ENGINEERING INDUSTRY PROMOTION ACT
Wholly Amended by Act No. 10250, Apr. 12, 2010
Amended by Act No. 10682, May 19, 2011
Act No. 10963, Jul. 25, 2011
Act No. 11235, Jan. 26, 2012
Act No. 11690, Mar. 23, 2013
Act No. 12299, Jan. 21, 2014
Act No. 13852, Jan. 27, 2016
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to establish the foundation for the engineering industry by determining necessary matters for promotion of the engineering industry, to strive for balanced development of related industries by enhancing competitiveness, to realize a creative knowledge-based society, and to contribute to the development of the national economy.
The terms used in this Act shall be defined as follows: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | The term "engineering activities" means any of the following activities concerning business and facilities conducted through the application of scientific and technological knowledge: |
| (a) | Research, planning, feasibility study, design, analysis, contract, purchasing, procurement, testing, supervision, trial run, evaluation, inspection, safety review, management, preparation of manual, counselling, instruction, maintenance or repair; |
| (b) | Business management of the activities provided for in item (a); |
| (c) | Other activities prescribed by Presidential Decree as corresponding to those provided for in items (a) and (b); |
| 2. | The term "engineering industry" means an industry that creates economic or social added value through engineering activities; |
| 3. | The term "engineering project" means a project to perform engineering activities; |
| 4. | The term "engineering business entity" means a person who intends to perform engineering activities for business purposes, and who has reported to the Minister of Trade, Industry and Energy under Article 21; |
| 5. | The term "engineering technology" means the scientific technology concerning engineering activities, as prescribed by Presidential Decree; |
| 6. | The term "engineer" means a person prescribed by Presidential Decree, among those who have acquired national technical qualification regarding engineering technology under the National Technical Qualifications Act or those who have academic background or career related to engineering technology; |
| 7. | The term "contracting authority" means a person who places an order for engineering projects and falls under any of the following: |
| (d) | An infrastructure project implementer or a person to whom an infrastructure project implementer has entrusted the implementation of a project under subparagraph 1 of Article 2 of the Act on Public-Private Partnerships in Infrastructure: Provided, That a person to whom the performance of a project is entrusted shall be limited to a person whose investment accounts for at least half of the capital available to the relevant project implementer and who has been approved to be a contracting authority by the relevant central administrative agency; |
| (e) | Any other person who is prescribed by Presidential Decree, such as a local corporation or local authority under the Local Public Enterprises Act. |
| Article 3 (Responsibilities of State, etc.) |
| (1) | The State and local governments shall formulate policies to promote the engineering industry and devise ways, etc. of administrative and financial supporting, which are necessary for the promotion thereof. |
| (2) | Any contracting authority shall strive to make sure that engineering projects are performed in accordance with fair standards and procedures. |
| Article 4 (Relationship with other Acts) |
Except otherwise provided for in other Acts, this Act shall apply to the engineering industry.
CHAPTER II PROMOTION AND ESTABLISHMENT OF FOUNDATIONS OF ENGINEERING INDUSTRY
| Article 5 (Formulation, etc. of Promotional Plans for Engineering Industry) |
| (1) | The Minister of Trade, Industry and Energy shall formulate promotional plans for the engineering industry (hereinafter referred to as "promotional plans") in order to promote the engineering industry through consultation with the heads of relevant central administrative agencies every three years. The same shall apply to any modification of promotional plans. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13852, Jan. 27, 2016> |
| (2) | Each promotional plan shall contain the following matters: <Amended by Act No. 13852, Jan. 27, 2016> |
| 1. | Basic direction of policies for promotion of the engineering industry; |
| 2. | Matters concerning the establishment and operation of the information system for the engineering industry under Article 8; |
| 3. | Matters concerning the research on, development and dissemination of engineering technology; |
| 4. | Matters concerning facilitating commercialization of engineering technology; |
| 5. | Matters concerning standardization of engineering technology under Article 11; |
| 6. | Matters concerning nurturing, managing and utilizing specializing in engineering under Article 13 (1); |
| 7. | Matters concerning the facilitation of sophisticating the structure of the engineering industry; |
| 8. | Matters concerning international cooperation and overseas market entry of the engineering industry; |
| 9. | Matters concerning support for engineering business entities; |
| 10. | Other matters necessary for promotion of the engineering industry. |
| (3) | Deleted. <by Act No. 13852, Jan. 27, 2016> |
| (4) | Where necessary to formulate the promotional plans, the Minister of Trade, Industry and Energy may request the heads of the relevant central administrative agencies, local governments, relevant organizations or institutions to submit data. In such case, the heads of the organizations and institutions which received such request shall comply therewith unless there is a compelling reason not to do so. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13852, Jan. 27, 2016> |
