INDUSTRIAL CONVERGENCE PROMOTION ACT
Act No. 10547, Apr. 5, 2011
Amended by Act No. 12609, May 20, 2014
Act No. 14839, Jul. 26, 2017
Act No. 15085, Nov. 28, 2017
Act No. 15344, Jan. 16, 2018
Act No. 15828, Oct. 16, 2018
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to contribute to the continuous development of the national economy and the enhancement of the quality of lives of people by providing for matters regarding a system for the promotion of industrial convergence and assistance therein to develop infrastructure for industrial convergence and enhance the competitiveness of industries.
The definitions of the terms used in this Act are as follows: <Amended by Act No. 15828, Oct. 16, 2018>
| 1. | The term "industrial convergence" means activities for innovating existing industries or creating new industries with societal and market values through creative combination and convergence between industries, between technologies and industries, and between technologies; |
| 2. | The term "new product of industrial convergence" means a product made as an outcome of industrial convergence, which has great economic and technical ripple effects, and excellent functions and quality; |
| 3. | The term "new convergence industries" means new industries that are highly marketable with a high ripple effect and high growth potential, and that greatly contribute to developing the national economy among industrial sectors newly created through industrial convergence; |
| 4. | The term "related central administrative agency" means a central administrative agency that administers affairs related to industrial convergence; |
| 5. | The term "competent central administrative agency" means a central administrative agency that administers various kinds of permission, approval, certification, validation, and authorization under each relevant statute and regulation related to new products of industrial convergence; |
| 6. | The term "manufacturer, etc." means any person who intends to manufacture, sell, install, or operate new products of industrial convergence; |
| 7. | The term "service of industrial convergence" means a service that considerably enhances the competitiveness and efficiency of existing services or creates new markets, by utilizing the outcomes of industrial convergence; |
| 8. | The term "regulatory exceptions for demonstration" means not applying all or part of the relevant regulation to a new product of industrial convergence or service of industrial convergence (hereinafter referred to as "new product or service of industrial convergence") for tests, verifications, etc. of the new product or service when it is impracticable to conduct business because it is impossible to apply for permission, approval, certification, verification, authorization, etc. (hereinafter referred to as "permission, etc.") for the new product or service under other statutes or regulations; because the statutes or regulations applicable to permission, etc. do not provide for standards, specifications, requirements, or the like; or because it is inappropriate to apply thereto the standards, specifications, requirements, or the like under relevant statutes or regulations; |
| 9. | The term "temporary permission" means permission, etc. temporarily granted for a specified period if safety is ensured, where the statutes or regulations applicable to permission, etc. for the new product or service of industrial convergence do not provide for standards, specifications, requirements, or the like; or where it is inappropriate to apply thereto the standards, specifications, requirements or the like under relevant statutes or regulations. |
| Article 3 (Responsibilities of the State) |
| (1) | The State and local governments shall prepare measures necessary for the promotion of industrial convergence. |
| (2) | The State and local governments shall endeavor to perform the following affairs for the promotion of industrial convergence: |
| 1. | Establishment of a system for the promotion of industrial convergence and the improvement of relevant systems; |
| 2. | Assistance in research projects related to industrial convergence; |
| 3. | Enhancement of capabilities of small and medium enterprises, etc. for industrial convergence. |
| (3) | Universities, industrial universities, teachers' colleges, junior colleges, cyber colleges, and technical colleges under subparagraphs 1 through 6 of Article 2 of the Higher Education Act (hereinafter referred to as "universities") and research institutes shall train human resources competent for industrial convergence and shall endeavor to boost related research. |
| (4) | Manufacturers, etc. shall endeavor to promote industrial convergence through the development of new products of industrial convergence and shall participate and cooperate in the Government's measures for industrial convergence. |
| Article 3-2 (Permit-First-Regulate-Later Principle) |
| (1) | In principle, the State and each local government shall grant permission to new products or services of industrial convergence: Provided, That where any new product or service of industrial convergence harms the lives or safety of the people or significantly deteriorates the environment, they may restrict such new product or service. |
| (2) | The State and each local government shall seek measures to improve statutes, regulations, and systems related to new products or services of industrial convergence under their jurisdiction in line with the principle specified in paragraph (1). |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 4 (Relationship to Other Statutes) |
This Act shall prevail over other statutes with respect to the promotion of industrial convergence: Provided, That where more relaxed provisions exist in other statutes than the regulation specified in this Act, such statutes shall govern.
[This Article Wholly Amended by Act No. 15828, Oct. 16, 2018]
CHAPTER II ESTABLISHMENT OF SYSTEM FOR PROMOTION OF INDUSTRIAL CONVERGENCE
| Article 5 (Formulation and Implementation of Master Plans for Developing Industrial Convergence) |
| (1) | In order to promote industrial convergence efficiently, the Government shall formulate and implement a master plan for developing industrial convergence (hereinafter referred to as "master plan") every five years through deliberation by the Deliberative Committee on Regulatory Exceptions for Industrial Convergence established under Article 8 (hereinafter referred to as the "Deliberative Committee on Regulatory Exceptions"), as prescribed by Presidential Decree. <Amended by Act No. 15828, Oct. 16, 2018> |
| (2) | A master plan shall include the following: |
| 1. | The goals of the development of industrial convergence and the basic direction-setting of policies thereon; |
| 2. | A plan for the enforcement of relevant policies, such as industrial policies for the development of industrial convergence; |
| 3. | Preparation of systems related to industrial convergence; |
| 4. | Expansion of investment for industrial convergence; |
| 5. | Enhancement of capabilities for innovation for industrial convergence; |
| 6. | Promotion of research and development focused on practical use of industrial convergence; |
| 7. | Diffusion of outcomes of research on industrial convergence and promotion of commercialization; |
| 8. | Promotion of international cooperation and overseas expansion in connection with industrial convergence; |
| 9. | Matters regarding surveys and analysis on the actual status of certification of new products of industrial convergence and the improvement of systems therefor; |
| 10. | Other matters specified by Presidential Decree as those necessary for the development of industrial convergence. |
| (3) | If necessary for the formulation of a master plan, the head of the related central administrative agency may request local governments, related educational or research institutes, and legal entities or organizations that participate in national research and development projects to submit necessary data. |
| Article 6 (Formulation and Implementation of Annual Implementation Plans) |
| (1) | The head of the related central administrative agency shall formulate and implement an annual implementation plan (hereinafter referred to as "implementation plan") in accordance with a master plan. In such cases, results of deliberation by the Deliberative Committee on Regulatory Exceptions shall be reflected in an implementation plan. <Amended by Act No. 15828, Oct. 16, 2018> |
| (2) | When an implementation plan is formulated pursuant to paragraph (1), the head of the related central administrative agency shall submit it to the Deliberative Committee on Regulatory Exceptions, accompanied by a report on the performance of the implementation plan for the previous year. <Amended by Act No. 15828, Oct. 16, 2018> |
