ENFORCEMENT DECREE OF THE ACT ON PREVENTION OF DIVULGENCE AND PROTECTION OF INDUSTRIAL TECHNOLOGY
Presidential Decree No. 20030, Apr. 27, 2007
Amended by Presidential Decree No. 20678, Feb. 29, 2008
Presidential Decree No. 21440, Apr. 21, 2009
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22854, Apr. 5, 2011
Presidential Decree No. 23541, Jan. 25, 2012
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 26211, Apr. 28, 2015
Presidential Decree No. 28212, Jul. 26, 2017
| Article 2 (Formulation and Implementation of Comprehensive Plans) |
| Article 3 (Formulation, etc. of Action Plans) |
The head of a relevant central administrative agency shall, pursuant to Article 6 (1) of the Act, submit to the Minister of Trade, Industry and Energy the implementation outcomes of the action plan for the previous year, by the last day of February every year, and the action plan for the next year by October 31 every year. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> [This Article Wholly Amended by Presidential Decree No. 23541, Jan. 25, 2012]
| Article 4 (Matters to Be Deliberated at Industrial Technology Protection Committee) |
"Matters prescribed by Presidential Decree" referred to in Article 7 (1) 5 of the Act means matters concerning the alteration of important content of a comprehensive plan under Article 5 (1) of the Act. <Amended by Presidential Decree No. 23541, Jan. 25, 2012>
| Article 5 (Composition and Operation of Industrial Technology Protection Committee) |
| (1) | "Persons prescribed by Presidential Decree" referred to in Article 7 (3) 1 of the Act means any of the following persons: <Amended by Presidential Decree No. 26211, Apr. 28, 2015; Amended by Presidential Decree No. 28212, Jul. 26, 2017> |
| 1. | The Vice Minister I of Strategy and Finance, the Vice Minister of Education, the Vice Minister I of Science and ICT, the Vice Minister ?? of Foreign Affairs, the Vice Minister of Justice, the Vice Minister of National Defense, the Vice Minister of Agriculture, Food and Rural Affairs, the Vice Minister of Health and Welfare, the Vice Minister of Environment, the Vice Minister I of Land, Infrastructure and Transport, the Vice Minister of Oceans and Fisheries, and the Vice Minister of SMEs and Startups; |
| 2. | The Commissioner of the Korean Intellectual Property Office. |
| (2) | Where the Chairperson of the Industrial Technology Protection Committee (hereinafter referred to as "the Committee") under Article 7 (1) of the Act is unable to perform his/her duties due to any extenuating circumstance, the members of the Committee shall act on behalf of the Chairperson in the order designated in advance by the Chairperson. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 23541, Jan. 25, 2012> |
| (3) | The term of office of the members of the Committee shall be two years: Provided, That the term of office of a member who is a public official shall be the period during which he/she holds the relevant official position. |
| (4) | The Chairperson of the Committee shall convene and preside over meetings thereof. |
| (5) | To convene a meeting, the Chairperson of the Committee shall notify each member in writing of the date, place and agenda of the meeting by seven days before the date of the meeting: Provided, That where any urgent ground or any other extenuating circumstance exists, the Chairperson may make a verbal notification by the date immediately before the date of the meeting. |
| (6) | The Committee’s meetings shall be held with the attendance of a majority of the members of the Committee, and shall pass resolutions with the concurrent vote of a majority of those present. |
| (7) | A policy consultation council may be established in the Committee to consult about and coordinate the policy issues related to the prevention of divulgence of industrial technology, and the protection thereof, and to efficiently operate the Committee. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
| (8) | Except as provided for in paragraphs (1) through (7), matters necessary for the operation of the Committee and the composition and operation of the policy consultation council shall be determined by the Chairperson of the Committee via a resolution thereof. <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 6 Deleted. <by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 7 (Composition and Operation of Specialized Committees) |
| (1) | Specialized committees under Article 7 (5) of the Act shall be established by areas such as electrics and electronics, information technology, automobile, steel, shipbuilding, nuclear energy, outer space, and biotechnology. <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| (2) | Each specialized committee shall be composed of not more than 15 members, including one chairperson. <Amended by Presidential Decree No. 23541, Jan. 25, 2012> |
| (3) | The chairperson of each specialized committee shall be appointed or commissioned by the Chairperson of the Committee, from among the members of each relevant specialized committee. |
| (4) | The following persons shall become the members of each specialized committee: <Amended by Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | The persons appointed by the Chairperson of the Committee, from among those public officials of Grade IV or a level corresponding thereto recommended by the heads of the relevant administrative agencies; |
| 2. | The persons commissioned by the Chairperson of the Committee for each competent area of specialized committees, from among such persons recommended by the heads of the relevant administrative agencies as having affluent knowledge and experience concerning the prevention of divulgence of industrial technology, and the protection thereof. |
| (5) | The term of office of the members of each specialized committee shall be two years: Provided, That the term of office of a member who is a public official shall be a period during which he/she holds his/her official position. |
| (6) | Each specialized committee shall have one secretary member to be designated by the Chairperson of the Committee, from among the members under paragraph (4) 1. <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| (7) | Each specialized committee shall deal with the affairs the Committee delegates in recognition that they require the specialized examination for the deliberation at the Committee. <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| (8) | In addition to the matters provided for in paragraphs (1) through (7), those matters necessary for the composition and operation of the specialized committees shall be determined by the Chairperson of the Committee via a resolution thereof. <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 8 (Preparation and Keeping of Minutes) |
