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COMPENSATION FOR OIL POLLUTION DAMAGE GUARANTEE ACT

Wholly Amended by Act No. 9740, May 27, 2009

Amended by Act No. 11690, Mar. 23, 2013

Act No. 11757, Apr. 5, 2013

Act No. 12829, Oct. 15, 2014

CHAPTER I
 Article 1 (Purpose)
The purpose of this Act is to promote the protection of victims and the sound development of oil shipment by clearly identifying liability of the shipowners and establishing the system guaranteeing compensation for oil pollution damage, in cases of pollution damage by oil spilled or discharged from ships, including oil tankers, etc.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "oil tanker" means any sea-going vessel (including a barge) of any type whatsoever constructed or adapted for the carriage of oil in bulk as cargo: Provided, That a ship capable of carrying oil or other cargo shall be deemed an oil tanker under this Act only when it is actually carrying oil in bulk as cargo, or it is proved that it has residues of such carriage of oil in bulk aboard;
2. The term "general vessel" means any ship, except oil tankers and oil storage barges;
3. The term "oil storage barge" means a ship used for oil storage which is a floating maritime structure under subparagraph 1 of Article 2 of the Ship Safety Act;
4. The term "shipowner" means a person under the following classifications:
(a) Oil tankers and general vessels: Any person registered as the owner of a ship under Article 8 (1) of the Ship Act, Article 13 (1) of the Fishing Vessels Act, or foreign statutes (in the absence of registration, any person who owns an oil tanker or general vessel): Provided, That in cases of a ship owned by a foreign government, any corporation or association in that country registered as the operator of the oil tanker or general vessel shall be deemed the shipowner under this Act, and in cases of an oil tanker or general vessel of foreign registry chartered by a national of the Republic of Korea, both the person registered as the owner of the ship and the charterer shall be deemed the shipowners under this Act;
(b) Oil storage barges: Any person who owns or rents an oil storage barge;
5. The term "oil" means any persistent hydrocarbon mineral oil such as crude oil, heavy oil, lubricating oil, etc. whether carried on board a ship as cargo or in the bunkers of such a ship, as prescribed by Presidential Decree;
6. The term "fuel oil" means hydrocarbon mineral oil that is used or can be used for operation or propulsion of a ship including lubricating oil.
7. The term "oil pollution damage" means the following damage or costs caused by an oil tanker, general vessel and/or oil storage barge:
(a) Loss or damage caused outside the ship by contamination resulting from the spillage or discharge of oil from a ship, wherever such spillage or discharge may occur: Provided, That compensation for environmental damage, other than the loss of profit from such damage, shall be limited to the costs incurred for measures taken or to be taken for the recovery thereof;
(b) The costs of preventive measures;
(c) Additional loss or damage caused by preventive measures;
8. The term "incident" means any occurrence or a series of occurrences having the same origin, which causes oil pollution damage or creates a grave and imminent threat of causing such damage;
9. The term "preventive measure" means any and all reasonable measures taken by any party or a third party after an incident has occurred to prevent or mitigate oil pollution damage;
10. The term "insurer, etc." means any person who compensates the damage of the shipowner or guarantees the performance of compensatory obligation under an indemnity contract for compensation for oil pollution damage as provided for in this Act;
11. The term "limited claim" means any claim against the shipowner or the insurer, etc., for which such owner or insurer, etc. may limit his/her liability under this Act;
12. The term "beneficiary obligor" means any person who is an obligor to the limited claim in the relevant procedure for limiting liability, other than the person who applies for the initiation of the procedure for limiting liability;
13. The term "Liability Convention" means the International Convention on Civil Liability for Oil Pollution Damage, 1992;
14. The term "International Fund Convention" means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992;
15. The term "International Fund" means the International Fund for Compensation for oil pollution damage under Article 2 (1) of the International Fund Convention.
16. The term "Additional Fund Convention" means the Protocol of 2003 to the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992;
17. The term "Additional Fund" means the international fund for compensation for oil pollution damage under Article 2 (1) of the Additional Fund Convention;
18. The term "Bunker Oil Convention" means the International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001.
 Article 3 (Scope of Application)
This Act shall apply to oil pollution damage caused in the territory (including the territorial sea: hereinafter the same shall apply) of the Republic of Korea and in the exclusive economic zone of the Republic of Korea: Provided, That this Act shall apply to preventive measures wherever taken to prevent or mitigate such oil pollution damage in the territory of the Republic of Korea and in the exclusive economic zone of the Republic of Korea.
 Article 4 (Tonnage of Ships)
The term "gross tonnage" referred to in this Act means the international gross tonnage pursuant to Article 3 (1) 1 of the Ship Act as to ships engaged in international voyages, and the gross tonnage pursuant to subparagraph 2 of the same paragraph of the same Article As for other cases.
CHAPTER II OIL TANKERS
SECTION 1 Liability of Oil Tankers for Oil Pollution Damage
 Article 5 (Liability of Oil Tankers for Oil Pollution Damage)
(1) Where an oil tanker causes oil pollution damage, the owner of the oil tanker as at the time of the incident shall be liable for the damage: Provided, That this provision shall not apply if the oil pollution damage falls under any of the following subparagraphs:
1. The incident is a result of an event of force majeure, such as war, insurrection, riot or an act of God;
2. The incident is wholly caused with intent to cause damage by a third party, other than the owner of the oil tanker or his/her employee;
3. The incident is wholly caused due to any defect in the maintenance of navigational marks or navigational aids by the State or a public organization.
(2) When an incident involving two or more oil tankers occurs, and it is uncertain that the oil pollution damage is caused by oil spilled or discharged from any particular ship, the owners of all the oil tankers concerned shall be jointly and separately liable for all such damage: Provided, That if the oil pollution damage falls under any of the subparagraphs of paragraph (1), the owner of the oil tanker concerned shall not be held liable for the damage.
