CHAPTER I GENERAL PROVISIONS
Article 1(Purpose) #
The purpose of this Act is to contribute to the development of the national economy by establishing a sustainable ecosystem for the future automobile parts industry and stabilizing the domestic supply chain for future automobile parts, based on a strong competitiveness of the future automobile parts industry and flexible transition.
Article 2(Definitions) #
The terms used in this Act are defined as follows: <Amended on Oct. 1, 2025>
1. The term "future automobile" means a motor vehicle (including a motor vehicle defined in subparagraph 1 of Article 2 of the Motor Vehicle Management Act and construction machinery defined in Article 2(1)1 of the Construction Machinery Management Act; hereinafter the same shall apply) equipped with, or using, future automobile parts defined in subparagraph 3, among the following, which is publicly notified by the Minister of Trade, Industry and Energy:
a. An environment-friendly motor vehicle defined in subparagraph 2 of Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles;
b. A motor vehicle prescribed by Decree of the Ministry of Trade, Industry and Resources, to which the future automobile technology defined in subparagraph 2 is applied, among motor vehicles other than that referred to in item a;
2. The term "future automobile technology" means any of the following publicly notified by the Minister of Trade, Industry and Resources as it is deemed to play a key role in the future growth and development of the automobile parts industry and have significant social and economic ripple effects:
a. Technology related to an environment-friendly motor vehicle defined in subparagraph 2 of Article 2 of the Act on Promotion of Development and Distribution of Environment-Friendly Motor Vehicles;
b. Technology related to autonomous driving systems defined in Article 2(1)2 of the Act on the Promotion of and Support for Commercialization of Autonomous Vehicles and cooperative autonomous driving systems defined in subparagraph 3 of that paragraph;
c. Software defined in subparagraph 1 of Article 2 of the Software Promotion Act and technology for software convergence defined in subparagraph 6 of that Article, which is applicable to automobiles;
d. Intelligent information technology defined in subparagraph 4 of Article 2 of the Framework Act on Intelligent Informatization, which is applicable to automobiles;
e. Other technologies prescribed by Decree of the Ministry of Trade, Industry and Energy, which are applicable to automobiles, among technologies for achieving carbon neutrality and for improving energy efficiency, safety and convenience;
3. The term "future automobile parts" means intermediate products used for the manufacture of automobiles, to which future automobile technology is applied;
4. The term "future automobile parts industry" means an industry related to research and development, demonstration, manufacture, production, supply, distribution, etc. of any of the following items:
a. Future automobile parts;
b. Future automobile-related devices, apparatus, or software, etc.;
c. Infrastructure, buildings, structures, etc. to support or upgrade research, development, production, manufacture, etc. of future automobile parts;
d. Services related to future automobile parts;
5. The term "future automobile parts industry ecosystem" means a system that is maintained and developed through the organic interaction of companies, institutions, and organizations that comprise the future automobile parts industry or are connected to the supply chain of future automobile parts.
Article 3(Responsibility of the State and local governments) #
(1) The State and local governments shall formulate and implement comprehensive policy measures necessary to facilitate the transition to the future automobile parts industry and to foster the relevant ecosystem.
(2) The State and local governments shall formulate a funding plan for facilitating the transition to the future automobile parts industry and fostering its ecosystem, and endeavor to secure necessary financial resources.
Article 4(Relationship to Other Statutes) #
This Act shall prevail over other statutes with respect to the facilitation of the transition to the future automobile parts industry, ecosystem development and regulatory exemptions; provided, if other statutes provide regulations that are more relaxed than the special regulatory exemptions under this Act, such statutes shall apply.
CHAPTER II FORMULATION OF MASTER PLAN FOR PROMOTION OF FUTUR
Article 5(Establishment of master plan for promoting future automobile parts industry ecosystem) #
(1) The Government shall formulate and implement a 5-year master plan to promote the ecosystem for the future automobile parts industry (hereinafter referred to as "master plan") in consultation with the heads of relevant central administrative agencies.
(2) The Minister of Trade, Industry and Energy shall formulate a master plan by integrating the sectoral plans of relevant central administrative agencies. <Amended on Oct. 1, 2025>
(3) A master plan shall include the following:
1. Basic direction-setting for the promotion of the ecosystem for the future automobile parts industry;
2. Analysis of domestic and international market conditions of future automobile parts;
3. Matters regarding improvement of technological capabilities, such as securing future automobile technology;
4. Matters regarding facilitation of and support for the transition to the future automobile parts industry;
5. Matters regarding the establishment of the foundation for the future automobile parts industry, such as demonstration tests, reliability evaluation, and performance verification;
6. Matters regarding training of technical human resources specialized in future automobile parts;
7. Matters regarding facilitation of and support for digital innovation of the future automobile parts industry;
8. Matters regarding international cooperation for the future automobile parts industry and its entry into overseas markets;
9. Matters regarding the procurement and operation of financial resources necessary to promote the future automobile parts industry ecosystem;
10. Other matters deemed necessary to promote the future automobile parts industry ecosystem.
(4) The Government shall formulate and execute an annual implementation plan to promote the ecosystem for the future automobile parts industry (hereinafter referred to as "implementation plan") in accordance with the master plan. In such cases, paragraph (2) shall apply mutatis mutandis.
