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RAILROAD LOGISTICS INDUSTRY DEVELOPMENT AND SUPPORT ACT

Act No. 14094, Mar. 22, 2016

Amended by Act No. 14113, Mar. 29, 2016

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to enhance competitiveness of the railroad logistics industry and revitalize the industry so as to promote efficiency of the national logistics system and contribute to developing the national economy, by prescribing matters concerning the development of the railroad logistics industry.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "railroad logistics" means freight transportation using rolling stock, and logistics defined in Article 2 of the Framework Act on Logistics Policies which takes place in connection with such freight transportation;
2. The term "railroad logistics facilities" means any of the following facilities related to railroad logistics:
(a) Railroad facilities defined in subparagraph 2 of Article 3 of the Framework Act on Railroad Industry Development;
3. The term "railroad logistics industry" means an industry related to railroad logistics among railroad industries defined in subparagraph 8 of Article 3 of the Framework Act on Railroad Industry Development;
4. The term "railroad logistics business" means any of the following businesses performing logistics activities for a consideration on demand of owners of goods:
(a) Railroad freight transportation business: Business of transporting freight using rolling stock;
(b) Business operating railroad logistics facilities: Business of operating railroad logistics facilities, such as logistics terminals or warehouses;
(c) Railroad logistics services business: Business of providing various services related to railroad logistics, such as mediation of railroad freight transportation, leasing equipment necessary for railroad logistics, processing information on railroad logistics, or consulting on railroad logistics;
5. The term "railroad logistics business entity" means a person who engages in railroad logistics business;
6. The term "international railroad logistics" means railroad logistics that take place between at least two countries.
 Article 3 (Obligations of State, etc.)
(1) The State shall establish and implement policies necessary to develop and support the railroad logistics industry.
(2) To establish an efficient logistics system, the State shall ensure fair competition between freight transportation by railroads and freight transportation by other means of transportation.
(3) Local governments shall endeavor to provide administrative and financial support necessary for revitalizing railroad logistics in harmony with national policies and plans for railroad logistics.
 Article 4 (Relations with other Acts)
This Act shall take precedence over other Acts with regard to railroad logistics.
CHAPTER II PLANS TO DEVELOP RAILROAD LOGISTICS INDUSTRY
 Article 5 (Plans to Develop Railroad Logistics Industry)
(1) In order to enhance competitiveness of railroad logistics and activate the railroad logistics industry, the Minister of Land, Infrastructure and Transport shall formulate and implement a plan to develop the railroad logistics industry (hereinafter referred to as "railroad logistics plan") every five years.
(2) A railroad logistics plan shall contain the following:
1. Medium- and long-term objectives of railroad logistics, and basic direction-setting of relevant policies;
2. Conditions of, and prospects for trends in, the railroad logistics industry;
3. Distribution and use of railroad logistics facilities;
4. Investment in railroad logistics facilities, and securing of finances;
5. Standardization and informatization of railroad logistics;
6. Efficiency of combined transport linking railroads to other means of transportation;
7. Securing international competitiveness of railroad logistics, and promotion of international railroad logistics;
8. Fostering and support for railroad logistics business entities;
9. Any other matters necessary for fostering and developing the railroad logistics industry.
 Article 6 (Procedures for Formulating Railroad Logistics Plans)
(1) Where the Minister of Land, Infrastructure and Transport intends to formulate or amend a railroad logistics plan, he/she shall consult with the heads of related central administrative agencies and then refer the plan to the Railroad Industry Committee under Article 6 of the Framework Act on Railroad Industry Development for deliberation: Provided, That the same shall not apply to any amendment to insignificant matters prescribed by Presidential Decree.
(2) Where the Minister of Land, Infrastructure and Transport formulates or amends a railroad logistics plan, he/she shall publicly notify such fact in the Official Gazette and notify the heads of related central administrative agencies thereof.