(3) Where oil pollution damage is caused by a series of occurrences, the owner of the oil tanker as at the time of the first occurrence shall be deemed the shipowner at the time of the incident.
(4) Where pollution damage is caused by a ship of foreign registry chartered by a national of the Republic of Korea, the owner and the charterer of the oil tanker shall be jointly and separately liable for such damage.
(5) No claim for compensation under Chapter 2 of this Act may be made against any person falling under any of the following subparagraphs: <Amended by Act No. 11757, Apr. 5, 2013>
1. The agents, employees, or crew members of the owner of the oil tanker;
2. The pilot or any other person who, without being a member of the crew, performs services for the ship;
3. Any charterer (excluding a hull charterer under the proviso to item (a) of subparagraph 4 of Article 2), manager or operator of the oil tanker;
4. Any person performing salvage operations with the consent of the owner of the oil tanker or on the instructions of a competent public authority;
5. Any person taking preventive measures;
6. Any agent or employee of a person falling under any of subparagraphs 3 through 5.
(6) The shipowner who compensates for oil pollution damage caused by an oil tanker may exercise the right to indemnity from any third party related to the incident: Provided, That the exercise of the right to indemnity from any person falling under any subparagraph of paragraph (5) shall be limited to damage caused deliberately, or resulting from his/her personal act or omission committed recklessly with knowledge that such damage would probably result.
 Article 6 (Consideration of Liability)
Where oil pollution damage by an oil tanker is caused by the victims’ willful intention or negligence, the court shall take such information into consideration when deciding upon liability for and the amount of compensation.
 Article 7 (Limitation of Liability of Shipowner)
(1) The owner of an oil tanker (including partners with unlimited liability in cases of a corporation) who is liable to compensate for oil pollution damage caused by an oil tanker under the main sentence, other than the subparagraphs of Article 5 (1) or the main sentence of paragraph (2) of the same Article, may limit liability for compensation for oil pollution damage caused by said oil tanker in accordance with the provisions of this Act: Provided, That this provision shall not apply to cases where oil pollution damage caused by the oil tanker resulting from his/her act committed with intent to cause such damage, or from act or omission committed recklessly with knowledge that such damage would probably result.
(2) Any owner of an oil tanker who intends to limit liability for oil pollution damage under the main sentence of paragraph (1) shall make an application for the initiation of the procedure for limiting liability to the court under Article 9 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. within six months from the date when he/she receives a written claim for compensation by the claimant, which states the amount exceeding the limit of liability under Article 8.
 Article 8 (Aggregate Amount of Liability)
(1) Where the owner of an oil tanker is able to limit his/her liability under the main sentence of Article 7 (1), the aggregate amount of liability shall be as follows:
1. For an oil tanker with the gross tonnage not exceeding 5,000 units of tonnage: the amount equivalent to 4.51 million units of account;
2. For an oil tanker with the gross tonnage in excess of 5,000 units, the amount calculated by multiplying each additional unit of tonnage by 631 units of account shall be added to the amount mentioned in subparagraph 1, within the limit of the aggregate amount corresponding to 89.77 million units of account.
(2) The "units of account" referred to in paragraph (1) is the Special Drawing Right as defined by the International Monetary Fund, and the calculation of units of account in terms of the Korean currency shall be made in accordance with the provisions of Article 11 (2) of the Act on the Procedure for Limiting the Liability of Shipowners, etc.
 Article 9 (Scope of Limitation of Liability)
For each oil tanker, the shipowner''s limit of liability shall extend to all limited claims against the shipowner, the insurer, etc. related to the same incident involving the said ship.
 Article 10 (Ratio of Payment for Limited Claimant)
When the owner of an oil tanker limits his/her liability in accordance with Article 7, a limited claimant shall be paid according to the ratio of the amount of limited claims.
 Article 11 (Extinction of Rights)
Rights to claim for damages against the owner of an oil tanker under Article 5 (1) or (2) shall be extinguished unless a judicial claim is brought within three years from the date the oil pollution damage occurred, or within six years from the date of the initial incident which caused the oil pollution damage.
 Article 12 (Jurisdiction over Actions for Compensation for Oil Pollution Damage against Owners of Oil Tankers)
Any action against the owner of an oil tanker shall fall under the jurisdiction of the court prescribed by the Supreme Court Regulations unless its jurisdiction has been determined by other Acts.
 Article 13 (Validity of Foreign Judgments)
(1) Any final and conclusive judgment rendered by a foreign court with jurisdiction on an action seeking compensation for oil pollution damage caused by an oil tanker shall be valid under Article 9 (1) of the Liability Convention except in the following cases:
1. Where the judgment was obtained by fraud;
2. Where the defendant was not served with a summon or order necessary for the initiation of the trial, or was not given a fair opportunity to present his/her case.
(2) In the application of Article 27 (2) of the Civil Execution Act concerning execution of the final and conclusive judgment under paragraph (1), the phrase "when the foreign judgment fails to fulfill the conditions under Article 217 of the Civil Procedure Act" in the subparagraph 2 of the same paragraph shall be construed as "when the foreign judgment falls under any subparagraph of Article 13 (1) of the Compensation for Oil Pollution Damage Guarantee Act."
SECTION 2 Indemnity Contract for Compensation for Oil Pollution Damage by Oil Tankers
 Article 14 (Conclusion of Indemnity Contract)
(1) The owner of an oil tanker registered in the Republic of Korea and carrying not less than 200 tons of oil in bulk as cargo shall conclude an indemnity contract for compensation for oil pollution damage (hereinafter referred to as "indemnity contract").