(5) Except as provided in paragraphs (1) through (4), matters necessary for the formulation and execution of a master plan and an implementation plan shall be prescribed by Presidential Decree.
Article 6(Strategy meeting for promotion of future automobile parts industry ecosystem) #
(1) In order to deliberate on and coordinate the following matters related to the promotion of the ecosystem of the future automobile parts industry, a strategy meeting for promoting the ecosystem of the future automobile parts industry (hereinafter referred to as "Strategy Meeting") shall be established under the jurisdiction of the Minister of Trade, Industry and Energy: <Amended on Oct. 1, 2025>
1. Matters regarding the formulation, execution, and evaluation of a master plan and an implementation plan;
2. Matters regarding the scope of future automobiles defined in subparagraph 1 of Article 2;
3. Matters regarding the scope of future automobile technology defined in subparagraph 2 of Article 2;
4. Matters regarding the designation and management of companies specialized in future automobile parts under Article 13;
5. Matters regarding review of applications for designation of complexes, districts, areas, etc. under Article 20(3);
6. Matters regarding the introduction or change of systems related to the promotion of and support for the transition to the future automobile parts industry;
7. Matters regarding identification of cooperation models between companies related to future automobile parts;
8. Other matters deemed by the chairperson to be necessary for promoting the future automobile parts industry ecosystem.
(2) The Strategy Meeting shall be composed of not more than 20 members, including one chairperson.
(3) The Minister of Trade, Industry and Energy shall serve as the chairperson of the Strategy Meeting and the following persons as its members: <Amended on Oct. 1, 2025>
1. A vice minister or a vice-ministerial level public official of a relevant central administrative agency prescribed by Presidential Decree (where there is more than one vice minister or vice-ministerial level public official, referring to the person designated by the head of the relevant central administrative agency);
2. A person commissioned by the Minister of Trade, Industry and Resources, from among persons with extensive knowledge of and experience in the future automobile parts industry.
(4) The term of office of a member shall be 2 years; provided, the term of office of a member who is a public official shall be the period during which he or she holds the relevant position.
(5) Other matters necessary for the organization, operation, etc. of the Strategy Meeting shall be prescribed by Presidential Decree.
Article 7(Fact-finding survey) #
(1) In order to efficiently formulate and execute a master plan and an implementation plan, the Minister of Trade, Industry and Energy may conduct a fact-finding survey on the current status, supply chain structure, trends in technology, market prospects, etc. related to the future automobile parts industry and publish the results thereof. <Amended on Oct. 1, 2025>
(2) The Minister of Trade, Industry and Energy may request the following persons to provide necessary cooperation, such as submission of data or statement of opinions. In such cases, the persons so requested shall comply, unless there is a compelling reason not to do so: <Amended on Oct. 1, 2025>
1. The head of a relevant central administrative agency;
2. The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor");
3. The head of a public institution under Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institution");
4. A person intending to manufacture, sell, provide, etc. any of the products falling under the items of subparagraph 4 of Article 2 (hereinafter referred to as "future automobile parts company");
5. Other institutions or organizations related to future automobile parts technology and future automobile parts industry.
(3) Other matters necessary for the scope and method of a fact-finding survey shall be prescribed by Presidential Decree.
Article 8(Preparation of statistics) #
(1) The Minister of Trade, Industry and Energy may prepare and manage statistics on the future automobile parts industry after conducting a fact-finding survey under Article 7, and provide such statistics if requested by central administrative agencies, etc. <Amended on Oct. 1, 2025>
(2) The Statistics Act shall apply mutatis mutandis to the preparation of statistics under paragraph (1).
CHAPTER III DEVELOPMENT AND COMMERCIALIZATION OF FUTURE AUTO
Article 9(Formulation of policy measures for future automobile technology development) #
(1) The Minister of Trade, Industry and Energy may formulate policy measures for technology development, including the following matters, in order to secure technological capabilities for future automobiles and strengthen competitiveness thereof: <Amended on Oct. 1, 2025>
