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ENFORCEMENT DECREE OF THE ENGINEERING TECHNOLOGY PROMOTION ACT

Wholly Amended by Presidential Decree No. 22626, Jan. 17, 2011

Amended by Presidential Decree No. 22977, jun. 24, 2011

Presidential Decree No. 23248, Oct. 25, 2011

Presidential Decree No. 23267, Oct. 28, 2011

Presidential Decree No. 23644, Feb. 29, 2012

Presidential Decree No. 23905, jun. 29, 2012

Presidential Decree No. 24442, Mar. 23, 2013

Presidential Decree No. 25358, May 22, 2014

Presidential Decree No. 25532, Aug. 6, 2014

Presidential Decree No. 25751, Nov. 19, 2014

Presidential Decree No. 27205, May 31, 2016

Presidential Decree No. 27311, Jul. 6, 2016

Presidential Decree No. 28212, Jul. 26, 2017

Presidential Decree No. 28547, Dec. 29, 2017

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to prescribe matters delegated by the Engineering Industry Promotion Act and matters necessary for the enforcement thereof.
 Article 2 (Engineering Activities)
"Activities prescribed by Presidential Decree" in subparagraph 1 (c) of Article 2 of the Engineering Industry Promotion Act (hereinafter referred to as the "Act") means the following activities concerning business and facilities by applying scientific and technological knowledge:
1. Estimate;
2. Review of economic feasibility and functionality of design;
3. Analysis and management of systems.
 Article 3 (Engineering Technology)
Engineering technology under subparagraph 5 of Article 2 of the Act shall be as listed in attached Table 1.
 Article 4 (Engineers)
Engineers under subparagraph 6 of Article 2 of the Act shall be as listed in attached Table 2.
 Article 5 (Ordering Authority)
"Person prescribed by Presidential Decree, such as a local corporation or local authority under the Local Public Enterprises Act" in subparagraph 7 (e) of Article 2 of the Act means any of the following persons:
1. A local corporation or local authority under the Local Public Enterprises Act;
2. An institution contributed to by the State or local governments;
3. A concessionaire of a project delegated by the State, local governments or public enterprises or quasi-government agencies (hereinafter referred to as "public institutions, etc.") under Article 5 (3) 1 and 2 of the Act on the Management of Public Institutions;
4. A concessionaire of facilities to be managed by the State, local governments, public institutions, etc. under the relevant statutes and regulations.
CHAPTER II PROMOTION AND ESTABLISHMENT OF FOUNDATIONS OF ENGINEERING INDUSTRY
 Article 6 (Formulation and Implementation of Promotional Plans for Engineering Industry)
Where formulating or revising the promotional plans for the engineering industry under Article 5 (1) of the Act, the Minister of Trade, Industry and Energy shall publicly announce such fact in the official gazette or notify the heads of the relevant central administrative agencies thereof. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27311, Jul. 6, 2016>
 Article 7 Deleted. <by Presidential Decree No. 27311, Jul. 6, 2016>
 Article 8 (Requests for Submission of Data)
Where the Minister of Trade, Industry and Energy requests the heads of the related central administrative agencies, local governments, related organizations or institutions to submit data under Article 5 (4) of the Act, he/she shall notify them of the following matters in writing within 15 days prior to the deadline for submission: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Reason for requesting submission;
2. Deadline for submission;
3. Data to be submitted;
4. Method and form of submission;
5. Method for utilizing submitted data.
 Article 9 (Composition of Engineering Industry Policy Council)
(1) The Engineering Industry Policy Council under Article 6 (1) of the Act (hereinafter referred to as the “Policy Council”) shall be comprised of not more than 13 members, including one chairperson. <Amended by Presidential Decree No. 28212, Jul. 26, 2017>
(2) The Vice Minister of the Ministry of Trade, Industry and Energy shall be the Chairperson of the Policy Council (hereinafter referred to as the “chairperson”). <Amended by Presidential Decree No. 28212, Jul. 26, 2017>
(3) Members of the Policy Council shall be public officials belonging to the Senior Civil Service Corps of the following central administration agencies who are appointed by the heads of the relevant central administration agencies: <Amended by Presidential Decree No. 28212, Jul. 26, 2017>
1. The Ministry of Economy and Finance;
2. The Ministry of Education;
3. The Ministry of Science and ICT;
4. The Ministry of the Interior and Safety;
5. The Ministry of Agriculture, Food and Rural Affairs;
6. The Ministry of Trade, Industry and Energy;
7. The Ministry of Environment;
8. The Ministry of Employment and Labor;
9. The Ministry of Land, Infrastructure and Transport;
10. The Ministry of Oceans and Fisheries;
10-2. The Ministry of SMEs and Startups;
11. The Korea Communications Commission.
(4) The Policy Council shall have one administrative secretary to conduct its duties, and the administrative secretary shall be appointed by the Minister of Trade, Industry and Energy, from among public officials under his/her control.
(5) In any of the following cases, the person who appointed the relevant member under paragraph (3) may cancel his/her appointment:
1. Where he/she becomes incapable of performing his/her duties due to mental disorder;
2. Where it is found that he/she has committed any unlawful act in connection with his/her duties;
3. Where it is deemed that he/she is unsuitable to serve as a member for neglect of duties, injury to dignity, or any other reason;
4. Where he/she declares himself/herself that it is impracticable for him/her to perform duties.
[This Article Wholly Amended by Presidential Decree No. 27311, Jul. 6, 2016]
 Article 10 (Operation of Policy Council)
(1) The chairperson shall convene meetings of the Policy Council and preside them.
(2) Where the chairperson is unable to perform his/her duties due to any unavoidable reason, a member designated by the chairperson in advance shall act on behalf of the chairperson.
(3) A majority of the members of the Policy Council shall constitute a quorum, and any decision thereof shall require the concurring vote of at least a majority of those present.
(4) Where necessary for conducting its duties, the Policy Council may have experts and public officials from the related areas who have professional knowledge and experiences attend a meeting and present their opinions.
(5) Matters necessary for operation of the Policy Council, other than those prescribed in paragraphs (1) through (4), shall be determined by the chairperson after resolution by the Policy Council.
[This Article Wholly Amended by Presidential Decree No. 27311, Jul. 6, 2016]
 Article 11 (Composition of Working Committee)