(2) The owner of an oil tanker, other than those registered in the Republic of Korea, which carries not less than 200 tons of oil in bulk as cargo and enters or leaves a domestic port, or uses domestic mooring facilities, shall conclude an indemnity contract.
(3) The Minister of Oceans and Fisheries may order any oil tanker in violation of paragraph (1) to suspend its navigation and operation. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The Minister of Oceans and Fisheries may refuse any oil tanker which violates paragraph (2) to enter or leave a domestic port or may refuse to permit it to use domestic mooring facilities. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 15 (Indemnity Contracts)
(1) Any indemnity contract shall be an insurance contract which compensates the damage suffered by the owner of an oil tanker due to fulfillment of his/her obligations for compensation, or a contract which guarantees the fulfillment of his/her obligation for compensation, where the owner of an oil tanker is liable to compensate for oil pollution damage caused by oil on board the ship.
(2) The owner of an oil tanker shall conclude an indemnity contract with an insurer, etc. prescribed by Ordinance of the Ministry of Oceans and Fisheries who has financial capability to compensate the damage of the owner of an oil tanker or guarantee the fulfillment of his/her obligation to compensate for damage. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The insured amount or the amount to guarantee the fulfillment of compensatory obligation under the indemnity contract concluded under paragraph (2) may not be less than the amount of liability provided for by Article 8 for each oil tanker.
(4) An indemnity contract shall be one which may lose its validity or alter its contents only when it falls under Article 7 (5) of the Liability Convention.
 Article 16 (Claims for Compensation against Insurers, etc.)
(1) A victim suffering oil pollution damage caused by an oil tanker may directly make claims against the insurer, etc. that concluded the indemnity contract with the owner of the oil tanker: Provided, That in cases of damage resulting from the intentional misconduct of the owner of the oil tanker, this provision shall not apply.
(2) The insurer, etc. may assert against the victim only those defenses which the owner of an oil tanker may assert against the victim.
(3) The provisions of Articles 5 (6) and 7 through 11 shall apply mutatis mutandis to compensation for damage by the insurers, etc.
 Article 17 (Jurisdiction of Claims for Compensation for Pollution Damage against Insurers, etc.)
A victim who files a claim for compensation for damage under the main sentence of Article 16 (1) may also institute an action against the insurer, etc. with the court having jurisdiction under Article 12.
 Article 18 (Certificate of Indemnity Contract)
(1) The Minister of Oceans and Fisheries shall issue a document (hereinafter referred to as "certificate of indemnity contract") attesting that an oil tanker (excluding oil tankers of foreign registration which are Contracting States to the Liability Convention) has concluded an indemnity contract in cases where the owner of the oil tanker who has concluded the indemnity contract with an insurer, etc. applies for such document. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Any person who intends to obtain a certificate of indemnity contract under paragraph (1) shall submit an application stating the name of the ship, type of indemnity contract, and other matters determined by Ordinance of the Ministry of Oceans and Fisheries to the Minister of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The application, issuance, re-issuance, period of validity, fees and other necessary matters concerning the certificate of indemnity contract shall be prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 19 (Alteration of Entries in Certificate of Indemnity Contracts)
(1) Any person who has been issued a certificate of indemnity contract shall, in cases of alteration of an entry in the certificate, report such altered matters to the Minister of Oceans and Fisheries within 15 days from the date of such alteration. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Oceans and Fisheries shall, upon receipt of a report under paragraph (1), issue a new certificate of indemnity contract to the reporter. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 20 (Keeping of Certificates of Indemnity Contracts)
(1) Any oil tanker of the Republic of Korea carrying not less than 200 tons of oil in bulk as cargo shall keep a certificate of indemnity contract on board.
(2) Any oil tanker, other than those of the Republic of Korea’s registry, that carries not less than 200 tons of oil in bulk as cargo and enters or leaves a domestic port, or uses the domestic mooring facilities shall keep a document of the form described by the Annex to the Liability Convention by which any foreign Contracting State to the contract attests that any indemnity contract for such ship has been concluded, or a document filled out and issued by any foreign country under Article 7 (12) of the Liability Convention with respect to the ship.
SECTION 3 Claims, Contributions, etc. in respect of International Fund
 Article 21 (Claims for Compensation by Victims from International Fund)
Any victim suffering oil pollution damage caused by an oil tanker may claim for compensation under Article 4 (1) of the International Fund Convention in respect of the amount of compensation for damage the person has been unable to receive from the shipowner or the insurer, etc. of the oil tanker under the terms of the International Fund Convention.
 Article 22 (Intervention by International Fund)
(1) Where any action against the owner of an oil tanker or the insurer, etc. is pending, the International Fund may intervene in an action as a party.
(2) Article 79 of the Civil Procedure Act shall apply mutatis mutandis to cases under paragraph (1).
 Article 23 (Notification of Litigation to International Fund)
(1) Any party may notify the International Fund that a claim is pending.
(2) Article 85 of the Civil Procedure Act shall apply mutatis mutandis to cases under paragraph (1).
 Article 24 (Jurisdiction over Claims to International Fund)
(1) With respect to the jurisdiction over a claim to the International Fund for compensation under Article 4 (1) of the International Fund Convention, Article 17 shall apply mutatis mutandis.
(2) Notwithstanding the jurisdiction under paragraph (1), where a claim for compensation for damage to the owner of an oil tanker or the insurer, etc. is pending in the court of the first instance, or where a liability limitation case is pending, such court shall have exclusive jurisdiction over any claim for compensation for damage to the International Fund concerning the same pollution damage.
 Article 25 (Validity of Foreign Judgments)
Article 13 shall apply mutatis mutandis to the validity of a final and conclusive judgement rendered by a foreign court with jurisdiction under Article 7 (1) or (3) of the International Fund Convention.