1. Key technology development areas and goals;
2. Schedule and methods of promotion of technology development;
3. Matters regarding the creation of a foundation for the efficient promotion of technology development projects;
4. Other matters necessary for technology development.
(2) In order to facilitate the development of future automobile technology, the Minister of Trade, Industry and Energy may implement the following projects: <Amended on Oct. 1, 2025>
1. Research and development of future automobile technology;
2. Strategic survey and analysis of intellectual property rights, such as domestic and international patents, for the efficient technology development;
3. Joint research and development among enterprises, universities, research institutes, and relevant institutions and organizations;
4. Other projects prescribed by Presidential Decree to strengthen the competitiveness of future automobile technology.
(3) The Minister of Trade, Industry and Energy may give preferential treatment to the following enterprises in implementing the projects under paragraph (2): <Amended on Oct. 1, 2025>
1. Companies specialized in future automobile parts under Article 13;
2. Small and medium enterprises and middle-standing enterprises (referring to small and medium enterprises defined in Article 2(1) of the Framework Act on Small and Medium Enterprises and middle-standing enterprises 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; hereinafter the same shall apply) that conduct research and development jointly with other enterprises;
3. Companies conducting a demonstration project to test and operate technologies based on established theories by manufacturing and producing prototypes;
4. Other companies participating in projects prescribed by Presidential Decree, which are deemed necessary to strengthen the competitiveness of the future automobile parts industry.
(4) Matters necessary for the scope, methods, and procedures of support for projects under paragraphs (2) and (3) shall be prescribed by Presidential Decree.
Article 10(Facilitation of technology transfer and commercialization) #
(1) The Government may formulate policy measures for administrative, technical, and financial support to facilitate the transfer, sharing, and utilization of intellectual property and technology owned by the following institutions, and the commercialization of the outcomes of technological development:
1. Government-funded research institutes under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes or the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes (hereinafter referred to as "government-funded research institute");
2. Research institutes specializing in manufacturing technology under the Specific Research Institutes Support Act (hereinafter referred to as "research institute specializing in manufacturing technology");
3. Research institutes specialized in manufacturing technology under the Industrial Technology Innovation Promotion Act (hereinafter referred to as "research institute specializing in manufacturing technology");
4. Universities, colleges, etc. that hold research outcomes in the field of future automobile parts through the implementation of national research and development projects;
5. Other institutions related to future automobile research and technology development prescribed by Presidential Decree.
(2) The Minister of Trade, Industry and Resources may provide the following support for technology transfer and commercialization: <Amended on Oct. 1, 2025>
1. Financial support, such as contributions, investments, and loans necessary for the manufacture of prototypes and capital investment;
2. Support for applying for, registering, transferring and utilizing intellectual property rights (including matters related to the entrustment of such business affairs and the payment of associated costs);
3. Other forms of support prescribed by Presidential Decree to facilitate technology transfer and commercialization.
(3) Matters necessary for the facilitation of technology transfer and commercialization pursuant to paragraphs (1) and (2) shall be governed by the Technology Transfer and Commercialization Promotion Act.
Article 11(Standardization projects) #
(1) The Minister of Trade, Industry and Energy may promote research on the standardization of the future automobile parts industry and policy measures for the dissemination thereof. <Amended on Oct. 1, 2025>
(2) The Minister of Trade, Industry and Energy may provide support necessary for the international standardization of future automobile parts technology developed or under development in the Republic of Korea. <Amended on Oct. 1, 2025>
Article 12(Certification of future automobile parts) #
(1) Future automobile parts companies may obtain certification under Article 15 or 16 of the Industrial Standardization Act.
(2) The Minister of Trade, Industry and Energy shall establish and implement standards necessary for certification under paragraph (1). <Amended on Oct. 1, 2025>
(3) The Minister of Trade, Industry and Energy may partially subsidize expenses incurred in certification under paragraph (1) or may provide administrative support, etc. to certification institutions designated under Article 13 of the Industrial Standardization Act to the extent necessary for the purpose of designation, as prescribed by Decree of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>
(4) Except as provided in this Act, the Industrial Standardization Act shall apply to the certification of equipment, devices, or services related to future automobile parts.
Article 13(Designation of and support for companies specialized in future automobile parts) #
(1) The Minister of Trade, Industry and Energy may designate and support companies that meet all of the following requirements as companies specialized in future automobile parts in order to promote the development of the future automobile parts industry ecosystem: <Amended on Oct. 1, 2025>
1. It shall fall under any of the following:
a. The proportion of future automobile parts sales to annual gross sales is equal to or greater than the threshold prescribed by Presidential Decree;
b. The ratio of the sum of research and development expenses related to future automobile technology to annual gross sales is equal to or greater than the threshold prescribed by Presidential Decree;
2. It shall not belong to an enterprise group subject to limitations on cross shareholding pursuant to Article 31(1) of the Monopoly Regulation and Fair Trade Act;
3. It shall meet other requirements prescribed by Presidential Decree, such as technological levels and management capabilities.