When holding a meeting, the Committee or a specialized committee shall prepare and keep its minutes. <Amended by Presidential Decree No. 26211, Apr. 28, 2015>
| Article 9 (Allowances and Travel Expenses) |
Allowances and travel expenses may be paid to the members who attend a meeting of the Committee or a specialized committee, within budgetary limits: Provided, That this shall not apply where a member who is a public official attends a meeting in a direct relation to his/her assigned duties. <Amended by Presidential Decree No. 26211, Apr. 28, 2015>
| Article 10 (Formulation of Guidelines for Protection) |
| 1. | Management and operation of industrial technology for the prevention of divulgence of industrial technology, and the protection thereof; |
| 2. | Responses to, and recovery from, the divulgence and infringement of industrial technology. |
| Article 11 (Selection of Technology Subject to Designation as National Core Technology) |
| (1) | Upon selecting technology subject to designation under the former part of Article 9 (1) of the Act (hereinafter referred to as "technology subject to designation"), the head of a relevant central administrative agency shall submit the following materials to the Minister of Trade, Industry and Energy: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Content of the relevant technology subject to designation; |
| 2. | Grounds for selecting the relevant technology subject to designation; |
| 3. | Opinions of the institution possessing the industrial technology or relevant organizations; |
| 4. | Other materials for reference in respect of the selection of technology subject to designation. |
| (2) | Where the Minister of Trade, Industry and Energy consults with the head of a relevant central administrative agency pursuant to the latter part of Article 9 (1) of the Act, he/she shall provide the materials referred to in each subparagraph of paragraph (1) to the head of the competent central administrative agency. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 12 (Alteration or Cancellation of National Core Technology) |
| (1) | Where any national core technology falling under his/her jurisdiction falls under any of the following, the head of a relevant central administrative agency may, after examining its appropriateness, request the Minister of Trade, Industry and Energy to alter the scope or content of such national core technology or cancel the designation thereof, pursuant to the former part of Article 9 (3) of the Act: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Where the head of a relevant central administrative agency receives a request for the alteration or cancellation of any national core technology from an enterprise, research institute, specialized institution, or university which possesses such national core technology (hereafter referred to as an "institution possessing the national core technology" in this Article); |
| 2. | Where any ground for altering or cancelling any existing national core technology arises, due to the divulgence of such national core technology, the change of technology environment, the development of the same or advanced technology, and so forth. |
| (2) | To request the alteration or cancellation of any national core technology pursuant to paragraph (1), materials referred to in the following shall be submitted to the Minister of Trade, Industry and Energy: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Scope and content of the relevant national core technology; |
| 2. | Ground for requesting the alteration or cancellation; |
| 3. | Opinions of the institution possessing the national core technology; |
| 4. | Other materials for reference in respect of the request for the alteration or cancellation of the national core technology. |
| (3) | Where any national core technology falls under any subparagraph of paragraph (1), the Minister of Trade, Industry and Energy may, after examining its appropriateness, select the national core technology deemed to require the alteration of its scope or content or the cancellation of its designation pursuant to Article 9 (3) of the Act. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
| (4) | Where the Minister of Trade, Industry and Energy intends to consult with the head of the competent central administrative agency pursuant to the latter part of Article 9 (3) of the Act, he/she shall provide the materials referred to in each subparagraph of paragraph (2) to the head of the competent central administrative agency. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 13 (Statement of Opinion by Interested Persons) |
If requested by any interested person under Article 9 (5) of the Act, the Committee shall grant him/her an opportunity to state his/her opinion either at the Committee in person or in a written document (including an electronic document). <Amended by Presidential Decree No. 26211, Apr. 28, 2015>
| Article 13-2 (Application for Prior Determination, etc. of National Core Technology) |
| (1) | The institution possessing any industrial technology which intends to apply for determination on whether such technology amounts to national core technology pursuant to Article 9 (6) of the Act shall submit such a written application for prior determination of national core technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Materials concerning the characteristics, use and performance of the relevant technology; |
| 2. | Materials concerning the market size and the competitiveness level of the related products using the relevant technology; |
| 3. | Documents determined and publicly announced by the Minister of Trade, Industry and Energy necessary for determining national core technology. |