| (5) | Except as provided for in paragraphs (1) through (4), matters concerning the formulation, etc. of promotional plans shall be prescribed by Presidential Decree. <Amended by Act No. 13852, Jan. 27, 2016> |
| Article 6 (Engineering Industry Policy Council) |
| (1) | An Engineering Industry Policy Council (hereinafter referred to as the "Policy Council") shall be established under the Ministry of Trade, Industry and Energy in order to consult important matters concerning promotion, fostering, and support of the engineering industry and the establishment of promotional plans. |
| (2) | Necessary matters for the composition and operation of the Policy Council shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 13852, Jan. 27, 2016]
| Article 7 (Investigation of Actual Conditions) |
| (1) | The Minister of Trade, Industry and Energy may investigate actual conditions of the engineering industry in order to secure basic data required for promotion of the engineering industry: Provided, That he/she shall jointly investigate actual conditions of the engineering industry if the head of a relevant central administrative agency requests such investigation. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy may request an engineering business entity or the head of an engineering industry-related organization or institution to submit data necessary for investigation of actual conditions as provided for in paragraph (1). In such case, any person who receives such request shall cooperate therewith unless there is a compelling reason not to do so. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | Matters concerning the frequency, method and target of the investigation of actual conditions under paragraph (1) shall be prescribed by Presidential Decree. |
| Article 8 (Establishment and Operation of Information Systems for Engineering Industry) |
| (1) | The Minister of Trade, Industry and Energy may establish and operate information systems for the engineering industry (hereinafter referred to as "information systems") in order to systematically maintain and manage engineering industry-related information, data, etc. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | Information systems may include the following matters: |
| 1. | Matters concerning the current status of the domestic or foreign engineering industry; |
| 2. | Matters concerning the amount of orders received by engineering business entities; |
| 3. | Matters concerning information on bidding for domestic or foreign engineering projects; |
| 4. | Matters concerning the development and dissemination of engineering technology; |
| 5. | Matters concerning the current status and personal history of human resources specializing in engineering under Article 13 (1); |
| 6. | Other necessary matters for provision of information on the engineering industry. |
| (3) | The Minister of Trade, Industry and Energy may request the heads of the relevant central administrative agencies, local governments or relevant organizations or institutions to submit data (including data compiled in electronic form) necessary for the establishment and operation of information systems. In such case, the heads of the organizations or institutions who are requested to submit data shall cooperate therewith unless there is a compelling reason not to do so. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | The Minister of Trade, Industry and Energy shall establish and operate information systems in line with the basic plans for national informatization and the implementation plans for national informatization under Articles 6 and 7 of the Framework Act on National Informatization. <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | Except as provided for in paragraphs (1) through (3), matters necessary for the establishment, operation, etc. of information systems, shall be prescribed by Presidential Decree. |
| Article 9 (Research, Development, Support for Dissemination of Engineering Technology, etc.) |
| (1) | The Government may establish necessary policies for introduction, research, development and dissemination of a new engineering technology and provide necessary support therefor. |
| (2) | The Government shall preferentially research, develop and disseminate engineering technology which is determined to have novelty, advancement and practical applicability. |
| (3) | The Government may promote joint research (including international joint research) with public institutions, corporations, organizations and universities in order to increase the performance of research and development of engineering technology and provide necessary support therefor. |
| (4) | Where the Government determines necessary in order to promote the use and dissemination of engineering technology developed pursuant to paragraph (1) and its connection with the related industry, it may conduct pilot projects for use, dissemination, etc. of engineering technology, as prescribed by Presidential Decree. |
| (5) | Necessary matters concerning support, etc. provided for in paragraphs (1) through (4) shall be prescribed by Presidential Decree. |
| Article 10 (Facilitation of Commercialization of Engineering Technology) |
| (1) | The Government may develop necessary policies in order to facilitate commercialization of engineering technology developed pursuant to Article 9. |
| (2) | The Government may provide support necessary to obtain domestic or foreign quality certification to a person who intends to commercialize the outcome of engineering technology development in order to facilitate commercialization of engineering technology. |
| (3) | Necessary matters concerning support provided for in paragraph (2) shall be prescribed by Presidential Decree. |