(2) The Minister of Trade, Industry and Energy may designate a dedicated institution for the efficient designation of and support for companies specialized in future automobile parts, as prescribed by Presidential Decree. <Amended on Oct. 1, 2025>
(3) The Minister of Trade, Industry and Energy may contribute or subsidize expenses incurred by a dedicated institution under paragraph (2) in performing its duties. <Amended on Oct. 1, 2025>
(4) Other details regarding the requirements and procedures for the designation of companies specialized in future automobile parts, details of support, etc. shall be prescribed by Presidential Decree.
Article 14(Future Automobile Parts Industry Council) #
(1) The Minister of Trade, Industry and Energy may organize and operate a council composed of the following institutions to efficiently support the transition to the future automobile parts industry: <Amended on Oct. 1, 2025>
1. Government-funded research institutes;
2. Specific research institutes;
3. Research institutes specializing in manufacturing technology;
4. The Korea Trade-Investment Promotion Agency established under the Korea Trade-Investment Promotion Agency Act;
5. The Korea Trade Insurance Corporation under the Trade Insurance Act;
6. Public interest corporations established under the Act on the Establishment and Operation of Public Interest Corporations;
7. The Korea SMEs and Startups Agency under the Small and Medium Enterprises Promotion Act;
8. The Korea Technology and Information Promotion Agency for SMEs established under the Act on the Promotion of Technology Innovation of Small and Medium Enterprises;
9. Other institutions or organizations designated by the Minister of Trade, Industry and Energy in consultation with the heads of the relevant central administrative agencies, from among the institutions or organizations necessary to support the transition to the future automobile parts industry.
(2) Future automobile parts companies may request the following support from the Council under paragraph (1) for the transition to the future automobile parts industry:
1. Dispatch and arrangement of experts by field, such as technology, human resources, finance, business management, and location;
2. Use of research equipment and facilities owned by the institutions listed in the subparagraphs of paragraph (1) and provision of information;
3. Technical guidance and advice;
4. Management diagnosis and business reorganization consulting;
5. Overseas expansion and investment attraction;
6. Other matters prescribed by Presidential Decree as necessary for the transition to the future automobile parts industry.
(3) Other matters necessary for the composition and operation of the Council under paragraph (1), support for future automobile parts companies under paragraph (2), etc. shall be prescribed by Presidential Decree.
Article 15(Special cases regarding support for national research and development) #
In accordance with Article 13 of the National Research and Development Innovation, the head of a central administrative agency may, in consultation with the Minister of Science and ICT, set different support standards and cash contribution ratio for Government contributions to research and development institutes participating in technology development projects related to the future automobile parts industry; provided, in cases of urgency due to a social or economic crisis, the support standards shall be raised or the cash contribution ratio shall be lowered, and such change and grounds therefor shall be notified to the Minister of Science and ICT without delay.
CHAPTER IV CREATION OF FOUNDATION FOR PROMOTION OF FUTURE AU
Article 16(Facilitation of digital innovation) #
(1) The Minister of Trade, Industry and Energy may perform the following to facilitate digital innovation in the future automobile parts industry: <Amended on Oct. 1, 2025; Dec. 30, 2025>
1. Support for the facilitation of convergence of future automobile parts and software;
2. Support for the commercialization of products, services, etc. involving convergence of future automobile parts and software;
3. Support for the sharing and joint utilization of data generated through the convergence of future automotive parts and software;
4. Support for the facilitation of digital transformation for the entire production process, including manufacturing, distribution and logistics for future automobile parts;
5. Support for inter-company collaboration in conjunction with the collaboration support center for industrial digitalization and artificial intelligence utilization established under Article 19 of the Industrial Digital Conversion and Artificial Intelligence Utilization Promotion Act;
6. Other matters prescribed by Presidential Decree as necessary for the facilitation of digital transformation of the future automobile parts industry.
(2) The head of the relevant central administrative agency may preferentially support the following projects in order to facilitate digital innovation by future automobile parts companies: <Amended on Dec. 30, 2025>
1. Leading projects under Article 16 of the Industrial Digital Transformation and Artificial Intelligence Promotion Act;
2. Support projects under Article 8(1) of the Act on Facilitation of Smart Manufacturing Innovation of Small and Medium Enterprises.
(3) Other matters necessary for the facilitation of, and support for, digital innovation shall be prescribed by Presidential Decree.
Article 17(Identification of and support for cooperation models) #
(1) The Government may provide support for the creation and identification of cooperation models defined in subparagraph 9 of Article 2 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Parts, and Equipment Industry, in order to facilitate the transition to future automobile parts companies.
(2) The Government may conduct fact-finding surveys and demand surveys on future automobile technology, items, etc. in order to support the creation and identification of cooperation models under paragraph (1).
(3) Other matters necessary for the creation, identification, support, etc. of cooperation models, fact-finding surveys and demand surveys shall be prescribed by Presidential Decree.
