SHIP MANAGEMENT INDUSTRY DEVELOPMENT ACT
Act No. 11321, Feb. 17, 2012
Amended by Act No. 11690, Mar. 23, 2013
Act No. 14731, Mar. 21, 2017
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to promote the advancement and globalization of the ship management industry and contribute to the creation of jobs and the development of the national economy by providing for matters necessary for foundations for fostering, supporting and developing the ship management industry.
The terms used in this Act shall be defined as follows:
| 1. | The term "ship management industry" means the industry of engaging in technical and commercial management of ships, management of offshore structures, trial of ships, and other affairs, which are fully or partially entrusted (including such affairs fully or partially entrusted by a foreign ship manager) by domestic and foreign sea carriers, persons who operate a ship chartering business, operators of government ships, shipbuilders, operators of offshore structures, and other ship owners as defined in the Seafarers Act (hereinafter referred to as "ship owners, etc."); |
| Article 3 (Relationship to other Acts) |
CHAPTER II MASTER PLANS FOR FOSTERING SHIP MANAGEMENT INDUSTRY, ENHANCEMENT OF COMPETITIVENESS, ETC.
SECTION 1 Formulation, Implementation, etc. of Master Plans for Fostering Ship Management Industry
| Article 4 (Formulation, etc. of Master Plans for Fostering Ship Management Industry) |
| (1) | The Minister of Oceans and Fisheries shall formulate a ten-year master plan for fostering the ship management industry (hereinafter referred to as "master plan") every five years to set the basic direction for policies to foster the ship management industry. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | A master plan shall include the following: |
| 1. | Basic direction-setting for and objectives of policies to foster the ship management industry; |
| 2. | Strategies for policies to foster the ship management industry and an implementation plan for each stage; |
| 3. | Supply of and demand for, and nurturing of human resources specializing in ship management; |
| 4. | Improvement of efficiency of the ship management systems, including informatization of the ship management industry; |
| 5. | Development and improvement of the business management capability and ship management technology of ship managers; |
| 6. | Matters relating to developing overseas markets; |
| 7. | Other matters necessary to foster and develop the ship management industry. |
| (3) | Deleted. <by Act No. 14731, Mar. 21, 2017> |
| (4) | When the Minister of Oceans and Fisheries formulates or amends a master plan, he/she shall make public announcement thereof, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | When the Minister of Oceans and Fisheries deems it necessary to formulate or amend a master plan, he/she may request any of the following persons to submit relevant data or his/her opinion. In such cases, a person who is requested to submit data or an opinion shall comply with such request, except in extenuating circumstances: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | The head of the Korea Ship Management Industry Association established under Article 15 (hereinafter referred to as the "Korea Ship Management Industry Association"); |
| 2. | The head of an association of business entities engaged in overseas cargo and passenger transportation services as defined in the Marine Transportation Act; |
| 4. | The head of the federation of trade unions comprised of seafarers; |
| 5. | The head of an enterprise or organization supported under this Act, such as a sea carrier, a ship manager, and a shipbuilder. |
| (6) | The Minister of Oceans and Fisheries shall formulate and execute an implementation plan each year in accordance with the relevant master plan. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 5 Deleted. <by Act No. 14731, Mar. 21, 2017> |
SECTION 2 Fostering, Support, etc. of Ship Management Industry
| Article 6 (Fostering, etc. of Ship Management Industry) |
| (1) | The Minister of Oceans and Fisheries shall give priority to supporting ship managers who create new jobs by providing ship management services or developing overseas market and take other measures to foster the ship management industry and enhance its competitiveness. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Minister of Oceans and Fisheries may implement the following projects to foster the ship management industry and enhance its competitiveness: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Establishment and provision of a comprehensive information system for the ship management industry; |
| 2. | Assistance in winning overseas contracts and conducting financial activities; |
| 3. | Assistance in establishing a system to smoothly supply, and improve the qualities of, the seafarer workforce managed by ship managers (including the foreign seafarer workforce); |
| 4. | Assistance in improving working and employment conditions of seafarers in connection with the entrustment of ship management; |
| 5. | Assistance in improving technical and commercial ship management capability; |
| 6. | Subsidization of educational expenses and other expenses incurred in nurturing professional human resources for ship management; |
| 7. | Other matters prescribed by Presidential Decree for fostering the ship management industry. |
