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ENFORCEMENT DECREE OF THE COMMODITY MANAGEMENT ACT

Presidential Decree No. 1015, Oct. 29, 1962

Amended by Presidential Decree No. 27473, Aug. 31, 2016

Presidential Decree No. 28211, Jul. 26, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Commodity Management Act and those necessary for the enforcement of such matters.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 2 Deleted. <by Presidential Decree No. 16708, Feb. 14, 2000>
CHAPTER II CLASSIFICATION AND STANDARDIZATION OF COMMODITIES
 Article 3 Deleted. <by Presidential Decree No. 21792, Oct. 21, 2009>
 Article 4 (Classification of Commodities)
(1) For efficient management of commodities, the head of each central government agency shall use commodity list numbers assigned under Article 8 of the Act on the Management and Use of Information on Commodity Lists, when he/she classifies commodities under his/her control.
(2) The system of commodity list numbers, methods of numbering, etc. referred to in paragraph (1) shall be as prescribed in Article 9 of the Enforcement Decree of the Act on the Management and Use of Information on Commodity Lists.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 5 (Standardization of Commodities)
(1) When the head of each central government agency formulates standards for major commodities to be used only by such agency and its subsidiary organs (hereinafter referred to as "agency's standards") pursuant to Article 6 (1) of the Commodity Management Act (hereinafter referred to as the "Act"), he/she shall submit such standards to the Administrator of the Public Procurement Service without delay.
(2) Where the head of each central government agency formulates standards for major commodities to be commonly used in government agencies (hereinafter referred to as "governmental standards") pursuant to Article 6 (1) of the Act, the Administrator of the Public Procurement Service shall publicly notify the details of such standards, date and time of enforcement, and other necessary matters.
(3) Where deemed necessary to acquire or use major commodities for which it is impracticable to formulate agency's standards or governmental standards, the head of each central government agency and the Administrator of the Public Procurement Service may employ the standard specifications of the relevant commodities as its standards.
(4) Where there are industrial standards formulated and publicly notified under the Industrial Standardization Act pertaining to a commodity, the head of each central government agency and the Administrator of the Public Procurement Service may use the relevant industrial standards by supplementing only necessary matters without formulating separate agency's standards or governmental standards.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 5-2 (Evaluation, etc. of Status of Commodity Management)
(1) Pursuant to Article 7 (3) 4 of the Act, the Administrator of the Public Procurement Service shall assess the status of commodity management performed by the head of each central government agency in accordance with the standards determined by the Administrator of the Public Procurement Service.
(2) The Administrator of the Public Procurement Service shall determine such details as the standards and methods of and procedures for assessment pursuant to paragraph (1), and notify them to the head of each central government agency.
(3) The Administrator of the Public Procurement Service shall notify the result of the assessment conducted under paragraph (1) to the head of each central government agency.
(4) If the result of assessment referred to in paragraph (3) contains any problem as to the status of commodity management, the head of the relevant central government agency shall take necessary measures.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
CHAPTER III BODIES OF COMMODITY MANAGEMENT
 Article 6 (Measures Taken pertaining to Result of Audit)
Where the Administrator of the Public Procurement Service requests the head of a central government agency to make corrections under Article 7 (5) of the Act, the Administrator shall notify the details thereof to the Board of Audit and Inspection of Korea.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 7 (Delegation, etc. of Management of Commodities)
(1) Where the head of a central government agency delegates affairs related to the management of commodities to at least two public officials under his/her control pursuant to Article 9 (1) of the Act, he/she shall designate one of them and require him/her to exercise overall control of the affairs related to the management of commodities and coordinate them.
(2) Where the head of a central government agency intends to delegate affairs related to the management of commodities under his/her control to a public official belonging to another central government agency pursuant to Article 9 (1) of the Act, he/she shall pre-consult with the head of relevant central government agency.
(3) When a commodity management officer (including public officials who partially take charge of the duties of the commodity management officer pursuant to Article 12 (1) of the Act; hereinafter the same shall apply) delegates affairs related to the acquisition, disbursement, and custody of commodities (excluding affairs related to the orders for acquisition or disbursement) or affairs related to the use of commodities pursuant to Article 10 (1) or 11 (1) of the Act to a public official belonging to the agency of his/her employment, he/she shall comply with the rules prescribed by the head of the central government agency of his/her employment.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 8 (Delegation to Heads, etc. of Local Governments)
(1) Where the head of a central government agency delegates affairs related to the management of commodities to the head of a local government or his/her subordinate public officials pursuant to Article 13 of the Act, he/she shall notify the details of delegated affairs to the Minister of the Interior and Safety and the Administrator of the Public Procurement Service. <Amended by Presidential Decree No. 24441, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28211, Jul. 26, 2017>
(2) In delegating affairs related to the management of commodities pursuant to Article 13 of the Act, the office position established in the relevant local government may be designated.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Articles 9 through 14 Omitted. <by Presidential Decree No. 15126, Jul. 26, 1996>
CHAPTER IV MANAGEMENT OF COMMODITIES
SECTION 1 Common Provisions
 Article 15 (Preparation, etc. of Plans for Supply-Demand Management of Commodities)
(1) Pursuant to Article 15 (1) of the Act, the Administrator of the Public Procurement Service shall prepare guidelines to formulate plans for the supply-demand management of commodities for the following year and notify such guidelines to the head of each central government agency by no later than September 30 every year.