 Article 26 (Report of Quantity of Contributing Oil)
(1) Any person (hereinafter referred to as "oil receiver") who receives oil determined by Presidential Decree which is carried by sea and discharged into Korea (hereinafter referred to as "contributing oil") shall report the quantity of oil received to the Minister of Oceans and Fisheries in the next year as prescribed by Ordinance of the Ministry of Oceans and Fisheries, in cases where the aggregate quantity of contributing oil received in that year exceeds 150,000 tons. In such cases, any person who receives contributing oil on behalf of others, such as the owner of a leased tank, shall not be deemed the oil receiver, but any person who has another person receive contributing oil shall be deemed the oil receiver. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where any person governs the business activities of oil receivers, such person shall report the quantity of oil received by each oil receiver to the Minister of Oceans and Fisheries in the next year, as prescribed by Ordinance of the Ministry of Oceans and Fisheries when the annual aggregate quantity of contributing oil (the aggregate quantity added by the person governing the business activities of the oil receiver where he/she has received contributing oil) received by the oil receiver exceeds 150,000 tons. In such cases, paragraph (1) shall not apply to any of the oil receiver. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The scope of any person who governs the business activities of oil receivers under paragraph (2) shall be prescribed by Presidential Decree.
 Article 27 (Communication of Data to International Fund)
(1) The Minister of Oceans and Fisheries shall, upon receipt of a report under Article 26 (1) or (2), notify the Minister of Trade, Industry and Energy of the details of the report and submit a document stating the matters provided for in Article 15 (2) of the International Fund Convention to the International Fund. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The Minister of Oceans and Fisheries shall, where he/she submits the document to the International Fund under paragraph (1), inform the oil receivers stated therein of the quantity of contributing oil notified to the International Fund. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 28 (Payment of Contributions)
(1) Any oil receiver, or a person governing the business activities of oil receiver who is to report the quantity of contributing oil under Article 26 (1) or (2) shall pay contributions (hereinafter referred to as "contributions") under Article 10 of the International Fund Convention to the International Fund in accordance with Articles 12 and 13 of the International Fund Convention.
(2) Where any person (hereinafter referred to as "obligated payer") who is liable to pay contributions under paragraph (1) falls into arrears, he/she shall pay interest at a rate determined by the General Assembly of the International Fund, in addition to the contributions in arrears.
 Article 29 (Notice of Demand for Defaulters of Contributions)
Where any obligated payer falls into arrears, the Minister of Oceans and Fisheries shall demand the person to pay the contributions. <Amended by Act No. 11690, Mar. 23, 2013>
SECTION 4 Claims, Contributions, etc. in respect of Additional Fund
 Article 30 (Claims for Compensation by Victims from Additional Fund)
Any victim suffering oil pollution damage caused by an oil taker may claim for compensation under Article 4 (1) of the Additional Fund Convention from the Additional Fund under the terms of the Additional Fund Convention in respect of the oil pollution damage exceeding the compensation limit of the International Fund.
 Article 31 (Application Mutatis Mutandis)
With regard to any claim for compensation from the Additional Fund under Article 30, and any contribution, etc., Section 3 (excluding Article 21) shall apply mutatis mutandis. In such cases, "the International Fund" in Articles 22 through 24 and 28 shall be construed as "the Additional Fund"; "Article 4 (1) of the International Fund Convention" in Article 24 (1) as "Article 4 (1) of the Additional Fund Convention"; "Article 7 (1) or (3) of the International Fund Convention" in Article 25 as "Article 7 of the Additional Fund Convention"; "Article 15 (2) of the International Fund Convention" in Article 27 (1) as "Article 13 (1) of the Additional Fund Convention"; "Articles 12 and 13 of the International Fund Convention" in Article 28 (1) as "Articles 11, 12 (1) and 18 of the Additional Fund Convention"; and "Article 10 of the International Fund Convention" as "Article 10 of the Additional Fund Convention."
SECTION 5 Procedure for Limiting Liability
 Article 32 (Application for Initiation of Procedure for Limiting Liability)
(1) Any shipowner or insurer, etc. may apply for the initiation of procedure for limiting liability to the court under the Act on the Procedure for Limiting the Liability of Shipowners, etc. in order to place limits on liability for oil pollution damage.
(2) Any case filed for the initiation of procedure for limiting liability (hereinafter referred to as "liability limitation case") under paragraph (1) shall fall under the exclusive jurisdiction of the district court which has jurisdiction over the location where the oil pollution damage by an oil tanker took place.
(3) Any liability limitation case pertaining to preventive measures taken beyond the territory and the exclusive economic zone of the Republic of Korea in order to prevent damage in the territory and in the exclusive economic zone of the Republic of Korea shall fall under the jurisdiction of the court prescribed by the Supreme Court Regulations, if any court jurisdiction has not been determined under paragraph (2).
 Article 33 (Transfer of Liability Limitation Cases)
The court may transfer ex officio any liability limitation case to any other court jurisdiction, to the court which has universal jurisdiction over the limited claimant, or to the court where the liability limitation case concerning oil pollution damage caused by the same incident is pending, where it is deemed necessary to avoid serious damage or delay.
 Article 34 (Order of Deposit)
(1) Where the application for the initiation of procedure for limiting liability under Article 32 (1) is deemed appropriate, the court shall order the applicant to deposit the amount equivalent to the aggregate amount of liability under Article 8 plus interest on said amount calculated at an annual interest rate of six percent over the period from the date of the incident, or any other date designated by the court as the initial date, to the due date of deposit within a period not exceeding 14 days.
(2) Article 11 (2) and (3) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. shall apply mutatis mutandis to the calculation of the aggregate amount of liability under paragraph (1), and service of the order for deposit.
