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OPERATION GUIDELINES FOR PROJECTS FOR INNOVATION OF INDUSTRIAL TECHNOLOGY

Notice No. 2008240, Dec. 29, 2008

Amended by Notice No. 2009193, Aug. 21, 2009

Notice No. 201071, Apr. 1, 2010

Notice No. 2010111, May 26, 2010

Notice No. 2011141, Jul. 5, 2011

Notice No. 201255, Mar. 5, 2012

Notice No. 2012170, Jul. 12, 2012

Notice No. 2012252, Oct. 23, 2012

Notice No. 201335, May 24, 2013

Notice No. 201377, Jul. 15, 2013

Notice No. 201476, Apr. 22, 2014

Notice No. 2014247, Dec. 16, 2014

Notice No. 2015259, Dec. 21, 2015

Notice No. 201664, Mar. 30, 2016

Notice No. 2016165, Sep. 1, 2016

Notice No. 2016228, Dec. 13, 2016

Notice No. 201722, Feb. 16, 2017

Notice No. 2017132, Sep. 15, 2017

Notice No. 201890, Apr. 30, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of these Guidelines is to prescribe detailed matters necessary to efficiently implement projects for innovation of industrial technology under the Industrial Technology Innovation Promotion Act (hereinafter referred to as the "Act") and the Enforcement Decree of the same Act (hereinafter referred to as the "Decree").
 Article 2 (Definitions)
(1) The terms used in these Guidelines shall be defined as follows:
1. The term "industrial technology" means technology related to the development of the industries defined in Article 2 of the Industrial Development Act, the mining industry defined in subparagraph 2 of Article 3 of the Mining Industry Act, energy-related industries defined in subparagraph 1 of Article 2 of the Energy Act; and industries relating to new energy defined under subparagraph 1 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy or renewable energy defined in subparagraph 2 of Article 2 of the same Act;
1-2. The term "project for innovation of industrial technology" (hereinafter referred to as "project") means any project specified in any subparagraph of Article 3, which is performed in collaboration with the Government, technological innovators, etc., so as to promote technological innovation in the industrial technology sector;
2. The term "technological innovator" means an enterprise, university, research institute, etc., that engages in innovation of industrial technology";
3. The term "university" means a school defined in Article 2 of the Higher Education Act or a university established under any other Act;
4. The term "research institute" means a national or public research institute; a research institute governed by the Support of Specific Research Institutes Act; a government-funded research institute prescribed in the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes; a government-funded science and technology research institute prescribed in subparagraph 1 of Article 2 of the Act on the Establishment, Operation, and Fostering of Government-Funded Science and Technology Research Institutes; a research institute specializing in industrial technology prescribed in Article 42 of the Act; or a research institute incorporated under the Civil Act or any other Act, as a research corporation specializing in industrial technology;
4-2. The term "medical institution" means a medical institution defined in Article 3 of the Medical Service Act: Provided, That a medical institution, the founder of which falls under Article 33 (2) 1 of the Medical Service Act, shall be excluded herefrom;
5. The term “agency vested with exclusive responsibility” means an agency established or designated by the Minister of Trade, Industry, and Energy (hereinafter referred to as the "Minister") in order to entrust it with such affairs as planning, evaluation, and management of projects;
6. The term "institution specializing in equipment management" (hereinafter referred to as "institution specializing in equipment") means an institution designated by the Minister pursuant to Article 21 (4) of the Act in order to efficiently manage, and facilitate the use of, equipment for the development of industrial technology referred to in subparagraph 17;
7. The term "major institution” means an institution (including enterprises) that performs projects under its supervision;
7-2. The term "major institution responsible for general tasks" means a major institution that manages general tasks, where implementation tasks are classified into general tasks and specific tasks;
7-3. The term "major institution responsible for specific tasks" means a major institution that leads the execution of specific tasks, where implementation tasks are classified into general tasks and specific tasks;
8. The term "participating institution" means an institution (including enterprises) that takes part in a project to perform the project jointly with the relevant major institution;
9. The term "participating enterprise" means an enterprise that takes part in a project as a major institution or participating institution. In such cases, the enterprise may participate in the project by bearing some of the project funds to implement or utilize project outcomes, depending on the characteristics of the project;
9-2. The term "small-medium enterprise" means an enterprise defined in Article 2 (1) and (3) of the Framework Act on Small and Medium Enterprises and Article 3 of the Enforcement Decree of the same Act;
9-3. The term "middle-standing enterprise" means an enterprise defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises;
9-4. The term "large enterprise" means an enterprise, other than an enterprise defined in Article 2 of the Framework Act on Small and Medium Enterprises or a middle-standing enterprise defined in subparagraph 1 of Article 2 of the Special Act on the Promotion of Growth and the Strengthening of Competitiveness of Middle-Standing Enterprises;