(3) The Minister of Land, Infrastructure and Transport may request any of the following persons to submit relevant materials for formulating or amending a railroad logistics plan. In such cases, a person so requested shall comply with such request, except in extenuating circumstances:
1. The head of a related central administrative agency;
2. The Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor (hereinafter referred to as the "Mayor/ Do Governor");
3. Korea Railroad Corporation established pursuant to the Korea Railroad Corporation Act (hereinafter referred to as "Railroad Corporation");
4. Korea Rail Network Authority established pursuant to the Korea Rail Network Authority Act (hereinafter referred to as "Rail Network Authority");
5. A railroad logistics business entity, a railroad service provider defined in subparagraph 8 of Article 2 of the Railroad Service Act (hereinafter referred to as "railroad service provider"), or a logistics enterprise under the Framework Act on Logistics Policies.
 Article 7 (Relations with other Plans)
A railroad logistics plan shall correlate with a plan for a national core transport network referred to in Article 4 of the National Transport System Efficiency Act, a master plan for national logistics referred to in Article 11 of the Framework Act on Logistics Policies, a master plan for railroad industry development referred to in Article 5 of the Framework Act on Railroad Industry Development, a construction plan for national railroad networks referred to in Article 4 of the Railroad Construction Act, and with a comprehensive plan for the development of logistics facilities referred to in Article 4 of the Act on the Development and Management of Logistics Facilities.
CHAPTER III INVESTMENT IN RAILROAD LOGISTICS FACILITIES
 Article 8 (Expansion, etc. of Railroad Logistics Facilities)
(1) The State and local governments shall endeavor to secure railroad logistics facilities required to facilitate managing railroad logistics.
(2) In order to enforce matters specified in Article 5 (2) 4 in a railroad logistics plan, the Minister of Land, Infrastructure and Transport shall formulate and implement policies for the following:
1. Construction, improvement, integration, or closing of railroad freight stations to create a hub station for railroad freight referred to in Article 9;
2. Construction and improvement of tracks, clearance (referring to the maximum length of the relevant track capable of accommodating trains without obstructing the entry of trains and vehicles on adjacent tracks), signal facilities, etc. to efficiently operate freight trains;
3. Improvement of facilities required to transport, store and unload railroad freight;
4. Construction and improvement of any other railroad logistics facilities to develop the railroad logistics industry.
 Article 9 (Hub Station for Railroad Freight)
(1) The Minister of Land, Infrastructure and Transport shall designate a railroad freight station which manages railroad freight and serves as a hub for developing the railroad logistics industry (hereinafter referred to as "hub station"); and may prioritize such hub station over other railroad freight stations in subsidizing expenses incurred in improving, integrating or closing railroad freight stations.
(2) The standards and method for designating a hub station, subsidization for expenses, and other necessary matters shall be prescribed by Presidential Decree.
 Article 10 (Securing of Substitute Facilities)
(1) Where necessary to relocate railroad logistics facilities owned by the State or Railroad Corporation because tracks have been moved or removed due to a railroad construction project under the Railroad Construction Act, the operator of the railroad construction project shall secure substitute facilities: Provided, That the same shall not apply where the Minister of Land, Infrastructure and Transport deems it unnecessary to secure substitute facilities because demand for railroad logistics is considerably low.
(2) Where it is necessary to relocate railroad logistics facilities which are owned, or the construction cost of which has been borne, by a railroad logistics business entity (excluding Railroad Corporation) because tracks have been moved or removed due to a railroad construction project under the Railroad Construction Act, the operator of the railroad construction project or the relevant person who has requested railroad construction may bear some of the expenses incurred in relocating such facilities, in accordance with the standards prescribed by Presidential Decree.
