline for submitting a tender (in cases of a contract concluded through negotiations prescribed in Article 43 of the Enforcement Decree of the Act on Contracts to Which the State Is a Party, referring to a proposal) in cases of competitive tenders, and by the date he or she enters into the contract in cases of a private contract; provided, where he or she enters into a contract concerning commission after the deadline for submitting a tender or proposal or the date he or she enters into a private contract, he or she shall submit the report to the Minister of the Defense Acquisition Program Administration within 30 days after he or she enters into a contract for the relevant commission.

(4) Any person who intends to alter matters reported pursuant to Article 57-4 (2) of the Act shall submit a report on alterations to the Minister of the Defense Acquisition Program Administration within 30 days after he or she alters such matters.

(5) Where the Commissioner of the National Tax Service conducts a tax investigation under the Framework Act on National Taxes (including a tax offense investigation under the Procedure for the Punishment of Tax Offenses Act) in regard to taxation data related to commission reports submitted by a munitions sales agent pursuant to Article 3 and the Appendix of the Enforcement Decree of the Act on the Submission and Management of Taxation Data, if any investigation results are found to be different from the taxation data, the Minister of the Defense Acquisition Program Administration shall be notified thereof. <Added on Dec. 3, 2019>

(6) Where the Commissioner of the Korea Customs Service conducts an investigation under Article 110 (2) 2 or Article 290 of the Customs Act on taxation data related to commission reports of a munitions sales agency pursuant to Article 263-2 (1) and Appendix 3 of the Enforcement Decree of the Customs Act, if any investigation results differ from the taxation data, he or she shall notify the Commissioner of the Defense Acquisition Program Administration thereof. <Added on Dec. 3, 2019>

[This Article Added on Jun. 20, 2017]

Article 70(Restrictions on Qualifications for Participation in Bidding) #

(1) Where a person falling under Article 6 (1) 4 of the Act falls under any subparagraph of Article 59 (1) of the Act, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall restrict the qualification of a person falling under any subparagraph of Article 6 (1) 4 of the Act to participate in a tendering procedure for at least one month but not more than five years. If deemed necessary, the Minister of National Defense or the Minister of the Defense Acquisition Program Administration may undergo deliberation by the Deliberative Committee on Defense Acquisition Program Acquisition Program Administration, taking into consideration the type of restricted acts, whether such restricted acts are intentionally or negligently committed, the degree of damage to the State, etc.

(2) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration shall also prohibit the representative or executive officer of an enterprise or research institute subject to restrictions on qualification for participation in tendering pursuant to paragraph (1) from participating in tendering; provided, this shall not apply where the representative or executive officer of another enterprise or research institute has several representatives or executive officers and the representative or executive officer of the enterprise or research institute subject to restrictions on qualification for participation in tendering pursuant to paragraph (1) fails to participate in tendering. <Amended on Jul. 16, 2024>

(3) Article 76 (11) through (14) of the Enforcement Decree of the Act on Contracts to Which the State Is a Party shall apply mutatis mutandis to the disclosure, etc. of restrictions on qualification for participation in tendering under Article 59 (5) of the Act. <Amended on Sep. 20, 2024>

(4) In cases falling under any subparagraph of Article 59 (1) of the Act, the Enforcement Decree of the Act on Contracts to Which the State Is a Party shall apply to matters not prescribed in this Decree concerning restrictions on qualifications for participation in tendering procedures.

(5) Except as provided in paragraphs (1) through (4), matters necessary for detailed criteria for restrictions on qualification for participation in tendering shall be prescribed by Ministerial Decree of the National Defense.

[This Article Wholly Amended on Apr. 30, 2024]

Article 71(Entrustment of Duties) #

(1) The Minister of the Defense Acquisition Program Administration shall entrust the following duties to the President of the Agency for Defense Development pursuant to Article 61 (2) of the Act: <Amended on Jul. 1, 2009; Dec. 17, 2013; Mar. 31, 2020; Mar. 30, 2021; Feb. 11, 2022>

1. Contracting and managing projects determined by the Minister of the Defense Acquisition Program Administration to improve the performance of weapons systems among the duties of improving performance pursuant to Article 22 (1) of the Act;

1-2. Deleted; <Mar. 30, 2021>

2. Deleted; <Mar. 30, 2021>

3. Safety inspections on manufacturing facilities and storage facilities of military firearms, etc. prescribed in the latter part of Article 66 (3);

4. Safety inspections of persons who have obtained permission to use manufacturing facilities of military firearms, etc. and persons who have obtained permission for the storage of military firearms, etc. pursuant to Article 66-2 (4).