9-5. The term "marginal enterprise" means an enterprise of which the interest coverage ratio on the financial statements as at the end of the last three consecutive fiscal years is less than 1;
10. The term "executing institution" means a major institution or participating institution selected to perform tasks;
11. The term "implementation task" means task designated or selected by the Minister to accomplish the objectives of a project;
12. The term "general task" means task by which a major institution responsible for general tasks manages specific tasks to accomplish general objectives of a project;
12-2. The term "specific task" means individual task sub-classified under general task and peformed by a major institution responsible for specific tasks;
13. The term "total execution period" means the entire period for performing a project from the commencement date to the completion date of the project;
13-2. The term "execution period" means an agreement period, in cases of task for which an agreement is entered into annually; and a period for performing a project for the relevant year, in cases of task for which a longer-term agreement is concluded;
14. The term "project funds" means expenses incurred in implementing a project which consist of contributions and private financing; while the term "total project funds" means the sum of the contributions and private financing spent during the total execution period;
15. The term "contributions" means expenses incurred in performing a project, which are paid from budgets, funds, etc. to executing institutions to accomplish the objectives of the project;
16. The term "private financing" means expenses, other than contributions, among project funds, which are provided in cash and in kind by an executing institution, local government, etc.;
17. The term "equipment for the development of industrial technology" (hereinafter referred to as "equipment") means non-consumable assets introduced through projects specified in Article 3: Provided, That prototypes manufactured as project outcomes and clean rooms, which are facilities in the form of a space, shall be excluded herefrom;
18. The term "integrated management of equipment" means that an institution specializing in equipment formulates plans for, and evaluates and manages, equipment (based on the purchase price of all the modules actually used, in cases of modularized equipment; hereinafter the same shall apply) the purchase price of which exceeds 30 million won (including value added tax; hereinafter the same shall apply), for the entire period from the planning to disposal of such equipment;
19. The term "designation according to policy" means a method by which the Minister designates and selects both tasks to be performed and institutions to execute such tasks, if deemed necessary in light of policy;
20. The term "designation of items” means a method by which the Minister designates items, but selects tasks and institutions to execute such tasks through open bid for the presented items only;
21. The term "ongoing task" means task determined to be performed continuously through annual, phased evaluation, etc., among tasks with an execution period exceeding one year;
22. The term "problematic task" means task suspended or found unfaithfully performed as a result of evaluations, or task constituting such grounds as violating the relevant regulations or agreement;
23. The term "implementation" means using (including production by using outcomes of a project implemented), transferring (including technology transfer), lending, or exporting outcomes obtained in the course, or as a result, of performing a project;
24. The term "royalties" means a price for acquiring the right to implement outcomes of a project specified in any subparagraph of Article 3 (hereinafter referred to as "license"), which is paid in cash or by means of securities, etc. by a licensee to the State, an agency vested with exclusive responsibility, or to the owner of the project outcomes;
25. The term "intellectual property rights" means rights prescribed by statutes concerning a patent right, utility model right, trademark right, design right, copyright or other intellectual property, or a right related to the interests protected under statutes;
26. The term "contract for implementation of technology" means a contract entered into between the owner of project outcomes and a person intending to implement the project outcomes, in relation to the terms and conditions, royalties, payment method of royalties, etc.;
27. The term "utilization of outcomes" means implementing or using tangible or intangible outcomes that arise from a project performed, thereby pursuing technological or economic profits;
28. The term "research malpractice" means any of the following acts committed when a researcher proposes or performs a task, or reports or announces the results thereof:
(a) Forging or falsifying data, results, etc. of a project the relevant researcher has performed, or wrongfully indicating the author of a thesis;
(b) Plagiarizing other person's data, results, etc. to use them for data, results, etc. of a project the relevant researcher has performed;
(c) Implementing a project by other wrongful means;
29. The term "information system for industrial technology R&D" means an integrated information system, built and operated to jointly use or provide the information on R&D tasks to the National Science and Technology Information System by collecting such information from agencies vested with exclusive responsibility or executing institutions, in order to comprehensively manage and utilize the information related to R&D tasks for projects for innovation of industrial technology;
