The purpose of this Act is to prescribe basic matters regarding the establishment, support, fostering, systematic administration, and responsible management of local government-invested research institutes, thereby contributing to improvement of the local autonomy system, regional development, and development of local culture by promoting the reasonable operation and development of such research institutes.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
The term "local government-invested research institute" used in this Act means any research institute that is financed and subsidized by a local government, etc. and engaged mainly in research activities.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 3 (Legal Personality) |
Each local government-invested research institute (hereinafter referred to as "local research institute") shall be a juristic person.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 4 (Establishment, Registration, etc.) |
| (1) | Each local research institute may be established in the Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province (hereinafter referred to as "City/Do"). <Amended by Act No. 14195, May 29, 2016> |
| (2) | Notwithstanding paragraph (1), a city with a population (referring to the number of residents registered under the Resident Registration Act) of at least one million (hereinafter referred to as "large city") may establish a local research institute. <Newly Inserted by Act No. 11398, Mar. 21, 2012> |
| (3) | A local research institute shall be established at the time when it registers such establishment at the location of its principal office. <Amended by Act No. 11398, Mar. 21, 2012> |
| (4) | Particulars to be registered for establishment under paragraph (3) shall be as follows: <Amended by Act No. 11398, Mar. 21, 2012> |
| 4. | Name and address of the president of a local research institute; |
| 5. | Method of public announcement. |
| (5) | Matters necessary for the procedures, etc. for establishing local research institutes shall be prescribed by Presidential Decree. <Amended by Act No. 11398, Mar. 21, 2012> |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 5 (Articles of Incorporation) |
| (1) | The articles of incorporation of each local research institute shall contain the following matters: |
| 3. | Location of its principal office; |
| 4. | Matters relating to its functions and the execution thereof; |
| 5. | Matters relating to its property and accounting; |
| 6. | Matters relating to its executive officer, researchers and other employees; |
| 7. | Matters relating to the board of directors; |
| 8. | Matters relating to amendments to the articles of incorporation; |
| 9. | Matters relating to the method of public announcement. |
| (2) | Any amendment to the articles of incorporation of a local research institute shall be subject to approval from the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") or the mayor of a large city by resolution of its board of directors. <Amended by Act No. 11398, Mar. 21, 2012; Act No. 14195, May 29, 2016> |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 6 (Executive Officers, etc.) |
| (1) | Each local research institute shall have not more than 30 directors, including one chief director and one president, and two auditors. |
| (2) | Executive officers other than the president shall be non-standing. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 7 (Executive Officers' Duties) |
| (1) | The chief director shall convene meetings of the board of directors and preside over such meetings. |
| (2) | The president shall represent, exercise overall control over the work of, and bear full responsibility for managing the local research institute. |
| (3) | Auditors shall inspect the work and accounts of the local research institute. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 8 (Election and Appointment of Executive Officers) |
| (1) | The chief director of a local research institute shall be elected from among its directors in accordance with the articles of incorporation thereof. |
| (2) | The president and auditors shall be appointed by the chief director subject to a resolution passed by the board of directors. |
| (3) | Directors (excluding the chief director) shall consist of those specified in the articles of incorporation (hereinafter referred to as "ex officio directors") and those appointed by the competent Mayor/Do Governor or the mayor of a large city upon recommendation through the president from academic circles, industrial circles, etc. and subject to a resolution passed by the board of directors. <Amended by Act No. 11398, Mar. 21, 2012> |
| (4) | Matters necessary for recommending directors under paragraph (3) shall be prescribed by ordinance of the relevant City/Do and large city. <Amended by Act No. 11398, Mar. 21, 2012> |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 9 (Executive Officers' Terms of Office) |
| (1) | The term of office of the chief director, president, directors (excluding ex officio directors), and auditors shall be three years, respectively, and are renewable. |
| (2) | The term of office forex officio directors shall be for periods they otherwise hold the positions. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 10 (Organization and Functions of Board of Directors) |
| (1) | Each local research institute shall have a board of directors. |
| (2) | The board of directors shall be comprised of directors, including the chief director and the president. |
| (3) | The board of directors shall pass resolutions on the following matters: |
| 1. | Matters relating to amendments to the articles of incorporation; |
| 2. | Matters relating to the election and appointment of executive officers; |
| 3. | Matters relating to the business plan and budget of a local research institute; |
| 4. | Matters relating to the evaluation of a local research institute on its management; |
| 5. | Matters relating to the dissolution of a local research institute; |
