CHAPTER I GENERAL PROVISIONS
The purpose of these Rules is to provide for the matters delegated by the Defense Acquisition Program Act and the Enforcement Decree of said Act and matters necessary for the enforcement thereof.
| Article 2 (Classification of Weapons Systems and Non-Weapon Systems) |
| (1) | In classifying munitions into weapons systems and non-weapon systems defined in subparagraph 2 of Article 3 of the Defense Acquisition Program Act (hereinafter referred to as the "Act"), if it is unclear which category particular munitions are classified into, the Chairman of the Joint Chiefs of Staff shall determine the appropriate category for the particular munitions upon receipt of a request from the Ministry of National Defense, the Defense Acquisition Program Administration, any branch of the armed forces, or any agency under the direct jurisdiction of the Ministry of National Defense (including military units under the direct jurisdiction of the Ministry of National Defense; hereinafter the same shall apply). |
| (2) | Upon receipt of a request under paragraph (1), the Chairman of the Joint Chiefs of Staff shall determine the appropriate category within 30 days and shall give notice thereof to the Ministry of National Defense, the Defense Acquisition Program Administration, the relevant branch of the armed forces, or the relevant agency under the direct jurisdiction of the Ministry of National Defense. |
CHAPTER II TRANSPARENCY AND SPECIALIZATION OF EXECUTION OF DEFENSE ACQUISITION PROGRAM
| Article 3 (Form of Integrity Pledge) |
| (1) | The integrity pledge each member of the Defense Acquisition Program Promotion Committee (hereinafter referred to as the "Committee") or a subcommittee thereof (hereinafter referred to as "subcommittees"), each public official of the Defense Acquisition Program Administration, each executive or employee of the Agency for Defense Development, or each executive or employee of the Defense Agency for Technology and Quality shall present in accordance with Article 4 (1) or (2) of the Enforcement Decree of the Defense Acquisition Program Act (hereinafter referred to as the "Decree"), shall be made in attached Form 1. |
| (2) | The integrity pledge the representative and each executive of a defense contractor, a general enterprise (hereinafter referred to as "defense contractor, etc."), or a research institute shall present in accordance with Article 4 (3) of the Decree, shall be made in attached Form 2. |
| Article 4 (Reporting on Breach of Integrity Pledge) |
When the Administrator of the Defense Acquisition Program Administration discovers that a member of the Committee or a subcommittee thereof breaches any provision of an integrity pledge made under Article 4 (1) of the Decree, he/she shall immediately report thereon to the Minister of National Defense.
CHAPTER III IMPLEMENTATION OF PROJECTS FOR IMPROVING DEFENSE CAPABILITY
| Article 5 (Formulation, etc. of Medium-Term Plans for Projects for Improving Defense Capability) |
| (1) | When the Administrator of the Defense Acquisition Program Administration submits a medium-term plan for projects for improving defense capability, to the Minister of National Defense pursuant to Article 13 (2) of the Act, he/she shall submit therewith, relevant explanatory materials. |
| (2) | With regard to main projects that require a large budget or have a great impact on national policies, among projects included in a medium-term plan for projects for improving defense capability, the Administrator of the Defense Acquisition Program Administration shall first report thereon to the President of the Republic of Korea and the Minister of National Defense. |
| Article 6 (List, etc. of Requirements for Elements for Promoting Incorporation into Warfighting Capability) |
| (1) | Upon receipt of the list of requirements for elements for promoting incorporation into warfighting capability (referring to elements specified under Article 28 (1) of the Decree; hereinafter the same shall apply), which shall be reflected in a medium-term plan for projects for improving defense capability pursuant to Article 20 (4) of the Decree, the Administrator of the Defense Acquisition Program Administration shall give prior notice of an addition or amendment required for the elements for promoting incorporation into warfighting capability in connection with the operation of the relevant weapons system, to the headquarters of each branch of the armed forces, the Headquarters of Marine Corps, and each agency under the direct jurisdiction of the Ministry of National Defense (hereinafter referred to as "requirement-raising service"). <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (2) | Upon receipt of a notice of the elements for promoting incorporation into warfighting capability from the Administrator of the Defense Acquisition Program Administration under paragraph (1), a requirement-raising service shall submit the list of requirements for the elements for promoting incorporation into warfighting capability, in which its opinion shall be reflected in a modification or supplementation to the elements for promoting incorporation of the relevant weapons systems into warfighting capability, to the Administrator of the Defense Acquisition Program Administration. <Amended by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009> |
| Article 7 (Procedures, etc. for Determining Requirements) |
| (1) | Determinations to be made on requirements for weapons systems, etc. under Article 15 (1) of the Act shall be classified into the following categories, based on the timing for acquisition: |
| 1. | Long-term requirements: Requirements for eight to seventeen years after the fiscal year in which the requirements are determined; |
| 2. | Medium-term requirements: Requirements for three to seven years after the fiscal year in which the requirements are determined; |
| 3. | Urgent requirements: Requirements for two years after the fiscal year in which the requirements are determined. |
| (2) | When the Chairman of the Joint Chiefs of Staff makes a proposal for requirements pursuant to Article 15 (1) of the Act, in principle, the proposal shall be made for long-term requirements: Provided, That the proposal may be made for medium-term requirements or urgent requirements, if it is impracticable to make a proposal for long-term requirements due to circumstances, such as a war or incident, overseas deployment of troops, or for national security. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (3) | The Chairman of the Joint Chiefs of Staff may change a weapons system determined as a long-term requirement to a medium-term requirement, reflecting the findings of preliminary research or exploratory development under Article 10 (1) 1. In such cases, the target of evolutionary operational performance under Article 22 (2) of the Decree may be determined, and the target of evolutionary operational performance for the next stage may be provisionally proposed. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (4) | The Chairman of the Joint Chiefs of Staff shall consolidate the long-term requirements and medium requirements under paragraph (1), formulate an annual plan for objectives of joint warfighting capability, and send the plan to each agency requesting capabilities under Article 22 (1) of the Decree after obtaining approval thereof from the Minister of National Defense. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (5) | If the Chairman of the Joint Chiefs of Staff deems it necessary for his/her efficient deliberation to make a proposal for requirements for weapons systems, etc. pursuant to Article 15 (1) of the Act, he/she may first require the agencies involved to consult with each other. In such cases, relevant public officials under the jurisdiction of the Ministry of National Defense and the Defense Acquisition Program Administration shall be invited to participate in such consultation. |
| Article 8 (Requests for Modification of Requirements) |
In any of the following cases, the Administrator of the Defense Acquisition Program Administration may request the Chairman of the Joint Chiefs of Staff to modify the timing for incorporation of the relevant weapons system, etc. into warfighting capability, the quantity of requirements, or operational performance of the relevant weapons system, etc.: <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014>
| 1. | Where it is necessary to reduce required funds or promote competition among defense contractors, etc. in the course of implementing a project for improving defense capability; |
| 2. | Where a plan to innovate operational performance is reflected in the requirements for weapons systems, etc. pursuant to Article 22 (2) of the Decree; |
| 3. | Where it is necessary to amend a plan for a project for an incidental facility upon receipt of civil petitions, etc. filed in the course of implementing such project. |
| Article 9 (Procedures for Preliminary Research) |
| (1) | When the Administrator of the Defense Acquisition Program Administration intends to implement a preliminary research project under Article 17 (1) of the Act, he/she shall request the Joint Chiefs of Staff and the requirement-raising service to present their opinions on the environment for the operation of the relevant weapons system with the requirements determined, the concept of operation, the procedures for operation, jointness, interoperability, etc. In such cases, the Joint Chiefs of Staff and the requirement-raising service shall present their opinions thereon to the Administrator of the Defense Acquisition Program Administration. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (2) | The Administrator of the Defense Acquisition Program Administration shall take into consideration requirements determined for weapons systems, etc. and opinions presented under paragraph (1) in implementing a preliminary research project, but may authorize the Agency for Defense Development, a defense contractor, etc., or a research institute to perform part of the research project, where necessary. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| Article 10 (Procedures, etc. for Research and Development) |
| (1) | A project implemented for research and development of a weapons system under Article 18 of the Act shall be divided into the following stages: Provided, That any of the following stages may be merged or partially omitted, upon deliberation by the Committee, if necessary to prevent obsolescence of technologies, promote efficient research and development, or meet the timing for incorporation into warfighting capability: |
