ENFORCEMENT DECREE OF THE LAST-MILE LOGISTICS INDUSTRY DEVELOPMENT ACT

Article 1(Purpose) #

The purpose of this Decree is to provide for matters mandated by the Last-Mile Logistics Industry Development Act and matters necessary for the enforcement of that Act.

Article 1-2(Standards and procedures for designation of logistically vulnerable areas) #

(1) An area prescribed by Presidential Decree in Article 3 (3) of the Last-Mile Logistics Industry Development Act (hereinafter referred to as the "Act") means an area designated and publicly notified by the Minister of Land, Infrastructure and Transport (hereinafter referred to as the "logistically vulnerable area") after undergoing examination by the specialized committee on last-mile logistics under Article 19-2 (1) 2 of the Framework Act on Logistics Policies, from among the jurisdictional areas of a Special Self-Governing City or Sis (including administrative cities under Article 10 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City)/Guns/Gus (referring to autonomous Gus) in consideration of the following matters: <Amended on Jul. 2, 2024>

1. Whether to provide last-mile logistics services to consumers;

2. Fares of last-mile logistics services;

3. Time required for delivery of cargo;

4. Other matters deemed by the Minister of Land, Infrastructure and Transport as necessary for the designation of a logistically vulnerable area.

(2) Where the Minister of Land, Infrastructure and Transport intends to designate a logistically vulnerable area pursuant to paragraph (1), he or she shall in advance hear opinions of the heads of related central administrative agencies and the Special Metropolitan City Mayor, a Metropolitan City Mayor, Metropolitan Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/Do Governor").

(3) When a Mayor/Do Governor (excluding a Special Self-Governing City Mayor) intends to present his or her opinion pursuant to paragraph (2), he or she shall hear opinions of the head of the competent Si (including the head of an administrative Si under Article 11 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City)/Gun/Gu (referring to the head of an autonomous Gu) in advance.

[This Article Added on Apr. 16, 2024]

Article 2(Standards for registration of package delivery service business) #

(1) Standards for facilities, equipment, business offices, etc. that are required to be equipped by a person who intends to engage in the package delivery business under Article 5 (1) 2 of the Act shall be as specified in Appendix 1. <Amended on Apr. 16, 2024>

(2) In Article 5 (1) 3 of the Act, "requirements prescribed by Presidential Decree, such as registration of ultra-light aircraft rental service under Article 48 of the Aviation Business Act or operational safety certification under Article 40-2 of the Act on the Intelligent Robots Development and Dissemination Promotion Act means requirements classified as follows: <Added on Jan. 14, 2025>

1. Where a person intends to use a drone (referring to a drone referred to in Article 2 (1) 1 of the Act on the Promotion of Utilization of Drones and Creation of Infrastructure Therefor; hereinafter the same shall apply) for the collection and delivery of cargo: in connection with the use of the relevant drone, "aircraft". ultra-light aircraft rental services shall be registered pursuant to Article 48 of the Aviation Business Act;

2. Where a person intends to use an outdoor mobile robot (referring to an outdoor mobile robot defined in subparagraph 4-2 of Article 2 of the Intelligent Robots Development and Distribution Promotion Act; hereinafter the same shall apply) for collecting and delivering cargo: with respect to the relevant outdoor mobile robot, the person shall obtain the driving safety certification under Article 40-2 of that Act and purchase insurance or mutual aid pursuant to Article 40-4 of that Act.

(3) Any person who intends to register a parcel delivery service business pursuant to Article 5 (1) of the Act shall submit an application for registration of parcel delivery service business prescribed by Decree of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport along with the following documents. <Amended on Jan. 14, 2025>

1. A document substantiating that such person has obtained permission to engage in the trucking transport service under Article 3 (1) of the Trucking Transport Business Act;

2. A document stating the names, locations, and sizes of business offices and directly operated stores, goods sorting facilities, and goods handling places categorized in Appendix 1;

3. Where such person jointly uses business offices and facilities with a trucking transport service provider who has obtained permission pursuant to Article 3 of the Trucking Transport Business Act for at least one year, a document substantiating the fact;

Article 3(Registration of change in package delivery service business) #

(1) A person who intends to file for registration of change in his or her package delivery service business pursuant to the main clause of Article 5 (2) of the Act shall submit to the Minister of Land, Infrastructure and Transport an application for registration of change in package delivery service business in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with a document regarding the matters to be changed.

(2) "Where the person changes any minor matter prescribed by Presidential Decree" in the proviso of Article 5 (2) of the Act means any of the following:

1. Where the person changes the locations of business offices or directly operated stores, goods sorting facilities, or goods handling places categorized in Appendix 1;

2. Where the person changes the number of business offices or directly operated stores, goods sorting facilities, or goods handling places categorized in Appendix 1 (limited to a change to the extent of meeting the standards for registration specified in subparagraphs 1 and 2 of Appendix 1);

3. Where the person changes the areas of goods sorting facilities (limited to a change to the extent of meeting the standard for the area under subparagraph 2 (a) of Appendix 1);

4. Where the person changes the number of trucks (limited to a change to the extent of meeting the standard for the number of trucks secured under subparagraph 3 (b) of Appendix 1).

Article 4(Management of business offices) #

(1) A package delivery service provider may request a business office to which he or she has outsourced services under Article 8 (1) of the Act (hereafter in this Article referred to as "outsourced business office"), to submit relevant materials annually pursuant to Article 9 (1) of the Act, in order to check whether such outsourced business office has violated Article 77 of the Occupational Safety and Health Act.

(2) Where a package delivery service provider deems that Article 77 of the Occupational Safety and Health Act has been violated after checking materials submitted under paragraph (1), such provider shall notify the relevant business office so that it may correct the violation.

