SPECIAL ACT ON ESTABLISHMENT AND MANAGEMENT OF FOREIGN EDUCATIONAL INSTITUTIONS IN FREE ECONOMIC ZONES AND JEJU FREE INTERNATIONAL CITY
Act No. 7533, May 31, 2005
Amended by Act No. 8852, Feb. 29, 2008
Act No. 9366, Jan. 30, 2009
Act No. 10632, May 19, 2011
Act No. 11690, Mar. 23, 2013
Act No. 13426, Jul. 24, 2015
Act No. 14147, May 29, 2016
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 9366, Jan. 30, 2009: Act No. 10632, May 19, 2011; Act No. 13426, Jul. 24, 2015>
| 1. | The term "foreign educational foundation" means the State, a local government, or a non-profit corporation which establishes and manages a preschool/elementary/secondary/higher educational institution under the foreign statutes in a foreign country; |
| Article 3 (Relationship to Other Acts) |
| Article 4 (Qualifications for Establishment) |
Only a foreign educational foundation may establish a foreign educational institution.
| Article 5 (Approval for Establishment) |
| (1) | A foreign educational foundation who seeks to establish a foreign educational institution shall meet the standards for establishment, including facilities and equipment as prescribed by the Presidential Decree, obtain an approval from the Minister of Education, and acquire recommendations of the persons under the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9366, Jan. 30, 2009; Act No. 10632, May 19, 2011; Act No. 11690, Mar. 23, 2013> |
| 2. | The Governor of Jeju Special Self-Governing Province for foreign educational institutions to be established in Jeju Special Self-Governing Province. |
| (2) | When intending to apply for an approval for establishment of a foreign educational institution under the provisions of paragraph (1), the foreign educational foundation shall submit an application form to the Minister of Education, along with attached documents containing the trading name, the purpose of establishment, an educational management plan, etc. as prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (3) | The approval under the provisions of paragraph (1) may be issued subject to conditions. |
| (4) | The head of the foreign educational institution shall obtain the approval from the Minister of Education in advance when intending to modify matters in the establishment approval, including the trading name, the purpose of establishment, the school building and site, and other important matters as prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (5) | Procedures for establishment approvals of foreign educational institutions and other necessary matters concerning establishment shall be determined by the Presidential Decree. |
| Article 6 (Registration of Establishment) |
| (1) | When obtaining establishment approval for a foreign educational institution, the foreign educational foundation shall file for the same registration of establishment as that of a branch office of a juristic person under the provisions of Article 50 of the Civil Act within three weeks of the approval date of establishment. In this case, "director" in the matters to be registered shall be construed as "representative of the foreign educational institution". |
| (2) | The registration under the provisions of paragraph (1) shall include the following: |
| 1. | Applicable Act for establishment of the foreign educational foundation in the relevant country; |
| 2. | Name and address of the foreign educational institution representing the foreign educational foundation in the Republic of Korea. |
| (3) | The provisions of Articles 51 through 54 of the Civil Act shall apply mutatis mutandis to the registration under the provisions of paragraph (1). In this case, "director" and "juristic person" shall be construed as "head of the foreign educational institution" and "foreign educational institution", respectively. |
| (4) | In filing a registration for modification under the provisions of Article 52 of the Civil Act, applicable mutatis mutandis under the provisions of paragraph (3), if the modification of the registered matters occurs in a foreign country, the Minister of Education shall be notified without delay, and the period of registration shall be counted from the date on which the Minster received the notification. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| Article 7 (Legal Capacity of Foreign Educational Institutions to Hold Rights) |
With regard to the legal capacity of foreign education institutions to hold rights and to perform lawful acts, the provisions of Articles 34 and 35 of the Civil Act shall apply mutatis mutandis.