| Article 11 (Standardization of Engineering Technology) |
| (1) | The Minister of Trade, Industry and Energy may push for standardization of engineering technology in order to improve quality of engineering projects and to reduce costs incurred therein. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy may recommend engineering business entities to conform to engineering technology standards in order to facilitate standardization provided for in paragraph (1). <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | In order to efficiently perform affairs concerning standardization pursuant to paragraph (1), the Minister of Trade, Industry and Energy may designate agencies and organizations specialized in engineering technology and have them conduct research, etc. on standardization, and subsidize all or part of expenses necessary therefor. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | Matters necessary for the designation, support, etc. provided for in paragraph (3) shall be prescribed by Presidential Decree. |
| Article 12 (Designation, etc. as Engineering Technology Support Center) |
| (1) | The Minister of Trade, Industry and Energy may designate research institutes and specialized agencies which satisfy the requirements prescribed by Presidential Decree as engineering technology support centers (hereinafter referred to as "support center") in order to efficiently promote the research, development, dissemination, etc. of engineering technology. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13852, Jan. 27, 2016> |
| (2) | The support center shall conduct the following business affairs: |
| 1. | Investigation and analysis of the current status of engineering technology; |
| 2. | Engineering technology research and development, and support therefor; |
| 3. | Facilitation of commercializing engineering technology; |
| 4. | Research on standardization of engineering technology; |
| 5. | Pilot projects on the use, dissemination, etc. of engineering technology; |
| 6. | International cooperation in engineering technologies, and exchanges thereof; |
| 7. | Other matters concerning the research, development, dissemination, etc. of engineering technology. |
| (3) | The Minister of Trade, Industry and Energy may contribute funds required for conducting business provided for in paragraph (2) or provide other necessary support. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | Where the support center fails to satisfy the requirements prescribed by Presidential Decree under paragraph (1), the Minister of Trade, Industry and Energy may order the support center to take correction measures within a fixed period of not more than three months. <Newly Inserted by Act No. 13852, Jan. 27, 2016> |
| (5) | In any of the following cases, the Minister of Trade, Industry and Energy may cancel designation of the support center: Provided, That in cases of subparagraph 1, the Minister shall cancel designation: <Newly Inserted by Act No. 13852, Jan. 27, 2016> |
| 1. | Where it has obtained designation by fraud or other improper means; |
| 2. | Where it has continued failing to conduct the business affairs prescribed in paragraph (2) for not less than one year without good cause; |
| 3. | Where it has failed to take correction measures under paragraph (4). |
| (6) | Necessary matters concerning standards, procedures, etc. for designation as a support center and cancellation of such designation shall be prescribed by Presidential Decree. <Amended by Act No. 13852, Jan. 27, 2016> |
| Article 13 (Fosterage, etc. of Human Resources Specialized in Engineering Technology) |
| (1) | The Government may develop necessary policies in order to foster and manage human resources having professional technology or skills of engineering (hereinafter referred to as "human resources specialized in engineering"), such as professional engineers under the National Technical Qualifications Act. |
| (2) | The Government may designate the universities, research institutes or specialized agencies provided for in Article 12 (1) as agencies to foster human resources specialized in engineering, and subsidize some of expenses incurred in their education and training. |
| (3) | Necessary matters concerning requirements and procedures for designation as agencies to foster human resources specialized in engineering provided for in paragraph (2) and the target, types, contents, etc. of education and training shall be prescribed by Presidential Decree. |
| Article 14 (Promotion of Employment) |
| (1) | The Government shall develop necessary policies for promoting employment of professional human resources for engineering. |
| (2) | The Government may recommend engineering business entities to expand employment of professional human resources for engineering. |
| (3) | The Government may subsidize necessary expenses within budgetary limits in order to promote employment of professional human resources for engineering provided for in paragraphs (1) and (2). |
| Article 15 (Facilitation of Sophistication of Structure of Engineering Industry) |
| (1) | The Government may establish policies and provide necessary support for facilitating sophistication of structure of the engineering industry. |
| (2) | Necessary matters concerning support, etc. provided for in paragraph (1) shall be prescribed by Presidential Decree. |
| Article 16 (Supports for International Cooperation and Overseas Advancement) |
In order to promote the international cooperation and entry into overseas markets of the engineering industry, the Government may render support, such as the provision of relevant information, consultation and guidance on overseas market entry, international exchanges of the related technology and human resources, participation in international events and international joint research and development projects.