Article 5(Reasons for refusing renewal of contract for outsourcing package transport and delivery services) #

(1) "Cases prescribed by Presidential Decree" in Article 10 (1) 2 of the Act means where the relevant package delivery service provider is subject to any of the following dispositions or punishments during the period of the contract for outsourcing package transport and delivery services:

1. A disposition under Article 19 or 23 of the Trucking Transport Business Act;

2. A disposition for imposition of an administrative fine under Article 70 (2) 6 of the Trucking Transport Business Act for a violation of Article 12 of that Act (excluding where such Article applies mutatis mutandis in Article 28 and 32 of that Act);

3. A punishment under Article 49 of the Act for a violation specified in subparagraph 4 of that Article.

(2) "Cases prescribed by Presidential Decree" in Article 10 (1) 3 of the Act means where the relevant package delivery service provider permanently closes all of his or her package delivery service business.

(3) "Where ... unavoidable cause prescribed by Presidential Decree occurs" in the proviso of Article 10 (4) of the Act means where it is impossible to give notice on the renewal of a contract for outsourcing package transport and delivery services by ordinary methods due to the uncertain address of the relevant package delivery service worker, his or her stay abroad, or other similar causes.

Article 6(Grounds for omission to give notice on termination of contract for outsourcing package transport and delivery services) #

Notice required under the main clause of Article 11 (1) of the Act need not be given pursuant to the proviso of that paragraph, in any of the following cases:

1. Where the relevant package delivery service provider fails to meet the qualifications for truck drivers required under Article 8 (1) of the Trucking Transport Business Act;

2. Where the relevant package delivery service provider is subject to any of the following dispositions during the period of the contract for outsourcing package transport and delivery services:

(a) A disposition to revoke permission for trucking transport service is imposed under Article 19 of the Trucking Transport Business Act;

(b) A disposition to revoke the person's qualification as a truck driver is imposed under Article 23 of the Trucking Transport Business Act;

(c) A disposition to impose an administrative fine under Article 70 (2) 6 of the Trucking Transport Business Act which is made to such provider at least twice for a violation of Article 12 of that Act (excluding where such Article applies mutatis mutandis in Article 28 and 32 of that Act);

3. Where it becomes impossible for the relevant package delivery service worker to provide the outsourced package transport and delivery services due to an accident, disease, emigration, etc.

Article 7(Reporting on temporary or permanent closure of package delivery service business) #

(1) A person who intends to file a report on the temporary or permanent closure of his or her business pursuant to Article 14 (1) of the Act shall submit a report on the temporary or permanent closure of package delivery service business in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport by no later than 15 days before the scheduled date of temporary or permanent closure of business. In such cases, if a person who intends to permanently close business is a corporation, a document substantiating its decision on the permanent closure of business shall be attached.

(2) A person who intends to return motor vehicle registration certificates and motor vehicle registration license plates pursuant to Article 14 (5) of the Act shall return them within 15 days from the date he or she temporarily closes all or part, or permanently closes all, of his or her package delivery service business.

(3) Where the period of temporary closure of business reported under Article 14 (1) of the Act ends, the Minister of Land, Infrastructure and Transport shall return the motor vehicle registration certificates and motor vehicle registration license plates kept in accordance with paragraph (2) to the relevant package delivery service provider.

Article 8(Criteria for disposition to revoke registration) #

The detailed criteria for disposition to revoke registration under Article 15 (1) of the Act shall be as specified in Appendix 2.

Article 9(Eligibility and requirements for small package delivery agent service provider certification) #

(1) A person eligible to obtain certification as a small package delivery agent service provider pursuant to Article 17 (1) of the Act (hereinafter referred to as "small package service certification") shall be a small package delivery agent service provider who meets all of the following requirements:

1. To have the operational system, including human resources and information and communications network necessary for conducting his or her small package delivery agent service business;

2. To have a quality control system to ensure the safety and reliability of small package delivery agent services;

3. To have a business operating system for safe delivery by small package delivery agent service workers;

4. To have financial and management capabilities to provide small package delivery agent services in a stable and continuous manner.

(2) The detailed requirements for small package service certification referred to in paragraph (1) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 10(Application for small package service certification) #

(1) A person who intends to apply for small package service certification under Article 17 (2) of the Act shall submit to the Minister of Land, Infrastructure and Transport an application for certification as a small package delivery agent service provider in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with the following documents:

1. A document substantiating that he or she has met the requirements prescribed in Article 9 (1) and (2);

2. His or her business registration certificate (limited to individuals).

(2) Where a corporation has submitted an application under paragraph (1), the Minister of Land, Infrastructure and Transport shall verify its corporate registration certificate through administrative data matching under Article 36 (1) of the Electronic Government Act.

(3) If an applicant is found to be eligible for small package service certification and to meet the requirements therefor as prescribed in Article 9 (1) and (2) as a result of examining the details of the application submitted under paragraph (1), the Minister of Land, Infrastructure and Transport shall issue a certificate as a small package delivery agent service provider as prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

(4) Where the Minister of Land, Infrastructure and Transport conducts an examination for small package service certification under paragraph (3), he or she shall prepare a small package service certification register and retain materials regarding examinations for small package service certification and the small package service certification register for three years.

(5) The Minister of Land, Infrastructure and Transport shall check whether a person who has obtained small package service certification pursuant to Article 17 (1) of the Act continues to meet the requirements for small package service certification under Article 9 every year and may conduct an occasional check thereon if deemed necessary.

(6) Except as provided in paragraphs (1) thorough (5), matters necessary for small package service certification shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 11(Methods of indicating small package service certification) #

(1) A mark of small package service certification under Article 17 (3) of the Act shall be indicated in such a way as to be easily recognized by consumers, such as printing or engraving.