30. The term "Real-time Cash Management System (RCMS)" means an integrated information system through which executing institutions execute and settle project funds directly through money transfer, credit cards, etc., to ensure transparent use and efficient management of the project funds;
31. The term "system for joint use of equipment for the development of industrial technology (e-Tube)" means a system established and operated by an institution specializing in equipment for the integrated management of equipment throughout the entire period from planning, examination of introduction, purchase, registration, use, management, to disposal, etc. thereof;
32. The term "National Technology Bank (NTB)" means an information management system on information, etc. regarding technology transfer and the commercialization of technology, which is operated to promote technology transfer and commercialization prescribed in Article 7 of the Technology Transfer and Commercialization Promotion Act;
33. The term "non-profit institution" means an institution defined in subparagraph 3 or 4, or an institution with a corporation code in the business registration number of 82 or 83; and includes a corporation with articles of incorporation which expressly state that it has been established for business other than profit-making business pursuant to the relevant Act under which it was established: Provided, That a public corporation referred to in Article 5 (3) 1 of the Act on the Management of Public Institutions shall be deemed a profit-making institution;
34. The term "period for the utilization of outcomes" means a specified period during which investigation, analysis, and evaluation are conducted on the utilization status, ripple effects, etc. of the outcomes of a completed task after the completion of the task; and no separate agreement shall be required for such activities;
35. The term "project period" means a period calculated by adding the period for the utilization of outcomes to the total execution period: Provided, That any period for the utilization of outcomes shall be excluded herefrom, if task is not completed as planned due to suspension, etc. thereof;
36. The term "basic research phase" means a phase of theoretical or experimental research aimed at obtaining new knowledge about phenomena or observable facts, not directly aiming at particular application or project;
37. The term "applied research phase" means a phase of creative research conducted to obtain new scientific knowledge mainly for practical purposes, by using the knowledge acquired in the basic research phase;
38. The term "research and development phase" means a phase of systematic research conducted to produce a new product, device or service or to substantially improve a product or device already produced or installed, by using the knowledge obtained in the basic research phase and applied research phase or imperially;
39. The term "grant-type task" means small-scale task for which autonomy is given to researchers in relation to development objectives and execution in order to promote creative research; and specific procedures for, and details of, execution of the task shall be prescribed separately;
40. The term "source technology type" means a type of task designed to develop original and creative source technology applicable to products;
41. The term "innovation product type" means a type of task designed to develop a product with which industrial source technology is combined;
42. The term "prior exclusion from subsidization" means that task is excluded from those subject to evaluations because the task is found to constitute grounds for disqualification when matters, such as overlapping with another task, restrictions on participation and qualifications for application, are examined in the preliminary examination phase for the new evaluation under Article 21 (2);
43. The term "revenue" means an amount of income accruing in the process of performing a task;
44. The term "profit" means an amount of net income calculated by subtracting relevant expenses from the income accruing in the process of performing a task;
45. The term "voucher" means authority with which a major institution, which is a small-medium or middle-standing enterprise, may suspend or delay the spending of project funds by the relevant agency vested with exclusive responsibility to a participating institution designated in an agreement, after a specified point of time during the agreement period;
46. The term "voucher program" means a program under which a major institution, which is a small-medium or middle-standing enterprise, may inspect the progress or results of technological development of a participating institution designated in an agreement, and based on the outcomes of the inspection, may use its voucher to facilitate or delay the spending of project funds to such participating institution, in order to promote open innovation by small-medium and middle-standing enterprises.
(2) Except as provided for in paragraph (1), the definitions of terms used in these Guidelines shall be governed by the Act and the Regulations on the Management, etc. of National Research and Development Projects (hereinafter referred to as the "National Management Regulations").
 Article 3 (Scope of Application)
These Guidelines shall apply to the following projects:
1. An industrial technological development project, a project for the development of infrastructure for industrial technology, a project for international cooperation on industrial technology, a project for utilization and supply of industrial technological human resources, a project to fund the promotion of industrial technology an commercialization, and other project conducted under the Act;