(2) Pursuant to Article 15 (2) of the Act, the head of each central government agency shall formulate a plan for the supply-demand management of commodities for the relevant year and submit it to the Administrator of the Public Procurement Service by no later than the end of February every year.
(3) The Administrator of the Public Procurement Service shall examine a plan for the supply-demand management of commodities submitted by the head of each central government agency pursuant to paragraph (2); and where any supplementation is necessary, he/she shall immediately request the head of the relevant central government agency to supplement it.
(4) The head of a central government agency in receipt of a request for supplementation pursuant to paragraph (3) shall supplement the relevant plan for the supply-demand management of commodities by no later than March 15 of the relevant year.
(5) The Administrator of the Public Procurement Service shall formulate a comprehensive government plan for the supply-demand management of commodities pursuant to Article 15 (3) of the Act and submit it to the Minister of Strategy and Finance and a copy of the said plan to the Board of Audit and Inspection of Korea by no later than March 31 every year.
(6) When the head of a central government agency amends a plan for the supply-demand management of commodities due to the revision or re-appropriation of budget made under Article 89 (1) or 46 of the National Finance Act or any other unavoidable reason, he/she shall immediately notify such fact to the Administrator of the Public Procurement Service specifying the reasons for such amendment.
(7) When the head of a central government agency formulates or amends a plan for the supply-demand management of commodities, the submission referred to in paragraph (2) or notification referred to in paragraph (6) may be substituted by posting such fact on a data processing system designated and publicly notified by the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 16 (Scope of Commodities subject to Formulation of Plans for Supply-Demand Management of Commodities)
Commodities subject to the formulation of a plan for the supply-demand management of commodities under Article 15 (2) of the Act shall be as follows:
1. Commodities subject to the fixed-number management referred to in Article 17;
2. Commodities, other than those referred to in subparagraph 1, designated by the head of a central government agency or the Administrator of the Public Procurement Service, for the reason of being intended to be procured in a lump or deemed necessary for planned management.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 17 (Fixed-Number Management of Commodities)
(1) Major commodities subject to fixed-number management under Article 16 (1) of the Act shall be designated by the Administrator of the Public Procurement Service among commodities commonly used by central government agencies.
(2) In formulating the standards for fixing the number or determining the fixed number pursuant to Article 16 (1) or (2) of the Act, the Administrator of the Public Procurement Service or a commodity management officer shall take into account the functions, workload, prescribed number of people, etc. of each central government agency.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 18 (Useful Life of Commodities)
(1) In determining the useful life of commodities pursuant to Article 16-2 (1) of the Act, the Administrator of the Public Procurement Service shall take into account the average period of use, endurance period prescribed by other statutes or municipal ordinances and rules, endurance period fixed by the Korea Appraisal Board under the Korea Appraisal Board Act, and other relevant matters. <Amended by Presidential Decree No. 27473, Aug. 31, 2016>
(2) Where the head of a central government agency determines a useful life under the former part of Article 16-2 (2) of the Act, paragraph (1) shall apply mutatis mutandis.
[This Article Newly Inserted by Presidential Decree No. 21792, Oct. 21, 2009]
 Articles 19 and 20 Deleted. <by Presidential Decree No. 15126, Jul. 26, 1996>
 Article 21 Deleted. <by Presidential Decree No. 16708, Feb. 14, 2000>
 Article 22 (Stocktaking)
(1) The Administrator of the Public Procurement Service shall formulate guidelines for regular stocktaking on commodities to be conducted by the head of each central government agency pursuant to Article 19 (1) of the Act and notify such guidelines to the head of each central government agency by no later than September 30 every year.
(2) The head of each central government agency shall conduct regular stocktaking on commodities based on December 31 every year pursuant to the guidelines for regular stocktaking on commodities referred to in paragraph (1), and shall prepare and submit a report on regular stocktaking to the Administrator of the Public Procurement Service by no later than the end of February of the following year. In such cases, the submission of a report on regular stocktaking may be substituted by posting the report on a telecommunications medium or program referred to in Article 46 of the Management of the National Funds Act (hereinafter referred to as "digital budgeting and accounting system").