(2) Matters necessary for the design, specification, etc. of a mark of small package service certification specified in paragraph (1) shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 12(Standards for designation of certification agents) #

(1) A person who seeks to be designated as a certification agent for small package delivery agent service providers under Article 18 (1) of the Act (hereinafter referred to as "certification agent") shall meet all of the following requirements:

1. To have a dedicated organization to conduct an examination for small package business certification;

2. To have any of the following professional human resources to conduct an examination for small package service certification:

(a) A person who holds a doctoral degree in the field of logistics;

(b) A person who has engaged in logistics-related business for at least 10 years.

(2) A person who seeks to be designated as a certification agent pursuant to Article 18 (2) of the Act shall submit to the Minister of Land, Infrastructure and Transport an application for designation as a certification agent for small package delivery agent service providers in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with the following documents:

1. A document substantiating that the person has met the requirements for designation under paragraph (1);

2. A performance system and operational plan for providing small package service certification services;

3. Articles of incorporation or internal regulations corresponding thereto.

(3) Where an application for designation submitted under paragraph (2) meets the requirements referred to in paragraph (1), the Minister of Land, Infrastructure and Transport shall designate the applicant as a certification agent for small package delivery agent service providers and shall issue a certificate of designation as a certification agent for small package delivery agent service providers in the form prescribed by the Ministry of Land, Infrastructure and Transport.

(4) Where the Minister of Land, Infrastructure and Transport designates a certification agent pursuant to paragraph (3), he or she shall post the following on the website of the Ministry:

1. The name of the certification agent and the location of its principal office;

2. The representative’s name of the certification agent;

3. The scope of small package service certification agent services;

Article 13(Scope of services of certification agents) #

(1) The scope of services of certification agents shall be as follows:

1. Receiving applications for certification and reviewing the details thereof under Article 10 (1) through (3);

2. Preparing a small package service certification register and retaining materials regarding examinations for small package service certification and the small package service certification register, under Article 10 (4);

3. Reviewing the details of check conducted under Article 10 (5).

(2) A certification agent shall report the results of the review of details of applications for small package service certification to the Minister of Land, Infrastructure and Transport within 30 days from the date of completing such review.

(3) Except as provided in paragraphs (1) and (2), necessary matters for certification agents to review applications for small package service certification shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 14(Revocation of small package service certification) #

Upon revoking small package service certification under Article 19 (1) of the Act, the Minister of Land, Infrastructure and Transport shall publicly announce such fact on the website of the Ministry.

Article 14-2(Restrictions on engaging in small package delivery agent service business) #

"Period prescribed by Presidential Decree" in the part, with the exception of the items of, Article 19-2 (1) 1 of the Act means the following periods.

1. Offenses under each subparagraph of Article 2 (1) of the Act on Special Cases concerning the Punishment of Specific Violent Crimes: 20 years;

2. Crimes under Article 5-2, Article 5-4, Article 5-5, Article 5-9, paragraphs 1 through 3, and Article 11 of the “Act on the Aggravated Punishment of Specific Crimes”: 20 years;

3. Offenses under Article 5-9 (4) of the Act on the Aggravated Punishment of Specific Crimes: Six years;

4. Crimes under articles 58, 58-2, 59 and 60 of the Narcotics Control Act: 20 years;

5. Offenses under each subparagraph of Article 61 (1) of the Narcotics Control Act and any attempt to commit any of the offenses under paragraph (3) of that Article (excluding any attempt to commit any of the offenses under paragraph (1) 2, 3, and 9 of that Article): 10 years;

6. Offenses under each subparagraph of Article 61 (2) of the Narcotics Control Act and any attempt to commit any of the offenses under paragraph (3) of that Article (excluding any attempt to commit any of the offenses under paragraph (1) 2, 3, and 9 of that Article): 15 years;

7. Offenses under the subparagraphs of Article 62 (1) of the Narcotics Control Act and any attempts to commit any of the offenses under paragraph (3) of that Article: 6 years;

8. Offenses under the subparagraphs of Article 62 (2) of the Narcotics Control Act and any attempts to commit any of the offenses under paragraph (3) of that Article: 9 years;

9. Offenses under each subparagraph of Article 63 (1) of the Narcotics Control Act and any attempts to commit any of the offenses under paragraph (3) of the same Article (limited to any attempts to commit any of the offenses under paragraph (1) 2 through 5, 11, and 12 of the same Article): 4 years;

10. Offenses under Article 63 (2) of the Narcotics Control Act and any attempts to commit any of the offenses under paragraph (3) of the same Article (limited to any attempts to commit any of the offenses under paragraph (2) of that Article): 6 years;

11. A crime under each subparagraph of Article 64 and subparagraph 1 of Article 65-2 of the Narcotics Control Act: 2 years;

Article 14-3(Inquiry into criminal history records for verification of restrictions on working) #

(1) Where a certified small package delivery service provider or a business office intends to request a criminal history inquiry pursuant to the main clause of Article 19-3 (1) of the Act, he or she shall attach the following documents to a criminal history inquiry request form, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport and submit to the Commissioner of the Metropolitan Police Agency or the chief of a police station having jurisdiction over the location of such inquiry; in such cases, if the Commissioner of the Metropolitan Police Agency or the chiefof the police station is able to verify the information on the documents referred to in subparagraph 1 (a) or 2 (a) through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, such confirmation may be used in lieu of submitting the documents.

