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FRAMEWORK ACT ON RAILROAD INDUSTRY DEVELOPMENT

Act No. 6955, Jul. 29, 2003

Amended by Act No. 7219, Sep. 23, 2004

Act No. 8135, Dec. 30, 2006

Act No. 8852, Feb. 29, 2008

Act No. 9547, Mar. 25, 2009

Act No. 9609, Apr. 1, 2009

Act No. 9772, jun. 9, 2009

Act No. 11690, Mar. 23, 2013

Act No. 14547, Jan. 17, 2017

CHAPTER Ⅰ GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to the advancement of railroad industry efficiency as well as the public good and the development of the national economy, by raising the competitiveness of the railroad industry and laying the foundation for its further development.
 Article 2 (Scope of Application)
This Act shall apply to railroads falling under any of the following subparagraphs: Provided, That the provisions of Chapter II shall apply to all railroads:
1. Railroads owned, constructed, operated or managed by the State or the Korea High-Speed Rail Construction Authority (hereinafter referred to as the "High-Speed Rail Construction Authority") established under the Korea High-Speed Rail Construction Authority Act;
2. Railroads owned, constructed, operated or managed by the Korea Rail Network Authority established under Article 20 (3) or the Korea Railroad Corporation established under Article 21 (3).
 Article 3 (Definitions)
The definition of terms used in this Act shall be as follows:
1. The term "railroad" means a transportation system in which railroad facilities necessary to transport passengers and freight, rolling stock and an operation/supporting system relevant thereto are comprised organically;
2. The term "railroad facilities" means facilities (including sites) falling under any of the following subparagraphs:
(a) Railway tracks (including facilities ancillary to railway tracks), station facilities (including distribution facilities, transfer facilities, convenience facilities, etc.) and buildings and building facilities for railroad operations;
(b) Track and railcar repair and maintenance site, rolling stock maintenance sites and rolling stock storage facilities;
(c) Railroad power facilities, information and communication facilities, and signaling and train control facilities;
(d) Facilities necessary for operations interconnecting other railroad routes or railroads and other means of transportation;
(e) Facilities for development, testing and research of railroad technology;
(f) Education and training facilities for the training of railroad experts and studies in railroad management;
(g) Other facilities determined by Presidential Decree for the construction, maintenance and operations of railroads;
3. The term "railroad operation" means railroad-related operations falling under any of the following items:
(a) Carriage of railroad passengers and freight;
(b) Maintenance of rolling stock and operational management of trains;
(c) Development of subsidiary businesses and services that utilize railroad facilities, rolling stock, railroad sites, etc.;
4. The term "rolling stock" means locomotives, passenger coaches, freight cars, and special cars, all of which are manufactured for the purpose of operating on railway tracks;
5. The term "railway track" means infrastructure comprised of a track for running rolling stock and trackbed or structures supporting such railway track;
6. The term "construction of railroad facilities" means the installation of new railroad facilities and related activities, including refurbishment of railroad facilities such as straightening, electrifying, double-tracking, modernizing, etc. of existing railroad facilities which is intended to improve the performance and function of railroad facilities;
7. The term "maintenance of railroad facilities" means routine activities such as inspections, repair, replacement, refurbishment, etc. for the purpose of maintaining the current condition and improving the performance of existing railroad facilities;
8. The term "railroad industries" means industries related to railroad transportation, railroad facilities and rolling stock, industries related to the development of railroad technology, and other industries related to the development, use and management of railroads;
9. The term "railroad facility manager" means a person who performs duties related to the construction, management, etc. of railroad facilities and falls under any one of the following items:
(a) A managing authority under Article 19;
(b) The Korea Rail Network Authority established under Article 20 (3);
(c) A person granted a right to manage railroad facilities under Article 26 (1);
(d) A person who vicariously executes, is entrusted with, or is commissioned to conduct, management of railroad facilities by persons falling under item (a) through (c);
10. The term "railroad operator" means persons such as the Korea Railroad Corporation established under Article 21 (3) or others who perform duties pertaining to railroad operations;
11. The term "public services" means railroad services provided by a railroad operator in light of the policies, public purposes, etc. of the State, and local governments, having no relation to the profit-making purposes of the railroad operator.
CHAPTER Ⅱ CREATION OF FOUNDATIONAL BASIS FOR RAILROAD INDUSTRY DEVELOPMENT
SECTION 1 System for Establishing and Promoting Railroad Industry Policies
 Article 4 (Basic Policy Direction)
(1) In establishing and implementing railroad industry policies, the State shall take into consideration principles of efficiency and functions that promote the public good.
(2) Recognizing that railroads possessing high efficiency in energy consumption, environmental-friendliness and transport efficiency play an essential role in the sound development of the nation and in enhancing the transportation convenience of the nation, the State shall prepare various policies for the purpose of developing the railroad industry by setting up and maintaining the proper objectives for transportation burden sharing of railroads, and securing the railroad facilities therefor, etc.