(1) The Policy Council may have a working committee to conduct professional research and preliminary examination with regard to consulted matters.
(2) The working committee shall be comprised of not more than 12 members appointed by the heads of the central administration agencies referred to in the subparagraphs of Article 9 (3), from among the public officials of Grade III or IV (including public officials equivalent thereto) in charge of engineering-related affairs under the control of the relevant central administration agencies. <Amended by Presidential Decree No. 28212, Jul. 26, 2017>
(3) Necessary matters for the operation of the working committee, other than those prescribed in paragraphs (1) and (2), shall be determined by the chairperson after resolution by the Policy Council.
[This Article Wholly Amended by Presidential Decree No. 27311, Jul. 6, 2016]
 Articles 12 and 13 Deleted. <by Presidential Decree No. 27311, Jul. 6, 2016>
 Article 14 (Investigation of Actual Conditions)
(1) The Minister of Trade, Industry and Energy may investigate the following matters each year under Article 7 (1) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Actual status of engineering business entities and their technical human resources;
2. Actual results of orders for and sale of engineering;
3. Management status of engineering business entities;
4. Status of wages of engineering business entities;
5. Other necessary matters for promotion of the engineering industry.
(2) Where it is necessary for the establishment of the policy on promotion of the engineering industry, the Minister of Trade, Industry and Energy may investigate from time to time the actual status of development of engineering technology and training and education of professional human resources for engineering. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(3) Where investigating the actual conditions under paragraphs (1) and (2), the Minister of Trade, Industry and Energy shall first inform the persons subject to the investigation of the investigation plan including the following matters: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Date and time of investigation;
2. Purpose of investigation;
3. Contents of investigation;
4. Other necessary matters for the investigation of actual conditions.
(4) Where the Minister of Trade, Industry and Energy has investigated the actual conditions under paragraphs (1) through (3), he/she shall immediately give public notice of the outcomes thereof. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 15 (Establishment and Operation of Information Systems for Engineering Industry)
(1) The Minister of Trade, Industry and Energy may perform the following duties in order to promote the efficient establishment and utilization of information systems for the engineering industry (hereinafter referred to as "information systems") under Article 8 (1) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Research and development concerning the composition and operation of information systems and technology support;
2. Performance of a joint project for establishment of information systems;
3. Standardization and sophistication of information systems;
4. Promotion of joint utilization of information using information systems;
5. Other necessary matters concerning promotion, etc. of establishment and utilization of information systems.
(2) The Minister of Trade, Industry and Energy shall, where establishing information systems, actively utilize investigation data, statistics, etc. collected and owned by other administrative agencies or organizations. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 16 (Support for Research on Engineering Technology)
(1) In performing the following projects, the heads of central administrative agencies may investigate demand for new engineering technology, and provide support for the research, development and diffusion of engineering technology pursuant to Article 9 of the Act: <Amended by Presidential Decree No. 22977, Jun. 24, 2011; Presidential Decree No. 23248, Oct. 25, 2011; Presidential Decree No. 23267, Oct. 28, 2011; Presidential Decree No. 24442, Mar. 23, 2013>
1. National research and development projects under Article 11 of the Framework Act on Science and Technology;
3. Nuclear energy research and development projects under Article 12 of the Nuclear Energy Promotion Act and research and development projects for nuclear energy safety under Article 9 of the Nuclear Safety Act;
4. Industrial technology innovation projects under subparagraph 7 of Article 2 of the Industrial Technology Innovation Promotion Act;
5. Research and development of new and renewable energy and technology assessment projects under subparagraph 2 of Article 10 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy;
6. Environmental technology development projects under Article 5 of the Environmental Technology and Industry Support Act;
7. Other technology-development projects funded by the Government which are determined by the Minister of Trade, Industry and Energy following consultation with the heads of the relevant central administrative agencies.
(2) The Minister of Trade, Industry and Energy may allow institutions, etc. that perform collaborative research on engineering technology pursuant to Article 9 (3) of the Act to secure preferential occupancy in facilities designed to promote the engineering industry (hereinafter referred to as "promotional facilities") under Article 19 of the Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 17 (Pilot Projects for Use and Diffusion of Engineering Technology)
The pilot projects under Article 9 (4) of the Act shall meet all of the following standards:
1. Use and diffusion of engineering technology must be necessary;
2. Financing plans for pilot projects must be appropriate and feasible.
 Article 18 (Promotion of Commercialization of Engineering Technology)
(1) The details of support for the commercialization of engineering technology under Article 10 (2) of the Act shall be as follows:
1. Subsidization of necessary expenses incurred in obtaining domestic or foreign quality certification;
2. Subsidization of necessary expenses incurred in using research facilities or equipment;
3. Technical guidance;
4. Mediation, or provision of foreign technology-related information and gratuitous provision of technical information;
5. Other support necessary for promoting the commercialization of engineering technology.
(2) In providing support under paragraph (1), the heads of central administrative agencies may first provide funds using any of the following fund and request the heads of relevant central administrative agencies exercising control over the relevant fund, etc. to provide preferential support: <Amended by Presidential Decree No. 22977, Jun. 24, 2011; Presidential Decree No. 27205, May 31, 2016>