1. Where a certified small package delivery service provider requests: the following documents;

(a) Documents certifying that the company is a certified small package delivery service provider;

(b) Consent form of the person subject to criminal record inquiry;

2. Where a business office requests: the following documents:

(a) Documents proving that it is a business office;

(b) Consent form of the person subject to criminal record inquiry;

(2) Where a small package delivery service worker or a person who intends to become a small package delivery service worker (hereafter referred to as “small package delivery service worker , etc.”) intends to request a criminal history inquiry pursuant to the proviso to Article 19-3 (1) of the Act, he or she shall attach the following documents to a criminal history inquiry request form, as prescribed by Decree of the Ministry of Land, Infrastructure and Transport and submit to the Commissioner of the Metropolitan Police Agency or the chief of a police station having jurisdiction over the location of such inquiry; in such cases, if the Commissioner of the Metropolitan Police Agency or the chiefof the police station is able to verify the information on the documents referred to in subparagraph 1 through the joint use of administrative information under Article 36 (1) of the Electronic Government Act, such confirmation may be used in lieu of submitting the documents.

1. Documents proving your identity;

2. Written confirmation from a certified small package delivery agent service provider or a business office.

Article 15(Change of master plans for development of last-mile logistics industry) #

"Matters prescribed by Presidential Decree" in Article 20 (3) of the Act means the matters specified in paragraph (2) 1, 2, and 7 of that Article.

Article 16 #

Deleted. <Jul. 2, 2024>

Article 17 #

Deleted. <Jul. 2, 2024>

Article 18(Fact-finding surveys) #

(1) The Minister of Land, Infrastructure and Transport shall conduct a fact-finding survey on the last-mile logistics industry under Article 22 (1) of the Act (hereinafter referred to as "fact-finding survey") once a year and may conduct an occasional survey if necessary.

(2) A fact-finding survey shall be conducted on the following:

1. The current status and prospects of the domestic and overseas last-mile logistics industry;

2. The current status of last-mile logistics facilities;

3. The current status of persons engaging in the last-mile logistics industry, and that of professional human resources referred to in Article 26 (1) of the Act;

4. The current status of research and new technology in the last-mile logistics industry;

5. Other matters requiring surveys to formulate policies for developing the last-mile logistics industry.

(3) Except as provided in paragraphs (1) and (2), matters necessary for fact-finding surveys shall be prescribed by Decree of the Ministry of Land, Infrastructure and Transport.

Article 19(Compilation and management of statistics on the last-mile logistics industry) #

(1) The categories of statistics on the last-mile logistics industry to be compiled under Article 22 (2) of the Act (hereinafter referred to as "statistics on the last-mile logistics industry") shall be as follows:

1. Matters described in the subparagraphs of Article 18 (2);

2. Other matters deemed by the Minister of Land, Infrastructure and Transport requiring the compilation of statistics on the last-mile logistics industry.

(2) The Minister of Land, Infrastructure and Transport may establish and operate a system for compiling and managing statistics on the last-mile logistics industry.

(3) Statistics on the last-mile logistics industry compiled under Article 22 (2) of the Act shall be officially announced by the following means:

1. Posting on the website of the Ministry of Land, Infrastructure and Transport, other central administrative agencies, or agencies under their jurisdictions;

2. Publications.

Article 20(Administrative and financial support) #

"Projects prescribed by Presidential Decree" in subparagraph 6 of Article 23 of the Act means the following:

1. Conducting fact-finding surveys on, and compiling and managing statistics on, the last-mile logistics industry;

2. Promoting international cooperation in the last-mile logistics industry;

3. Conducting public relations activities related to the last-mile logistics industry;

4. Other matters for which the Minister of Land, Infrastructure and Transport deems it necessary to provide support to improve the competitiveness of the last-mile logistics industry, including standardization projects and training of professional human resources.

Article 21(Support for starting businesses) #

"Matters prescribed by Presidential Decree" in subparagraph 4 of Article 25 of the Act means the following:

1. Providing education related to management, such as taxation, accounting, and law;

2. Helping to receive startup support services provided by the public or private sector;

3. Other matters for which the Minister of Trade, Industry and Energy deems it necessary to provide support to increase the success rate of business starters.

Article 22(Policies for development and management of professional human resources) #

"Matters prescribed by Presidential Decree" in Article 26 (2) 3 of the Act means the following:

1. Supporting the development and distribution of educational programs and teaching materials for professional human resources;

2. Training and education of technical workers in charge of the management of last-mile logistics facilities and the operation of logistics equipment;

3. Other matters deemed necessary by the Minister of Land, Infrastructure and Transport for sophistication, etc. of human resource structures in the last-mile logistics industry, including re-education of professional human resources.

Article 23(Designation of training institutions for professional human resources) #

(1) "Research institute, university, institution, or organization prescribed by Presidential Decree" in Article 26 (3) of the Act means a research institute, university, institution, or organization that meets all of the following requirements:

1. It shall be any of the following:

(a) A research institute established under Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes or Article 4 of the Act on the Establishment and Operation of Local Government-Funded Research Institutes;

(b) A school defined in Article 2 of the Higher Education Act which offers educational courses related to the last-mile logistics industry;

(c) A logistics-related association established under Article 55 of the Framework Act on Logistics Policies;

(d) An association for small package delivery agent services which is established under Article 40 of the Act;

(e) A non-profit corporation established under Article 32 of the Civil Act; or a public interest corporation conducting duties relating to last-mile logistics services which has obtained permission for establishment under Article 4 of the Act on the Establishment and Operation of Public Interest Corporations;

(f) Other education and training institutions or organizations related to the last-mile logistics industry which are recognized by the Minister of Land, Infrastructure and Transport;

2. It shall meet the requirements for human resources and facilities specified in Appendix 3.

(2) A person who seeks to be designated as a training institution for professional human resources prescribed in Article 26 (3) of the Act (hereinafter referred to as "training institution for professional human resources") shall submit an application for designation as a training institution for professional human resources in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport to the Minister of Land, Infrastructure and Transport, along with a document substantiating that the requirements for designation under paragraph (1) are met.