Article 18(Training of specialized technical human resources) #
(1) The Government may promote the following projects to identify and foster specialized technical human resources necessary for developing future automobile technology and facilitating the transition to the future automobile parts industry:
1. Projects for training human resources through educational institutions;
2. On-site training programs for future automobile parts companies;
3. Projects for developing the capabilities of employees of future automobile parts companies;
4. Projects for the establishment of curriculum linked to the demand of future automobile parts companies and employment linkage programs;
5. Projects for expanding research facilities and equipment necessary for the training of specialized technical human resources for future automobiles;
6. Projects for training human resources through industry-academia cooperation;
7. Other projects for training specialized technical human resources prescribed by Presidential Decree.
(2) The Government may request relevant administrative agencies, research institutes, universities, colleges, enterprises, etc. to submit necessary data and provide cooperation in connection with the projects under paragraph (1).
(3) The Government may implement projects for training specialized technical human resources through education and training institutions designated pursuant to Article 43 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Parts, and Equipment Industry, in order to train specialized technical human resources under paragraph (1).
Article 19(Support for establishment of vocational education and training courses by agreement) #
(1) The Government may support the establishment and operation of departments or faculties by agreement prescribed in Article 8(1) of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act (hereinafter referred to as "agreed department or faculty") in industrial educational institutions defined in subparagraph 2 of Article 2 of that Act (hereinafter referred to as "industrial educational institution"), in order to train human resources tailored to each field to meet the needs of the future automobile parts industry and relevant companies.
(2) The Government may survey demand for the establishment of agreed departments or faculties each year pursuant to Article 12(2) of the Industrial Development Act and provide support under paragraph (1) based on the findings thereof.
(3) The Government may provide subsidies to the heads of industrial educational institutions that establish or operate agreed departments or faculties related to the future automobile parts industry to help cover part of the industrial entities' charges and student tuitions, as prescribed by Presidential Decree.
(4) Where the head of an industrial educational institution that receives support under paragraph (3) establishes, operates, or abolishes an agreed department or faculty, he or she shall report thereon to the Minister of Education pursuant to Article 8(2) or (3) of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act; and the Minister of Trade, Industry and Energy may request the Minister of Education to provide relevant materials, if necessary. <Amended on Oct. 1, 2025>
Article 20(Designation of specialized complex for future automobile parts industry) #
(1) A Mayor/Do Governor may file with the Minister of Trade, Industry and Energy an application for designation of the following complexes, districts, areas, etc. in connection with the future automobile parts industry: <Amended on Oct. 1, 2025>
1. A specialized complex for materials, components, and equipment prescribed in Article 45 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industry;
2. High-tech investment zones under Article 22-6 of the Industrial Cluster Development and Factory Establishment Act;
3. Other complexes, districts, areas, etc. related to the future automobile parts industry prescribed by Presidential Decree.
(2) If the Minister of Trade, Industry and Energy deems that designation is required after review of an application filed under paragraph (1), he or she may proceed with the designation, as prescribed by relevant statutes or regulations. <Amended on Oct. 1, 2025>
(3) If the Minister of Trade, Industry and Energy deems that designation is required after review of an application for designation of a complex, district, area, etc. under paragraph (1)3, he or she may request the head of a relevant administrative agency to cooperate in the designation of a complex, district, area, etc. <Amended on Oct. 1, 2025>
(4) The head of the relevant administrative agency in receipt of a request under paragraph (3) shall take it into positive consideration.
(5) The Minister of Trade, Industry and Energy may conduct the following projects in a complex, district, area, etc. related to the future automobile parts industry designated pursuant to paragraphs (1) through (4) (hereinafter referred to as "specialized complex") and may grant a subsidy to help cover the associated expenses: <Amended on Oct. 1, 2025>
1. R&D activities of universities, research institutes, and companies in a specialized complex;
2. Commercialization of R&D outcomes of universities, research institutes, and companies in a specialized complex;
3. Facilitation of start-up and attraction of future automobile parts companies;
4. Promotion of exchanges and cooperation among universities, research institutes, and companies in a specialized complex;
5. Establishment of a foundation necessary for strengthening the competitiveness of the future automobile parts industry;
6. Establishment of demonstration facilities and performance verification basis for future automobile parts;
7. Financing for investment to strengthen the competitiveness of the future automobile parts industry or arranging financing therefor;
8. Partial subsidization for the interest on the loan, if the purpose of the loan is to cover investment to strengthen the competitiveness of the future automobile parts industry;
9. Other projects necessary for the development of the area where a specialized complex is located.
(6) The State and local governments may subsidize expenses incurred in creating sites, reducing or exempting rents, and installing various convenience facilities, such as medical facilities, educational facilities, housing, etc., for universities, research institutes, and enterprises scheduled to move into a specialized complex.
(7) Other matters necessary for the designation of specialized complexes and support therefor shall be prescribed by Presidential Decree.