(3) Any person applying for the initiation of procedure for limiting liability may submit a written guarantee of deposit in place of cash deposit prescribed in paragraph (1), with permission of the court.
(4) Articles 13 through 15 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. shall apply mutatis mutandis to the document of a written guarantee of deposit prescribed in paragraph (3).
(5) An immediate appeal may be made against any decision referred to in paragraph (1).
 Article 35 (Intervention of International Fund)
The International Fund may intervene in the procedure for limiting liability, as prescribed by the Supreme Court Regulations.
 Article 36 (Notification of Pending Procedure for Limiting Liability to International Fund)
(1) Any person who applies for the initiation of procedure for limiting liability, beneficiary obligor, or intervener in the procedure for limiting liability may notify the pending procedure for limiting liability to the International Fund.
(2) Any person who intends to make a notification under paragraph (1) shall submit, to the court, a document stating the matters prescribed by each subparagraph of Article 21 (1) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applied mutatis mutandis under Article 41.
(3) The court shall serve the document submitted under paragraph (2) upon the International Fund.
 Article 37 (Service of Notification, etc. on Cancellation of Decision to Initiate Procedure for Limiting Liability to International Fund)
(1) The court shall serve a document stating any alterations in the matters as prescribed in Article 21 (1) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applied mutatis mutandis under Article 41 after the International Fund intervenes in the procedure or service has been made to the International Fund in accordance with Article 36 (3), and shall serve a document stating matters concerning notification to the International Fund when notification is made in accordance with Article 25 (1), 83 (1) and 85 (1) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applied mutatis mutandis under Article 41.
(2) Article 8 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. shall apply mutatis mutandis to cases under paragraph (1).
 Article 38 (Intervention in Procedure for Limiting Liability by Shipowner Who Takes Preventive Measures)
(1) A shipowner who takes preventive measures may intervene in the procedure for limiting liability as a person with limited claims concerning the expenses of the preventive measures.
 Article 39 (Suspension of Legal Proceedings)
(1) Where an action between the claimant and the applicant or beneficiary obligor concerning limited claims reported under Article 43 of the Act on the procedure for Limiting the Liability of Shipowners, etc. applicable mutatis mutandis under Article 41, is pending, the court may order the suspension of legal proceedings ex officio or upon request by a plaintiff in cases of intervention in the procedure or receipt of the notification under Article 23 (1) by the International Fund, and in other cases the court may suspend the proceedings, upon request by a plaintiff.
(2) Where a report referred to in Article 43 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applicable mutatis mutandis under Article 38 (2) is made, the court may order ex officio the suspension of legal proceedings when a claim to the International Fund for compensation under Article 4 (1) of the International Fund Convention is pending.
(3) In cases under paragraph (1), when the court orders the suspension of legal proceedings upon request by the plaintiff, the court may cancel the suspension order upon request by the plaintiff.
 Article 40 (Intervention, etc. of Additional Fund)
Articles 35 through 37, and Article 39 shall apply mutatis mutandis to matters such as intervention of the Additional Fund for limiting liability and notification of pending procedures for limiting liability to the Additional Fund. In such cases, the term “International Fund” in Articles 35 through 37, and 39 shall be construed as “Additional Fund,” and the term “International Fund Convention” in Article 39 (2) as “Additional Fund Convention.”
 Article 41 (Application Mutatis Mutandis of the Act on the Procedure for Limiting Liability for Shipowners, etc.)
The provisions of the Act on the Procedure for Limiting the Liability of Shipowners, etc. in addition to this Act shall apply mutatis mutandis to the procedure for limiting liability under this Act. In such case, "this Act" in Articles 4, 6 through 8, 27, 34 and 88 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. shall be construed as "this Act made applicable mutatis mutandis under Article 41 of the Compensation for Oil Pollution Damage Guarantee Act." "The total amount of limited claims (excluding interest or delay penalty after the occurrence of the fact giving rise to them, or claims including penalty for breach of contract, etc. The same shall apply to subparagraph 1 of Article 18.) under Article 770 (1) of the Commercial Act exceeds the corresponding maximum amount of liability" in Article 10 of the same Act shall be construed "the amount of limited claims exceeds the maximum amount of liability of Article 8 of the Compensation for Oil Pollution Damage Guarantee Act." "Maximum amount of liability under each subparagraph of Article 770 (1) and (4) of the Commercial Act" in Article 11 (1) of the same Act shall be construed as "maximum amount of liability under Article 8 of the Compensation for Oil Pollution Damage Guarantee Act," and "Article 776 (1) of the Commercial Act" in Article 17 (1) of the same Act shall be construed as "Article 7 (2) of the Compensation for Oil Pollution Damage Guarantee Act." "Article 770 (1) of the Commercial Act" in subparagraph 1 of Article 18 of the same Act shall be construed as "Article 8 (1) of the Compensation for Oil Pollution Damage Guarantee Act," and "proviso to Article 769 or the reasons of each subparagraph of Article 773 of the Commercial Act" in subparagraph 2 of the same Article shall be construed as "proviso to Article 7 (1) of the Compensation for Oil Pollution Damage Guarantee Act." "The content and assorting of limited claims under Article 770 (1) of the Commercial Act" in Articles 53, 56 and 57 (2) of the same Act shall be construed as "the content." "The next, according to the assorting of limited claims under each subparagraph of Article 770 (1) of the Commercial Act" in Article 66 (2) of the same Act shall be construed as "the next."
 Article 42 (Supreme Court Regulations)
Matters necessary for the procedure for limiting liability under this Act, other than those prescribed in this Act, shall be provided for by the Supreme Court Regulations.
