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SPECIAL ACT ON THE DESIGNATION AND PROMOTION OF ENERGY INDUSTRY CONVERGENCE COMPLEXES

Act No. 15180, Dec. 12, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to reinforcing national competitiveness and to developing regional economy by facilitating the agglomeration and convergence of energy industries and energy-related industries by means of the designation and fostering of energy industry convergence complexes and by creating advanced technologies through supporting research and development, etc. related thereto.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "energy industry convergence complex" means a zone designated pursuant to Article 8 (1) as an area to facilitate the agglomeration and convergence of energy industries and energy-related industries;
2. The term "energy industry" means an industry prescribed by Presidential Decree, which is related to the production, supply and use of energy, and new and renewable energy which are prescribed in Article 2 of the Energy Act;
3. The term "energy-related industry" means an industry prescribed by Presidential Decree, which has a significant impact on connecting energy industries to front and rear industries or has a high potential for advancement through convergence;
4. The term "priority energy industry" means an industry designated pursuant to Article 13 (1), which is an energy industry or energy-related industry to which the energy industry convergence complex places priority for its fosterage;
5. The term "energy-specialized enterprise" means an enterprise designated pursuant to Article 14 in relation to priority energy industries.
 Article 3 (Responsibilities and Obligations of State and Local Governments)
The State and local governments shall prepare and promote measures necessary to foster energy industries and energy-related industries (hereinafter referred to as "energy industries, etc.") and create and support energy industry convergence complexes.
 Article 4 (Relations with Other Acts)
Except as otherwise provided for in other Acts, this Act shall apply preferentially to energy industry convergence complexes.
CHAPTER II FORMULATION, ETC. OF MASTER PLANS FOR ENERGY INDUSTRY CONVERGENCE COMPLEXES
 Article 5 (Formulation, Revision, etc. of Master Plans for Energy Industry Convergence Complexes)
(1) The Minister of Trade, Industry and Energy shall formulate a master plan for energy industry convergence complexes (hereinafter referred to as "master plan") for the systematic development of energy industry convergence complexes every five years.
(2) Where the Minister of Trade, Industry and Energy intends to formulate a master plan, he/she shall gather the opinions of the Special Metropolitan City Mayors, Metropolitan City Mayors, Mayors of the Special Self-Governing Cities, Do Governors or Governors of the Special Self-Governing Provinces (hereinafter referred to as City Mayor/Do Governor") and consult with the heads of the relevant central administrative agencies, and then undergo deliberation by the Energy Committee prescribed in Article 9 of the Energy Act (hereinafter referred to as the "Energy Committee").
(3) If necessary due to changes in domestic and overseas trends related to energy industries, etc., the Minister of Trade, Industry and Energy may revise master plans.
(4) Paragraph (2) shall apply mutatis mutandis to the revision of master plans: Provided, That the same shall not apply to the revision of minor matters prescribed by Presidential Decree.
(5) Where the Minister of Trade, Industry and Energy formulates or revises a master plan, he/she shall publish the details thereof in the Official Gazette and notify the relevant City Mayors/Do Governors thereof without delay.
 Article 6 (Matters to Be Included in Master Plans)
Every master plan shall include the following matters:
1. Matters concerning the basic goals of designating and fostering energy industry convergence complexes and directions of mid- and long-term development thereof;
2. Matters concerning the agglomeration, convergence, etc. of energy industries, etc. within energy industry convergence complexes;
3. Matters concerning strategies for the specialized development of each energy industry convergence complex;
4. Matters concerning zones eligible for energy industry convergence complexes and the creation thereof;
5. Matters concerning the designation of and support for energy industry convergence complexes;
6. Other matters prescribed by Presidential Decree, which are necessary for developing energy industry convergence complexes.
 Article 7 (Fact-Finding Survey)
(1) If necessary to formulate or revise a master plan, the Minister of Trade, Industry and Energy may conduct a fact-finding survey on the current status, etc. of the agglomeration and convergence of energy industries, etc.
(2) The scope and methods of fact-finding surveys prescribed in paragraph (1) and other matters necessary therefor shall be prescribed by Presidential Decree.
 Article 8 (Formulation of Creation Plans and Designation of Energy Industry Convergence Complexes)
(1) If it is necessary to create an energy industry convergence complex, the Minister of Trade, Industry and Energy may designate an energy industry convergence complex in an area satisfying the requirements in Article 9 by formulating an energy industry convergence complex creation plan which includes the matters in the subparagraphs of Article 10 (1) (hereinafter referred to as "creation plan") after consulting with the heads of the relevant central administrative agencies and with the competent City Mayors/Do Governors and undergoing deliberation by the Energy Committee.