1. Fund for science and technology promotion under Article 22 of the Framework Act on Science and Technology;
2. Fund for the promotion of a specific research and development project under Article 14 of the Basic Research Promotion and Technology Development Support Act;
3. Fund for technological assistance under Article 7 of the Industrial Technology Innovation Promotion Act;
4. Fund for the establishment and promotion of small and medium enterprises under Article 63 of the Small and Medium Enterprises Promotion Act;
5. Fund for the promotion of information and communications under Article 41 of the Information and Communications Technology Industry Promotion Act;
6. Fund for technology development of the Korea Development Bank under the Korea Development Bank Act;
7. Fund for small and medium enterprises of the Industrial Bank of Korea under the Industrial Bank of Korea Act;
8. Fund for new technology project of the specialized credit financial companies registered as a new technology project financing company pursuant to Article 3 of the Specialized Credit Finance Business Act;
9. Technology guarantee of the Korea Technology Finance Corporation under the Korea Technology Finance Corporation Act;
10. Subsidies for encouragement of inventions under Article 4 of the Invention Promotion Act;
11. Other special funds raised by the Government for support of technical development.
(3) Necessary matters concerning procedures for supporting commercialization of engineering technology under paragraph (1) shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 19 (Designation of Specialized Agencies for Promotion of Standardization of Engineering Technology)
(1) Any person who intends to be designated as a specialized agency or organization under Article 11 (3) of the Act (hereinafter referred to as "specialized agencies, etc.") shall apply for such designation to the Minister of Trade, Industry and Energy as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(2) The requirements for specialized agencies, etc. shall be as follows:
1. They must be non-profit corporations or agencies;
2. They must be equipped with exclusive human resources, organizational structure and system for business operation.
(3) The Minister of Trade, Industry and Energy shall, where designating the specialized agencies, etc., publicly announce the details of such designation. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(4) Details of the requirements for designation under paragraph (2) 2 shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 20 (Support for Specialized Agencies)
The Minister of Trade, Industry and Energy may provide any of the following support to the specialized agencies, etc. under Article 11 (3) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Subsidization of necessary expenses incurred for operation, etc. of the specialized agencies, etc.;
2. Subsidization of necessary expenses incurred for establishment and operation of a joint research facility for the research of standardization;
3. Other subsidization of necessary expenses for research of standardization.
 Article 21 (Designation of Engineering Technology Support Center)
(1) The Minister of Trade, Industry and Energy shall designate any of the following institutes or agencies as engineering technology support centers (hereinafter referred to as "support center") under Article 12 (1) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Research institutes falling under any of the following categories:
(a) National or public research institutes;
(b) Specific research institutes under the Specific Research Institutes Support Act;
(c) Government-funded science and technology research institutions under the Act on the Establishment, Operation and Fostering of Government-Funded Science and Technology Research Institutions;
2. Specialized agencies falling under either of the following categories:
(a) The Association established under Article 33 of the Act (hereinafter referred to as the "Association");
(b) Specialized non-profit corporations or agencies in the engineering field established by the Civil Act or other statutes.
(2) Any institute or agency that intends to be designated as a support center shall have not less than five exclusive human resources falling under any of the following: <Amended by Presidential Decree No. 23644, Feb. 29, 2012>
1. A person who has obtained a doctor's degree or higher in the field of science and technology;
2. A person who has obtained a master's degree or higher in the field of science and technology and has worked for not less than six years as researcher, assistant professor or in a higher position in research institutes or colleges under Article 2 of the Higher Education Act;
3. A person who has obtained a bachelor's degree or higher in the field of science and technology, and is an advanced technician or is in a higher position as shown in attached Table 2;
4. A person who has obtained a bachelor's degree or higher, and has worked for not less than nine years in fields related to engineering technology in the engineering industry-related corporation or agency.
(3) Necessary matters concerning the procedures for designation of support center under Article 12 (1) of the Act shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 22 Deleted. <by Presidential Decree No. 27311, Jul. 6, 2016>
 Article 23 (Designation of Agencies to Foster Professional Human Resources for Engineering)
(1) The requirements for agencies to foster professional human resources (hereinafter referred to as "agencies to foster human resources for engineering") under Article 13 (2) of the Act in order to foster professional human resources for engineering (hereinafter referred to as "professional human resources for engineering") under Article 13 (1) of the Act shall be as follows:
1. Educational facilities and specialized professionals must be suitable;
2. The agencies to foster human resources for engineering must hold necessary equipment for education;
3. Plan for utilization of support fund must be appropriate;
4. Curriculum and details must be appropriate.
(2) Any person who intends to be designated as the agency to foster professional human resources under Article 13 (2) of the Act shall apply for such designation to the Minister of Trade, Industry and Energy, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(3) Where the Minister of Trade, Industry and Energy intends to designate a person as the agency to foster professional human resources, he/she shall consult with the heads of relevant central administrative agencies and where he/she has made such designation, he/she shall publicly announce the details thereof. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 24 (Targets and Types of Education and Training for Fostering Professional Human Resources for Engineering)
