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INDUSTRIAL TECHNOLOGY RESEARCH COOPERATIVES SUPPORT ACT

Act No. 3851, May 12, 1986

Amended by Act No. 6355, Jan. 16, 2001

Act No. 6751, Dec. 5, 2002

Act No. 8829, Dec. 31, 2007

Act No. 8852, Feb. 29, 2008

Act No. 11690, Mar. 23, 2013

Act No. 14839, Jul. 26, 2017

Act No. 15561, Apr. 17, 2018

 Article 1 (Purpose)
The purpose of this Act is to contribute to the development of national economy through the advancement of industrial technology by prescribing matters necessary to incorporate and foster industrial technology research cooperatives to conduct industrial technology research and development and to introduce, disseminate, etc. collaboratively advanced technology, and by supporting such matters.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 2 (Legal Personality)
An industrial technology research cooperative (hereinafter referred to as "cooperative") shall be a corporation.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 3 (Requirements)
A cooperative shall meet the following requirements:
1. It shall contribute to the development of industrial technology;
2. Its members shall be allowed to join therein and withdraw therefrom at their own discretion;
3. Each member's voting right and suffrage shall be equal;
4. It shall not implement any project only for the interest of a certain member.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 4 (Name)
A cooperative shall use the words “research cooperative” in its name.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 5 (Affairs)
A cooperative may conduct the following affairs in order to achieve the purpose provided for in Article 1:
1. Development of technology for its members and management of the outcomes thereof;
2. Technological guidance or in-service education for its members;
3. Introduction of advanced technology of the same kind en bloc for its members and the distribution thereof;
4. Research and development for the assimilation of advanced technology introduced, and for the improvement, and management of the outcomes thereof;
5. Business for supplying facilities and equipment for test and research to ensure that members can jointly access them;
6. Other business deemed necessary for the development of technology.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 6 (Qualifications for Membership)
A person eligible to be a member of a cooperative shall be a person who directly or indirectly uses the outcomes of technology development, etc. made by the cooperative.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 7 (Incorporation of Cooperatives)
Where a cooperative is to be incorporated, at least three promoters qualified as a member are required.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 8 (Authorization of Incorporation of Cooperatives)
(1) Promoters shall submit an application for authorization to incorporate a cooperative, together with articles of incorporation and documents stating matters prescribed by Presidential Decree, to the Minister of Science and ICT within 30 days of the inaugural general meeting and obtain authorization for incorporation. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) Within 50 days of receiving the application for authorization under paragraph (1), the Minister of Science and ICT shall notify the person submitting such application of whether the authorization is granted. <Newly Inserted by Act No. 15561, Apr. 17, 2018>
(3) Where the Minister of Science and ICT fails to notify the person submitting the application of whether the authorization is granted or of the fact that the period is extended pursuant to statutes regarding civil petitions treatment within the period prescribed under paragraph (2), the authorization shall be regarded granted on the day following the end of the period (where the period is extended or re-extended pursuant to statutes regarding civil petitions treatment, it refers to the relevant treatment period). <Newly Inserted by Act No. 15561, Apr. 17, 2018>
(4) Matters necessary for the standards, etc. for authorization to incorporate cooperatives under paragraph (1) in addition to the matters prescribed by this Act shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 9 (Matters to be Mentioned in Articles of Incorporation)
(1) The articles of incorporation of a cooperative shall contain the following matters:
1. Its objectives;
2. Its name;
3. Matters concerning its affairs and the implementation (especially tasks of technological development) thereof;
4. Location of its main office;
5. Matters concerning qualifications for membership, joining therein and withdrawing therefrom;
6. Matters concerning the imposition of expenses;
7. Matters concerning the management of losses;
8. Matters concerning the number and appointment of executive officers;
9. Matters concerning meetings;
10. Matters concerning accounting;
11. Matters concerning the rights and duties of members (especially duty to cooperate with one another);
12. Matters concerning the disposal of residual property.
(2) Where the period of existence of a cooperative or cause for the dissolution thereof is determined, the period of existence or cause for dissolution shall be entered in the articles of incorporation.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 10 (Amendment of Articles of Incorporation)
(1) Where a cooperative intends to amend its articles of incorporation, it shall obtain authorization from the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) Article 8 (4) shall apply mutatis mutandis to the authorization under paragraph (1). <Amended by Act No. 15561, Apr. 17, 2018>
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 11 (Imposition of Expenses)