| Article 17 (Establishment, etc. of Engineering Collective Investment Scheme) |
| (1) | Where the Financial Services Commission receives an application for registration of a collective investment scheme (hereinafter referred to as "engineering collective investment scheme") whose main business purpose is to invest assets in the engineering industry and to distribute the resulting revenue to shareholders pursuant to Article 182 of the Financial Investment Services and Capital Markets Act, it shall, in advance, consult with the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | Where a public institution intends to contribute to an engineering collective investment scheme, the Government may subsidize all or part of the fund for such contributions within budgetary limits. |
| Article 18 (Method, etc. of Managing Asset) |
| (1) | Any engineering collective investment scheme shall use an amount equivalent to at least half of its capital for any of the following purposes: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Contributions to engineering business entities prescribed by Presidential Decree or purchase of shares, equities, right to benefits, or loans issued by them; |
| 2. | Investment approved by the Minister of Trade, Industry and Energy after he/she determines it necessary for engineering activities to achieve purposes of this Act. |
| (2) | The amount of contributions by public institutions under Article 17 (2) shall be used for the purposes set forth in paragraph (1) 1. |
| (3) | Where an engineering collective investment scheme manages its assets in violation of paragraphs (1) and (2), the Minister of Trade, Industry and Energy may request the Financial Services Commission to cancel its registration. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | Matters necessary for operation, etc. of an engineering collective investment scheme shall be prescribed by Presidential Decree. |
| Article 19 (Designation, etc. as Facilities that Promote Engineering Industry) |
| (1) | The Minister of Trade, Industry and Energy may designate buildings, etc. occupied predominantly by engineering business entities as facilities that promote the engineering industry (hereinafter referred to as "promotional facilities") in order to invigorate the engineering industry, and may provide necessary support, such as the provision of funds and facilities. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | Any owner of a facility seeking designation as a promotional facility shall apply for such designation to the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | Where the Minister of Trade, Industry and Energy designates the promotional facilities pursuant to paragraph (1), he/she may attach necessary conditions to development of the engineering industry. In such case, the relevant conditions shall be limited to the minimum extent necessary for the improvement of public interests and shall not include any unfair obligations. <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | Necessary matters concerning requirements for designation as, support, etc. for promotional facilities shall be prescribed by Presidential Decree. |
| Article 20 (Cancellation of Designation as Promotional Facilities) |
The Minister of Trade, Industry and Energy may cancel designation as promotional facilities, as prescribed by Presidential Decree, in any of the following cases: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | Where promotional facilities fail to meet the requirements for designation; |
| 2. | Where funds and facilities provided under Article 19 (1) are used for the purposes other than the original purpose; |
| 3. | Where the conditions for designation pursuant to Article 19 (3) are not satisfied. |
CHAPTER III REPORTING, ETC. BY ENGINEERING BUSINESS ENTITY
| Article 21 (Reporting, etc. by Engineering Business Entity) |
| (1) | Any person who intends to engage in engineering activities for his/her business purpose shall meet the requirements prescribed by Presidential Decree, such as requirements for technical manpower before reporting them to the Minister of Trade, Industry and Energy. In such case, the Minister of Trade, Industry and Energy shall issue a certificate of report to the person who has reported, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | When an engineering business entity intends to change any important matter prescribed by Presidential Decree, suspend or close business, he/she shall file a report thereon with the Minister of Trade, Industry and Energy within 30 days from the date on which the relevant cause has occurred, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | Upon receipt of a report under paragraphs (1) and (2), the Minister of Trade, Industry and Energy may issue an order to supplement details of the report within three months, if he/she deems this necessary. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | No person who has reported on engineering business pursuant to paragraph (1) shall permit any other party to operate engineering business by using his/her trade name or name, nor shall lend the certificate of report to any other party. |
| (5) | No person may arrange any act prohibited under paragraph (4) or use any other person's certificate of report. |
| (6) | Necessary matters concerning procedure, etc. for filing a report on engineering business shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 22 (Restriction on Report) |
No person who falls under any of the following subparagraphs may report pursuant to Article 21 (1): | 1. | A person who is subject to a disposition to invalidate a report on engineering business pursuant to Article 24 (1) and for whom one year has not passed from the date of such disposition. |
| 2. | A person who is subject to an order for suspension of business pursuant to Article 24 (1) and for whom the relevant period has not passed from the date of such order. |
| Article 23 (Succession to Status of Engineering Business Entity) |
| (1) | Where an engineering business entity dies or has transferred all or part of his/her engineering business or a corporate engineering business entity has merged, the transferee, heir or corporation surviving the merger or newly established by the merger shall succeed to the status of the engineering business entity. |