(1) The targets and types of education for fostering professional human resources for engineering under Article 13 (3) of the Act shall be as follows:
1. Targets of education and training: Engineer (including a person who intends to report under Article 21 of the Act);
2. Types of education and training:
(a) Basic education and training: Education and training for basic understanding and knowledge of the statutes and regulations or systems related to engineering;
(b) Professional education and training: Education and training for improvement of professional technological capability per engineering technology field.
(2) Necessary matters concerning the period and courses of education and training for fostering professional human resources for engineering under paragraph (1) shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 25 (Establishment of Policies for Promotion of Employment)
(1) The policies under Article 14 (1) of the Act shall include any of the following:
1. Matters on the actual status of employment of professional human resources for engineering by engineering business entities;
2. Matters on improvement of employment structure of professional human resources for engineering;
3. Matters on vocational ability development and improvement such as fosterage of professional human resources for engineering;
4. Other necessary matters concerning promotion of employment of professional human resources for engineering.
(2) The heads of central administrative agencies may partially subsidize necessary expenses to engineering business entities who hire professional human resources for engineering according to the policy for employment promotion under Article 14 (1) of the Act.
 Article 26 (Support for Promotion of Sophistication of Structure of Engineering Industry)
Where it is necessary to promote sophistication of structure of the engineering industry under Article 15 (1) of the Act, the heads of central administrative agencies may render administrative and financial support with respect to the installment of industrial equipment or facilities, development of resources, advancement into overseas market, etc.
 Article 27 (Policies for Support of International Cooperation and Overseas Advancement)
(1) The heads of central administrative agencies may support any of the following projects in order to promote the international cooperation and overseas advancement of the engineering industry under Article 16 of the Act:
1. Collection of information relating to the engineering industry due to overseas advancement;
2. Support of funds for advancement into overseas markets and securing professional human resources for engineering;
3. Provision of chances for sharing information and cooperating with the enterprises that advance into overseas markets and the agencies;
4. Holding of international seminars with respect to international trends relating to engineering and support for participation therein;
5. Other projects deemed necessary to secure the international competitiveness of the engineering industry.
(2) The heads of central administrative agencies may request the heads of the relevant administrative agencies to provide necessary support for engineering business entities to advance into overseas markets, with respect to financial activity such as export guarantee.
 Article 28 (Consultations for Registration of Engineering Collective Investment Scheme)
The Financial Services Commission shall request a consultation with the Minister of Trade, Industry and Energy within seven days from the date of receipt of application for registration of a collective investment scheme under Article 17 (1) of the Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 29 (Methods of Managing Assets)
"Engineering business entities prescribed by Presidential Decree" in Article 18 (1) 1 of the Act means any of the following engineering business entities at the time of managing the assets of an engineering collective investment scheme (hereinafter referred to as "engineering collective investment scheme") under Article 17 (1) of the Act:
1. Engineering business entities who intend to commercialize the development outcomes of engineering technology under Article 10 (2) of the Act;
2. Engineering business entities who have received support for overseas advancement under Article 27 (1);
3. Engineering business entities who have taken up occupancy of the promotional facilities.
 Article 30 (Designation as Promotional Facilities)
(1) A person who intends to obtain designation as promotional facilities under Article 19 (2) of the Act shall apply for such designation to the Minister of Trade, Industry and Energy, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(2) The requirements for the designation as promotional facilities shall be as follows:
1. At least five engineering business entities (ten in the case of the Seoul Special Metropolitan City) must take up occupancy thereof;
2. Number of small and medium enterprises under Article 2 of the Framework Act on Small and Medium Enterprises from among the engineering business entities who take up occupancy thereof must be not less than 30/100;
3. The area occupied by the engineering business entities and their support facilities must be not less than 50/100 of the total area of the promotional facilities;
4. Joint-use facilities necessary for engineering activities such as joint-use meeting rooms and joint-use equipment rooms must be installed.
(3) Where the Minister of Trade, Industry and Energy has designated the promotional facilities, he/she shall publicly announce such designation. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(4) Necessary matters concerning designation, management, etc. of promotional facilities, other than those provided for in this Decree, shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 31 (Support for Promotional Facilities)
The Minister of Trade, Industry and Energy may render any of the following support to promotional facilities for smooth creation and fostering of promotional facilities: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Subsidization of necessary funds for creation, fostering and operation of promotional facilities;
2. Installation and operation of joint-support facilities necessary for engineering activities;
3. Other necessary support for creation, fosterage and operation of promotional facilities.
 Article 32 (Cancellation of Designation as Promotional Facilities)
Where the Minister of Trade, Industry and Energy intends to cancel designation of promotional facilities under Article 20 of the Act, he/she shall first listen to details of the opinions of the Special Metropolitan City Mayor, the Metropolitan City Mayor, the Do Governor or the Governor of a Special Self-Governing Province and shall, where he/she has cancelled such designation, publicly announce the fact. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