| Article 7 (Recommendation, etc. of Collaboration in Winning Contracts) |
| (1) | In order to enhance ship managers' international competitiveness, win contracts for large ship management projects, and develop overseas markets in an efficient manner, the Minister of Oceans and Fisheries may recommend that at least two ship managers collaborate to win a contract, upon the proposal of the head of the Korea Ship Management Industry Association. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | With regard to hip managers who intend to collaborate to win contracts pursuant to paragraph (1), assistance may be provided in accordance with Article 12. |
SECTION 3 Certification, etc. as Exemplary Ship Managers
| Article 8 (Certification as Exemplary Ship Managers) |
| (1) | In order to nurture highly-skilled ship managers with international competitiveness, the Minister of Oceans and Fisheries may certify ship managers with a high-level of competency and performance in ship management, as exemplary ship managers. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | Any ship manager who intends to be certified as an exemplary ship manager shall file an application therefor with the Minister of Oceans and Fisheries, as prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | The Minister of Oceans and Fisheries may issue a letter of certification to a ship manager certified as an exemplary ship manager under paragraph (1) (hereinafter referred to as "certified ship manager"), as prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (4) | The Minister of Oceans and Fisheries may inspect whether a certified ship manager continues to conduct its business in compliance with standards for certification set out in paragraph (5). <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | Necessary matters concerning the standards, procedures and methods for certification for selecting certified ship managers and compliance inspections shall be prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 9 (Revocation, etc. of Certification) |
| (1) | If a certified ship manager falls under any of the following cases, the Minister of Oceans and Fisheries may revoke its certification: Provided, That certification shall be revoked where the certified ship manager falls under subparagraph 1: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | If the ship manager obtains certification by fraud or other improper means; |
| 2. | If the ship manager refuses inspections conducted under Article 8 (4) on at least three occasions without good cause; |
| 3. | If the ship manager fails to meet the standards for certification set out in Article 8 (5); |
| 4. | If the ship manager allows any other person to conduct business using his/her name or trade name or lends his/her letter of certification to any other person, in violation of Article 16. |
| (2) | If certification is revoked under paragraph (1), the relevant certified ship manager shall return its letter of certification issued under Article 8 (3) and shall discontinue using the certification mark referred to in Article 11 (1). |
| (3) | The procedure for the revocation of certification under paragraph (1) shall be prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 10 (Certification Center) |
| (1) | In order to efficiently perform certification-related tasks under Article 8 (1), the Minister of Oceans and Fisheries may designate a certification center for the ship management industry (hereinafter referred to "certification center") to conduct the following affairs: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Receiving applications for certification; |
| 2. | Conducting inspections under Article 8 (4) on behalf of the Minister of Oceans and Fisheries; |
| 3. | Compliance inspections of certification as to whether a ship manager meets the standards for certification set out in Article 8 (5); |
| 4. | Other assistance prescribed by Presidential Decree to efficiently perform certification-related affairs. |
| (2) | A certification center shall be designated from among the following institutions, as prescribed by Presidential Decree: |
| 1. | A research institute established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes or the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutes (hereinafter referred to as "government-funded research institute"); |
| (3) | If a certification center falls under any of the following cases, the Minister of Oceans and Fisheries may revoke its designation: Provided, That if the certification center falls under subparagraph 1, its designation shall be revoked: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | If the certification center obtains designation by fraud or other improper means; |
| 2. | If the certification center violates the standards or procedure for certification by intention or gross negligence; |
| 3. | If the certification center refuses to conduct certification-related affairs without good cause. |
| (4) | If the head of a certification center deems it necessary to conduct the affairs specified in the subparagraphs of paragraph (1), he/she may request provision of data and other cooperation from any relevant administrative agency or institution. |