(3) The Administrator of the Public Procurement Service shall examine the report on regular stocktaking submitted by the head of each central government agency pursuant to paragraph (2); and where any supplementation is necessary, he/she shall immediately request the head of the relevant central government agency to supplement it.
(4) The head of a central government agency in receipt of a request for supplementation under paragraph (3) shall supplement the relevant report on regular stocktaking by no later than March 15 of the relevant year.
(5) Where it is necessary to examine the management status of commodities due to changes in organizational structure, etc., the Administrator of the Public Procurement Service may conduct special stocktaking on commodities under the control of the head of a central government agency pursuant to Article 19 (2) of the Act.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 23 (Inventory Adjustment)
When the head of a central government agency makes an adjustment of inventory pursuant to Article 20 of the Act, he/she shall enter the current quantity and value of each commodity in the relevant standard form specifying the following matters after adjusting them, and shall identify the reasons for the increase or decrease, as determined by the Administrator of the Public Procurement Service:
1. Commodity list number, and the name and item of the commodity intended for inventory adjustment;
2. Quantity and value specified in the standard form as of the date of inventory adjustment;
3. Increased or decreased quantity and value found as a result of inventory adjustment;
4. Quantity and value specified in the standard form after adjusting the inventory;
5. Reasons for adjusting inventory.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 24 (Preparation of Operational Reports on Management of Commodities)
(1) A commodity subject to the preparation of an operational report on the management of commodities under Article 21 of the Act shall be a commodity with a unit price for acquisition of at least 500 thousand won.
(2) The head of each central government agency may substitute submission referred to in Article 21 (1) of the Act with posting an operational report on the management of commodities on a digital budgeting and accounting system.
(3) The price of a commodity to be specified in an operational report on the management of commodities pursuant to paragraph (1) shall be the price assessed pursuant to national accounting standards referred to in Article 11 of the National Accounting Act.
(4) Except as otherwise expressly provided for in paragraphs (1) through (3), the form, and method of preparation of an operational report on the management of commodities, and other necessary matters shall be determined by the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 25 (Consultation on Transfer of Management)
A commodity management officer who intends to transfer the management of a commodity pursuant to Article 22 of the Act shall pre-consult the following matters with a commodity management officer who intends to take over the management of the commodity:
1. Commodity list number, and the name, quantity, and price of the commodity the management of which is intended to be transferred;
2. Where the management of the commodity is to be transferred with compensation, the agreed price of the commodity;
3. Reasons for the transfer of management.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 26 (Transfer of Management between Central Government Agencies)
In transferring management pursuant to the proviso to Article 22 (1) of the Act, a commodity management officer shall obtain approval from the head of the central government agency of his/her employment for the transfer of management of any commodity excluding the following:
1. A commodity, the management of which is transferred on condition that it will be returned within one year;
2. Where any test, research, examination, or inspection necessary to perform any affairs or services of the State is entrusted to another government agency, a commodity necessary to perform such duties;
3. A commodity with a unit price for acquisition of less than five million won;
4. A commodity that needs an urgent disposal by nature.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 27 (Transfer of Management between Accounts)
(1) "Transfer of management prescribed by Presidential Decree" in Article 22 (2) of the Act means any of the following cases:
1. Where the management of a commodity is transferred on condition that it will be returned within six months;
2. Where the management of a commodity referred to in subparagraph 2 of Article 26 is transferred;
3. Where the head of a central government agency decides to transfer the management of a commodity without compensation, in consultation with the Administrator of the Public Procurement Service.
(2) The value of a commodity when its management is transferred with compensation pursuant to Article 22 (2) of the Act shall be the price entered in the register: Provided, That, where it is impracticable to transfer it at the price entered in the register, it may be transferred at a market price.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 28 (Standard Forms)
"Standard forms prescribed by Presidential Decree" in Article 24 of the Act means the following:
1. Register of acquisition and disposal of commodities;
2. Register of management of commodities;
3. Invoice for commodities;
4. Voucher for issuance of commodities;
5. Certificate of return and receipt.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 28-2 (Recording Prices)
(1) In the standards forms set forth in Article 28, the acquisition price of a commodity shall be entered; and, where there is no acquisition price of a commodity or where the acquisition price cannot be identified, the market price, appraised value, or a price based on the estimate price shall be entered therein: Provided, That, where the price is assessed pursuant to national accounting standards referred to in Article 11 of the National Accounting Act, such price shall be entered in the register of management of commodities among the standard forms.
(2) Where there is a damaged amount of less than ten won in the price referred to in paragraph (1), such damaged amount shall not be recorded: Provided, That this shall not apply where the unit price of a commodity is recorded.
(3) The acquisition price referred to in the main sentence of paragraph (1) shall include the price of the relevant commodity, and fees, installation costs, transportation costs, and other incidental expenses incurred in connection with the purchase of the commodity.