(3) The State shall secure an organization and the necessary personnel for promoting railroad industry and related policies, such as railroad investment, railroad safety, etc.
 Article 5 (Formulation, etc. of Master Plan for Railroad Industry Development and Related Matters)
(1) The Minister of Land, Infrastructure and Transport shall formulate and implement a master plan for railroad industry development (hereinafter referred to as "master plan") on a five-year basis to promote the fostering and development of the railroad industry. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) Master plans shall include the matters contained in each of the following subparagraphs:
1. Matters pertaining to the basic direction of policies for fostering the railroad industry;
2. Matters pertaining to the current circumstances and forecast of trends in the railroad industry;
3. Matters pertaining to railroad facility investment, construction and maintenance and securing of related financial resources;
4. Matters pertaining to transport interconnections between various railroads and project coordination;
5. Matters pertaining to the improvement of railroad operation systems;
6. Matters pertaining to education of experts in the railroad industry;
7. Matters pertaining to the development and use of railroad technology;
8. Other matters prescribed by Presidential Decree pertaining to the fostering and development of the railroad industry.
(3) Master plans shall be formulated in coordination with the national backbone transportation network plan under Article 4 of the National Transport System Efficiency Act, the mid-term investment plan in transportation facilities under Article 6 of the same Act, and the development plan for national transportation technology under Article 94 of the same Act. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9772, Jun. 9, 2009>
(4) Where the Minister of Land, Infrastructure and Transport intends to formulate a master plan, he/she shall submit such plan to the deliberations of the Railroad Industry Committee established under Article 6 after consulting in advance with the heads of administrative agencies relevant to the master plan. The same shall apply when he/she intends to alter a master plan already formulated (excluding minor changes, as so prescribed by Presidential Decree). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) Where the Minister of Land, Infrastructure and Transport has formulated or changed a master plan under paragraph (4), he/she shall publicize such in an official gazette. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(6) The heads of relevant administrative agencies shall formulate and carry out an annual implementation plan in accordance with the master plan which has been formulated and publicized, and submit such plan for the pertinent year, as well as the track record of the preceding year, to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(7) Matters necessary for the formulation and implementation procedures related to the annual implementation plan under paragraph (6) shall be prescribed by Presidential Decree.
 Article 6 (Railroad Industry Committee)
(1) A Railroad Industry Committee (hereinafter referred to as the "Committee") shall be established in the Ministry of Land, Infrastructure and Transport to deliberate on and coordinate master plans, critical policies, etc. relevant to the railroad industry. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Committee shall deliberate on and coordinate any of the following matters:
1. Essential policy matters pertaining to the fostering and development of the railroad industry;
2. Essential policy matters pertaining to the structural reform of the railroad industry;
3. Essential policy matters pertaining to railroad facilities, such as the construction, management, etc. of railroad facilities;
4. Essential policy matters pertaining to railroad safety and operations;
5. Matters pertaining to mutual cooperation and coordination among railroad facility managers and railroad operators;
6. Matters required by this Act, or other Acts, to be submitted to deliberations of the Committee;
7. Other essential matters pertaining to the railroad industry referred by the Chairperson.
(3) The Committee shall be comprised of not more than 25 members including the Chairperson.
(4) Sub-committees shall be established under the Committee to review in advance agenda to be submitted to the Committee and to deliberate on agenda entrusted to it by the Committee. <Amended by Act No. 9547, Mar. 25, 2009>
(5) Except as otherwise expressly provided for in this Act, matters necessary for the composition, function, and operation of the Committee and sub-committees shall be prescribed by Presidential Decree. <Amended by Act No. 9547, Mar. 25, 2009>
SECTION 2 Fostering of Railroad Industry
 Article 7 (Expansion of Investment in Railroad Facilities)
(1) The State shall take into consideration social and environmental benefits in promoting investment in railroad facilities.
(2) The State shall incorporate the target value of investment in railroad facilities and investment plans into various national plans and endeavor to ensure that the rate of investment funds for railroad facilities taken from the investment budget for transportation facilities rises in a continuous manner every year.
 Article 8 (Support for Railroad Industry)
The State and local governments may lend financial, monetary, taxation, and administrative support to the railroad industry to promote the fostering and development of the railroad industry.
 Article 9 (Education, Training, etc. of Railroad Industry Experts)
(1) The Minister of Land, Infrastructure and Transport shall prepare schemes to enhance the quality of persons engaging in the railroad industry and to develop new railroad technology and improve its operating techniques. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport may lend administrative, financial, and other support related to education and training programs for persons engaging in the railroad industry to a training institution specialized in the railroad industry by entering into a contract with such institution as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) Training institutions specialized in the railroad industry under paragraph (2) may conduct surveys on the demand for experts every year and submit the result thereof, including its opinion regarding the supply and demand for experts to the Minister of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) Where deemed specifically necessary for new railroad technology and the improvement of operating techniques, the Minister of Land, Infrastructure and Transport may recommend government-invested institutions, government-contributed institutions, and companies, etc., invested by the Government, to invest in research and development of new railroad technology and operating techniques. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 10 (Expansion, etc. of Educational Courses concerning Railroad Industry)
(1) The Minister of Land, Infrastructure and Transport may request the heads of relevant central administrative agencies to take necessary measures, such as expansion, etc. of educational courses concerning the railroad industry in accordance with changes in the supply and demand of railroad industry experts. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The State shall establish and implement policies necessary to diversify qualification systems of persons engaging in the railroad industry and to maintain and advance the level of quality of such persons.