| 1. | Stage of exploratory development: The stage at which technology for the critical part of a weapons system shall be developed (including production of prototypes for verifying technology), the degree of perfection, and applicability, of technology shall be examined, and a determination shall be made as to whether to proceed further to the stage of system development; |
| 2. | Stage of system development: The stage at which a weapons system shall be designed, prototypes of the weapons system shall be produced, and national defense standards necessary for mass production shall be complete; |
| 3. | Stage of mass production: The stage at which the weapons system developed through the stage of system development shall be mass-produced. |
| (2) | Notwithstanding paragraph (1), a project for the research and development of a weapons system shall be implemented in accordance with the procedures determined by the Administrator of the Defense Acquisition Program Administration, if it is impracticable to produce a prototype in the nature of the weapons system, such as a warship or a battle information management system, or it is impossible to undergo any of the stages specified under paragraph (1). |
| (3) | The Administrator of the Defense Acquisition Program Administration shall seek opinions from the Chairman of the Joint Chiefs of Staff on matters concerning jointness or interoperability among weapons systems, when he/she implements a project for research and development of a weapons system under paragraph (1) or (2). |
| (4) | If necessary to seek opinions or advice from experts to efficiently implement a project for research and development of a weapons system, the Administrator of the Defense Acquisition Program Administration may commission civilian experts who have expertise or experience in the fields related to the project for research and development of a weapons system, as advisors to seek advice therefrom. |
| (5) | Upon completion of procedures for the research and development of a weapons system under paragraph (1) or (2), the Administrator of the Defense Acquisition Program Administration shall examine the weapons system initially produced, before commencing analysis and evaluation of the incorporation of the weapons system into warfighting capability under Article 23 (3) of the Act, to verify the appropriateness for field operation and changes in the elements for promoting incorporation into warfighting capability and the form and shape thereof. <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| (6) | When the Administrator of the Defense Acquisition Program Administration performs the stage of research and development of a weapons system under paragraph (1) or (2), he/she shall ensure that he/she localizes the parts of the weapons system to the maximum extent possible. |
| (7) | To ensure localization of parts under paragraph (6), the Administrator of the Defense Acquisition Program Administration shall formulate and implement a plan for the localization of parts, taking into consideration the level of logistical support capacity, the level of the improvement of science and technology for national defense, the effects resulting from, and economic feasibility of, the localization of parts, etc., which shall include all the following matters: |
| 1. | Items eligible for localization of parts; |
| 2. | Annual implementation plans for localization of parts; |
| 3. | Procedures for managing the development of localized parts. |
| (8) | The Administrator of the Defense Acquisition Program Administration shall reflect the requirements for critical technologies, proposed by the Joint Chiefs of Staff, the Agency for Defense Development, the Defense Agency for Technology and Quality, defense contractors, research institutes, etc., and the requirements for critical technologies, drawn in the course of preliminary research, in determining the requirements for critical technologies for which research and development are necessary. If the Headquarters of the Joint Chiefs of Staff intends to propose requirements for critical technologies in such cases, the Headquarters of the Joint Chiefs of Staff shall consolidate requirements from each branch of the armed forces and from the Joint Chiefs of Staff. |
| (9) | A project for the research and development of a critical technology shall be divided into the stages of: basic research, applied research, and test development; but the scope of research and development at each stage shall be determined by the Administrator of the Defense Acquisition Program Administration. |
[This Article Wholly Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 11 (Procedures for Selecting Major Institutes to be in charge of Research and Development) |
| (1) | When the Administrator of the Defense Acquisition Program Administration intends to select major institutes to be in charge of research and development pursuant to Article 18 (3) of the Act, he/she shall select a major institute for each stage of research and development under Article 10: Provided, That if necessary to efficiently implement a project for research and development of a weapons system or critical technology or to meet the timing for incorporation into warfighting capability, the Administrator of the Defense Acquisition Program Administration may authorize a defense contractor, etc. or a research institute, selected as a major institute to be in charge of research and development, to continuously execute the next stage of research and development, subject to prior deliberation thereon by the Committee. |
| (2) | When the Administrator of the Defense Acquisition Program Administration intends to select major institutes to be in charge of research and development pursuant to paragraph (1), he/she shall publicly announce the following matters: Provided, That the foregoing shall not apply where such matters are classified as military secrets or such matters must be kept secret for national security: |
| 1. | Objectives and details of the research and development project; |
| 2. | Criteria for selecting major institutes to be in charge of research and development; |
| 3. | Guidelines for preparing proposals for the research and development project or materials for examining capabilities of performance of the contract; |
| 4. | Other matters the Administrator of the Defense Acquisition Program Administration deems necessary for impartially selecting major institutes to be in charge of research and development. |
| (3) | To ensure impartiality and expertise in selecting major institutes to be in charge of research and development, the Administrator of the Defense Acquisition Program Administration may operate a team for the evaluation of proposals for a research and development project with relevant experts from the Ministry of Trade, Industry and Energy, the Defense Acquisition Program Administration, each branch of the armed forces, the Agency for Defense Development, and the Defense Agency for Technology and Quality. <Amended by Ordinance of the Ministry of National Defense No. 646, Mar. 4, 2008; Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013> |
| Article 12 (Selection of Institutes, etc. for Research or Manufacturing Prototypes) |
| (1) | When it is intended to authorize defense contractors, etc. or research institutes to perform a research project for a weapons system or a critical technology or to manufacture prototypes pursuant to Article 18 (4) of the Act, one defense contractor, etc. or one research institute shall be selected for each stage of research and development under Article 10 or for each prototype: Provided, That at least two defense contractors, etc. or at least two research institutes may be selected, if deemed necessary for efficiently performing a research and development project or manufacturing a prototype, or for policies on national defense. <Amended by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009> |
| (2) | To efficiently implement a project for research and development of a weapons system or a critical technology, or to meet the timing for incorporation into warfighting capability, the Administrator of the Defense Acquisition Program Administration may preferentially authorize defense contractors, etc. or research institutes selected under paragraph (1) to perform the next stage of research and development for a research project for a weapons system or a critical technology, or to manufacture a prototype. <Amended by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009> |
| (3) | When the Administrator of the Defense Acquisition Program Administration intends to select defense contractors, etc. for research or for manufacturing prototypes under paragraph (1), he/she shall consult thereon with the Minister of Trade, Industry and Energy. <Amended by Ordinance of the Ministry of National Defense No. 646, Mar. 4, 2008; Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009; Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013> |
| (4) | Other matters necessary for procedures for selecting defense contractors, etc. or research institutes for research or for manufacturing prototypes shall be determined by the Administrator of the Defense Acquisition Program Administration. <Amended by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009> |
| Article 12-2 (Technical Support for Research and Development) |
If necessary for efficiently implementing a project for research and development of a weapons system or a critical technology, the Administrator of the Defense Acquisition Program Administration may request the Agency for Defense Development or the Defense Agency for Technology and Quality to provide technical support to institutes selected as major institutes to be in charge of research and development under Article 11 or institutes selected for research or for manufacturing prototypes under Article 12. [This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 13 (Preparation of Proposal Requests) |
| Article 14 (Research and Development of Non-weapon System Eligible for Designation as Standard Articles) |
Matters necessary for research and development of non-weapon systems eligible for the designation of standard articles under Article 30 (2) of the Decree, shall be determined by the Minister of National Defense.
