The purpose of this Act is to contribute to the development of the national economy by facilitating their repatriation to Korea through preparation of a system to efficiently assist Korean off-shore enterprises in repatriation to and resettlement in Korea.
The terms used in this Act shall be defined as follows:
| 1. | The term "off-shore enterprise" means an enterprise that meets all of the following requirements: |
| (b) | The enterprise shall have engaged in a manufacturing business classified according to the Korean Standard Industrial Classification, publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act, for at least two consecutive years at its own overseas place of business or through an overseas place of business owned by another enterprise under the de factocontrol of the former enterprise; |
| 2. | The term "place of business" means a place where manufacturing activities are conducted with manufacturing or testing and manufacturing facilities (including facilities for processing, assembling, and repairing goods) necessary for the manufacturing business referred to in subparagraph 1 (b); |
| 3. | The term "repatriation" means that an off-shore enterprise liquidates, transfers, or downsizes its overseas place of business (including where an off-shore enterprise without a place of business in Korea maintains its overseas place of business; the same shall apply hereinafter) and newly establishes or expands its place of business in Korea to produce products identical with those produced in the overseas place of business, as prescribed by Presidential Decree; |
| 4. | The term "repatriating enterprise" means either of the following enterprises: |
| (a) | An enterprise that has been repatriated to Korea and possesses a newly established or expanded place of business in Korea; |
| (b) | An enterprise in the course of repatriation to Korea, following the procedure prescribed by Presidential Decree for the liquidation, transfer, or downsizing of its overseas place of business. |
| Article 3 (Responsibilities of State and Local Governments) |
The State and local governments shall formulate and implement policies necessary to assist off-shore enterprises in repatriation to, and resettlement in, Korea.
| Article 4 (Relationship to other Acts) |
Except as otherwise expressly provided for in any other Act, the selection of, and assistance to, off-shore enterprises and repatriating enterprises shall be governed by the provisions of this Act.
| Article 5 (Formulation and Implementation of Plans for Assisting Repatriating Enterprises) |
| (1) | The Minister of Trade, Industry, and Energy shall formulate and implement a plan for assisting repatriating enterprises (hereinafter referred to as "assistance plan") to efficiently accomplish the purposes of this Act. |
| (2) | The assistance plan shall include the following: |
| 1. | Basic direction-setting for policies on assistance to repatriating enterprises; |
| 2. | Current conditions of, and prospects for, the management of off-shore enterprises; |
| 3. | Matters concerning demand for repatriating enterprises by industry; |
| 4. | A scheme to encourage off-shore enterprises to repatriate; |
| 5. | Matters concerning enhancing the competitiveness of repatriating enterprises; |
| 6. | Other matters specified by Presidential Decree to assist repatriating enterprises. |
| (3) | The Minister of Trade, Industry, and Energy may request related agencies to submit data to formulate the assistance plan, and the agencies in receipt of a request to submit data shall comply therewith, except in special circumstances. |
| Article 6 (Consultation with Related Agencies) |
The Minister of Trade, Industry, and Energy shall consult with related agencies, as prescribed by Presidential Decree, when he/she intends to take a measure regarding any of the following matters:
| 1. | Formulation or revision of the assistance plan (excluding minor matters specified by Presidential Decree); |
| 2. | Improvement of the system to assist repatriating enterprises; |
| 3. | Financial assistance to repatriating enterprises; |
| 4. | Site location assistance for repatriating enterprises; |
| 5. | Designation of industrial complexes under Article 16 (3); |
| 6. | Other matters specified by the Minister of Trade, Industry, and Energy to assist repatriating enterprises. |
| Article 7 (Selection of Repatriating Enterprises Eligible for Assistance) |
| (1) | In order to assist off-shore enterprises in repatriation to, and resettlement in, Korea, the Minister of Trade, Industry, and Energy may select enterprises that meet all of the following requirements as repatriating enterprises eligible for assistance, from among repatriating enterprises: |
| 2. | An enterprise that has downsized its overseas place of business in compliance with the guidelines prescribed by Ordinance of the Ministry of Trade, Industry and Energy, if the enterprise has downsized its overseas place of business; |
| 3. | Other requirements prescribed by Presidential Decree to achieve the objectives of policies on assistance to repatriating enterprises. |
| (2) | An enterprise that intends to be selected as a repatriating enterprise eligible for assistance under paragraph (1) shall file an application with the Minister of Trade, Industry, and Energy, along with all the following documents, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy: |
| 1. | A report on the current conditions of overseas and domestic places of business; |
| 2. | A repatriation plan in regard to the liquidation, transfer, or downsizing of the overseas place of business and the establishment of expansion of the domestic place of business; |
| 3. | Other documents specified by Presidential Decree. |