CHAPTER III REPORTING BY ENGINEERING BUSINESS ENTITY
 Article 33 (Reporting by Engineering Business Entities)
(1) Requirements for reporting by engineer business entities under the former part of Article 21 (1) of the Act shall be as listed in attached Table 3.
(2) "Important matter prescribed by Presidential Decree" in Article 21 (2) of the Act means the following:
1. Trade name or name;
2. Location of business office;
3. Representative;
4. Type of engineering project;
5. Professional fields of engineering project;
6. Technical human resources reported under the former part of Article 21 (1) of the Act.
 Article 34 (Maintenance and Management of Reported Matters)
The Minister of Trade, Industry and Energy shall maintain and manage any of the following matters: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Actual results of education and training of engineers under Article 13 (2) of the Act;
2. Matters reported by engineering business entities under Article 21 (1) of the Act;
3. Matters reported under Articles 21 (2) and 23 (2) of the Act;
4. Matters reported on engineers under Article 26 (1) of the Act;
5. Other matters prescribed by Ordinance of the Ministry of Trade, Industry and Energy.
 Article 35 (Disposition to Invalidate Reports by Engineering Business Entities)
(1) Standards for making a disposition to invalidate a report by an engineering business entity, to suspend business, or to cancel a report under Article 24 (1) or (2) of the Act shall be as listed in attached Table 4. <Amended by Presidential Decree No. 27311, Jul. 6, 2016>
(2) Where the Minister of Trade, Industry and Energy has taken a disposition to invalidate a report by an engineering business entity, to suspend or to cancel such report under Article 24 (1) or (2) of the Act, shall publicly announce such fact. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27311, Jul. 6, 2016>
CHAPTER IV IMPLEMENTATION OF ENGINEERING PROJECTS
 Article 36 (Engineering Projects Subject to Evaluation of Capacity to Implement Projects)
(1) An ordering authority shall evaluate the capacity to implement any of the following engineering projects pursuant to Article 28 (1) of the Act: <Amended by Presidential Decree No. 27311, Jul. 6, 2016>
1. Engineering projects the estimated price of which is larger than the price publicly announced pursuant to the main sentence other than any subparagraph of Article 4 (1) of the Act on Contracts to which the State is a Party;
2. Engineering projects for which bidding is conducted under Article 18 of the Act on Contracts to which the State is a Party;
3. Engineering projects whose outcome is likely to be incomplete due to fierce competition.
(2) Notwithstanding paragraph (1), an ordering authority need not evaluate the capacity to implement any of the following engineering projects: <Amended by Presidential Decree No. 25358, May 22, 2014>
1. Engineering projects for which the order for design and construction is placed on a package basis and it is difficult to evaluate the capacity to implement the project by separating the design only;
2. Engineering projects for which private contract may be concluded pursuant to the proviso to Article 7 of the Act on Contracts to which the State is a Party;
3. Projects whose capacity to implement the project is evaluated in accordance with the Construction Technology Promotion Act or other statutes;
4. Other projects equivalent to those in subparagraphs 1 through 3 and whose capacity to implement the project is deemed unnecessary to be evaluated by the competent Minister due to extraordinary grounds.
 Article 37 (Matters Subject to Evaluation of Capacity to Implement Projects)
Subject matters for evaluation of capacity to implement projects, standards and methods under Article 28 (1) of the Act shall be as listed in attached Table 5.
 Article 38 (Methods and Procedures for Evaluation of Capacity to Implement Projects)
(1) Where an ordering authority intends to conduct an engineering project whose capacity to implement the project under Article 28 of the Act must be evaluated, it shall publicly announce the plan to promote the engineering project including the matters prescribed by Ordinance of the Ministry of Trade, Industry and Energy within 60 days prior to the scheduled announcement date of the bidding of the relevant engineering project. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(2) A person who intends to participate in the engineering project publicly announced under paragraph (1) shall submit an application for participation in the project implementation to the ordering authority within 30 days prior to the scheduled announcement date of the bidding of the relevant engineering projet as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. In such cases, where two or more persons jointly intend to participate in the project, they shall submit an application for participation in the project implementation under the joint name. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
(3) An ordering authority shall determine the specific standards on the matters subject to evaluation under Article 37 by comprehensively considering the nature, contents, scale, etc. of the relevant engineering project at the time of announcing a bidding notice, and allow a person who intends to participate in the bidding to peruse them.
(4) An ordering authority shall evaluate the capacity to implement the project of a person who has submitted an application for participation in the project implementation under paragraph (2) as provided for in Article 28 of the Act so that an appropriate engineering business entity may participate in the bidding. In such cases, the ordering authority may use data on the evaluation on the capability to implement engineering projects prepared by the Association under Article 39.
(5) An ordering authority shall inform the engineering business entity who is evaluated as appropriate under paragraph (4) of the outcomes thereof.
 Article 39 (Cooperation of Association)
Where it is necessary to cooperate with the evaluation of a capacity to implement projects under Article 28 (2) of the Act, the Association may prepare the data on evaluation of a capacity to implement the project by an engineering business entity by using data from any of the following:
1. Investigation of actual conditions under Article 7 of the Act;
2. Information systems;
3. Reports by engineering business entities under Article 21 of the Act;
4. Reports by engineers under Article 26 of the Act;
5. Other data concerning the capacity of an engineering business entity to implement a project.
 Article 40 (Methods of Conclusion of Contract)