Article 21(Opening and utilization of demonstration base for future automobile parts) #
(1) In order to facilitate demonstration tests, reliability evaluation, performance verification, etc. of products, services, etc. to which future automobile parts and future automobile technology are applied, the Minister of Trade, Industry and Energy may allow the demonstration and production-related facilities held by the following institutions to be opened to, and be used by, future automobile parts companies: <Amended on Oct. 1, 2025>
1. Public institutions;
2. Government-funded research institutes;
3. Research institutes specializing in manufacturing technology;
4. Other institutions prescribed by Presidential Decree, which are equipped with facilities related to demonstration and production of future automobile parts, etc.
(2) The institutions listed in paragraph (1) shall submit to the Minister of Trade, Industry and Energy a report on their performance in the opening of demonstration and production-related facilities for utilization. <Amended on Oct. 1, 2025>
(3) Upon evaluation of the performance report submitted pursuant to paragraph (2), the Minister of Trade, Industry and Energy may notify the following persons of the results thereof: <Amended on Oct. 1, 2025>
1. Vice Minister of Economy and Finance;
2. The Minister of Science and ICT;
3. The Chairperson of the Research Council under Article 18 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;
4. The Chairperson of the Research Council under Article 18 of the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes.
(4) Matters necessary for the opening, utilization, etc. of demonstration and production-related facilities under paragraphs (1) through (3) shall be prescribed by Presidential Decree.
Article 22(Facilitation of and support for demonstration of future automobile parts) #
(1) The Minister of Trade, Industry and Energy may promote projects, including the following matters, in order to facilitate demonstration tests, reliability evaluation, performance verification, etc. of products, services, etc. to which future automobile parts and future automobile technology are applied: <Amended on Oct. 1, 2025>
1. Establishment and operation of equipment and facilities necessary for demonstration tests, reliability evaluation, performance verification, etc.;
2. Support for companies that provide facilities or equipment necessary for demonstration tests, reliability evaluation, performance verification, etc.;
3. Encouragement of corporate participation, by easing the financial burden ratio requirement or other means;
4. Other matters prescribed by Presidential Decree to facilitate demonstration tests, reliability evaluation, performance verification, etc.
(2) Where it is deemed necessary by the Minister of Trade, Industry and Energy for the facilitation of the transition to the future automobile parts industry, a subsidy may be granted to cover all or part of the expenses incurred by future automobile parts companies in joint utilization of research facilities, equipment, etc. held by universities, research institutes, public institutions, etc. <Amended on Oct. 1, 2025>
(3) Other matters necessary for the promotion of projects under paragraph (1) and support under paragraph (2) shall be prescribed by Presidential Decree.
Article 23(Establishment and operation of data platform) #
(1) The Minister of Trade, Industry and Energy may establish and operate a data platform for future automobile parts (hereinafter referred to as "platform") to support the effective utilization of data related to the ecosystem of the future automobile parts industry. <Amended on Oct. 1, 2025>
(2) The Minister of Trade, Industry and Energy may provide the following information through the platform: <Amended on Oct. 1, 2025>
1. The current status of domestic and overseas supply chains of future automobile parts;
2. Information on the use of research equipment and facilities related to future automobile parts;
3. Information on support for the transition to the future automobile parts industry;
4. Information on technology trends, standards, patents, etc. related to the future automobile parts industry;
5. Information on institutions, companies, etc. that desire to cooperate with future automobile parts companies;
6. Other matters prescribed by Presidential Decree to promote the ecosystem of the future automobile parts industry.
(3) The Minister of Trade, Industry and Energy may provide functions necessary for the distribution and transaction of data related to the future automobile parts industry by utilizing the platform. <Amended on Oct. 1, 2025>
(4) The Minister of Trade, Industry and Energy may request relevant administrative agencies, local governments, public institutions, or other institutions prescribed by Presidential Decree to submit data necessary for establishing and operating the platform, as prescribed by Decree of the Ministry of Trade, Industry and Energy. In such cases, the person so requested shall comply, unless there is a compelling reason not to do so. <Amended on Oct. 1, 2025>
(5) Other matters necessary for the establishment and operation of the platform shall be prescribed by Presidential Decree.
Article 24(International cooperation) #
(1) The Government may support the following projects to facilitate international cooperation and overseas expansion in relation to future automobile technology and the future automobile parts industry:
1. Surveys and research for international cooperation and overseas expansion;
2. Exchanges of specialized human resources and information;
3. Establishment of a system for cooperation with foreign governments, institutions, companies, etc. whose supply chains are linked to future automobile parts;
4. Facilitation of the introduction of overseas technology and joint technology development;
5. Support for developing and entering overseas markets;
6. Other projects prescribed by Presidential Decree to facilitate international cooperation and overseas expansion.
(2) The Minister of Trade, Industry and Energy may provide a subsidy to a person who conducts the projects listed in the subparagraphs of paragraph (1) to help cover all or part of the associated expenses. <Amended on Oct. 1, 2025>
Article 25(Pilot projects) #
The Government and local governments may conduct pilot projects necessary to create demand for the future automobile parts industry.