| Article 8 (Establishment, etc. of Foreign Educational Institution) |
| (1) | The foreign education institution shall come into existence when it registers the establishment pursuant to the provisions of Article 6. |
| (2) | In the case of paragraph (1), the head of the foreign educational institution shall represent the foreign educational foundation. |
| Article 9 (Guidance and Supervision) |
| (1) | The Minister of Education shall be responsible for the guidance and supervision of foreign educational institutions. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (2) | If deemed necessary for the guidance and supervision of foreign educational institutions, the Minister of Education may require the head of a foreign educational institution to submit relevant materials as prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| Article 10 (Student Quota) |
| (1) | The quota for students of a foreign educational institution shall be set by the head of that foreign educational institution, except for quotas relating to the fostering of human resources, including teachers, medical personnel, pharmacists, and medical technicians, as prescribed by the Presidential Decree: Provided, That the quota for domestic students admittable to foreign educational institutions equivalent to all high schools or schools at lower level shall be determined by the head of the foreign educational institution within the scope of the ratio prescribed by the Presidential Decree. |
| Article 11 (Recognition of Scholastic Ability) |
| (1) | The Minister of Education may grant scholastic recognition to foreign educational institutions corresponding to elementary, middle, or high school level under the provisions of Article 2 of the Elementary and Secondary Education Act, and where the Minister manages the educational program prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (2) | Any person who graduates from a foreign educational institution corresponding to a university or junior college level under the provisions of Article 2 of the Higher Education Act shall be deemed to have the same scholastic attainment as a person who has graduated from the corresponding school in the Republic of Korea. |
| (3) | Necessary matters concerning the designation under the provisions of paragraph (1) shall be determined by the Presidential Decree. |
| Article 12 (Accounting of Foreign Educational Institutions) |
The accounting of foreign educational institutions shall follow the accounting principles as prescribed by the Minister of Education, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
| Article 13 (Rental and Sale of State-Owned or Publicly-Owned Property) |
With regard to the rental and sale of State-owned, publicly-owned property, etc. to foreign educational institutions, the provisions relating to support for foreign investment in Article 13 of the Foreign Investment Promotion Act shall apply mutatis mutandis. In this case, "foreign-invested companies, etc." shall be construed as "foreign educational foundation".
| Article 14 (Financial Support, etc.) |
| Article 15 (Measures Regarding Support) |
| (1) | The State or local governments may take any of the following measures with regard to foreign educational institutions or foreign educational foundations supported under the provisions of Article 13 or 14: |
| 1. | To participate in a decision-making body concerning the management of a foreign educational institution, with the prior consent of that foreign educational foundation or foreign educational institution: Provided, That participation is permissible without the prior consent of such foundation or institution where the State or a local government provides the whole or a part of the school site and facilities, and the foreign educational foundation establishes and manages the foreign educational institution (hereinafter referred to as the "jointly managed foreign educational institution"); |
| 2. | To be briefed by the foreign educational foundation or the foreign educational institution on its operations or accounting if deemed necessary; |
| 3. | To recommend modifications to budget-related measures if the budget management of the foreign educational foundation or the foreign educational institution is deemed improper in light of the purpose for the support. |
| (2) | The State or the local government may cease support on the grounds falling under any of the following subparagraphs: |
| 1. | Where continuous support is deemed improper due to poor outcomes from the support; |
| 2. | Where the foreign educational foundation or the foreign educational institution fails to follow the recommendations under the provisions of paragraph (1) 3. |
| Article 16 (Approval for Closure of Foreign Educational Institution) |
The head of a foreign educational foundation or a foreign educational institution shall obtain an approval from the Minister of Education in order to shut down the foreign educational institution. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
| Article 17 (Corrective Orders, etc.) |
| (1) | The Minister of Education may issue a corrective order specifying a certain period where the foreign educational institution falls under any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| 1. | Where it violates the standards for establishment under the provisions of Article 5 (1); |
| 2. | Where if fails to meet the conditions of approval under the provisions of Article 5 (3); |
| 3. | Where it sets the quota, in violation of the provisions of Article 10; |
| 4. | Where it fails to hold classes for more than three months consecutively, except during a vacation period; |
| 5. | Where it violates this Act or an order issued under this Act. |
| (2) | The Minister of Education may revoke the approval for establishment under the provisions of Article 5 (1), or take necessary measures, such as the closure of a department or the suspension of student enrollments where the foreign educational institution falls under any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| 1. | Where it fails to follow the corrective order issued under the provisions of paragraph (1) within the designated period; |
| 2. | Where it fails to rectify the issues provided for in paragraph (1). |
| (3) | The Minister of Education may require a person who operates any facility as schools below high school level by using the trading name of a foreign educational institution or enrolling students without obtaining an approval for its establishment provided for under Article 5 (1), to close the said facility. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| Article 18 (Modification or Revocation of Approval for Establishment of Foreign Educational Institution) |
