ENFORCEMENT DECREE OF THE SPECIAL ACT ON TRANSITION FACILITATION AND ECOSYSTEM DEVELOPMENT FOR FUTURE AUTOMOBILE PARTS INDUSTRY

Article 1(Purpose) #

The purpose of this Decree is to prescribe the matters mandated by the Special Act on Transition Facilitation and Ecosystem Development for Future Automobile Parts Industry and those necessary for the enforcement thereof.

Article 2(Formulation of master plan for promoting future automobile parts industry ecosystem) #

(1) The Minister of Trade, Industry and Energy shall formulate a master plan to promote the ecosystem for the future automobile parts industry (hereinafter referred to as "master plan") under Article 5(1) of the Special Act on Transition Facilitation and Ecosystem Development for Future Automobile Parts Industry (hereinafter referred to as the "Act") by December 31 of the year immediately preceding the year in which the master plan is implemented after deliberation by the strategy meeting for promoting the ecosystem of the future automobile parts industry (hereinafter referred to as the "Strategy Meeting") under Article 6(1) of the Act. <Amended on Oct. 1, 2025>

(2) The Minister of Trade, Industry and Energy shall prepare guidelines for formulating a sectoral plan in consultation with the heads of relevant central administrative agencies to efficiently formulate a sectoral plan for each relevant central administrative agency under Article 5(2) of the Act (hereinafter referred to as "sectoral plan"). <Amended on Oct. 1, 2025>

(3) The Minister of Trade, Industry and Energy shall notify the heads of relevant central administrative agencies of the guidelines for formulating a sectoral plan prepared under paragraph (2) by January 31 of the year immediately preceding the year in which the master plan is implemented. <Amended on Oct. 1, 2025>

(4) The heads of relevant central administrative agencies shall formulate a sectoral plan for fields under their jurisdiction in accordance with the guidelines for formulating a sector plan notified pursuant to paragraph (3) and submit the plan to the Minister of Trade, Industry and Energy by July 31 of the year immediately preceding the year in which the master plan is implemented. <Amended on Oct. 1, 2025>

(5) Where the Minister of Trade, Industry and Energy formulates or modifies a master plan, he or she shall publicly announce the details thereof in the Official Gazette or on the website of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 3(Formulation of implementation plan for promoting future automobile parts industry ecosystem) #

(1) The heads of relevant central administrative agencies shall formulate a sectoral implementation plan related to the business affairs under their jurisdiction in accordance with the master plan every year and submit the plan to the Minister of Trade, Industry and Energy by September 15 of each year. <Amended on Oct. 1, 2025>

(2) The Minister of Trade, Industry and Energy shall integrate sectoral implementation plans submitted pursuant to paragraph (1) and formulate an annual implementation plan to promote the ecosystem of the future automobile parts industry (hereinafter referred to as "implementation plan") by December 31 of each year after deliberation by the Strategy Meeting. <Amended on Oct. 1, 2025>

(3) If necessary to ensure that the master plan and implementation plan are aligned, the Minister of Trade, Industry and Energy may request the heads of the relevant central administrative agencies to revise, supplement, or adjust the sectoral implementation plans. <Amended on Oct. 1, 2025>

(4) The heads of the relevant central administrative agencies shall submit a performance report on sectoral implementation plans for the previous year to the Minister of Trade, Industry and Energy by the end of February of the following year. <Amended on Oct. 1, 2025>

(5) The heads of the relevant central administrative agencies shall endeavor to secure financial resources necessary for the execution of the implementation plan.

Article 4(Composition of Strategy Meeting for promoting future automobile parts industry ecosystem) #

(1) "Relevant central administrative agency prescribed by Presidential Decree" in Article 6(3)1 of the Act means the following: <Amended on Oct. 1, 2025; Dec. 30, 2025>

1. The Ministry of Economy and Finance;

2. The Ministry of Education;

3. The Ministry of the Interior and Safety;

4. The Ministry of Climate, Energy and Environment;

5. The Ministry of Employment and Labor;

6. The Ministry of Land, Infrastructure and Transport;

7. The Ministry of SMEs and Startups;

8. The Financial Services Commission;

9. The Ministry of Intellectual Property.

Article 5(Dismissal of members of Strategic Meeting) #

The Minister of Trade, Industry and Energy may dismiss a member under Article 6(3)2 of the Act in any of the following cases: <Amended on Oct. 1, 2025>

1. Where the member becomes unable to perform his or her duties due to a mental or physical weakness, etc.;

2. Where the member engages in any misconduct in relation to his or her duties;

3. Where the member is deemed unfit for office due to neglect of duties, indecent conduct or on any other grounds;

4. Where the member fails to recuse, despite falling under any subparagraph of Article 6(1);

5. Where the member expresses that it is difficult for him or her to perform the duties.

Article 6(Exclusion of, challenge to, and recusal of Strategy Meeting members) #

(1) A member of the Strategy Meeting shall be excluded from deliberation and resolution on the relevant agenda item in any of the following cases:

1. Where the member or his or her current or former spouse becomes a party to the relevant agenda item (if the party is a corporation or organization, including its executive officers; hereafter in this subparagraph and subparagraph 2, the same shall apply) or is holding any rights or duties jointly with the party to such agenda item;

2. Where the member is, or was, a relative of a party to the relevant agenda item;

3. Where the member has testified, made a statement, consulted, provided services, researched, or conducted an appraisal, with respect to the relevant agenda item;

4. Where the member or the corporation, organization, etc. to which he or she belongs is, or was, an agent of a party to the relevant agenda item;

5. Where the member is, or was, employed by a legal entity or organization, etc. to which a party to such agenda item belongs within the last 3 years.

(2) Where any of the grounds for exclusion specified in paragraph (1) exists or where the circumstances indicate that it would be difficult to expect impartial deliberation and resolution from a member of the Strategy Meeting, a party to the relevant agenda item may file with the Strategy Meeting a request for challenge to the member, and the Strategy Meeting shall make a determination thereon by resolution. In such cases, no member subject to such request for challenge shall participate in the resolution.

(3) Where a member of the Strategy Meeting falls under any of the grounds for exclusion specified in paragraph (1) or where circumstances indicate that it would be difficult for him or her to remain fair in deliberation and resolution, he or she shall recuse himself or herself from deliberation and resolution on the relevant agenda item.

Article 7(Duties of chairperson of Strategy Meeting) #

(1) The chairperson of the Strategy Meeting shall represent the Strategy Meeting and exercise overall control over its business affairs.

(2) Where the chairperson of the Strategy Meeting is unable to perform his or her duties due to inevitable circumstances, a member appointed beforehand by the chairperson shall act on his or her behalf.

Article 8(Meetings and operation of Strategy Meeting) #

(1) The chairperson of the Strategy Meeting shall convene and preside over meetings thereof.

(2) A majority of the members of the Strategy Meeting shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.

(3) A member subject to exclusion, challenge, or recusal with respect to deliberation or resolution by the Strategy Meeting under Article 6 shall not be included in the calculation of the number of registered members under paragraph (2).

(4) Where the Strategy Meeting is unable to convene a meeting due to time constraints or other unavoidable circumstances, it may adopt a resolution in writing.

(5) The Strategy Meeting may request relevant administrative agencies, organizations, etc. to submit data or opinions, or invite relevant experts, interested persons, etc. to its meeting to hear their opinions.

(6) An executive secretary shall be appointed to handle the business affairs of the Strategy Meeting, who shall be appointed by the chairperson of the Strategy Meeting from among public officials belonging to the Senior Executive Service of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(7) Allowances, travel expenses, and other necessary expenses may be paid, within budgetary limits, to the members, interested persons, etc. who attend a meeting of the Strategy Meeting; provided, they shall not be paid to a public official who has attended its meeting in direct connection with his or her duties.

(8) Except as provided in paragraphs (1) through (7), details necessary for the operation of the Strategy Meeting shall be determined by its chairperson following resolution by the Strategy Meeting.

Article 9(Fact-finding survey) #

(1) The Minister of Trade, Industry and Energy may conduct a fact-finding survey on the following matters under Article 7(1) of the Act: <Amended on Oct. 1, 2025>

1. Function-specific supply and demand status of future automobile parts companies (hereinafter referred to as "future automobile parts companies") under Article 7(2)4 of the Act;

2. Domestic and international market status of the future automobile parts industry;

3. Prospects for the future automobile parts industry;

4. Current status and trends of future automobile technology;

5. Supply chain structure of future automobiles;

6. Investment status of future automobile parts companies;

7. R&D and IPR status of future automobile parts companies;

8. Other matters necessary for the formulation and implementation of a master plan and an implementation plan.

(2) A fact-finding survey under paragraph (1) shall be conducted in the form of a field survey, written survey, literature survey and others, and may also be conducted by electronic means such as by information and telecommunications networks or email.

(3) If necessary for conducting a fact-finding survey under paragraph (1), the Minister of Trade, Industry and Energy may seek advice from, or entrust survey and research to, research institutes or organizations equipped with expertise and human resources in the future automobile parts industry or relevant experts. <Amended on Oct. 1, 2025>

Article 10(Future automobile technology development promotion projects) #

(1) "Projects prescribed by Presidential Decree" in Article 9(2)4 of the Act means the following: <Amended on Oct. 1, 2025>

1. Research on future automobile technology levels;

2. Evaluation of developed future automobile technology;

3. Commercialization of developed future automobile technology, including technology cooperation and transfer;

4. Smooth distribution of future automobile technology information;

5. Financial support, such as loans and guarantees, for the promotion of research and development of future automobile technology, commercialization thereof, etc.;

6. Other projects deemed necessary by Minister of Trade, Industry and Energy to strengthen the technological competitiveness of future automobiles.