| (2) | A person who has succeeded to the status of an engineering business entity pursuant to paragraph (1) shall report such fact to the Minister of Trade, Industry and Energy within 30 days from the date on which the relevant cause has occurred, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 24 (Disposition to Invalidate Report by Engineering Business Entity, etc.) |
| (1) | Where an engineering business entity falls under any of the following subparagraphs, the Minister of Trade, Industry and Energy may make a disposition to invalidate a report on engineering business pursuant to Article 21 (1) or issue an order to suspend such business for a period not exceeding six months: Provided, That in cases falling under subparagraph 1, 4 or 5, he/she shall make a disposition to invalidate a report on engineering business: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Where an engineering business entity files a report pursuant to Article 21 (1) by fraud or other improper means; |
| 2. | Where an engineering business entity fails to meet the requirements for reporting pursuant to Article 21 (1); |
| 3. | Where an engineering business entity permits any other party to perform engineering business by using his/her trade name or name or lends his/her certificate of report, in violation of Article 21 (4); |
| 4. | Where an engineering business entity arranges any prohibited act or uses any other person's certificate of report, in violation of Article 21 (5); |
| 5. | Where a person who has received an order to suspend business continues to perform engineering business; |
| 6. | Where an engineering business entity harms the public interest by performing engineering business by intention or negligence. |
| (2) | Where an engineering business entity fails to file a report pursuant to Article 21 although he/she has received a disposition to invalidate a report or has suspended or closed business pursuant to paragraph (1), the Minister of Trade, Industry and Energy may cancel the report filed by the engineering business entity. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | A person whose report has been invalidated pursuant to paragraph (1) shall return the certificate of report within seven days from the date on which he/she receives a notice of final decision of disposition. |
| (4) | Necessary matters concerning detailed standards for disposition to invalidate the report or to suspend business or cancel the report pursuant to paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
| Article 25 (Succession of Effect of Administrative Disposition) |
| (1) | Where the status of an engineering business entity is succeeded pursuant to Article 23 (1), the effect of administrative disposition on the previous engineering business entity pursuant to Article 24 (1) shall be succeeded to the transferee, heir or corporation surviving merger or newly established by merger until the term of disposition expires. |
| (2) | Where the status of an engineering business entity is succeeded pursuant to Article 23 (1) and the procedure for administrative disposition is under way against the previous engineering business entity pursuant to Article 24 (1), such procedure may continue against the transferee, heir or corporation surviving merger or newly established by merger: Provided, That the same shall not apply where the transferee, heir or corporation surviving merger or newly established by merger proves that it was unaware of such disposition or violation as at the time of transfer or merger. |
| Article 26 (Reporting by Engineers) |
| (1) | Engineers may report the detailed information needed to mange their workplace, careers, academic backgrounds, qualifications, etc. (hereinafter referred to as "work experience, etc") to the Minister of Trade, Industry and Energy, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. The same shall apply to any modification of the details of the report. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | Where an engineering business entity has filed a report pursuant to Article 21, an engineer employed by such engineering business entity shall be deemed to have filed such report pursuant to paragraph (1). |
| (3) | Where an engineer who has filed a report pursuant to paragraph (1) applies for issuance of a certificate of engineer work experience, etc. (hereinafter referred to as "certificate of engineering career"), the Minister of Trade, Industry and Energy shall issue the certificate of engineering career. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | The Minister of Trade, Industry and Energy may, where necessary to confirm detailed information reported pursuant to paragraph (1), request the central administrative agencies, local governments, schools under Article 2 of the Elementary and Secondary Education Act and Article 2 of the Higher Education Act, engineering business entities who employ or have employed the engineer who has filed the report, to submit relevant data. In such case, a person who receives such request shall cooperate therewith unless there is a compelling reason not to do so. <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | When filing a report on detailed information or a report on any change thereof pursuant to paragraph (1), he/she shall not file a false report concerning his/her work experience, etc. |
| (6) | No engineer shall permit any other person to engage in engineering activities by using his/her name or nor shall lend his/her certificate of engineering career. |
| (7) | Matters necessary for reporting by engineers, issuance, management, etc, of certificates of engineering career pursuant to paragraphs (1) through (4) shall be prescribed by Ordinance of the Ministry of the Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 27 (Signature and Seal on Design Drawings, etc.) |
Where any engineering business entity prepares design drawings or reports on engineering projects (hereinafter referred to as "design drawings, etc"), engineers who are fully or partially responsible for them shall affix their seals or signatures to the design drawings, etc. within the scope of their responsibility. The same shall also apply where the design drawings, etc. are partially changed.