(1) Where it is deemed impracticable to conclude a contract pursuant to a negotiation under Article 43 of the Enforcement Decree of the Act on Contracts to which the State is a Party and Article 43 of the Enforcement Decree of the Act on Contracts to which a Local Government is a Party in view of the purpose or characteristics of a contract, an ordering authority shall determine a successful bidder by aggregating the points of the evaluation of the capacity to implement a project and the points of the price according to the bidding price pursuant to the proviso to Article 29 (1) of the Act.
(2) The method of concluding a contract pursuant to the main sentence of Article 29 (1) of the Act and standards for determination of a successful bidder under paragraph (1) shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy through a consultation with the heads of relevant central administrative agencies. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 41 (Contents and Methods of Implementation Process of Engineering Projects)
(1) An ordering authority shall implement an engineering project according to the following implementation process in order to efficiently implement the engineering project under Article 30 of the Act and where it intends to place an order for engineering project, it shall do to an engineering business entity:
1. Planning;
2. Feasibility study;
3. Formation of basic plans;
4. Basic design and implementation design;
5. Supervision;
6. Business management;
7. Management of performance.
(2) Where an engineering project falls under any of the following subparagrahs, an ordering authority may implement the engineering project by adjusting a part of its implementation process under paragraph (1):
1. Where the total project cost is less than 200 million won;
2. Where an emergency measure is necessary such as restoration from disaster;
3. Where it is deemed difficult to follow the implementation process under paragraph (1) in view of the characteristics of an engineering project.
(3) Necessary matters concerning the detailed contents and procedures for the process of implementing an engineering project under paragraph (1) shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 42 (Obtaining Coverage by Indemnity Insurance and Mutual Aid by Engineering Business Entities)
(1) The target and term of obtaining coverage by insurance or mutual aid pursuant to Article 31 (5) of the Act shall be as follows: Provided, That where other provisions exist in the Construction Technology Promotion Act or in other statutes, they shall apply: <Amended by Presidential Decree No. 25358, May 22, 2014>
1. Engineering projects amounting to a feasibility study, design, analysis, contracting, purchasing, procurement, testing and evaluation under subparagraph 1 (a) of Article 2 of the Act and estimate under subparagraph 1 of Article 2: From the commencement date of construction, manufacturing, installation or building of the facility which becomes the target of the project to the date when one year passes from the completion date;
2. Engineering projects falling under supervision, trial run, inspection, safety review, management, maintenance or repair under subparagraph 1 (a) of Article 2 of the Act, business management under subparagraph 1 (b) of Article 2 of the Act, review of economic feasibility and functionality of design under subparagraph 2 of Article 2, and analysis and management of system under subparagraph 3 of Article 2: From commencement date of the relevant engineering project to the date when one year passes from the completion date.
(2) The amount of insurance or mutual aid under paragraph (1) shall be the contract deposit.
(3) An engineering business entity shall submit the insurance policy or certificate of mutual aid to an ordering authority by the date when the contract for the relevant engineering project is concluded (in cases of the feasibility study, design, analysis, contracting, purchasing, procurement, testing, evaluation and estimate, the date when the relevant engineering project is completed).
(4) Necessary matters concerning calculation method of amount of insurance or mutual aid or procedure for obtaining coverage by insurance or mutual aid under paragraphs (1) through (3) shall be prescribed and publicly announced by the Minister of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
CHAPTER V ASSOCIATION AND MUTUAL ASSOCIATION
 Article 43 (Matters to Be Stated in Articles of Incorporation of Association)
The articles of incorporation of the Association shall include the following matters:
1. Objectives;
2. Name;
3. Location of the principal office;
4. Business and matters for its execution;
5. Matters on qualifications, admission and withdrawal of members;
6. Matters on rights and obligations of members;
7. Matters on imposition of costs;
8. Matters on disposition of any deficit;
9. Matters on election and removal of officers;
10. Matters on meetings;
11. Matters on accounting;
12. Matters of disposition of residual assets.
 Article 44 (Registration of Mutual Association)
(1) The registered matters of the mutual association established under Article 34 of the Act (hereinafter referred to as the "Mutual Association") shall be as follows:
1. Objectives;
2. Name;
3. Location of the principal office;
4. Date of the approval of the articles of incorporation;
5. Total amount of contributions;
6. Method of contribution and value per contribution unit;
7. Matters on restriction of transfer of contribution certificates;
8. Name and resident registration number of officers (including the address in the case of chief director);
9. Matters on restriction of representative right of chief director and vicarious exercise of authority of chief director;
10. Matters on agents;
11. Method of public notice.
(2) Registration of change of total amount of contributions under paragraph (1) 5 shall be made after the end of the fiscal year as of each fiscal year.
 Article 45 (Matters to Be Stated in Articles of Incorporation of Mutual Association)
The following matters shall be included in the articles of incorporation of the Mutual Association:
1. Objectives;
2. Name;
3. Location of principal office;
4. Matters on business;
5. Matters on qualifications, admission and withdrawal of Mutual Association members;
6. Matters on rights and obligations of Mutual Association members;
7. Matters on the value per contribution unit, method of payment and calculation of equities;
8. Matters on meetings of Mutual Association members and board of directors;
9. Matters on institutions and organizational structure;
10. Matters on officers and employees;
11. Matters on assets and accounting;
12. Matters on disposal of surplus, reserve and deficit;
13. Matters on public notice;
14. Matters on amendment to the articles of incorporation.
 Article 46 (Contribution)
(1) The amount of contributions of the Mutual Association shall be the par value of the total number of contribution unit contributed by the Mutual Association members.