| Article 15 (Formulation and Implementation of Plans for Testing and Evaluation) |
| (1) | When the Administrator of the Defense Acquisition Program Administration formulates a plan for testing and evaluation with respect to research and development of weapons systems and critical technologies pursuant to Article 27 (1) of the Decree, he/she shall prepare guidelines for preparing a plan for testing and evaluation at each stage specified under Article 27 (1) of the Decree and notify the guidelines to the major institutes to be in charge of research and development and requirement-raising services, and each major institute in charge of research and development and each requirement-raising service shall prepare a testing and evaluation plan for development and a testing and evaluation plan for operation, reflecting the guidelines therein, and shall present the plans, including matters concerning elements for promoting incorporation into warfighting capability, to the Administrator of the Defense Acquisition Program Administration. |
| (2) | If personnel of a requirement-raising service are to be included in a joint testing and evaluation team that the Administrator of the Defense Acquisition Program Administration intends to organize for testing and evaluation under Article 27 (5) of the Decree, he/she shall reflect the opinion of the Minister of National Defense therein. |
| Article 16 (Notification of Outcomes of Testing and Evaluation) |
When a major institute in charge of research and development or a requirement-raising service notifies the Administrator of the Defense Acquisition Program Administration of the outcomes of testing and evaluation pursuant to Article 21 (2) of the Act, the notice shall include the following matters: | 1. | Matters specified in Article 27 (3) 1 through 3 of the Decree; |
| 2. | Outcomes of testing and evaluation, including items that fall short of the standards for testing and evaluation; |
| 3. | Other matters for which any other agency's cooperation or supplementation is required for testing and evaluation. |
| Article 17 (Determinations on Outcomes of Testing and Evaluation) |
| (1) | Determinations on the outcomes of testing and evaluation of a weapons system in the process of research and development shall be made as follows: |
| 1. | Testing and evaluation for development: Conforming to standards or substandard; |
| 2. | Operational testing and evaluation: Appropriate or inappropriate for combat: Provided, That if a project takes an undue amount of time from the stage of development and designing until the final stage of manufacturing, such a warship project, determination 'appropriate for combat' may be provisionally made to continue the project or to proceed further to the following stage in the course of research and development. |
| (2) | Determinations on the outcomes of testing and evaluation of a weapons system to be purchased shall be either 'appropriate' or 'inappropriate' for combat. |
| (3) | Determinations on the outcomes of testing and evaluation of a critical technology in the process of research and development shall be made as follows: <Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010> |
| 1. | Testing and evaluation for development: Conforming to standards or substandard; |
| 2. | Operational testing and evaluation: Appropriate or inappropriate for combat. |
| (4) | A report made by the Administrator of the Defense Acquisition Program Administration to the Committee on outcomes of testing and evaluation pursuant to Article 21 (4) of the Act shall include the following matters: |
| 1. | Outcomes of the testing and evaluation of a weapons system or a critical technology; |
| 2. | Whether to re-conduct a test and evaluation of the weapons system found substandard or inappropriate for combat; |
| 3. | Whether to amend the plan for projects for improving defense capability or proceed to the following stage. |
| (5) | A requirement-raising service or a defense contractor, etc. may request the Administrator of the Defense Acquisition Program Administration to provide technical support, etc. for determinations on outcomes of the testing and evaluation of a non-weapon system. |
| Article 18 (Combined Elements for Assistance with Munitions) |
| (1) | When the Administrator of the Defense Acquisition Program Administration intends to secure combined elements for assistance with munitions under Article 28 (1) 2 of the Decree, he/she shall formulate a comprehensive plan for assistance with munitions and shall secure combined elements for assistance with munitions according to the plan so that the weapons systems so acquired can be operated in an efficient and economic manner until they are scrapped pursuant to Article 13 (3) of the Act on the Management of Military Supplies. |
| (2) | When the Administrator of the Defense Acquisition Program Administration intends to secure and supply combined elements for assistance with munitions under paragraph (1), he/she shall reflect opinions from the Ministry of National Defense and each branch of the armed forces in determining the details, items, scope, etc. of such elements for assistance. |
| Article 19 (Improvement of Performance) |
| (1) | When the Administrator of the Defense Acquisition Program Administration intends to improve the performance of a weapons system in operation pursuant to Article 22 (1) of the Act, he/she may request the requirement-raising service to present a list of matters necessary to improve performance and may reflect the list in improving such performance. |
| (2) | When the Administrator of the Defense Acquisition Program Administration intends to improve performance or a requirement-raising service intends to present a list of matters necessary to improve performance to the Administrator of the Defense Acquisition Program Administration pursuant to paragraph (1), he/she/it shall first consult thereon with the Chairman of the Joint Chiefs of Staff, if the improvements to performance are likely to affect jointness or interoperability between weapons systems. |
| (3) | When the Administrator of the Defense Acquisition Program Administration intends to improve the performance of a weapons system that shall be subject to regular depot maintenance under subparagraph 3 of Article 10-3 of the Enforcement Rules of the Act on the Management of Military Supplies (including where maintenance is entrusted to the civilian sector), he/she shall jointly conduct depot maintenance and performance improvement within an allowable range. <Newly Inserted by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| Article 20 (Methods, Procedures, etc. for Analysis and Evaluation) |
| (1) | The Administrator of the Defense Acquisition Program Administration shall first select projects requiring analysis and evaluation at each stage of analysis and evaluation under subparagraphs of Article 23 (2) of the Act to efficiently implement projects for improving defense capability. |
| (2) | When the Administrator of the Defense Acquisition Program Administration analyzes outcomes of a project while the relevant budget is being implemented or after the implementation of the relevant budget is complete, he/she may analyze and evaluate data on disbursed costs provided by the major institute in charge of research and development or defense contractors, etc. involved. |
| (3) | The Minister of National Defense shall authorize the Chairman of the Joint Chiefs of Staff or the Chief of Staff of each branch of the armed forces to conduct analysis and evaluation under Article 23 (3) of the Act in accordance with the following classification: <Amended by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014> |
| 1. | For the analysis and evaluation of the process of making a requirement proposal and determining requirements, the validity, rationality, and policy compliance of requirements shall be analyzed and evaluated as part of the force requirement analysis in accordance with the following methods and procedures: |
| (a) | The Chairman of the Joint Chiefs of Staff shall analyze and evaluate the process of making a requirement proposal or determining requirements and shall report the outcomes thereof to the Minister of National Defense; |
| (b) | When requirements are determined, the Chairman of the Joint Chiefs of Staff shall notify the Administrator of the Defense Acquisition Program Administration of the outcomes of analysis and evaluation of the process of making a requirement proposal or determining requirements; |
| (c) | If necessary for enhancing the reliability of analysis and evaluation of the process of making a requirement proposal or determining requirements, the Chairman of the Joint Chiefs of Staff may request a specialized research institute to conduct analysis and evaluation; |
| 2. | Analysis and evaluation of incorporation of a weapons system into warfighting capability, etc. shall be divided into the evaluation of incorporation into warfighting capability and the analysis of operation of warfighting capability; |
| 3. | The evaluation of incorporation into warfighting capability shall be conducted within one year after a weapons system is initially manufactured or purchased by examining and evaluating the level of achievement of operational performance, elements for promoting incorporation into warfighting capability, etc. in accordance with the following methods and procedures: |
| (a) | The Chief of Staff of each branch of the armed forces shall formulate a plan for the evaluation of incorporation into warfighting capability, submit the plan to the Minister of National Defense, the Chairman of the Joint Chiefs of Staff, and the Administrator of the Defense Acquisition Program Administration, and conduct evaluation accordingly. In such cases, the Chief of Staff of each branch of the armed forces may request the Administrator of the Defense Acquisition Program Administration to assist him/her with specialized personnel, equipment, facilities, technology, etc. necessary for evaluation; |
| (b) | The Chief of Staff of each branch of the armed forces shall submit a report on outcomes of the evaluation of incorporation into warfighting capability to the Minister of National Defense, the Chairman of the Joint Chiefs of Staff, and the Administrator of the Defense Acquisition Program Administration, and the Administrator of the Defense Acquisition Program Administration shall reflect such outcomes in producing, developing, etc. subsequent weapons systems; |
| (c) | When the Chief of Staff of each branch of the armed forces intends to conduct evaluation of incorporation into warfighting capability, he/she may organize and operate a team for the evaluation of incorporation, including personnel from the Headquarters of the Joint Chiefs of Staff and the Defense Acquisition Program Administration and executives and employees of the research institute or contractor that research or manufacture the weapons system at issue; |