CHAPTER IV IMPLEMENTATION, ETC. OF ENGINEERING PROJECTS
| Article 28 (Evaluation of Capacity to Implement Engineering Projects) |
| (1) | Where a contracting authority places an order for an engineering project prescribed by Presidential Decree, it shall receive the documents indicating the capacity to implement such project, including technological and managerial capacity and other matters prescribed by Presidential Decree from those who intend to participate in the project and evaluate their capacity to implement the project. |
| (2) | A contracting authority may, where necessary to evaluate the capacity to implement a project, request the cooperation of the Association established pursuant to Article 33. In such case, the Association shall comply with such request unless there is a compelling reason not to do so. |
| (3) | Matters necessary for the cooperation, etc. pursuant to paragraph (2) shall be prescribed by Presidential Decree. |
| Article 29 (Method of Determinating Successful Bidder, etc.) |
| (2) | Necessary matters concerning the method of concluding a contract pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| Article 30 (Engineering Projects Implementation Process) |
| (1) | A contracting authority shall ensure that engineering project planning, feasibility study, design, supervision, maintenance, management, etc. (hereinafter referred to as "engineering project implementation process") are performed in an organized manner in order to efficiently implement the engineering project; |
| (2) | Necessary matters concerning details of an engineering project implementation process and how it works shall be prescribed by Presidential Decree. |
| Article 31 (Standards, etc. for Prices of Engineering Projects) |
| (1) | A contracting authority shall pay a reasonable price when concluding a contract for the engineering project with an engineering business entity. |
| (2) | The Minister of Trade, Industry and Energy shall determine and publicly announce necessary standards for calculating the price of an engineering project pursuant to paragraph (1). In such case, the Minister of Trade, Industry and Energy shall, in advance, consult with the heads of the relevant administrative agencies, such as the Minister of Strategy and Finance and the Minister of Land, Infrastructure and Transport. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | Where an engineering business entity inflicts damage to the property of the contracting authority or a third party by intention or negligence while performing the engineering project, he/she shall compensate for such losses. |
| (4) | An engineering business entity shall purchase an insurance or sign a mutual aid agreement to provide guaranteed liability for loss incurred pursuant to paragraph (3). In such case, the contracting authority shall include expenses incurred in obtaining insurance coverage or mutual aid coverage in the price of an engineering project pursuant to paragraph (1). |
| (5) | Necessary matters concerning the term insured or covered under mutual aid agreement, the type, target, method, etc. of insurance or mutual aid pursuant to paragraph (4) shall be prescribed by Presidential Decree. |
| Article 32 (Recommendations to Persons other than Contracting Authority) |
The Minister of Trade, Industry and Energy may recommend the matters falling under any of the following subparagraphs to persons other than a contracting authority that places an order for an engineering project: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | Matters concerning the evaluation of capacity to implement an engineering project pursuant to Article 28; |
| 2. | Matters concerning the application of the method of determining a successful bidder pursuant to Article 29; |
| 3. | Matters concerning the process of implementing an engineering project pursuant to Article 30; |
| 4. | Matters concerning standards for determining the price of an engineering project pursuant to Article 31. |
CHAPTER V ASSOCIATION AND MUTUAL-AID ASSOCIATION
| Article 33 (Establishment, etc. of Association) |
| (1) | For the purpose of helping the development of the engineering industry and the promotion of engineering technology, engineering business entities may establish an Association by obtaining authorization from the Minister of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Association shall perform any of the following affairs: |
| 1. | The current status and statistical survey of engineering business entities and engineers; |
| 2. | Research on systems for improvement of engineering technology and the engineering industry; |
| 3. | Education and training of engineers; |
| 4. | Support for the collection, analysis and provision of information about engineering technology, and for dissemination of engineering technology; |
| 5. | Recommendations for the research on and improvement of standards for determining the prices of engineering projects; |
| 6. | Support for engineering business entities’ overseas market entry; |
| 7. | Affairs entrusted by the Government or local governments, etc.; |
| 8. | Affairs incidental to those provided for in subparagraphs 1 through 7, as prescribed by the articles of incorporation. |
| (3) | In order to achieve the purpose of its foundation provided for in paragraph (1), the Association may engage in profit-making business by obtaining permission from the Minister of Trade, Industry and Energy. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 34 (Establishment, etc., of Mutual-Aid Association) |
| (1) | Engineering business entities may establish a Mutual-aid Association by obtaining authorization therefor from the Minister of Trade, Industry and Energy in order to ease their access to loans and guarantees necessary for boosting the financial independence and financial status of the engineering business entities. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Mutual-aid Association shall perform the following business affairs: <Amended by Act No. 10963, Jul. 25, 2011; Act No. 11235, Jan. 26, 2012> |