CHAPTER III GENERAL VESSELS AND OIL STORAGE BARGES
SECTION 1 Liability of General Vessels and Oil Storage Barges for Oil Pollution Damage
 Article 43 (Liability of General Vessels for Oil Pollution Damage)
(1) The owner of a general vessel shall be liable for oil pollution damage caused by fuel oil from the general vessel: Provided, That this provision shall not apply if the oil pollution damage caused by fuel oil from the general vessel falls under any subparagraph of Article 5 (1). <Amended by Act No. 11757, Apr. 5, 2013>
(2) As for the liability of a general vessel for oil pollution damage caused by fuel oil from the general vessel, Article 5 (2) through (4), main sentence of paragraph (6) of the same Article and Article 6 shall apply mutatis mutandis. In such cases, "oil tanker" shall be deemed "general vessels," "oil" shall be deemed "fuel oil," and "the owner of an oil tanker" shall be deemed "the owner of a general vessel." <Amended by Act No. 11757, Apr. 5, 2013>
(3) As for the rights to claim for damage to the owners of general vessels, Article 11 shall apply mutatis mutandis. In such cases, the "owner of an oil tanker" shall be construed as the "owner of a general vessel."
 Article 44 (Liability of Oil Storage Barges for Oil Pollution Damage)
(1) The owner of an oil storage barge shall be liable for oil pollution damage caused by oil from the oil storage barge: Provided, That this provision shall not apply if the oil pollution damage falls under any subparagraph of Article 5 (1).
(2) As for the liability for oil pollution damage caused by oil storage barges, Article 5 (2) through (4), main sentence of paragraph (6) of the same Article and Article 6 shall apply mutatis mutandis. In such cases, "oil tanker" shall be deemed "oil storage barge," and "the owner of an oil tanker" shall be deemed "the owner of an oil storage barge."
(3) As for the rights to claim for damage to the owners of oil storage barges, Article 11 shall apply mutatis mutandis. In such cases, the "owner of an oil tanker" shall be construed as the "owner of an oil storage barge."
 Article 45 (Limitation of Liability of Owners of General Vessels)
Articles 9 and 10 shall apply mutatis mutandis, and Articles 769, 770 (1) and 771, subparagraph 4 of Article 773, and Articles 774 through 776 of the Commercial Act shall apply, to limitation of liability of the owner of a general vessel (including partners with unlimited liability such as the corporate owner of a general vessel) who is liable for compensation for oil pollution damage caused by fuel oil from a general vessel. Where Articles 9 and 10 apply mutatis mutandis, the term “oil tanker” shall be construed as “general vessel.” <Amended by Act No. 11757, Apr. 5, 2013>
 Article 46 (Limitation of Liability of Owners of Oil Storage Barges)
Articles 7 through 10, 32 through 34, 38, 39 and 40 shall apply mutatis mutandis to limitation of liability of the owner of an oil storage barge (including partners with unlimited liability such as the corporate owner of an oil storage barge) who is liable for compensation for oil pollution damage caused by fuel oil from an oil storage barge. In such cases, the term “oil tanker” shall be construed as “oil storage barge.”
SECTION 2 Indemnity Contract for Compensation for Oil Pollution Damage by General Vessels and Oil Storage Barges
 Article 47 (Conclusion of Indemnity Contracts)
(1) The owner of the following vessels shall enter into an indemnity contract for compensation for oil pollution damage (hereinafter referred to as "indemnity contract for damage compensation") in order to guarantee the liability of compensation for oil pollution damage under the main sentences of Articles 42 (1) and Article 44 (1): <Amended by Act No. 11757, Apr. 5, 2013>
1. A general vessel (excluding general vessels prescribed by Ordinance of the Ministry of Oceans and Fisheries, not loaded with fuel oil) of a gross tonnage of over 1,000, registered in the Republic of Korea;
2. An oil storage barge storing more than 200 tons of oil.
(2) The owner of a general vessel of more than 1,000 gross tonnage which is registered in a foreign country and enters or leaves a domestic port, or uses domestic mooring facilities shall conclude an indemnity contract for damage compensation.
(3) The Minister of Oceans and Fisheries may order any general vessel in violation of paragraph (1) to suspend its navigation and operation. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The Minister of Oceans and Fisheries may refuse any general vessel which violates paragraph (2) to enter or leave a domestic port or may refuse to permit it to use domestic mooring facilities. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 48 (Indemnity Contract for Damage Compensation)
(1) Any indemnity contract for damage compensation shall be an insurance contract which compensates damage suffered by the owner of a general vessel or oil tanker by fulfilling his/her obligation of compensation, or a contract which guarantees the fulfillment of his/her obligation of compensation, where the shipowner is liable to compensate for oil pollution damage caused by the relevant vessel.
(2) As for the insurer, etc. with whom the owner of a general vessel or oil tanker may conclude an indemnity contract for damage compensation, Article 15 (2) shall apply mutatis mutandis. In such cases, "the owner of an oil tanker" shall be deemed "the owner of a general vessel or oil storage barge."
(3) The amount of the indemnity contract for damage compensation may not be less than each of the following subparagraphs.
1. The amount of insurance to compensate the damage suffered by the owner of a general vessel (including indirect damage resulting from oil pollution damage), or the amount to guarantee the fulfillment of compensatory obligation may not be less than the amount of liability provided for by Article 770 (1) 3 of the Commercial Act for each general vessel.
2. The amount of insurance to compensate the damage suffered by the owner of an oil storage barge (including indirect damage resulting from oil pollution damage), or the amount to guarantee the fulfillment of compensatory obligation may not be less than the amount of liability provided for by Article 8 for each oil storage barge.