(2) The Minister of the Defense Acquisition Program Administration shall entrust the following duties to the President of the Defense Agency for Technology and Quality pursuant to Article 61 (2) of the Act: <Amended on Jul. 1, 2009; Nov. 4, 2014; Mar. 31, 2016; Jul. 19, 2016; Jun. 20, 2017; Sep. 22, 2017; May 28, 2018; Mar. 31, 2020; Mar. 30, 2021; May 11, 2021; Feb. 11, 2022; Aug. 16, 2023>

1. Contracting and managing projects determined by the Minister of the Defense Acquisition Program Administration to improve the quality of weapons systems among the duties of improving performance under Article 22 (1) of the Act;

2. Following duties among the duties regarding configuration management prescribed in Article 26 (3) of the Act and Article 32 (1) of this Decree:

(a) Technical assistance related to configuration management, including research and development, and an inspection on completed parts in the mass production and operation and maintenance phase of ship weapons systems, such as battleships;

(b) Verifying, coordinating, and controlling the details of configuration regarding design errors, corrections, etc. which do not have an influence on the required operational capability of munitions, the schedule of and expenses incurred in enhancing military strength, etc. in the mass production and operation and maintenance phase among duties regarding the verification, coordination, and control of the details of configuration prescribed in Article 32 (1) 3;

3. Following duties among the duties regarding quality assurance prescribed in Article 28 of the Act:

(a) Quality assurance, including research and development, and an inspection on completed parts in the mass production and operation and maintenance phase of ship weapons systems, such as battleship;

(b) Quality assurance, such as the issuance of inspection records on weapons systems in which expeditious requirements are determined pursuant to Article 15-2 (1) of the Act or weapon systems which have undergone a pilot project pursuant to Article 17-2 (1) of the Act;

(c) Quality assurance, such as the issuance of inspection records on weapon systems in the phase of mass production and maintenance and force support systems designated by the Minister of the Defense Acquisition Program Administration;

(d) Technical support for quality assurance of research and development projects for weapons systems (excluding ship weapons systems prescribed in subparagraph 4 of Article 2);

(e) Technology support for quality assurance of offshore purchase projects;

(f) Conclusion of international quality assurance agreements with foreign governments to promote international cooperation on quality assurance;

(g) Management for preventing counterfeit parts in the process of quality assurance, and investigation, analysis, and information management on counterfeit parts;

4. Receipt, examination, renewal and examination of the post management of an application for certification of the quality management system prescribed in Article 29-2 of the Act;

5. Deleted; <Feb. 2, 2021>

6. Supervising the transportation and disuse of military firearms, etc. prescribed in Article 53 (1) of the Act;

7. Deleted; <Feb. 2, 2021>

8. Verifying types and quantities and inspecting standards and quality of the raw materials to be reserved under Article 67.

[Title Amended on Feb. 11, 2022]

Article 71-2(Management of Sensitive Information and Personally Identifiable Information) #

(1) The Minister of National Defense or the Minister of the Defense Acquisition Program Administration may manage information constituting criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act (limited to affairs under subparagraph 2) or data containing resident registration numbers under subparagraph 1 of Article 19 of the same Decree or alien registration numbers under subparagraph 4 of the same Article, if it is inevitable to perform the following affairs: <Added on Jul. 16, 2024>

1. Request for inquiry into criminal records under Article 6-2 of the Act;

2. Affairs concerning restrictions on qualification for participation in tendering procedures under Article 59 of the Act.