| 4. | The analysis of operation of warfighting capability shall be made on the effects of joint warfighting capability of a weapons system incorporated by the Chairman of the Joint Chiefs of Staff into warfighting capability and currently operated in the battlefield and current conditions of operation of the weapons system, which shall be conducted in accordance with the following methods and procedures: |
| (a) | The Chairman of the Joint Chiefs of Staff shall formulate a plan for analysing operation of warfighting capability after seeking opinions from the Chief of Staff of each branch of the armed forces, report the plan to the Minister of National Defense, notify the Administrator of the Defense Acquisition Program Administration and the Chief of Staff of each branch of the armed forces of the plan, and then conduct the analysis according to the plan; |
| (b) | The Chairman of the Joint Chiefs of Staff shall report the outcomes from analysing operation of warfighting capability to the Minister of National Defense and notify the Defense Acquisition Program Administration and the Chief of Staff of each branch of the armed forces. In such cases, if necessary to improve the performance of a weapons system or improve and supplement combined elements for assistance with munitions, it may be requested to take measures necessary therefor. |
| Article 21 (Utilization of Outcomes of Analysis and Evaluation) |
| (1) | When the Administrator of the Defense Acquisition Program Administration, the Chairman of the Joint Chiefs of Staff, or the Chief of Staff of each branch of the armed forces analyzes and evaluates projects for improving defense capability, he/she shall submit a list of annual analyses and evaluation to the Minister of National Defense, and the Minister of National Defense shall notify other agencies of the list so that information about the analyses and evaluation of projects for improving defense capability can be shared and utilized. |
| (2) | The Administrator of the Defense Acquisition Program Administration shall report to the Minister of National Defense on outcomes of the analyses and evaluation of projects for improving defense capability under Article 23 (2) of the Act. |
CHAPTER IV PROCUREMENT AND QUALITY CONTROL
| Article 22 (Procedures for Formulating Procurement Plans) |
| (1) | The Minister of National Defense shall make guidelines for formulating plans for the procurement of military supplies and notify the Defense Acquisition Program Administration, each branch of the armed forces, and each agency under the direct jurisdiction of the Ministry of National Defense thereof pursuant to Article 25 (1) of the Act. |
| (2) | Each branch of the armed forces and each agency under the direct jurisdiction of the Ministry of National Defense shall prepare a written request for planning procurement for each project and for each item in accordance with the guidelines under paragraph (1) and submit it to the Administrator of the Defense Acquisition Program Administration. |
| (3) | Upon receipt of a written request for planning procurement under paragraph (2), the Administrator of the Defense Acquisition Program Administration shall examine the following matters to finalize the procurement plan for the pertinent year and shall notify the Ministry of National Defense, each branch of the armed forces, and each agency under the direct jurisdiction of the Ministry of National Defense thereof: |
| 1. | The method for procurement of each item; |
| 2. | Reasonableness of the unit price of each item; |
| 3. | Conditions of procurement, including national defense standards and the timing and place for delivery; |
| 4. | Other matters necessary for efficiently procuring military supplies. |
| Article 23 (Administration of Form and Shape) |
The Administrator of the Defense Acquisition Program Administration shall consult with the Chairman of the Joint Chiefs of Staff and requirement-raising services on matters related to jointness or interoperability between weapons systems in administering form and shape pursuant to Article 32 of the Decree.
| Article 24 (Quality Assurance) |
| (1) | Where the Administrator of the Defense Acquisition Program Administration performs affairs concerning quality assurance pursuant to Article 28 of the Act, he/she shall determine the type of, applicable standards, etc. for, quality assurance by stage, taking into consideration the following matters, and accordingly inspect the quality of military supplies, but if requested by the Minister of National Defense or the requirement-raising service, the Administrator shall first reflect opinions thereon from the Minister of National Defense or the requirement-raising service: <Amended by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009> |
| 1. | Whether quality certification has been issued by an institution officially recognized by the Government with respect to the Koran Industrial Standards, etc.; |
| 2. | The level of difficulty for the technology applied to military supplies; |
| 3. | The degree of impact on military capability; |
| 4. | Whether an item is usable both for civilian purposes and military purposes or exclusively for military purposes. |
| (2) | If necessary to perform affairs concerning quality assurance of military supplies procured by each military unit under Article 29 of the Decree, such as the verification of the form, shape, and national defense standards of such military supplies, each branch of the armed forces may request the Administrator of the Defense Acquisition Program Administration to provide assistance with regard thereto. |
| Article 25 (Quality Management) |
| (1) | The Administrator of the Defense Acquisition Program Administration may enforce a quality certification system to defense contractors or specialized research institutes in accordance with the standards for the responsibility management, resources management, etc. by defense contractors or specialized research institutes specified in Article 29 (1) of the Act, subject to prior consultation with the Minister of Trade, Industry and Energy. <Amended by Ordinance of the Ministry of National Defense No. 646, Mar. 4, 2008; Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013> |
| (2) | A defense contractor or specialized research institution that has obtained quality certification under paragraph (1) may be granted additional credits or other incentives with respect to the procurement of military supplies or the conclusion of service contracts. |
| (3) | Standards for quality certification, methods and procedures for certification, those eligible to be granted incentives, methods for granting incentives, and other matters necessary for granting incentives, shall be determined and publicly announced by the Administrator of the Defense Acquisition Program Administration. |
CHAPTER V ADVANCEMENT OF SCIENCE AND TECHNOLOGY FOR NATIONAL DEFENSE
| Article 26 (Notification of Action Plans to Advance Science and Technology for National Defense) |
The Administrator of the Defense Acquisition Program Administration shall formulate an action plan to advance science and technology for national defense, reflecting the matters under Article 34 (3) of the Decree therein, finalize each plan by the end of the relevant year through deliberation by the Committee, and then notify the agencies, etc. that have proposed requirements for critical technologies thereof.
CHAPTER VI FOSTERING OF DEFENSE INDUSTRY
| Article 27 (Materials Eligible for Designation of Defense Materials) |
Materials eligible for designation as defense materials under Article 39 (1) 2 of the Decree means the following materials: | 1. | A material that defense contractors, etc. avoid manufacturing because of economic inefficiency, such as a small quantity of an item essential for military strategies in a wide variety or crypto equipment exclusively for military purposes; |
| 2. | A material declassified into a weapons system, but the strict quality assurance of which is required because of its direct connection with human life; |
| 3. | A material in the process of research and development or at the stage of completion of research and development as a major part for a material classified into a weapons system or as a major part for a defense material; |
| 4. | A material, the manufacturing or procurement of which is anticipated to be discontinued, but the replacement parts of which are required continuously for considerable time; |
| 5. | A material not a product of a research and development project, but that is required to be serviced, recycled, improved, or remodelled as a material essential for military strategies. |
| Article 28 (Major Defense Materials) |
| (1) | When the Administrator of the Defense Acquisition Program Administration intends to designate materials he/she deems important for military strategies or tactical employment as major defense materials under Article 35 (2) 12 of the Act and Article 39 (2) of the Decree, he/she shall select the following items, which shall constitute major parts of finished equipment in a weapons system, the development and production of which require special technologies and, thus, the production of which need protection and fostering: |
| 1. | Items less compatible with civilian items and the development and production of which need a large investment in plant or military demands for which do not reach the economic scale of production or items that shall not be exposed to outside for military strategies; |
| 2. | Items hard to acquire because of restrictions on importation from foreign countries or items that need domestic development, protection, and fostering under national policies. |
| Article 29 (Designation, etc. of Defense Materials) |
| (1) | When the Administrator of the Defense Acquisition Program Administration designates a material as a defense material pursuant to Article 39 (1) of the Decree, he/she shall detail the type of the material: Provided, That the foregoing shall not apply where it is impracticable to detail the type. |
| (2) | A request for designating a defense material under Article 39 (3) of the Decree shall be made in attached Form 3. |
| Article 30 (Recommendation, etc. of Defense Contractors for Designation) |
| (1) | The Administrator of the Defense Acquisition Program Administration may recommend companies that have excellent management ability and production technology to the Minister of Trade, Industry and Energy for designation as defense contractors. <Amended by Ordinance of the Ministry of National Defense No. 646, Mar. 4, 2008; Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013> |
| (2) | Applications for designation of a defense contractor under Article 41 (1) 1 of the Decree shall be made in attached Form 4. |
| (3) | A certificate of designation of a defense contractor under Article 41 (3) of the Decree shall be issued in attached Form 5. |
| Article 31 (Applications for Approval of Buyout, etc. of Defense Contractors) |
Applications for approval of acquisition of control over the management of a defense contractor under Article 35 (3) of the Act shall be filed in attached Form 6.