 Article 49 (Application Mutatis Mutandis)
(1) As for the indemnity contract for damage compensation and the compensation for damage against the insurers, etc. of general vessels and oil storage barges, Articles 16 through 19 shall apply mutatis mutandis. In such cases, "oil tanker" shall be deemed "general vessel or oil storage barge," and "indemnity contract" shall be deemed "indemnity contract for damage compensation." "The owner of an oil tanker" shall be deemed "the owner of a general vessel or oil storage barge," and "any foreign Contracting State of the Liability Convention" shall be deemed "any foreign Contracting State of the Bunker Convention. <Amended by Act No. 11757, Apr. 5, 2013>
(2) Article 13 shall apply mutatis mutandis to a final and conclusive judgement on an action, seeking compensation for oil pollution damage caused by fuel oil from a general vessel, tried by a foreign court with jurisdiction under Article 9 (1) of the Bunker Convention. <Newly Inserted by Act No. 11757, Apr. 5, 2013>
 Article 50 (Keeping of Certificate of Indemnity Contract for Damage Compensation)
(1) Any general vessel of more than 1,000 gross tonnage registered in the Republic of Korea shall keep a certificate of an indemnity contract for damage compensation on board.
(2) Any oil storage barge shall keep a certificate of an indemnity contract for damage compensation on board or in the main office of the owner of the oil storage barge.
(3) Any general vessel of more than 1,000 gross tonnage registered in a foreign country which enters or leaves a domestic port, or intends to use domestic mooring facilities shall keep an indemnity contract for damage compensation on board
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 51 (Priority Rights of Ship)
(1) As for the oil pollution damage of oil tankers, general vessels, and oil storage barges, limited claimants shall have priority rights upon the incident ship, parts and uncollected freight charges concerning limited claims.
(2) The priority rights under paragraph (1) shall follow rights under Article 777 (1) 4 of the Commercial Act.
(3) Articles 777 through 786 of the Commercial Act shall apply mutatis mutandis to the priority rights under paragraph (1).
 Article 52 (Effect of Limitation of Liability in Foreign Contracting State)
(1) Where a limitation of liability is set in a foreign contracting state to the Liability Convention under subparagraph 3 of Article 5 of the Liability Convention, no claimant who holds limited claims for compensation from the maximum amount of liability of the shipowner may exercise his/her rights upon the properties of the shipowner or insurer, etc. other than the maximum amount of liability.
 Article 53 (Appraisal of Oil Pollution Damage)
The requirements to be satisfied by any person who investigates damage caused by oil pollution, calculates the amount of damage and appraises oil pollution damage shall be prescribed by Presidential Decree, if necessary.
 Article 54 (Information on Indemnity Contracts)
(1) The captain of a specific vessel (an oil tanker used for transporting not less than 200 tons of oil in bulk, or a general vessel of more than 1,000 gross tonnage; The same shall apply hereafter in this Chapter) that intends to enter a domestic port from a port located in a foreign location shall notify the Minister of Oceans and Fisheries of matters prescribed by Ordinance of the Ministry of Oceans and Fisheries, including the name of the specific vessel, port of loading, the indemnity contract under this Act, or whether the indemnity contract for damage compensation has been concluded (hereinafter referred to as "information on indemnity contract") in advance, as prescribed by Ordinance of the Ministry of Oceans and Fisheries. The same shall apply where the information on indemnity contract that has been notified is to be changed. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Notwithstanding paragraph (1), the captain of a specific vessel shall, where the information on indemnity contract is unable to be notified to the Minister of Oceans and Fisheries before entry into the port due to unavoidable reasons, including bad weather, distress, and other reasons prescribed by Ordinance of the Ministry of Oceans and Fisheries, notify the information on indemnity contract immediately after entry into the port, as prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013>
(3) The notification of the information on indemnity contract under paragraphs (1) and (2) may be conducted by the owner of the specific vessel concerned or his/her agent.
 Article 55 (Entrance and Exit for Inspections, Reports, etc.)
(1) The Minister of Oceans and Fisheries may, when he/she deems necessary, order the presentation of pertinent documents under Articles 20, 26 or 50, or have public officials under his/her control enter the ship or the place of business and inspect or verify pertinent documents. <Amended by Act No. 11690, Mar. 23, 2013>
(2) Where a shipowner submits a copy of the certificate of the indemnity contract and other pertinent documents provided in Article 20 (1) or 50 (1), he/she shall be deemed to have had his/her ship or workplace inspected by means of entrance and exit pursuant to paragraph (1): Provided, That when any question is raised about the submitted documents as a result of their examination, public officials under his/her control may be ordered to enter the ship for further inspection.
(3) The Minister of Oceans and Fisheries may operate a computerized processing system in order to select ships to be subject to an inspection referred to in paragraphs (1) and (2), announce their inspections in advance, and inquire about the results of their inspections. <Amended by Act No. 11690, Mar. 23, 2013>
(4) Where the public officials enter and exit ships in order to inspect such ships pursuant to paragraphs (1) and (2), the relevant places of business and shipowners shall be notified by the Minister of Oceans and Fisheries of matters concerning inspectors, the inspection date, reasons for and contents of the inspection not later than seven days before the inspection is conducted and in advance, respectively, and the relevant places of business and shipowners shall be notified by the Minister of Oceans and Fisheries of the results of the inspection after the inspection is completed: Provided, That the same shall not apply to cases where it is necessary to conduct an inspection urgently, or it is deemed impossible to attain the objectives of the inspection or verification due to evidence destruction, etc. if they are notified of the inspection in advance. <Amended by Act No. 11690, Mar. 23, 2013>
(5) Any public official who intends to carry out the inspection or verification under paragraph (1) shall carry a certificate indicating his/her authority and produce it to related persons.
 Article 56 (Ships for Public Use)
This Act shall not apply to any ship owned by the Republic of Korea and is offered for public use.