| (3) | Except as provided in paragraphs (1) and (2), matters necessary for the formulation, implementation, submission, etc. of implementation plans shall be prescribed by Presidential Decree. |
| Article 7 (Surveys on and Preparation of Statistics Related to Industrial Convergence) |
| (1) | The head of the related central administrative agency shall conduct surveys and prepare statistics related to industrial convergence as may be necessary for formulating a master plan and implementation plans. |
| (2) | Matters necessary for the subject matters of surveys for statistics related to industrial convergence under paragraph (1) and the scope of preparation of such statistics shall be prescribed by Presidential Decree. |
| Article 8 (Deliberative Committee on Regulatory Exceptions for Industrial Convergence) |
| (1) | To deliberate on and coordinate policies related to industrial convergence, such as matters concerning regulatory exceptions for demonstration referred to in Article 10-3 and temporary permission referred to in Article 10-5, the Deliberative Committee on Regulatory Exceptions for Industrial Convergence (hereafter in this Article referred to as the "Committee") shall be established under the jurisdiction of the Minister of Trade, Industry and Energy. <Amended by Act No. 15828, Oct. 16, 2018> |
| (2) | The Committee shall deliberate on and coordinate the following: <Amended by Act No. 11713, Mar. 23, 2013; Act No. 15344, Jan. 16, 2018; Act No. 15828, Oct. 16, 2018> |
| 1. | Establishing and coordinating major policies and plans for the promotion of industrial convergence; |
| 2. | Matters regarding formulating and implementing a master plan; |
| 3. | Matters regarding implementation plans and reports on the performance of implementation plans for the previous year, which shall be submitted by the heads of the related central administrative agencies under Article 6 (2); |
| 4. | Matters regarding schemes for securing finances for industrial convergence; |
| 5. | Matters regarding assistance in promoting industrial convergence; |
| 6. | Matters regarding national standards and certification related to industrial convergence; |
| 7. | Grievances and suggestions from enterprises regarding industrial convergence and matters reported by the Industrial Convergence Ombudsman pursuant to Article 10 (7); |
| 8. | Matters regarding assistance to new convergence industries; |
| 9. | Matters the head of the related central administrative agency requests relating to the promotion of industrial convergence; |
| 10. | Matters regarding regulatory exceptions for demonstration and temporary permission; |
| 11. | Other matters brought by the chairperson of the Committee for deliberation. |
| (3) | The Committee shall be comprised of not more than 25 members, including one chairperson. |
| (4) | The Minister of Trade, Industry and Energy shall serve as the chairperson; and a person appointed by the Minister of Science and ICT from among public officials of the Ministry of Science and ICT and a person appointed by the Minister of Trade, Industry and Energy from among public officials of the Ministry of Trade, Industry and Energy shall jointly serve as secretaries, while the following persons shall serve as members: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 14839, Jul. 26, 2017; Act No. 15828, Oct. 16, 2018> |
| 1. | The Vice Ministers or vice-ministerial level public officials of the Ministry of Economy and Finance; the Ministry of Science and ICT; the Ministry of the Interior and Safety; the Ministry of Culture, Sports and Tourism; the Ministry of Agriculture, Food and Rural Affairs; the Ministry of Health and Welfare; the Ministry of Environment; the Ministry of Employment and Labor; the Ministry of Land, Infrastructure and Transport; the Ministry of Oceans and Fisheries; the Ministry of SMEs and Startups; the Financial Services Commission; and related central administrative agencies prescribed by Presidential Decree; |
| 2. | A person commissioned by the chairperson from among persons with extensive knowledge of and experience in industrial convergence, such as matters concerning regulatory exceptions for demonstration and temporary permission. |
| (5) | The chairperson shall represent the Committee and have overall control over the affairs of the Committee. |
| (6) | If the chairperson is unable to perform his or her duties due to inevitable reasons, a member pre-designated by the chairperson shall act on behalf of the chairperson. |
| (7) | The term of office for a member commissioned pursuant to paragraph (4) 2 shall be two years. |
| (8) | If deemed necessary, the chairperson shall convene and preside over a meeting. |
| (9) | A majority of the members of the Committee shall constitute a quorum, and any decision thereof shall require the concurring vote of a majority of those present. |
| (10) | The Committee may have special subcommittees to examine, coordinate, or handle affairs delegated by the Committee; to efficiently conduct, and assist in, the affairs of the Committee; and to determine or coordinate the competent agency regarding regulatory exceptions for demonstration, temporary permission, etc. <Amended by Act No. 15828, Oct. 16, 2018> |
| (11) | Except as provided in paragraphs (1) through (10), matters necessary for compositing and operating the Committee and special subcommittees shall be prescribed by Presidential Decree. |
| Article 8-2 (Composition and Operation of Conflict Mediation Committees) |
| (1) | The Deliberative Committee on Regulatory Exceptions may establish a conflict mediation committee for each case if necessary to resolve conflicts with existing business entities, etc., due to the emergence of new products or services of industrial convergence. |
| (2) | Any other matters necessary for composing and operating conflict medication committees shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 9 (Recommendation of Improvement of Statutes and Regulations Relevant to New Convergence Industries) |
| (1) | When the head of the related central administrative agency seeks enactment or amendment of a statute or regulation related to the assistance to new convergence industries, the Deliberative Committee on Regulatory Exceptions may present its opinion on matters such as the necessity of the enactment or amendment of the relevant statute or regulation or may recommend a scheme for reasonable improvement. <Amended by Act No. 15828, Oct. 16, 2018> |
| (2) | Upon receiving an opinion or recommendation for improvement pursuant to paragraph (1), the head of the related central administrative agency shall respect the opinion or recommendation for improvement presented by the Deliberative Committee on Regulatory Exceptions, in enacting or amending the relevant statute or regulation, unless there is a compelling reason not to do so. <Amended by Act No. 15828, Oct. 16, 2018> |
| Article 10 (Industrial Convergence Ombudsman) |
| (1) | In order to promote industrial convergence, the Minister of Trade, Industry and Energy shall receive grievances and suggestions from enterprises related to industrial convergence, conduct investigations thereon, and prepare a scheme for improving systems related to industrial convergence. <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | In order to assist in the affairs under paragraph (1), the Ministry of Trade, Industry and Energy shall appoint an industrial convergence ombudsman; and an administrative organization may be established in an institution or corporation that meets the requirements prescribed by Presidential Decree to assist the ombudsman in performing his or her affairs. <Amended by Act No. 11690, Mar. 23, 2013; Act No. 15828, Oct. 16, 2018> |
| (3) | The Industrial Convergence Ombudsman shall be commissioned by the Minister of Trade, Industry and Energy from among experts in industrial convergence from private institutions or organizations, and the Ombudsman shall perform the following affairs: <Amended by Act No. 11690, Mar. 23, 2013; Act No. 15828, Oct. 16, 2018> |
| 1. | Receiving and addressing grievances and suggestions from enterprises related to industrial convergence; |
| 2. | Identifying and improving regulation related to industrial convergence; |
| 3. | Other affairs prescribed by Presidential Decree regarding the promotion of industrial convergence. |
| (4) | To perform the affairs specified in paragraph (3), the Industrial Convergence Ombudsman may make recommendations for improving relevant matters, to the heads of related administrative agencies and the heads of appropriate agencies. <Amended by Act No. 15828, Oct. 16, 2018> |
| (5) | The heads of related administrative agencies and the heads of appropriate agencies shall inform the Industrial Convergence Ombudsman of their opinions on matters for which improvement has been recommended pursuant to paragraph (4) within 30 days. <Newly Inserted by Act No. 15828, Oct. 16, 2018> |