| (3) | If an enterprise is in the course of repatriation, the Minister of Trade, Industry, and Energy may select the enterprise as a repatriating enterprise eligible for assistance on the following conditions: In such cases, the relevant enterprise shall include its plan to fulfill such conditions in the repatriation plan referred to in paragraph (2): |
| 1. | If the enterprise has not completed establishing or expanding its domestic place of business, it shall complete establishing or expanding the domestic place of business by the deadline set by the Minister of Trade, Industry, and Energy; |
| 2. | If the enterprise has not finalized liquidating or transferring its overseas place of business, it shall complete liquidating or transferring the overseas place of business by the deadline set by the Minister of Trade, Industry, and Energy; |
| 3. | If the enterprise has not completed downsizing its overseas place of business, it shall downsize the overseas place of business by the deadline set by the Minister of Trade, Industry, and Energy in compliance with the guidelines determined by the Minister of Trade, Industry, and Energy; |
| 4. | Other conditions that the Minister of Trade, Industry, and Energy deems necessary for achieving the policy objectives for the system to assist repatriating enterprises and for effectively assisting repatriating enterprises. |
| (4) | Upon receipt of an application filed under paragraph (2), the Minister of Trade, Industry, and Energy shall determine whether to select the applicant as a repatriating enterprise eligible for assistance, as prescribed by Presidential Decree, and shall issue a letter of confirmation to the enterprise so selected as a repatriating enterprise eligible for assistance, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. |
| (5) | If a change occurs with respect to a repatriation plan detailing the liquidation, transfer, or downsizing of its overseas place of business or the establishment or expansion of its domestic place of business or any other matter specified by Presidential Decree, the repatriating enterprise selected as one eligible for assistance under paragraph (4), shall notify the Minister of Trade, Industry, and Energy of the change. |
| Article 8 (Revocation of Selection of Repatriating Enterprises Eligible for Assistance) |
| (1) | If a repatriating enterprise selected as eligible for assistance falls under any of the following case, the Minister of Trade, Industry, and Energy may revoke the eligibility of the enterprise selected as eligible for assistance: Provided, That the eligibility of such enterprise must be revoked in cases falling under subparagraph 1 or 2: |
| 1. | If the enterprise files its application for selection by fraudulent or other illegal means; |
| 2. | If the repatriating enterprise eligible for assistance closes its business or fails to operate the newly established or expanded place of business after repatriation or at least two consecutive years; |
| 3. | If any description in the application is false; |
| 4. | If the enterprise fails to comply with the repatriation plan under Article 7 (2) 2; |
| 5. | If the enterprise fails to meet the requirements for selection provided for in Article 7 (1) as a consequence of a change notified pursuant to Article 7 (5); |
| 6. | If the enterprise fails to meet any requirement prescribed by Presidential Decree in circumstances similar to those referred to in subparagraphs 1 through 5. |
| (2) | If the Minister of Trade, Industry, and Energy revokes the eligibility of a repatriating enterprise as eligible for assistance or if a significant change that affects the scope of assistance occurs, the Minister of Trade, Industry, and Energy shall notify the relevant enterprise, agencies, and local government of such revocation or change. |
| (3) | When the Minister of Trade, Industry, and Energy intends to revoke selection under paragraph (1), he/she shall hold a hearing. |
| Article 9 (Fact-Finding Surveys) |
| (1) | The Minister of Trade, Industry, and Energy may conduct fact-finding surveys on off-shore enterprises and repatriating enterprises and collate and prepare statistical data in order to formulate and implement the assistance plan. |
| (2) | In order to effectively implement the system for selecting and assisting repatriating enterprises eligible for assistance, the Minister of Trade, Industry, and Energy may conduct fact-find surveys on the current situation, etc. of overseas and domestic places of business of repatriating enterprises, selected under this Act as eligible for assistance. |
| (3) | If necessary for conducting fact-finding surveys and for collating and compiling statistical data under paragraphs (1) and (2), the Minister of Trade, Industry, and Energy may request related agencies to submit data. In such cases, the related agencies in receipt of a request to submit data shall comply therewith, except in special circumstances. |
| (4) | No one who performs a duty related to fact-finding surveys or the collation and compilation of statistical data under paragraphs (1) through (3) shall divulge information related to any trade secret of the relevant enterprise or use such information for any purpose other than the specified purpose for which it is provided. |
| Article 10 (Entrustment of Business Affairs) |
The Minister of Trade, Industry, and Energy may partially entrust the business affairs related to the selection of repatriating enterprises eligible for assistance and the revocation of such selection, including the acceptance of documents and the verification of facts in the documents filed, and the fact-finding surveys under Article 9 to the Korea Trade-Investment Promotion Agency under the Korea Trade-Investment Promotion Agency Act (hereinafter referred to as "Korea Trade-Investment Promotion Agency"), as prescribed by Presidential Decree.