[This Article Newly Inserted by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 29 (Computerization of Commodity Management)
(1) Where the head of a central government agency intends to computerize affairs related to commodity management pursuant to Article 25 of the Act, he/she shall pre-consult with the Administrator of the Public Procurement Service as to the development of computation and the joint use and processing system of input and output data.
(2) For efficient management of commodities, the head of each central government agency shall manage commodities falling under the standards prescribed by the Administrator of the Public Procurement Service by affixing electronic tags.
(3) Methods of managing commodities on which electronic tags are affixed under paragraph (2), and other necessary matters shall be determined by the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 30 (Exception to Restriction on Taking Over by Public Officials Engaging in Commodity Management)
Commodities that a public official engaging in commodity management is eligible to take over from the State pursuant to the proviso to Article 27 (1) of the Act shall be as follows:
1. Commodities for sale, the value of which is prescribed by statutes or public notification;
2. Other commodities determined by the head of each central government agency in consultation with the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
SECTION 2 Acquisition
 Article 31 (Request to Take Measures for Acquisition)
(1) When a commodity management officer requests a public official in charge of contracts to take measures necessary for acquiring a commodity pursuant to Article 28 (1) of the Act, he/she shall specify the commodity list number, and the name, item, and quantity of the commodity that he/she intends to acquire, and the time when such commodity is needed.
(2) If any requested matter fails to meet the standards prescribed in subparagraphs of Article 34 or where it is impracticable to take measures necessary to acquire the commodities as requested due to the budgetary situation or any other extenuating circumstance, the public official in charge of contracts in receipt of such request under paragraph (1) shall notify such fact to the commodity management officer.
(3) Where a commodity management officer and public official in charge of contracts are one and the same person, the request under paragraph (1) and the notification under paragraph (2) may be omitted.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 32 Deleted. <by Presidential Decree No. 19123, Nov. 11, 2005>
 Article 33 (Notification on Acquisition of Commodities)
Except where any commodities are acquired as requested under Article 28 of the Act, a public official engaging in affairs related to commodities shall, if the State acquires any commodity in the course of performing his/her duties, notify such fact to a commodity management officer without delay.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 34 (Measures for Acquisition)
In taking measures necessary for acquiring commodities pursuant to Article 28 (1) and (2) of the Act, a commodity management officer and a public official in charge of contracts shall comply with the following standards:
1. Where the commodities they intend to acquire are procurement commodities defined in Article 2 of the Government Procurement Act, they shall request the Administrator of the Public Procurement Service to procure them;
2. Where the commodities they intend to acquire are standardized pursuant to Article 5, such commodities shall be acquired on a preferential basis;
3. Where the commodities they intend to acquire can satisfy the requirement for demand as environment-friendly products, etc. referred to in Article 6 of the Act on the Encouragement of Purchase of Environment-Friendly Products, such commodities shall be acquired on a preferential basis.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
SECTION 3 Custody
 Article 35 (Request for Measures for Keeping in Custody)
(1) Where a commodity management officer intends to keep a commodity under his/her control in the custody of a facility other than that owned by the State pursuant to the proviso to Article 30 of the Act, he/she shall request a public official in charge of contracts to take necessary measures to keep it in custody, by specifying the following matters:
1. Commodity list number, and the name, item, and quantity of the commodity that needs to be kept in custody;
2. Period of custody;
3. Place of and facilities for custody;
4. Collateral conditions of custody.
(2) If it is impracticable to take measures necessary for keeping a commodity in custody as requested due to the budgetary situation or any other extenuating circumstance, the public official in charge of contracts in receipt of such request pursuant to paragraph (1) shall notify such fact to a commodity management officer.
(3) Where a commodity management officer and public official in charge of contracts are one and the same person, the request under paragraph (1) and the notification under paragraph (2) may be omitted.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 36 (Orders to Acquire or Disburse Commodities)
(1) When a commodity management officer issues an order to acquire or disburse a commodity under Article 31 of the Act, he/she shall specify the following:
1. Commodity list number, and the name, item, and quantity of the commodity to be acquired or disbursed;
2. Timing for acquisition or disbursement;
3. The person who takes over a commodity to be acquired or disbursed from a commodity accounting official and the person who transfers it to a commodity accounting official.
