SPECIAL ACT ON THE DESIGNATION AND PROMOTION OF ENERGY INDUSTRY CONVERGENCE COMPLEXES

Article 1(Purpose) #

The purpose of this Act is to contribute to reinforcing national competitiveness and to developing regional economy by facilitating the agglomeration and convergence of energy industries and energy-related industries by means of the designation and fostering of energy industry convergence complexes and by creating advanced technologies through supporting research and development, etc. related thereto.

Article 2(Definitions) #

The terms used in this Act shall be defined as follows:

1. The term "energy industry convergence complex" means a zone designated pursuant to Article 8(1) as an area to facilitate the agglomeration and convergence of energy industries and energy-related industries;

2. The term "energy industry" means an industry prescribed by Presidential Decree, which is related to the production, supply and use of energy, and new and renewable energy which are prescribed in Article 2 of the Energy Act;

3. The term "energy-related industry" means an industry prescribed by Presidential Decree, which has a significant impact on connecting energy industries to front and rear industries or has a high potential for advancement through convergence;

4. The term "priority energy industry" means an industry designated pursuant to Article 13(1), which is an energy industry or energy-related industry to which the energy industry convergence complex places priority for its fosterage;

5. The term "energy-specialized enterprise" means an enterprise designated pursuant to Article 14 in relation to priority energy industries.

Article 3(Responsibilities and obligations of state and local governments) #

The State and local governments shall formulate and implement policy measures necessary for fostering energy industries and energy-related industries (hereinafter referred to as "energy industries, etc.") and creating and supporting energy industry convergence complexes and shall take legislative and fiscal measures necessary for implementing the policy measures. <Amended on Feb. 6, 2024>

Article 4(Relations with other Acts) #

Except as otherwise provided for in other Acts, this Act shall apply preferentially to energy industry convergence complexes.

Article 5(Formulation and revision of master plans for energy industry convergence complexes) #

(1) The Minister of Climate, Energy and Environment shall formulate a master plan for energy industry convergence complexes (hereinafter referred to as "master plan") for the systematic development of energy industry convergence complexes every five years. <Amended on Oct. 1, 2025>

(2) Where the Minister of Climate, Energy and Environment intends to formulate a master plan, he or she shall gather the opinions of the Special Metropolitan City Mayors, Metropolitan City Mayors, Mayors of the Special Self-Governing Cities, Do Governors or Governors of the Special Self-Governing Provinces (hereinafter referred to as City Mayor/Do Governor") and consult with the heads of the relevant central administrative agencies, and then undergo deliberation by the Energy Committee prescribed in Article 9 of the Energy Act (hereinafter referred to as the "Energy Committee"). <Amended on Oct. 1, 2025>

(3) If necessary due to changes in domestic and overseas trends related to energy industries, etc., the Minister of Climate, Energy and Environment may revise master plans. <Amended on Oct. 1, 2025>

(4) Paragraph (2) shall apply mutatis mutandis to the revision of master plans; provided, the same shall not apply to the revision of minor matters prescribed by Presidential Decree.

(5) Where the Minister of Climate, Energy and Environment formulates or revises a master plan, he or she shall publish the details thereof in the Official Gazette and notify the relevant City Mayors/Do Governors thereof without delay. <Amended on Oct. 1, 2025>

Article 5-2(Dedicated institution) #

(1) The Minister of Climate, Energy and Environment may designate an institution dedicated to the efficient conduct of projects necessary for revitalizing energy industry convergence complexes (hereinafter referred to as "dedicated institution"). <Amended on Oct. 1, 2025>

(2) A dedicated institution may perform the following:

1. Conducting fact-finding surveys under Article 7;

2. Providing support for business affairs related to the formulation and modification of plans to create energy industry convergence complexes, the designation of energy industry convergence complexes, and the cancellation thereof under Articles 8 through 10 and 11;

3. Providing support for business affairs related to the designation of priority energy industries under Article 13;

4. Providing support for business affairs related to the designation of energy-specialized enterprises under Article 14;

5. Business affairs related to support for research and development, the designation of specialized research institutes and professional manpower development institutions, and the implementation of and support for projects, such as international exchange, under Articles 16 through 19;

6. Projects designated or entrusted by the State or local governments;

7. Other projects prescribed by Presidential Decree to support energy industry convergence complexes.

(3) The State and local governments may subsidize expenses incurred in the operation, etc. of a dedicated institution.

(4) Other matters necessary for the designation, operation, etc. of a dedicated institution shall be prescribed by Presidential Decree.