| (6) | The Industrial Convergence Ombudsman shall inspect the status of implementation of improvements recommended pursuant to paragraph (4), and may publish the relevant details if the head of any agency in receipt of a recommendation fails to implement the recommendation without just cause. <Newly Inserted by Act No. 15828, Oct. 16, 2018> |
| (7) | The Industrial Convergence Ombudsman shall report to the Deliberative Committee on Regulatory Exceptions on necessary matters informed pursuant to paragraph (5). <Amended by Act No. 15828, Oct. 16, 2018> |
| (8) | The Minister of Trade, Industry and Energy may provide administrative and financial assistance necessary for operating the Office of the Industrial Convergence Ombudsman. <Newly Inserted by Act No. 15828, Oct. 16, 2018> |
| (9) | Except as provided in paragraphs (1) through (8), matters necessary for establishing and operating the Office of the Industrial Convergence Ombudsman shall be prescribed by Presidential Decree. <Newly Inserted by Act No. 15828, Oct. 16, 2018> |
CHAPTER III REGULATORY EXCEPTIONS FOR DEMONSTRATION OF NEW PRODUCTS OR SERVICES OF INDUSTRIAL CONVERGENCE
| Article 10-2 (Prompt Verification of Regulation) |
| (1) | A person who intends to conduct business by utilizing a new product or service of industrial convergence, may apply for verification as to whether permission, etc. are required for such new product or service to the Minister of Trade, Industry and Energy. |
| (2) | Where an application filed under paragraph (1) falls under the jurisdiction of another agency, the Minister of Trade, Industry and Energy shall notify the head of the related administrative agency thereof. |
| (3) | Upon receiving notice under paragraph (2), the head of the related administrative agency shall reply to the Minister of Trade, Industry and Energy as to whether the relevant application falls under its jurisdiction and whether permission, etc. are required, within 30 days. Where the head of the related administrative agency fails to reply within 30 days, the application shall be deemed outside of its jurisdiction, or a permission, etc. from the head of the related administrative agency shall be deemed unnecessary. |
| (4) | Where the head of the related administrative agency deems that the application filed under paragraph (1) requires permission, etc. under the relevant statutes or regulations, he or she shall reply to the Minister of Trade, Industry and Energy regarding the conditions, procedures, etc. necessary for obtaining permission, etc., and the Minister shall immediately notify the applicant thereof. |
| (5) | Matters outside the jurisdiction of other related administrative agencies regarding promptly verifying regulation in the field of industrial convergence, shall be handled by the Minister of Trade, Industry and Energy. |
| (6) | Except as provided in paragraphs (1) through (5), matters necessary for promptly verifying regulation, etc. shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 10-3 (Regulatory Exceptions for Demonstration) |
| (1) | A person who intends to conduct business for the purposes of testing or verifying a new product or service of industrial convergence, may apply for regulatory exceptions for demonstration of such new product or service (hereafter in this Article referred to as “regulatory exception”) to the Minister of Trade, Industry and Energy, in any of the following cases: |
| 1. | Where the statutes or regulations applicable to permission, etc. provide for no standards, specifications, requirements, or the like suitable for the relevant new product or service of industrial convergence; |
| 2. | Where it is inappropriate to apply the standards, specifications, requirements, or the like specified in the statutes or regulations applicable to permission, etc., to the relevant new product or service of industrial convergence; |
| 3. | Where demonstration is required, within a limited area, period, or scale, for a new product or service of industrial convergence for which it is impossible to apply for permission, etc. under other statutes or regulations. |
| (2) | An applicant for a regulatory exception referred to in paragraph (1) shall purchase liability insurance to compensate for personal and property damage that may occur as a result of the business subject to the regulatory exception, prior to commencing the relevant business: Provided, That where a business entity that has been granted a regulatory exception is unable to purchase liability insurance, he or she shall formulate compensatory measures in case of any personal or property damage arising out of a regulatory exception in a separate consultation with the Minister of Trade, Industry and Energy; and the methods, standards, and procedures for making compensation and other necessary matters shall be prescribed by Presidential Decree. |
| (3) | Where an application is filed under paragraph (1), the Minister of Trade, Industry and Energy shall notify the head of the related administrative agency of the details thereof; and the head of the related administrative agency shall review the details of the application and reply in writing to the Minister of Trade, Industry and Energy regarding the results of the review within 30 days: Provided, That where it is impracticable to specify the competent administrative agency, the Minister of Trade, Industry and Energy shall process the application under his or her jurisdiction. |
| (4) | Where the head of the related administrative agency requires an applicant for a regulatory exception to supplement data in order to review the granting of the regulatory exception, the period spent in supplementing the data shall not be included in the period for reply specified in paragraph (3): Provided, That even in such cases, the head of the related administrative agency shall reply within 90 days regarding the results of the review and may request an extension of the period for reply only once where it is impossible to reply. |
| (5) | The Minister of Trade, Industry and Energy shall present an application filed under paragraph (1) to the Deliberative Committee on Regulatory Exceptions, including reviews by the related administrative agency. In such cases, the Minister may request the head of the related administrative agency to attend a meeting of the Deliberative Committee on Regulatory Exceptions. |
| (6) | The Deliberative Committee on Regulatory Exceptions shall deliberate on the area, period, and scale of the regulatory exception as well as on whether to grant permission for the regulatory exceptions, considering the following: |
| 1. | A business implementation plan; |
| 2. | Innovativeness of the relevant new product or service of industrial convergence, as well as user convenience; |
| 3. | Future growth potential of the relevant market; |
| 4. | Likelihood that demonstration may cause irrecoverable damage, as well as the appropriateness of measures to compensate for damage; |
| 5. | Harm to the lives, health, and safety of the people; harm to the environment; and hindrances to balanced regional development; as well as the safe protection and management of personal information; |
| 6. | Any other matters necessary for granting a regulatory exception. |
| (7) | If necessary to ensure safety, etc., the Deliberative Committee on Regulatory Exceptions may attach conditions. |
| (8) | The Minister of Trade, Industry and Energy shall grant a regulatory exception regarding the relevant product or service of industrial convergence based on the results of deliberation and coordination under paragraphs (6) and (7). |
| (9) | Where the Minister of Trade, Industry and Energy grants a regulatory exception pursuant to paragraph (8), he or she shall notify the applicant for the regulatory exception, of the examination criteria for regulatory exceptions regarding the relevant new product or service of industrial convergence. |
| (10) | The validity period of a regulatory exception shall be determined by the Deliberative Committee on Regulatory Exceptions, to an extent not exceeding two years: Provided, That where the statutes and regulations related to the regulatory exception are not improved before the validity period expires, the Minister of Trade, Industry and Energy may extend the period once. |
| (11) | Where a person intends to obtain an extension of the validity period of a regulatory exception under the proviso of paragraph (10), he or she shall file an application with the Minister of Trade, Industry and Energy at least two months before the validity period expires. |