(3) Where the Minister of Land, Infrastructure and Transport designates a training institution for professional human resources, he or she shall publicly announce such designation on the website of the Ministry.

(4) The Minister of Land, Infrastructure and Transport may grant subsidies for training institutions for professional human resources pursuant to Article 26 (4) of the Act to cover the following costs:

Article 24(Matters subject to standardization) #

"Matters prescribed by Presidential Decree" in Article 27 (1) of the Act means the following:

1. Packaging container standards related to the last-mile logistics industry;

2. A system for electronically processing information related to last-mile logistics services, such as receipts and invoices;

3. Other matters requiring standardization in relation to the last-mile logistics industry which are determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 25(Procedures for pilot projects) #

(1) Where the Minister of Land, Infrastructure and Transport intends to implement a pilot project pursuant to Article 28 (1) of the Act, he or she shall formulate a plan to implement the pilot project which includes the following and shall publicly announce it on the website of the Ministry:

1. The purpose of the pilot project;

2. The details and target of the pilot project and standards for selection thereof;

3. The standards for selection of the pilot project and methods to assess the outcomes thereof;

4. The plan to use the outcomes of the pilot project.

(2) A person who intends to participate in a pilot project publicly announced under paragraph (1) shall submit a plan for the pilot project, to the Minister of Land, Infrastructure and Transport, along with a document substantiating that the person satisfies the standards for selection under subparagraph 2 of that paragraph.

(3) The Minister of Land, Infrastructure and Transport shall, within 30 days from the date of receiving an application under paragraph (2), examine whether to select the relevant pilot project, shall notify the applicant institution of the result of such examination, and shall publicly announce the details of the pilot project, the institution to implement the project, and relevant matters on the website of the Ministry.

(4) Assessment required under Article 28 (3) of the Act shall be conducted within one year from the date the pilot project is completed.

Article 26(Projects eligible to receive support for last-mile logistics facilities) #

"Projects prescribed by Presidential Decree" in Article 29 (2) 4 of the Act means the following:

1. Projects to establish systems for providing environment-friendly last-mile logistics services;

2. Projects to promote joint last-mile logistics services;

3. Projects to ensure the smooth provision of last-mile logistics services by last-mile logistics business operators that are small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises;

4. Other projects for which the Minister of Land, Infrastructure and Transport deems it necessary to provide support for the smooth development and expansion of last-mile logistics facilities, such as construction, repair, and improvement of such facilities by last-mile logistics business operators.

Article 27(Special cases concerning guidelines for prices of logistics facilities) #

(1) Where an implementer of a logistics complex development project under Article 27 of the Act on the Development and Management of Logistics Facilities (hereinafter referred to as "implementer") intends to sell or lease land in lots, facilities, etc. developed through a logistics complex development project in compliance with the guidelines for prices under Article 30 (1) of the Act, he or she shall conclude a supply contract for preferential sale or lease of at least 50/100 of lots for logistics facilities that are developed within the logistics complex pursuant to Article 30 (2) of the Act, with any of the following persons who intend to move into the relevant logistics complex and engage in the logistics business:

1. A last-mile logistics business operator;

2. A corporation established for developing or operating logistics facilities defined in subparagraph 1 of Article 2 of the Act on the Development and Management of Logistics Facilities (hereinafter referred to as "logistics facilities") for which a total ratio of investment of last-mile logistics business operators is at least 20/100.

(2) The maximum selling prices of land in lots, facilities, etc. which are not sold or leased under paragraph (1), among those developed through a logistics complex development project, may be set at values appraised under the Act on Appraisal and Certified Appraisers, pursuant to Article 30 (1) of the Act; provided, the selling prices for land in lots, facilities, etc. specified in Article 39 (2) of the Enforcement Decree of the Act on the Development and Management of Logistics Facilities shall be set as specified in that paragraph.

(3) Rent rates for land in lots, facilities, etc. which are sold or leased under paragraph (1), among those developed through a logistics complex development project, may be calculated within a range obtained by adding or subtracting 1/100 to and from relevant rent rates calculated under Article 40 of the Enforcement Decree of the Act on the Development and Management of Logistics Facilities.

Article 28(Securing of last-mile logistics facilities) #

(1) "Projects prescribed by Presidential Decree" in Article 31 (1) 6 of the Act means any of the following projects which are determined and publicly notified by the Minister of Land, Infrastructure and Transport:

1. An improvement project defined in subparagraph 2 of Article 2 of the Act on the Improvement of Urban Areas and Residential Environments;

2. An urban renewal acceleration project defined in subparagraph 2 of Article 2 of the Special Act on the Promotion of Urban Renewal;

3. An island development project under the Islands Development Promotion Act;

4. A project for constructing the administrative city under the Special Act on the Construction of Administrative City in Yeongi-Gongju Area for Follow-Up Measures for New Administrative Capital;

5. A smart city construction project defined in subparagraph 6 of Article 2 of the Act on the Promotion of Smart City Development and Industry;

6. A project for developing a station's sphere of influence defined in subparagraph 2 of Article 2 of the Act on Developing and Using Station's Sphere of Influence;

7. A housing construction project and a housing site preparation project under Article 15 of the Housing Act;

8. A project for developing an internationalization planned district defined in subparagraph 9 of Article 2 of the Special Act on Support for Pyeongtaek-si Following Relocation of U.S. Military Bases in Korea and a Pyeongtaek-si development project under Article 16 of that Act;

9. An innovation city development project defined in subparagraph 5 of Article 2 of the Special Act on the Construction and Development of Innovation Cities;

10. Other projects that require determination by an urban or Gun management plan under Article 50 of the National Land Planning and Utilization Act in an urban area classified in subparagraph 1 of Article 6 of that Act.