| (5) | Matters necessary for the formation, operation, etc. of a certification center shall be prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (6) | The Minister of Oceans and Fisheries shall guide and supervise certification centers and may partially subsidize their operating expenses. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 11 (Certification Mark) |
| (1) | The Minister of Oceans and Fisheries may create a mark indicating certification (hereinafter referred to as "certification mark") and allow certified ship managers to use the mark. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The design of the certification mark and the method of displaying the certification mark shall be prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | No person, other than a certified ship manager, shall manufacture and use a false certification mark or misrepresent him/her as a certified ship manager in any other manner. |
| Article 12 (Assistance to Certified Ship Managers) |
The Minister of Oceans and Fisheries may provide the following assistance to certified ship managers in preference to other ship managers: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | Consulting services for the advancement and globalization of the ship management industry; |
| 2. | Assistance in developing overseas markets and establishing overseas business networks; |
| 3. | Assistance in entering into an agreement on entrustment of ship management between a ship investment company as defined in subparagraph 1 of Article 2 of the Ship Investment Company Act or a ship operating company as defined in subparagraph 4 of the same Article of the same Act and a certified ship manager; |
| 4. | Government assistance for the education, welfare, etc. of seafarers; |
| 5. | Other matters prescribed by Ordinance of the Ministry of Oceans and Fisheries for nurturing certified ship managers. |
SECTION 4 Nurturing and Assistance of Ship Management Experts
| Article 13 (Nurturing, etc. of Ship Management Experts) |
| (1) | The Minister of Oceans and Fisheries may implement the following projects to nurture persons professionally engaged in ship management activities with ship management-related expert knowledge and skills (hereinafter referred to as "ship management experts"): <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Education and training programs for nurturing ship management experts; |
| 2. | Assistance in the development and distribution of advanced techniques, education programs, and teaching materials for the ship management industry; |
| 3. | Career management and certification of work experience of human resources specializing in ship management; |
| 4. | Other projects prescribed by Presidential Decree for nurturing professional human resources for ship management. |
| (2) | A person who intends to be recognized as a ship management expert shall complete an education and training course prescribed by Ordinance of the Ministry of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | The head of an education and training institution (including the head of an institution entrusted with providing education and training under Article 14 (1)) shall issue a certificate of completion of education for ship management experts to a person who completes an education and training course specified in paragraph (2). |
| Article 14 (Education and Training Institutions) |
| (1) | The Minister of Oceans and Fisheries may entrust any of the following entities with education and training of ship management experts under Article 13, as prescribed by Ordinance of the Ministry of Oceans and Fisheries: <Amended by Act No. 11690, Mar. 23, 2013> |
| 2. | A government-funded research institute; |
| 3. | The Korea Ship Management Industry Association; |
| 4. | Other education and training institutions recognized by the Minister of Oceans and Fisheries as being capable of providing education about ship management. |
| (2) | Matters necessary for supervision over entities entrusted with education and training of ship management experts by the Minister of Oceans and Fisheries shall be prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | The Minister of Oceans and Fisheries may subsidize necessary expenses incurred by a person entrusted with affairs under paragraph (1) within budgetary limits. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 15 (Korea Ship Management Industry Association) |
| (1) | Ship managers may establish a Korea Ship Management Industry Association (hereafter referred to as the "Association" in this Article) to ensure the sound development of the ship management industry and common interests. |
| (2) | The Association shall be a corporation. |
| (3) | Ship managers may join the Association, as stipulated by the Association's articles of association. |
| (4) | Matters to be entered in the Association's articles of association and matters necessary for supervision of the Association shall be prescribed by Presidential Decree. |
| (5) | Except as otherwise provided in this Act, provisions regarding incorporated associations in the Civil Act shall apply mutatis mutandis to the Association. |
CHAPTER III SUPPLEMENTARY PROVISIONS
| Article 16 (Prohibition of Lending Letter of Certification) |
No certified ship manager or ship management expert shall allow any other person to conduct business using his/her name or trade name or lend his/her letter of certification or the completion certificate of education to any other person.