(2) When a commodity accounting official acquires or disburses a commodity in accordance with an order to acquire or disburse it issued under paragraph (1), he/she shall acquire or disburse it in compliance with such order.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 37 (Request to Take Measures for Repair or Alteration)
(1) When a commodity management officer requests a public official to take measures necessary for repairing or altering a commodity pursuant to Article 32 (2) of the Act, he/she shall specify the following:
1. Commodity list number, and the name, item, and quantity of the commodity that needs to be repaired or altered;
2. Timing for repair or alteration;
3. The details of repair or alteration;
4. Conditions to be attached to repair or alteration.
(2) Article 35 (2) and (3) shall apply mutatis mutandis to a request made under paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
SECTION 4 Use
 Article 38 (Use)
(1) When a commodity operating officer requests an order for the acquisition or disbursement of any commodity pursuant to the proviso to Article 33 of the Act, he/she shall specify the commodity list number, and the name, item, quantity, and use of the relevant commodity.
(2) When a commodity operating officer allows a public official under his/her control to use any commodity, he/she shall specify the public official who will use the relevant commodity.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
SECTION 5 Disposition
 Article 39 (Guidelines, etc. for Determining Disuse)
When a commodity management officer determines to disuse or scrap any commodity under his/her control pursuant to Article 35 of the Act, he/she shall comply with guidelines prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 40 (Commodities subject to Determination on Disuse or Scrapping after Obtaining Approval from Head of Central Government Agency)
(1) A commodity, the disuse of which requires a commodity management officer to obtain approval from the head of the central government agency of his/her employment pursuant to the proviso to Article 35 (1) of the Act, shall be a utilizable commodity with a unit price for acquisition of at least five million won.
(2) A commodity, the scrapping of which requires a commodity management officer to obtain approval from the head of the central government agency of his/her employment pursuant to the proviso to Article 35 (2) of the Act, shall be a commodity with a unit price for acquisition of at least five million won.
(3) When a commodity management officer determines to disuse a commodity, he/she shall specify the following:
1. Commodity list number, and the name, item, quantity, and value of the commodity he/she intends to determine to disuse;
2. Date of purchase and status of the commodity;
3. History of the use of the commodity;
4. Reasons for determining to disuse the commodity;
5. Whether its usability for any other purpose is examined;
6. Method of disposal.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 40-2 (Procedures, etc. Necessary for Exchange)
(1) A commodity management officer who exchanges any commodities pursuant to Article 35-2 of the Act shall specify the reasons for exchange, prices of exchanged commodities, the other party to exchange, use of exchanged commodities, and other relevant matters.
(2) Where any commodities are exchanged pursuant to paragraph (1) and their prices are different from each other, the difference shall be paid in terms of money.
[This Article Newly Inserted by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 41 (Request to Take Measures for Exchange, etc.)
(1) A commodity management officer who intends to exchange, sell, concede, lease, or use a commodity as a source for financing (hereafter referred to as "exchange, etc." in this paragraph) pursuant to Article 35-2, 36 (2), 38 (1), 41 (1), or 42 of the Act shall request a public official in charge of contracts to take necessary measures, by specifying the following:
1. Commodity list number, and the name, item, quantity, and value of the commodity he/she intends to exchange, etc.;
2. Timing for exchange, etc. and other necessary matters.
(2) Article 35 (2) and (3) shall apply mutatis mutandis to a request made under paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 41-2 (Management, Repair, and Disposal of Recyclable Commodities)
(1) If necessary for efficiently managing, repairing, and disposing of commodities in disuse, but available for recycling, and if the management for such commodities is transferred without compensation pursuant to Article 37 (2) of the Act (hereinafter referred to as "recyclable commodity"), the Administrator of the Public Procurement Service may select a person deemed capable from among recycling business operators and enter into a contract on the management, repair, and disposal of recyclable commodities.
(2) A contract specified in paragraph (1) may be concluded by means of a free contract.
(3) The compensation payable to a person selected pursuant to paragraph (1) (hereinafter referred to as "recycling business operator") shall be determined taking into account expenses incurred in collecting, transporting, repairing, disposing of, etc. the relevant recyclable commodities, but it shall not exceed 75 percent of the costs for disposal of recycling commodities.
(4) Where a recycling business operator disposes of recyclable commodities, he/she shall follow the methods determined by the Administrator of the Public Procurement Service, and the disposal prices thereof shall be determined by the recycling business operator, taking into account the market prices of the commodities which are the same as or similar to the recyclable commodities.
(5) Where necessary for efficiently disposing of recyclable commodities, the Administrator of the Public Procurement Service may require a recycling business operator to obtain a prior approval when the operator intends to determine the disposal prices of recyclable commodities pursuant to paragraph (4).