| Article 32 (Commissioning of Specialized Research Institutes) |
A certificate of commissioning of a specialized research institute under Article 46 (4) of the Decree shall be issued in attached Form 7.
| Article 32-2 (Agreement, Applications, etc. for Coordination of Business) |
| (1) | A recommended agreement between a large enterprise and a small and medium-sized enterprise or between defense contractors on coordination of business under the latter part of Article 36 (1) of the Act and Article 47 (1) of the Decree shall be made in attached Form 7-2 (Agreement on Coordination of Business). |
| (2) | When the Administrator of the Defense Acquisition Program Administration recommends agreement under the latter part of Article 36 (1) of the Act, he/she shall publicly announce the main details thereof. |
| (3) | When a person applies for coordination of business pursuant to Article 36 (1) 2 of the Act and Article 47 (2) of the Decree, he/she shall file an application for coordination of business in attached Form 7-3 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | A statement of grounds for application for coordination of business; |
| 3. | Documents evidencing that the applicant has engaged in the defense industry-related business; |
| 5. | A power of attorney, if the application is filed by a representative; |
| 6. | Other documents or materials necessary for coordination of business. |
| (4) | If an applicant for coordination of business in accordance with Article 36 (1) 2 of the Act intends to voluntarily withdraw the application, he/she shall file a letter of withdrawal of the application for coordination of business in attached Form 7-4 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | A letter of withdrawal of application; |
| 2. | A power of attorney, if the letter of withdrawal is filed by a representative. |
[This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009]
| Article 33 (Quality Certification for Products, etc. prior to Contracting) |
If a defense contractor intends to request the Administrator of the Defense Acquisition Program Administration to certify the quality of materials produced or raw materials and parts secured before concluding a procurement contract pursuant to Article 50 (5) of the Decree, it shall submit a request for quality certification in attached Form 8 (Request for Quality Certification) to the Administrator of the Defense Acquisition Program Administration. <Amended by Ordinance of the Ministry of National Defense No. 668, Jan. 7, 2009>
| Article 34 (Persons Eligible for Grants for Research and Development) |
Those eligible for grants for research and development under Article 54 (2) of the Decree shall be limited to persons engaged in research and development or production of defense materials and who have any of the following achievements of research and development: | 1. | Development of a new defense material used for military strategies or tactics; |
| 2. | Development of a high technology or an equivalent technology for the defense industry; |
| 3. | Development of creative software used in the defense industry; |
| 4. | Development of a defense material with performance far superior to that of existing defense materials; |
| 5. | Localization and development of major parts of defense materials; |
| 6. | Other achievements recognized by the Administrator of the Defense Acquisition Program Administration in research and development. |
| Article 35 (Selection of Persons Eligible for Grants for Research and Development) |
| (1) | To select persons eligible for grants for research and development under Article 34, a council for examination of achievements for grants for research and development (hereinafter referred to as the "Achievements Examination Council") shall be established under the jurisdiction of the Defense Acquisition Program Administration. |
| (2) | The Achievements Examination Council shall be comprised of not more than 15 members, including a chairperson; the Deputy Administrator of the Defense Acquisition Program Administration shall serve as chairperson, and council members shall be commissioned by the Administrator of the Defense Acquisition Program Administration, from among public officials at the level of Director General in related central administrative agencies, executives and employees of national or public research institutes, and persons with abundant knowledge and experience in defense science. |
| (3) | Members of the Achievements Examination Council appointed from among public officials and executives and employees of national or public research institutes shall serve as council members during their current term of service, while the term of office of civilian council members shall be two years, but may be renewed consecutively only twice. |
| (4) | The Achievements Examination Council may have a working council to conduct preliminary examinations for selecting persons eligible for grants. |
| (5) | Council members who attend a meeting of the Achievements Examination Council or the working council may be paid for allowances and reimbursed for travel expenses, within budgetary limits: Provided, the foregoing shall not apply where a public official who is also a council member attends a meeting in direct connection with his/her duties. |
| (6) | Other matters necessary for the composition and operation of the Achievements Examination Council and the working council shall be determined by the chairperson, following resolution thereon by the Achievements Examination Council. |
| Article 36 (Designation of Guarantee Organizations) |
Applications for the designation of a guarantee organization under Article 57 (2) 1 of the Decree shall be filed in attached Form 9.
| Article 36-2 (Procedures, etc. for Subsequent Assistance with Military Logistics for Exportation) |
| (1) | Each person who intends to request subsequent assistance with military logistics for exportation pursuant to Article 58 (3) of the Decree (hereinafter referred to as "person requesting subsequent assistance with military logistics") shall submit a request for subsequent assistance with military logistics in attached Form 9-2 (Request for Subsequent Assistance with Military Logistics) to the Administrator of the Defense Acquisition Program Administration before concluding an export contract, along with a comprehensive management plan for subsequent assistance with military logistics for exportation under Article 58 (3) of the Decree. |
| (2) | Upon receipt of a request for subsequent assistance with military logistics under paragraph (1), the Administrator of the Defense Acquisition Program Administration may request the head of each related central administrative agency and the Chief of Staff of each branch of the armed forces (hereafter referred to as "head of each related central administrative agencies, etc." in this Article) to examine the following matters: |
| 1. | Whether it is possible to provide subsequent assistance with military logistics; |
| 2. | The extent and period of subsequent assistance with military logistics; |
| 3. | Whether elements for subsequent assistance with military logistics may be lent or transferred, for consideration or without consideration, and terms and conditions of transfer; |
| 4. | Other matters necessary for subsequent assistance with military logistics. |
| (3) | Upon receipt of a request for examination under paragraph (2), the head of each related central administrative agency, etc., shall notify the Administrator of the Defense Acquisition Program Administration of the findings of examination. |
| (4) | Upon receipt of notice of findings of examination under paragraph (3), the Administrator of the Defense Acquisition Program Administration shall finally determine the agencies that can provide subsequent assistance with military logistics, the scope of work, etc. after consulting with the head of each related central administrative agency, etc. and shall notify the head of each related central administrative agency, etc. and the person requesting subsequent assistance with military logistics of the details thereof. |
| (5) | Upon receipt of notice under paragraph (4), the person requesting subsequent assistance with military logistics may be entitled to subsequent assistance with military logistics under agreement made with the head of the agency that can provide the subsequent assistance with military logistics. |
| (6) | Other matters necessary for detailed procedures, etc. for subsequent assistance with military logistics for exportation of defense materials, etc. shall be determined by the Administrator of the Defense Acquisition Program Administration. |
[This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 37 (Applications for Transfer or Leasing of State-Owned Property) |
Applications for the use, transfer, or leasing of State-owned property under Article 59 (6) of the Decree shall be filed in attached Form 10 (Applications for Use, Transfer, or Leasing of State-Owned Property). <Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010>
| Article 38 (Termination of Commissioning of Specialized Research Institutes) |
| (1) | The Administrator of the Defense Acquisition Program Administration may terminate the commissioning of a specialized research institute, pursuant to Article 63 (1) 3 of the Decree, in any of the following cases: |
| 1. | Where the objectives of commissioning the specialized research institute have been attained and, thus, it becomes unnecessary to keep commissioning; |
| 2. | Where the institute's facilities or technical capacity significantly falls short of standards, compared with those as at the time it was commissioned as a specialized research institute, but the institute fails to comply with a request by the Administrator of the Defense Acquisition Program Administration to make improvements. |
| (2) | The Administrator of the Defense Acquisition Program Administration shall evaluate each specialized research institute with regard to outcomes of research, current conditions of management, or the contribution to the defense industry, on a three-yearly basis, and shall examine whether to terminate commissioning as a specialized research institute. |
| Article 38-2 (Applications for Approval to Participate in National Strategic Arms Projects, etc.) |
Applications for approval under Article 64-2 (2) of the Decree shall be filed in attached Form 10-2; and applications for approval under Article 64-2 (3) of the Decree shall be filed in attached Form 10-3. [This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 39 (Applications for Approval of Contacts for Manufacturing and Sale of Defense Materials) |
Applications for the approval of conclusion of a contract for the manufacturing and sale of defense materials under Article 65 (1) of the Decree shall be filed in attached Form 11 (Applications for Approval of Conclusion of Contract for Manufacturing and Sale of Defense Materials).