| (2) | Upon receiving an application under paragraph (1), the Minister of Trade, Industry and Energy shall determine whether the relevant technology amounts to national core technology, and notify the applicant in a written document (including an electronic document) of the result of determination within 15 days from the date of receipt of the application: Provided, That where a technology examination is additionally necessary with respect to the technology for which an application for determination has been made, a period necessary for the technology examination shall not be included in calculating the period referred to in the main sentence. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
[This Article Newly Inserted by Presidential Decree No. 23541, Jan. 25, 2012]
| Article 14 (Protective Measures for National Core Technology) |
Where an institution possessing industrial technology holds and manages any national core technology, the head of that institution possessing industrial technology shall take each of the protective measures, pursuant to Article 10 (2) of the Act: | 1. | Granting a protection grade to the national core technology, and establishment of security and management regulations thereon; |
| 2. | Designation of a person in charge of management of the national core technology, and a protective zone therefor; |
| 3. | Security of communications facilities and means in a protective zone for the national core technology; |
| 4. | Protection of materials concerning the process and result of processing of information related to the national core technology; |
| 5. | Providing security education for the personnel engaged in the research and development of the national core technology; |
| 6. | Establishment of a system for responses to divulgence accidents of the national core technology. |
| Article 15 (Application, etc. for Approval for Export of National Core Technology) |
| (1) | An institution possessing industrial technology which intends to obtain approval for export of any national core technology pursuant to Article 11 (1) of the Act shall submit such an application for approval for export of national core technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | A contract on sale or transfer of the national core technology (including a provisional contract thereon); |
| 2. | Matters concerning the purchaser of the national core technology or a person intending to be transferred the national core technology; |
| 3. | Technical materials indicating the use and performance of the national core technology; |
| 4. | Conditions and methods for provision of the national core technology; |
| 5. | Materials concerning the market size and the competitiveness level of the related products using the national core technology; |
| 6. | Materials concerning the research and development expenses subsidized by the State. |
| (2) | Upon receiving the application under paragraph (1), the Minister of Trade, Industry and Energy shall refer it to the Committee for deliberation after consulting with the head of a relevant central administrative agency and notify the applicant of the result of the deliberation in a written document (including an electronic document), within 45 days from the date of receipt of the application: Provided, That where a technology examination is additionally necessary with respect to the national core technology for which an application for approval for export has been made, the period necessary for the technology examination shall not be included in calculating the period referred to in the main sentence. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| (3) | Upon granting approval pursuant to Article 11 (2) of the Act, the Minister of Trade, Industry and Energy may attach necessary conditions on the setting of the validity period of approval, the submission of export records, the submission of evidential documents, and so forth. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 16 (Reporting of Export of National Core Technology) |
| (1) | An institution possessing industrial technology which intends to report the export of any national core technology in advance pursuant to Article 11 (4) of the Act shall submit such a report of export of national core technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | A contract on sale or transfer of the national core technology (including a provisional contract thereon); |
| 2. | Matters concerning the purchaser of the national core technology or a person intending to be transferred the national core technology; |
| 3. | Technical materials indicating the use and performance of the national core technology; |
| 4. | Conditions and methods for provision of the national core technology; |
| 5. | Materials concerning the market size and the competitiveness level of the related products using the national core technology. |
| (2) | Upon receiving the report under paragraph (1), the Minister of Trade, Industry and Energy shall examine whether or not the export of the relevant national core technology would be likely to have a serious effect on national security and notify the reporter in a written document (including an electronic document) of the result of such examination within 15 days from the date of receipt of the report; if deemed that such export would be likely to have a serious effect, he/she may order the reporter to take a measure such as the suspension or prohibition of export of the national core technology, or reinstatement to original state via a resolution of the Committee after consulting with the head of a relevant central administrative agency, within 30 days from the date of notification: Provided, That where a technology examination is additionally necessary with respect to the national core technology, the period necessary for the technology examination shall not be included in calculating the period referred to in the main sentence. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 17 (Prior Examination of National Core Technology) |
| (1) | An institution possessing industrial technology that intends to apply for a prior examination of whether or not the national core technology subject to reporting pursuant to Article 11 (6) of the Act is related to the national security, shall submit such an application for prior examination of national core technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Matters concerning the purchaser of the national core technology or a person intending to be transferred the national core technology; |
| 2. | Technical materials indicating the use and performance of the national core technology; |