(2) The Mutual Association shall issue the contribution certificates and have them delivered to the contributors.
(3) The amount of contribution per contribution unit shall be equal.
(4) The Mutual Association members shall pay the total amount of contributions by cash and the amount of payment may not be set off against the claims of the Mutual Association.
(5) The liabilities of the Mutual Association members shall be limited to their amount of contributions.
(6) Matters on the amount per contribution unit and other necessary matters on contribution shall be prescribed by the articles of incorporation.
 Article 47 (Transfer and Acquisition of Equities)
(1) Mutual Association members may transfer their equities only to other members or those who intend to be Mutual Association members. In such cases, a transferee shall succeed to the rights and obligations of a transferor.
(2) Where it is necessary for execution of the security right held against the Mutual Association members, the Mutual Association may acquire the equities of such members. In such cases, the Mutual Association shall dispose of such acquired equities as soon as possible.
(3) Where the equities of a member may not be used as a pledge unless they are provided as security for the obligations of the Mutual Association.
 Article 48 (Target Projects Subject to Guarantee and Mutual Aid)
(1) Target projects subject to guarantee and mutual aid under Article 34 (2) 1 of the Act shall be as follows: <Amended by Presidential Decree No. 23905, Jun. 29, 2012>
1. Engineering projects (including package order projects covering activities ranging from purchase to procurement, production, and installation incidental to engineering activities);
2. Any other project falling under the category of engineering activities prescribed in the articles of incorporation of the Mutual Association.
(2) Those intending to export engineering technology overseas shall be subject to guarantee needed to designate a principal bank under Article 34 (2) 2 of the Act, and the Mutual Association should conclude an agreement with a financial institution under subparagraph 1 of Article 2 of the Act on the Structural Improvement of the Financial Industry in order to issue a certificate of guarantee.
(3) The target projects subject to mutual aid under Article 34 (2) 7 of the Act shall be as follows:
1. Projects subject to mutual aid in the form of indemnity insurance pushed by an engineering business entity under Article 42;
2. Other mutual aid projects prescribed in the articles of incorporation of the Mutual Association for the prevention of its members’ bankruptcy and the improvement of the welfare of those employed by its members.
 Article 49 (Limit of Guarantee and Loan)
(1) The limit of guarantee extended by the Mutual Association shall be 40 times the sum of the total amount of contributions and reserves of the Mutual Association: Provided, That where the Mutual Association extends guarantee based on a guarantee or insurance extended by a bank under the Banking Act, an insurance business entity under the Insurance Business Act or its similar institution or by receiving the security, such guarantee shall be excluded in the limit of guarantee.
(2) In determining the limit of guarantee pursuant to paragraph (1), the amount of contributions and reserves shall be applied on the basis of the accounts settled as at the end of the year preceding each business year: Provided, That if, during the business year, the capital has been increased or the assets have been revaluated in accordance with the Assets Revaluation Act, it shall be applied on the basis of the amount of contributions and reserves when the increase of capital or revaluation of assets is finished.
(3) The limit of guarantee to be extended by the Mutual Association to its members per type of guarantee shall be prescribed by the articles of incorporation of the Mutual Association by taking into account the rate of accident per type of guarantee and the credit evaluation of the members.
 Article 50 (Types of Guarantee and Mutual Aid and Guarantee Fees and Premiums of Mutual Aid)
(1) Types of guarantees and mutual aid the Association may provide under Article 34 (2) 1, 2 and 7 of the Act shall be as follows:
1. Performance guarantee;
2. Guarantee of indemnity and mutual aid;
3. Payment guarantee;
4. Mutual aid for those employed by the Mutual Aid members;
5. Other guarantees and mutual aid prescribed in the articles of incorporation.
(2) The Mutual Association may collect the guarantee fees, premiums of mutual aid, interests on loan, fees for bill discount and fees for using the joint-use facilities from those who use the Mutual Association.
(3) The guarantee fees, premiums of mutual aid, interests on loan, fees for bill discount and fees for using the joint-use facilities under paragraph (2) shall be prescribed by the articles of incorporation by taking into account the following matters:
1. Guarantee fees: Total sum of amount of contributions and amount of equities, types of guarantee, limit, credit rating, etc.;
2. Premiums of mutual aid: Targets and types of mutual aid, period of mutual aid, rate of damage, etc.;
3. Interests on loan: Types of loan and amount, term of loan, conditions, etc.;
4. Fees for bill discount: Targets and types of bills, period of payment, etc.;
5. Fees for using the joint-use facilities: Costs for installation and operation of the facilities, depreciation costs, etc.
 Article 51 (Responsibilities of Mutual Aid Association)
Where the Association guarantees the performance of the obligations for the members who are related to the performance of the affairs under Article 34 (2) of the Act, and the cause for the Mutual Association to pay the guarantee deposit as prescribed by the Act on Contracts to which the State is a Party or the Act on Contracts to which a Local Government is a Party, bidding guideline and contracts, it shall pay the guarantee amount to the guaranty creditor in lieu of the members.
 Article 52 (Delegation of Duties of Mutual Association)
The Mutual Association may delegate a part of its duties to a financial institution under subparagraph 1 of Article 2 of the Act on the Structural Improvement of the Financial Industry or the Association by obtaining approval from the board of directors.
 Article 53 (General Meetings of Mutual Association)
(1) The Mutual Aid Association shall have the general meetings and the board of directors as prescribed by the articles of incorporation.
(2) The Mutual Aid members shall have one voting right per contribution unit: Provided, That the Mutual Aid Association that has the acquired the equities pursuant to the former part of Article 47 (2) may not exercise its voting rights and right to elect according to such equities acquired.
 Article 54 (Operational Regulation of Association and Mutual Association)