| (12) | A person who provides a new product or service of industrial convergence after being granted a regulatory exception therefor pursuant to paragraph (8), shall be liable if any personal or property damage occurs from such new product or service: Provided, That this shall not apply where a person who has been granted the regulatory exception proves that there was no intent or negligence on his or her part. |
| (13) | The head of the related administrative agency may provide necessary assistance to facilitate business for demonstration. |
| (14) | Details relating to paragraphs (1) through (13), and the examination criteria, procedures, and methods for granting a regulatory exception, as well as other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 10-4 (Management and Supervision of Regulatory Exceptions for Demonstration) |
| (1) | The Minister of Trade, Industry and Energy and the head of the related administrative agency shall jointly manage and supervise demonstrations, etc. held under a regulatory exception for demonstration granted pursuant to Article 10-3 (8). |
| (2) | The head of the related administrative agency and a person who intends to provide a demonstration under a regulatory exception for demonstration granted pursuant to Article 10-3 (8), shall supply users of the relevant new product or service of industrial convergence with readily understandable information regarding the regulatory exception for demonstration granted, the validity period, etc.; and shall actively respond to issues relating to harm to the lives, health, and safety of the people, harm to the environment, hindrances to balanced regional development, the safe protection and management of personal information, etc. |
| (3) | A business entity that has been granted a regulatory exception for demonstration pursuant to Article 10-3 (8), shall submit the results of the application of the regulatory exception and business results to the Minister of Trade, Industry and Energy and the head of the related administrative agency, within 30 days from the date the period for regulatory exception expires. |
| (4) | The head of the related administrative agency shall review the necessity to improve statues or regulations related to the regulatory exception, based on the results of application of the regulatory exception and business results submitted pursuant to paragraph (3); shall report the results of the review to the Deliberative Committee on Regulatory Exceptions; and shall promptly commence improving the statutes or regulations if he or she deems it necessary to improve the statutes or regulations. |
| (5) | Where the head of the related administrative agency deems it necessary to improve statutes or regulations, he or she shall immediately commence improving the statutes or regulations even before the period for regulatory exceptions for demonstration expires. |
| (6) | Where a person who has been granted a regulatory exception for demonstration falls under any of the following cases, the Minister of Trade, Industry and Energy may revoke the application of the regulatory exception for demonstration; or may issue a rectification order: Provided That the Minister shall revoke the application thereof if the person falls under subparagraph 1: |
| 1. | Where the person falls under the application of the regulatory exception for demonstration, by fraud or other improper means; |
| 2. | Where the person ceases to meet the conditions specified in Article 10-3 (7) or the examination criteria specified in Article 10-3 (9); |
| 3. | Where the purpose of the regulatory exception for demonstration is deemed clearly impossible to accomplish. |
| (7) | No person for whom the application of regulatory exceptions for demonstration has been revoked pursuant to paragraph (6) shall engage in selling, using, providing, etc. the relevant new product or service of industrial convergence. |
| (8) | Details relating to paragraphs (1) through (7), the procedures for revoking the application of regulatory exceptions for demonstration, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 10-5 (Temporary Permission) |
| (1) | A person who intends to conduct business by utilizing a new product or service of industrial convergence, may apply for temporary permission for such new product or service to the Minister of Trade, Industry and Energy, in any of the following cases: |
| 1. | Where the statutes or regulations applicable to permission, etc. provide for no standards, specifications, requirements, or the like suitable for the relevant new product or service of industrial convergence; |
| 2. | Where it is inappropriate to apply the standards, specifications, requirements, or the like specified in the statutes or regulations applicable to permission, etc., to the relevant new product or service of industrial convergence. |
| (2) | An applicant for temporary permission referred to in paragraph (1) shall purchase liability insurance to compensate for personal and property damage that may occur as a result of the business subject to temporary permission, prior to commencing the relevant business: Provided, That where a business entity that has obtained temporary permission is unable to purchase liability insurance, he or she shall formulate compensatory measures in case of any personal or property damage arising out of the temporary permission in a separate consultation with the Minister of Trade, Industry and Energy; and the methods, standards, and procedures for making compensation and other necessary matters shall be prescribed by Presidential Decree. |
| (3) | Where an application is filed under paragraph (1), the Minister of Trade, Industry and Energy shall notify the head of the related administrative agency of the details thereof; and the head of the related administrative agency shall review the details of the application and reply in writing to the Minister of Trade, Industry and Energy regarding the results of the review within 30 days: Provided, That where it is impracticable to specify the competent administrative agency, the Minister of Trade, Industry and Energy shall process the application under his or her jurisdiction. |
| (4) | Where the head of the related administrative agency requires an applicant for temporary permission to supplement data in order to review the granting of temporary permission, the period spent in supplementing the data shall not be included in the period for reply specified in paragraph (3): Provided, That even in such cases, the head of the related administrative agency shall reply within 90 days regarding the results of the review and may request an extension of the period for reply only once where it is impossible to reply. |
| (5) | The Minister of Trade, Industry and Energy shall present an application filed under paragraph (1) to the Deliberative Committee on Regulatory Exceptions, including reviews by the related administrative agency. In such cases, the Minister may request the head of the related administrative agency to attend a meeting of the Deliberative Committee on Regulatory Exceptions. |
| (6) | The Deliberative Committee on Regulatory Exceptions shall deliberate on whether to grant temporary permission, considering the following; and in such cases, the Committee may attach necessary conditions, such as an order requiring tests or inspections to be conducted by an institution or organization equipped with experts and technology to ensure safety, etc.: |
| 1. | A business implementation plan; |
| 2. | Innovativeness of the relevant new product or service of industrial convergence, as well as user convenience; |
| 3. | Likelihood that the relevant new product or service of industrial convergence may cause irrecoverable damage, as well as the appropriateness of measures to compensate for damage; |
| 4. | Harm to the lives, health, and safety of the people; harm to the environment; and hindrances to balanced regional development; as well as the safe protection and management of personal information. |
| (7) | The Minister of Trade, Industry and Energy shall grant temporary permission to the relevant product or service of industrial convergence based on the results of deliberation and coordination under paragraph (6). |
| (8) | Where the Minister of Trade, Industry and Energy grants temporary permission pursuant to paragraph (7), he or she shall notify the applicant for temporary permission, of the examination criteria for granting temporary permission for the relevant new product or service of industrial convergence. |
| (9) | The validity period of temporary permission shall be determined by the Deliberative Committee on Regulatory Exceptions, to an extent not exceeding two years: Provided, That where the statutes and regulations applicable to permission, etc. for the relevant new product or service of industrial convergence eligible for temporary permission are not improved before the validity period expires, the Minister of Trade, Industry and Energy may extend the period once. |
