ENFORCEMENT DECREE OF THE ACT ON DESIGNATION AND MANAGEMENT OF FREE TRADE ZONES
Wholly Amended by Presidential Decree No. 18437, jun. 22, 2004
Amended by Presidential Decree No. 19154, Nov. 30, 2005
Presidential Decree No. 19593, jun. 30, 2006
Presidential Decree No. 20105, jun. 26, 2007
Presidential Decree No. 20331, Oct. 23, 2007
Presidential Decree No. 20398, Nov. 30, 2007
Presidential Decree No. 20678, Feb. 29, 2008
Presidential Decree No. 21185, Dec. 24, 2008
Presidential Decree No. 21215, Dec. 31, 2008
Presidential Decree No. 21367, Mar. 25, 2009
Presidential Decree No. 21641, Jul. 27, 2009
Presidential Decree No. 21763, Oct. 1, 2009
Presidential Decree No. 22075, Mar. 15, 2010
Presidential Decree No. 22151, May 4, 2010
Presidential Decree No. 22220, jun. 28, 2010
Presidential Decree No. 22269, Jul. 12, 2010
Presidential Decree No. 23073, Aug. 11, 2011
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 25050, Dec. 30, 2013
Presidential Decree No. 25260, Mar. 18, 2014
Presidential Decree No. 25495, Jul. 21, 2014
Presidential Decree No. 25532, Aug. 6, 2014
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 25840, Dec. 9, 2014
Presidential Decree No. 25985, Jan. 6, 2015
Presidential Decree No. 27386, Jul. 26, 2016
Presidential Decree No. 28212, Jul. 26, 2017
CHAPTER I GENERAL PROVISIONS
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
CHAPTER II DESIGNATION, ETC. OF FREE TRADE ZONES
| Article 2 (Designation of Free Trade Zones) |
| (1) | Any person who intends to request designation of a free trade zone in accordance with the former part of Article 4 (1) of the Act on Designation and Management of Free Trade Zones (hereinafter referred to as the "Act") shall submit a master plan for the free trade zone provided for in paragraph (2) of the same Article (hereinafter referred to as "master plan for a free trade zone") and the results of consultations he/she holds with the heads of relevant central administrative agencies, the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, or a Do Governor, or the Governor of a Special Self-Governing Province (hereinafter referred to as "Mayor/Do Governor") to the Minister of Trade, Industry and Energy: Provided, That if any person requests designation of an area, the development of which has already been completed or is in progress, he/she may omit the matters prescribed by the operational guidelines of free trade zones pursuant to Article 28-2 (1) of the Act (hereinafter referred to as "operation guidelines of free trade zones") among the matters referred to in paragraph (2). <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | Master plans for free trade zones shall contain each of the following: |
| 1. | The name, location, boundary, area and location map of a free trade zone; |
| 2. | The operator of a development project, the period and methods of development; |
| 3. | An occupancy management plan detailing the goals of and direction-setting for operating a free trade zone, types of business to be induced thereinto, occupancy priority, standards for selecting enterprises to move therein, a plan for attracting enterprises to the zone and a plan for occupant enterprises (including a drawing thereof), etc.; |
| 4. | A land utilization plan, a plan for installing major support facilities (including a drawing thereof) and a plan for building infrastructure such as roads, harbors, water-supply facilities, etc.; |
| 5. | Estimated costs required following designation and a financing plan; |
| 6. | Analysis of economic effects reaped from the designation of a free trade zone, which include prospects for foreign investment, trade, international logistics and the growth of domestic employment; |
| 7. | Current facilities installed in a zone and the cargo-handling capacity of a zone; |
| 8. | Details of land, buildings, and other goods to be expropriated or used and the rights thereof, if any; |
| 9. | Existing occupant enterprises in the relevant zone and measures to deal with them; |
| 11. | A plan for installing control facilities, such as entrance ways, fencing, etc.; |
| 12. | If not less than two persons are commissioned or entrusted with the authority to manage a free trade zone by the administrative authority provided for in Article 8 (1) of the Act (hereinafter referred to as "administrative authority"), the scope of the jurisdiction over which the persons commissioned or entrusted with the authority exercise and ways of defraying costs incurred in installing control facilities. |
| (3) | "The Minister of Strategy and Finance, the Minister of Land, Infrastructure and Transport, and the heads of other relevant central administrative agencies determined by Presidential Decree" in the main sentence of Article 4 (3) of the Act means the Minister of Strategy and Finance, the Minister of Foreign Affairs, the Minister of the Interior and Safety, the Minister for Agriculture, Food and Rural Affairs, the Minister of Environment, the Minister of Land, Infrastructure and Transport, the Minister of Oceans and Fisheries, the Minister of SMEs and Startups, and the Commissioner of Korea Customs Service. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28212, Jul. 26, 2017> |
| (4) | If a Mayor/Do Governor allows the general public to inspect matters concerning the designation of any free trade zone in accordance with Article 4 (5) of the Act, he/she shall publish without delay matters necessary for public inspection in an effective manner, including posting methods of inspecting such matters, the inspection period and other necessary matters concerning their inspection on the Internet home page. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 3 (Publication of Designation of Free Trade Zones) |
"Other matters prescribed by Presidential Decree" in Article 4 (4) of the Act means the name, the location map and the land utilization plan of the relevant free trade zone. [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 4 (Designation Requirements) |
| (1) | "Standards prescribed by Presidential Decree, including cargo handling capacity, etc." in the part other than the items of subparagraph 1 of Article 5 of the Act means the standards categorized as follows: |
| 1. | An industrial complex: An area located adjacent to an airport or a harbor, making it easy to ship cargo out of Korea to foreign countries or into Korea from foreign countries; |
| 2. | An airport: To meet each of the following requirements: |
| (a) | It is required to have regular international flight routes established and to be capable of dealing with not less than 300,000 tons of cargo annually; |
| (b) | It is required to have the area and its hinterland, including a logistics terminal, with their total area exceeding 300,000 square meters, which are used to store, exhibit, sort, etc. air cargo and the hinterland is required to be linked with the relevant airport or to be connected with it by an exclusive road, etc., thereby making it possible to ensure free movement of goods between them and to supplement the airport's logistic functions of storing, packaging, mixing, repairing and processing, etc. of cargo; |
| 3. | A harbor: To meet each of the following requirements: |
| (a) | It is required to have regular international container shipping lanes opened for it, thereby making it possible to load and unload cargo of not less than ten million tons annually; |
| (b) | It is required to have piers exclusively used by container ships of not less than 30,000 tons; |
| (c) | It is required to have the land area and its hinterland provided for in attached Table 1 of the Enforcement Decree of the Harbor Act, with their total area exceeding 500,000 square meters, and the hinterland is required to be linked with the relevant harbor or to be connected with it by an exclusive road, etc., thereby making it possible to ensure free movement of goods between them and to supplement the harbors logistic functions of storing, packaging, mixing, repairing and processing, etc. of cargo; |
| 4. | A logistics complex and a logistics terminal: To meet each of the following requirements: |
| (a) | They are required to have facilities and equipment making it possible to handle cargo of not less than ten million tons annually; |
| (b) | They are required to ship not less than 50/100 of goods into Korea out of foreign countries and to ship or are expected to ship not less than 20/100 of goods, which have been shipped into Korea, out of Korea into foreign countries; |
| (c) | A logistics complex or terminal is required to be at least 500,000 square meters in its area. |
| (2) | "Facilities prescribed by Presidential Decree" in subparagraph 3 of Article 5 of the Act means each of the following facilities: |
| 1. | Fences, gates, guard posts and other facilities which are needed to prevent foreign goods from being illegally shipped out of any free trade zone or from being stolen and to satisfy standards prescribed and published by the Commissioner of the Korea Customs Service regarding the area, location, etc.; |
| 2. | Facilities which are inspection places where the inspection of goods shipped out of or into any free trade zone is conducted and satisfy standards prescribed and published by the Commissioner of the Korea Customs Service regarding the area, location, etc. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 5 (Modifications of Insignificant Matters of Free Trade Zones) |
"Any change in insignificant matters prescribed by Presidential Decree, including a partial change in any area, etc." in the provisos to Articles 6 (3) and 7 (6) of the Act means any of the following cases: | 1. | Where an area not exceeding 1/10 of the area of the relevant free trade zone is expanded or reduced, or the location and boundary of such area are changed; |
| 2. | Where any access road, embankment or bridge is reconstructed after being changed and any free trade zone is reduced or expanded in its area, or any of its boundaries is changed on the grounds of a loss of land due to a natural disaster. |
[This Article Wholly Amended by Presidential Decree No. 23032, July 15, 2011]
CHAPTER III ADMINISTRATION OF AND MOVING INTO FREE TRADE ZONES
| Article 6 (Categorization of Districts) |
| (1) | "Other districts prescribed by Presidential Degree" in Article 9 of the Act means a public facility district and a training and educational facility district. |