| 1. | Extending guarantee, mutual aid, and loans necessary to perform obligations which will accompany engineering activities of the Mutual-aid Association members (including package order projects involving purchase, procurement, production, and installation that engineering activities entail); |
| 2. | Extending guarantee necessary for determining a principal transaction bank for exports of engineering technology by the Mutual-aid Association members; |
| 3. | Discounting notes received in return for engineering activities by the Mutual-aid Association members; |
| 4. | Brokering purchase of equipment necessary for engineering activities of the Mutual-aid Association members; |
| 5. | Providing support for technical improvement and technical training of the Mutual-aid Association members; |
| 6. | Installing and operating joint-use facilities for the Mutual-aid Association members; |
| 7. | Providing mutual aid to the Mutual-aid Association members for the prevention of bankruptcy and the improvement of welfare of their employees; |
| 8. | Investing in relevant business necessary to achieve the purpose of the establishment of the Mutual-aid Association; |
| 10. | Provision of services relating to information processing and computer operation by the Mutual-aid Association members; |
| 11. | Affairs including guarantee, mutual aid, and loans prescribed by other laws for the purpose of providing support to the industrial sector related to engineering activities; |
| 12. | Affairs entrusted by the Government or local governments, etc.; |
| 13. | Affairs incidental to those provided for in subparagraphs 1 through 12, as prescribed by the articles of incorporation. |
| Article 35 (Mutual Aid Agreement) |
| (1) | Where the Mutual-aid Association intends to engage in the business of extending mutual aid under Article 34 (2) 1, 7, and 11, it shall determine its mutual aid agreement. <Amended by Act No. 11235, Jan. 26, 2012> |
| (2) | The mutual aid agreement under paragraph (1) shall include the matters necessary for provision of mutual aid, such as the scope of mutual aid, terms and conditions of mutual aid, premiums, payout, and reserves to be appropriated to payout. |
| Article 36 (Corporate Entity, etc.) |
| (1) | The Association and the Mutual-aid Association shall be deemed a corporate entity, respectively. |
| (2) | Matters included in the articles of incorporation of the Mutual-aid Association, matters concerning contributions to the Mutual-aid Association and other necessary matters concerning the operation of the Association or Mutual-aid Association shall be prescribed by Presidential Decree. |
| Article 37 (Qualifications of Officers) |
| (1) | No person who falls under any of the following subparagraphs shall become an officer of the Association or Mutual-aid Association: <Amended by Act No. 12299, Jan. 21, 2014> |
| 1. | An incompetent under the adult guardianship; |
| 2. | A person who has been declared bankrupt and has not been reinstated; |
| 3. | A person in whose case two years have not elapsed since his/her imprisonment without labor or greater punishment declared by a court was completely executed (including cases where such punishment is deemed to have been completely executed) or exempted; |
| 4. | A person who is under suspension of the execution or sentence of his/her imprisonment without labor or greater punishment declared by a court; |
| 5. | A person whose qualification has been revoked or suspended by any Act or a court ruling; |
| 6. | A person in whose case two years have not elapsed since he/she was dismissed as part of a disciplinary action under statutes related to the engineering industry. |
| (2) | Where an officer falls under any subparagraph of paragraph (1), or has been found to fall thereunder at the time of his/her appointment, he/she shall be duly dismissed. |
| (3) | Any act involving the officer who was dismissed under paragraph (2) before his/her dismissal shall remain in force. |
| Article 38 (Guidance, Supervision, etc.) |
The Minister of Trade, Industry and Energy may, where necessary for supervision, order the Association and the Mutual-aid Association to report their business affairs or submit data, and may have any public official under its control inspect their books, documents and other articles. <Amended by Act No. 11690, Mar. 23, 2013>
| Article 39 (Application Mutatis Mutandis of Other Acts) |
| (1) | Except as otherwise provided for in this Act, the provisions of the Civil Act pertaining to an incorporated association shall apply mutatis mutandis to the Association. |
| (2) | Except as otherwise provided for in this Act, the provisions of the Civil Act pertaining to incorporated associations and the provisions of the Commercial Act pertaining to accounting of stock companies shall apply mutatis mutandis to the Mutual-aid Association. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 40 (Prohibition of False Application for Budget and Use of Budget for Other Purposes) |
No person who receives financial aid pursuant to Articles 9 through 19 may apply for related budget falsely or use it for other purposes or by other unjust means.
Where the Minister of Trade, Industry and Energy intends to make any of the following dispositions, he/she shall hold a hearing: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 13852, Jan. 27, 2016>
| 1. | Cancellation of designation as the support center under Article 12 (5); |
| 2. | Cancellation of designation as promotional facilities pursuant to Article 20; |
| 3. | Disposition to invalidate the report by engineering business entities pursuant to Article 24 (1). |
| Article 42 (Prohibition of Disclosure of Confidential Information) |
No engineering business entity who obtains an order for engineering project and his/her executives and employees, and engineers participating in such engineering project shall disclose any confidential information learned in the course of the performance of his/her duties.