| (10) | Where a person intends to obtain an extension of the validity period of temporary permission under the proviso of paragraph (9), he or she shall file an application with the Minister of Trade, Industry and Energy at least two months before the validity period expires. |
| (11) | A person who provides a new product or service of industrial convergence after obtaining temporary permission therefor pursuant to paragraph (7), shall be liable if any personal or property damage occurs from such new product or service: Provided, That this shall not apply where a person who has obtained such temporary permission proves that there was no intent or negligence on his or her part. |
| (12) | The head of the related administrative agency shall commence improving the statutes and regulations applicable to permission, etc. for the relevant new product or service of industrial convergence before the validity period expires for the temporary permission referred to in paragraph (9). |
| (13) | Where the statutes and regulations applicable to permission, etc. are not completely improved within the validity period of temporary permission extended pursuant to the proviso of paragraph (9), the validity period shall be deemed extended until the improvements of statutes and regulations are completed. |
| (14) | Where the statutes and regulations applicable to permission, etc. for the relevant new product or service of industrial convergence are prepared, the person who has obtained temporary permission therefor shall obtain permission, etc. under such statutes and regulations without delay. |
| (15) | Details relating to paragraphs (1) through (14), and the examination criteria, procedures, and methods for granting temporary permission, as well as other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 10-6 (Revocation of Temporary Permission) |
| (1) | Where a person who has obtained temporary permission pursuant to Article 10-5 (7) falls under any of the following cases, the Minister of Trade, Industry and Energy may revoke the temporary permission or issue a rectification order: Provided That the Minister shall revoke the temporary permission if the person falls under subparagraph 1: |
| 1. | Where the person has obtained the temporary permission by fraud or other improper means; |
| 2. | Where the person ceases to meet the conditions specified in the latter part of Article 10-5 (6) or the examination criteria for granting temporary permission specified in Article 10-5 (8). |
| (2) | No person for whom temporary permission has been revoked pursuant to paragraph (1) shall engage in selling, using, providing, etc. the relevant new product or service of industrial convergence. |
| (3) | Details relating to the revocation of temporary permission, the procedures for such revocation, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted by Act No. 15828, Oct. 16, 2018]
| Article 11 (Application for Certification of Conformity of New Products of Industrial Convergence) |
| (1) | If a manufacturer, etc. fail to obtain any permission, etc. on any of the following grounds under a statute or regulation relating to a new product of industrial convergence, he or she may file an application with the head of the competent central administrative agency for the certification of compliance of the new product of industrial convergence (hereinafter referred to as "certification of compliance"), as prescribed by Presidential Decree. If competent central administrative agencies involved in such cases are two or more, an application may be filed with the head of any competent central administrative agency among them, and the head of the competent central administrative agency that receives such application shall forward a copy of the application to the heads of other competent central administrative agencies immediately: <Amended by Act No. 15828, Oct. 16, 2018> |
| 1. | Where the statutes or regulations applicable to permission, etc. provide for no standards, specifications, requirements, or the like suitable for the relevant new product or service of industrial convergence; |
| 2. | Where it is inappropriate to apply the standards, specifications, requirements or the like specified in the statutes or regulations applicable to permission, etc., to the relevant new product or service of industrial convergence. |
| (2) | Upon receiving an application for the certification of compliance under paragraph (1), the head of the competent central administrative agency shall notify the manufacturer, etc., who file the application for the certification of compliance, of whether the product is subject to the examination for certification of compliance and the estimated period that may take for examination, as prescribed by Presidential Decree. If competent central administrative agencies involved in such cases are two or more, the head of the competent central administrative agency that receives an application shall consult in advance with the heads of other competent central administrative agencies with whom the application for the certification of compliance is not filed with regard to the matters to be notified before giving notice, and the heads of the competent central administrative agencies in receipt of a request for such consultation shall present their opinions within 10 days from the day on which they receive the request. |
| Article 12 (Examination for Certification of Compliance) |
| (1) | Upon receiving an application for the certification of compliance pursuant to Article 11 (1), the head of the competent central administrative agency (including the other competent central administrative agencies with whom no application is filed, if competent central administrative agencies are two or more) shall conduct an examination for certification of compliance, taking into full consideration the characteristics of the new product of industrial convergence. |
| (2) | In order to conduct an examination for certification of compliance in an appropriate and professional manner, the head of the competent central administrative agency that conducts an examination for certification of compliance under paragraph (1) shall consult with public officials of the following agencies and non-governmental experts in relevant areas on matters regarding certification of compliance, including standards for the certification of compliance, as prescribed by Presidential Decree: |
| 1. | The competent central administrative agency in receipt of an application for certification of compliance; |
| 2. | The other competent central administrative agencies with whom no application for certification of compliance is filed (applicable only to cases of two or more competent central administrative agencies). |
| Article 13 (Certification of Compliance) |
| (1) | If the head of the competent central administrative agency that conducts an examination for certification of compliance pursuant to Article 12 has no specific problem in the aspect of safety, etc. and can establish standards, specifications, requirements, or the like that are suitable or applicable to the new product of industrial convergence when he or she considers the characteristics of the new product of industrial convergence, he or she shall certify compliance without delay after consultation on certification of compliance under Article 12 (2) within the period specified by Presidential Decree, which shall not exceed six months from the day on which the application for certification of compliance is filed: Provided, That, if unavoidable circumstances arise, the period may be extended only once by not more than 30 days. |
| (2) | In certifying compliance pursuant to paragraph (1), the head of the competent central administrative agency may attach necessary conditions to the certification in order to secure the safety, etc. of the new products of industrial convergence. |
| (3) | When the head of the competent central administrative agency certifies the compliance of a new product of industrial convergence pursuant to paragraph (1), the permission, etc. shall be deemed obtained under the statute or regulation applicable to the permission, etc. |
| (4) | The head of the competent central administrative agency that has certified conformity pursuant to paragraph (1) shall make public notification of the standards for the examination for certification of compliance of the relevant new products of industrial convergence, as prescribed by Presidential Decree. In case of two or more competent central administrative agencies, they shall consult with one another and consolidate the standards for the examination for certification of compliance of new products of industrial convergence and shall make public notification of the consolidated standards. |
| (5) | Except as provided in paragraphs (1) through (4), matters necessary for procedures, methods, etc. for certification of compliance shall be prescribed by Presidential Decree. |