| 3. | Conditions and methods for provision of the national core technology; |
| 4. | Materials concerning the market size and the competitiveness level of the related products using the national core technology. |
| (2) | Upon receiving the application under paragraph (1), the Minister of Trade, Industry and Energy shall notify the applicant in a written document (including an electronic document) of the result of the decision within 15 days from the date of receipt of the application: Provided, That where a technology examination is additionally necessary with respect to the technology for which an application for prior examination has been made, the period necessary for the technology examination shall not be included in calculating the period referred to in the main sentence. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| (3) | The validity period of determination following prior examination of any national core technology under paragraph (2) shall be one year. |
| Article 18 (Notification, etc. of Export Suspension, etc. of National Core Technology) |
| (1) | Where the Minister of Trade, Industry and Energy issues an order of the export suspension, export prohibition, reinstatement to original state, etc. of any national core technology to the relevant institution possessing industrial technology pursuant to Article 11 (5) and (7) of the Act, he/she shall inform the head of the intelligence and investigation agency of such fact. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | Upon receiving the order under paragraph (1), the head of an institution processing industrial technology under paragraph (1) shall, after taking relevant measures, notify the Minister of Trade, Industry and Energy of the result thereof within 15 days. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | Where the Committee intends to hear the opinion of the institution possessing industrial technology related to the deliberation on the export suspension, export prohibition, reinstatement to original state, etc., of any national core technology pursuant to Article 11 (8) 2 of the Act, it shall notify the head of that institution possessing national core technology of the fact of request for attending a meeting, at least by five days before the date of the meeting. |
| Article 18-2 (Reporting, etc. of Overseas Merger and Acquisition, etc.) |
| (1) | "Foreign investment such as overseas merger and acquisition, joint venture, etc. which is determined by Presidential Decree" referred to in Article 11-2 (1) of the Act means any of the following cases: <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Where a foreigner, alone or with any of the following persons, holds 50/100 of the stocks or share (including a right to convert into stocks or share or to subscribe for stocks in the future; hereinafter referred to as "stocks, etc.") of an institution possessing industrial technology in possession of any national core technology (hereafter referred to an "institution in possession" in this Article) under Article 11-2 (1) of the Act (including cases of being in possession of less than 50/100 of stocks, etc., but, as a largest holder of stocks, etc., coming to be able to exercise controlling influence over either the appointment of executive officers or management of an institution in possession): |
| (a) | The spouse, a blood relative within 8th degree of kinship, or a relative by marriage within 4th degree of kinship of the foreigner; |
| (b) | A company in which the foreigner, either unilaterally or by a contract or agreement with a major stockholder or major right holder of share, can exercise controlling influence over major decision-making or business performance, such as organizational transformation or investment in new business; |
| (c) | A company in which the foreigner, either unilaterally or by a contract or agreement with a major stockholder or major right holder of share, can appoint and dismiss its representative or appoint at least 50/100 of executive officers; |
| 2. | Where the foreigner intends to manage the institution in possession in a manner of taking over, taking on lease, or being entrusted with the management of, the whole or major part of the business of the institution in possession; |
| 3. | Where the foreigner becomes able to exercise controlling influence over the appointment of a majority or more of executive officers by renting or contributing fund to the institution in possession. |
| 1. | An individual who has no nationality of the Republic of Korea; |
| 2. | A corporation established pursuant to the law of a foreign state; |
| 3. | An agency which vicariously conducts external economic cooperation affairs of a foreign government; |
| 4. | An international organization which deals with affairs concerning international finance, such as the International Bank for Reconstruction and Development, the International Finance Corporation, and the Asian Development Bank; |
| 5. | An international organization which deals with or vicariously conducts external investment affairs. |
| (3) | An institution possessing industrial technology which intends to report an overseas merger and acquisition, etc. pursuant to Article 11-2 (1) and (2) of the Act shall submit such a report on an overseas merger and acquisition, etc. related to any national core technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | A contract or written plan relating to the overseas merger and acquisition, etc. (only in case of making a report under Article 11-2 (1) of the Act); |
| 2. | The name, major stockholders status, sales amount, total assets amount and business details of the foreigner who intends to conduct the overseas merger and acquisition, etc.; |
| 3. | Materials concerning the details of the relevant overseas merger and acquisition, etc. and the current status of the related market; |
| 4. | Technical data concerning the purpose and performance of the national core technology; |
| 5. | Materials concerning the conditions and methods for the provision of the national core technology; |
| 6. | Materials concerning the market size and the competitiveness level of the related products of the related products using the national core technology. |
| (4) | Article 16 (2) shall apply mutatis mutandis to the reporting of an overseas merger and acquisition, etc. under paragraph (3). |
[This Article Newly Inserted by Presidential Decree No. 23541, Jan. 25, 2012]