| (1) | The Minister of Education may revoke an approval for establishment provided for under the provisions of Article 5 (1) in an event falling under any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| 1. | Where the approval or modified approval for establishment as prescribed in Article 5 (1) or (4) has been obtained by deceit or in any other fraudulent mean; |
| 2. | Where the foreign educational institution fails to open for more than a year from the scheduled date of opening. |
| (2) | The Minister of Education may revoke or modify an approval for establishment provided for under the provisions of Article 5 (1) in any of the following cases: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 9366, Jan. 30, 2009; Act No. 10632, May 19, 2011; Act No. 11690, Mar. 23, 2013> |
| 2. | Where the foreign educational foundation which establishes and manages the foreign educational institution is closed or dissolved. |
| (3) | When an event or cause falling under the provisions of paragragraph (2) 2 occurs, the head of the foreign educational institution shall report the fact to the Minister of Education within seven days. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
Where the Minister of Education intends to revoke an approval for establishment or take necessary measures, such as closure of a department or suspension of student enrollments, under the provisions of Article 17 (2) or 18, he/she shall hold a hearing. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
| Article 20 (Liquidation of Foreign Educational Institution) |
| (1) | In the event of closure, or of revocation of the approval for establishment under the provisions of Article 16, 17 (2) or 18, the foreign educational institution shall liquidate all of the property belonging to its account. In this case, the foreign educational foundation which established and manages the foreign educational institution shall fulfill the obligations not satisfied out of all of the property of the said institution. |
| (2) | With regard to the liquidation under the provisions of paragraph (1), Articles 81 through 85, 87 through 92, and 94 and 95 of the Civil Act shall apply mutatis mutandis. In this case, "director", "juristic person", and "prosecutor" shall be construed as "head of the foreign educational institution", "foreign educational institution", and "Minister of Education", respectively. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (3) | Where the foreign educational institution is liquidated under the provisions of paragraph (1), its assets, capital, reserves, and other surpluses shall first be appropriated to discharge the obligations to Korean citizens and to the foreigners who have an address or residence in the Republic of Korea. |
| (4) | No property of the foreign educational institution liquidated under the provisions of paragraph (1) shall be transferred to another account of the said institution without undergoing the liquidation procedures as prescribed by this Act. |
| Article 21 (Delegation of Authority) |
The authority of the Minister of Education under this Act may be partially delegated to the superintendent of education of the Special Metropolitan City, Metropolitan City, or Do as prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013>
| Article 22 (Penalty Provisions) |
Any person who falls under any of the following subparagraphs shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding 30 million won: <Amended by Act No. 14147, May 29, 2016>
| 1. | Anyone who operates any facility as a de facto foreign educational institution by using the title of a foreign educational institution or enrolling students, without obtaining an approval for its establishment under Article 5 (1); |
| 2. | Anyone who fails to obtain an approval for modification, in violation of Article 5 (4); |
| 3. | Anyone who has obtained an approval for the establishment of a foreign educational institution or approval for modification thereto as prescribed in Article 5 (1) or (4) by fraud or in other improper means; |
| 4. | Anyone who shuts down a foreign educational institution without obtaining an approval for shutdown, in violation of Article 16; |
| 5. | Anyone who transfers the property of a foreign educational institution to other accounts of a related foreign educational foundation without going through the liquidation procedures prescribed in this Act according to Article 20 (4). |
| Article 23 (Penalty Provisions) |
The head of any foreign educational institution who violates the correction order issued under Article 17 (1) shall be punished by imprisonment with labor for not more than 1 year or by a fine not exceeding 10 million won. <Amended by Act No. 14147, May 29, 2016>
| Article 24 (Administrative Fines) |
| (1) | The head of any foreign educational institution who fails to perform the duties relating to registration under this Act shall be punished by an administrative fine not exceeding five million won. |
| (2) | The administrative fine prescribed in paragraph (1) shall be imposed and collected by the Minister of Education as prescribed by the Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (3) | Any person who is dissatisfied with a disposition of an administrative fine issued under paragraph (2) may file an objection with the Minister of Education within 60 days after the date on which he/she received the notification of the administrative fine. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (4) | Where any person who is subject to the disposition of an administrative fine issued under paragraph (2) has filed an objection in accordance with the provisions of paragraph (3), the Minister of Education shall notify the competent court of the fact without delay which, in turn, shall conduct the trial on the administrative fine in accordance with the Non-Contentious Case Procedure Act. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 11690, Mar. 23, 2013> |
| (5) | Where no objection is filed within the period specified in Article 3 and an administrative fine is not paid, the administrative fine shall be collected in the same manner as delinquent local taxes are collected. |
ADDENDUM
This Act shall enter into force six months after the day of its promulgation.
ADDENDA <Act No. 8852, Feb. 29, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9366, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 9 Omitted.
ADDENDUM <Act No. 10632, May 19, 2011>
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. 13426, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 39 Omitted.
ADDENDUM <Act No. 14147, May 29, 2016>
This Act shall enter into force on the date of its promulgation.