(3) The Minister of Land, Infrastructure and Transport may operate and support education agencies such as specialized universities, etc. for the smooth supply of railroad industry experts and the development of the railroad industry. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 11 (Advancement, etc. of Railroad Technology)
(1) The Minister of Land, Infrastructure and Transport shall endeavor to research and develop overall railroad technology for the advancement and fostering of railroad technology. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport shall guide and foster specialized agencies or institutions for the promotion of research and development under paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) For the advancement of railroad technology, the State may gratuitously lend or concede state property, such as facilities, land, etc. for railroad testing and research development to the Korea Rail Research Institution established under the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutions or allow the Korea Rail Research Institution to use or make profit from such property. <Amended by Act No. 7219, Sep. 23, 2004>
 Article 12 (Facilitation for Informatization of Railroad Industry)
(1) The Minister of Land, Infrastructure and Transport shall formulate and implement a master plan for informatization of the railroad industry as prescribed by Presidential Decree to efficiently process and circulate railroad industry-related information. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) In order to efficiently compile, manage, and provide information relating to the railroad industry, the Minister of Land, Infrastructure and Transport may install and operate a Railroad Industry Information Center or lend necessary support to any person who compiles, manages, or provides information relating to the railroad industry as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 13 (Facilitation of International Cooperation and Access to Overseas Markets)
(1) The Minister of Land, Infrastructure and Transport shall be aware of international trends in the railroad industry and facilitate international cooperation. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The State may support projects such as international exchanges, international standardization, international joint research development, etc. of relevant technology and human resources for the purpose of promoting international cooperation and access of the railroad industry to overseas markets.
 Article 13-2 (Establishment of Association)
(1) Persons engaged in an enterprise, institution, or organization related to the railroad industry, or affairs related thereto, may establish an association, for the purpose of promoting the railroad industry’s sound development and its entry into overseas market.
(2) An association shall be a corporation.
(3) The Association shall come into existence upon obtaining authorization by the Minister of Land, Infrastructure and Transport and registering the incorporation at the seat of its principal office.
(4) The Association shall perform the following affairs on railroads:
1. Support with policy or technology development;
2. Management of information and support with sharing thereof;
3. Support with nurturing of professional personnel;
4. On-site survey for overseas market entry or support therewith;
5. Survey or research or publication;
6. Projects entrusted by the State or local government;
7. Other affairs as prescribed by its articles of association.
(5) The State, a local government, or any railroad-related public institution under the Act on the Management of Public Institutions may wholly or partially subsidize within budgetary limits the expense incurred for the Association to perform the affairs entrusted by the respective entity.
(6) The articles of association shall be authorized by the Minister of Land, Infrastructure and Transport, and matters to be entered in its articles of association, operation of the association, etc. shall be prescribed by Presidential Decree.
(7) Except as otherwise expressly provided for in this Act, provisions applicable to incorporated associations of the Civil Act shall apply mutatis mutandis to associations.
[This Article Newly Inserted by Act No. 14547, Jan. 17, 2017]
CHAPTER Ⅲ RAILROAD SAFETY AND PROTECTION OF USERS
 Article 14 (Railroad Safety)
(1) The State shall establish the legal and institutional framework required for railroad safety and endeavor to secure the financial resources required therefor for the purpose of protecting the people’s life, body, and property.
(2) In installing and managing railroad facilities, a railroad facility manager shall maintain the relevant facilities in a safe condition and take necessary measures for ensuring safety, such as comprehensive performance verifications, inspections of safety conditions, etc. of the relevant facilities and rolling stock to use such facilities, as prescribed by law.
(3) A railroad operator or a manufacturer of rolling stock, railroad equipment, etc. shall endeavor to ensure safe railroad operations and the safety of structures and facilities and the equipment for rolling stock, railroad equipment, etc. to be manufactured, and to make improvements thereof, as prescribed by law.
(4) The State shall secure an organization and experts exclusively in charge of promoting objective and fair investigations of railroad accidents.
 Article 15 (Quality Improvement, etc. of Railroad Services)
(1) A railroad operator shall endeavor to improve the quality of railroad services that he/she provides.