| (2) | When the administrative authority categorizes districts of any free trade zone in accordance with Article 9 of the Act, it shall publish the categorization of such districts in an effective manner, including posting the categorization on its Internet homepage. |
[This Article Wholly Amended by Presidential Decree No. 23032, July 15, 2011]
| Article 7 (Occupancy Requirements) |
| (1) | "A person in whose case the relative importance of exports, etc. meets the standards determined by Presidential Decree" as referred to in Article 10 (1) 1 of the Act means a person for whom the period, when the amount of export is at least 50/100 (30/100 in cases of small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises, and 40/100 in cases of middle-standing enterprises referred to in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises) of the total sales during the past three years from the date on which an application for an occupancy contract is filed (from the business day in cases of occupant enterprises), is consecutively at least one year. <Amended by Presidential Decree No. 25260, Mar. 18, 2014; Presidential Decree No. 25495, Jul. 21, 2014; Presidential Decree No. 27386, Jul. 26, 2016> |
| (3) | "A person in whose case the relative importance of exports, etc. meets the standards determined by Presidential Decree" as referred to in Article 10 (1) 3 of the Act means a person for whom the period, when the amount of export exceeds five percent of the total sales during the past three years from the date on which an application for occupancy contract is filed (from the business day in cases of occupant enterprises), is consecutively at least one year. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (4) | "A person in whose case the relative importance of export and import transactions, etc. meets the standards determined by Presidential Decree" as referred to in Article 10 (1) 4 of the Act means a person for whom the period, when the amount of export and import transactions exceeds 50/100 (30/100 in cases of small and medium enterprises referred to in Article 2 of the Framework Act on Small and Medium Enterprises, and 40/100 in cases of middle-standing enterprises referred to in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises) of the total sales during the past three years from the date on which an application for occupancy contract is filed (from the business day in cases of occupant enterprises), is consecutively at least one year. <Amended by Presidential Decree No. 25260, Mar. 18, 2014; Presidential Decree No. 25495, Jul. 21, 2014; Presidential Decree No. 27386, Jul. 26, 2016> |
| 1. | The multi-purpose logistics business, including the business of brokering international shipping, executing transactions of international ships and packaging, repairing, processing or assembling goods, etc.; |
| 2. | The international logistics business, including the business of repairing, upgrading, and assembling of ships and aircraft (including any equipment required for the operation of ships and aircraft); |
| 3. | The business of furnishing ship and aircraft supplies, including the business of supplying fuel, potable water, onboard meals, and in-flight meals; |
| 4. | The business of developing logistics facilities and rental business. |
| 1. | The financial business; |
| 2. | The insurance business; |
| 3. | The customs-clearance brokerage; |
| 4. | The tax consulting business; |
| 5. | The accounting business; |
| 8. | The educational and training business; |
| 9. | The oil sale business; |
| 10. | The waste collection, transport and disposal business; |
| 11. | The information processing business; |
| 12. | The restaurant business; |
| 13. | The food sale business; |
| 14. | The accommodation business; |
| 15. | The bathhouse business; |
| 16. | The laundry business; |
| 17. | The haircutting business and the beautician business; |
| 18. | Other types of business determined by the operation guidelines of free trade zones necessary for supporting the business of occupant enterprises. |
| (7) | "Public institution prescribed by Presidential Decree" in Article 10 (1) 7 of the Act means any of the following public institutions: |
| 1. | Local governments and corporations fully financed or funded by local governments; |
| 7. | Deleted; <by Presidential Decree No. 23073, Aug. 11, 2011> |
[This Article Wholly Amended by Presidential Decree No. 23032, July 15, 2011]
| Article 8 (Conclusion, etc. of Occupancy Contracts) |
| (1) | Any person who intends to enter into an occupancy contract or a modified occupancy contract in accordance with Article 11 (1) of the Act shall file an application for such occupancy (modification of occupancy) contract prescribed by Ordinance of the Ministry of Trade, Industry and Energy, accompanied by a document attesting that the person falls under any subparagraph of Article 10 (1) of the Act, with the administrative authority having jurisdiction over the relevant area. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | Cases requiring a modified contract pursuant to the latter part of Article 11 (1) of the Act means cases where it is intended to change the type of business (based on the Korean Standard Industrial Classification at 5-digit level, which is published by the Commissioner of the National Statistical Office under Article 22 (1) of the Statistics Act) or an area. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (3) | Upon receipt of an application for an occupancy contract or a modified occupancy contract filed under Article 11 (1) of the Act, the administrative authority shall decide whether to enter into such occupancy contract or modified occupancy contract within seven days from the date on which it receives the application and notify the applicant of his/her decision. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (4) | If the administrative authority gives priority to entering into any occupancy contract in accordance with Article 11 (2) of the Act, it shall determine the standards for priority order in the operation guidelines of free trade zones, taking into account the amount and the ratio of foreign investment and the amount and the ratio of exports, etc. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 8-2 (Reporting on Commencement of Business) |
| (1) | A person who intends to report the commencement of his/her business pursuant to Article 14 (4) of the Act shall submit a report on commencement of business, accompanied by documents proving the commencement of business, such as an evidentiary document on purchase of facilities according to the business plan to the administrative authority within two months from the date he/she has installed facilities. |
| (2) | In receipt of a report on commencement of business pursuant to paragraph (1), if the relevant facilities conform to the business plan, the authority shall keep record thereof in the administrative ledger and shall issue a letter of confirmation to the relevant reporter within three days from the date of receipt of the said report. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 9 (Disposal of Land, Factories, etc. for which Occupancy Contract is Terminated) |
| (1) | If any person whose occupancy contract is terminated in accordance with Article 15 (1) or (2) of the Act (hereinafter in this Article referred to as "person whose occupancy contract is terminated") intends to dispose of his/her land, factory, buildings and facilities (hereinafter referred to as "factory, etc.") in any free trade zone pursuant to Article 15 (5), the person shall submit a disposal plan, accompanied by documents prescribed by Ordinance of the Ministry of Trade, Industry and Energy to the administrative authority. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | Every person whose occupancy contract is terminated shall dispose of his/her land, factory, etc. to any other person eligible to move into a free trade zone within six months from the date on which his/her occupancy contract is terminated: Provided, That if an auction and procedures prescribed by the provisions of other Acts are in progress for the disposal of the land, factory, etc., the progress period of the relevant procedures shall not be included. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (3) | If any person whose occupancy contract is terminated fails to dispose of his/her land, factory, etc. within the period referred to in paragraph (2), he/she shall file an application for disposal with the administrative authority, along with documents prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| (4) | In receipt of an application for disposal filed under paragraph (3), the administrative authority shall publish matters concerning the sale of land, a factory, etc. in an effective manner, including posting such matters concerning their sale on the Internet home page, to select a transferee. |
| (5) | Any prospective transferor shall, on the recommendation of a prospective transferee by the administrative authority, promptly enter into negotiations on the transfer of land, a factory, etc. and conclude a purchase and sale contract within six months from the date on which the prospective transferor receives such recommendation. |
| (6) | Any person who acquires by transfer land, a factory, etc. under paragraphs (2) and (5) shall enter into an occupancy contract or a modified occupancy contract within three months from the date he/she acquires by transfer such land, factory, etc. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 10 (Notification of Occupancy Contracts, etc.) |
| (1) | If the administrative authority notifies the head of a customhouse in charge of the free trade zone (hereinafter referred to as "head of a customhouse") of the matters concerning conclusion or termination of any occupancy contract (including any modification of occupancy contract; hereafter the same shall apply in this paragraph) in accordance with Article 16 of the Act, it shall attach the copies of documents verifying the conclusion or termination of such occupancy contract to such notification. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | Upon receipt of the notification referred to in paragraph (1), the head of a customhouse may request the administrative authority to submit data within the scope of documents that he/she has received from the relevant occupant enterprise if deemed necessary for the customhouse to manage goods. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 11 (Rental or Sale of State-Owned Land, Factories, etc.) |