| Article 14 (Cancellation of Certification of Compliance) |
| (1) | If a person to whom certification of compliance has been granted pursuant to Article 13 (1) falls under any of the following, the head of the competent central administrative agency that has given the certification of compliance shall cancel the certification of compliance: |
| 1. | If the person has obtained the certification of compliance by fraud or other improper means; |
| 2. | If the person fails to satisfy the conditions under Article 13 (2); |
| 3. | If the person no longer meets the standards publicly notified for the examination for certification of compliance pursuant to Article 13 (4). |
| (2) | If the certification of conformity of a new product of industrial convergence is cancelled pursuant to paragraph (1), no such new product shall be sold, installed, or operated. |
| Article 15 (Objection against Denial of Certification of Conformity) |
| (1) | If a manufacturer, etc. who have filed an application for certification of compliance in accordance with Article 11 (1) has an objection in regard to the certification of compliance, he or she may file an objection with the head of the competent central administrative agency, as prescribed by Presidential Decree. |
| (2) | Upon receiving an objection under paragraph (1), the head of the competent central administrative agency shall notify the following persons of the results of the disposition made in regard to the objection within 30 days from the filing date of the objection: <Amended by Act No. 15828, Oct. 16, 2018> |
| 1. | The manufacturer, etc.; |
| 2. | The Deliberative Committee on Regulatory Exceptions; |
| 3. | The Industrial Convergence Ombudsman. |
| Article 16 (Implementation of Programs for Insurance against Injuries) |
| (1) | In order to indemnify consumers from injuries that may be caused by a new product of industrial convergence, a manufacturer, etc. with certification of compliance given pursuant to Article 13 may purchase insurance or subscribe to a mutual aid fund provided by any of the following persons: Provided, That such manufacturer, etc. shall purchase insurance or subscribe to a mutual aid fund in cases specified by Presidential Decree as necessary for the safety of consumers: <Amended by Act No. 12609, May 20, 2014> |
| (2) | A person who is engaged in the insurance business or mutual aid business under paragraph (1) (hereinafter referred to as "liability insurance business") may demand relevant specialized institution or organization to furnish him or her with data about certification of compliance of a new product, if he/she deems it necessary for the operation of business. In such cases, the relevant specialized institution or organization shall comply with the demand, unless there is a compelling reason not to do so. |
| (3) | Matters necessary for the details and operation of the liability insurance business shall be prescribed by Presidential Decree. |
CHAPTER IV ASSISTANCE IN PROMOTING INDUSTRIAL CONVERGENCE AND INVIGORATION THEREOF
| Article 17 (Assistance to New Convergence Industries) |
| (1) | In order to invigorate new convergence industries and provide assistance to such industries for development, the Government may conduct the following: |
| 1. | Assistance in training specialists in new convergence industries and invigorating research; |
| 2. | The development and diffusion of business models of new convergence industries; |
| 3. | Assistance in the establishment and utilization of information systems related to new convergence industries; |
| 4. | Assistance in the standardization and diffusion of new convergence industries; |
| 5. | International cooperation for the promotion of the development of new convergence industries; |
| 6. | The promotion of exchanges between different types of business for the discovery of new convergence industries; |
| 7. | Contribution, subsidization, and lending of loans to persons who find new convergence industries and perform such task; |
| 8. | Assistance in other matters necessary for the promotion of the development of new convergence industries. |
| (2) | Matters necessary for the scope of new convergence industries under the subparagraphs of paragraph (1) and the business eligible for assistance, procedures, methods, etc. for assistance shall be prescribed by Presidential Decree. |
| Article 18 (Promotion of Industrial-Convergence-Oriented Research and Development) |
| (1) | If the head of the related central administrative agency finds that a research and development project within his or her jurisdiction is related to industrial convergence, he or she may promote the task (hereinafter referred to as "industrial-convergence-oriented task") intensively. |
| (2) | The head of the related central administrative agency may grant contributions or subsidies to cover expenses incurred in promoting an industrial-convergence-oriented task within budgetary limits. |
| (3) | Matters necessary for promoting industrial-convergence-oriented tasks, including the grant of contributions or subsidies under paragraph (2), shall be prescribed by Presidential Decree. |
| Article 19 (Assistance in Relation to Intellectual Property Rights for Promotion of Industrial Convergence) |
| (1) | The head of the related central administrative agency may implement the following supportive projects relating to intellectual property rights in order to promote industrial convergence: |
| 1. | A project related to using and implementing the outcomes of research, such as patents acquired as a result of research related to industrial convergence, and using and implementing intellectual property rights held by the State or a local government, and promoting exchanges of such intellectual property rights; |
| 2. | A project for the brokerage and arrangement of intellectual property rights for persons who intend to develop trial products or final products for the promotion of industrial convergence. |
| (2) | The head of the related central administrative agency may designate an institution or organization that performs affairs related to intellectual property rights to authorize it to execute supportive projects under paragraph (1), as prescribed by Presidential Decree. |
| (3) | The head of the related central administrative agency may grant contributions or subsidies to an institution or organization designated pursuant to paragraph (2) for expenses incurred in its supportive projects. |
| Article 20 (Establishment of Cooperation System among Industries) |
| (1) | In order to promote industrial convergence, the Government shall prepare schemes for the exchanges and cooperation among the industries. |
| (2) | In order to enhance exchanges and cooperation among the industries under paragraph (1), the Government may assist in the following matters: |
| 1. | Development and implementation of joint education programs among domestic and foreign research institutes, universities, and enterprises; |
| 2. | Invigoration of exchanges of human resources for research among industries; |
| 3. | Invitation of foreign specialists for industrial convergence; |
| 4. | Establishment of information systems for specialists for industrial convergence and tasks of research and development of industrial convergence; |
| 5. | Other matters necessary for the exchanges and cooperation among industries. |
| Article 21 (Assistance to Joint Organization for Industrial Convergence) |
| (1) | The Minister of Trade, Industry and Energy shall prepare schemes for promoting the establishment and activities of associations, organizations, study groups, etc. that industrial establishments voluntarily organize in order to promote industrial convergence (hereinafter referred to as "joint organization for industrial convergence"). <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy may assist in activities specified by Ordinance of the Ministry of Trade, Industry and Energy, such as surveys and analyses conducted by joint organizations for industrial convergence for the discovery of new convergence industries. <Amended by Act No. 11690, Mar. 23, 2013> |
| (3) | In order to provide continuous and effective assistance to joint organizations for industrial convergence in their activities, the Minister of Trade, Industry and Energy may establish and manage database, etc. about joint organizations for industrial convergence, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013> |
| Article 22 (Assistance in Mutual Exchanges of Human Resources between Different Types of Industry) |
| (1) | In order to promote industrial convergence, the Government shall establish and implement measures for mutual exchanges of human resources between different types of industry. |