| Article 18-3 (Notification, etc. of Suspension, Prohibition, Restoration to Original State, etc. of Overseas Merger and Acquisition, etc.) |
[This Article Newly Inserted by Presidential Decree No. 23541, Jan. 25, 2012]
| Article 18-4 (Prior Examination of Overseas Merger and Acquisition, etc.) |
| (1) | An institution possessing industrial technology who intends to apply for prior examination of whether or not the overseas merger and acquisition subject to reporting pursuant to Article 11-2 (4) of the Act is related to the national security shall submit such an application for a prior examination of an overseas merger and acquisition prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following documents: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | The name, major stockholders status, sales amount, total assets amount and business details of the foreigner who intends to conduct overseas merger and acquisition, etc.; |
| 2. | Materials concerning the details of the relevant overseas merger and acquisition, etc. and the current status of the related market; |
| 3. | Technical data concerning the purpose and performance of the national core technology; |
| 4. | Materials concerning the conditions and methods for the provision of the national core technology; |
| 5. | Materials concerning market size and the competitiveness level of the related products using the national core technology; |
| 6. | Other materials determined and publicly announced by the Minister of Trade, Industry and Energy, which are necessary for a prior examination of overseas merger and acquisition, etc. |
| (2) | Article 17 (2) and (3) shall apply mutatis mutandis to the notification of overseas merger and acquisition, etc. under paragraph (1). |
[This Article Newly Inserted by Presidential Decree No. 23541, Jan. 25, 2012]
| Article 19 (Compliance with Recommendation for Rectification) |
| (1) | Where the Minister of Trade, Industry and Energy intends to make a recommendation for rectification pursuant to Article 13 (1) of the Act, he/she shall make a recommendation in a written document specifying the content, compliance period, etc. of the recommendation for rectification. <Amended by Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | Where the head of an institution possessing industrial technology under paragraph (1) deems that, due to an extenuating circumstance, it is difficult to comply with the recommendation for rectification or it is impossible to complete measures within the period of compliance with the recommendation for rectification, he/she may explain such reason to the Minister of Trade, Industry and Energy or request the Minister of Trade, Industry and Energy to extend the period of compliance. <Amended by Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 19-2 (Procedures and Methods for Verification of Industrial Technology) |
| (1) | An institution possessing industrial technology which intends to application for verification as to whether or not any technology in its possession (hereafter referred to as “technology in possession” in this Article) falls under industrial technology pursuant to Article 14-3 (1) shall submit such an application for verification prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, together with the following subparagraphs: |
| 1. | A written explanation on the technology an application for verification of which is submitted; |
| 2. | Documents determined and publicly announced by the Minister of Trade, Industry and Energy, which are necessary for verification as to whether or not to fall under industrial technology. |
| (2) | Within 30 days from the date of receiving the application under paragraph (1), the Minister of Trade, Industry and Energy shall, after examining whether or not the technology in possession amounts to industrial technology, notify the applicant in writing (including an electronic document) of whether or not such technology is industrial technology. |
| (3) | Upon verifying that the technology in question is industrial technology pursuant to paragraph (1), the Minister of Trade, Industry and Energy shall issue the applicant a written verification prescribed by Ordinance of the Ministry of Trade, Industry and Energy. |
[This Article Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015]
| Article 20 (Reporting of Infringement of Industrial Technology) |
| (1) | A person who intends to report any infringement of industrial technology or request a necessary measure pursuant to Article 15 (1) of the Act shall submit such a report on infringement of industrial technology prescribed by Ordinance of the Ministry of Trade, Industry and Energy, to the Minister of Trade, Industry and Energy, and the head of the intelligence and investigation agency: Provided, That where necessary for urgent processing, that person shall first make a request verbally or through the information and communications network and, without delay, submit a report of infringement of industrial technology. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | Upon receiving the report under paragraph (1), the Minister of Trade, Industry and Energy shall consult with the head of the intelligence and investigation agency as to whether or not the content of the report falls under any subparagraph of Article 14 of the Act. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 21 (Establishment, etc. of Association for Industrial Technology Security) |
| (1) | Institutions possessing industrial technology which intend to establish the Association for Industrial Technology Security under Article 16 (1) of the Act (hereinafter referred to as "the Association") shall prepare its articles of association including the following matters and obtain authorization therefor from the Minister of Trade, Industry and Energy: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| 2. | Location of the principal office; |
| 3. | Matters concerning business affairs and execution thereof; |
| 4. | Matters concerning executive officers; |
| 5. | Matters concerning qualification for a member; |
| 6. | Matters concerning revision of the articles of association; |
| 7. | Other matters necessary for the operation of the Association. |