| (1) | When the administrative authority sells or rents any State-owned land, factory, etc. to any occupant enterprise, etc. in accordance with Article 17 (1) of the Act, it shall sell or rent such state-owned land, factory, etc. preferentially to any person who has entered into an occupancy contract in accordance with Article 11 (2) of the Act. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | The administrative authority may impose conditions to guarantee the execution of the contract if deemed in selling or renting any land, factory, etc. in accordance with paragraph (1), |
| (3) | When the administrative authority consults with the Minister of Strategy and Finance about the sale prices or rents of any land, factory, etc. in accordance with Article 17 (2) of the Act, it shall attach each of the following documents: Provided, That if documents referred to in subparagraph 1 or 2 are not available, they may be replaced by a written appraisal statement issued by a certified appraisal institution: |
| 1. | A statement detailing financial resources invested to the relevant land, factory, etc.; |
| 2. | A price-calculation record; |
| 3. | A map of the relevant factory, etc. to be sold or rented. |
| (4) | In holding consultation pursuant to paragraph (3), the Minister of Strategy and Finance shall confirm the cadastral map of the land to be sold or rented, through joint use of administrative information under Article 36 (1) of the Electronic Government Act: Provided, That it is impractical to confirm the cadastral map of the relevant land as it is being developed, the Minister may have the administrative authority to submit the drawing of the relevant land development plan. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 12 (Deferred Payment of Purchase Price and Payment in Installments) |
| (1) | When any state-owned land, factory, etc. located in a free trade zone is sold in accordance with Article 19 (1) of the Act, if any purchaser of the land, factory, etc. has difficulty in paying the purchase price thereof by the payment settlement date on the grounds described in any subparagraph of Article 54 (2) of the Enforcement Decree of the State Property Act or on any other ground prescribed by Ordinance of the Ministry of Trade, Industry and Energy, the administrative authority may extend the payment settlement date for the land, factory, etc. within the limit of six months. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | If the sale price of any state-owned land, factory, etc. located in any free trade zone under Article 19 (1) of the Act is exceeding one billion won, the administrative authority may have the purchase price paid in equal installments within the limit of five years. |
| (3) | The interest to be accrued when extending the payment settlement date under paragraph (1) shall be the amount computed by multiplying the remaining amount after deducting the already-paid amount from the sale price of the relevant land, factory, etc, by the growth rate of the producer price index during the period from the date of sale to the settlement date of the purchase price, but it may not exceed six percent per annum. |
| (4) | The interest to be accrued in making installment payments under paragraph (2) shall be the amount computed by multiplying the remaining amount after deducting the amount already paid from the sale price of the relevant land, factory, etc. by the growth rate of the producer price index during the period from the date of sale or the date following the immediately preceding installment payment date to the relevant installment payment date, but it may not exceed six percent per annum. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 13 (Notices Demanding Payment of Rents, etc. and Dispositions Taken to Collect Rents in Arrears) |
| (2) | The administrative authority shall serve a notice demanding the payment on any person who defaults in the payment of rents of any land, factory, etc. and in the payment of his/her share of maintenance costs for joint facilities within 15 days from the date on which the payment deadline lapses. In such cases, the administrative authority shall set a payment deadline within 15 days from the date on which it serves such notice. |
| (3) | If no arrear is paid after the lapse of the payment deadline referred to in the latter part of paragraph (2), the administrative authority shall reset the payment deadline not exceeding one month and serve a notice demanding the payment of such arrears on the delinquent. |
| (4) | When the administrative authority serves a notice demanding the payment of arrears in accordance with paragraph (3), the authority shall also notify the purport that the relevant defaulter's property may be seized. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 14 (Construction of Factories, etc.) |
When the administrative authority performs the clerical functions that belong to the authority of a Mayor/Do Governor or the head of a Si/Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply), which is provided for in the Building Act, in accordance with Article 23 (3) of the Act, he/she shall notify without delay the competent Mayor/Do Governor or the head of the competent Si/Gun/Gu of details of such clerical functions performed. [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 15 (Rental or Transfer of Factories, etc. that Uses Foreign Goods, etc.) |
| (1) | Any person who intends to rent part of any factory, etc. constructed using any of the following goods (hereinafter referred to as "foreign goods, etc.) pursuant to the proviso to Article 25 (7) of the Act to any assistant enterprise shall file an application for rental permit with the head of the customshouse: <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | In granting a rental permit in accordance with the proviso to Article 25 (7) of the Act, the head of the customshouse shall do so within the scope of not more than 40/100 of the total floor area of the relevant factory, etc. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 16 (Disposal of Land, Factories, etc. prior to Completion of their Construction) |
Article 9 (4) through (6) shall apply mutatis mutandis to cases where the administrative authority selects a person to acquire by transfer any land, factory, etc. in accordance with Article 25 (2) of the Act. [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 16-2 (Interest and Costs) |
"Interest and costs prescribed by Presidential Decree" in the main sentence of and proviso to Article 25 (5) of the Act means the following interest and costs: | 1. | The amount calculated by multiplying the purchase price of the relevant land to be transferred in a free trade zone by the total producer price index during the period from the date of purchase to the date of transfer; |
| 2. | Acquisition tax for acquisition of the relevant land to be transferred in a free trade zone, and other taxes and public charges: Provided, That any tax additionally collected on the ground attributable to the person who acquires the land in the free trade zone shall be excluded; |
| 3. | Costs spent for maintaining, preserving or improving the land to be transferred in a free trade zone. |
[This Article Newly Inserted by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 17 (Disposal of Land, Factories, etc. Acquired through Auction, etc.) |
| (1) | Any person who intends to enter into an occupancy contract (including a modified occupancy contract; hereafter in this paragraph the same shall apply) in accordance with the main sentence of Article 26 (1) 1 of the Act shall file an application for an occupancy contract within three months from the date on which he/she acquires the relevant land, factory, etc. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| (2) | Article 9 shall apply mutatis mutandis to cases where the administrative authority selects a person to acquire by transfer the relevant land, factory, etc. in accordance with Article 26 (1) 2 of the Act. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 18 (Maintenance Costs of Joint Facilities) |
| (1) | Maintenance costs of joint facilities provided for in Article 28 of the Act shall be an amount calculated based on the amount of earnings accruing from the use of such joint facilities by each occupant enterprise: Provided, That if it is difficult to calculate the amount of earnings by each occupant enterprise, the amount of such earnings may be determined at an amount calculated according to the standards the administrative authority publishes, comprehensively taking into account the floor areas of the buildings occupied by occupant enterprises, the areas of their sites and the numbers of their employees. |
| (2) | The maintenance costs of joint facilities referred to in paragraph (1) shall be levied on a monthly basis: Provided, That such costs may be levied quarterly if deemed necessary by the administrative authority. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 18-2 (Details of Operation Guidelines of Free Trade Zones) |
| (1) | The following matters shall be included in the operation guidelines of free trade zones: |
| 1. | Matters that can be omitted in the master plan for a free trade zone, pursuant to the proviso to Article 2 (1); |
| 2. | Matters concerning standards, etc. for subsidization of free trade zones and prospective sites for free trade zones under Article 7 of the Act; |
| 3. | Scope of types of business supporting business of occupant enterprises pursuant to Article 7 (6) 18; |
| 4. | Matters concerning standards for priority order pursuant to Article 8 (4); |
| 5. | Other matters necessary for operation of free trade zones. |
| (2) | Where the Ministry of Trade, Industry and Energy intends to establish or modify the operation guidelines of free trade zones, he/she shall consult with the head of the relevant central administrative agency and the relevant Mayor/Do Governor. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 23032, Jul. 15, 2011]
CHAPTER IV SHIPMENT OF GOODS INTO OR OUT OF FREE TRADE ZONES AND CONTROL THEROF, ETC.