 Article 11 (Construction, etc. of Lead-In Rail Tracks)
(1) The Minister of Land, Infrastructure and Transport and the Mayor/Do Governor may construct lead-in rail tracks at major logistics hubs, which satisfy the standards prescribed by Presidential Decree including the quantity of railroad freight transported, the scale of logistics facilities and operating expenses, such as an industrial complex referred to in Articles 6, 7, and 7-2 of the Industrial Sites and Development Act, a logistics complex referred to in Articles 22 and 22-2 of the Act on the Development and Management of Logistics Facilities, a harbor referred to in Article 3 of the Harbor Act, or an airport referred to in Article 2 of the Airport Facilities Act, in accordance with a construction plan for national railroad networks referred to in Article 4 of the Railroad Construction Act. <Amended by Act No. 14113, Mar. 29, 2016>
(2) Where the Minister of Land, Infrastructure and Transport and the Mayor/Do Governor constructs lead-in rail tracks pursuant to paragraph (1), he/she shall endeavor to construct railroad logistics facilities for transportation, storage and unloading of freight as well.
CHAPTER IV DEVELOPMENT OF RAILROAD LOGISTICS INDUSTRY
 Article 12 (Allocation of Track Capacity)
Where the Minister of Land, Infrastructure and Transport allocates track capacity (referring to the frequency of train operations permitted on a given track) to railroad service providers, he/she shall do so fairly for both railroad service providers transporting passengers and railroad service providers transporting freight.
 Article 13 (Charging Fees for Railroad Facilities)
(1) Where the Minister of Land, Infrastructure and Transport establishes standards for collecting fees for railroad facilities referred to in Article 31 of the Framework Act on Railroad Industry Development, he/she shall establish separate standards for freight trains.
(2) Where the Minister of Land, Infrastructure and Transport establishes standards for charging fees under paragraph (1), he/she shall take into account the operating schedule and frequency of freight trains, the current management status of the relevant railroad freight transportation business entity (referring to a person who engages in railroad freight transportation business; hereinafter the same shall apply), social benefits of railroad logistics, etc.
 Article 14 (Standardization of Railroad Logistics)
(1) The Minister of Land, Infrastructure and Transport shall formulate policies necessary for standardizing railroad logistics facilities, equipment, transportation containers, etc. in order to enhance efficiency of railroad logistics and revitalize transportation combined with other means of transportation.
(2) The Minister of Land, Infrastructure and Transport may request the Minister of Trade, Industry and Energy to establish, amend or abolish the Korean industrial standards under the Industrial Standardization Act, if necessary to effectively perform duties related to the standardization of railroad logistics.
(3) If necessary to facilitate the dissemination of standards for railroad logistics, the Minister of Land, Infrastructure and Transport may recommend related central administrative agencies, public institutions under the Act on the Management of Public Institutions, and railroad logistics business entities to construct, purchase, manufacture or use facilities, equipment or transportation containers in compliance with the standards for railroad logistics; or to package goods according to the specifications under the standards for railroad logistics.
 Article 15 (Informatization of Railroad Logistics)
(1) The Minister of Land, Infrastructure and Transport shall formulate policies necessary for informatization of railroad logistics in order to systematically manage railroad logistics and enhance convenience of railroad logistics business entities.
(2) In order to promote informatization of railroad logistics, the Minister of Land, Infrastructure and Transport may conduct any of the following projects:
1. Construction of a database and information provision system related to railroad logistics;
2. Development and proliferation for an information management system related to railroad logistics;
3. Development and operation of programs necessary for informatization of railroad logistics;
4. Expansion of facilities necessary for informatization of railroad logistics;
5. Any other projects prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to promote informatization of railroad logistics.
(3) Where a railroad logistics business entity conducts any project specified in any subparagraph of paragraph (2), the Minister of Land, Infrastructure and Transport may fully or partially subsidize expenses incurred in conducting the project.
 Article 16 (Promotion of Railroad Freight Transportation)
(1) To ensure efficient and safe transportation, the State shall promote transportation of any of the following freight by rolling stock:
(2) The Minister of Land, Infrastructure and Transport may provide necessary administrative and financial support for railroad logistics business entities, owners of goods, etc. who intend to transport freight referred to in any subparagraph of paragraph (1) using rolling stock, as prescribed by Presidential Decree.