| (2) | If necessary for the promotion of mutual exchange of human resources between different types of industry, the Government may grant subsidies to cover some of the expenses incurred in such exchanges of human resources. |
| (3) | The Government may select enterprises that have performed well in industrial convergence through exchanges of human resources between different types of industry as leading enterprises in industrial convergence and may provide assistance to such enterprises. |
| (4) | Matters necessary for the methods and procedures for the selection of leading enterprises in industrial convergence under paragraph (3) and assistance to such enterprises shall be prescribed by Presidential Decree. |
| Article 23 (Implementation of Pilot Projects) |
| (1) | If deemed necessary for the following matters, the head of the related central administrative agency may implement a pilot project in a limited area during a specified period: |
| 1. | The promotion of industrial convergence; |
| 2. | The invigoration of diffusion of new products of industrial convergence and services related to industrial convergence; |
| 3. | The verification of the utility or harm, etc. of new products of industrial convergence and related technology, which shall be conducted before granting permission, etc. |
| (2) | The head of the related central administrative agency may provide necessary assistance to a person who participates in a pilot project under paragraph (1). |
| (3) | Matters necessary for the procedures for pilot projects under paragraphs (1) and (2) and the assistance in such pilot projects shall be prescribed by Presidential Decree. |
| Article 24 (Assistance to Small and Medium Enterprises in Industrial Convergence Projects) |
| (1) | When the following persons (hereinafter referred to as "small or medium enterprise, etc.") conduct research and development through industrial convergence or the commercialization of the outcomes of research thereon (hereinafter referred to as "industrial convergence project"), the head of the related central administrative agency may grant contributions or subsidies to cover expenses incurred therein or provide other assistance as necessary: |
| (2) | A small or medium enterprise that intends to obtain contributions, subsidies, or assistance under paragraph (1) shall submit a plan for an industrial convergence project, which shall include details of the industrial convergence project and facts specified by Presidential Decree, to the head of the related central administrative agency. |
| (3) | When the head of the related central administrative agency recognizes, as a result of his or her evaluation of a plan submitted for an industrial convergence project pursuant to paragraph (2), that the industrial convergence project is proper, effective, and efficient, he or she may grant contributions or subsidies to cover expenses necessary for the project or provide other assistance as necessary. |
| (4) | Matters necessary for the criteria and procedures, etc. for contributions, subsidies, or assistance under paragraphs (1) and (3) shall be prescribed by Presidential Decree. |
| Article 25 (Assistance to Purchasers of New Products of Industrial Convergence) |
| (1) | The State and local governments may provide necessary assistance to persons who purchase new products of industrial convergence for environmental protection or job creation or such new products of high value to society. |
| (2) | Further details about the scope of assistance to purchasers of new products of industrial convergence under paragraph (1), and the criteria, methods, and procedures for, and the scale of, such assistance shall be determined and publicly notified by the head of each related central administrative agency. |
| Article 26 (Designation of Industrial Convergence Center) |
| (1) | In order to support the promotion of industrial convergence and the development of new convergence industries efficiently, the Minister of Trade, Industry and Energy may designate an institution or corporation that meets the requirements prescribed by Presidential Decree for specialists, facilities, etc. as an industrial convergence center (hereafter in this Article referred to as the "center"). <Amended by Act No. 11690, Mar. 23, 2013> |
| (2) | The center shall conduct the following: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | Surveys and analyses of markets for industrial convergence and the use of collected information; |
| 2. | Assistance in research and development projects related to industrial convergence within the remit of the Ministry of Trade, Industry and Energy; |
| 3. | Assistance in the startup of new business and business management relating to industrial convergence and the collection and management of information thereof; |
| 4. | Projects entrusted by the Government for the promotion of industrial convergence; |
| 5. | Projects for the enhancement of competitiveness of enterprises through industrial convergence and the assistance in the discovery of new convergence industries; |
| 6. | Assistance with specialists necessary for the development of new products of small and medium enterprises through industrial convergence and the discovery of new convergence industries; |
| 7. | Other affairs specified by Presidential Decree as necessary for the development of new products of industrial convergence or the promotion of new convergence industries. |
| (3) | If necessary for conducting affairs under the subparagraphs of paragraph (2), the center may request universities, institutions, or organizations specified by Presidential Decree to dispatch researchers or experts, etc. who work for the universities, institutions, or organizations. |
| (4) | The Minister of Trade, Industry and Energy may fully or partially subsidize the center within budgetary limits for expenses incurred in conducting affairs under the subparagraphs of paragraph (2). <Amended by Act No. 11690, Mar. 23, 2013> |
| (5) | The head of a university, an institution, or an organization that has dispatched a researcher or expert pursuant to paragraph (3) shall not treat the researcher or expert so dispatched to his or her disadvantage in status or in salary. |
| (6) | If a person designated as the center pursuant to paragraph (1) falls under any of the following, the Minister of Trade, Industry and Energy may cancel the designation or order the suspension of business operations for a specified period not exceeding six months: Provided, That the designation shall be cancelled if such person falls under subparagraph 1: <Amended by Act No. 11690, Mar. 23, 2013> |
| 1. | If he or she has obtained the designation by fraud or other improper means; |
| 2. | If his or her relevant business has not been in operation for at least six consecutive months without a justifiable reason; |
| 3. | If he or she ceases to meet the requirements for the designation under paragraph (1); |
| 4. | If the center has used the subsidized fund for any purpose other than the purpose of subsidization. |
| (7) | Except as provided in paragraphs (1) through (6), matters necessary for the designation and operation of the center shall be prescribed by Presidential Decree. |
| Article 27 (Special Cases concerning Leave of Absence of Faculty Members of Universities)0 |
Notwithstanding Article 59 (1) of the Private School Act, any of the following persons may be given leaves of absence in order to allow him or her to work for a small or medium enterprise for a project implemented by the industrial convergence center under Article 26 (hereinafter referred to as the "industrial convergence center") for assistance with specialists: <Amended by Act No. 15085, Nov. 28, 2017> | 1. | A university faculty member (including a researcher of a research institute affiliated with a university; the same shall apply hereinafter); |
CHAPTER V ESTABLISHMENT OF INFRASTRUCTURE FOR INDUSTRIAL CONVERGENCE
| Article 28 (Designation of Universities Specialized in Industrial Convergence) |
| (1) | In order to train specialists necessary for industrial convergence, the Government may designate universities specialized in industrial convergence, graduate schools specialized in industrial convergence, or research institutes affiliated with a university and specialized in industrial convergence among the following institutions, as prescribed by Presidential Decree: <Amended by Act No. 15085, Nov. 28, 2017> |
| (2) | The Government may provide assistance necessary for the operation of universities specialized in industrial convergence, graduate schools specialized in industrial convergence, or research institutes affiliated with a university and specialized in industrial convergence, which are designated pursuant to paragraph (1). |