 Article 57 (Delegation and Entrustment of Authority)
(1) The Minister of Oceans and Fisheries may delegate part of authority under this Act to the heads of affiliated institutions, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The duties described in the following subparagraphs may be entrusted to agencies specialized in maritime disaster prevention designated by the Minister of Oceans and Fisheries, as prescribed by Presidential Decree: <Amended by Act No. 11690, Mar. 23, 2013>
1. Receipt and processing of reports of the quantities of contributing oil received under Article 26 (1) and (2);
2. Notification and presentation of documents under Article 27 (1) and notification of the quantities of contributing oil under paragraph (2) of the same Article;
3. Notice of demand for the payment of contributions under Article 29.
CHAPTER V PENALTY PROVISIONS
 Article 58 (Bribery by Manager)
(1) Where any manager appointed under Article 20 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applicable mutatis mutandis under Article 41 or any deputy manager appointed under Article 37 of the Act on the Procedure for Limiting the Liability of Shipowners, etc. accepts, demands or promises a bribe in connection with his/her duty, such person shall be punished by imprisonment with labor for not more than five years or by a fine not exceeding 50 million won. <Amended by Act No. 12829, Oct. 15, 2014>
(2) In cases under paragraph (1), a bribe taken shall be confiscated. If it is impossible to confiscate all or part of the bribe, its equivalent value shall be collected.
 Article 59 (Offer, etc. of Bribe)
Any person who promises, offers or expresses his/her intention to offer a bribe under Article 58 (1) shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won. <Amended by Act No. 12829, Oct. 15, 2014>
 Article 60 (Penalty Provisions)
Any person falling under any of the following subparagraphs shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended by Act No. 12829, Oct. 15, 2014>
1. Any person who fails to conclude an indemnity contract, in violation of Article 14 (1) or Article 47 (1);
2. Any person who enters and leaves a domestic port or uses domestic mooring facilities without concluding the indemnity contract, in violation of Article 14 (2) or Article 47 (2);
3. Any person who has a certificate of the indemnity contract issued or reissued under Article 18 (including the cases where the provision is applied mutatis mutandis under Article 49) by fraud or other fraudulent means.
 Article 61 (Penalty Provisions)
Any person who fails to report or reports falsely, or who fails to submit documents or submits false documents, upon being requested for report or submission of documents under Article 34 (2) of the Act on the Procedure for Limiting the Liability of Shipowners, etc. applicable mutatis mutandis under Article 41, shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won. <Amended by Act No. 12829, Oct. 15, 2014>
 Article 62 (Penalty Provisions)
Any person falling under any of the following subparagraphs shall be punished by a fine not exceeding five million won:
1. Any person who fails to notify (including notification of change), in violation of Article 54 (1) or who notifies falsely;
2. Any person who fails to notify, in violation of Article 54 (2) or who notifies falsely;
3. Any person who fails to execute an order for submitting pertinent documents without justifiable grounds, in violation of Article 55 (1), or submits pertinent documents falsely;
4. Any person who refuses, interferes with or evades an inspection or verification by public officials of the Ministry without justifiable grounds, in violation of paragraph (1) or proviso to paragraph (2) of Article 55.
 Article 63 (Joint Penalty Provisions)
Where the representative of a corporation, or an agent or employee of, or any other person employed by, a corporation or individual commits a violation under Articles 60 through 62 in conducting the business affairs of the corporation or individual, in addition to punishing such violator, the corporation or individual shall also be punished by a fine under each relevant Article: Provided, That where the corporation or individual has not been negligent in giving due attention and supervision in connection with the relevant business affairs to prevent such offense, this shall not apply.
 Article 64 (Persons Deemed as Public Officials in Application of Penalty Provisions)
Executive officers and employees of agencies specialized in maritime disaster prevention who are engaged in the activities entrusted by the Minister of Oceans and Fisheries under Article 57 (2) shall be deemed public officials for the purpose of the penalty provisions under Articles 129 through 132 of the Criminal Act. <Amended by Act No. 11690, Mar. 23, 2013>
 Article 65 (Administrative Fines)
(1) Any person falling under any of the following subparagraphs shall be punished by an administrative fine not exceeding five million won:
1. Any person who fails to report or reports falsely, in violation of the provisions of Article 19 (1);
2. Any person who fails to keep a certificate on board, in violation of Article 20 (1) or Article 50 (1);
3. Any person who enters and leaves a domestic port or uses domestic mooring facilities without keeping a certificate, etc. on board, in violation of Article 20 (2) or Article 50 (3);
4. Any person who fails to report under Article 26 (1) or (2), or reports falsely;
5. Any person who fails to keep a certificate in the oil storage barge or in the main office of the owner of the oil storage barge, in violation of Article 50 (2).
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Oceans and Fisheries (referring to the head of an institution delegated with the authority if such authority has been delegated under Article 57 (1)), as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Articles 30, 31 and 40 shall enter into force on the date the Additional Fund Convention takes effect for the Republic of Korea.
Article 2 (Transitional Measures on Penalty Provisions, etc.)
Where an act committed before this Act enters into force is subject to penalty provisions or administrative fines, the provisions which were effective at the time when such act was committed shall apply.
Article 3 Omitted.
Article 4 (Relation to Statutes)
Any citation of any provision of the former Compensation for Oil Pollution Damage Guarantee Act in other statutes as at the time this Act enters into force shall be deemed a citation of the pertinent provision of this Act, if this Act has equivalent provision to the cited provision.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11757, Apr. 5, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Limitation of Liability of Owners of General Vessels)
The amended provisions of the former part of Article 45 shall apply starting with the first occurrence of an event resulting in oil pollution damage caused by fuel oil from a general vessel.
ADDENDUM <Act No. 12829, Oct. 15, 2014>
This Act shall enter into force on the date of its promulgation.