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 42 (Concession of Commodities in Disuse)
(1) Commodities that the head of a central government agency may concede without compensation to local governments, etc. pursuant to Article 38 (1) of the Act shall be as follows:
1. Commodities the management of which could not be transferred, or those that have no possibility to be transferred:
2. Commodities which could not be sold or which have no possibility to be sold;
3. Commodities the sale of which is disadvantageous to the State, or those the cost of sale of which exceeds the price for sale;
4. Commodities that cannot be used or retained by the State under any other Act.
(2) The head of a central government agency who intends to concede any commodities set forth in paragraph (1) without compensation shall specify the following:
1. Commodity list numbers, and the names, items, quantities, and values of the commodities;
2. History of the use of the commodities;
3. Conditions of the commodities;
4. Reasons for conceding the commodities without compensation.
(3) Educational institutions, research institutes, national veterans organizations, or other non-profit organizations referred to in Article 38 of the Act shall be as follows:
1. Corporation to which the State or a local government has contributed or is subsidized by either the State or a local government at least one half of the fund or expenses;
2. Corporation to which the State, a local government, or a public institution under the Act on the Management of Public Institutions has contributed at least one half of the capital;
3. Corporations or organizations that perform affairs entrusted by the Government or nonprofit-making public services.
(4) Where any corporation or organization that performs nonprofit-making public services referred to in paragraph (3) 3 intends to concede any commodity in disuse to a foreign corporation or organization, it shall pre-consult with the Administrator of the Public Procurement Service.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 43 (Methods of Sale)
(1) The head of a central government agency or the Administrator of the Public Procurement Service may sell any commodities intended for sale under Article 39 of the Act by a free contract, if they are not sold through general competitive bidding or auction conducted on at least two occasions: Provided, That any commodity with a unit price for acquisition of not exceeding 100 thousand won and a total amount of not exceeding five million won may be sold by a free contract from the beginning.
(2) The estimated price of commodities in disuse when they are sold pursuant to paragraph (1) shall be determined based on the actual quoted price thereof or the price appraised and assessed by an appraisal business operator under the Act on Appraisal and Certified Appraisers (hereinafter referred to as "appraisal business operator"): Provided, That, where the cost of appraisal is expected to exceed the estimated price or where it is impracticable for an appraisal business operator to appraise the commodities in disuse, the estimated price may be determined based on a written estimate received from the other party to the contract or from a third party. <Amended by Presidential Decree No. 27422, Aug. 31, 2016>
(3) No estimated price determined under paragraph (2) shall be presented to persons participating in a general competitive bid or auction: Provided, That this shall not apply where the presentation of the estimated price is deemed to make the sale easy.
(4) Procedures for and methods of auction or free contract under paragraph (1), and other necessary matters shall be prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 43-2 [Previous Article 43-2 moved to Article 41-2]
 Article 43-3 [Previous Article 43-3 moved to Article 44-2]
 Article 44 (Fees for Sale)
(1) The rate of a fee for the sale of commodities in disuse payable pursuant to Article 40 (2) of the Act shall be determined by the Administrator of the Public Procurement Service after obtaining approval from the Minister of Strategy and Finance.
(2) Fees for sale under paragraph (1) shall be credited to the special account for procurement under subparagraph 4 of Article 3 of the Government Enterprise Budget Act.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 44-2 (Accounting of Recyclable Commodities)
The Administrator of the Public Procurement Service shall credit, to the special account for procurement under subparagraph 4 of Article 3 of the Government Enterprise Budget Act, the entire disposal proceeds where he/she has directly disposed of any recyclable commodity, or shall credit the balance remaining after making payment to a recycling business operator from the disposal proceeds where he/she has made the relevant recycling business operator dispose of recyclable commodities pursuant to Article 41-2.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 45 (Lease Charges, etc.)
(1) Lease charges to be imposed on a commodity leased out pursuant to Article 41 (1) of the Act shall be determined by the head of the relevant central government agency, in an amount equivalent to at least six percent of the appraised value of the commodity per annum.
(2) The appraised value of a commodity referred to in paragraph (1) shall be determined by the head of a central government agency taking into account the book value, useful life, etc. of the relevant commodity.
(3) Institutions or organizations eligible to be exempt from lease charges pursuant to the proviso to Article 41 (2) of the Act shall be the State, local governments, public institutions designated under the Act on the Management of Public Institutions, and corporations or organizations specified in subparagraphs of Article 42 (3).
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
SECTION 6 Due Wear and Tear
 Article 46 (Due Wear and Tear)
(1) Commodities that may be disposed of on the ground of due wear and tear pursuant to Article 43 (2) of the Act shall be as follows:
1. Grains and salt;
2. Other commodities determined by the head of each central government agency.
(2) Upon determining commodities that may be disposed of on the ground of due wear and tear or the rate of due wear and tear, the head of the relevant central government agency shall publicly notify the details thereof.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
CHAPTER V SUPPLEMENTARY PROVISIONS
 Article 47 (Disposition of Commodities Lost or Damaged)
(1) When any commodity kept in their custody or made to be used in accordance with the purpose and use of the affairs or services of the State is lost or damaged, a commodity accounting official and a commodity operating officer shall report such fact to a commodity management officer without delay.