| 6. | Other matters relating to the operation of a local research institute. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 11 (Operation of Boards of Directors) |
| (1) | The chief director may convene a meeting of the board of directors, if deemed necessary, and shall convene a meeting of the board of directors within 20 days of his/her receipt of any of the following requests for convocation: |
| 1. | A request for convocation by a majority of directors on the register, stating objectives and key agenda items for discussion; |
| 2. | A request for convocation by an auditor for the purpose of reporting any illegal or unjust practice ascertained by an audit to the board of directors. |
| (2) | An auditor may attend any meeting of the board of directors to present his/her opinion. |
| (3) | A meeting of the board of directors shall pass a resolution by the attendance of a majority of all directors on the register and an affirmative vote of a majority of those present, except as otherwise specifically provided for in this Act. |
| (4) | Matters necessary for the operation of the board of directors, other than those provided in paragraphs (1) through (3), shall be prescribed by the articles of incorporation. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 12 (Guarantee of Autonomous Management) |
| (1) | The independent and autonomous research and management of each local research institute shall be guaranteed. |
| (2) | Each president may take necessary measures to reform the management of his/her local research institute. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 13 (Operating Funds) |
| (1) | The operating funds of each local research institute shall consist of the following: |
| 1. | Contributions and subsidies referred to in paragraph (2); |
| 2. | Profits accrued from profit-making projects referred to in Article 14; |
| (2) | Each local government may grant an affiliated local research institute necessary contributions and subsidies, within budgetary limits, to cover expenses incurred in establishing and operating the research institute. |
| (3) | Matters necessary for the management and administration of property by local research institutes shall be prescribed by municipal ordinance. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 14 (Profit-Making Projects) |
Each local research institute may carry out profit-making projects, as prescribed by its articles of incorporation, to cover relevant expenses.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 15 (Gratuitous Lending, etc. of Public Property) |
If necessary to establish and operate a local research institute, a local government may either lend its public property to such research institute or otherwise permit such research institute to use or benefit from its public property gratuitously, as prescribed by Presidential Decree, to the extent that it does not impede the purpose of use thereof.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 16 (Business Year) |
The business year of a local research institute shall coincide with the fiscal year of the relevant local government.
| Article 17 (Approval of Business Plans, etc.) |
Each local research institute shall prepare a business plan and a budget statement for each fiscal year and submit them to the relevant Mayor/Do Governor or the mayor of a large city for approval within the period prescribed by Presidential Decree. <Amended by Act No. 11398, Mar. 21, 2012>
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 18 (Submission of Statement of Accounts, etc.) |
Each local research institute shall submit to the relevant Mayor/Do Governor or the mayor of a large city a business performance report and the income and expenditure account statement attached with the following documents within the period prescribed by Presidential Decree after the end of each fiscal year: <Amended by Act No. 11398, Mar. 21, 2012>
| 1. | Financial statements and appendices; |
| 2. | A certificate of audit issued by a certified public accountant (limited to cases where the relevant Mayor/Do Governor or the mayor of a large city deems it necessary); |
| 3. | Other documents necessary to clarify the details of account settlement. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 19 (Appraisal of Management, etc.) |
| (1) | Each Mayor/Do Governor or the mayor of a large city shall appraise the management of local research institutes and formulate necessary measures based on the results of such appraisal, as prescribed by ordinance of a City/Do and a large city, in order to innovate management practices and strengthen the policy-making functions and capacity thereof. <Amended by Act No. 11398, Mar. 21, 2012; Act No. 14195, May 29, 2016> |
| (2) | The appraisal of management under paragraph (1) shall include the appraisal of the degree of achievement of management objectives, the availability of research outcomes, the efficiency of business, the adequacy of budget management, etc. of local research institutes. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 20 (Organization of Local Research Institute Council) |
| (1) | Local research institutes may organize a Local Research Institute Council (hereinafter referred to as the "Council") with approval from the relevant Mayors/Do Governors or the mayor of a large city in order to promote the mutual exchange of information, mutual utilization of research outcomes, joint research projects, etc. among such local research institutes. <Amended by Act No. 11398, Mar. 21, 2012> |
| (2) | Local governments and local research institutes may provide administrative and financial support for the Council. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
Each board of directors may pass a resolution to dissolve the relevant local research institute with the consent of at least one half of the registered directors, if the local research institute continues any activity significantly inconsistent with the purpose of its establishment: Provided, That no resolution may be passed in writing.