[This Article Added on Feb. 6, 2024]

Article 6(Matters to be included in master plans) #

Every master plan shall include the following matters:

1. Matters concerning the basic goals of designating and fostering energy industry convergence complexes and directions of mid- and long-term development thereof;

2. Matters concerning the agglomeration, convergence, etc. of energy industries, etc. within energy industry convergence complexes;

3. Matters concerning strategies for the specialized development of each energy industry convergence complex;

4. Matters concerning zones eligible for energy industry convergence complexes and the creation thereof;

5. Matters concerning the designation of and support for energy industry convergence complexes;

6. Other matters prescribed by Presidential Decree, which are necessary for developing energy industry convergence complexes.

Article 7(Fact-finding survey) #

(1) If necessary to formulate or revise a master plan, the Minister of Climate, Energy and Environment may conduct a fact-finding survey on the current status, etc. of the agglomeration and convergence of energy industries, etc. <Amended on Oct. 1, 2025>

(2) The scope and methods of fact-finding surveys prescribed in paragraph (1) and other matters necessary therefor shall be prescribed by Presidential Decree.

Article 8(Formulation of plans for creating energy industry convergence complexes) #

(1) If it is necessary to create an energy industry convergence complex, the Minister of Climate, Energy and Environment may designate an energy industry convergence complex in an area satisfying the requirements in Article 9 by formulating a plan for creating an energy industry convergence complex which includes the matters in the subparagraphs of Article 10(1) (hereinafter referred to as "creation plan") after consulting with the heads of the relevant central administrative agencies and with the competent City Mayors/Do Governors and undergoing deliberation by the Energy Committee. <Amended on Oct. 1, 2025>

(2) Every City Mayor/Do Governor may request the Minister of Climate, Energy and Environment to designate an energy industry convergence complex prescribed in paragraph (1) within the district under his or her jurisdiction; provided, if the target district is spanning at least two districts under the jurisdiction of Special Metropolitan Cities, Metropolitan Cities, Special Self-Governing Cities, Dos or Special Self-Governing Provinces, the designation shall be requested jointly by the relevant City Mayors/Do Governors. <Amended on Oct. 1, 2025>

(3) Where a City Mayor/Do Governor intends to request for the designation of an energy industry convergence complex pursuant to paragraph (2), he or she shall prepare a plan to create such complex in the district under his or her jurisdiction and submit it to the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(4) Where the Minister of Climate, Energy and Environment receives a request for the designation of an energy industry convergence complex from a City Mayor/Do Governor pursuant to paragraph (2), he or she shall designate the energy industry convergence complex after determining the creation plan by undergoing consultation with the heads of the relevant central administrative agencies and deliberation by the Energy Committee. In such cases, he or she shall listen to the opinions of the competent City Mayors/Do Governors. <Amended on Oct. 1, 2025>

(5) Where the Minister of Climate, Energy and Environment designates an energy industry convergence complex pursuant to paragraph (1) or (4), he or she shall publish the details thereof in the Official Gazette as prescribed by Presidential Decree, and notify the competent City Mayors/Do Governors thereof without delay. <Amended on Oct. 1, 2025>

(6) Any City Mayor/Do Governor who receives a notice pursuant to paragraph (5) shall allow the public reading of the details thereof to the residents for at least 14 days.

Article 9(Requirements for designating energy industry convergence complexes) #

The designator of energy industry convergence complexes shall be granted to areas satisfying the following requirements:

1. Complying with the master plan;

2. Having effects on the agglomeration and convergence of energy industries, etc.;

3. Possible to secure infrastructures necessary for energy industry convergence complexes;

4. Contributable to the development of regional economy by creating jobs, etc.;

5. Complying with other requirements prescribed by Presidential Decree, such as security of professional manpower, and possibility of sustainable development.

Article 10(Matters to be included in and revision of energy industry convergence complex creation plans) #

(1) Every energy industry convergence complex creation plan shall include the following matters:

1. Name, location and size of the energy industry convergence complex;

2. Compliance with the master plan;

3. Necessity of creating the energy industry convergence complex and the effects thereof;

4. Plan for fostering priority energy industries;

5. Plan for designating and supporting energy-specialized enterprises;

6. Financing plan;

7. Other matters prescribed by Presidential Decree.

(2) If necessary to effectively create an energy industry convergence complex or requested by City Mayors/Do Governors, the Minister of Climate, Energy and Environment may revise formulated or determined creation plans by undergoing deliberation by the Energy Committee; provided, where he or she intends to revise minor matters prescribed by Presidential Decree, he or she may choose not to undergo deliberation by the Energy Committee. <Amended on Oct. 1, 2025>

(3) Where a City Mayor/Do Governor intends to request a revision prescribed in paragraph (2), he or she shall submit documents prescribed by Decree of the Ministry of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(4) Article 8 shall apply mutatis mutandis to procedures for revising creation plans prescribed in paragraph (2).