| (3) | Matters necessary for the procedures for designating universities specialized in industrial convergence, graduate schools specialized in industrial convergence, or research institutes affiliated with a university and specialized in industrial convergence under paragraph (1) and the scope of the assistance under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 29 (Standardization of Industrial Convergence) |
| (1) | The Government may implement the following projects for standardization in order to improve the quality of new products of industrial convergence and related services and to secure the compatibility of such products and services: |
| 1. | Development and diffusion of standards for new products of industrial convergence and related services; |
| 2. | Surveys, research, development of domestic and foreign standards related to industrial convergence; |
| 3. | Other projects necessary for the standardization of industrial convergence. |
| (2) | In order to efficiently implement standardization projects under the subparagraphs of paragraph (1), the Government may authorize an institution or organization specified by Presidential Decree to implement such projects on its behalf. |
| (3) | In order to subsidize an institution or organization under paragraph (2) for expenses incurred in the performance of its business affairs, the Government may grant contributions or subsidies to the institution or organization. |
| Article 30 (Promotion of, and Assistance in, International Cooperation and Advance to Overseas Markets) |
| (1) | The Government shall grasp international trends of industrial convergence and promote international cooperation. |
| (2) | In order to promote the invigoration of international cooperation in industrial convergence and the advance to overseas markets, the Government may implement projects for the international exchange of technology and human resources for industrial convergence, international standardization, and international joint research and development. |
| (3) | In order to assist persons who conduct the projects under paragraph (2) or implement such projects efficiently, the Government may authorize an institution or organization specified by Presidential Decree to conduct such projects on its behalf. In such cases, the Government may grant contributions or subsidies to the institution or organization that conducts the projects under paragraph (2) on its behalf. |
| Article 31 (Establishment of Infrastructure for Culture of Industrial Convergence) |
| (1) | In order to establish infrastructure for the culture under which industrial convergence can be invigorated and the development of new products of industrial convergence and the development of new convergence industries can be promoted through mutual exchanges and cooperation among the State, local governments, enterprises, educational institutions, etc. (hereinafter referred to as "culture of industrial convergence"), the Government shall prepare schemes for the establishment of infrastructure for the culture of industrial convergence, in which the following shall be included: |
| 1. | Education of the culture of industrial convergence and training of related specialists; |
| 2. | Publicity for the creation and development of the culture of industrial convergence; |
| 3. | Development and diffusion of educational contents related to the culture of industrial convergence; |
| 4. | Fostering of, and assistance to, institutions or organizations that conduct projects or activities for the creation and development of the culture of industrial convergence; |
| 5. | Establishment of systems and infrastructure for the invigoration of enjoyment and exchanges of the culture of industrial convergence; |
| 6. | Other matters necessary for the establishment of infrastructure for the culture of industrial convergence. |
| (2) | The Government shall endeavor to have education about the culture of industrial convergence included in the guidelines and contents of curricula prescribed by school regulations in accordance with Article 21 of the Higher Education Act. |
CHAPTER VI SUPPLEMENTARY PROVISIONS
| Article 32 (Prohibition of Fraudulent Application for Budget and Use of Budget for Purpose Other Than Intended Purpose) |
A person who intends to receive, or has received, financial support pursuant to this Act shall not file a fraudulent application for the related budget nor shall use the financial support for any purpose other than the originally intended purpose or any other wrongful purpose.
When the head of the competent central administrative agency or the Minister of Trade, Industry and Energy intends to make the following dispositions, he or she shall hold a hearing: <Amended by Act No. 11690, Mar. 23, 2013>
| 1. | Cancellation of the certification of compliance under Article 14; |
| 2. | Cancellation of the designation of the industrial convergence center under Article 26 (6). |
When the head of the competent central administrative agency certifies compliance pursuant to Article 13, he or she may collect fees from the relevant manufacturers, etc. as prescribed by Presidential Decree.
| Article 35 (Financial Support) |
The State and local governments may assist manufacturers, etc. with financial support and loans as may be necessary to facilitate projects for enhancing industrial competitiveness and developing new convergence industries by promoting industrial convergence.
| Article 36 (Delegation and Entrustment) |
| (1) | The authority of the head of the competent central administrative agency granted under this Act may be partially delegated to the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing Province Governor, or the head of an affiliated agency, as prescribed by Presidential Decree. |
| (2) | The affairs of the head of the related central administrative agency under this Act may be entrusted partially to the industrial convergence center or an related specialized institution or organization, as prescribed by Presidential Decree. |
| Article 37 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
| 1. | An expert in industrial convergence commissioned as the Industrial Convergence Ombudsman pursuant to Article 10 (3) and who performs the relevant affairs; |
| 2. | An executive officer or employee who performs the affairs of the industrial convergence center in an institution or corporation designated pursuant to Article 26 (1). |
CHAPTER VII PENALTY PROVISIONS
| Article 38 (Penalty Provisions) |
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won: <Amended by Act No. 15828, Oct. 16, 2018>
| 1. | A person falls under the application of a regulatory exception for demonstration under Article 10-3, by fraud or other improper means; |
| 2. | A person who has obtained temporary permission under Article 10-5, by fraud or other improper means; |
| 3. | A person who has obtained certification of compliance under Article 13, by fraud or other improper means. |
| Article 39 (Administrative Fines) |
| (1) | Any of the following persons shall be subject to an administrative fine not exceeding 10 million won: <Amended by Act No. 15828, Oct. 16, 2018> |
| 1. | A person who fails to purchase liability insurance or to formulate compensatory measures, in violation of Article 10-3 (2) or Article 10-5 (2); |
| 2. | A person who engages in selling, using, providing, etc. a new product or service of industrial convergence for which the application of regulatory exceptions for demonstration has been revoked, in violation of Article 10-4 (7); |
| 3. | A person who engages in selling, using, providing, etc. a new product or service of industrial convergence for which temporary permission has been revoked, in violation of Article 10-6 (2); |
| 4. | A person who sells, installs, or operates a new product of industrial convergence, in violation of Article 14 (2) after the certification of compliance of the product is cancelled; |
| 5. | A person who fails to purchase insurance or subscribe to a mutual aid fund, in violation of the proviso of Article 16 (1). |
| (2) | Administrative fines under paragraph (1) shall be imposed and collected by the head of the competent central administrative agency, as prescribed by Presidential Decree. |
ADDENDUM
This Act shall enter into force six months after 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. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11713, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 12609, May 20, 2014>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the amendments to the statutes to be amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have yet to arrive, shall enter into force on the enforcement date of the relevant statute.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15085, Nov. 28, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15344, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 15828, Oct. 16, 2018>
This Act shall enter into force three months after the date of its promulgation.