(2) "Projects prescribed by Presidential Decree" in Article 9(3)4 of the Act means any of the following: <Amended on Oct. 1, 2025>

1. Joint research and development projects under Article 9(2)3 of the Act;

2. Projects to identify and foster specialized technical human resources under the subparagraphs of Article 18(1) of the Act;

3. Projects to facilitate demonstration tests, reliability evaluation, performance verification, etc. under Article 22(1) of the Act;

4. Other projects deemed necessary by Minister of Trade, Industry and Resources to secure technology prowess of future automobiles and strengthen the competitiveness of the future automobile parts industry.

(3) Where intending to implement a project under Article 9(2) of the Act, the Minister of Trade, Industry and Energy shall formulate a detailed action plan, including the procedures for the project and details of preferential treatment to enterprises under Article 9(3) of the Act, and shall publicly announce such plan on the website of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(4) Where intending to implement an individual project in accordance with the detailed action plan formulated under paragraph (3), the Minister of Trade, Industry and Energy shall enter into an agreement that includes the following matters with a person who implements the relevant project: <Amended on Oct. 1, 2025>

1. Project tasks;

2. A person in charge of the project;

3. Matters regarding the utilization of project outcomes, etc.;

4. Matters regarding the settlement of project expenses;

5. Matters regarding modifications of the agreement.

(5) The Minister of Trade, Industry and Energy may provide administrative, technical, and financial support necessary for companies that have entered into an agreement pursuant to paragraph (4). <Amended on Oct. 1, 2025>

(6) A company seeking preferential treatment pursuant to Article 9(3) of the Act shall submit to the Minister of Trade, Industry and Energy data proving that it falls under any subparagraph of that paragraph. <Amended on Oct. 1, 2025>

(7) Except as provided in paragraphs (1) through (6), details necessary for preferential treatment and other support to companies under the subparagraphs of Article 9(3) of the Act shall be determined and publicly notified by the Minister of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 11(Facilitation of technology transfer and commercialization) #

(1) "Institutions related to future automobile research and technology development prescribed by Presidential Decree" in Article 10(1)5 of the Act means any of the following: <Amended on Oct. 1, 2025>

1. National or public research institutes;

2. Business-affiliated research institutes recognized under Article 7 (1) of the Act on Support for Research and Development of Business-Affiliated Research Institutes;

3. Industrial technology research cooperatives under Article 2 of the Industrial Technology Research Cooperatives Support Act;

4. Foreign research institutes with research facilities in the field of future automobiles (limited to foreign research institutes that conduct research and development jointly with domestic institutions, organizations, or companies);

5. Research institutes established under the Civil Act for the purpose of developing technology in the field of future automobiles, which intend to transfer, share and utilize technology and commercialize the technology development outcomes;

6. Non-profit corporations whose main purpose of business is technology transfer and commercialization, as designated by the Minister of Trade, Industry and Energy.

(2) "Support prescribed by Presidential Decree" in Article 10(2)3 of the Act means the following:

1. Support necessary for technology transfer and commercialization, including human resources, information, facilities, technical guidance, etc.;

2. Consultation on technology transfer and commercialization-related laws, taxes, accounting, etc.;

3. Preferential purchase of products produced through technology transfer and commercialization;

4. Granting a right to use research equipment, facilities, prototypes, etc. used for research and development or produced through research and development, or arranging such right;

5. Public relations on products produced through technology transfer and commercialization.

Article 12(Requirements and procedures for designation of companies specialized in future automobile parts) #

(1) "Threshold prescribed by Presidential Decree" in Article 13(1)1a of the Act means 50/100.

(2) "Threshold prescribed by Presidential Decree" in Article 13(1)1b of the Act means 3/100.

(3) The annual gross sales and research and development expenses referred to in Article 13(1)1a and b of the Act shall be based on the gross sales and research and development expenses for the 4 quarters immediately preceding the quarter in which an application for designation is filed under paragraph (5), respectively.

(4) "Requirements prescribed by Presidential Decree, such as technological levels and management capabilities" in Article 13(1)3 of the Act means the requirements determined and publicly notified by the Minister of Trade, Industry and Energy with respect to the ratio of outstanding technical human resources related to the future automobile parts industry, the status of a department dedicated to patent and R&D, the debt ratio, whether any sanctions are imposed for an act that undermines the soundness of public finance, etc. <Amended on Oct. 1, 2025>

(5) A person intending to be designated as a company specialized in future automobile parts under Article 13(1) of the Act shall file an application with the Minister of Trade, Industry and Energy, as prescribed by Decree of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(6) Upon receipt of an application for designation under paragraph (5), the Minister of Trade, Industry and Energy shall examine whether all the requirements under the subparagraphs of Article 13(1) of the Act are met and may designate a company that meets all the requirements as a company specialized in future automobile parts (hereinafter referred to as "future automobile parts specialized company"). <Amended on Oct. 1, 2025>

(7) Upon designation of a future motor automobile parts company pursuant to paragraph (6), the Minister of Trade, Industry and Energy shall issue a certificate of designation prescribed by Decree of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(8) The designation of a future automobile parts specialized company under paragraph (6) shall be valid for 5 years from the date of designation.