(2) Where the head of a local government intends to reflect the securing of last-mile logistics facilities to reach an appropriate scale in the relevant urban or Gun plan defined in subparagraph 2 of Article 2 of the National Land Planning and Utilization Act and the master plan for regional logistics pursuant to Article 31 (2) of the Act, he or she shall take into consideration the size of the resident population associated with each project under the subparagraphs of Article 31 (1) of the Act, the locations and sizes of existing logistics facilities, and similar matters.

Article 29(Preparation of standard contract form) #

(1) Where the Minister of Land, Infrastructure and Transport prepares a standard contract form for last-mile logistics services (hereinafter referred to as "standard contract form") pursuant to Article 32 (1) of the Act, he or she shall preconsult with the Minister of Employment and Labor and the Fair Trade Commission.

(2) A standard contract form prepared under Article 32 (1) of the Act shall include the following:

1. Matters relating to the term of the contract;

2. Matters relating to the scope of outsourced services and fees;

3. Matters relating to rights and obligations of contractual parties;

4. Matters relating to the prohibition of unfair trade practices;

5. Matters relating to compensation for damage;

6. Matters relating to social insurance, including industrial accident compensation insurance;

7. Other matters prescribed by Decree of the Ministry of Land, Infrastructure and Transport for the improvement of quality of last-mile logistics services, the protection of consumers' rights and interests, and the protection of last-mile logistics service workers and improvement of their working conditions and for other similar purposes.

Article 30(Reporting on service terms and conditions) #

(1) Terms and conditions for last-mile logistics services under Article 33 (1) of the Act (hereinafter referred to as "service terms and conditions") shall include the following:

1. Types of business;

2. Obligations of last-mile logistics business operators and consumers;

3. Matters relating to claim for fares;

4. Matters relating to invoices;

5. Matters relating to the handling of goods, such as delivery or disposal of goods;

6. Matters relating to compensation for damage and immunity from liability.

(2) A person who intends to file a report on service terms and conditions or a report on changes in them pursuant to Article 33 (1) of the Act shall submit a report on service terms and conditions for last-mile logistics services or a report on changes in them in the forms prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with the following documents:

1. In cases of filing such report: Service terms and conditions;

2. In cases of filing a report on such changes: A table to compare the new and old service terms and conditions.

Article 31(Types of prohibition of receiving and providing unlawful profits) #

The acts of unfairly receiving or rebating unlawful profits pursuant to Article 34 (1) and (2) of the Act shall be as follows:

1. An act, by a person who has requested the delivery of goods (hereinafter referred to as "owner of goods"), of accepting an amount paid by a consumer as consideration for last-mile logistics services, from a last-mile logistics business operator, a business office, or a last-mile delivery service worker, for the purpose of concluding a contract for transportation for last-mile logistics services or maintaining such contract or for other similar purposes;

2. An act, by the owner of goods, of unlawfully failing to pay all or some of an amount paid by a consumer as consideration for last-mile logistics services, to a last-mile logistics business operator, a business office, or a last-mile delivery service worker, without notifying the consumer thereof;

3. An act, by a last-mile logistics business operator, a business office, a last-mile delivery service worker, of rebating all or some of an amount paid by a consumer as consideration for last-mile logistics services, to the owner of goods, for the purpose of concluding a contract for transportation for last-mile logistics services or maintaining such contract or for other similar purposes.

Article 32(Official announcement of results of assessment of last-mile logistics services) #

Where the Minister of Land, Infrastructure and Transport intends to officially announce the results of the assessment of last-mile logistics services under Article 35 (4) of the Act, he or she shall post such results on the website of the Ministry.

Article 33(Awards for exemplary businesses in assessment of services) #

(1) To grant awards under Article 35 (5) of the Act, the Minister of Land, Infrastructure and Transport shall publicly announce the standards for granting awards, methods and procedures for selecting winners, and other similar matters.

(2) The Minister of Land, Infrastructure and Transport may subsidize a person awarded under Article 35 (5) of the Act to cover costs incurred in conducting investigations and research, training, and guidance and performing other similar activities related to the improvement, etc. of quality of last-mile logistics services.

(3) "Information prescribed by Presidential Decree, such as the purchase of industrial accident compensation insurance under Article 125 of the Industrial Accident Compensation Insurance Act" in Article 35 (6) of the Act means the information created and managed by the Korea Workers' Compensation and Welfare Service established under Article 10 of that Act, which is about the purchase of industrial accident compensation insurance or employment insurance made by a last-mile delivery service worker who has concluded a contract for outsourcing transportation, a contract for employment, or any similar contract with a last-mile logistics business operator subject to assessment or its business office.

(4) Where the Minister of Land, Infrastructure and Transport requests the submission of relevant materials or opinions, etc. pursuant to the former part of Article 35 (7) of the Act, he or she shall make such request in writing, specifying the requested matters.

(5) Where omission is found in, or supplementation is necessary for, materials, opinions, etc. submitted under paragraph (4), the Minister of Land, Infrastructure and Transport may request the relevant last-mile logistics business operator, in writing, to submit additional or supplemented materials.

(6) Where the Minister of Land, Infrastructure and Transport intends to conduct an on-site investigation pursuant to the former part of Article 35 (7) of the Act, he or she shall formulate a plan for on-site investigation, including the following, and shall notify it to the relevant package delivery service provider:

1. Purposes of the investigation;

2. Object of the investigation;

3. Methods of the investigation.

Article 34(Criteria for establishment of rest facilities for last-mile delivery service workers) #

(1) Rest facilities required under Article 36 (2) of the Act shall be installed in consideration of the circumstances, characteristics, etc. in which last-mile delivery service workers are providing their services.

