Article 11-3(Application for regulatory exceptions for demonstration) #
(1) A person who intends to apply for a regulatory exception for demonstration of a new product or service of industrial convergence pursuant to Article 10-3(1) of the Act, shall submit an application for a regulatory exception for demonstration, along with the following documents, to the Minister of Trade, Industry and Energy: <Amended on Oct. 1, 2025>
1. A business implementation plan specified in Article 10-3(6)1 of the Act;
2. Materials explaining that the relevant new product or service is a new product or service of industrial convergence;
3. Materials explaining that the relevant new product or service of industrial convergence falls under any subparagraph of Article 10-3(1) of the Act;
4. Materials explaining that the relevant new product or service of industrial convergence is innovative and enhances user convenience;
5. Materials on the future growth potential of the relevant market;
6. Materials on possible damage that may arise from temporary permission for the relevant new product or service of industrial convergence, as well as materials on measures to compensate for damage;
7. Materials on harm to the lives, health, and safety of the people; harm to the environment; and hindrances to the balanced regional development; as well as on the safe protection and management of personal information.
(2) A business implementation plan specified in Article 10-3(6)1 of the Act shall include the following: <Amended on Oct. 1, 2025>
1. Objectives and outline of demonstration utilizing the relevant new product or service of industrial convergence;
2. Statutes or regulations relating to the relevant new product or service of industrial convergence, as well as matters requiring a regulatory exception to give demonstrations;
3. Method of testing or verifying the relevant new product or service of industrial convergence;
4. Area, period, and scale of a regulatory exception for demonstration of the relevant new product or service of industrial convergence;
5. Other matters determined and publicly notified by the Minister of Trade, Industry and Energy.
(3) Where it is deemed necessary to complement the contents of an application filed under paragraph (1), the Minister of Trade, Industry and Energy may request to complement them within a specified period. <Added on May 12, 2020; Oct. 1, 2025>
(4) Where an application referred to in paragraph (1) (including cases where it is complemented under paragraph (3)) falls under any of the following cases, the Minister of Trade, Industry and Energy may return the relevant application: <Added on May 12, 2020; Oct. 1, 2025>
1. Where it is obvious that the details of the application do not fall under any subparagraph of Article 10-3(1) of the Act;
2. Where the applicant fails to submit any of the documents prescribed in the subparagraphs of paragraph (1) or to comply with a request for complement made pursuant to paragraph (3);
3. Where it is obvious that the details of the application have been prepared by fraud or improper means.
(5) An applicant for a regulatory exception for demonstration referred to in Article 10-3(1) of the Act (hereafter in this Article referred to as "applicant") shall submit, to the Minister of Trade, Industry and Energy, materials verifying that the applicant has purchased liability insurance under the main clause of Article 10-3(2) of the Act before the commencement of the business involving the relevant new product or service of industrial convergence. In such cases, the period of liability insurance the applicant has purchased shall exceed the effective period of the regulatory exception for demonstration. <Amended on May 12, 2020; Oct. 1, 2025>
(6) Article 20(2) and (3) shall apply mutatis mutandis to the amount of liability insurance an applicant is required to purchase under the main clause of Article 10-3(2) of the Act, details necessary for purchasing, operating, etc. the insurance, and other relevant matters. <Amended on May 12, 2020>
(7) Where an applicant constitutes a small or medium enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises, or a middle-standing enterprise defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises, the Minister of Trade, Industry and Energy may partially subsidize expenses incurred in purchasing a liability insurance policy under the main clause of Article 10-3(2) of the Act. <Added on Sep. 14, 2021; Oct. 1, 2025>
(8) Where a business entity granted a regulatory exception for demonstration pursuant to Article 10-3(8) of the Act (hereafter in this Article and Article 11-4 referred to as "business entity") is unable to purchase liability insurance specified in the main clause of Article 10-3(2) of the Act, he or she shall submit a statement of the reason for the inability to purchase liability insurance in attached Form 4, accompanied by the following documents, to the Minister of Trade, Industry and Energy 30 days before the commencement of the business involving the relevant new product or service of industrial convergence under the proviso of Article 10-3(2) of the Act; and shall formulate compensatory measures for damage through consultation with the Minister of Trade, Industry and Energy before the commencement of the business involving such new product or service of industrial convergence: <Amended on May 12, 2020; Sep. 14, 2021; Oct. 1, 2025>
1. The reason for the inability to purchase liability insurance, as well as materials substantiating such reason;
2. A damage compensation plan including compensatory measures for damage, such as the methods, standards, and procedures for compensating for any damage that may arise from the regulatory exception for demonstration of such new product or service of industrial convergence.