| Article 40 (Applications to Operate Business Manufacturing Military Firearms, Swords, Explosives, etc.) |
| (1) | Each person who intends to engage in manufacturing military firearms, swords, explosives, etc. pursuant to Article 66 (1) 1 or 2 of the Decree (hereinafter referred to as "military firearms, etc.") or who intends to add manufactured items of military firearms, etc. shall file an application to operate business manufacturing military firearms, etc. or to add manufactured items in attached Form 12 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 2. | A plan to prevent hazards and disasters; |
| 3. | A plan for safety education for employees and for safety inspections. |
| (2) | Each person who intends to build or extend a facility for manufacturing military firearms, etc. under Article 66 (1) 3 of the Decree shall file an application for permission to build or extend a facility for manufacturing military firearms, etc. in attached Form 13 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | A maintenance plan of manufacturing facilities; |
| 2. | A plan to prevent hazards and disasters; |
| 3. | A map indicating location of manufacturing facilities and a layout plan for facilities. |
| (3) | Each person who intends to use a manufacturing facility newly built or extended under Article 66 (1) 4 of the Decree shall file an application for permission to use the facility for manufacturing military firearms, etc. in attached Form 14 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | A layout plan for facilities; |
| 2. | Specifications of manufacturing equipment. |
| (4) | Matters necessary for standards for permission or standards for safety inspections provided for in paragraphs (1) through (3) shall be determined by the Administrator of the Defense Acquisition Program Administration, but standards for safe distances and structures of buildings erected in a place for manufacturing explosives, among facilities for manufacturing military explosives, shall be as prescribed in attached Table 1. |
| (5) | Pursuant to Article 53 (1) of the Act, the Administrator of the Defense Acquisition Program Administration shall conduct safety inspections on each manufacturer of military firearms, etc. or each specialized research institute at least once a year with respect to the following matters: |
| 1. | Current conditions of safety management of manufacturing facilities; |
| 2. | Current conditions of safe management of equipment for manufacturing military firearms, etc. and electric and fire-fighting equipment in manufacturing facilities. |
[This Article Wholly Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 41 (Applications for Permission to Import, Transfer, Acquire, etc. Military Firearms, etc.) |
| (1) | Each person who intends to import military firearms, etc. pursuant to Article 66 (1) 5 of the Decree, shall file an application for permission to import in attached Form 14-2 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | A document evidencing the contractual relationship between the end user and the importer; |
| 2. | An import order or a purchase (import) agreement; |
| 3. | A statement explaining imported items and purposes of use; |
| 4. | A covenant on the prohibition of use for any purpose, other than the originally intended purposes. |
| (2) | If a change occurs with respect to the origin, specifications, or unit price of an imported item, or it is intended to extend the effective period of the import permit after permission to import is granted under paragraph (1), an application for approval of amendment to the import permit in attached Form 14-3 shall be filed with the Administrator of the Defense Acquisition Program Administration. |
| (3) | If a person who intends to import military firearms, etc. is required to obtain permission to export from the exporting country, he/she may file an application for the issuance of a certificate of end user with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | The form required by the exporting country for the certificate of end user; |
| 2. | A document evidencing the contractual relationship between the end user and the importer; |
| 3. | An import order or a purchase (import) agreement; |
| 4. | A statement explaining imported items and purposes of use. |
| (4) | Each person who intends to transfer or acquire military firearms, etc. pursuant to Article 66 (1) 6 of the Decree shall file an application for permission to transfer or acquire military firearms, etc. in attached Form 14-4 with the Administrator of the Defense Acquisition Program Administration, along with relevant documents evidencing the purposes of use of the military firearms, etc. |
[This Article Wholly Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 42 (Applications for Permission to Possess, Store, etc. Military Firearms, etc.) |
| (1) | Each person who intends to possess a military firearm, etc. pursuant to Article 66 (1) 7 of the Decree shall file an application for permission to possess a military firearm, etc. in attached Form 14-5 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | Specifications of the item subject to permission; |
| 2. | Relevant documents evidencing the purposes of possession (a letter of approval for research and development; a contract on the purchase of goods, etc.); |
| 3. | A plan for safety management of the storage. |
| (2) | Each person who intends to keep military firearms, etc. at any place, other than manufacturing facilities, permission for use of which is granted, pursuant to Article 66 (1) 8 of the Decree shall file an application for permission to store military firearms, etc. in attached Form 14-6 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | Specifications of the items subject to permission; |
| 2. | A plan for safety management of the storage (including the methods for storing and handling, the layout plan for the facilities, and the assurance of safety of facility protection). |
[This Article Wholly Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 42-2 (Transportation of Military Firearms, etc.) |
| (1) | Each person who intends to transport military firearms, etc. pursuant to Article 66 (1) 9 of the Decree shall file an application for permission to transport military firearms, etc. in attached Form 14-7 with the Administrator of the Defense Acquisition Program Administration, along with documents evidencing purposes of the transportation of military firearms, etc., to obtain permission to transport, and shall transport them under the supervision of the President of the Defense Agency for Technology and Quality within the period permitted by the Administrator of the Defense Acquisition Program Administration. |
| (2) | The President of the Defense Agency for Technology and Quality shall administer and supervise the process of transportation of military firearms, etc. by a person who transports military firearms, etc. pursuant to paragraph (1), issue a certificate of reporting of transportation, and submit a report on the results thereof to the Administrator of the Defense Acquisition Program Administration. |
| (3) | The period permitted for transportation under paragraph (1) and other matters necessary for the method and procedure for permission to transport shall be determined and publicly announced by the Administrator of the Defense Acquisition Program Administration. |
[This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014]
| Article 43 (Scrapping of Military Firearms, etc.) |
| (1) | Each person who intends to scrap military firearms, etc. pursuant to Article 66 (1) 10 of the Decree shall submit a scrapping plan to the Administrator of the Defense Acquisition Program Administration to obtain permission to scrap, and shall scrap them under the supervision of the President of the Defense Agency for Technology and Quality, and then notify the Administrator of the Defense Acquisition Program Administration of the results of scrapping, along with the following documents: |
| 1. | A certificate of scrapping; |
| 2. | Photographs taken before and after scrapping. |
| (2) | Each person who intends to scrap military explosives pursuant to Article 66 (1) 10 of the Decree shall file an application for permission to scrap military explosives in attached Form 14-7 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 2. | An application for the use, leasing, or transfer of State-owned property (to be submitted only where the applicant uses a military explosive disposal facility). |
[This Article Wholly Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
| Article 44 (Storage and Management of Raw Materials in Reserve for Defense Materials) |
| (1) | If necessary for the storage of raw materials in reserve for defense materials, the Administrator of the Defense Acquisition Program Administration may request the Chief of Staff of each branch of the armed forces to store and manage such materials in reserve. |
| (2) | Upon receipt of a request for the storage and management of raw materials in reserve for defense materials under paragraph (1), the Chief of Staff of each branch of the armed forces shall designate a military unit in charge of the storage and management of such raw materials (hereinafter referred to as "military unit with any raw material stored in reserve"), in consultation with the Administrator of the Defense Acquisition Program Administration, taking into consideration the size of storage facilities, the distance of transportation, the nature of raw materials, etc. |
| Article 45 (Kinds and Quantity of Raw Material in Reserve) |
| (1) | The kinds and quantity of raw materials in reserve under Article 67 (1) of the Decree shall conform to the following standards: |
| 1. | Raw materials to be stored in reserve: |
| (a) | Items that require considerable time to import, among items mostly imported; |
| (b) | Items substitutable by domestically-manufactured items, but the supply of which cannot meet essential requirements; |
| (c) | Items impracticable to implement a research and development project for localization or to produce prototypes because of a wide variety in kinds, a small quantity required, and economic inefficiency; |
| (d) | Items expected to be significantly economical to purchase earlier because of the rising price of raw materials in the international market or likely to be hard to import in future; |
| 2. | Quantity of raw materials to be stored in reserve: The quantity that can meet urgent requirements for manufacturing defense materials or the quantity that which defense contractors can use with their maximum manufacturing capacity during the period required for ordering and delivering raw materials. |
| (2) | If a raw material to be stored in reserve under paragraph (1) 1 is likely to spoil easily and it is inappropriate to keep it in its original form, parts manufactured with the raw material may be stored in reserve. |
| Article 46 (Inspection of Standard Requirements and Quality) |
When the head of a defense contractor imports or purchases a raw material to be stored in reserve, he/she shall submit samples of the raw material, technical data of the item in the contract, the outcomes of technical testing, documents about technical specifications, etc. to the Administrator of the Defense Acquisition Program Administration and shall undergo inspections of standard requirements and quality.