2. A technology project for joint civilian-military use prescribed in the Promotion of Technology Projects for Joint Civilian and Military Use Act and the Act;
3. A project to foster leading industries of economic cooperation regions, a project to support key institutions for regional economic zones, and other projects performed under the Special Act on Balanced National Development or the Act;
4. A project, etc. to foster regionally specialized industries prescribed in the Special Act on Balanced National Development, the Industrial Development Act, the Industrial Cluster Development and Factory Establishment Act, and the Act;
5. A project to strengthen the competitiveness of industrial clusters prescribed in the Industrial Cluster Development and Factory Establishment Act and the Act;
6. A project to establish technoparks (technopark project) prescribed in the Act on Special Cases concerning Support for Technoparks and the Act;
7. A project for electronic commerce resource centers established under the Framework Act on Electronic Transactions, and the Act;
8. A project, etc. to develop technology for components and materials prescribed in the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Components and Materials, and the Act;
10. A project for resource circulation or to develop and distribute industrial energy technologies prescribed in the Act on the Promotion of the Conversion into Environment-Friendly Industrial Structure, the Energy Act, and the Act;
11. A project, etc. for the promotion of technology transfer and commercialization prescribed in the Technology Transfer and Commercialization Promotion Act and the Act;
12. A project to develop technologies for aerospace components prescribed in the Aerospace Industry Development Promotion Act and the Act;
13. A project to develop industrial design technologies prescribed in the Industrial Design Promotion Act and the Act;
14. A project to promote engineering technologies prescribed in the Engineering Technology Promotion Act and the Act;
15. A project to develop power industry-related technologies prescribed in the Electric Utility Act and the Act;
16. A project to develop energy technologies prescribed in the Energy Act and the Act;
17. A research and development project related to radioactive waste prescribed in the Radioactive Waste Management Act and the Act;
18. A project to develop new and renewable energy technologies prescribed in the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy and the Act;
19. Other projects deemed necessary by the Minister for promoting technological innovation for industries and for the energy, resources, and information and communications sectors.
CHAPTER II SYSTEM FOR IMPLEMENTATION OF PROJECTS
 Article 4 (Strategic Planning Task Force)
(1) The Minister shall establish a Strategic Planning Task Force in the Korea Evaluation Institute of Industrial Technology to support the following activities relating to projects for innovation of industrial technology:
1. Identifying policies for industrial technology R&D;
2. Formulating and planning strategies for industrial technology R&D;
3. Presenting directions for investment in industrial technology R&D, and R&D portfolios by industry;
4. Presenting directions for budget compilation and restructuring schemes for industrial technology R&D;
5. Identifying large-scale leading R&D tasks to create future foods;
6. Promoting global leading industry-academia-research cooperation;
7. Operating a council on strategic planning and investment, and subsidizing the budget therefor;
8. Other matters deemed necessary by the Minister.
(2) The Minister may organize and operate a council on strategic planning and investment, which is a public-private cooperation unit, in order to deliberate on and coordinate the following:
1. Identifying growth engines for future industries and core technologies;
2. Basic direction-setting and efficient operation schemes for projects for innovation of industrial technology;
3. Comprehensive analysis of the results of projects for innovation of industrial technology, and restructuring of the projects;
4. Schemes for public-private or international cooperation on technological development;
5. Planning, evaluation, management, and investment coordination of projects for innovation of industrial technology.
(3) Other details relating to the organization, operation, etc. of the Strategic Planning Task Force shall be separately prescribed by the Minister.
 Article 5 (Deliberation Committees by Project)
(1) The Minister may organize a deliberation committee for each project (hereinafter referred to as "deliberation committee") in order to deliberate on and coordinate matters on planning, evaluation, and management of, and budget coordination for, specific projects.
(2) A deliberation committee may deliberate on and coordinate the following matters for projects other than those subject to deliberation by the council on strategic planning and investment:
1. Formulation of implementation plans for specific projects to be performed in the relevant year;
2. Confirmation of new tasks and business entities eligible for subsidization;
3. Other matters on planning, evaluation, management, and budget coordination by project.
(3) A deliberation committee shall be organized and operated, with a relevant official of the Ministry of Trade, Industry and Energy as an ex officio member and private experts in the relevant sector as its members, but may be organized otherwise based upon the characteristics of each project.
(4) The Minister may permit a separate working committee to be organized and operated to deliberate, in advance, on agenda items to be presented to a deliberation committee.