(9) Except as provided in paragraphs (1) through (8), matters necessary for the designation, etc. of a future automobile parts specialized company shall be prescribed by Decree of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 13(Support for future automobile parts specialized companies) #

(1) Pursuant to Article 13(1) of the Act, the Minister of Trade, Industry and Energy may provide future automobile parts specialized companies with the following support: <Amended on Oct. 1, 2025>

1. Building or identifying cooperation models under subparagraph 9 of Article 2 of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries (hereinafter referred to as "cooperation model");

2. Arranging relocation to a specialized complex under Article 20(5) of the Act (hereinafter referred to as "specialized complex");

3. Preferential treatment in selection evaluation under the proviso of Article 10(2) of the National Research and Development Innovation Act for future automobile technology;

4. Transfer and commercialization of developed future automobile technology;

5. Attraction of foreign investment, international technological cooperation, and overseas expansion;

6. Protection of future automobile technology by intellectual property rights, such as domestic and foreign patent applications therefor;

7. Other matters deemed necessary by the Minister of Trade, Industry and Energy to strengthen the technological competitiveness of the future automobile parts industry.

(2) Where an institution or organization falling under any subparagraph of Article 14(1) of the Act is equipped with an organization and human resources dedicated to the designation of and support for future automobile parts specialized companies and files an application for designation as a dedicated institution, the Minister of Trade, Industry and Energy may designate the institution or organization as a dedicated institution under Article 13(2) of the Act. <Amended on Oct. 1, 2025>

(3) Except as provided in paragraph (2), details necessary for the designation, operation, etc. of a dedicated institution under Article 13(2) of the Act shall be determined and publicly notified by the Minister of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 14(Future Automobile Parts Industry Council) #

(1) A council organized to efficiently support the transition to the future automobile parts industry under Article 14(1) of the Act (hereinafter referred to as "Council") shall consult on the matters regarding the following:

1. Support under the subparagraphs of Article 14(2) of the Act;

2. Development of future automobile technology;

3. Regulatory improvement necessary for promoting the transition to the future automobile parts industry;

4. Establishment of cooperative relationships among potential buyers and suppliers of future automobile parts;

5. Joint research and development of future automobile parts among the members of the Council or between the Council members and enterprises, universities, research institutes, relevant institutions and organizations;

6. Joint utilization of research facilities, equipment, etc. among the members of the Council or between the Council members and enterprises, universities, research institutes, relevant institutions and organizations.

(2) If necessary for consultation under paragraph (1), the Council may request future automobile parts companies, other institutions, organizations, etc. to submit data or opinions, or invite relevant experts, interested persons, etc. to its meeting to hear their opinions.

(3) "Matters prescribed by Presidential Decree" in Article 14(2)6 of the Act means the following:

1. Provision of information on patents, technology trends, etc. to strengthen competitiveness and ensure transition to the future automobile parts industry;

2. Creation of intellectual property rights, such as domestic and foreign patent applications;

3. Establishment of cooperative relationships with domestic and foreign organizations related to future automobile parts.

(4) Pursuant to Article 14(3) of the Act, the Minister of Trade, Industry and Energy may provide companies intending to transition to the future automobile parts industry with the following support: <Amended on Oct. 1, 2025>

1. Support under the subparagraphs of Article 14(2) of the Act;

2. Granting of subsidies, loans, and arrangement of loans necessary for the transition to the future automobile parts industry;

3. Provision of education and information on the transition to the future automobile parts industry;

4. Other support deemed necessary by the Minister of Trade, Industry and Energy for a smooth transition to the future automobile parts industry.

Article 15(Facilitation of digital innovation) #

(1) "Matters prescribed by Presidential Decree" in Article 16(1)6 of the Act means the following:

1. Creation of a digital ecosystem for the future automobile parts industry;

2. Establishment of a foundation for supporting digital innovation of the future automobile parts industry;

3. Dissemination of a digital innovation model of the future automobile parts industry;

4. Other matters necessary to support digital innovation of the future automobile parts industry.

(2) The Minister of Trade, Industry and Energy may request the heads of relevant agencies to cooperate in the business affairs specified in the subparagraphs of Article 16(1) of the Act in order to promote digital innovation of the future automobile parts industry. <Amended on Oct. 1, 2025>

Article 16(Identification of and support for cooperation models) #

(1) The Minister of Trade, Industry and Energy may provide the following support to build and identify a cooperation model pursuant to Article 17(1) of the Act: <Amended on Oct. 1, 2025>

1. Connection and cooperation for the establishment of a cooperative model, including the operation of exchange programs between future automobile parts companies;

2. Education and consulting necessary to build and identify a cooperation model;

3. Support determined by the Minister of Trade, Industry and Energy in connection with the selection of a cooperation model pursuant to Article 49(2) of the Act on Special Measures to Strengthen Competitiveness and Stabilize Supply Chain of Materials, Components, and Equipment Industries.

