Article 11(Establishment of and support for foundations) #
(1) The local government having jurisdiction over the address of a high-tech medical complex, research and development institutes of medical services, and other contributing institutions may jointly make contributions to establish a medical innovation foundation (hereinafter referred to as "foundation").
(2) Each foundation under paragraph (1) shall be established with permission of the competent authorities pursuant to Article 32 of the Civil Act.
(3) The articles of association of a foundation shall include the following: <Added on Dec. 11, 2018>
1. Objectives;
2. Name;
3. Location of the main office;
4. Matters regarding assets;
5. Matters regarding executive officers and employees;
6. Operation of the board of directors;
7. Scope, details, and execution of its business;
8. Accounting;
9. Methods of making public announcement;
10. Amendments to the articles of association;
11. Other important matters regarding the operation of the foundation.
(4) Where a foundation intends to amend any matter stated in its articles of association, it shall obtain authorization therefor from the Minister of Health and Welfare. <Added on Dec. 11, 2018>
(5) A foundation under paragraph (1) shall perform the following duties: <Amended on Dec. 11, 2018>
1. Improvement in and support for research performance of high-tech medical complexes;
2. Support for development and commercialization of products by resident research and development institutes of medical services;
3. Support for attracting, fostering, and utilizing human resources specializing in research and development of medical services;
4. Cooperation with domestic and foreign research institutes, academia, and the industry;
5. Securing base technologies through joint research with research and development institutes of medical services, etc.;
6. Business designated or entrusted by the State and local governments;
7. Other business prescribed by Presidential Decree to support duties of high-tech medical complexes.
(6) A foundation may establish the following centers for supporting research and development of medical services to perform the duties referred to in paragraph (5): <Amended on Dec. 11, 2018>
1. A center for supporting research and development of medical services regarding medicine: A center to support duties related to research and development of research and development institutes of medical services established to research and develop medicine and to jointly research and develop medicine with research and development institutes of medical services;
2. A center for supporting research and development of medical services regarding medical appliances: A center to support duties related to research and development of research and development institutes of medical services established to research and develop medical appliances or to jointly research and develop medical appliances with research and development institutes of medical services;
3. A center for raising and managing laboratory animals;
4. A center for producing medicine or medical appliances related to research and development of medical services or for providing facilities to produce such medicine or medical appliances;
5. Other centers prescribed by Presidential Decree, such as a center for managing resources related to research and development of medical services.
(7) The State and each local government may subsidize expenses incurred in establishment, operation, etc. of a foundation, within the budget. <Amended on Dec. 11, 2018>
(8) Except as provided in this Act and the Act on the Management of Public Institutions, the provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis to foundations. <Amended on Dec. 11, 2018>
(9) The State and each local government may provide support for the organization or establishment of any of the following investment associations or companies, the main purpose of which is investment in resident research and development institutes of medical services: <Amended on Dec. 11, 2018; Feb. 11, 2020; Apr. 20, 2021>
1. A venture investment association under subparagraph 11 of Article 2 of the Venture Investment Promotion Act;
2. A new technology venture investment association under subparagraph 14-5 of Article 2 of the Specialized Credit Finance Business Act;
3. An institutional private equity fund under Article 9 (19) 1 of the Financial Investment Services and Capital Markets Act.
[This Article Wholly Amended on Oct. 24, 2017]