(2) The Minister of Land, Infrastructure and Transport shall evaluate the quality of railroad services and incorporate the result thereof into policies for the improvement of the quality of railroad services and user convenience. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) Necessary matters pertaining to procedures, use, etc. of the quality evaluation of railroad services under paragraph (2) shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 16 (Protection, etc of Rights and Interests of Railroad Users)
The State shall prepare the policies to protect rights and interests of railroad users related to the following matters:
1. Publicity, education, and research for the protection of the interests and rights of railroad users;
2. Prevention of any harm to life, body, and property of railroad users;
3. Speedy and fair relief measures for complaints by or damage to railroad users;
4. Other matters relating to protection of railroad users.
CHAPTER Ⅳ PROMOTION OF STRUCTURAL REFORM OF RAILROAD INDUSTRY
SECTION 1 Basic Policies
 Article 17 (Basic Directions for Structural Reform of Railroad Industry)
(1) The State shall carry forward a structural reform of the railroad industry separating railroad facilities field from railroad operations to enhance the competitiveness of the railroad industry and lay a foundation for industry development.
(2) The State shall prepare the necessary measures, such as formation of a mutual cooperation system as prescribed by Presidential Decree, so that railroad facilities and railroad operations can function in a complementary manner.
 Article 18 (Formulation, etc. of Master Plans of Structural Reform for Railroad Industry)
(1) The Minister of Land, Infrastructure and Transport shall formulate a master plan for structural reform of the railroad industry (hereinafter referred to as "structural reform plan") to efficiently carry out the structural reform of the railroad industry. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) A structural reform plan shall include the following matters:
1. Matters pertaining to the objectives and basic direction of the structural reform of the railroad industry;
2. Matters pertaining to promotion plans for the structural reform of the railroad industry;
3. Matters pertaining to reforms in the ownership and management structure of railroads;
4. Matters pertaining to the creation of a domestic and foreign environment conductive to the structural reform of the railroad industry;
5. Matters pertaining to property, liabilities, human resources. etc. resulting from the structural reform of the railroad industry;
6. Matters pertaining to the arrangement of railroad-related organizations, institutions, etc resulting from the structural reform of the railroad industry;
7. Other matters prescribed by Presidential Decree as required for the structural reform of the railroad industry.
(3) Where the Minister of Land, Infrastructure and Transport intends to formulate a structural reform plan, he/she shall submit such plan to the deliberations of the Committee established under Article 6 after consulting in advance with the heads of the administrative agencies relevant to the structural reform plan. The same shall apply when he/she intends to alter a structural reform plan already formulated (excluding minor changes, prescribed so by Presidential Decree). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) Where the Minister of Land, Infrastructure and Transport has formulated or altered a structural reform plan under paragraph (3), he/she shall publicize such in an official gazette. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) The heads of relevant administrative agencies shall formulate and carry out an annual implementation plan according to the structural reform plan formulated and publicized, and submit such plan for the pertinent year, as well as the track record of the preceding year, to the Minister of Land, Infrastructure and Transport <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(6) Matters necessary for the formulation and implementation of an annual implementation plan under paragraph (5) shall be prescribed by Presidential Decree.
 Article 19 (Managing Authority)
(1) The managing authority of railroads shall be the Minister of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The Minister of Land, Infrastructure and Transport may have the Korea Rail Network Authority established under Article 20 (3) vicariously perform a portion of his/her duties provided for in this Act or other railroad-related Acts in relation to construction, management, etc. of railroad facilities as prescribed by Presidential Decree. In such cases, necessary matters concerning the details of the scope of duties, authority, etc. shall be prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) Where the Korea Rail Network Authority established under Article 20 (3) vicariously performs duties of the Minister of Land, Infrastructure and Transport, it shall be deemed to be the managing authority in applying this Act and other railroad-related Acts within the scope of such performance. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 20 (Railroad Facilities)
(1) In carrying out the structural reform of the railroad industry, railroad facilities are in principle owned by the State.
(2) The Minister of Land, Infrastructure and Transport shall formulate and implement the following policies pertaining to railroad facilities: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Formulation of investment plans and fund raising for railroad facilities;
2. Construction and management of railroad facilities;
3. Maintenance and repair, and the maintaining of proper conditions, of railroad facilities;
4. Safety management and disaster prevention plans for railroad facilities;
5. Other matters required to secure public railroad facilities, such as securing their connections among transportation facilities, etc.
(3) The State shall establish the Korea Rail Network Authority (hereinafter referred to as the "KRNA") by Special Act as an executing body to systematically and efficiently carry out the duties relating to railroad facilities by merging and consolidating the relevant organizations of the Korea National Railroad and the Korea High-Speed Rail Construction Authority.
 Article 21 (Railroad Operations)
(1) In principle, projects relating to railroad operations in carrying out the structural reform of the railroad industry shall be conducted by persons other than the State pursuant to the market economy principle.