| (2) | To revise its articles of association under paragraph (1), the Association shall file an application for authorization for the revision thereof with the Minister of Trade, Industry and Energy within seven days from the ending date of the general meeting of employees at which a resolution on the revision is passed. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | If deemed necessary for the guidance and supervision of the business affair of the Association pursuant to Article 16 (6) of the Act, the Minister of Trade, Industry and Energy shall require the Association either to report the implementation status of its business affairs or to submit necessary materials. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 22 (Fact-Finding Surveys for Protection of Industrial Technology) |
| (1) | The Minister of Trade, Industry and Energy may conduct a fact-finding survey of the following matters pursuant to Article 17 (1) of the Act: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Current status of protection and management of the industrial technology possessed by the institution possessing industrial technology; |
| 2. | Current status of compliance with a recommendation for rectification under Article 13 (1) of the Act issued by the Minister of Trade, Industry and Energy; |
| 3. | Inspection of security vulnerabilities of the institution possessing industrial technology. |
| (2) | A fact-finding survey under paragraph (1) may be conducted every two years: Provided, That the Minister of Trade, Industry and Energy may additionally conduct a fact-finding survey if he/she deems that it is necessary for understanding the current status of national core technology protection or for designating, altering, or cancelling any national core technology. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | For a fact-finding survey, the Minister of Trade, Industry and Energy may conduct a written survey or a survey through the information and communications network, etc., or may require public officials under his/her jurisdiction to visit and make an investigation. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 23 (International Cooperation Projects) |
"Project prescribed by Presidential Decree" referred to in Article 18 (2) 4 of the Act means any of the following projects: <Amended by Presidential Decree No. 26211, Apr. 28, 2015> | 1. | A project concerning the international standardization and international joint research and development of industrial security technologies: |
| 2. | A project concerning exploration of overseas markets of industrial security technologies. |
| Article 24 (Providing Education on Industrial Technology Protection) |
The Minister of Trade, Industry and Energy shall provide education containing the following content at least twice every year to executive officers and employees of institutions possessing industrial technology, pursuant to 19 (2) of the Act: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015>
| 1. | Acts and subordinate statutes and protection guidelines concerning the prevention of divulgence of industrial technology, and the protection thereof; |
| 2. | Current status of the divulgence of industrial technology related to the prevention of divulgence of industrial technology, and the protection thereof; |
| 3. | Countermeasures such as responses to the divulgence of industrial technology; |
| 4. | Other matters deemed necessary for the prevention of divulgence of industrial technology, and the protection thereof. |
| Article 25 (Payment, Use, and Management of Contributions) |
| (1) | To pay contributions to an entity conducting an industrial security technology development project, etc. (hereinafter referred to as "project-managing institution") pursuant to Article 20 (3) of the Act, the head of a relevant central administrative agency and the head of the intelligence and investigation agency may pay them in a lump sum or installments, in consideration of the progress of the industrial security technology development project. |
| (2) | The project-managing institution in receipt of the contributions pursuant to paragraph (1) shall manage the contributions by establishing a separate account therefor. |
| (3) | The project-managing institution shall use contributions under paragraph (1) on the following expenses for the industrial security technology development project: |
| 1. | Personnel costs such as internal personnel expenses and external personnel expenses; |
| 2. | Direct costs such as expenses for research apparatus and facilities, expenses for materials, and expense for manufacturing a trial product; |
| 3. | Indirect costs such as indirect expenses, technology development reserve fund, and expenses for application for and registration of an intellectual property; |
| 4. | Cost for entrusted research and development. |
| (4) | Where the project-managing institution has used contributions under paragraph (1) for a purpose other than those under paragraph (3) without a justifiable ground, the head of a relevant central administrative agency and the head of the intelligence and investigation agency may recover all or part of such contributions. |
| Article 26 (Rewards for Industrial Technology Protection) |
| (1) | A person to receive a reward and payment of a monetary reward under Article 21 (1) of the Act shall be selected from among the persons who file an application in response to a public announcement or the persons recommended by the relevant agencies. |
| (2) | A person selected as one to receive payment of a monetary reward pursuant to paragraph (1) shall be paid a monetary reward not exceeding 100 million won, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013> |
| Article 27 (Request for Personal Protection, etc.) |
A person who intends to request personal protection, etc. pursuant to Article 21 (2) of the Act shall submit to the head of the intelligence and investigation agency a written request for personal protection, etc. prescribed by Ordinance of the Ministry of Trade, Industry and Energy: Provided, That where necessary for urgent processing, that person shall first make a request verbally or through the information and communications network and, without delay, submit a written request for personal protection, etc. <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 24442, Mar. 23, 2013>
| Article 28 (Support for Institutions Possessing Industrial Technology, etc.) |