| Article 19 (Reporting on Shipment of Goods out of Korea) |
Any person who intends to file a report on the shipment of goods out of Korea in accordance with Article 30 of the Act shall file a report stating each of the following matters to the head of the customshouse on the shipment of goods out of Korea: | 1. | The name, standard size, quantity, price and item classification number of the goods; |
| 2. | The kind, number and article number of the packaging; |
| 3. | The destination, the country of origin and the country of loading; |
| 4. | The business operator registration number and customs clearance code; |
| 5. | If supplies used by any foreign trade ship or foreign trade aircraft are furnished, data concerning the type, name or registered mark, nationality, the net tonnage of the relevant ship or the weight of the relevant aircraft, the number of scheduled days of navigation and the number of passengers and crew members, etc., all of which provide a basis for assessing the proper quantity of supplies needed for the navigations by the relevant ship and the relevant aircraft. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 20 (Goods, etc. Not Subject to Confirmation of Shipment of Domestic Goods, etc. out of Free Trade Zones) |
| (1) | "Vehicles accessing and baggage carried by accessible persons and other goods prescribed by Presidential Decree" in the proviso to Article 31 of the Act means any of the following goods: |
| 2. | Personal effects carried by accessible persons; |
| 3. | Other goods prescribed and published by the Commissioner of the Korea Customs Service as those to be used and consumed in free trade zones. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 21 (Approval, etc. for Export or Import of Goods Subject to Restrictions on their Export and Import) |
| (1) | Any person who intends to obtain export or import approval from the Minister of Trade, Industry and Energy or the head of a customhouse in accordance with Article 32 (1) of the Act shall file an application for export or import approval with the Minister of Trade, Industry and Energy or the head of the customshouse. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | If the Minister of Trade, Industry and Energy or the head of the customshouse grants approval for shipping goods, the import or export of which is restricted out of or into any free trade zone in accordance with Article 32 (1) of the Act, he/she shall consult thereabout in advance with any agency in charge of import approval provided for in the Foreign Trade Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | The term of validity for export or import approval provided for in Article 32 (1) of the Act shall be one year: Provided, That the Minister of Trade, Industry and Energy or the head of the customshouse may set the term of validity otherwise, if deemed necessary in view of the stabilization of domestic prices, coordination of the supply and demand of goods, the delivery terms of goods, or the characteristics of transactions. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 22 (Approval of Shipment of Goods Subject to Restrictions on their Export and Import into Customs Territory) |
Article 21 shall apply mutatis mutandis to matters regarding shipping the goods in the customs territory prescribed in Article 32 (3). [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 23 (Temporary Shipment of Foreign Goods, etc. into or out of Free Trade Zones) |
| (1) | Any person who intends to obtain permission from the head of the customhouse for temporarily shipping foreign goods, etc. into or out of any free trade zone in accordance with Article 33 of the Act shall file an application for permission of temporary shipment with the head of the customshouse. |
| (2) | The period during which foreign goods, etc. are temporarily shipped into or out of any free trade zone under paragraph (1) shall be the period not exceeding six months: Provided, That any person who intends to extend the period for the purposes of exhibiting and publicizing such foreign goods or on the grounds of other inevitability, etc. shall apply for the extension of the period to the head of the customshouse prior to the expiration of such period. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 24 (Reporting, etc. on Work Performed outside Free Trade Zones) |
| (1) | Any person who intends to file a report on any work done outside a free trade zone (hereinafter referred to as "outside work") in accordance with Article 34 (1) of the Act shall file an outside work report stating each of the following matters with the head of the customshouse: |
| 1. | The name, standard size, quantity and weight of goods before and after the outside work is performed; |
| 2. | The kind, period and place of the outside work and the grounds for performing such outside work. |
| (2) | The scope of the outside work shall not exceed 60 percent of the amount of goods the relevant occupant enterprise exported (referring to the export provided for in subparagraph 3 of Article 2 of the Enforcement Decree of the Foreign Trade Act; hereafter the same shall apply in this paragraph) after processing them using raw materials in the previous year: Provided, That if the export performance was nonexistent in the previous year or it is deemed inappropriate to apply the exports of the previous year on the grounds of a sharp increase in the export performance, etc., the scope of the outside work shall be defined as follows: |
| 1. | If the export performance of the previous year was nonexistent on the grounds that the business commences in the current year: Not more than 60 percent of the amount calculated by annually converting the amount of export performance in the month during which the highest export performance is achieved during the period from the date on which the business commences to the date on which a shipment report is filed: Provided, That if the first export order is received after the business commences, the amount of goods for which such export order is given shall be deemed the monthly average export performance and not more than 60 percent of the amount calculated in terms of the amount of annual export performance; |
| 2. | If the amount of goods on which an export order is issued in the month during which a shipment report is filed increases by not less than 150 percent from the monthly average export amount of the previous year, the amount of goods on which an export order is given in the month during which a shipment report is filed shall be deemed the monthly average export performance and not more than 60 percent of the amount calculated in terms of the amount of the annual export performance; |
| 3. | If the export performance of the previous year fell below 50 percent on the grounds of natural disaster or other inevitability, etc., not more than 60 percent of the export amount in the past year from the immediately preceding month during which the relevant grounds accrue. |
| (3) | The shipment period for the outside work is as follows: |
| 1. | Raw materials: Within one year; |
| 2. | Construction materials: Within the period of contract concluded between the occupant enterprise and the enterprise entrusted with the outside work for the same item, but the relevant period shall not exceed three years: Provided, That when the head of the customshouse deems it necessary to extend the shipment period due to inevitable reasons, such as that the outside work is not completed within the contract period, etc., he/she may extend the relevant period for up to three years. |
| (4) | Goods subject to outside work shall be limited to raw materials or construction materials (including metal mold) exclusively used to manufacture and process raw materials. |
| (5) | The shipment place for outside work shall be limited to a factory operated by an enterprise entrusted with the outside work or a workshop attached thereto. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 25 (Notification of Goods with Expired Storage Period) |
If goods, the storage period of which lapses, impede the smooth shipment of cargo into or out of any free trade zone, any person who runs of business of a certain type provided for in Article 10 (1) 3 of the Act in any area designated by the Commissioner of the Korea Customs Service in accordance with Article 37 of the Act may notify the head of the customhouse of the current state of the storage-period overdue goods to take measures to ship them out of any free trade zone or sell them, as prescribed and published by the Commissioner of the Korea Customs Service. [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 26 (Inventory Record, etc.) |