(2) The Minister of the Defense Acquisition Program Administration may manage information corresponding to criminal history records under subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act or data containing resident registration numbers under subparagraph 1 of Article 19 of the same Decree or alien registration numbers under subparagraph 4 of the same Article, if it is inevitable to perform the following affairs: <Amended on Mar. 31, 2020; Jul. 16, 2024>

1. Affairs concerning the registration of munitions sales agencies referred to in Article 57-2 of the Act;

2. Cancellation of the registration of munitions sales agencies under Article 57-3 of the Act.

(3) The Guarantee institution designated pursuant to Article 43 (1) of the Act may manage data including resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act or alien registration numbers under subparagraph 4 of the same Article, if it is inevitable to perform guarantee business under the subparagraphs of paragraph (2) of that Article. <Added on Mar. 31, 2020; Jul. 16, 2024>

[This Article Added on Dec. 3, 2019]

ENFORCEMENT DECREE OF THE DEFENSE ACQUISITION PROGRAM ACT

Article 1(Purpose) #

Article 2(Classification of Weapons Systems) #

Article 2-2(Types of Force Support Systems) #

Article 2-3(Scope of Defense Acquisition Program Contracts) #

Article 2-4(Definition of Long-Term Contract) #

Article 3(Implementation of Real-Name Policy System) #

Article 4(Submission and Details of Pledge of Integrity) #

Article 5(Formation and Term of Office of Ombudsmen) #

Article 6(Representative Ombudsman) #

Article 7(Procedures for Handling Investigation of Civil Petitions) #

Article 8(Inquiry into Criminal Records) #

Article 9 #

Article 10 #

Article 11(Scope of Key Positions and Standards for Qualification) #

Article 12(Research of Legal Issues regarding Defense Acquisition Programs) #

Article 12-2(Operation of In-house Supervisory Organization) #

Article 13(Composition of Commission) #

Article 14(Operation of Commission) #

Article 14-2(Exclusion, Challenge, and Abstention of Members) #

Article 14-3(Dismissal of Members) #

Article 15(Subcommittees) #

Article 15-2(Working Committees) #

Article 16(Technical Experts) #

Article 17(Requests for Submission of Data) #

Article 18(Allowances and Travel Expenses) #

Article 19(Request for Manpower Support) #

Article 20(Formulation of Medium-Term National Defense Plans) #

Article 20-2(Requirement Reviews) #

Article 20-3(Requirement Review Committee) #

Article 21(Budget Formulation) #

Article 21-2(Project Feasibility Studies) #

Article 22(Decision-Making Processes regarding Requirements) #

Article 22-2(Procedures for Decision on Expeditious Requirements) #

Article 22-3(Procedures for Conducting Prior Conceptual Studies) #

Article 23(Revision to Minor Matters of Requirements) #

Article 24(Methods of Implementing Defense Force Improvement Projects) #

Article 24-2(Procedures for Pilot Projects) #

Article 24-3(Methods of Purchase) #

Article 24-4(International Negotiation Support Officer and Site Supervisors of Overseas Projects) #

Article 25(Qualifications for Participants in Negotiation) #

Article 25-2(Procedures for Purchasing Munitions Manufactured in Korea) #

Article 25-3(Procedures for Purchasing Munitions Manufactured in Foreign Countries) #

Article 26(Standards for Offset Trade) #

Article 27(Formulation of Test and Evaluation Plan) #

Article 27-2(Formulation of Plans for Combined Implementation of Developmental Test and Evaluation and Operational Test and Evaluation) #

Article 28(Securing of Support Elements of Force Integration) #

Article 29(Methods of Procurement) #

Article 30(Designation and Cancellation of Standard Items) #

Article 31(Enactment and Amendment of National Defense Standards) #

Article 32(Configuration Management) #

Article 33(Munitions Inventory Information) #

Article 34 #

Article 35 #

Article 36 #

Article 36-2 #

Article 36-3 #

Article 37(Operation and Supervision of Defense Agency for Technology and Quality) #

Article 37-2(Transfer and Lease of State-Owned Property) #

Article 38 #

Article 39(Designation of Defense Materials) #

Article 40(Scope of Designation of Defense Materials) #

Article 41(Designation of Defense Contractors) #

Article 42(Facility Standards) #

Article 43(Modification of Standards for Facilities) #

Article 44(Requirements for Security and Inspection) #

Article 45(Sale and Acquisition of Defense Contractors) #

Article 46(Commissioning of Specialized Research Institutes) #

Article 47 #

Article 48 #

Article 49 #

Article 50(Protection and Fostering of Defense Contractors) #

Article 51 #

Article 52 #

Article 53 #

Article 54 #

Article 55(Assistance to Defense Industry) #

Article 56 #

Article 57(Designation of Guarantee Organization) #

Article 58 #