When the Minister of Oceans and Fisheries intends to take any of the following dispositions, he/she shall hold a hearing: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | Revocation of certification under Article 9 (1); |
| 2. | Revocation of designation of a certification center under Article 10 (3). |
| (1) | When a person who intends to file an application for certification as an exemplary ship manager pursuant to Article 8, he/she shall pay fees to the Minister of Oceans and Fisheries or the head of the relevant certification center. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | A person who intends to obtain a certificate of completion of education pursuant to Article 13 (3) shall pay fees to the head of the relevant education and training institution or the head of the institution entrusted with providing education or training. |
| (3) | Necessary matters concerning guidelines for fees, etc. under paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
| Article 19 (Delegation or Entrustment of Authority) |
| (1) | The Minister of Oceans and Fisheries may delegate part of his/her authority vested under this Act to the head of a Regional Office of Oceans and Fisheries or may entrust it to the Korea Ship Management Industry Association, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14731, Mar. 21, 2017> |
| (2) | The Minister of Oceans and Fisheries may subsidize expenses incurred by a person entrusted with affairs under paragraph (1) within budgetary limits. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 20 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
| 1. | An executive officer or employee of a certification center that conducts certification-related affairs under Article 10; |
| 2. | An executive officer or employee of an institution that provides education and training under Article 14. |
| 3. | An executive officer of employee of the Korea Ship Management Industry Association that performs duties entrusted thereto under Article 19. |
CHAPTER IV PENALTY PROVISIONS
| Article 21 (Penalty Provisions) |
| (1) | Any person who manufactures and uses a false certification mark or misrepresents him/her as a certified ship manager in any other manner, in violation of Article 11 (3), shall be subject to a fine not exceeding 30 million won. |
| (2) | Any person who allows any other person to use his/her name or trade name or lends his/her letter of certification, in violation of Article 16, shall be subject to a fine not exceeding ten million won. |
| Article 22 (Joint Penalty Provisions) |
If the representative of a corporation, or an agent, employee, or any other servants employed by a corporation or an individual commits an offense under Article 21 in connection with 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 where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offense.
| Article 23 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding two million won: |
| 1. | A person who fails to submit data pursuant to Article 4 (5) or who submits false data; |
| 2. | A person who lends his/her certificate of completion of education for ship management experts, in violation of Article 16. |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Oceans and Fisheries. <Amended by Act No. 11690, Mar. 23, 2013> |
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2012: Provided, That provisions regarding certification of exemplary ship managers under Article 8 shall enter into force on the date specified by Presidential Decree, within a period not exceeding three years after the date of its promulgation. Article 2 (Transitional Measures concerning Korea Ship Managers' Association)
| (1) | If the Korea Ship Managers' Association established as an incorporated association pursuant to the Civil Act as at the time this Act enters into force (hereinafter referred to as the "Korea Ship Managers' Association") completes registration for establishment after adopting a resolution at its board of directors with regard to succession to its status and obtaining approval thereof from the Minister of Land, Transport and Maritime Affairs, it shall be deemed the Korea Ship Management Industry Association established under Article 15. In this case, the Korea Ship Managers' Association shall be deemed dissolved, notwithstanding the provisions regarding dissolution and liquidation of corporations in the Civil Act. |
| (2) | The property, rights, and obligations of the Korea Ship Managers' Association for the purposes of paragraph (1) shall be deemed the property, rights, and obligations of the Korea Ship Management Industry Association established under Article 15, and the title of the Korea Ship Managers' Association entered in the registers regarding its property, rights, and obligations and other official records shall be deemed the title of the Korea Ship Management Industry Association established under Article 15. |
| (3) | The value of property deemed the property of the Korea Ship Management Industry Association established under Article 15 shall be determined at the book value of such property as at the date immediately preceding the date of registration for establishment under paragraph (1). |
| (4) | An act done by the Korea Ship Managers' Association prescribed in paragraph (1) before this Act enters into force shall be deemed an act done by the Korea Ship Management Industry Association established under Article 15, while an act done with regard to the Korea Ship Managers' Association shall be deemed an act done with regard to the Korea Ship Management Industry Association established under Article 15. |
| (5) | Executives and employees of the Korea Ship Managers' Association prescribed in paragraph (1) as at the time this Act enters into force shall be deemed elected or appointed as executives and employees of the Korea Ship Management Industry Association established under Article 15. In this case, such executives shall serve for the remainder of the term of office stipulated in the articles of association of the Korea Ship Managers' Association. |
Article 3 Omitted.
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.
ADDENDUM <Act No. 14731, Mar. 21, 2017>
This Act shall enter into force six months after the date of its promulgation.