(2) Where a relevant central administrative agency conducts a pilot project to create demand for the future automobile parts industry pursuant to Article 25 of the Act, it may give preferential treatment to items developed through a cooperation model.

(3) If necessary for conducting a fact-finding survey or a demand survey under Article 17(2) of the Act, the Minister of Trade, Industry and Energy may request a person falling under any subparagraph of Article 7(2) to provide necessary cooperation, such as submission of data or statement of opinions. <Amended on Oct. 1, 2025>

(4) A fact-finding survey or a demand survey under Article 17(2) of the Act shall be conducted in the form of a field survey, written survey, literature survey and others, and may also be conducted by electronic means such as by information and telecommunications networks or email.

(5) If necessary for conducting a fact-finding survey or a demand survey under Article 17(2) of the Act, the Minister of Trade, Industry and Energy may seek advice from, or entrust survey and research to, research institutes or organizations equipped with expertise and human resources in future automobile technology, items, etc. or relevant experts. <Amended on Oct. 1, 2025>

Article 17(Training of specialized technical human resources) #

"Projects for training specialized technical human resources prescribed by Presidential Decree" in Article 18(1)7 of the Act means the following: <Amended on Oct. 1, 2025>

1. Projects for developing the capabilities of mechanics related to future automobile parts;

2. Projects for training specialized technical human resources related to surveys, analyses, evaluations, and transactions of intellectual property rights, such as patents at home and abroad;

3. Education and training projects conducted by research institutes, institutions, or organizations established for the purpose of research, activities, etc. related to the future automobile parts industry;

4. Increase of professional teachers necessary for training specialized technical human resources;

5. Projects related to the utilization of skills and knowledge possessed by skilled human resources in the future automobile field, including retired workers, database construction, and technology succession;

6. Projects relating to the promotion of exchange of specialized technical human resources;

7. Other projects that the Minister of Trade, Industry and Energy or the head of the relevant central administrative agency deems necessary for training specialized technical human resources.

Article 18(Support for establishment of vocational education and training courses by agreement) #

(1) Where the head of an industrial educational institution defined in subparagraph 2 of Article 2 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act (hereinafter referred to as "industrial educational institution") intends to receive a subsidy to cover part of the industrial entities' charges and student tuitions pursuant to Article 19(3) of the Act, he or she shall submit an application for a subsidy prescribed by Decree of the Ministry of Trade, Industry and Energy to the Minister of Trade, Industry and Energy or the head of the relevant central administrative agency. <Amended on Oct. 1, 2025>

(2) Upon receipt of an application filed under paragraph (1), the Minister of Trade, Industry and Energy or the head of the relevant central administrative agency may provide the head of an industrial educational institution with a subsidy to cover part of the industrial entities' charges and part of the student tuitions within the budget pursuant to Article 19(3) of the Act. <Amended on Oct. 1, 2025>

Article 19(Designation of specialized complex for future automobile parts industry) #

(1) "Complexes, districts, areas, etc. related to the future automobile parts industry prescribed by Presidential Decree" in Article 20(1)3 of the Act means the following complexes, districts, areas, etc.:

1. A free economic zone defined in subparagraph 1 of Article 2 of the Special Act on Designation and Management of Free Economic Zones;

2. A regional special zone defined in subparagraph 13 of the Article 2 of the Act on Special Cases concerning the Regulation of Regulation-Free Special Zones and Special Economic Zones for Specialized Regional Development;

3. An enterprise city development zone defined in subparagraph 2 of Article 2 of the Special Act on the Development of Enterprise Cities;

4. A technopark defined in subparagraph 1 of Article 2 of the Act on Special Cases concerning Support for Technoparks;

5. An industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act;

6. A Saemangeum Investment Promotion Zone under Article 11-5 of the Special Act on Promotion and Support for Saemangeum Project;

7. A hydrogen-specialized complex defined in subparagraph 5 of Article 2 of the Hydrogen Economy Promotion and Hydrogen Safety Management Act;

8. A special research and development zone defined in subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones;

9. A regional innovation cluster under subparagraph 15 of Article 2 of the Special Act on Local Autonomy and Decentralization, and Balanced Regional Development.

