ACT ON THE AGENCY FOR DEFENSE DEVELOPMENT
Act No. 2258, Dec. 31, 1970
Amended by Act No. 2391, Dec. 26, 1972
Act No. 2633, Oct. 10, 1973
Act No. 2783, Jul. 26, 1975
Act No. 3860, Dec. 23, 1986
Act No. 4541, Mar. 6, 1993
Act No. 4980, Dec. 6, 1995
Act No. 5464, Dec. 17, 1997
Act No. 5643, Jan. 21, 1999
Act No. 6289, Dec. 26, 2000
Act No. 7289, Dec. 31, 2004
Act No. 10215, Mar. 31, 2010
Act No. 12003, Aug. 6, 2013
Act No. 12552, May 9, 2014
Act No. 13238, Mar. 27, 2015
The purpose of this Act is to contribute to the reinforcement of national defense power and the accomplishment in self-reliance of national defense by establishing the Agency for Defense Development and assigning it to take charge of the technical survey, research, development, and testing of weapons, equipment, and supplies required for national defense as well as the survey, research, and testing of science and technology related thereto.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 2 (Legal Personality) |
The Agency for Defense Development (hereinafter referred to as "the Agency") shall be a corporation.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 3 (Establishment) |
| (1) | The Agency shall be duly formed when it completes the registration of its establishment with the registry office having jurisdiction over the domicile of its principal place of business. |
| (2) | Matters necessary for the registration of establishment under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 4 (Articles of Incorporation) |
| (1) | The articles of incorporation of the Agency shall include the following matters: |
| 3. | Domicile of its principal place of business; |
| 4. | Matters concerning business and finance; |
| 5. | Matters concerning executive officers; |
| 6. | Matters concerning the board of directors; |
| 7. | Matters concerning amendments to the articles of incorporation; |
| 8. | Matters concerning dissolution. |
| (2) | When the Agency intends to formulate or amend its articles of incorporation, it shall obtain authorization therefor from the Minister of National Defense. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 5 (Financial Resources) |
| (1) | Costs and expenses for the establishment, construction, operation, and research of the Agency shall be covered by contributions from the Government and other revenue. |
| (2) | Matters necessary for the timing and method of contributions from the Government under paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 6 (Prohibition of Use of Similar Names) |
No one other than the Agency under this Act shall use the name "Agency for Defense Development" or any other similar name.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| (1) | The Agency shall perform the following activities under the supervision of the Minister of National Defense in order to achieve its purpose under Article 1: |
| 1. | Technical surveys, research, and development of weapons, equipment, and other military supplies, and the survey and research of systems engineering, ergonomics, and other science and technology; |
| 2. | Surveys and research of models and specifications of weapons, equipment, and other military supplies; |
| 3. | Analysis and research of various resources, organizations, systems, and operation related to weapon systems necessary for national defense; |
| 4. | Preparation and review of designs and manuals for the test production of weapons and equipment and technical testing of test products; |
| 5. | Testing of performance of various weapons and equipment; |
| 6. | Activities related to technical information regarding weapons, equipment, other military supplies, and strategic resources; |
| 7. | Entrustment of, assistance with, or support for research on weapons, equipment, and other military supplies; |
| 8. | Activities incidental to those under subparagraphs 1 through 7. |
| (2) | The Minister of National Defense shall authorize the Agency to carry out operations falling under the scope of the Agency's business activities under paragraph (1), among the operations under his/her jurisdiction, and may delegate part of his/her authority to the president of the Agency for vicarious execution, if he/she considers it particularly necessary for carrying out operations. |
| (3) | The Agency may carry out civil-military collaboration projects and support programs for testing and evaluation of civilian equipment, after obtaining approval from the Minister of National Defense, in addition to the activities under the subparagraphs of paragraph (1) within the extent that such involvement does not hinder the performance of its activities under the subparagraphs of paragraph (1). <Amended by Act No. 12003, Aug. 6, 2013> |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 7-2 (Special Cases for National Defense and Military Installations Projects) |
[This Article Newly Inserted by Act No. 13238, Mar 27, 2015]
| Article 8 (Business Year) |
The business year of the Agency shall correspond to the Government's fiscal year.