| Article 47 (Method of Storage, etc.) |
| (1) | The head of a defense contractor shall import or purchase raw materials in package units that can be stored for considerable time to avoid deterioration, destruction, or loss while in storage. |
| (2) | In principle, raw materials shall be stored indoor in lots or in package units; each kind of raw materials stored in reserve shall be kept according to the self life determined by the Administrator of the Defense Acquisition Program Administration; and a book of records of the name, storage number, drawing number, specification number, manufacturing date, and manufacturer of each item shall be kept in the place of storage. |
| (3) | The Administrator of the Defense Acquisition Program Administration shall examine conditions, etc. of each raw material in storage on a regular basis at least semi-annually and shall record, keep, and maintain the findings thereof. |
| Article 48 (Order to Keep Raw Materials in Reserve) |
When the Administrator of the Defense Acquisition Program Administration orders a defense contractor to keep a raw material in reserve pursuant to Article 67 (2) of the Decree, he/she shall specify the following matters: | 1. | Items to be stored in reserve, the quantity of the items, and the period of storage; |
| 3. | The quality assurance agency; |
| 4. | Matters concerning required funds (including sampling expenses); |
| 5. | Other matters necessary for storage of raw materials in reserve. |
| Article 49 (Lending of Raw Materials Stored in Reserve) |
| (1) | When the Administrator of the Defense Acquisition Program Administration lends a raw material stored in reserve as State-owned property pursuant to Article 45 of the Act, he/she shall take at least one of the following measures for securing the claim: Provided, That such measures may be omitted if such raw material is lent to a specialized research institute: |
| 1. | A letter of guarantee for payment by a bank; |
| 2. | A guarantee insurance policy in which the State is designated as the insured; |
| 3. | Joint guarantee by at least two defense contractors capable of securing the claim; |
| (2) | A raw material stored in reserve under paragraph (1) shall be lent under a contract made for the raw material stored in reserve in attached Form 15 and shall undergo a technical inspection conducted by a quality assurance agency with respect to standard requirements, quality, etc. |
| Article 50 (Return of Lent Raw Materials) |
| (1) | When a person who has borrowed a raw material stored in reserve pursuant to Article 49 intends to return the raw material, he/she shall deliver the same raw material as the lent raw material in the same kind, quantity, and quality in place of the lent raw material, but a raw material domestically manufactured shall be delivered, if it is possible to manufacture it domestically, while an imported raw material may be delivered in place of the lent raw material, if it is impossible to manufacture it domestically: Provided, That if it is expected that no demand will arise for an item to be returned due to a change in a weapons system or if a raw material is likely to spoil due to prolonged storage, the Administrator of the Defense Acquisition Program Administration may designate substitutes for such item and permit the borrower to deliver a substitute in place of the item. |
| (2) | If the Administrator of the Defense Acquisition Program Administration deems urgently necessary for manufacturing defense materials, he/she may require a raw material borrower to return the lent raw material before the expiration of the period of lending. |
| (3) | If a person who has borrowed a raw material is unable to return the material in accordance with paragraph (2) due to an extenuating circumstance, the person shall notify, without delay, the Administrator of the Defense Acquisition Program Administration of the cause. |
| (4) | If a person who has borrowed a raw material fails to return the raw material after the end of the period of lending, the Administrator of the Defense Acquisition Program Administration may require the borrower to pay an amount determined according to the domestic market price at the time of return: Provided, That if no price is formed in the domestic market or if it is deemed unreasonable to apply a domestic market price, the person may be permitted to pay an amount determined according to the price for imported materials at the time of return. |
| (5) | If the Administrator of the Defense Acquisition Program Administration deems it impracticable to recover a raw material lent to a person due to an extenuating circumstance, he/she may extend the period of lending or defer the payment of the price therefor. |
| (6) | Article 49 (2) shall apply mutatis mutandis to technical inspections on standard requirements, quality, etc. of raw materials to be returned. |
| Article 51 (Bearing of Expenses) |
Expenses incurred in lending or returning raw materials and quality inspections, etc. therefor shall be borne by the person who borrows the raw materials: Provided, That if the Administrator of the Defense Acquisition Program Administration lends a raw material stored in reserve to a defense contractor or a research institute for preferential use, such defense contractor or research institute shall be exempted from expenses incurred in quality inspections related to lending or returning the raw material.
| Article 52 (Approval for Use of Raw Materials Stored in Reserve) |
| (1) | When a defense contractor who keeps a raw material in reserve intends to use the raw material stored in reserve due to an urgent requirement for defense materials, it shall submit the following documents to the Administrator of the Defense Acquisition Program Administration for approval therefor: |
| 1. | A document describing the purposes of use, items, specifications, quantity, the period for use, a plan for replenishing the raw material, etc.; |
| 2. | A document evidencing the necessity for use. |
| (2) | In principle, the use of raw materials stored in reserve under paragraph (1) shall be limited to 50 percent of the raw materials stored by each defense contractor in reserve: Provided, That the foregoing shall not apply in the following cases: |
| 1. | Where two years have passed since stored or where raw materials are likely to spoil; |
| 2. | Where future requirements are anticipated to sharply decrease or cease to exist due to a change in a weapons system; |
| 3. | Where it is inevitable to use the whole quantity because a raw material is stored in a lot, drum, roll, etc.; |
| 4. | Where an order for a raw material has been placed for manufacturing defense materials, but it is impracticable to deliver the defense materials at a suitable time due to delay in the delivery of the raw material. |
| (3) | Article 50 (1) and (3) through (6) shall apply mutatis mutandis to the replenishment of raw materials used by a defense contractor under paragraph (1). In such cases, "period of lending" in the aforesaid Article shall be construed as "period of guarantee", "borrowed" as "used", and "return" as "replenish," respectively. |
| Article 53 (Approval for Replacement of Raw Materials Stored in Reserve) |
| (1) | When a defense contractor intends to replace a raw material stored in reserve with another raw material of the same kind, quantity, and quality on hand because the raw material stored in reserve is likely to spoil due to prolonged storage or if it is deemed necessary to circulate the material, it shall obtain approval therefor from the Administrator of the Defense Acquisition Program Administration. |
| (2) | If the Administrator of the Defense Acquisition Program Administration discovers, as a result of an inspection of a State-owned raw material stored in reserve, that the raw material is likely to spoil or it is deemed necessary to circulate the raw material, he/she may request a defense contractor or a specialized research institute to borrow and preferentially use such raw material stored in reserve. |
| Article 54 (Extension of Period of Storage in Reserve) |
If the Administrator of the Defense Acquisition Program Administration deems it necessary to keep raw materials in reserve even after the expiration of the period of storage, he/she may extend the period of storage and defer the payment of the funds lent for securing raw materials for storage in reserve.