(2) The Minister of Land, Infrastructure and Transport shall formulate and implement the following policies pertaining to railroad operations: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Enhancing the competitiveness of the railroad operations;
2. Improving railroad operation services;
3. Securing safety of railroad operations through preventive measures such as safety diagnosis, etc., of train operations, accident investigations, etc.;
4. Creating a fair competition environment;
5. Other matters necessary for railroad operations such as protection of railroad users, train operation rules, etc.
(3) The State shall establish the Korea Railroad Corporation (hereinafter referred to as "KORAIL") by Special Act to efficiently manage affairs relating to railroad operations by converting relevant organizations of the Korea National Railroad and the Korea High-Speed Rail Construction Authority.
SECTION 2 Disposal of Property, Liabilities and Human Resources
 Article 22 (Classification, etc of Railroad Property)
(1) In carrying out the structural reform of the railroad industry, the Minister of Land, Infrastructure and Transport shall classify the property of the Korea National Railroad and the Korea High-Speed Rail Construction Authority as follows: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Operational property: Property, facilities, and rights thereof already acquired or to be acquired by the Korea National Railroad and the Korea High-Speed Rail Construction Authority pursuant to the relevant statutes, contracts, etc. for the main purpose of railroad operations, etc.;
2. Facility property: Property, facilities, and rights thereof already acquired or to be acquired by the Korea National Railroad and the Korea High-Speed Rail Construction Authority pursuant to the relevant statutes, contracts, etc. for the main purposes of construction and management of railroad infrastructure;
3. Other property: Property other than the railroad property under paragraphs (1) and (2).
(2) When the Minister of Land, Infrastructure and Transport classifies railroad property pursuant to paragraph (1), he/she shall determine the standards for such by consulting in advance with the Minister of Strategy and Finance. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 23 (Disposal of Railroad Property)
(1) The Minister of Land, Infrastructure and Transport shall formulate a disposal plan for railroad property (hereinafter referred to as "railroad property disposal plan") to carry out the structural reform of the railroad industry as prescribed by Presidential Decree after going through the deliberations of the Committee. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) The State shall make investments in KORAIL with operation property in kind pursuant to a railroad property disposal plan notwithstanding the provisions of the State Property Act.
(3) KORAIL shall succeed, by universal title, to the rights and duties relating to the operation property invested in kind under paragraph (2).
(4) The railroad property under the following subparagraphs shall be transferred to the Minister of Land, Infrastructure and Transport from the CEO of the Korea National Railroad pursuant to a railroad property disposal plan, and the Minister of Land, Infrastructure and Transport may entrust KRNA, KORAIL, relevant agencies and associations, or private corporations prescribed by Presidential Decree with managing the duties thereof or have them use or make profits with such property: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Facility property of the Korea National Railroad (excluding facility property under construction);
2. Other property of the Korea National Railroad.
(5) KRNA shall succeed, by universal title, to the following railroad property and the rights and duties relating thereto pursuant to a railroad property disposal plan.
1. Facility property under construction by the Korea National Railroad;
2. Facility property and operation property under construction by the High-Speed Rail Construction Authority;
3. Other property of the High-Speed Rail Construction Authority.
(6) Where the CEO of the Korea National Railroad or the CEO of the High-Speed Rail Construction Authority intends to hand-over, transfer, etc. the railroad property under the provisions of paragraphs (2) through (5), he/she shall obtain approval from the Minister of Land, Infrastructure and Transport by preparing documents relevant thereto. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(7) Matters pertaining to the timing of hand-over, transfer, etc. of the railroad property under paragraph (6), the appraisal methods, reference date of appraisal, etc. of the relevant railroad property, etc. shall be prescribed by Presidential Decree.
 Article 24 (Disposal of Railroad Liabilities)
(1) The Minister of Land, Infrastructure and Transport shall classify the railroad liabilities of the Korea National Railroad and the High-Speed Rail Construction Authority into the following subparagraphs by consulting in advance with the Minister of Strategy and Finance: <Amended by Act No. 8135, Dec. 30, 2006; Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Operation liabilities: Liabilities directly relating to the operation property under Article 22 (1) 1;
2. Facility liabilities: Liabilities directly relating to the facility property under Article 22 (1) 2;
3. Other liabilities: Liabilities other than railroad liabilities under subparagraphs (1) and (2) and for public fund management funds from among railroad liabilities born by the special account for railroad projects.
(2) KORAIL and KRNA shall succeed, by universal title, to the operation liabilities and facility liabilities, respectively, and other liabilities shall be succeeded to by a general accounts.
(3) Where the CEO of the Korea National Railroad or the CEO of High-Speed Rail Construction Authority intends to take over railroad liabilities under paragraphs (1) through (2), he/she shall obtain approval from the Minister of Land, Infrastructure and Transport by preparing documents pertaining to take-over. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) Matters pertaining to the timing of taking over railroad liabilities under paragraph (3), the appraisal methods, reference date of appraisal, etc. of railroad liabilities, etc. to be taken over shall be prescribed by Presidential Decree.
 Article 25 (Succession, etc. of Employment)
(1) KORAIL and KRNA shall inclusively succeed to the employment of the personnel of the Korea National Railroad and the High-Speed Rail Construction Authority, except for those who maintain a status as a public official, from among the personnel of the Korea National Railroad.