(2) Every City Mayor/Do Governor may request the Minister of Trade, Industry and Energy to designate an energy industry convergence complex prescribed in paragraph (1) within the district under his/her jurisdiction: Provided, That if the target district is spanning at least two districts under the jurisdiction of Special Metropolitan Cities, Metropolitan Cities, Special Self-Governing Cities, Dos or Special Self-Governing Provinces, the designation shall be requested jointly by the relevant City Mayors/Do Governors.
(3) Where a City Mayor/Do Governor intends to request for the designation of an energy industry convergence complex pursuant to paragraph (2), he/she shall prepare a plan to create such complex in the district under his/her jurisdiction and submit it to the Minister of Trade, Industry and Energy.
(4) Where the Minister of Trade, Industry and Energy receives a request for the designation of an energy industry convergence complex from a City Mayor/Do Governor pursuant to paragraph (2), he/she shall designate the energy industry convergence complex after determining the creation plan by undergoing consultation with the heads of the relevant central administrative agencies and deliberation by the Energy Committee. In such cases, he/she shall listen to the opinions of the competent City Mayors/Do Governors.
(5) Where the Minister of Trade, Industry and Energy designates an energy industry convergence complex pursuant to paragraph (1) or (4), he/she shall publish the details thereof in the Official Gazette as prescribed by Presidential Decree, and notify the competent City Mayors/Do Governors thereof without delay.
(6) Any City Mayor/Do Governor who receives a notice pursuant to paragraph (5) shall allow the public reading of the details thereof to the residents for at least 14 days.
(7) Other matters necessary for designating energy industry convergence complexes, and formulating, implementing, etc. creation plans shall be prescribed by Presidential Decree.
 Article 9 (Requirements for Designating Energy Industry Convergence Complexes)
The designator of energy industry convergence complexes shall be granted to areas satisfying the following requirements:
1. Complying with the master plan;
2. Having effects on the agglomeration and convergence of energy industries, etc.;
3. Possible to secure infrastructures necessary for energy industry convergence complexes;
4. Contributable to the development of regional economy by creating jobs, etc.;
5. Complying with other requirements prescribed by Presidential Decree, such as security of professional manpower, and possibility of sustainable development.
 Article 10 (Matters to Be Included in and Revision of Energy Industry Convergence Complex Creation Plans)
(1) Every energy industry convergence complex creation plan shall include the following matters:
1. Name, location and size of the energy industry convergence complex;
2. Compliance with the master plan;
3. Necessity of creating the energy industry convergence complex and the effects thereof;
4. Plan for fostering priority energy industries;
5. Plan for designating and supporting energy-specialized enterprises;
6. Financing plan;
7. Other matters prescribed by Presidential Decree.
(2) If necessary to effectively create an energy industry convergence complex or requested by City Mayors/Do Governors, the Minister of Trade, Industry and Energy may revise formulated or determined creation plans by undergoing deliberation by the Energy Committee: Provided, That where he/she intends to revise minor matters prescribed by Presidential Decree, he/she may choose not to undergo deliberation by the Energy Committee.
(3) Where a City Mayor/Do Governor intends to request a revision prescribed in paragraph (2), he/she shall submit documents prescribed by Ordinance of the Ministry of Trade, Industry and Energy.
(4) Article 8 shall apply mutatis mutandis to procedures for revising creation plans prescribed in paragraph (2).
 Article 11 (Cancellation of Designation of Energy Industry Convergence Complexes)
(1) Where an energy industry convergence complex designated pursuant to Article 8 falls under any of the following cases, the Minister of Trade, Industry and Energy may cancel the entire or part of the designation of the energy industry convergence complex by undergoing deliberation by the Energy Committee. The same shall apply where a City Mayor/Do Governor requests the cancellation of designation:
1. Where it is impossible or expected to be impossible to achieve the purpose of designating an energy industry convergence complex;
2. Where there are causes prescribed by Presidential Decree, which are equivalent to subparagraph 1.
(2) Where a City Mayor/Do Governor intends to request the cancellation of designation prescribed in paragraph (1), he/she shall submit documents prescribed by Ordinance of the Ministry of Trade, Industry and Energy.
(3) Article 8 shall apply mutatis mutandis to procedures for cancelling the designation of energy industry convergence complexes prescribed in paragraph (1).
CHAPTER III SUPPORT. ETC. FOR PRIORITY ENERGY INDUSTRIES, ETC.
 Article 12 (Support for Infrastructures of Energy Industry Convergence Complexes)
(1) The State and local governments may support the installation of infrastructures, etc. necessary for the systematic and sustainable development of energy industry convergence complexes.