(2) The detailed standards for rest facilities established under Article 36 (2) of the Act shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport.

Article 35(Details of improvement orders and recommendations) #

"Matters prescribed by Presidential Decree" in subparagraph 5 of Article 39 of the Act means the following:

1. To protect last-mile delivery service workers and to improve their working conditions;

2. To improve the transaction structure of the last-mile logistics business;

3. To protect consumers' personal information and to enhance their rights and interests.

Article 36(Establishment of association related to small package delivery agent services) #

(1) Where it is intended to establish an association related to small package delivery agent services pursuant to Article 40 (3) of the Act (hereinafter referred to as the "Small Package Delivery Agent Service Association"), at least 1/5 of the persons qualified for membership of the Small Package Delivery Agent Service Association to be established shall promote the establishment as promoters and shall file for authorization of the establishment with the Minister of Land, Infrastructure and Transport after passing a resolution at the inaugural general meeting with the consent of at least 1/3 of those qualified for membership.

(2) The articles of incorporation of the Association shall include the following:

1. Objectives;

2. Title;

3. Location of its office;

4. Matters relating to its members and general meetings;

5. Matters relating to its executive officers;

6. Matters relating to its affairs;

7. Matters relating to its accounting and membership fees;

8. Matters relating to any amendment to its articles of incorporation;

9. Matters relating to its dissolution;

10. Other matters relating to the operation of the Association.

(3) Upon granting authorization for the establishment of the Small Package Delivery Agent Service Association pursuant to the former part of Article 40 (3) of the Act, the Minister of Land, Infrastructure and Transport shall publicly announce the details on the website of the Ministry.

Article 37(Authorization for establishment of mutual aid association) #

(1) Where it is intended to establish a mutual aid association pursuant to Article 41 (1) of the Act (hereinafter referred to as the "Mutual Aid Association"), at least three certified small package delivery agent service providers qualified for membership for the Mutual Aid Association to be established shall promote the establishment as promoters and shall file for authorization of the establishment with the Minister of Land, Infrastructure and Transport after passing a resolution at the inaugural general meeting with the consent of at least five certified small package delivery agent service providers.

(2) The articles of incorporation of the Mutual Aid Association prescribed in Article 41 (4) of the Act shall include the following:

1. Objectives;

2. Title;

3. Location of its office;

4. Matters relating to qualifications, admission, and withdrawal of its members;

5. Matters relating to its assets and accounting;

6. Matters relating to its general meetings;

7. Matters relating to the steering committee;

8. Matters relating to its executive officers and employees;

9. Matters relating to affairs and performing thereof;

10. Matters relating to any amendment to its articles of incorporation;

11. Matters relating to its dissolution and disposal of its residual property.

(3) A person who seeks to obtain authorization for the establishment of the Mutual Aid Association under paragraph (1) shall submit to the Minister of Land, Infrastructure and Transport an application for authorization for the establishment of the Mutual Aid Association in the form prescribed by Decree of the Ministry of Land, Infrastructure and Transport, along with the following documents:

1. Articles of incorporation;

2. Business plan;

3. Statement of income and expenditure;

4. Minutes of the inaugural general meeting.

(4) Upon granting authorization for the establishment of the Mutual Aid Association under Article 41 (1) of the Act, the Minister of Land, Infrastructure and Transport shall publicly announce such fact on the website of the Ministry.

Article 38(Operation of mutual aid association) #

(1) The Mutual Aid Association shall comply with the following guidelines for financial soundness so as to ensure its solvency and the managerial soundness:

1. The solvency margin ratio according to the following formula shall be maintained at not less than 100/100;

+--------------+-------------------------------------------------------------+

+--------------+-------------------------------------------------------------+

│ Solvency margin ratio = A │

+--------------+-------------------------------------------------------------+

│ B │

+--------------+-------------------------------------------------------------+

│ A: Solvency margin (An amount calculated by subtracting the amount prescribed by the Minister of Land, Infrastructure and Transport, │

│ such as the value of business right and prepaid expenses, from the aggregate amount of capital, allowance for bad debts, earned surplus, │

│ , and other items corresponding thereto which are prescribed by the Minister of Land, Infrastructure and Transport) │

│ B: Standard solvency margin (An amount obtained by converting the risks occurring in the course of operating │

│ the mutual aid program into an amount, as prescribed by the Minister of Land, Infrastructure and Transport) │

└─────────────────────────────────────────────┘

2. It shall regularly classify the soundness of its assets such as claims for indemnity, and accumulate allowances for bad debts;

3. It shall appropriate and accumulate liability reserve and payment reserve for each business at the end of each accounting period.

(2) The mutual aid association shall budget its gross revenue and expenditure for each business year and shall submit the budget to the Minister of Land, Infrastructure and Transport not later than one month before the commencement of the relevant business year.

(3) The mutual aid association shall complete the settlement of accounts within two months after the end of each business year and shall submit a report on the settlement of accounts to the Minister of Land, Infrastructure and Transport along with a statement of financial position and an income statement.

Article 39(Supervision over mutual aid association) #

(1) The Minister of Land, Infrastructure and Transport may take the following measures against the Mutual Aid Association, if deemed necessary:

1. To require it to submit a report on compensation for victims of traffic accidents;

2. To require it to submit a report on the management of mutual aid funds and other matters relating to mutual aid programs;

3. To investigate its business or accounting;

4. To inspect its ledgers or other documents.

(2) Where the Minister of Land, Infrastructure and Transport intends to conduct an investigation or inspection under paragraph (1) 3 or 4, he or she shall send a written plan that includes details, scheduled date and time, reasons, etc. of such investigation or inspection to the Mutual Aid Association by not later than seven days before such investigation or inspection; provided, the Minister need not send such plan in the case of an emergency or where it is deemed that any prior notification might cause the destruction of any evidence, etc., thereby making it impossible to attain the purposes of such investigation or inspection.

