Article 9(Restrictions on participation in defense research and development projects) #
(1) If any of the following is applicable to a research institute or similar entity or its researcher-in-chief, researcher, executive officer or employee that has participated in a defense research and development project under an agreement concluded under Article 8, the Minister of National Defense may impose on the relevant institute or person a restriction prohibiting participation in any other defense research and development project for a period not to exceed two years (or five years in the case of a person on whom a restriction on participation in a task of any other defense research and development project has been imposed on the same grounds), and may recover, in whole or in part, the project costs the Minister has contributed; provided, a reduction or exemption can be granted in respect of the period of restriction on participation and an amount of the project costs to be recovered in the case of subparagraph 1, if the relevant institute or person is deemed to have performed research and development in good faith: <Amended on Jan. 9, 2024>
1. Where research and development falling under items (a), (b), (c), or (d) of subparagraph 5 of Article 2 is determined, according to an evaluation conducted by the Minister of National Defense and the Administrator of the Defense Acquisition Program Administration, to be discontinued or to have failed due to extremely unsatisfactory results;
2. Where, in the case of research and development of future-leading defense technology under item (c) of subparagraph 5 of Article 2, an evaluation conducted by the Administrator of the Defense Acquisition Program Administration finds that the conduct and results of the research and development task are extremely unsatisfactory;
3. Where, without a compelling reason, the contents of the research and development are leaked or divulged, domestically or overseas, without due process;
4. Where, without a compelling reason, the performance of the research and development task is abandoned;
5. Where, without a compelling reason, royalties are not paid or the project cost recovery amount is not paid;
6. Where research and development expenses are used for purposes other than research purposes;
7. Where, without a compelling reason, intellectual property rights that are development outputs are applied for or registered in the name of the principal investigator or a researcher;
8. Where research and development is conducted by false or other unlawful means;
9. Any other case where the agreement is violated, as prescribed by Presidential Decree.
(2) Upon imposing a restriction on participation in a defense research and development project under paragraph (1), the Minister of the Defense Acquisition Program Administration shall inform the heads of other relevant central administrative agencies of the restriction on participation.
(3) Upon imposing a restriction on participation or taking a project costs recovery measure under paragraph (1), the Minister of the Defense Acquisition Program Administration shall give the head of the institute to which the relevant research-in-chief, researcher, executive officer or employee belongs written notice stating the restriction of participation or project costs recovery measure and other relevant matters.
(4) If the conduct specified in paragraph (1) 6 is discovered, the Minister of the Defense Acquisition Program Administration may impose on, and collect from, the relevant research institute, similar entity, researcher-in-chief, researcher, executive officer or employee an additional monetary sanction in an amount not to exceed five times the amount used for any purpose other than for research and development. <Amended on Jan. 9, 2024>
(5) If a person against whom a project costs recovery measure has been taken under paragraph (1) fails to pay back the money by the due date, the Minister of the Defense Acquisition Program Administration shall demand the payment thereof within a specified period, and if the person fails to pay back the money within the specified period, the Minister of the Defense Acquisition Program Administration shall collect it in the same manner as delinquent national taxes area collected.
(6) If a person on whom an additional monetary sanction has been imposed under paragraph (4) fails to pay the additional monetary sanction by the due date, the Minister of the Defense Acquisition Program Administration shall collect it in the same manner as delinquent national taxes area collected.
(7) The Minister of the Defense Acquisition Program Administration may entrust the Commissioner of the National Tax Service with the duties relating to the recovery of the project costs, collection of additional monetary sanctions and disposition of delinquency under paragraph (1) and paragraphs (4) through (6).
(8) Detailed standards for the period of restriction on participation on each ground for restriction on participation and an amount of project costs to be recovered under the main clause of paragraph (1), standards for recognizing the performance of research and development in good faith, for reductions and exemptions in respect of the period of restriction on participation and an amount of project costs to be recovered under the proviso of that paragraph, standards for additional monetary sanctions under paragraph (4), and other necessary matters shall be prescribed by Presidential Decree.