(5) The Minister need not hold a deliberation committee meeting, if it is necessary to perform a project urgently.
 Article 5-2 (Industrial R&D Coordination Committee)
(1) In order to prevent overlapping of, and to strengthen linkages between, industrial R&D projects, the Minister may organize an industrial R&D coordination committee to deliberate on and coordinate the following:
1. R&D strategies and directions for implementation of new tasks;
2. Other matters on linkage between, and coordination of, R&D projects.
(2) The industrial R&D coordination committee shall be organized, with a deputy minister of the Ministry of Trade, Industry and Energy as its chairperson and director generals, directors, managing directors, program directors, etc. as members, and may be operated by the Strategic Planning Task Force.
 Article 6 (Task Force on Evaluation of Industrial Technology Innovation)
(1) In order to utilize experts in such affairs as the evaluation and management of projects, the Minister shall have the Korea Evaluation Institute of Industrial Technology establish a Task Force on Evaluation of Industrial Technology Innovation (hereinafter referred to as the "Evaluation Task Force"), which consists of technological, economic, and market experts from industries, academia, and research institutes and experts in relevant sectors, such as humanities and social sciences.
(2) The Korea Evaluation Institute of Industrial Technology shall operate the Evaluation Task Force by considering the Industrial Technology Classification specified in attached Table 1, and shall establish an electronic system accessible by all agencies vested with exclusive responsibility.
(3) The Korea Evaluation Institute of Industrial Technology shall examine evaluation members' qualifications, evaluate their eligibility, and jointly manage and utilize evaluation records, etc. with the Korea Institute of Energy Technology Evaluation and Planning and the Korea Institute for Advancement of Technology; and other agencies vested with exclusive responsibility may jointly utilize the Evaluation Task Force after obtaining approval from the Ministry of Trade, Industry, and Energy.
(4) Members of the Evaluation Task Force shall be recruited from among any of the following persons at the request of the member himself/herself or on a relevant institution's recommendation, by additionally examining the relevant member's expertise, such as theses, patent, and research career: Provided, That any agency vested with exclusive responsibility, which jointly manages the Evaluation Task Force, may temporarily register and utilize a member of the Evaluation Task Force, if the head of the relevant agency recognizes such member:
1. Industrial sector (including enterprises, organizations by type of business, private associations, etc.):
(a) Doctorate-degree holder;
(b) Master's(bachelor's)-degree holder and at least five (seven) years of work experience in the relevant sector;
(c) A person in at least a department head position or equivalent;
(d) A technician license-holder;
2. Academia:
(a) An assistant professor or a professor in a higher position at a junior college or university;
3. Research institutes:
(a) Doctorate-degree holder;
(b) Master's(bachelor's)-degree holder and at least five (seven) years of work experience in the relevant sector;
4. Public officials:
(a) A public official of at least Grade V or equivalent, who is recognized as an expert in the relevant sector;
5. Other person deemed to have equivalent expertise.
(5) Any of the following members may be dismissed from the Evaluation Task Force, and a member dismissed may be registered again with the Evaluation Task Force if the ground for disqualification ceases to exist:
1. A member unable to work due to death, emigration, retirement, his/her refusal to work, unknown whereabouts, failure to provide basic information, or provision of insufficient information;
2. A member prohibited from participating in national research and development projects;
3. A member who stated false facts when applying for registration as a member;
4. A member who breaches any obligations prescribed in these Guidelines;
5. A member who has conducted evaluation in an unfaithful or unfair manner;
6. A member who fails to abstain under Article 7 (5);
7. Other member deemed unfit as a member of the Evaluation Task Force.
(6) With regard to paragraphs (1) through (5), the Korea Evaluation Institute of Industrial Technology shall report to the Minister on the results of experts' verification of potential members of the Evaluation Task Force and register the results in the electronic system, and shall require registered members to update their information, such as theses, patents and work experience, every two years.
(7) The head of an agency vested with exclusive responsibility may provide allowances and reimburse travel expenses, within budgetary limits, to members registered with the Evaluation Task Force, if they attend a committee meeting or participate in an on-site fact-finding survey, etc.
 Article 7 (Evaluation Committee, etc.)
(1) The Minister may have the head of an agency vested with exclusive responsibility organize an evaluation committee, etc. to deliberate on the following:
1. Identification of sectors or tasks eligible for subsidization;
2. Selection and evaluation of new tasks (hereinafter referred to as "new evaluation"), annual evaluation, phased evaluation, special evaluation, final evaluation of the results of task execution (hereinafter referred to as "final evaluation"), evaluation of the utilization of outcomes, and other evaluations;
3. Restrictions and recovery in relation to problematic tasks;