| Article 9 (Executive Officers) |
| (1) | The Agency shall have one president, not more than 15 directors, and one auditor as its executive officers. |
| (2) | All the executive officers under paragraph (1), except the president and the auditor, shall be non-standing. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 10 (Appointment of Executive Officers and Term of Office) |
| (1) | The president of the Agency shall be appointed by the President with the recommendation of the Minister of National Defense. |
| (2) | Directors shall consist of ex officio directors specified by Presidential Decree and persons appointed by the Minister of National Defense (hereinafter referred to as "appointed directors") with the recommendation of the chairperson from among persons from the fields of industry, research and academy. |
| (3) | The auditor shall be elected by the board of directors, subject to approval from the Minister of National Defense. |
| (4) | The term of office for the president and the auditor shall be three years, and the term of office for a successor, who fills a vacancy for such position if a vacancy occurs, shall be the remaining term of office of the predecessor. |
| (5) | The term of office of an appointed director shall be three years. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 11 (Board of Directors) |
| (1) | The board of directors comprised of directors shall be established in the Agency to deliberate and resolve important matters of the Agency. |
| (2) | The board of directors shall have a chairperson and a vice chairperson and the appointment of the chairperson and the vice chairperson shall be prescribed by Presidential Decree. |
| (3) | The chairperson shall convene directors' meetings and take the chair at the meetings, and if the chairperson is unable to perform his/her duties due to unavoidable circumstances, the vice chairperson shall act on behalf of the chairperson. |
| (4) | The auditor may attend directors' meetings to express his/her opinions. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 12 (President and Auditor) |
| (1) | The president shall represent the Agency, have overall control over the Agency's duties, and lead and supervise employees of the Agency. |
| (2) | If the president is unable to perform his/her duties due to unavoidable circumstances, the person specified by the articles of incorporation shall act on behalf of the president. |
| (3) | The auditor shall audit the current status of the activities and property of the Agency. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 13 (Systems and Employees) |
| (1) | The Agency shall put in place systems, testing facilities, and testing places, and it shall have employees necessary for carrying out its activities. |
| (2) | Matters concerning the establishment of systems, testing facilities, and testing places under paragraph (1) and the fixed number, appointment, and dismissal of employees shall be stipulated by articles of incorporation. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 14 (Status of Executive Officers and Employees) |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 15 (Duty of Strict Confidentiality) |
A person who serves or has served as an executive officer or employee of the Agency, a certified public accountant under Article 17 (2), or a support staff member under Article 20 shall not divulge or misappropriate any confidential information he/she learns in the process of performing his/her duties. [This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 16 (Approval of Business Plan and Budget) |
The Agency shall prepare a business plan and budget bill for each business year, as prescribed by Presidential Decree, and shall submit them to the Minister of National Defense and obtain approval therefor not later than ten months before the beginning of the relevant business year. When the Agency intends to amend the business plan or budget already approved, it shall also submit it to the Minister of National Defense for approval.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 17 (Reporting on Business and Settlement of Accounts) |
| (1) | The Agency shall report the results of implementation of the business plan for each quarter to the Minister of National Defense. |
| (2) | The Agency shall receive audit of its closing financial statements for each business year by certified public accountants, the number of whom is determined by the Minister of National Defense, and submit them to the Minister of National Defense by not later than the end of March the following year. |
| (3) | Research duties classified as state secrets and activities directly related to such research, among descriptions in the closing financial statements under paragraph (2), shall be excluded from affairs subject to accounting audits by certified public accountants. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 18 (Industrial Property Rights) |
Industrial property rights in the Agency's inventions, such as patents, utility model rights, design rights, and trademarks, shall be owned by the Agency.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 19 (Property Contributed by Foreign Governments) |
The Agency shall directly take over all equipment, machines, instruments, supplies, and money provided by a foreign government to the Government for the construction and operation of the Agency, under the supervision by the Minister of National Defense.