(2) When reviewing an application for the designation of a complex, district, area, etc. pursuant to Article 20(2) of the Act, the Minister of Trade, Industry and Energy shall take the following matters into consideration: <Amended on Oct. 1, 2025>

1. The number of future automobile parts companies scheduled to relocate to the relevant complex, district, area, etc.;

2. Possibility of development by linking major industries in the surrounding areas of the relevant complex, district, region, etc. with the future automobile parts industry;

3. Ripple effects that the designation of the relevant complex, district, area, etc. may have on the entire future automobile parts industry;

4. Other matters deemed by the Minister of Trade, Industry and Energy to require consideration at the time of designating the relevant complex, district, area, etc.

(3) Where the State or a local government provides support to a specialized complex pursuant to Article 20(5) through (7) of the Act, it may give priority to the following:

1. Expenses required for the creation of sites, reduction of and exemption from rents, and installation of various convenience facilities, such as medical facilities, educational facilities, housing, etc. under Article 20(6) of the Act;

2. Matters regarding the improvement of the welfare of employees of universities, research institutes, and enterprises in the specialized complex;

3. Matters regarding the supply of water, prevention of industrial accidents, and prevention of environmental pollution in the specialized complex;

4. Matters regarding the fostering and utilization of human resources and education and training of employees by universities, research institutes, and enterprises in the specialized complex;

5. Matters regarding the improvement of productivity and promotion of export, such as technological development and mutual cooperation among universities, research institutes, and enterprises in the specialized complex.

Article 20(Opening and utilization of demonstration base for future automobile parts) #

(1) "Institutions prescribed by Presidential Decree" in Article 21(1)4 of the Act means the following:

1. National or public research institutes;

2. National or public universities;

6. Specific research institutes under Article 2 of the Specific Research Institutes Support Act;

4. A Foundation of Special Research and Development Zones under Article 46 of the Special Act on Promotion of Special Research and Development Zones;

5. Local government-invested research institutes under Article 2 of the Act on the Establishment and Operation of Local Government-Invested Research Institutes;

6. A project implementer under Article 4(1) of the Act on Special Cases concerning Support for Technoparks;

7. Local public enterprises under Article 3(1) of the Local Public Enterprises Act.

(2) An institution referred to in each subparagraph of Article 21(1) of the Act may not open all or part of its facilities related to demonstration and production if such facilities fall under any of the following: <Amended on Oct. 1, 2025>

1. Important national facilities designated pursuant to Article 21(4) of the United Defense Act;

2. National security facilities designated under Article 32(1) of the Security Affairs Regulations;

3. Other facilities deemed unsuitable for public access by the Minister of Trade, Industry and Energy for security, safety management, and other reasons.

(3) An institution referred to in each subparagraph of Article 21(1) of the Act shall submit to the Minister of Trade, Industry and Energy data or information on the types and locations of facilities related to demonstration and production, opening hours, conditions, methods of utilization, expenses, etc., opening and utilization of which are allowed to future automobile parts companies under paragraph (2) of that Article. <Amended on Oct. 1, 2025>

(4) The Minister of Trade, Industry and Energy shall integrate and manage the information or data referred to in paragraph (2), and publish such information or data on the website of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 21(Facilitation of and support for demonstration of future automobile parts) #

(1) "Matters prescribed by Presidential Decree" in Article 22(1)4 of the Act means the following: <Amended on Oct. 1, 2025>

1. Technology support and consulting necessary for demonstration tests, reliability evaluation, performance verification, etc.;

2. Other matters deemed necessary by the Minister of Trade, Industry and Energy for facilitating demonstration tests, reliability evaluation, performance verification, etc.

(2) The Minister of Trade, Industry and Energy may give priority to the following companies when subsidizing expenses under Article 22(2) of the Act: <Amended on Oct. 1, 2025>

1. Future automobile parts specialized companies;

2. Companies intending to transition to future automobile parts companies through a cooperative model;

3. Future automobile parts companies which are small or medium enterprises.

(3) If necessary for providing support under Article 22(2) of the Act, the Minister of Trade, Industry and Energy may request future automobile parts companies to submit data or information, such as a plan for joint utilization of research facilities, equipment, etc. and a budget plan. <Amended on Oct. 1, 2025>

(4) Except as provided in paragraphs (2) and (3), details regarding the methods, procedures, etc. for providing support to facilitate transition to the future automobile parts industry shall be determined and publicly notified by the Minister of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 22(Establishment and operation of data platform) #

(1) "Matters prescribed by Presidential Decree" in Article 23(2)6 of the Act means the following:

1. Results of fact-finding surveys on the future automobile parts industry under Article 7 of the Act;

2. Information on education, experience programs, and exhibitions related to future automobile parts.

(2) "Institutions prescribed by Presidential Decree" in Article 23(4) of the Act means the following:

1. Future automobile parts companies;

2. Companies with demand for future automobile parts;

3. Institutions specified in the subparagraphs of Article 21(1) of the Act;

4. Other institutions or organizations related to the future automobile parts industry.

(3) Where the Minister of Trade, Industry and Energy requests the submission of data pursuant to Article 23(4) of the Act, he or she shall do so, in writing, specifying the scope of the data, the purpose of retention and use, and the method of submission thereof. <Amended on Oct. 1, 2025>

(4) Except as provided in paragraphs (1) through (3), details necessary for establishing and operating the data platform for future automobile parts under Article 23(1) of the Act shall be determined by the Minister of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

Article 23(International cooperation) #

"Projects prescribed by Presidential Decree" in Article 24(1)6 of the Act means the following: <Amended on Oct. 1, 2025>

1. Overseas marketing and promotional activities related to future automobile parts technology and future automobile parts industry;

2. Provision of information, education, and consulting on the overseas expansion of future automobile parts companies;

3. Projects for attracting foreign investment under Article 2(1)4 of the Foreign Investment Promotion Act;

4. International development cooperation under subparagraph 1 of Article 2 of the Framework Act on International Development Cooperation;

5. Other projects deemed necessary by the Minister of Trade, Industry and Energy to facilitate international cooperation and overseas expansion.

Article 24(Special cases regarding transition of small and medium enterprises and middle-standing enterprises to future automobile parts industry) #

(1) Where a small or medium enterprise adds a new product or service differentiated from the existing products or services or introduces a new method of provision in the future automobile parts industry under Article 28(2) of the Act, and the proportion of the relevant business meets the standards under subparagraph 2c of Article 2 of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises, it shall be deemed to meet the requirements for business conversion under that subparagraph.

(2) A small or medium enterprise or a middle-standing enterprise in the process of reorganizing its business into the future automobile parts industry pursuant to Article 28(2) of the Act shall be deemed an enterprise that has obtained a future corporate restructuring determination (limited to entry into new industries) under Article 4(1)2 of the Special Act on the Corporate Revitalization. <Amended on Jul. 9, 2024>

(3) The Minister of SMEs and Startups or the head of the competent authority defined in subparagraph 7 of Article 2 of the Special Act on the Corporate Revitalization may preferentially process the following applications to support the transition of small and medium enterprises or middle-standing enterprises to the future automobile parts industry: <Amended on Jul. 9, 2024>

1. Application for approval of a plan for business conversion submitted under Article 8(1) of the Special Act on the Promotion of Business Conversion in Small and Medium Enterprises;

2. Application for approval of a corporate restructuring plan submitted by a small or medium enterprise or a middle-standing enterprise under Article 9(1) of the Special Act on the Corporate Revitalization.

(4) "Support prescribed by Presidential Decree" in Article 28(4)7 of the Act means the following:

1. Financial support, such as guarantee;

2. Promotion of distribution of idle facilities generated during the transition to the future automobile parts industry or corporate restructuring;

3. Facilitation of market expansion;

4. Support for obtaining overseas standards and improving quality.

Article 25(Regulatory improvement related to future automobile parts) #

(1) Where necessary for identifying regulations on the future automobile parts industry requiring improvement and for reviewing improvement plans under Article 29(2) of the Act, the Minister of Trade, Industry and Energy may organize and operate a joint regulatory improvement team comprised of the following persons (hereinafter referred to as "joint regulatory improvement team"): <Amended on Oct. 1, 2025>

1. Persons commissioned by the Minister of Trade, Industry and Resources from among interested persons or relevant experts in regulations related to the future automobile parts industry;

2. Public officials belonging to the relevant administrative agencies, who are designated by the heads of the relevant administrative agencies;

3. Persons appointed by the Minister of Trade, Industry and Energy from among public officials of the Ministry of Trade, Industry and Energy.

(2) The joint regulatory improvement team shall identify regulations that hinder the development of the future automobile parts industry through face-to-face or written surveys and prepare measures for improvement.

(3) Upon identification of regulations and preparation of improvement measures under paragraph (2), the joint regulatory improvement team may propose them to the Minister of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(4) Where the Minister of Trade, Industry and Energy deems it necessary to make improvements after reviewing the regulations subject to improvement and improvement measures proposed under paragraph (3), he or she shall notify the head of a relevant administrative agency of the improvement plans. In such cases, prior deliberation by the Strategy Meeting shall be conducted. <Amended on Oct. 1, 2025>

(5) The head of the relevant administrative agency shall review the matters notified pursuant to paragraph (4) and endeavor to improve the relevant regulations unless there is a compelling reason not to do so; and where it is necessary to improve statutes or regulations, he or she shall promptly proceed with the improvement of the relevant statutes or regulations.