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 22 (Inspections and Supervision) |
| (1) | If deemed necessary to inspect and supervise the business of a local research institute, a Mayor/Do Governor or the mayor of a large city may request the local research institute to submit related documents, books or other reference materials or may have public officials under his/her control inspect the business and state of property of the local research institute. <Amended by Act No. 11398, Mar. 21, 2012> |
| (2) | Public officials performing an inspection under paragraph (1) shall carry a certificate indicating their authority and produce it to interested persons. |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 23 (Strict Observance of Confidentiality) |
Any person who serves or has served as an executive officer, researcher or other employee of any local research institute or any certified public accountant under subparagraph 2 of Article 18 shall not disclose or making improper use of any confidential information that he/she learned in the course of performing his/her duties. [This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 24 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
[This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 25 (Mutatis Mutandis Application) |
Except as otherwise provided for in this Act, the provisions of the Civil Act concerning incorporated foundations shall apply mutatis mutandis to local research institutes. [This Article Wholly Amended by Act No. 10738, May 30, 2011]
| Article 26 (Penalty Provisions) |
Any person who violates Article 23 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. 14195, May 29, 2016> [This Article Wholly Amended by Act No. 10738, May 30, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Arrangements for Establishment of Local Research Institutes)
| (1) | The head of a local government who seeks to establish a local research institute shall commission founding members to take charge of affairs regarding the establishment of the local research institute before this Act enters into force. |
| (2) | Founding members shall prepare the articles of incorporation of the local research institute and obtain approval from the relevant Mayor/Do Governor. |
| (3) | Directors of a local research institute at the time of its establishment (excluding ex officio directors) shall be appointed by the relevant Mayor/Do Governor upon recommendation from the industrial, academic and research circles, etc. |
| (4) | The chief director of a local research institute at the time of its establishment shall be appointed by the relevant Mayor/Do Governor upon the recommendation of the directors (including ex officio directors) specified under paragraph (3). |
| (5) | Founding members, upon obtaining approval under paragraph (2), shall promptly have the incorporation of the local research institute registered under joint signature and then transfer their duties to the chief director. |
| (6) | Founding members shall be deemed decommissioned at the time the transfer of duties under paragraph (5) is completed. |
Article 3 (Transitional Measures concerning Succession to Rights and Obligations, etc.)
| (1) | Any research institutes established in local governments under Article 32 of the Civil Act and ordinances of Cities/Dos as at the time this Act enters into force shall be deemed local research institutes established under this Act. |
| (2) | The rights and obligations of the research institutes established in local governments under Article 32 of the Civil Act and ordinances of Cities/Dos as at the time this Act enters into force shall be succeeded to by the local research institutes established under this Act, respectively. |
Article 4 (Transitional Measures concerning Executive Officers, etc.)
Executive officers and employees of the research institutes established in local governments under Article 32 of the Civil Act and ordinances of Cities/Dos as at the time this Act enters into force shall be deemed elected or appointed under this Act, respectively; and their terms of office shall include the periods for which they have been in office under Article 32 of the Civil Act and ordinances of Cities/Dos. Article 5 (Transitional Measures concerning Affairs)
Affairs of local research institutes established by local governments under Article 32 of the Civil Act and ordinances of Cities/Dos as at the time this Act enters into force shall be succeeded to by the local research institutes established under this Act, respectively.
ADDENDA <Act No. 7858, Mar. 3, 2006>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Applicability to Election of Chief Director) The amended provisions of Article 8 (1) shall apply to a chief director on or after this Act enters into force. |
ADDENDUM <Act No. 10738, May 30, 2011>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11398, Mar. 21, 2012>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Arrangements for Establishment of Local Research Institutes)
| (1) | The mayor of a large city who intends to establish a local research institute shall commission founding members to take charge of affairs regarding the establishment of the local research institute before this Act enters into force. |
| (2) | Founding members shall prepare the articles of incorporation of the local research institute and obtain approval from the mayor of the relevant large city. |
| (3) | Directors of a local research institute at the time of its establishment (excluding ex officio directors) shall be appointed by the mayor of the relevant large city on the recommendation from the industrial, academic and research circles, etc. In such cases, matters necessary for the recommendation of directors shall be prescribed by ordinance of the relevant large city. |
| (4) | The chief director of a local research institute at the time of its establishment shall be appointed by the mayor of the relevant large city upon recommendation of the directors specified in paragraph (3) (including ex officio directors). |
| (5) | Upon obtaining approval under paragraph (2), founding members shall promptly have the establishment of the local research institute registered under joint signature and then transfer their duties to the chief director. |
| (6) | Founding members shall be deemed decommissioned at the time the transfer of duties under paragraph (5) is completed. |
ADDENDUM <Act No. 14195, May 29, 2016>
This Act shall enter into force six months after the date of its promulgation.