4. Deliberation on objections raised;
5. Matters, deliberation by the evaluation committee on which is deemed necessary by the Minister to plan, evaluate, and mange projects or tasks.
(2) The head of an agency vested with exclusive responsibility may have a separate working party or working committee to efficiently operate the evaluation committee, and may organize a planning and evaluation committee on a new project which examines the appropriateness of investment in the new project, existence of overlapping projects, etc., if necessary in light of the nature of the relevant project.
(3) Where the head of an agency vested with exclusive responsibility organizes and operates an evaluation committee or separate committee, he/she shall ensure evaluation members are appointed by considering the Evaluation Task Force referred to in Article 6. In such cases, the head of the agency vested with exclusive responsibility shall eliminate or exclude any of the following persons from the evaluation committee to ensure professional and fair evaluation:
1. A public official of the Ministry of Trade, Industry, and Energy, or an employee of the competent agency vested with exclusive responsibility;
2. Any of the following persons who have interests in task subject to evaluation:
(a) A researcher participating in task subject to evaluation;
(b) Mutual evaluators (referring to evaluation members "a" and "b", where evaluations are conducted for tasks A and B of an identical project, among projects newly announced publicly, and where a general manager or responsible person of a participating institution for task A is evaluation member "a" for task B, while at the same time, a general manager or responsible person of a participating institution for task B is evaluation member "b" for task A: Provided, That where only one of the two parties participates as an evaluation member for the other party's task, the relevant person shall not constitute the grounds for exclusion;
3. An expert belonging to an executing institution that performs the relevant task subject to evaluation;
4. An expert falling under Article 6 (5);
5. Other expert deemed likely to undermine fair evaluation.
(4) Where the circumstances indicate that it would be difficult to expect fair deliberation and evaluation, an institution subject to deliberation and evaluation may file a request for a challenge to the relevant evaluation member. In such cases, evaluation members excluding the challenged member shall determine such challenge through discussions.
(5) An evaluation member shall personally refrain from the relevant deliberation and evaluation, if he/she falls under any of the following cases: Provided, That such member need not do so, where deemed necessary by the Minister to evaluate a task:
1. Where he/she falls under any subparagraph of paragraph (3);
2. Where he/she has a teacher-pupil relationship (limited to his/her advisor for the final academic degree) or kinship under Article 777 of the Civil Act (a blood relative in the eighth degree of relationship, a relative by marriage in the fourth degree of relationship, or his/her spouse) with the general manager of the relevant task subject to evaluation or with the responsible person of a participating institution; or where he/she is an expert belonging to the same institution.
(6) Notwithstanding paragraph (3), a public official of the Ministry of Trade, Industry, and Energy and a program director referred to in Article 10, may exceptionally participate in evaluation committee meetings as an evaluation member, if deemed necessary by the Minister.
(7) If deemed necessary by the Minister, the head of an agency vested with exclusive responsibility may utilize an expert who is not a member of the evaluation committee, such as a foreign expert, for evaluations specified in paragraph (1) in light of the nature of each project, and may utilize an accountant from an institution entrusted with the settlement for an on-site fact-finding survey conducted to examine or settle project funds.
(8) The evaluation committee may conduct evaluations by means of presentations, writing, site visits, discussions, a combination of all the aforementioned methods, or by remaining at the site, as prescribed for each project.
(9) Upon receiving, from a major institution, an objection to various evaluations, the head of an agency vested with exclusive responsibility shall examine the merits of the objection, either giving notice on the upholding of the original decision or presenting the relevant case to the evaluation committee on re-deliberation. In such cases, he/she shall dismiss the objection or give notice on the verification of the original decision if he/she has decided not to present the case to the evaluation committee on re-deliberation; and shall provide the person who raised the objection with an opportunity to file a request to challenge the previous evaluation members, if a meeting of the evaluation committee on re-deliberation is to be held.
(10) Where it is impracticable to evaluate outcomes of an implemented project due to interests, controversies over unfair evaluation, etc., the evaluation committee may conduct only one further evaluation within 20 days.
(11) If any task is classified as security task, or if necessary for national security, the Minister need not apply paragraphs (1) through (10), in relation to evaluation procedures.
(12) The head of an agency vested with exclusive responsibility may conduct evaluations by collating tasks belonging to the same category in the technology classification.
 Article 8 (Central Deliberation Committee on Equipment)