| Article 55 (Notification of Current Status of Raw Materials Stored in Reserve) |
| (1) | Where any raw material is delivered to be stored in reserve in accordance with these Rules, where any raw material stored in reserve is likely to spoil, where any other event occurs to cause a change in the quantity of a raw material stored in reserve, the head of the military unit or defense contractor with such material stored in reserve shall notify the Administrator of the Defense Acquisition Program Administration thereof without delay. |
| (2) | The head of a military unit or defense contractor with any raw material stored in reserve shall notify the Administrator of the Defense Acquisition Program Administration of the current status of such raw material as at June 30 and December 31 each year, respectively, by the end of the following month. |
| (3) | Notice provided for in paragraph (1) or (2) shall be given in attached Form 16 (Notice of Current Status of Raw Materials Stored in Reserve). |
| Article 56 (Permission to Export Major Defense Materials) |
| (1) | A report on business exporting or brokering major defense materials or scientific technologies for national defense under Article 68 (1) of the Decree shall be made in attached Form 17, along with the following documents: Provided, That the documents specified in subparagraphs 2 and 3 may be omitted for a report filed by a defense contractor on business exporting or brokering major defense materials: <Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010> |
| 1. | A certificate of identification number of trade business or the business registration certificate; |
| 2. | One copy of a report on results of security examination; |
| 3. | A letter of recommendation issued by the government of the foreign country to which a foreign company or a foreigner belongs or by the military attache of the diplomatic mission from the government of such foreign country in the Republic of Korea, if the person is a foreign company or a foreigner. |
| (2) | A certificate of reporting of business of exportation or brokerage under Article 68 (2) of the Decree shall be issued in attached Form 18. <Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010> |
| (3) | Each person who intends to obtain permission to export major defense materials or scientific technologies for national defense provided for in Article 39 (2) of the Decree pursuant to Article 68 (3) of the Decree shall file an application therefor with the Administrator of the Defense Acquisition Program Administration in attached Form 19 (Applications for Permission to Export Defense Materials or Scientific Technologies for National Defense), while each person who intends to obtain permission to export general defense materials shall file an application therefor with the Minister of Trade, Industry and Energy in the same form, along with the following documents: <Amended by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010; Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013> |
| 1. | A letter of credit for export, an export agreement, a written order, or a provisional export agreement (including letters of intent and similar documents); |
| 2. | A certificate of end user in attached Form 19-2; |
| 3. | Documents describing the performance and purposes of use of the exported item; |
| 4. | A technology transfer agreement entered into with the institute owning the technology, if a material to which a technology owned by the Republic of Korea is used, or the relevant technology itself, is to be exported; |
| 5. | A letter of consent or permit issued by the government of a foreign country, if exportation requires consent or permission of the foreign government; |
| 6. | A statement explaining domestic and overseas effects resulting from the exportation of technology, if a scientific technology for national defense is exported. |
| (4) | Each person who intends to obtain approval from the Administrator of the Defense Acquisition Program Administration for exporting samples of a major defense material shall file an application for permission to export samples of major defense materials in attached Form 20. |
| Article 57 (Preliminary Approval to Export and Approval to Participate in International Bidding) |
| (1) | Each person who intends to negotiate regarding exportation before obtaining permission to export a major defense material or a scientific technology for national defense pursuant to Article 57 (3) of the Act shall file an application for preliminary approval to export in attached Form 21 with the Administrator of the Defense Acquisition Program Administration, while each person who intends to participate in an international bidding procedure shall file an application for approval to participate in the international bidding procedure in attached Form 22 with the Administrator of the Defense Acquisition Program Administration, along with the following documents: |
| 1. | One copy of the certificate of reporting of trade business; |
| 2. | A purchase order issued by the government of the purchasing state or its agent; |
| 3. | A statement of information about the purchase confirmed by the head or military attache of the diplomatic mission in the purchasing state or a reliable institution or of the source of such information. |
| (2) | Upon receipt of an application for preliminary approval to export a major defense material or approval to participate in an international bidding procedure under paragraph (1), the Administrator of the Defense Acquisition Program Administration shall first consult with the heads of related agencies thereon, if the outflow of the relevant major defense material to a third country is likely to create any diplomatic or national security-related problem. |
| (3) | If the Administrator of the Defense Acquisition Program Administration deems necessary for preliminary approval to export a major defense material or for approval to participate in an international bidding procedure, he/she may require the applicant to submit the following documents in addition to the documents specified in paragraph (1): |
| 1. | A certificate of end user, or a letter of guarantee for no-sale to a third country, issued by the government of the purchasing state; |
| 2. | A letter of confirmation issued by the head of a diplomatic mission in the purchasing state on the certificate or letter of guarantee specified in subparagraph 1; |
| 3. | A letter of undertaking on supply of products by the manufacturer. |
| (4) | If at least two applicants file an application for preliminary approval to export a major defense material or approval to participate in an international bidding procedure respectively for one and the same case, approval may be granted only to one applicant in accordance with the criteria prescribed in attached Table 2: Provided, That if the purchaser has not determined precise specifications for the item to be purchased and at least two persons file an application for an item domestically manufactured with features different from those of others respectively, approval may be granted to the said at least two applicants. |
| (5) | The effective period of preliminary approval to export shall be one year, but may be extended by up to one year only once, if necessary as a result of an evaluation of negotiation activities, etc. conducted by the person to whom approval has been granted. |
| (6) | The effective period of approval to participate in an international bidding procedure shall expire on the closing date of the international bidding procedure: Provided, That no effective period shall be extended beyond one year where an international bidding procedure is postponed. |
| Article 58 (Criteria for Restriction on Qualification of Participation in Bidding) |
| (1) | The detailed criteria for restriction on qualification for participation in a bidding procedure under Article 70 (1) of the Decree shall be as prescribed in attached Table 3. |
| (2) | When the Administrator of the Defense Acquisition Program Administration imposes restrictions on qualification for participation in a bidding procedure under Article 70 (1) of the Decree, he/she may reduce the period of restriction on qualification by up to 1/2 of the period specified in the relevant subparagraph of attached Table 3, taking into consideration the motive for, nature, and frequency of the relevant violations. In such cases, the period of restriction after reduced shall be at least one month. |
[This Article Newly Inserted by Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010]
ADDENDA
Article 1 (Enforcement Date)
These Rules shall enter into force on the date of their promulgation.
Article 2 (Repeal of other Acts and Subordinate Statutes)
Article 3 (Transitional Measures concerning Specialized and Affiliated Companies, etc.)
Article 4 (Transitional Measures concerning Manufacturing Facilities, etc. for Military Firearms, etc.)
Article 5 (Transitional Measures concerning Military Units in charge of Storage in Reserve)
Article 6 (Transitional Measures concerning Raw Materials Stored in Reserve)
Raw materials stored in reserve by a defense contractor, or raw materials regarding which a defense contractor has obtained approval for borrowing, use, or replacement, under the former Enforcement Rules of the Act on Special Measures for the Defense Industry in force as at the time these Rules enter into force shall be deemed raw materials stored in reserve or, raw materials regarding which a defense contractor has obtained approval for borrowing, use, or replacement, under these Rules. Article 7 Omitted.
Article 8 (Relationship to other Acts and Subordinate Statutes)
A citation of any provisions of the former Enforcement Rules of the Act on Special Measures for the Defense Industry by any other Act or subordinate statute in force as at the time these Rules enter into force shall be deemed a citation of these Rules or any corresponding provisions thereto in these Rules in lieu of the former provisions, if such provisions corresponding thereto exist in these Rules.
ADDENDUM <Ordinance of the Ministry of National Defense No. 620, Feb. 21, 2007>
These Rules shall enter into force on the date of their promulgation.
ADDENDA <Ordinance of the Ministry of National Defense No. 646, Mar. 4, 2008>
Article 1 (Enforcement Date)
These Rules shall enter into force on the date of their promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Ordinance of the Ministry of National Defense No. 668, Jan. 7, 2009>
These Rules shall enter into force on the date of their promulgation.
ADDENDUM <Ordinance of the Ministry of National Defense No. 681, Jul. 1, 2009>
These Rules shall enter into force on July 2, 2009.
ADDENDUM <Ordinance of the Ministry of National Defense No. 717, Aug. 13, 2010>
These Rules shall enter into force on the date of their promulgation.
ADDENDUM <Ordinance of the Ministry of National Defense No. 722, Oct. 12, 2010>
These Rules shall enter into force on the date of their promulgation.
ADDENDA <Ordinance of the Ministry of National Defense No. 793, Mar. 23, 2013>
Article 1 (Enforcement Date)
These Rules shall enter into force on the date of their promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Ordinance of the Ministry of National Defense No. 816, Jan. 14, 2014>
These Rules shall enter into force on the date of their promulgation.