| (1) | "Goods, etc. prescribed by Presidential Decree, the prices of which are below the amount prescribed and published by the Commissioner of the Korea Customs Service" in the proviso to the part other than the subparagraphs of Article 38 (1) of the Act means any of the following goods: |
| 1. | Goods, the prices of which do not exceed the amount set and published by the Commissioner of the Korea Customs Service; |
| 2. | Goods that fall under each subparagraph of Article 20; |
| 3. | Goods that lose their economic value upon the expiration of their use-by date and fall under the provisions of Article 40 of the Customs Act when they are shipped into the customs territory. |
| (2) | Any person who intends to file a report on the destruction or loss of foreign goods in accordance with Article 38 (3) of the Act shall file a report stating the name, standard size, quantity, price, the name of their owner, the grounds for and date and time of their loss or destruction, and their storage place, etc. to the head of the customhouse. |
| (3) | Any person who intends to discard foreign goods, etc. in accordance with Article 38 (3) of the Act shall file a report stating the name, standard size, quantity, price, the name of their owner, the grounds for and the date and time of their discard, methods of discard, etc. to the head of the customshouse. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 27 (Collection of Customs Duties, etc. of Goods, Inventory of which Falls Short) |
If customs duties, etc. are levied on foreign goods, etc., the inventory of which falls short under Article 39 (4) of the Act, any of the following days shall be deemed the time dutiable goods are determined and statutes are applied in accordance with Articles 16 and 17 of the Customs Act and customs duties are levied thereon accordingly: | 1. | If foreign goods are lost immediately after shipped into any free trade zone: The date on which the relevant foreign goods are shipped into such free trade zone; |
| 2. | If foreign goods, etc. are manufactured, processed, etc.: The date on which such foreign goods are manufactured, processed, etc. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 27-2 (Submission of Materials) |
Where the administrative authority intends to request the Commissioner of Korea Customs Office to provide materials about shipments of goods in and out of free trade zones, as prescribed in Article 39 (5) of the Act, he/she shall make such request in writing or electronically, specifying purposes of the use of such materials and a list thereof. [This Article Newly Inserted by Presidential Decree No. 27386, Jul. 26, 2016]
| Article 28 (Public Announcement, etc. of Disposal of Goods) |
| (1) | Any owner or shipper of goods or any person entrusted with the disposal of goods (hereinafter referred to as "owner, etc. of goods") who are all under orders to dispose of goods in accordance with the main sentence of Article 40 (1) of the Act intends to dispose of the relevant goods, he/she shall notify in advance the head of the customshouse of the name, standard size, quantity, and price of the goods, the name of the owner of the goods and the date and time and method of disposing of the goods, etc. and when the relevant goods are disposed of, he/she shall notify the head of the customshouse of the results thereof. |
| (2) | If a public notice on the disposal of any goods is given in accordance with Article 40 (2) of the Act, such notice shall be published in the Official Gazette or in the bulletin board of the relevant customhouse for not less than 14 days and is published in an effective manner, including posting details of the notice on the Internet homepage. |
[This Article Wholly Amended by Presidential Decree No. 23032, July 15, 2011]
| Article 28-2 (Periods of Suspension of Shipments into Free Trade Zones) |
The periods of suspension of shipments of goods into any free trade zones in accordance with Article 40-2 (1) shall be as follows: | (a) | The cost of goods (referring to a price including fares and insurance premiums; hereafter the same shall apply throughout this subparagraph) is less than 500 million won: At least 7 days but not exceeding 30 days; |
| (b) | The cost of goods is not less than 500 million won but less than 1 billion won: At least 31 days but not exceeding 60 days; |
| (c) | The cost of goods is not less than 1 billion won but less than 4 billion won: At least 61 days but not exceeding 90 days; |
| (d) | The cost of goods is not less than 4 billion won but less than 6 billion won: At least 91 days but not exceeding 120 days; |
| (e) | The cost of goods is not less than 6 billion won but less than 8 billion won: At least 121 days but not exceeding 150 days; |
| (f) | The cost of goods is not less than 8 billion won but less than 10 billion won: At least 151 days but not exceeding 180 days; |
| (g) | The cost of goods is not less than 10 billion won or greater: 180 days; |
| 2. | In cases falling under Article 40-2 (1) 3: At least 61 days but not exceeding 90 days; |
| 3. | In cases falling under Article 40-2 (1) 5 or 6: At least 7 days but not exceeding 30 days; |
[This Article Newly Inserted by Presidential Decree No. 27386, Jul. 26, 2016]
| Article 28-3 (Standards for Imposing Penalty Surcharges) |
| (1) | The amount of a penalty surcharge imposed in accordance with Article 40-2 (2) shall be calculated by multiplying the period prescribed in subparagraph 1 by the amount prescribed in subparagraph 2: |
| 1. | Period: Number of days for which the head of the customshouse decides to suspend shipment of goods into free trade zones; |
| 2. | The amount of a penalty surcharge per day: An amount equivalent to 1/6,000 of annual sales arising from business conducted within a relevant free trade zone. |
| (2) | Annual sales prescribed in paragraph (1) 2 shall be classified and calculated as follows: |
| 1. | Where an occupant enterprise commences business within any free trade zone before the date on which the business year, during which any reason for disposal of goods whose shipment into a free trade zone was suspended arises, begins: Average annual sales registered in three business years immediately preceding the relevant business year (where less than three years have passed from the date on which business within a free trade zone commenced until the date when the immediately preceding business year ended, the average amount of sales converted to an annual basis from the date when such business commenced until the date when the immediately preceding business year ended; |
| 2. | Where an occupant enterprise commences business within any free trade zone in the business year, during which any reason for disposal of articles whose shipment into a free trade zone was suspended arises: The amount of sales converted to an annual basis from the date when business within any free trade zone commenced until the date when a reason for disposition of suspension of shipment of goods into any free trade zone arises. |
| Article 28-4 (Payment of Penalty Surcharges) |
| (1) | Where the head of the customshouse intends to impose a penalty charge on a person who commits an offense under Article 40-2 (2), he/she shall notify the person of such payment specifying the relevant amount of penalty surcharge in writing or electronically. |
| (2) | The person notified in accordance with paragraph (1) shall pay such amount to the receiving institution designated by the head of the customshouse within 20 days of payment notification: Provided, That where the person so notified cannot pay a penalty surcharge, he/she shall make the payment within seven days from the date on which the reason for payment ceases to exist. |
| (3) | Upon receipt of a penalty surcharge in accordance with paragraph (2), the receiving institution shall send a receipt to the person who made such payment in writing or electronically, and notify the head of the customshouse of such fact without delay. |
[This Article Is Newly Inserted by Presidential Decree No. 27386, Jul. 26, 2016]
| Article 29 (Restrictions on Shipment of Foreign Goods, etc. into or out of Free Trade Zones) |
| 1. | Wastes, including workplace wastes; |
| 2. | Illegal weapons, including firearms; |
| 4. | Goods that infringe on the trademark rights under the Trademark Act or copyrights under the Copyright Act; |
| 5. | Other goods prescribed and published by the Commissioner of the Korea Customs Service as being similar to those referred to in subparagraphs 1 through 4. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
CHAPTER V IMPOSITION, REDUCTION, EXEMPTION, ETC. OF CUSTOMS DUTIES, ETC.