(9) The amount of compensation specified in the compensatory measures for damage formulated under paragraph (8) shall be equivalent to the amount specified in Article 20(2). <Amended on May 12, 2020; Sep. 14, 2021>
(10) Where any personal harm or economic loss occurs while a business entity is providing a new product or service of industrial convergence, a victim (referring to a person who has succeed to the right to claim damages for the relevant harm or loss if the victim has died; hereafter in this Article referred to as "claimant") may seek damages from the business entity, by means of a written claim including the following: <Amended on May 12, 2020; Sep. 14, 2021>
1. Name and address of the claimant;
2. Relationship between the claimant and the victim (limited to where the victim has died);
3. Details of the harm or loss incurred;
4. Claimed amount and the grounds for computing the amount.
(11) Upon receiving a claim for damages under paragraph (10), a business entity shall without delay inform the claimant for compensation of the purchase of liability insurance or of the details of a damage compensation plan specified in paragraph (8)2; and shall notify the Minister of Trade, Industry and Energy of the receipt of the claim for damages. <Amended on May 12, 2020; Sep. 14, 2021; Oct. 1, 2025>
(12) If a business entity with no liability insurance coverage receives a claim for damages pursuant to paragraph (10), it shall compensate the claimant for damage in accordance with the damage compensation plan referred to in paragraph (8)2. <Amended on May 12, 2020; Sep. 14, 2021>
(13) Where a business entity compensates for damage pursuant to paragraph (12), it shall pay compensation in cash; provided, where the damage is minor, the business entity may compensate for damage by a method, other than paying in cash, with consent from the victim. <Amended on May 12, 2020; Sep. 14, 2021>
(14) The results of damage compensation shall be notified to the Minister of Trade, Industry and Energy. The same shall apply to cases where damages are not compensated. <Amended on May 12, 2020; Sep. 14, 2021; Oct. 1, 2025>
(15) When deliberating on the area, period, and scale of a regulatory exception for demonstration or as to whether to grant permission for the regulatory exception pursuant to Article 10-3(6) of the Act, the Deliberative Committee on Regulatory Exceptions shall comply with the internal criteria for examination it has established, comprehensively considering the following: <Amended on May 12, 2020; Sep. 14, 2021>
1. Substantiality and feasibility of a business implementation plan specified in Article 10-3(6)1 of the Act;
2. The applicant's technical and financial capabilities;
3. Innovativeness of the relevant new product or service of industrial convergence, as well as enhancement of convenience of users of such new product or service (hereinafter referred to as "users");
4. Growth potential of a market for the relevant new product or service of industrial convergence;
5. Appropriateness of measures to compensate for damage that may arise in the course of demonstrating the relevant new product or service of industrial convergence, as well as measures to protect victims;
6. Influences of the relevant new product or service of industrial convergence on the lives, health, and safety of the people, environment, balanced regional development, etc.;
7. Possibility of infringement on personal information by the relevant new product or service of industrial convergence;
8. Any other matters the Chairperson deems necessary in light of the characteristics of the relevant new product or service of industrial convergence.
(16) Where the Minister of Trade, Industry and Energy grants a regulatory exception for demonstration pursuant to Article 10-3(8) of the Act, he or she shall issue a certificate of a regulatory exception for demonstration in attached Form 5; and shall publicly announce such fact in the Official Gazette or on the Ministry website. <Amended on May 12, 2020; Sep. 14, 2021; Oct. 1, 2025>
(17) Deleted. <Sep. 14, 2021>
(18) The head of a related administrative agency may provide assistance to business entities under Article 10-3(13) of the Act, as follows: <Amended on May 12, 2020>
1. Grant of subsidies or contributions;
2. Establishing infrastructure necessary to efficiently conduct tests, verification, etc. for new products or services of industrial convergence;
3. Protecting intellectual property rights to new products or services of industrial convergence;
4. Any other matters deemed necessary to accomplish the purpose of regulatory exceptions for demonstration.
(19) Article 23(2) and (3) shall apply mutatis mutandis to the management and use of the contributions specified in paragraph (18)1. <Amended on May 12, 2020>
[This Article Added on Jan. 15, 2019]