(2) Under a contract that a public official in charge of contracts has entered into (including activities, other than entering into a contract, that serve as grounds for the disposition of a commodity) on condition that the disposed commodity will be redeemed in the future, if such commodity is lost or damaged, he/she shall notify such fact to the commodity management officer without delay.
(3) When a commodity management officer confirms that any commodity he/she manages is lost or damaged, through reporting under paragraph (1) or notification under paragraph (2), and if a public official engaging in affairs related to the management of the commodity is deemed to have caused a loss to the State by violating any statutes, the commodity management officer shall report such fact without delay to the head of the central government agency of his/her employment.
(4) When the head of a central government agency receives a report from a commodity management officer pursuant to paragraph (3), he/she shall notify such fact without delay to the Minister of Strategy and Finance, the Administrator of the Public Procurement Service, and the Board of Audit and Inspection of Korea pursuant to Article 7 of the Act on Liability of Accounting Personnel, Etc., and may issue an order to indemnify the relevant loss, pursuant to the standards for indemnification prescribed in Article 2 of the Enforcement Decree of the Act on Liability of Accounting Personnel, Etc. within the limit of amount of indemnification authorized per agency or position specified in Article 1 of the same Enforcement Decree.
(5) When the head of a central government agency makes a disposition of loss or damage of a commodity reported under paragraph (3), he/she shall notify the result thereof to the Minister of Strategy and Finance, the Administrator of the Public Procurement Service, and the Board of Audit and Inspection of Korea.
(6) Where a commodity management officer and public official in charge of contracts are one and the same person, notification under paragraph (2) may be omitted.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 48 (Request for Adjudication)
(1) When a public official engaging in affairs related to the management of commodities, in receipt of an order to indemnify a loss issued under Article 6 (1) of the Act on Liability of Accounting Personnel, Etc., has a reason to be exempted from such liability, he/she may request the Board of Audit and Inspection of Korea to adjudicate as to whether to grant such exemption, by submitting a document specifying such reason to the Board of Audit and Inspection of Korea along with the documents substantiating it.
(2) Documents to be submitted to the Board of Audit and Inspection of Korea pursuant to paragraph (1) shall be submitted via the head of the central government agency of his/her employment.
(3) No effect of an order to indemnify a loss issued to a public official engaging in affairs related to the management of commodities shall be suspended, including in the cases where adjudication is requested to the Board of Audit and Inspection of Korea pursuant to paragraph (1).
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 49 Deleted. <by Presidential Decree No. 16708, Feb. 14, 2000>
 Article 50 (Inspection)
When the head of a central government agency inspects management of commodities under his/her control pursuant to Article 48 of the Act, he/she shall designate a public official in charge of the inspection and assign him/her to perform the inspection, as prescribed by Ordinance of the Ministry of Strategy and Finance.
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 51 (Commodities Partially Excluded from Application of the Act)
(1) With respect to the following commodities, application of Articles 5, 9 through 13, 15, 16, 16-2, 18 through 25, 28 through 35, 37, 38, 43 through 46, and 48 of the Act may be waived pursuant to Article 49 of the Act: Provided, That in addition to them, application of Articles 36 and 41 of the Act may be waived in cases of commodities referred to in subparagraphs 7 and 7-2: <Amended by Presidential Decree No. 23429, Dec. 30, 2011>
1. Documents necessary for performing the affairs or services of the State;
2. Forms of checks;
3. Commodities confiscated or devolved to the State under statutes;
4. Commodities occupied and kept in custody by a State agency under statutes, necessary for performing the affairs or services of the State;
5. Commodities that wear down in proportion to their use (hereinafter referred to as "consumables"), acquired by paying agency-operating expenses referred to in Article 24 of the Management of the National Funds Act, and other consumables determined and publicly notified by the Administrator of the Public Procurement Service;
6. Gifts devolved to the National Treasury under Article 16 of the Public Service Ethics Act;
7. Art works, such as paintings, calligraphic works, sculptures, photographs, and handicrafts the artistic values of which are acknowledged pursuant to the procedures and standards determined by the Administrator of the Public Procurement Service (hereinafter referred to as "Government's art works");
7-2. Art works, such as paintings, calligraphic works, sculptures, photographs, and handicrafts which are not Government's artworks (hereinafter referred to as "Government's beautification commodities");
8. Books, articles preserved in museums, and articles displayed in science museums;
9. Commodities retained because the head of a central government agency has acknowledged their historical and scientific preservation values among commodities in disuse;
10. Commodities in disuse, the management of which is transferred without compensation for recycling by the Administrator of the Public Procurement Service;