(2) The State shall take necessary measures in order for those whose employment is succeeded to by KORAIL and KRNA, from among the personnel of the Korea National Railroad referred to in paragraph (1), not to suffer from any disadvantage in labor conditions and retirement benefits.
SECTION 3 Right, etc. to Manage Railroad Facilities
 Article 26 (Right to Manage Railroad Facilities)
(1) The Minister of Land, Infrastructure and Transport may establish a right to manage railroad facilities and to collect fees from any person who utilizes or uses such railroad facilities (hereinafter referred to as "right to manage railroad facilities"). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) A person who is granted a right to manage railroad facilities under paragraph (1) shall file a registration with the Minister of Land, Infrastructure and Transport as prescribed by Presidential Decree. The same shall also apply to cases where he/she intends to modify matters already registered. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 27 (Nature of Right to Railroad Facility Management)
The right to manage railroad facilities shall be deemed a real right and the provisions pertaining to real estate in the Civil Act shall apply mutatis mutandis, except as otherwise expressly provided for in this Act.
 Article 28 (Special Cases for Establishment of Mortgage)
No right to manage railroad facilities on which a mortgage has been placed shall be disposed of without consent of the mortgagee.
 Article 29 (Changes of Rights)
(1) The establishment, change, extinction, and disposition of a right to manage railroad facilities, or a mortgage the object of which is a right to manage railroad facilities, shall become effective by entering such in a register for railroad facility management rights kept in the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) Matters necessary for registration of rights to manage railroad facilities as provided for in paragraph (1) shall be prescribed by Presidential Decree.
 Article 30 (Railroad Facility Management Ledgers)
(1) A person who manages railroad facilities shall prepare and keep a railroad facility management ledger under his/her management.
(2) Matters necessary for preparation and keeping of a railroad facility management ledger, matters to be entered therein, etc., shall be determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 31 (Fees for Railroad Facilities)
(1) A person who intends to use railroad facilities may do so by obtaining permission from the managing authority as prescribed by Presidential decree, by entering into a contract for facility use with a railroad facility manager, or by obtaining consent of a person who has entered into a contract for facility use (hereinafter referred to as "contractor for facility use").
(2) A railroad facility manager or a contractor for facility use may collect fees from those who use railroad facilities under paragraph (1).
(3) Socioeconomic conveniences of railroads, equity with other means of transportation, etc. shall be taken into consideration in collecting fees for railroad facilities under paragraph (2).
(4) Matters necessary for collection standards, procedures, etc. of usage fees for railroad facilities shall be prescribed by Presidential Decree.
SECTION 4 Maintaining Public Service Functions
 Article 32 (Bearing of Public Service Costs)
(1) Costs incurred by a railroad operator in providing public services (hereinafter referred to as "costs for public service") shall be borne by the State or a person who directly requests the railroad service in question (hereinafter referred to as "cause provider").
(2) The scope of public service costs to be borne by a cause provider shall be as follows:
1. The reduced or exempted amount where a railroad operator reduces or exempts railroad fares or charges pursuant to other statutes or for national policies or public purposes;
2. Management loss incurred by a railroad operator in continuing to provide basic railroad service for public purposes in cases where a railroad operator should restrict or suspend railroad service for routes or stations in remote regions due to extreme difficulty in keeping a balance between incomes and outlays as a result of low use demand for the railroad although the railroad operator has taken appropriate measures for management improvement;
3. Costs incurred by a railroad operator in performing special-purpose projects of the State.
 Article 33 (Conclusion of Compensation Contract due to Provision of Public Service)
(1) A cause provider shall enter into a contract pertaining to compensation of public service costs (hereinafter referred to as "compensation contract") with a railroad operator.
(2) A compensation contract under paragraph (1) shall include the matters contained in the following subparagraphs:
1. Matters pertaining to the standards and details of railroad services provided by a railroad operator;
2. Matters pertaining to the details of compensation born by a cause provider, compensation methods, etc. in relation to the provision of public services;
3. Matters pertaining to contract duration, including modification and renewal of contract duration, and contract cancellation;
4. Other matters agreed to by a cause provider and a railroad operator as necessary.
(3) A cause provider shall consult in advance with the Minister of Land, Infrastructure and Transport and the Minister of Strategy and Finance before entering into a compensation contract with a railroad operator. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) If necessary to ensure objectivity and fairness of public service costs, the Minister of Land, Infrastructure and Transport may designate a specialized institution and have such institution take control of certain duties, such as calculation, evaluation, etc. of public service costs, as determined by Ordinance of the Ministry of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(5) The Committee may intervene upon receiving application of a cause provider and a railroad operator if a cause provider and a railroad operator fail to reach an agreement concerning the conclusion of a compensation contract.