| Article 11 (Tax Exemptions or Reductions) |
| Article 12 (Financial Assistance) |
| (1) | The State or a local government may assist a repatriating enterprise eligible for assistance in obtaining loans and financing, taking into consideration the scale of jobs created, whether the enterprise engages in an advanced type of business, the appropriateness of site location, etc. |
| (2) | The State or a local government may subsidize a repatriating enterprise eligible for assistance for the cost of purchasing land, or facility investments, as prescribed by Presidential Decree, if the enterprise establishes or expands its place of business in an area specified by Presidential Decree, taking into consideration the scale of business, etc. |
| Article 13 (Site-Location Assistance) |
| Article 14 (Assistance in Human Resources) |
| (1) | The State or a local government may provide institutional and administrative assistance to repatriating enterprises eligible for assistance for the smooth referral of human resources to such enterprises. |
| (2) | The State or a local government may grant employment subsidies to repatriating enterprises eligible for assistance in order to smoothly secure human resources and improve job creation effects in Korea. |
| Article 15 (Assistance in Liquidation, etc. of Overseas Places of Business) |
The State or a local government may assist off-shore enterprises in the liquidation, transfer, or downsizing of their overseas places of business for smooth repatriation.
| Article 16 (Assistance to Enterprises Repatriating Together) |
| (1) | When at least two repatriating enterprises eligible for assistance meet both of the following requirements in repatriating together, the State or the competent local government may establish common facilities and provide necessary assistance, taking into consideration the job creation effects in Korea, the contribution to the regional economy, etc.: |
| 1. | The types of business in which such enterprises engage shall be identical, similar, or related; |
| 2. | The newly established or expanded domestic places of business shall be close to one another. |
| (2) | If the State or a local government finds it necessary to change the types of business eligible for taking occupancy in an industrial complex for the smooth supply of industrial complexes to repatriating enterprises together, it may reflect such change in the master plan for the management of industrial complexes formulated under Article 33 of the Industrial Cluster Development and Factory Establishment Act. |
| (3) | If the Minister of Trade, Industry, and Energy deems it necessary for the smooth repatriation of repatriating enterprises together, he/she may request the designating authority of industrial complexes to designate an industrial complex for repatriating enterprises together under the Industrial Sites and Development Act. |
| Article 17 (Establishment of Support Center for Repatriating Enterprises) |
| (1) | A support center for repatriating enterprises shall be established within the Korea Trade-Investment Promotion Agency to comprehensively provide repatriating enterprises with consulting, guidance, public relations, surveys, research and other assistance. |
| (2) | If the president of the Korea Trade-Investment Promotion Agency deems it necessary for providing services related to repatriating enterprises, he/she may request related agencies to dispatch executives and employees of the related agencies to the support center for repatriating enterprises. |
| (3) | Matters necessary for the organization, management, and supervision of the support center for repatriating enterprises under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 18 (Legal Fiction as Public Officials in Application of Penal Provisions) |
The executives and employees of the Korea Trade-Investment Promotion Agency that engage in business affairs entrusted by the Minister of Trade, Industry, and Energy shall be deemed public officials for purposes of penal provisions of Articles 127 and 129 through 132 of the Criminal Act.
| Article 19 (Penal Provisions) |
Any of the following persons shall be punished by imprisonment for up to three years or by a fine not exceeding 30 million won:
| 1. | A person who illegally obtains a tax exemption or reduction under Article 11 or financial assistance under Article 11 by making a misrepresentation in any document referred to in Article 7 (2); |
| 2. | A person who divulges information related to any trade secret of an enterprise he/she has become aware of in the course of performing his/her duties or appropriates such information for any purpose other than the official purpose, in violation of Article 9 (4). |
| Article 20 (Joint Penal Provisions) |
If the representative of a corporation or an agent, employee, or other servant of the corporation or an individual commits an offence under Article 19 in connection with the business of the corporation or the individual, not only shall such offender be punished, but the corporation or individual also shall be punished by the fine prescribed in the relevant provision: Provided, That the foregoing shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant business to prevent such offence.
| Article 21 (Fines for Negligence) |
| (1) | Any person who fails to respond properly to a fact-finding survey conducted under Article 9 (2) or refuses, interferes with, or evades such fact-finding survey shall be punished by a fine for negligence not exceeding ten million won. |
| (2) | Fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Trade, Industry, and Energy, as prescribed by Presidential Decree. |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
Article 2 (Applicability to Repatriating Enterprises)
This Act shall also apply retroactively to enterprises that established or expanded their domestic places of business on or after January 1, 2012.
Article 3 (Special Exception Following Retroactive Application)
In applying Article 7 (2) 2 pursuant to Article 2 of the Addenda to enterprises that established or expanded their domestic places of business on or after January 1, 2012 for repatriating the part regarding the establishment or expansion of the domestic place of business in the repatriation plan shall be substituted by documents certifying relevant facts.