(1) A cooperative may impose expenses incurred in the performance of its affairs, on its members, as determined by the articles of incorporation.
(2) With regard to the payment of expenses under paragraph (1), the members of a cooperative shall not prevail against the cooperative by setoff.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 12 (Support from Fund)
The Government may give priority to providing all or part of the money needed for the business of a cooperative and to a member who commercializes the results of research conducted by a cooperative from a fund created to foster industry.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 13 (Support in Taxation)
The Government may grant the following support in taxation, as prescribed by the Restriction of Special Taxation Act:
1. Deducting an amount equivalent to a certain percentage of the money paid by a member to a cooperative pursuant to Article 11 from the income tax of the member or corporate tax for the relevant year;
2. Exempting value-added tax on the income of a member where a cooperative outsources to him/her the research and development regarding industrial technology belonging to the business of the cooperative;
3. Exempting individual consumption tax on the samples for test and research purposes that a cooperative imports in order to develop a new product or new technology;
4. Reducing customs duty on products for research and development purposes that a cooperative imports for use.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 14 (Preferential Participation in National Research and Development Projects)
If the Government promotes a national research and development project, it shall cause cooperatives to participate therein preferentially: Provided, That where it is a research and development project concerning national defense, this shall not apply.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 15 (Preferential Purchase, etc.)
The Minister of Science and ICT may request the heads of relevant agencies to preferentially purchase the products produced by a member of a cooperative who commercializes the results of research conducted by the cooperative and to take other measures necessary to protect market. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 16 (Submission of Reports on Business Results and Settlement of Accounts)
Every year, a cooperative shall submit a report on business results and on the settlement of accounts to the Minister of Science and ICT, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 17 (Examinations)
(1) Where the Minister of Science and ICT deems that the business or accounting of a cooperative violates a statute or the articles of incorporation, he/she may require the cooperative to make a report on its business or accounting or require relevant public officials to make an examination. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
(2) Public official making an examination pursuant to paragraph (1) shall carry a certificate indicating their authority and produce it to relevant persons.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 18 (Application Mutatis Mutandis of Civil Act)
The provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis to cooperatives in addition to the matters prescribed by this Act.
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Article 19 (Administrative Fines)
(1) Any person who fails to report under Article 17, reports falsely, or obstructs or refuses an examination shall be punished by an administrative fine not exceeding 500,000 won.
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Science and ICT. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017>
[This Article Wholly Amended by Act No. 9687, May 21, 2009]
 Articles 20 and 21 Deleted. <by Act No. 6355, Jan. 16. 2001>
ADDENDA
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measures concerning Cooperatives) An industrial technology research cooperative incorporated pursuant to the previous Technology Development Promotion Act shall be deemed an industrial technology research cooperative established pursuant to this Act: Provided, That such cooperative shall obtain authorization from the Minister of Science and Technology after modifying the articles of incorporation that comply with the provisions of this Act within six months from the date this Act enters into force.
(3) and (4) Omitted.
ADDENDA <Act No. 6355, Jan. 16, 2001>
(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.
(2) (Transitional Measures concerning Penalty Provisions) Previous penalty provisions shall apply to acts committed before this Act enters into force.
ADDENDUM <Act No. 6751, Dec. 5, 2002>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Act No. 8829, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008.
Articles 2 through 12 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM <Act Decree No. 9687, May 21, 2009>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation
(2) Omitted.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation: Provided, That, where any Act amended by Article 5 of this Addenda has been promulgated but is yet to enter into force by the time this Act enters into force, amendments to such Act shall enter into force on the enforcement date of such relevant Act.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 15561, Apr. 17, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force one month after the date of its promulgation
Article 2 (Applicability concerning Authorization of Incorporation of Cooperatives)
The amended provisions of Article 8 (2) and (3) shall apply to applications for authorization of incorporation submitted after this Act enters into force.