| Article 30 (Approval for Using Domestic Goods as Raw Materials and Deduction from Customs Duty Base) |
| (1) | Any person who intends to obtain approval for using domestic goods as raw materials in accordance with the latter part of Article 44 of the Act shall file an application stating each of the following matters with the head of the customshouse: |
| 1. | The name, standard size, quantity, weight and price of domestic goods he/she intends to use as raw materials; |
| 2. | The name, standard size, quantity, weight and price of goods he/she intends to manufacture, process, assemble or repair using domestic goods as raw materials; |
| 3. | The work period and the required quantity of domestic goods. |
| (3) | If the name and standard size of the domestic goods to be used as raw materials are identical and their required quantity is invariable, the head of the customshouse may grant approval for the required quantity of a certain period in the block when he/she grants such approval in accordance with the latter part of Article 44 of the Act. |
| (4) | Any person who intends to have the quantity or price of the domestic goods which are used as raw materials under the latter part of Article 44 of the Act deducted from the customs duty base shall file an import declaration, accompanied by the following documents, with the head of the customhouse: |
| 1. | A written approval for using domestic goods as raw materials referred to in paragraph (1); |
| 3. | Other documents attesting the quantity, etc. of domestic goods used as raw materials. |
| (5) | If the head of the customshouse calculates the quantity and price of domestic goods, the customs duties of which are deducted from the customs duty base in accordance with the latter part of Article 44 of the Act, he/she shall deduct such customs duties based on the date on which the relevant domestic goods are shipped into any free trade zone or the date on which a written confirmation for domestic goods is issued. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 31 (Construction Materials Subject to Exemption of Customs Duties, etc. in Prospective Free Trade Zones) |
| 1. | Construction materials used directly for constructing buildings or factories; |
| 2. | Machines, machinery materials, facility goods, devices and equipment used directly for constructing and operating buildings or factories. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 31-2 (Standards for Supporting Technology Development by Occupant Enterprises) |
| (1) | Pursuant to Article 49 of the Act, the State or a local government may subsidize any of the following occupant enterprises: |
| 3. | Other persons who run any business falling under the occupancy management guidelines announced by the administrative authority, taking into account of the industrial features of the relevant region, pursuant to Article 28-2 (2) of the Act. |
| (2) | The Ministry of Trade, Industry and Energy shall determine and announce detailed procedures for implementing supporting projects for technology development and the operation thereof and other related matter. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
[This Article Newly Inserted by Presidential Decree No. 23032, Jul. 15, 2011]
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Articles 32 through 35 Deleted. <by Presidential Decree No. 23073, Aug. 11, 2011> |
| Article 36 (Establishment of Administrative Bodies, etc.) |
| (1) | The Minister of Strategy and Finance, the Minister of Justice, the Minister of Trade, Industry and Energy, the Minister of Health and Welfare, the Minister of Labor, and the Commissioner of the Korea Customs Service may open their respective branch offices, or post their respective public officials to such branch offices located in free economic zones in accordance with Article 51 (2) of the Act to deal with administrative affairs involving the imposition and collection of customs duties and taxes, the control of immigration and emigration, mails, communications, quarantine and labor affairs. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (2) | The head of any administrative agency that intends to open its branch office in any free trade zone or post public officials at such branch office in accordance with paragraph (1) shall consult in advance with the administrative authority thereabout. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 37 (Joint Investigations into Free Trade Zones) |
The Minister of Trade, Industry and Energy and the Minister of Land, Infrastructure and Transport and the Minister of Oceans and Fisheries may organize a joint free trade zone investigation team assigned to inspect or verify matters concerning occupancy contracts granted by institutions commissioned to perform the work or entrusted with the performance of the work in accordance with Article 40, the current state of export and import and the actual state of controlling the country of origin required by the Foreign Trade Act, and request the administrative authority to submit data necessary for such inspection or verification. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> [This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 38 (Provision, etc. of Information Pertaining to Logistics) |
| (1) | The administrative authority and the Commissioner of the Korea Customs Service may conclude agreements with non-profit corporations, under which the latter carries out activities aimed at attracting foreign investment in logistics, nurturing logistics enterprises, helping logistics enterprises make inroads into foreign countries and collecting or providing information pertaining to logistics and supporting research, etc. in order to develop the logistics industry in free trade zones. |
| (2) | The administrative authority and the Commissioner of the Korea Customs Service may subsidize the non-profit corporations referred to in paragraph (1) within budgetary limits to help them cover expenses incurred. |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 39 (Application, etc. by Electronic Means) |
Any application, notification and document provided for in this Decree may be filed, made and submitted by electronic means using information and communications networks.