(2) Matters necessary for eligibility for, and size, methods, etc. of support prescribed in paragraph (1) shall be prescribed by Presidential Decree.
 Article 13 (Designation of and Support for Priority Energy Industries)
(1) The Minister of Trade, Industry and Energy may designate energy industries, etc. intended to be fostered in priority in energy industry convergence complexes as priority energy industries by undergoing deliberation by the Energy Committee.
(2) In order to invigorate the agglomeration and convergence of priority energy industries, the State and local governments may provide supports necessary for invigorating research and development, facilitating exchange between priority energy industries and commercialization, etc.
(3) The State and local governments may formulate supporting policies to facilitate the technology development of priority energy industries and induce the expansion of investment in research and development, and provide subsidies for costs necessary therefor.
(4) Matters necessary for eligibility, criteria and procedures for the designation of priority energy industries prescribed in paragraph (1) shall be prescribed by Presidential Decree.
 Article 14 (Designation of Energy-Specialized Enterprises)
The Minister of Trade, Industry and Energy may designate enterprises satisfying all the following requirements among enterprises moving to energy industry convergence complexes as energy-specialized enterprises: Provided, That no electricity generation business operators prescribed in subparagraph 4 of Article 2 of the Electric Utility Act shall be designated as energy-specialized enterprises:
1. The sales amount of producing, supplying or using energy, and new and renewable energy prescribed in Article 2 of the Energy Act in the total sales amount falls into the criteria prescribed by Presidential Decree;
2. An enterprise not belonging to business groups subject to limitations on cross shareholding prescribed in Article 14 (1) of the Monopoly Regulation and Fair Trade Act;
3. An enterprise satisfying requirements prescribed by Presidential Decree in terms of technical level, business capability, etc.
 Article 15 (Tax Support)
Every local government may, if necessary for energy-specialized enterprises, reduce or exempt from local taxes, as prescribed by the Restriction of Special Local Taxation Act and Municipal Ordinance.
 Article 16 (Support for Research and Development)
For research and development on energy-related technology, services, etc., the State, local governments and public institutions may support energy-specialized enterprises.
 Article 17 (Designation of Specialized Research Institutions)
(1) For the promotion of research and development on energy-related technologies, services, etc. and business related thereto, the Minister of Trade, Industry and Energy may designate research institutions, research institutes or organizations which are related to energy industries, etc. as specialized research institutions.
(2) The Minister of Trade, Industry and Energy may provide specialized research institutions designated pursuant to paragraph (1) (hereinafter referred to as "specialized research institution") with subsidies for the whole or some of the costs incurred in research and development, management, etc.
(3) Where a specialized research institution no longer satisfies the requirements for designation prescribed in paragraph (4), the Minister of Trade, Industry and Energy may withdraw the designation thereof.
(4) Other matters necessary for requirements and procedures for and withdrawal of designation of specialized research institutions, scope of support, etc. shall be prescribed by Presidential Decree.
 Article 18 (Fostering, etc. of Professional Manpower)
(1) The State and local governments shall formulate and promote policies for the fostering, management, etc. of manpower having professional techniques, knowledge, etc. on energy industries, etc. (hereinafter referred to as "professional manpower").
(2) Policies prescribed in paragraph (1) shall include the following matters:
1. Matters concerning the fostering, and education and training of professional manpower;
2. Matters concerning the supply and demand, and utilization of professional manpower;
3. Other matters prescribed by Presidential Decree for the fostering, management, etc. of professional manpower.
(3) For the fostering of professional manpower, the Minister of Trade, Industry and Energy may designate universities, research institutes, institutions or organizations which are related to energy industries, etc. as professional manpower fostering institutions.
(4) The Minister of Trade, Industry and Energy may provide professional manpower fostering institutions designated pursuant to paragraph (3) with subsidies for the costs incurred in education, training, etc.
(5) Where a professional manpower fostering institution falls short of the requirements for designation prescribed in paragraph (6), the Minister of Trade, Industry and Energy may withdraw the designation thereof.
(6) Other matters necessary for the requirements and procedures for and the withdrawal of designation of professional manpower fostering institutions, scope of support, etc. shall be prescribed by Presidential Decree.
 Article 19 (Programs and Support for International Exchange, etc.)
In order to ascertain international trends related to energy industries, etc. and to facilitate international cooperation and making inroads into overseas markets, the State and local governments may implement international exchange programs for professional manpower and specialized research institutions and industry-academic-research international joint research programs or provide support necessary therefor.
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 20 (Delegation of Authority)
Part of authority of the Minister of Trade, Industry and Energy which is vested by this Act may be delegated to City Mayors/Do Governors as prescribed by Presidential Decree.
ADDENDUM
This Act shall enter into force six months after the date of its promulgation.