| (1) | To provide support under each subparagraph of Article 22 (1) of the Act, the head of a relevant central administrative agency and the head of the intelligence and investigation agency shall formulate a plan for such support. <Amended by Presidential Decree No. 23541, Jan. 25, 2012> |
| (2) | An institution possessing industrial technology which intends to be provided with support under Article 22 (1) of the Act shall apply for support by the end of September every year, in accordance with the procedures determined and publicly announced by the head of a relevant central administrative agency and the head of the intelligence and investigation agency, respectively. |
| Article 29 (Composition and Operation of Industrial Technology Dispute Conciliation Committee) |
| (1) | The Industrial Technology Dispute Conciliation Committee under Article 23 (1) of the Act (hereinafter referred to as "the Conciliation Committee") shall have at least five civil members. |
| (2) | The Chairperson of the Conciliation Committee shall convene and preside over meetings thereof. |
| (3) | To convene a meeting, the Chairperson of the Conciliation Committee shall notify each member in writing of the date, location, and agenda items of the meeting, by seven days before the date of the meeting: Provided, That, where any urgent circumstance or any other extenuating circumstance exists, the Chairperson may make a verbal notification by the date immediately before the date of the meeting. |
| (4) | Deleted. <by Presidential Decree No. 26211, Apr. 28, 2015> |
| (5) | A meeting of the Conciliation Committee shall be held in camera: Provided, That in any case falling under Article 27 (2) of the Act, the parties to a dispute or persons of interest may be permitted to sit in on a meeting. |
| (6) | The persons concerned attending the Conciliation Committee may be paid allowances and travel expenses, within budgetary limits: Provided, That no allowances and travel expenses shall be paid to a public official who attends the meeting in direct relation to his/her assigned duties. |
| (7) | Except as provided for in paragraphs (1) through (6), matters necessary for the operation of the Conciliation Committee shall be determined by the Chairperson of the Conciliation Committee via a resolution thereof. |
| Article 30 (Composition and Operation of Conciliation Panel) |
| (1) | The conciliation panel under Article 24 (1) of the Act (hereinafter referred to as "conciliation panel") shall be composed of the persons designated by the Chairperson of the Conciliation Committee, from among the members of the Conciliation Committee. |
| (2) | To convene a meeting, the Chairperson of the Conciliation Committee shall notify each member in writing of the date, location, and agenda items of the meeting, by seven days before the date of the meeting: Provided, That, where any urgent circumstance or any other extenuating circumstance exists, the Chairperson may make a verbal notification by the date immediately before the date of the meeting. |
| (3) | A meeting of the conciliation panel shall be held with the majority of the members, and shall pass resolutions with the concurrent vote of the majority of those present. |
| (4) | After examining a conciliation case, the conciliation panel shall prepare a proposal for conciliation and present it to the Conciliation Committee: Provided, That it shall not be presented where the conciliation panel has been entrusted with the case in question in its entirety by the Conciliation Committee pursuant to Article 24 (2) of the Act. |
| (5) | A meeting of the conciliation panel is held in camera. |
| Article 31 (Methods of Conciliation of Disputes) |
| (1) | Upon receiving an application for conciliation of a dispute pursuant to Article 26 (1) of the Act, the Conciliation Committee may inform the parties to the dispute in writing, of the content of such application, and recommend them to reach an agreement before conciliation. |
| (2) | Where deemed necessary, the Conciliation Committee may deliberate on any conciliation case by separating it from other conciliation case or combining it with other conciliation case. |
| (3) | Where the Conciliation Committee decides to deliberate on any conciliation case, by either separating it from other conciliation case or combining it with other conciliation case pursuant to paragraph (2), the Chairperson of the Conciliation Committee shall inform the parties to the conciliation case in writing of such fact. |
| Article 32 (Procedures for Hearing Opinions) |
| (1) | To hear opinions pursuant to Article 27 (2) of the Act, the Conciliation Committee shall notify the date and place of the meeting and the grounds for requesting conciliation to the parties to the dispute or person for reference, at least by seven days before the date of the meeting. |
| (2) | Where a person who receives a notification under paragraph (1) is unable to attend a meeting of the Conciliation Committee due to any extenuating circumstance, he/she may present his/her opinion in a written document. |
| Article 33 (Protocol for Conciliation) |
| 2. | Name and Address of an applicant for conciliation; |
| 3. | Outline of the dispute referred for conciliation: |
| (a) | Personal matters of the parties; |
| (b) | Outline of the divulged industrial technology; |
| (c) | Details of the dispute; |
| (d) | Issues of the conciliation (stating the opinions of the parties thereto); |
| 4. | Result of the conciliation (stating the results by issue of the conciliation). |
| (1) | A person who intends to apply for the conciliation of a dispute related to the divulgence of industrial technology pursuant to Article 26 (1) of the Act shall pay a fee under Article 32 (1) of the Act either by means of revenue stamp, or by means of electronic currency or electronic settlement, etc. through the information and communications network. <Amended by Presidential Decree No. 22854, Apr. 5, 2011> |
| (2) | No fees under paragraph (1) shall be refunded: Provided, That they shall be refunded where procedures for the conciliation of a dispute are revoked before the beginning of the procedures therefor. |
| Article 35 (Detailed Rules of Conciliation of Disputes) |
Except as prescribed in this Decree, matters necessary for the operation of the Conciliation Committee or for the conciliation of disputes shall be determined by the Chairperson of the Conciliation Committee via a resolution thereof.