CHAPTER V SPECIAL CASES REGARDING TRANSITION FACILITATION AN
Article 26(Special cases regarding transition to future automobile parts industry) #
(1) Cash grants under Article 14-2 of the Foreign Investment Promotion Act may be provided, if a foreigner (referring to a foreigner defined in Article 2(1)1 of the Foreign Investment Promotion Act) makes foreign investment (referring to foreign investment defined in Article 2(1)4 of the Foreign Investment Promotion Act) for the transition of factory facilities for manufacturing and assembling automobiles and automobile parts to those for manufacturing and assembling products to which future automobile technology is applied, such as new growth engine industry technology under Article 121-2(1)1 of the Act on Restriction of Special Cases Concerning Taxation or advanced technology and products under Article 5(1) of the Industrial Development Act.
(2) The requirements for financial support under Article 24 of the Special Act on Local Autonomy and Decentralization, and Restructuring of Local Administrative Systems may differ, if a motor vehicle manufacturer, etc. referred to in Article 30(3) of the Motor Vehicle Management Act or a parts manufacturer, etc. referred to in Article 30-2(1) of that Act converts factory facilities for manufacturing or assembling automobiles or automobile parts into those for manufacturing or assembling future automobile parts or products equipped with, or using, future automobile parts (including cases where there is no new or expanded factory facilities and no increase in employment).
(3) Where an institution operating in a specialized complex files an application for a corporate restructuring plan pursuant to Article 9 of the Special Act on the Corporate Revitalization, the head of the competent authority defined in subparagraph 5 of Article 2 of that Act may give priority to such application in processing.
Article 27(Special cases regarding assistance to Korean off-shore enterprises in repatriation) #
Notwithstanding Article 7 of the Act on Assistance to Korean Off-shore Enterprises in Repatriation, the Minister of Trade, Industry and Energy may select an enterprise running a factory facility for manufacturing or assembling future automobile parts or products equipped with or used for future automobile parts which intends to return to the Republic of Korea as a repatriating enterprise eligible for assistance without liquidation, transfer, or downsizing of its overseas place of business. <Amended on Oct. 1, 2025>
Article 28(Special cases regarding transition of small and medium enterprises and middle-standing enterprises to future automobile parts industry) #
(1) The Government may formulate and implement policy measures necessary to support small and medium enterprises and middle-standing enterprises seeking transition to the future automobile parts industry or corporate restructuring.
(2) The requirements for business conversion under subparagraph 2 of Article 2 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises and the scope of corporate restructuring under Article 4 of the Special Act on the Corporate Revitalization may be determined differently for small and medium enterprises and middle-standing enterprises seeking transition to the future automobile parts industry or corporate restructuring, as prescribed by Presidential Decree. In such cases, Articles 12 through 18, 18-2, 19, and 20 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises, and Articles 15 through 19, and 21 through 24 of the Special Act on the Corporate Revitalization shall not apply.
(3) Small and medium enterprises and middle-standing enterprises that fall under the requirements for business conversion or corporate restructuring under paragraph (2) may submit a business conversion plan under Article 8 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises or apply for approval of a business restructuring plan under Article 9 of the Special Act on the Corporate Revitalization, as they are deemed to fall under the business conversion requirements on under subparagraph 2 of Article 2 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises or corporate restructuring scope under Article 4 of the Special Act on the Corporate Revitalization.
(4) The Government may provide the following support to small and medium enterprises and middle-standing enterprises seeking transition to the future automobile parts industry or corporate restructuring:
1. Preliminary diagnosis and consulting;
2. Provision of information on market demand, sales channels, supply chains, etc.;
3. Support for research and development;
4. Subsidization of funds, loans, or partial subsidization for interest on loans;
5. Support for commercialization of technology acquired through transition to the future automobile parts industry or corporate restructuring;
6. Support for employees of the relevant company in the development of their capabilities;
7. Other support prescribed by Presidential Decree to facilitate the transition to the future automobile parts industry or corporate restructuring.
(5) The Minister of Trade, Industry and Energy may request cooperation from the heads of relevant administrative agencies, if necessary for formulating and implementing policy measures under paragraph (1) and providing support under paragraph (4). <Amended on Oct. 1, 2025>
Article 29(Regulatory improvement related to future automobile parts) #
(1) The Government shall ease or eliminate regulations that hinder the development of the future automobile parts industry and prepare systems and regulations that are in line with changes in domestic and international environments.
(2) The Government shall collect opinions from stakeholders, experts, etc. on the regulations related to the future automobile parts industry to identify regulations requiring improvement and shall review measures for improvement.