Article 10-2(Energy industry convergence complex steering committee) #

(1) An energy industry convergence complex steering committee (hereinafter referred to as the "steering committee") shall be established within an energy industry convergence complex to support the efficient management and operation of the energy industry convergence complex.

(2) The steering committee shall deliberate and resolve on the following:

1. Matters regarding a request for the modification of a plan for creating an energy industry convergence complex;

2. Matters regarding the fostering of priority energy industries in an energy industry convergence complex;

3. Matters regarding cooperation among industrial circles, academic circles, research institutes, administrative agencies, etc. in an energy industry convergence complex and industry-academia-research support;

4. Matters requiring government cooperation;

5. Other matters deemed necessary by the chairperson for the development of energy industry convergence complexes.

(3) The steering committee shall be comprised of not more than 15 members, including two chairpersons; provided, if two or more Mayors/Do Governors jointly establish a steering committee, it shall be comprised of not more than 20 members, including three chairpersons.

(4) Mayors/Do Governors shall serve as ex officio members of the steering committee, and persons with extensive knowledge and experience who can contribute to the development of energy industry convergence complexes shall be commissioned or appointed by the chairperson as its members.

(5) The steering committee shall be co-chaired by the Mayor/Do Governor serving ex officio and one person appointed by the Mayor/Do Governor from among its members.

(6) Other matters necessary for the composition, operation, etc. of the steering committee shall be prescribed by Presidential Decree.

[This Article Added on Feb. 6, 2024]

Article 11(Cancellation of designation of energy industry convergence complexes) #

(1) Where an energy industry convergence complex designated pursuant to Article 8 falls under any of the following cases, the Minister of Climate, Energy and Environment may cancel the entire or part of the designation of the energy industry convergence complex by undergoing deliberation by the Energy Committee. The same shall apply where a City Mayor/Do Governor requests the cancellation of designation: <Amended on Oct. 1, 2025>

1. Where it is impossible or expected to be impossible to achieve the purpose of designating an energy industry convergence complex;

2. Where there are causes prescribed by Presidential Decree, which are equivalent to subparagraph 1.

(2) Where a City Mayor/Do Governor intends to request the cancellation of designation prescribed in paragraph (1), he or she shall submit documents prescribed by Decree of the Ministry of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(3) Article 8 shall apply mutatis mutandis to procedures for cancelling the designation of energy industry convergence complexes prescribed in paragraph (1).

Article 12(Preferential support for infrastructure of energy industry convergence complexes) #

(1) The State and local governments may preferentially support the installation of infrastructures, etc. necessary for the systematic and sustainable development of energy industry convergence complexes. <Amended on Feb. 6, 2024>

(2) The State and local governments may give priority to enterprises and institutions relocating to an energy industry convergence complex when promoting various projects funded by the State and local governments in order to revitalize energy industry convergence complexes. <Added on Feb. 6, 2024>

(3) Matters necessary for eligibility for, and size, methods, etc. of support under paragraphs (1) and (2) shall be prescribed by Presidential Decree. <Amended on Feb. 6, 2024>

[Title Amended on Feb. 6, 2024]

Article 13(Designation of and support for priority energy industries) #

(1) The Minister of Climate, Energy and Environment may designate energy industries, etc. intended to be fostered in priority in energy industry convergence complexes as priority energy industries by undergoing deliberation by the Energy Committee. <Amended on Oct. 1, 2025>

(2) In order to invigorate the agglomeration and convergence of priority energy industries, the State and local governments may provide supports necessary for invigorating research and development, facilitating exchange between priority energy industries and commercialization, etc.

(3) The State and local governments may formulate supporting policies to facilitate the technology development of priority energy industries and induce the expansion of investment in research and development, and provide subsidies for costs necessary therefor.

(4) Matters necessary for eligibility, criteria and procedures for the designation of priority energy industries prescribed in paragraph (1) shall be prescribed by Presidential Decree.

Article 14(Designation of energy-specialized enterprises) #

The Minister of Climate, Energy and Environment may designate enterprises satisfying all the following requirements among enterprises moving to energy industry convergence complexes as energy-specialized enterprises; provided, no electricity generation business operators prescribed in subparagraph 4 of Article 2 of the Electric Utility Act shall be designated as energy-specialized enterprises: <Amended on Dec. 29, 2020; Oct. 1, 2025>

1. The sales amount of producing, supplying or using energy, and new and renewable energy prescribed in Article 2 of the Energy Act in the total sales amount falls into the criteria prescribed by Presidential Decree;

2. An enterprise not belonging to business groups subject to limitations on cross shareholding prescribed in Article 31(1) of the Monopoly Regulation and Fair Trade Act;

3. An enterprise satisfying requirements prescribed by Presidential Decree in terms of technical level, business capability, etc.