| Article 36 (Entrustment of Affairs) |
| (1) | The Minister of Trade, Industry and Energy shall entrust the following matters to the Association pursuant to Article 33 of the Act: <Amended by Presidential Decree No. 20678, Feb. 29, 2008; Presidential Decree No. 23541, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 26211, Apr. 28, 2015> |
| (a) | Receipt of applications for verification of industrial technology; |
| (b) | Technical examination; |
| (c) | Notification of the result of examination; |
| (d) | Sending of a written verification. |
| (2) | Upon entrusting affairs pursuant to paragraph (1), the Minister of Trade, Industry and Energy shall publicly announce the name, representative and location of the entrusted agency and the content of entrusted affairs. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
| Article 36-2 (Re-Examination of Regulation) |
| (1) | The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every two years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every second year) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 26211, Apr. 28, 2015> |
| 1. | Documents for reporting overseas merger and acquisition, etc. under Article 18-2 (3): January 1, 2015; |
| 2. | Documents for applying for a prior examination under Article 18-4 (1): January 1, 2015. |
| (2) | The Minister of Trade, Industry and Energy shall examine the appropriateness of imposition standards for administrative fines under Article 37 and the attached Table, counting from April 1, 2015 (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements. <Newly Inserted by Presidential Decree No. 26211, Apr. 28, 2015> |
[This Article Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014]
| Article 37 (Imposition Standards for Administrative Fines) |
[This Article Wholly Amended by Presidential Decree No. 21440, Apr. 21, 2009]
ADDENDUM
This Decree shall enter into force on April 28, 2007
ADDENDA <Presidential Decree No. 20678, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Presidential Decree No. 21440, Apr. 21, 2009>
This Decree shall enter into force on May 1, 2009.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2010. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22854, Apr. 5, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measure concerning Administrative Fines)
| (1) | Where applying imposition standards for administrative fines to any violations committed before this Decree enters into force, the previous provisions shall govern notwithstanding the amended provisions of attached Table. |
| (2) | The impositions of an administrative fine due to a violation committed before this Decree enters into force shall not be taken into account in calculating the number of violations under the amended provisions of attached Table. |
ADDENDA <Presidential Decree No. 23541, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012: Provided, That the amended provisions of Article 5 (1) shall enter into force on December 3, 2013. Article 2 (Transitional Measures concerning Members of Specialized Committees)
The members of specialized committees who have been appointed or commissioned pursuant to the previous provisions at the time when this Act enters into force shall be deemed appointed or commissioned pursuant to the amended provisions of subparagraphs of Article 7 (4).
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 12 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, among the Presidential Decrees amended pursuant to Article 5 of the Addenda, the amended parts of the Presidential Decrees which have been promulgated before this Decree enters into force and the enforcement dates of which have not yet arrived shall enter into force on the enforcement dates of the relevant Presidential Decrees respectively.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 25840, Dec. 9, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2015.
Articles 2 through 16 Omitted.
ADDENDA <Presidential Decree No. 26211, Apr. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 29, 2015.
Article 2 (Transitional Measures concerning Members of Specialized Committees)
The members of specialized committees who have been appointed or commissioned pursuant to the previous provisions at the time when this Act enters into force shall be deemed as if they had been appointed or commissioned by the Chairpersons of the Committee pursuant to the amended provisions of Article 7 (4). Article 3 (Transitional Measures concerning Secretary Members of Specialized Committees)
The secretary members of specialized committees designated pursuant to the previous provisions at the time when this Act enters into force shall be deemed as if they had been secretary members designated by the Chairpersons of the Committee pursuant to the amended provisions of Article 7 (6).
ADDENDA <Presidential Decree No. 28212, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.