| Article 43 (Legal Fiction as Public Official in Application of Penalty Provisions) |
| Article 44 (Entrustment of Duties) |
Part of the duties of the Minister of Trade, Industry and Energy provided for in this Act may be entrusted to the Association, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
A person falling under any of the following subparagraphs shall pay fees, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | A person who reports or reports on the change of an engineering entity pursuant to Article 21 (1) and (2); |
| 2. | A person who reports succession to status pursuant to Article 23 (2); |
| 3. | A person who applies for the issuance of a certificate of engineering career pursuant to Article 26 (3). |
CHAPTER VII PENALTY PROVISIONS
| Article 46 (Penalty Provisions) |
A person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than one year or by a fine not exceeding ten million won:
| 1. | A person who commits any prohibited act, in violation of Article 21 (4); |
| 2. | A person who arranges any prohibited act or uses another person's certificate of report, in violation of Article 21 (5); |
| 3. | A person who discloses any confidential information learned in the course of the performance of his/her duties, in violation of Article 42. |
| Article 47 (Joint Penalty Provisions) |
If the representative of a corporation, or an agent, or employee of, or other person employed by the corporation or an individual commits any offences described in Article 46 in conducting the business affairs of the corporation or individual, not only shall such offender be punished, but also the corporation or individual shall be punished by a fine under the relevant provisions: Provided, That this shall not apply to cases where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offence.
| Article 48 (Administrative Fines) |
| (1) | A person falling under any of the following subparagraphs shall be subject to an administrative fine not exceeding two million won: |
| 1. | A person who files a false report provided for in Article 21 (1); |
| 2. | A person who fails to report on changes or files a false report thereon, in violation of Article 21 (2); |
| 3. | A person who fails to report or files a false report on succession to status, in violation of Article 23 (2); |
| 4. | A person who permits another person to conduct engineering activities by using his/her name or lends his/her certificate of engineering career to another, in violation of Article 26 (6). |
| (2) | A person falling under any of the following subparagraphs shall be subject to an administrative fine not exceeding one million won: |
| 1. | A person who fails to report on business suspension or business closure, in violation of Article 21 (2); |
| 2. | A person who fails to supplement relevant details within the supplementation period pursuant to Article 21 (3); |
| 3. | A person who fails to return a certificate of report, in violation of Article 24 (3); |
| 4. | A person who files a false report on his/her work experience, etc., in violation of Article 26 (5); |
| 5. | A person who fails to sign his/her name and affix his/her seal or do so by fraud, in violation of Article 27. |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Trade, Industry and Energy, 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.
Article 2 (General Transitional Measures)
Any disposition, procedure or other acts under the former Engineering Technology Promotion Act as at the time this Act enters into force shall be deemed to have been performed under this Act. Article 3 (Transitional Measures concerning Person who Performs Engineering Activities)
Any person performing engineering activities who has filed a report pursuant to the previous provisions as at the time this Act enters into force shall be deemed an engineering business entity who has filed a report pursuant to the amended provisions of Article 21 (1). Article 4 (Transitional Measures concerning Period of Reporting on Changes of Person who Performs Engineering Activities)
Where any change in the details of a report occurs due to a merger or division of businesses performing the engineering activities as at the time this Act enters into force, the previous provisions shall apply to a period of reporting, notwithstanding the amended provisions of Articles 21 (2) and 23 (2). Article 5 (Transitional Measures concerning Association and Mutual-Aid Association)
The Association and the Mutual-aid Association which obtained an authorization under the previous provisions as at the time this Act enters into force shall be deemed the Association and the Mutual-aid Association which obtained an authorization under the provisions of this Act.
Article 6 (Transitional Measures concerning Entrustment of Duties)
Part of the duties of the Minister of Knowledge Economy entrusted to the Association pursuant to the previous provisions as at the time this Act enters into force shall be deemed to have been entrusted pursuant to the amended provisions of Article 44. Article 7 (Transitional Measures concerning Administrative Fines)
In applying administrative fines to any offense committed before this Act enters into force, the previous provisions shall apply.
Article 8 Omitted.
Article 9 (Relations with other Statues)
Where the Engineering Technology Promotion Act or the relevant provisions thereof have been cited by other statues as at the time this Act enters into force, if provisions corresponding thereto exist in this Act, this Act or the corresponding provisions of this Act shall be deemed to have been cited in lieu of the former Engineering Technology Promotion Act or the relevant provisions thereof.
ADDENDA <Act No. 10682, May 19, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Act No. 10963, Jul. 25, 2011>
This Act shall enter into force three months after the date of its promulgation.
ADDENDUM <Act No. 11235, Jan. 26, 2012>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 12299, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Article shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Incompetents, Etc.)
An incompetent under the adult guardianship under the amended provisions of Article 37 (1) 1 shall be deemed to include persons who have been declared and is currently incompetent or quasi-incompetent under Article 2 of the Addenda to the amended Civil Act (Act No. 10429).
ADDENDUM <Act No. 13852, Jan. 27, 2016>
This Act shall enter into force six months after the date of its promulgation.