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 40 (Delegation and Entrustment of Authority) |
| (1) | Pursuant to Article 55 (2) of the Act, the Minister of Strategy and Finance may entrust the administrative authority with the authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, reduce or exempt taxes, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for tax reduction or exemption in free trade zones as provided for in Articles 121-2 and 121-4 of the Restriction of Special Taxation Act. |
| (2) | When the administrative authority performs the administrative affairs belonging to the authority entrusted in accordance with paragraph (1), it shall notify the Minister of Strategy and Finance of the results thereof. |
| 1. | The Korea Airports Corporation; |
| 2. | The Incheon International Airport Corporation; |
| 4. | Deleted; <by Presidential Decree No. 23073, Aug. 11, 2011> |
| (4) | The Minister of Trade, Industry and Energy shall delegate the authority held by the administrative authority to conduct following affairs with respect to the free trade zones in industrial complexes under Article 8 (1) 1 of the Act to the administrator of every free trade zone administrative agency in accordance with Article 55 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| 7. | Rental and sale of any state-owned land, factory, etc., and setting and renewal of a rental period under Article 17 of the Act; |
| 8. | Deferred payment of the purchase price for any land, factory, etc. and payment of the purchase price in installments under Article 19 of the Act; |
| 10. | Serving notices demanding payment of rents, termination of rental contracts and taking actions to collect rents in arrears under Article 21 of the Act; |
| 12. | Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental and use under Article 25 of the Act; |
| 14-2. | Maintenance of records of the persons and automobiles entering or exiting a free trade zone under Article 27 (4); |
| 15. | Collection of maintenance costs of joint facilities, serving notices demanding the payment of maintenance costs in arrears and dispositions on such cost in arrears under Article 28 of the Act; |
| 18. | Request for materials about occupant enterprises’ shipments of goods in and out of free trade zones under Article 39 (5); |
| 20. | The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for reductions or exemptions of taxes for any foreign investment, grant tax reduction or exemption, modify details of the reductions or exemptions of taxes, or make a decision, confirmation and notification as to whether any application is eligible for reduction or exemption of taxes in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Strategy and Finance under paragraph (2); |
| (5) | The Ministry of Land, Infrastructure and Transport shall delegate his/her authority to conduct the following affairs with respect to a free trade zone that is linked with or is accessible to any airport and its hinterland provided for in Article 8 (1) 2 of the Act to the Commissioner of the Seoul Regional Aviation Administration in accordance with Article 55 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| 2. | through 4. Deleted; <by Presidential Decree No. 27386, Jul. 26, 2016> |
| 6. | Payment deferral of the purchase price of any land, factory, etc. and payment thereof in installments under Article 19 of the Act; |
| 8. | Serving notices demanding the payment of rents, etc. and taking actions to collect rents in arrears under Article 21 of the Act; |
| 10. | Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental, and use under Article 25 of the Act; |
| 11. | through 13. Deleted; <by Presidential Decree No. 27386, Jul. 26, 2016> |
| 14. | The authority to receive applications for reductions or exemptions of taxes for any foreign investment and modified applications for tax reduction or exemption for any foreign investment, grant tax reduction or exemption, modify details of the tax reduction or exemption, or make a decision, confirmation and notification as to whether any application is eligible for tax reduction or exemption in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Strategy and Finance under paragraph (2); |
| (6) | The Minister of Land, Infrastructure and Transport shall delegate his/her authority to conduct the following affairs with respect to any free trade zone that is linked with or accessible to any airport and its hinterland provided for in Article 8 (1) 2 of the Act to the Korea Airports Corporation or the Incheon International Airport Corporation in accordance with Article 55 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| 10. | Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39 (5) of the Act; |
| (7) | The Minister of Oceans and Fisheries shall delegate his/her authority to conduct the following affairs with respect to the state-owned and privately owned property located in harbors and their hinterlands under Article 8 (1) 4 of the Act to the head of a regional office of oceans and fisheries in accordance with Article 55 (3) of the Act: Provided, That authority prescribed in subparagraphs 1, 3 through 5, 13 through 15, 17, and 18 with respect to the property invested in a port authority under Article 6 of the Port Authority Act, the property which can be gratuitously lent to the relevant port authority and which can be used thereby to make profits free of charge under Article 27 of the same Act, the property directly acquired by the relevant port authority, and the property on which a local government holds a license to manage harbor facilities under Article 16 of the Harbor Act shall be excluded: <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| 7. | Deferred payment of the purchase price of any land, factory, etc. and payment thereof in installments under Article 19 of the Act; |
| 9. | Notices demanding the payment of rents, etc. and dispositions taken to collect rents in arrears under Article 21 of the Act; |
| 11. | Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental or use under Article 25 of the Act; |
| 14. | Maintenance of records of those who enter or exit a free trade zone or of automobiles under Article 27 (4); |
| 16. | Public notification of the occupancy management guidelines and the modification thereof under Article 28-2 (2); |
| 17. | Request for materials about occupant enterprises’ shipments of goods in and out of free trade zones under Article 39 (5); |
| 19. | The authority to receive applications for tax reductions or exemptions for any foreign investment and modified applications for tax reductions or exemptions for any foreign investment, grant tax reduction or exemption, modify details of the tax reduction or exemption, or make a decision, confirmation and notification as to whether any application is eligible for tax reduction or exemption in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Strategy and Finance under paragraph (2); |
| (8) | The Minister of Oceans and Fisheries shall delegate his/her authority to conduct the following affairs with respect to the state-owned and privately owned property (referring only to the property invested in a port authority under Article 6 of the Port Authority Act, the property which can be gratuitously lent to the relevant port authority and which can be used thereby to make profits free of charge under Article 27 of the same Act, and the property directly acquired by the relevant port authority) located in harbors and their hinterlands under Article 8 (1) 4 of the Act to the relevant Port Authority in accordance with Article 55 (3) of the Act: <Amended by Presidential Decree No. 27386, Jul. 26, 2016> |
| 2. | Occupancy contracts and modification of the contracts under Article 11; |
| 3. | Termination of occupancy contracts under Article 15; |
| 4. | Notification of occupancy contracts, etc. under Article 16; |
| 5. | Installation, maintenance, management, etc. of control facilities prescribed in the provisions of Article 27 (1) through (3); |
| 6. | Maintenance of records of those who enter or exit a free trade zone or of automobiles prescribed in the provisions of Article 27 (4); |
| 7. | Collection, etc., of maintenance costs of joint facilities prescribed in Article 28; |
| 8. | Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39 (5); |
| (9) | The Minister of Oceans and Fisheries shall delegate his/her authority to conduct the following affairs with respect to the public property owned by a City/Do, which is linked with and accessible to an airport and its hinterland provided for by Article 8 (1) 4 of the Act, to the Mayor/Do Governor in accordance with Article 55 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27386, Jul. 26, 2016> |
| 7. | Acquisition by transfer of any land, factory, etc., selection of transferees and receipt of reports on transfer, rental and use under Article 25 of the Act; |
| 9-2. | Maintenance of records of the persons and automobiles entering or exiting a free trade zone prescribed in the provisions of Article 27 (4); |
| 12. | Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39 (5); |
| 14. | The authority to receive applications for tax reduction or exemption for any foreign investment and modified applications for tax reduction or exemption for foreign investment, grant tax reduction or exemption, modify details of the tax reduction or exemption, or make a decision, confirmation and notification as to whether any application is eligible for tax reduction or exemption in free trade zones under paragraph (1) and notify the results of administrative affairs to the Minister of Strategy and Finance under paragraph (2)); |
| (10) | The Minister of Oceans and Fisheries shall delegate his/her authority to conduct the affairs falling under the subparagraphs of paragraph (9) with respect to the public property owned by a Si/Gun/Gu, which is linked with or accessible to any airport and its hinterland provided for by Article 8 (1) 4 of the Act, to the head of the Si/Gun/Gu in accordance with Article 55 (3) of the Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (11) | The Minister of Oceans and Fisheries shall delegated any of the following authority with respect to the property on which a local government holds a license to manage harbor facilities under the Harbor Act of the state-owned property located in harbors and their hinterlands under Article 8 (1) 4 of the Act to the head of a local government granted a license to manage the relevant property: <Newly Inserted by Presidential Decree No. 27386, Jul. 26, 2016> |
| 2. | Occupancy contracts and modification of the contracts under Article 11; |
| 3. | Termination of occupancy contracts under Article 15; |
| 4. | Notification of occupancy contracts, etc. under Article 16; |
| 5. | Installation, maintenance, management, etc. of control facilities prescribed in the provisions of Article 27 (1) through (3); |
| 6. | Maintenance of records of the persons and automobiles entering or exiting a free trade zone as prescribed in the provisions of Article 27 (4); |