 Article 34 (Approval for Disuse, etc. of Specific Routes)
(1) A railroad facility manager and a railroad operator (hereinafter referred to as "applicant for approval") may take necessary measures, such as disuse of specific routes and stations and restriction, suspension, etc. of relevant railroad services, by obtaining approval from the Minister of Land, Infrastructure and Transport in any of the following cases: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Where managerial difficulties occur as it becomes extremely difficult for an applicant for approval to keep the balance between incomes and outlays although he/she has taken appropriate measures for improving management of the railroad in relation to routes or stations for which an applicant for approval provides railroad services;
2. Where proper compensation for public service costs has not been made although a compensation contract was entered into under Article 33;
3. Where a cause provider fails to bear public service costs;
4. Where a cause provider fails to comply with adjustment under Article 33 (5).
(2) An applicant for approval shall submit, to the Minister of Land, Infrastructure and Transport, an application for approval which includes the following matters: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Details concerning specific routes and stations subject to disuse or intended restrictions or suspension of railroad services;
2. Matters pertaining to cost-bearing, etc. by a cause provider in cases where continued operations of specific routes and stations or railroad services are required;
3. Other matters pertaining to disuse of specific routes and stations or restrictions and suspension of railroad services.
(3) Where an application for approval is submitted pursuant to paragraph (2), the Minister of Land, Infrastructure and Transport shall determine whether to grant approval through deliberations by the Committee after consulting with a cause provider and the heads of relevant administrative agencies and shall notify the applicant for approval of the result thereof. In such cases, where a decision is made to grant approval, the fact shall be publicized in an official gazette. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(4) The Minister of Land, Infrastructure and Transport or the heads of relevant administrative agencies shall take necessary measures, such as preparation of substitute means of transportation, etc., where the applicant for approval intends to take measures, such as disuse of specific routes and stations or restrictions, suspension, etc. of railroad services pursuant to paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 35 (Restrictions, etc. on Approval)
(1) Where cases listed in the following subparagraphs exist, even in cases falling under the subparagraphs of Article 34 (1), the Minister of Land, Infrastructure and Transport need not grant approval under paragraph (3) of the same Article: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Where it is acknowledged that measures such as disuse, etc. of routes pursuant to Article 34 are significantly detrimental to the public interest;
2. Where it is acknowledged that measures such as disuse, etc. of routes pursuant to Article 34 cause serious inconveniences in providing transportation service due to insufficient substitute means of transportation, etc.
(2) The Minister of Land, Infrastructure and Transport shall compensate an appliant for approval who is a railroad operator for the losses resulting therefrom if such applicant sustains serious operating losses in management due to his/her failure to grant approval pursuant to the subparagraphs of paragraph (1). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
 Article 36 (Disposition in Emergency)
(1) Where the Minister of Land, Infrastructure and Transport deems that serious interruption of railroad service could occur due to the occurrence of natural disasters, calamities, wartime, armed conflict, serious failure of the railroad transportation, or other situation equivalent thereto, he/she may issue adjustment, orders or other necessary measures to a railroad facility manager, a railroad operator or railroad users relating to the following matters: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
1. Transportation control such as assigning transportation priorities for each region, route, and subject of transportation;
2. Operations of railroad facilities, rolling stock, or facilities;
3. Securing substitute means of transportation and transportation channels;
4. Formation and operation of temporary trains;
5. Assignment of railroad service personnel;
6. Restrictions on or prohibition from use of railroads;
7. Other matters prescribed by Presidential Decree for stabilizing railroad service.
(2) The Minister of Land, Infrastructure and Transport may make requests to the heads of relevant administrative agencies for necessary cooperation in the implementation of measures under paragraph (1), and the heads of relevant administrative agencies shall cooperate with such requests. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(3) The Minister of Land, Infrastructure and Transport shall revoke measures without delay where it is deemed that grounds for taking such measures as defined in paragraph (1) cease to exist. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
CHAPTER Ⅴ SUPPLEMENTARY PROVISIONS
 Article 37 (Cost-Bearing of Railroad Construction, etc.)
(1) Where a local government, a specific agency, or organization earns significant gains from a railroad facility construction project, a railroad facility manager may have those who has earned such gains (hereafter referred to as "beneficiaries" in this Article) bear, in whole or in part, the costs therefor by obtaining approval from the Minister of Land, Infrastructure and Transport. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) Costs borne by beneficiaries pursuant to paragraph (1) shall be determined through consultation between the railroad facility manager and beneficiaries. In such cases, the Committee may intervene upon receiving an application by the railroad facility manager or beneficiaries where consultation has not been made.