Matters not provided for herein concerning the operation of the Association and the Mutual Association or other necessary matters concerning the execution of the matters not provided for herein shall be prescribed by the articles of incorporation.
CHAPTER VI SUPPLEMENTARY PROVISIONS
 Article 55 Deleted. <by Presidential Decree No. 27311, Jul. 6, 2016>
 Article 56 (Entrustment of Duties)
(1) The Minister of Trade, Industry and Energy shall entrust any of the following duties to the Association under Article 44 of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
1. Investigation of actual conditions under the main sentence of Article 7 (1) of the Act;
2. Establishment and operation of information systems under Article 8 (1) of the Act;
3. Receipt of reports and requests for supplementation under Article 21 (1) through (3) of the Act;
4. Receipt of reports on succession to the status under Article 23 (2) of the Act;
5. Receipt of reports by engineers, issuance of a certificate of work experience of engineering technology and requests for submission of data under Article 26 (1), (3) and (4) of the Act;
6. Maintenance and management of reported matters under subparagraphs 2 through 4 of Article 34.
(2) Necessary matters concerning treatment of entrusted duties and reporting thereon under paragraph (1) shall be prescribed by Ordinance of the Ministry of Trade, Industry and Energy. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 56-2 (Management of Personally Identifiable Information)
(1) Where unavoidable to conduct the following duties, the Minister of Trade, Industry and Energy (including persons entrusted with his/her duties) may manage data including resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act:
1. Issuance of certificates of the report or report on modification to reported matters by engineers and their careers under Article 26 of the Act;
2. Guidance, supervision, etc. of the Association or the Mutual-Aid Association under Article 38 of the Act.
(2) Where unavoidable to conduct the duty of confirming qualifications of executive officers under Article 37 of the Act, the Association or the Mutual-Aid Association may manage data including resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act.
[This Article Newly Inserted by Presidential Decree No. 25532, Aug. 6, 2014]
CHAPTER VII PENALTY PROVISIONS
 Article 57 (Standards for Imposition of Administrative Fines)
(1) Standards for imposition of administrative fines under Article 48 of the Act shall be as listed in attached Table 6.
(2) The Minister of Trade, Industry and Energy may increase or decrease the amount of a fine for negligence by up to one half of such amount pursuant to attached Table 6, considering the degree, motive, consequences, etc. of the relevant offence: Provided, That the amount so increased shall not exceed the upper limit of amount prescribed in Article 48 of the Act. <Amended by Presidential Decree No. 24442, Mar. 23, 2013>
 Article 58 (Re-Examination of Regulation)
(1) The Minister of Trade, Industry and Energy shall examine the appropriateness of the limit of guarantee under Article 49 (1) every five years counting from January 1, 2016 (referring to the period that ends on the day before January 1 of every fifth year) and shall take measures, such as making improvements. <Newly Inserted by Presidential Decree No. 27311, Jul. 6, 2016>
(2) The Minister of Trade, Industry and Energy shall consider whether the standards in attached Table 6 concerning the types of offence subject to fines for negligence and amount under Article 57 (1) are appropriate by December 31, 2018 and then take action to deregulate or maintain such standards. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27311, Jul. 6, 2016>
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Evaluation of Capacity to Implement Projects)
The amended provisions of Articles 36 through 39 shall apply beginning from the engineering project which is publicly announced for bidding on or after this Decree enters into force.
Article 3 (Applicability to Obtaining Coverage by Indemnity Insurance or Mutual Aid)
The amended provisions of Article 42 shall apply beginning from the engineering project which is first publicly announced for bidding after this Decree enters into force.
Article 4 (Transitional Measures on Designation of Agencies to Foster Professional Human Resources)
Agencies designated as those to foster professional human resources under Article 2-4 of the previous Enforcement Decree of the Engineering Technology Promotion Act as at the time this Decree enters into force shall be deemed agencies designated pursuant to the amended provisions of Article 23.
Article 5 Omitted.
Article 6 (Relationship with Other Statutes and Regulations)
Where the Enforcement Decree of the Engineering Technology Promotion Act or the relevant provisions thereof are cited by other statutes and regulations as at the time this Decree enters into force, if provisions corresponding thereto exist in this Decree, this Decree or the corresponding provisions of this Act shall be deemed to have been cited in lieu of the previous provisions thereof.
ADDENDA <Presidential Decree No. 22977, Jun. 24, 2011>
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. 23248, Oct. 25, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 26, 2011.
Articles 2 through 4 Omitted.
ADDENDA <Presidential Decree No. 23267, Oct. 28, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on October 29, 2011.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 23644, Feb. 29, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That, ... (Omitted.) ... the amended provisions of Articles 2 and 3 of Addenda shall enter into force on July 22, 2012.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 23905, Jun. 29, 2012>
This Decree shall enter into force on the date of its promulgation.
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.
ADDENDA <Presidential Decree No. 25358, May 22, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on May 23, 2014.
Articles 2 through 13 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 day of its promulgation: Provided, That the amendments to the Presidential Decrees to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Decree enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant Presidential Decree.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 27205, May 31, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on September 30, 2016. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDUM <Presidential Decree No. 27311, Jul. 6, 2016>
This Decree shall enter into force on July 28, 2016.
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.
ADDENDUM <Presidential Decree No. 28547, Dec. 29, 2017>
This Decree shall enter into force on the date of its promulgation.