11. Special commodities, such as animals and plants;
12. Software;
13. Leased commodities.
(2) Article 52 shall apply to the management of Government's art works and Government's beautification commodities, and methods for managing commodities referred to in paragraph (1) 12 and 13 may be separately determined by the Administrator of the Public Procurement Service and notified to the head of each central government agency. <Amended by Presidential Decree No. 23429, Dec. 30, 2011>
(3) Except where the Administrator of the Public Procurement Service has separately determined and notified methods for managing commodities pursuant to any other statute or paragraph (2) hereof concerning the commodities to which the application of the Act is waived pursuant to paragraph (1) and where Article 52 applies, the head of each central government agency shall manage the relevant commodities by determining matters necessary for efficiently and appropriately managing such commodities, taking into account the characteristics of such commodities. <Amended by Presidential Decree No. 23429, Dec. 30, 2011>
[This Article Wholly Amended by Presidential Decree No. 21792, Oct. 21, 2009]
 Article 52 (Management of Government's Art Works and Government's Beautification Commodities)
(1) If necessary for expertly managing Government's art works, the Administrator of the Public Procurement Service may request the head of a central government agency to take necessary measures, such as transferring the management of Government's art works under the control of the head of the relevant agency to the jurisdiction of the Ministry of Culture, Sports and Tourism. In such cases, the head of a central government agency in receipt of such request shall comply therewith.
(2) The Administrator of the Public Procurement Service may request the Minister of Culture, Sports and Tourism to perform affairs related to the acquisition, lease, etc. of Government's art works. In such cases, the Minister of Culture, Sports and Tourism in receipt of such request shall comply therewith.
(3) When the Minister of Culture, Sports and Tourism manages Government's art works the management of which is transferred to him/her pursuant to paragraph (1), or performs affairs related to the acquisition, lease, etc. of Government's art works pursuant to paragraph (2), he/she shall designate a specialized institution to perform the relevant affairs.
(4) Except in the following cases, the head of a central government agency shall use Government's art works or Government's beautification commodities by obtaining a lease from a specialized institution designated under paragraph (3):
1. Where the acquisition price is less than 500 thousand won;
3. Where they are installed under Article 9 of the Culture and Arts Promotion Act;
4. Where they are produced by the relevant central government agency itself;
5. Other cases approved by the Administrator of the Public Procurement Service as he/she deems it improper to use the Government's art works or Government's beautification commodities by obtaining lease from a specialized institution, taking into account the characteristics of the relevant central government agency and the relevant Government's art works or Government's beautification commodities.
(5) Where the head of a central government agency transfers management pursuant to paragraph (1), he/she may obtain lease or have the lease period of the relevant Government's art works renewed on a preferential basis: Provided, That such preferential treatment shall not apply where a specialized institution referred to in paragraph (3) deems there is a problem in the management status of the Government's art works leased out.
(6) Except as otherwise expressly provided for in paragraphs (1) through (5), necessary matters concerning methods for managing Government's art works and Government's beautification commodities shall be determined by the Administrator of the Public Procurement Service in consultation with the Minister of Strategy and Finance.
[This Article Newly Inserted by Presidential Decree No. 23429, Dec. 30, 2011]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 12781, Aug. 18, 1989>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 12866, Dec. 29, 1989>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 13282, Feb. 1, 1991>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14447, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 15126, Jul. 26, 1996>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 16708, Feb. 14, 2000>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 19123, Nov. 11, 2005>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 4, subparagraph 1 of Article 23, Articles 31 (1), 35 (1) 1, 36 (1) 1, 37 (1) 1, 38 (1), 40 (2) 1, 41 (1) 1, and 42 (2) 1 shall enter into force on January 1, 2006.
ADDENDA <Presidential Decree No. 19806, Dec. 29, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2007.
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 21201, Dec. 31, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 21792, Oct. 21, 2009>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 29 (2) and (3) shall enter into force on January 1, 2010.
ADDENDA <Presidential Decree No. 23429, Dec. 30, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 52 (2) through (5) shall enter into force on October 1, 2012.
Article 2 (Transitional Measures)
Notwithstanding the amended provisions of Article 52 (4), Government's beautification commodities acquired before this Decree enters into force shall be governed by the former provisions.
ADDENDA <Presidential Decree No. 24441, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of a Presidential Decree among Presidential Decrees amended pursuant to Article 5 of the Addenda, promulgated before this Decree enters into force, whose date for enforcement has not yet arrived, shall enter into force on the date the relevant Presidential Decree enters into force, respectively.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27472, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 through 7 Omitted.
ADDENDA <Presidential Decree No. 27473, Aug. 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 1, 2016.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 28211, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That among the Presidential Decrees amended pursuant to Article 8 of the Addenda, amendments to a Presidential Decree, which was promulgated before this Decree enters into force but the date on which it enters into force has yet to arrive, shall enter into force on the enforcement date of the relevant Presidential Decree.
Articles 2 through 8 Omitted.