(1) The Minister may require the head of an institution specializing in equipment to organize a central deliberation committee on equipment to deliberate on the following:
1. The appropriateness, overlap, usefulness, etc. of the introduction of equipment (based on the cost of purchasing all modules actually used, in the case of modularized equipment), the purchase cost of which exceeds 30 million won, including value added tax (however, no equipment which is developed and designed by the institution itself and the manufacturing of which is outsourced shall be presented to the committee for deliberation, even if its price exceeds 30 million won);
2. Matters on idle, less-used, or disused equipment;
3. Matters, deliberation on which by the central deliberation committee on equipment is deemed necessary by the Minister for the integrated management of equipment.
(2) The operation and composition of the central deliberation committee on equipment shall be prescribed by separate Guidelines.
 Article 9 (Managing Directors)
(1) The Minister may appoint a managing director (hereinafter referred to as "MD") for each relevant industry to assist the Strategic Planning Task Force under Article 4 in performing its affairs smoothly.
(2) Matters on the qualifications and selection of MDs, relevant industries designating MDs, their authority, obligations, remuneration, etc. shall be separately prescribed by the Minister.
 Article 10 (Program Directors)
(1) The Minister may require the head of an agency vested with exclusive responsibility to appoint a program director (hereinafter referred to as "PD") for each technology sector, to responsibly manage the entire process of a project at all times.
(2) Matters on the qualifications and selection of PDs, technology sectors designating PDs, and their authority and obligations shall be separately prescribed by the Minister.
(3) The head of an agency vested with exclusive responsibility may have a supporting department within the institution to assist PDs in performing their duties.
 Article 11 (Agencies Vested with Exclusive Responsibility )
(1) In order to efficiently promote and manage projects implemented pursuant to statutes, the Minister may designate agencies vested with exclusive responsibility to perform all or some of the following affairs:
1. Supporting the formulation of project plans and research on relevant policies;
2. Technology demand surveys and comprehensive analysis of survey results;
3. Preliminary surveys, such as technology foresight studies, surveys on technological levels, and analysis of technological competitiveness;
4. Establishment of a technology blueprint or technology roadmap, surveys of trends in patent, standardization, certification and design; analysis of economic feasibility; and identification of implementation tasks;
5. Examination and adjustment of plans submitted, review of a report on the results of task execution, and matters on the operation of an evaluation committee, such as new evaluation of tasks and evaluation of the results of task execution;
6. Matters on implementation and management of projects, such as inspection of the actual project implementation status, and spending and settlement of project funds;
7. Matters on recovery of contributions and sanctions;
8. Matters on analysis, management, utilization of project outcomes, and facilitation of commercialization thereof;
9. Matters on the collection, use, and management of royalties;
10. Matters on security of projects and research ethics;
11. Matters on the establishment and operation of a comprehensive information support system for projects;
12. Other matters deemed necessary by the Minister for planning, evaluation, management, etc. of projects.
(2) If necessary to efficiently perform the affairs specified in paragraph (1), the head of an agency vested with exclusive responsibility may directly conduct research thereon; gather consensus from an executing institution, relevant institution, etc.; ask such institutions for data; conduct site investigations; or have experts in the relevant sector such as patent and standardization, engage in the affairs.
(3) If necessary to efficiently implement projects, the Minister may require a separate institution or organization to perform some of the affairs of an agency vested with exclusive responsibility. In such cases, the institution or organization entrusted with the affairs shall be deemed an agency vested under these Guidelines with exclusive responsibility in relation to o the performance of the entrusted affairs.
(4) To efficiently perform the affairs specified in each subparagraph of paragraph (1), the head of an agency vested with exclusive responsibility may promulgate and implement separate regulations within the extent not contrary to these Guidelines, after obtaining approval therefor from the Minister.
 Article 12 (Institution Specializing in Equipment)
(1) The Minister may require an institution specializing in equipment to perform all or some of the following affairs for the integrated management of equipment:
1. Research on policies required for the strategic establishment, use, etc. of equipment;
2. Analysis of results, such as inspecting and analyzing outcomes of introducing and utilizing equipment;
3. Organization and operation of the central deliberation committee on equipment;
4. Integrated management of equipment, such as planning, deliberation on introduction, purchase, registration, use, maintenance, recovery, and relocation of equipment;
5. Establishment and operation of e-Tube;
6. Other matters deemed necessary by the Minister, for the integrated management of equipment.
(2) The head of the institution specializing in equipment shall comply with separate Guidelines, in relation to matters necessary for efficiently performing the affairs specified in paragraph (1).