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 20 (Cooperation in Business) |
| (1) | If the president of the Agency deems it necessary for achieving objectives of the Agency's activities, he/she may request the head of a related agency to assign military persons or public officials under his/her control to assist in the Agency's research, or to dispatch military guards for protecting the Agency's facilities. |
| (2) | Upon receiving a request pursuant to paragraph (1), the head of a related agency shall assign military persons or public officials under his/her control to assist in the Agency's research, or dispatch military guards for the protection of the Agency's facilities, in compliance with such request, unless he/she has a justifiable reason otherwise. |
| (3) | Any person who works for the Agency in compliance with a request under paragraph (1) shall be subject to the command and supervision of the president of the Agency, and the Agency shall pay them various allowances appropriate for each position. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 21 (Special Cases for Approval for Using Military Supplies, State-owned Property and Public Property) |
| (1) | When it is necessary for the establishment and operation of the Agency, the State or local governments may permit the Agency to use military supplies, state-owned property, and public property or may lend or transfer them to the Agency, without consideration, as prescribed by Presidential Decree, notwithstanding the Act on the Management of Military Supplies, the State Property Act, or the Public Property, the Commodity Management Act. <Amended by Act No. 13238, Mar 27, 2015> |
| (3) | When the Agency was granted approval to use, or a loan of, the land owned by the State or local governments from the State or local governments pursuant to paragraph (1), it may build permanent facilities in the State owned- or publicly owned-land, notwithstanding the State Property Act or the Public Property and Commodity Management Act. In such cases, conditions of donating the facilities or returning the land after restoration thereof to the State or local governments upon termination of the period may be attached thereto considering the types, etc. of the facilities. <Newly Inserted by Act No. 13238, Mar 27, 2015> |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 21-2 (Management of Specific Equipment) |
Aircraft, specific testing ships, or specific vehicles manufactured or purchased by the Agency for research and testing and approved by the Minister of National Defense (hereinafter referred to as "specific equipment") shall be managed in the equivalent manner for military supplies under the Act on the Management of Military Supplies, and they shall be deemed military supplies, or those used by the armed forces, for the purpose of applying statutes regarding the recording, registration, type approval, inspection, and management of specific equipment, and statutes regarding the environmental standards for specific equipment. [This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 22 (Penalty Provisions) |
Any person who breaches the duty of strict confidentiality under Article 15 shall be punished by imprisonment with prison labor for not more than five years or by a fine not exceeding 50 million won. <Amended by Act No. 12552, May 9, 2014> [This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
| Article 23 (Administrative Fines) |
| (1) | Any person who uses the name "Agency for Defense Development" or any similar name thereto in violation of Article 6 shall be punished by an administrative fine not exceeding three million won. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of National Defense. |
[This Article Wholly Amended by Act No. 10215, Mar. 31, 2010]
ADDENDA
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Preparation for Establishment) The president of the Agency for Defense Development pre-existing at the time this Act enters into force shall prepare the Agency's articles of incorporation and shall complete the registration of establishment, with the authorization therefor from the Minister of National Defense, within 60 days from the enforcement date of this Act. |
| (3) | (Transitional Measure) The Agency under this Act shall succeed to the property, rights, and obligations of the Agency for Defense Development established pursuant to Presidential Decree 5267 on the Organization of the Agency for Defense Development. |
| (4) | (Same as above) The president, vice president, and other public officials, among other employees, incumbent at the time when this Act enters into force shall be deemed to be appointed as the president, vice president, and employees of the Agency under this Act simultaneously at the time of the establishment of the Agency under this Act, while military persons shall be deemed to have been dispatched to the Agency for support service pursuant to Article 20. |
| (5) | (Same as above) The budget appropriated for the Agency for Defense Development pre-existing at the time this Act enters into force, out of the expenditure budget under the control of the Ministry of National Defense for 1971, shall be deemed to have been contributed by the Government to the Agency under this Act. |
ADDENDUM <Act No. 2391, Dec. 26, 1972>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 2633, Oct. 10, 1973>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 2783, Jul. 26, 1975>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 3860, Dec. 23, 1986>
| (1) | (Enforcement Date) This Act shall enter into force 30 days after the date of its promulgation. |
| (2) | (Transitional Measure concerning Term of Office for President) The term of office for the president appointed pursuant to previous provisions and incumbent at the time when this Act enters into force shall be governed by previous provisions. |
ADDENDA <Act No. 4541, Mar. 6, 1993>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 4980, Dec. 6, 1995>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1996. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 5464, Dec. 17, 1997>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measure) The specific equipment possessed by the Agency at the time this Act enters into force shall be deemed specific equipment under the amended provisions of Article 21-2. |
ADDENDA <Act No. 5643, Jan. 21, 1999>
| (1) | (Enforcement Date) This Act shall enter into force on the date of its promulgation. |
| (2) | (Transitional Measure concerning Term of Office for Executive Officers) The president and auditor incumbent at the time this Act enters into force shall be deemed to have been appointed or elected pursuant to this Act respectively, but the term of office for them shall expire on the end of the term of office under previous provisions. |
| (3) | (Special Cases concerning Appointment and Dismissal of Appointed Directors) Appointed directors who are to be appointed after this Act enters into force shall be appointed by the Minister of National Defense from among persons from industrial circles, research institutes, and academic circles, notwithstanding the amended provisions of Article 10 (2). |
| (4) | (Transitional Measure concerning Penalty Provisions) Acts committed before this Act enters into force shall be governed by previous penalty provisions. |
ADDENDUM <Act No. 6289, Dec. 26, 2000>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 7289, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 10215, Mar. 31, 2010>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 12003, Aug. 6, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDUM <Act No. 12552, May 9, 2014>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 13238, Mar. 27, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability concerning Special Cases for National Defense and Military Installations Projects)
Amended provision of Article 7-2 shall apply to the national defense and military installations projects in operation when this Act enters into force.