(3) Public officials conducting investigations or inspections under paragraph (1) 3 or 4 shall carry an identification indicating their authority and show it to relevant persons; and when they enter a place for investigation or inspection, they shall present to relevant persons a document stating their names, the time and purpose of their entry, and other similar information.

(4) If the Minister of Land, Infrastructure and Transport deems that the rights and interests of victims of traffic accidents, mutual aid subscribers, etc. are likely to be undermined due to the inadequate business operations or bad financial status of the Mutual Aid Association, the Minister may require it to take the following measures:

1. To change the way it conducts business;

2. To change its asset depository;

3. To change book values of its assets;

4. To hold reserves for unsound assets;

5. To write off assets deemed to be of no remaining value as losses.

(5) Where the Minister of Land, Infrastructure and Transport deems that the Mutual Aid Association is likely to undermine its managerial soundness due to a violation of the guidelines under Article 38 (1), he or she may require the Mutual Aid Association to prepare a plan to comply with the guidelines for financial soundness, which includes the increase of capital and disposal of shares and risky assets, and to take other necessary measures in consideration of the following:

Article 40(Delegation of authority and entrustment of affairs) #

(1) The Minister of Land, Infrastructure and Transport shall delegate the following authority to Mayor/Do Governor pursuant to Article 46 (1) of the Act: <Amended on Apr. 16, 2024>

1. Receipt of the motor vehicle registration certificates for, and the motor vehicle registration license plates of, trucks dedicated to package delivery services under Article 14 (5) of the Act;

2. Return of the motor vehicle registration certificates for, and the motor vehicle registration license plates of, trucks dedicated to package delivery services under Article 7 (3).

(2) Pursuant to Article 46 (3) of the Act, the Minister of Land, Infrastructure and Transport may entrust the following affairs to the institutions publicly notified by the Minister of Land, Infrastructure and Transport, among relevant institutions, organizations, or corporations with expertise in the last-mile logistics industry:

1. Receipt of applications for registration of, and applications for registration of change in, package delivery service business under Article 5 (1) and (2) of the Act and the receipt of reports under paragraph (4) of that Article;

2. Conducting of fact-finding surveys and compilation of statistics under Article 22 (1) and (2) of the Act;

3. Support for starting businesses under Article 25 of the Act;

4. Support for the establishment of the standards under Article 27 (1) of the Act and subsidization for the costs under paragraph (2) of that Article;

5. Implementation of pilot projects under Article 28 (1) of the Act, provision of support under paragraph (2) of that Article, conducting of assessment under paragraph (3) of that Article;

6. Support for the establishment, etc. of last-mile logistics facilities under Article 29 (1) and (2) of the Act;

7. Collection and review of materials regarding preparation of the standard contract form under Article 32 (1) of the Act;

8. Receipt of reports on service terms and conditions or reports on change in reported matters under Article 33 (1) of the Act;

9. Assessment of last-mile logistics services under Article 35 (1) of the Act, official announcement under paragraph (4) of that Article, provision of support under paragraph (5) of that Article, and request for the submission of materials under paragraph (7) of that Article;

Article 41(Fees) #

(1) Fees under Article 47 (1) of the Act shall be determined and publicly notified by the Minister of Land, Infrastructure and Transport, within the amount not exceeding two million won taking into consideration costs, etc. incurred in handling administrative affairs.

(2) Fees under paragraph (1) may be paid by means of electronic currencies, electronic settlement, etc. using an information and communications network.

Article 42(Processing of sensitive information and personally identifiable information) #

(1) The Minister of Land, Infrastructure and Transport (including persons entrusted with the duties of the Minister of Land, Infrastructure and Transport under Article 40 (2)) may process information constituting criminal history records referred to in subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act and data containing resident registration numbers, passport numbers, driving license numbers, or alien registration numbers referred to in Article 19 of that Decree where it is essential for performing the following affairs: <Amended on Jan. 30, 2024>

1. Affairs relating to the registration of package delivery service businesses under Article 5 of the Act;

2. Affairs relating to succession to the status of a package delivery service provider under Article 13 of the Act;

3. Affairs relating to authorization for the establishment of the Mutual Aid Association under Article 41 of the Act.

(2) A mutual-aid association may process data containing resident registration numbers, passport numbers, driver's license numbers, or alien registration numbers among sensitive information under Article 23 of the Personal Information Protection Act, if inevitable to perform the business of the mutual aid association specified in Article 42 (1) 1 through 4 of the Act. <Added on Jan. 30, 2024>

(3) Where it is unavoidable for a small package delivery agent service provider or a business office to perform work related to criminal record inquiries pursuant to the main clause of Article 19-3 (1) of the Act, they may process information corresponding to criminal record data pursuant to subparagraph 2 of Article 18 of the Enforcement Decree of the Personal Information Protection Act, or data containing resident registration numbers, driver's license numbers, or alien registration numbers pursuant to Article 19 of that Decree. <Added on Jan. 14, 2025>

Article 42-2(Re-examination of regulation) #

The Minister of Land, Infrastructure and Transport shall examine the restriction on the engagement in the small package delivery agent services under Article 14-2 every 3 years starting from January 1, 2025 (referring to the period that ends on the day before January 1st of every third year) and shall take measures, such as making improvements:

[This Article Added on Jan. 14, 2025]

Article 43(Criteria for imposition of administrative fines) #

The criteria for imposition of administrative fines under Article 51 (1) of the Act shall be as specified in Appendix 4.