Article 14-2(Preferential purchase of products related to energy-specialized enterprises) #

The Minister of Climate, Energy and Environment or a Mayor/Do Governor may request any of the following to take necessary measures such as preferential purchase of products and services produced by energy-specialized enterprises: <Amended on Oct. 1, 2025>

1. A State agency or local government;

2. A public institution under Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institution");

3. A person who receives financial support, such as contributions or subsidies, from the State or a local government.

[This Article Added on Feb. 6, 2024]

Article 14-3(Preferential treatment of energy-specialized enterprises) #

Where the State, local governments, and public institutions intend to provide support for fostering priority energy industries, providing enterprise-supporting facilities, etc., they may give preferential treatment to energy-specialized enterprises.

[This Article Added on Feb. 6, 2024]

Article 15(Tax support) #

Every local government may, if necessary for energy-specialized enterprises, reduce or exempt from local taxes, as prescribed by the Restriction of Special Local Taxation Act and Municipal Ordinance.

Article 16(Support for research and development) #

For research and development on energy-related technology, services, etc., the State, local governments and public institutions may support energy-specialized enterprises.

Article 17(Designation of specialized research institutes) #

(1) For the promotion of research and development on energy-related technologies, services, etc. and business related thereto, the Minister of Climate, Energy and Environment may designate research institutions, research institutes or organizations which are related to energy industries, etc. as specialized research institutions. <Amended on Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment may provide specialized research institutions designated pursuant to paragraph (1) (hereinafter referred to as "specialized research institution") with subsidies for the whole or some of the costs incurred in research and development, management, etc. <Amended on Oct. 1, 2025>

(3) Where a specialized research institution no longer satisfies the requirements for designation prescribed in paragraph (4), the Minister of Climate, Energy and Environment may revoke the designation thereof. <Amended on Oct. 1, 2025>

(4) Where the Minister of Climate, Energy and Environment revokes designation under paragraph (3), he or she shall hold hearings under the Administrative Procedures Act. <Added on Jun. 10, 2022; Oct. 1, 2025>

(5) Other matters necessary for requirements and procedures for and revocation of designation of specialized research institutions, scope of support, etc. shall be prescribed by Presidential Decree. <Amended on Jun. 10, 2022>

Article 18(Development of professional manpower) #

(1) The State and local governments shall formulate and promote policies for developing and managing manpower having professional techniques, knowledge, etc. on energy industries, etc. (hereinafter referred to as "professional manpower").

(2) Policies prescribed in paragraph (1) shall include the following matters:

1. Matters concerning the development, education, and training of professional manpower;

2. Matters concerning the supply and demand, and utilization of professional manpower;

3. Other matters prescribed by Presidential Decree for the development, management, etc. of professional manpower.

(3) For developing professional manpower, the Minister of Climate, Energy and Environment may designate universities, research institutes, institutions or organizations which are related to energy industries, etc. as professional manpower development institutions. <Amended on Oct. 1, 2025>

(4) The Minister of Climate, Energy and Environment may provide professional manpower development institutions designated pursuant to paragraph (3) with subsidies for the costs incurred in education, training, etc. <Amended on Oct. 1, 2025>

(5) Where a professional manpower development institution falls short of the requirements for designation prescribed in paragraph (6), the Minister of Climate, Energy and Environment may withdraw the designation thereof. <Amended on Oct. 1, 2025>

(6) Other matters necessary for the requirements and procedures for and the withdrawal of designation of professional manpower development institutions, scope of support, etc. shall be prescribed by Presidential Decree.

Article 19(Programs and support for international exchange) #

In order to ascertain international trends related to energy industries, etc. and to facilitate international cooperation and making inroads into overseas markets, the State and local governments may implement international exchange programs for professional manpower and specialized research institutions and industry-academic-research international joint research programs or provide support necessary therefor.

Article 20(Payment of employment subsidies) #

(1) Local governments may provide employment subsidies, education and training subsidies, etc. to energy-specialized enterprises.

(2) Local governments may provide energy-specialized enterprises with institutional and administrative support for the smooth supply of and demand for human resources.

[This Article Added on Feb. 6, 2024]

[Previous Article 20 moved to Article 22 <Feb. 6, 2024>]

Article 21(Preferential treatment of enterprises relocating to provincial areas) #

Where the State or a local government provides enterprises relocating to a provincial area with administrative and financial support, etc. pursuant to Article 24(1) of the Special Act on Local Autonomy and Decentralization, and Balanced Regional Development, it may give preferential treatment to enterprises that have relocated to an energy industry convergence complex, as prescribed by Presidential Decree.

[This Article Added on Feb. 6, 2024]

Article 22(Delegation of authority) #

Authority of the Minister of Climate, Energy and Environment which is vested by this Act may be delegated in part to Mayors/Do Governors as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>

[Moved from Article 20 <Feb. 6, 2024>]