(6) Once the head of the relevant administrative agency has commenced and completed the improvement of relevant statutes or regulations under paragraph (5), he or she shall notify the Minister of SMEs and Startups of such the fact. <Amended on Oct. 1, 2025>

Article 26(Application for regulatory improvement) #

(1) Where a future automobile parts company intends to apply for regulatory improvement pursuant to Article 30(1) of the Act, it shall submit to the Minister of Trade, Industry and Energy an application for regulatory improvement prescribed by Decree of the Ministry of Trade, Industry and Energy. <Amended on Oct. 1, 2025>

(2) The head of the relevant administrative agency notified of the details of an application for regulatory improvement pursuant to Article 30(2) of the Act shall examine whether to improve the relevant regulations, taking the following matters into comprehensive consideration:

1. Concreteness of the details of the application for regulatory improvement and feasibility thereof;

2. Possibility of achieving objectives through regulatory improvement;

3. Ripple effects from the relevant regulatory improvement.

(3) Where the head of the relevant administrative agency finds it necessary to improve statutes or regulations upon examination under paragraph (2), he or she shall promptly proceed with the improvement of the relevant statutes or regulations.

(4) Where the head of the relevant administrative agency has commenced to improve statutes or regulations under paragraph (3) or upon examination by the Regulatory Rationalization Committee under Article 30(4) of the Act, he or she shall notify the Minister of Trade, Industry and Energy of such fact. <Amended on Oct. 1, 2025; Mar. 3, 2026>

(5) The Minister of Trade, Industry and Energy shall notify the details notified pursuant to paragraph (4) to the person who has applied for regulatory improvement under paragraph (1). <Amended on Oct. 1, 2025>

Article 27(Delegation or entrustment of authority) #

(1) The Minister of Trade, Industry and Energy shall delegate the following authority to the Administrator of the Korean Agency for Technology and Standards: <Amended on Oct. 1, 2025>

1. Conducting research on the standardization of the future automobile parts industry and promoting policies for the diffusion thereof under Article 11(1) of the Act;

2. Providing support necessary for the international standardization of future automobile parts technology under Article 11(2) of the Act;

3. Establishment and implementation of standards necessary for certification of future automobile parts, etc. under Article 12(2) of the Act;

4. Support in expenses for certification under Article 12(3) of the Act and administrative support for certification institutions.

(2) The Minister of Trade, Industry and Energy may entrust the following business affairs pursuant to Article 33(2) of the Act: <Amended on Oct. 1, 2025>

1. Conducting fact-finding surveys under Article 7(1) of the Act and requesting cooperation under paragraph (2) of that Article;

2. Compiling, managing, and providing statistics under Article 8(1) of the Act;

3. Providing support in international exchange and cooperation necessary for the international standardization of future automobile parts technology under Article 11(2) of the Act;

4. Business affairs regarding the operation of the Council under Article 14 of the Act;

5. Business affairs for facilitating digital innovation under the subparagraphs of Article 16(1) of the Act;

6. Providing support for the establishment and identification of a cooperation model under Article 17(1) of the Act and Article 16(1) of this Decree (limited to business affairs under the jurisdiction of the Minister of Trade, Industry and Resources);

7. Fact-finding surveys and demand surveys under Article 17(2) of the Act (limited to business affairs under the jurisdiction of the Minister of Trade, Industry and Energy);

8. Receipt of the results of opening and utilization of facilities related to demonstration and production under Article 21(2) of the Act, and evaluation and notification of the results under paragraph (3) of that Article;

9. The following matters regarding the data platform for future automobile parts under Article 23 of the Act:

a. Establishment and operation of the data platform for future automobile parts under Article 23(1) of the Act;

b. Provision of information under Article 23(2);

c. Provision of functions necessary for the distribution and transaction of data related to the future automobile parts industry under Article 23(3) of the Act;

d. Requesting data under Article 23(4) of the Act.

(3) A person equipped with human resources and equipment capable of performing the entrusted business affairs from among the following persons shall eligible to be entrusted with the business affairs prescribed in the subparagraphs of paragraph (2) under Article 33(2) of the Act: <Amended on Oct. 1, 2025>

4. The Korea Institute for Advancement of Technology established under Article 38 of the Industrial Technology Innovation Promotion Act;

2. The Korea Planning and Evaluation Institute of Industrial Technology referred to in Article 39 of the Industrial Technology Innovation Promotion Act;

3. A specialized manufacturing technology institute established under Article 42 of the Industrial Technology Innovation Promotion Act;

4. The Korea Trade-Investment Promotion Agency established under the Korea Trade-Investment Promotion Agency Act;

5. A non-profit corporation established under the Civil Act for the purpose of strengthening the competitiveness of the future automobile parts industry;

6. Other institutions, corporations, or organizations deemed by the Minister of Trade, Industry, and Energy to have expertise in the business affairs specified in the subparagraphs of paragraph (2).

(4) Where the Minister of Trade, Industry and Energy entrusts business affairs pursuant to paragraphs (2) and (3), he or she shall give public notice of the person to be entrusted therewith and the details of the entrusted business affairs. <Amended on Oct. 1, 2025>