(3) Matters necessary for the identification of regulations and review of improvement measures under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
Article 30(Application for regulatory improvement and active administration) #
(1) Future automobile parts companies may file with the Minister of Trade, Industry and Energy an application for the improvement of regulations related to the future automobile parts industry. <Amended on Oct. 1, 2025>
(2) Upon receipt of an application under paragraph (1), the Minister of Trade, Industry and Energy shall notify the head of a relevant administrative agency of the details of the application, and the head of the relevant administrative agency shall provide the Minister of Trade, Industry with the results of the review thereof, in writing, within 15 days. In such cases, the head of the relevant administrative agency shall actively process applications that do not require improvement of statutes or regulations. <Amended on Oct. 1, 2025>
(3) Where the head of the relevant administrative agency requires an applicant for regulatory improvement under paragraph (1) to supplement data in order to review whether the regulatory improvement is necessary, the period spent in such supplementation shall not be included in the period for reply specified in paragraph (2); provided, even in such cases, the head of the relevant administrative agency shall reply within 45 days, and may request an extension of the period only once by up to 30 days if it is impossible to do so.
(4) Where the Minister of Trade, Industry and Energy deems it necessary to improve regulations, although the results of review by the head of the relevant administrative agency indicate otherwise, he or she may file a request for the abolition or improvement of regulations with, or submit his or her opinions to, the Regulatory Rationalization Committee referred to in Article 23 of the Framework Act on Administrative Regulations (hereinafter referred to as the "Regulatory Rationalization Committee") under Articles 17 and 17-2 of that Act; and the Regulatory Rationalization Committee may examine the request under Article 18 of that Act. <Amended on Oct. 1, 2025; Feb. 19, 2026>
(5) The Minister of Trade, Industry and Energy shall notify the person who has applied for the regulatory improvement of the reply sent by the head of the relevant administrative agency pursuant to paragraph (2) or the measures taken under paragraph (4) by means of the information and communications networks, mail, or other means. <Amended on Oct. 1, 2025>
(6) Details necessary for an application for regulatory improvement and processing thereof under paragraphs (1) through (5) and the procedures and methods therefor shall be prescribed by Presidential Decree.
Article 31(Special cases regarding leave of absence for educational officials, etc.) #
(1) Notwithstanding Article 44(1) of the Educational Officials Act and Article 59(1) of the Private School Act, any of the following persons (hereinafter referred to as "educational officials, etc.") may take a leave of absence to work for a future automobile parts company:
1. A university faculty member (including a researcher of a research institute affiliated with a university; hereinafter the same shall apply);
2. A researcher of a government-funded, a national or public, a specific research institute (including a faculty member or a researcher under Article 15 of the Korea Advanced Institute of Science and Technology Act, Article 14 of the Gwangju Institute of Science and Technology Act, Article 12-4 of the Daegu Gyeongbuk Institute of Science and Technology Act, or Article 8 of the Ulsan National Institute of Science and Technology Act; hereinafter the same shall apply).
(2) The period of a leave of absence under paragraph (1) shall not exceed 3 years, notwithstanding Article 45 of the Educational Officials Act and Article 59(2) of the Private School Act. In such cases, the period of a leave of absence of any faculty member of a university may exceed the remaining term of his or her employment, notwithstanding Article 45(2) of the Educational Officials Act.
(3) Where educational officials, etc. take a leave of absence for 6 months or longer pursuant to paragraph (1), the relevant university, government-funded research institute, national or public research institute, or specific research institute shall be deemed to have a quota for educational officials, etc. corresponding to the number of persons taking a leave of absence from the commencement of the leave of absence to the expiry of such period.
Article 32(Special cases regarding concurrent holding of office or position by educational officials, etc.) #
(1) Educational officials, etc. may concurrently hold office or position of the representative, executive officer, or employee of a future automobile parts company with permission from the head of the agency to which he or she belongs. In such cases, permission for public officials shall be limited to cases where there is no possibility of hindering the efficiency of their performance of duties.
(2) When permission is granted by the head of the agency to which he or she belongs, it shall be deemed that permission has been granted for the concurrent holding of office or position under Article 18(1) of the Educational Officials Act or Article 6(4) of the Cooperative Research and Development Promotion Act.
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
Article 33(Delegation and entrustment of authority) #
(1) Part of the authority of a central administrative agency under this Act may be delegated to the head of an affiliated agency or the head of a local government or may be entrusted to the head of another central administrative agency, as prescribed by Presidential Decree.
(2) The head of a central administrative agency may entrust part of the business affairs under this Act to relevant agencies, corporations, or organizations, as prescribed by Presidential Decree.
Article 34(Legal fiction as public official in application of penalty provisions) #
Executive officers and employees of institutions, corporations, or organizations engaged in the business affairs entrusted pursuant to Article 33 shall be deemed public officials for the purposes of Articles 129 through 132 of the Criminal Act.