 Article 38 (Delegation and Entrustment of Authority)
The Minister of Land, Infrastructure and Transport may delegate part of the authority under this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Do Governor, a Special Self-Governing Province Governor, or the head of a local transportation agency or entrust relevant administrative agencies, KRNA, KORAIL, and government-invested research institutes with such authority. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9609, Apr. 1, 2009; Act No. 11690, Mar. 23, 2013>
 Article 39 (Hearings)
The Minister of Land, Infrastructure and Transport shall hold a hearing if he/she intends to grant approval for disuse of a specific route or station or restrictions or suspension of railroad services relevant thereto pursuant to Article 34. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
CHAPTER Ⅵ PENALTY PROVISION
 Article 40 (Penalty Provisions)
(1) A person who disuses a specific route or a station or restricts or suspends railroad services without obtaining approval from the Minister of Land, Infrastructure and Transport, in violation of Article 34, shall be punished by imprisonment for not more than three years or a fine not exceeding 50 million won. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
(2) A person who falls under any of the following subparagraphs shall be punished by imprisonment for not more than two years or an administrative fine not exceeding 30 million won:
1. A person who obtains permission under Article 31 (1) in deceit or by other unlawful means;
2. A person who uses railroad facilities without obtaining permission under Article 31 (1);
3. A person who violates adjustment, orders, etc. under Article 36 (1) 1 through 5 or Article 36 (1) 7.
 Article 41 (Joint Penalty Provisions)
If a representative of a corporation or an agent, an employee, or any other employed person of a corporation, or an individual commits any violation falling under the provisions of Article 40 in connection with affairs of the corporation or the individual, not only shall such an offender be punished accordingly, but the corporation or the individual shall also be punished by a fine under the relevant Articles: Provided, That the same shall not apply to cases where the corporation or the individual has paid due attention to or diligently supervised the relevant affairs in order to prevent such violation.
[This Article Wholly Amended by Act No. 9609, Apr. 1, 2009]
 Article 42 (Administrative Fines)
(1) A person who violates Article 36 (1) 6 of this Act shall be punished by an administrative fine not exceeding 10 million won.
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Land, Infrastructure and Transport, as prescribed by Presidential Decree. <Amended by Act No. 9609, Apr. 1, 2009; Act No. 11690, Mar. 23, 2013>
(3) through (5) Deleted. <by Act No. 9609, Apr. 1, 2009>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Special Cases concerning Disposal of Liabilities for High-Speed Railroad under Construction)
(1) Railroad liabilities of a high-speed railroad under construction at the time this Act enters into force shall be inclusively succeeded to by KRNA at the time KRNA is established notwithstanding Article 24 (2).
(2) The operation liabilities under Article 24 (1) 1, from among the railroad liabilities KRNA has succeeded to under paragraph (1) shall be inclusively succeeded to by KORAIL when the State investment of the operation property in kind in KORAIL as a high-speed railroad is completed.
(3) Where KRNA reversion of the facility property to the State under Article 23 (5) as a high-speed railroad is completed, the Minister of Construction and Transportation shall establish a right to manage railroad facilities for KRNA. In such cases, the survival period of the right to manage railroad facilities in question shall be temporary until KRNA redeems the principal and interest of facility liabilities KRNA succeeds to under Article 24 (2).
(4) The CEO of the Korea National Railroad shall take necessary measures to prepare for opening of the high-speed railroad and taking over operation property, liabilities, etc. until KORAIL is established.
Article 3 (Special Cases concerning Disposal of Operation Property, etc.)
Pertaining to operation property and operation liabilities, except for operation property and liabilities concerning high-speed railroads to be disposed of under Article 2 of the Addenda, the Korea National Railroad shall temporarily perform the rights and duties relevant thereto until KORAIL is established.
Article 4 (Transitional Measures concerning Formulation of Master Plans for Structural Reform of Railroad Industry)
Master plans pertaining to the structural reform of the railroad industry established through deliberations by the State Council at the time this Act enters into force shall be deemed structural reform plans established under this Act.
Article 5 (Registration for Modification of Railroad Sites, etc)
With respect to the property subject to registration, from among the railroad property to be transferred to the Minister of Construction and Transportation under Article 23 (4), the managing authority of such property is changed to and registered under the Minister of Construction and Transportation, notwithstanding Article 11 of the State Property Act and Article 48-2 of Registration of Real Estate Act.
Article 6 Omitted.
ADDENDA <Act No. 7219, Sep. 23, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 8135, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007.
Articles 2 through 9 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9547, Mar. 25, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 9609, Apr. 1, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 9772, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14547, Jan. 17, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Korea Railway Association)
(1) The Korea Railway Association incorporated upon approval by the Minister of Land, Infrastructure and Transport pursuant to Article 32 of the Civil Act as at the time this Act enters into force (hereinafter referred to as the "Korea Railway Association"), shall be deemed an association established in accordance with the newly inserted provisions of Article 13-2 of the Act. In such cases, the Korea Railway Association shall modify its articles of association so as to meet the requirements prescribed by this Act and obtain authorization from the Minister of Land, Infrastructure and Transport, no later than six months after the enforcement date of this Act.
(2) The Korea Railway Association authorized by he Minister of Land, Infrastructure and Transport pursuant to the latter part of paragraph (1) shall be deemed dissolved immediately upon establishment of an association under this Act, notwithstanding the provisions of the Civil Act regarding dissolution and liquidation of a corporation.