| 7. | Collection, etc., of maintenance costs of joint facilities prescribed in Article 28; |
| 8. | Request for materials about occupant enterprises’ shipment of goods in and out of free trade zones under Article 39 (5); |
[This Article Wholly Amended by Presidential Decree No. 23032, Jul. 15, 2011]
| Article 40-2 (Processing Personally Identifiable Information) |
Where the administrative authority (including the person entrusted with and delegated authority of the administrative authority) may, where it is unavoidable to perform affairs relating to verification of grounds for disqualification of persons who intend to enter into an occupancy contract under Article 12 of the Act, process materials which include resident registration numbers prescribed in subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act. <Amended by Presidential Decree No. 27386, Jul. 26, 2016> [This Article Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014]
| Article 40-3 (Re-Examination of Regulation) |
| (1) | The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every three 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 third year) and shall take measures, such as making improvements: <Amended by Presidential Decree No. 25840, Dec. 9, 2014> |
| 1. | Occupancy requirements under Article 7: January 1, 2014; |
| 2. | Rental permit requirements for factories, etc. under Article 15: January 1, 2014; |
| 3. | Goods requiring inventory record-keeping, procedures for reporting destruction, loss or discard, and records retention periods under Article 26: January 1, 2014. |
| (2) | 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: <Newly Inserted by Presidential Decree No. 25840, Dec. 9, 2014; Presidential Decree No. 27386, Jul. 26, 2016> |
| 1. | Details of modified occupancy contracts and contract procedures under Article 8: January 1, 2015; |
| 2. | Duty to submit a plan for disposal of a factory, etc. by a person whose occupancy contract is terminated, and disposal procedures under Article 9 (1), (2), and (5): January 1, 2015; |
| 3. | The administrative authority’s notification duty when a factory, etc. under Article 14 are constructed: January 1, 2015; |
| 4. | Reported matters when domestic goods are shipped out of Korea under Article 20: January 1, 2015; |
| 5. | Goods, etc. not subject to confirmation of shipment of domestic goods out of free trade zones under Article 20; |
| 6. | Temporary shipment of foreign goods, etc. into and out of free trade zones under Article 23: January 1, 2015; |
| 7. | Reported matters regarding work performed outside free trade zones, the scope and shipment period for the outside work: January 1, 2015; |
| 8. | Public announcement, etc. of disposal of goods under Article 28: January 1, 2015; |
| 9. | Standards for imposing administrative fines under Article 41 and attached Table: January 1, 2015. |
[This Article Newly Inserted by Presidential Decree No. 25050, Dec. 30, 2013]
| Article 41 (Standards for Imposing Administrative Fines) |
[This Article Newly Inserted by Presidential Decree No. 21763, Oct. 1, 2009]
ADDENDA
| (1) | (Enforcement Date) This Decree shall enter into force on June 23, 2004. |
| (2) | (Repeal of other Statues) The Enforcement Decree of the Act on Designation and Management of Customs-Free Zones for Building International Logistics Centers is hereby repealed. |
| (4) | (Relationship with other Statutes) Any citation of the former Enforcement Decree of the Act on Designation and Management of Customs-Free Zones for Building International Logistics Centers, the former Enforcement Decree of the Act on the Designation, etc. of Free Trade Zone or any provisions thereof as at the time this Decree enters into force shall be deemed to a citation of this Decree or the provisions of this Decree if any provisions corresponding thereto exist in this Act. |
ADDENDA <Presidential Decree No. 19154, Nov. 30, 2005>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability to Construction Materials Exempting from Customs Duties, etc.) The amended provisions of subparagraph 2 of Article 31 shall apply starting from the construction materials to be carried first in a prospective free trade zone after this Decree enters into force. |
| (3) | (Transitional Measures concerning Notification Period of Whether or Not to Grant Permits) Where the administrative authority has received an application for occupancy permit or a change of occupancy permit before this Decree enters into force, the notification period for whether to grant the relevant permit or a change of occupancy permit shall be governed by the previous provisions, notwithstanding the amended provisions of Article 8 (3). |
ADDENDA <Presidential Decree No. 19593, Jun. 30, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 1, 2006.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20105, Jun. 26, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 27, 2007.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20331, Oct. 23, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 28, 2007. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 20398, Nov. 30, 2007>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
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.
ADDENDA <Presidential Decree No. 21185, Dec. 24, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2009. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 21215, Dec. 31, 2008>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21367, Mar. 25, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability)
The amended provisions of Article 12 (3) and (4) shall apply starting from the interest to be paid by the payment deadline first arriving after this Decree enters into force.
ADDENDA <Presidential Decree No. 21641, Jul. 27, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 31, 2009. (Proviso Omitted.)
Articles 2 through 15 Omitted.
ADDENDA <Presidential Decree No. 21763, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 2, 2009.
Article 2 (Applicability)
| (1) | The amended provisions of attached Table shall apply starting from the first violation committed after this Decree enters into force. |
| (2) | When applying the standards for imposing administrative fines according to the frequencies of violations pursuant to the amended provisions of the attached Table, the first violation committed after this Decree enters into force shall be deemed one violation. |
Article 3 (Transitional Measures)
The application of administrative fines to an act conducted before this Decree enters into force shall be governed by the former practices.
Article 4 Omitted.
ADDENDA <Presidential Decree No. 22075, Mar. 15, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on March 19, 2009. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 22151, May 4, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 5, 2010.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 22220, Jun. 28, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 6, 2010.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 22269, Jul. 12, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 22467, Nov. 2, 2010>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 23032, Jul. 15, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Master Plans for Free Trade Zones)
The amended provisions of Article 2 (1) shall apply to the first master plan submitted for a free trade zone after this Decree enters into force. Article 3 (Applicability to Occupancy Requirements in Free Trade Zones)
The amended provisions of Article 7 (2) shall apply to the first person who obtained an occupancy permit after this Decree enters into force. Article 4 (Applicability to Types of Business Supporting Business of Occupant Enterprises)
The amended provisions of Article 7 (6) 18 shall apply to the first occupancy contract entered into with the administration authority after this Decree enters into force. Article 5 (Transitional Measures concerning Administration of Private Property in Harbors and their Hinterlands)
Any act done by the head of a Si/Gun/Gu such as granting a permit and the receipt of report on any private property located in harbors and their hinterlands pursuant to the former Article 40 (10) as at the time this Decree enters into force shall be deemed an act done by the head of a local maritime affairs and port office, such as granting a permit and the receipt of report on the private property located in harbors and their hinterlands pursuant to the amended provisions of Article 40 (7). Article 6 (Transitional Measures concerning Standards for Supporting Technology Development by Occupant Enterprises)
A public announcement on supporting projects for technology development pursuant to the precedents as at the time this Decree enters into force shall be deemed a public announcement made under the amended provisions of Article 31-2 (2). Article 7 (Re-Examination of Regulations)
The Minister of Knowledge Economy shall review appropriateness of the occupancy requirements prescribed in Article 7 (2) by no later than December 31, 2014 and take necessary measures such as relaxing or maintaining the standards for such requirements.
ADDENDA <Presidential Decree No. 23073, Aug. 11, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on August 19, 2011.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDUM <Presidential Decree No. 25050, Dec. 30, 2013>
This Decree shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDUM <Presidential Decree No. 25260, Mar. 18, 2014>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 25495, Jul. 21, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 22, 2014.
Article 2 Omitted.
ADDENDUM <Presidential Decree No. 25532, Aug. 6, 2014>
This Decree shall enter into force on August 7, 2014.
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 in accordance with Article 5 of these Addenda, amendments to Presidential Decrees, which were promulgated before this Decree enters into force, but the dates on which they are to enter into force have yet to arrive, shall enter into force on the enforcement dates of the respective Presidential Decrees.
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. 25985, Jan. 6, 2015>
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. 27386, Jul. 26, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on July 28, 2016.
Article 2 (Transitional Measures concerning Submission of Application for Occupancy Permits, etc.)
Any person, who filed an application for an occupancy permit or a modified permit pursuant to the former Article 8 (1) before this Decree enters into force, shall be deemed to have submitted an occupancy contract or a modified contract pursuant to the amended Article 8 (1). Article 3 (Transitional Measures concerning Disposal of Land, Factories, etc. for which Occupancy Permit is Revoked)
The former provisions shall apply to the disposal of land, factories, etc. by persons whose occupancy permit was revoked before this Decree enters into force despite the amended provisions of Article 9 (1) through (3).
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.