 Article 17 (Subsidization for Expenses, and Discount on or Exemption from Expenses)
(1) The Minister of Land, Infrastructure and Transport may fully or partially subsidize expenses incurred by a railroad logistics business entity in conducting any of the following projects, as prescribed by Presidential Decree:
1. Construction or improvement of tracks or a railroad freight station;
2. Investment in facilities for transportation, storage and unloading of freight using railroads;
3. Investment for modernization, automation or standardization of railroad logistics facilities;
4. Introduction or improvement of rolling stock or transportation containers to transport railroad freight;
5. Any other expansion or improvement of facilities prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport to enhance efficiency of railroad logistics.
(2) Where a railroad logistics business entity conducts a project specified in paragraph (1) 1 or 2, the State or the relevant local government may grant such business entity a discount on, or an exemption from, any of the following charges, as prescribed by Presidential Decree:
1. Infrastructure-building fees referred to in Article 68 of the National Land Planning and Utilization Act;
2. Charges for preservation of development restriction zones referred to in Article 21 of the Act on Special Measures for Designation and Management of Development Restriction Zones;
3. Costs incurred in creating substitute grassland referred to in Article 23 of the Grassland Act;
4. Charges on load-generating entities for sewerage systems referred to in Article 61 of the Sewerage Act.
CHAPTER V PROMOTION OF INTERNATIONAL RAILROAD LOGISTICS
 Article 18 (Designation of International Railroad Freight Transportation Business Entity)
(1) The Minister of Land, Infrastructure and Transport may designate and foster an international railroad freight transportation business entity (referring to a railroad freight transportation business entity that conducts railroad freight transportation business via at least two countries, including the Republic of Korea; hereinafter the same shall apply) from among railroad freight transportation business entities, in compliance with the standards prescribed by Presidential Decree, such as capital, liabilities, and past record of performance of railroad freight transportation.
(2) The State may provide administrative and financial support necessary for introducing rolling stock and securing railroad logistics facilities and other facilities and equipment satisfying international railroad logistics standards, so that an international railroad freight transportation business entity designated pursuant to paragraph (1) can conduct international railroad freight transportation business.
(3) Where an international railroad freight transportation business entity designated pursuant to paragraph (1) falls under any of the following cases, the Minister of Land, Infrastructure and Transport may revoke such designation, as prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport:
1. Where the relevant business entity has been designated by fraudulent or other wrongful means;
2. Where the relevant business entity fails to meet the designation standards referred to in paragraph (1) and fails to rectify the substandard matters within 90 days from the date of designation;
3. Where the relevant business entity's license for railroad service referred to in Article 5 of the Railroad Service Act has been revoked, or the business entity's railroad freight transportation business is verified to have been discontinued.
 Article 19 (Internationalization of Railroad Logistics Industry)
In order to revitalize railroad logistics business entities' overseas expansion and facilitate internationalization of the railroad logistics industry, the Minister of Land, Infrastructure and Transport may provide administrative and financial support in relation to the following:
1. Current status of overseas railroad logistics industries and market research;
2. Technology development and manpower cultivation;
3. International exchanges of information, technology and human resources related to railroad logistics, such as joint research, technical cooperation, international conferences, and activities of international organizations;
4. Any other activities prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport for internationalization of the railroad logistics industry.
CHAPTER VI SUPPLEMENTARY PROVISIONS AND PENAL PROVISIONS
 Article 20 (Delegation, Entrustment, etc. of Authority)
(1) The Minister of Land, Infrastructure and Transport may delegate part of his/her authority under this Act to the Mayor/Do Governor, as prescribed by Presidential Decree.
(2) The Minister of Land, Infrastructure and Transport may entrust part of his/her duties under this Act to Railroad Corporation or Rail Network Authority, as prescribed by Presidential Decree.
 Article 21 (Administrative Fines)
The Minister of Land, Infrastructure and Transport shall impose an administrative fine not exceeding ten million won on a person who has been designated as an international railroad freight transportation business entity referred to in Article 18 (1) by fraudulent or other wrongful means, in accordance with the standards prescribed by Presidential Decree.
ADDENDUM
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14113, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 18 Omitted.