 Article 13 (Major Institutions)
(1) Each major institution which leads the execution of a task or the head of the major institution, shall have the following authority and responsibilities:
1. Submitting application documents, including a project plan, etc.;
2. Conclusion of agreements on tasks, and comprehensive management of the execution thereof;
2-1. Conclusion of agreements among an agency vested with exclusive responsibility, a major institution responsible for specific tasks, and a participating institution; and general and comprehensive management of the execution of tasks (in cases of major institutions responsible for general tasks);
3. Bearing a share of the project funds that should be paid by a major institution, in cases of a project for which private spending is obligatory;
4. Securing human resources and facilities required to perform tasks, and providing administrative assistance;
5. Management of project funds, and reporting on the actual use of project funds;
6. Submitting annual, phased, and final reports;
6-2. Submitting annual, phased, and final reports to the relevant major institution responsible for general tasks (in cases of major institutions responsible for specific tasks);
7. Utilizing the outcomes of tasks performed, and submitting reports on the utilization status of outcomes;
8. Collection, use, and payment of royalties, and reporting on performance records thereof;
9. Submitting data on inspections, analysis, and evaluation of national research and development projects;
10. Security management of implementation tasks;
11. Observing research ethics;
12. Utilizing and managing equipment, and providing relevant data;
13. Notifying the relevant agency vested with exclusive responsibility of any problems, such as malpractice committed in relation to task;
14. Participating in exhibitions or presentations on completed tasks which are held during the period for the utilization of outcomes defined in Article 2 (1) 34;
15. Management of research notebooks.
(2) A major institution qualified to participate in projects shall be an institution referred to in Article 11 (2) of the Act, Article 11 of the Enforcement Decree of the same Act, or Article 2 (1) 3, 4, or 4-2 of these Guidelines: Provided, That the Minister may separately determine the qualifications, type, etc. of a major institution for each project so as to effectively accomplish the objectives of the relevant project when he/she publicly announces implementation plans therefor.
(3) The head of a major institution may perform single task in cooperation, or jointly, with other institutions, under the relevant agreement.
(4) Where an application for a task is filed by a large enterprise as a major institution, a participating institution shall be included in the task.
(5) Where a substantial change occurs in the system for implementation of a technological development project, such as bankruptcy or business closure of an executing institution and an accident of the relevant general manager, the head of the relevant major institution shall immediately notify such fact to the relevant agency vested with exclusive responsibility.
 Article 14 (Participating Institutions)
(1) Each participating institution and the head of a participating institution shall have the following authority and responsibilities:
1. Joint participation in, and cooperation for, implementation tasks;
2. Conclusion of agreements on tasks, and management of the implementation thereof;
3. Bearing a share of the project funds that should be paid by a participating institution, in cases of a project for which private spending is obligatory;
4. Securing human resources and facilities required to perform tasks, and providing administrative assistance;
5. Providing cooperation for the management of project funds, and cooperating with the relevant major institution in reporting the actual use of project funds;
6. Assisting major institutions in preparing annual, phased and final reports;
7. Providing cooperation for the utilization of the results of tasks performed, and cooperating with the relevant major institution in preparing reports on the utilization status of outcomes;
8. Collection, use and payment of royalties, and reporting on performance records thereof;
9. Cooperating with the relevant major institution in preparing data on inspection, analysis and evaluation of national research and development projects;
10. Security management of implementation tasks;
11. Observing research ethics;
12. Utilizing and managing equipment, and providing relevant data;
13. Notifying the relevant agency vested with exclusive responsibility of any issues, such as malpractice committed in relation to a task;
14. Management of research notebooks.
(2) A participating institution qualified to participate in projects shall be an institution referred to in Article 11 (2) of the Act, Article 11 of the Enforcement Decree of the same Act, or Article 2 (1) 3, 4, or 4-2 of these Guidelines: Provided, That the Minister may separately determine the qualifications, type, etc. of a participating institution for each project to effectively accomplish the objectives of the relevant project when he/she publicly announces implementation plans therefor.
 Article 15 (General Managers and Responsible Persons of Participating Institutions)
(1) A person who has overall control of the implementation of a task (hereinafter referred to as "general manager") shall meet each of the following qualifications:
1. A person belonging to the relevant major institution: Provided, That the foregoing shall not apply where the relevant person is allowed to hold concurrent positions and/or offices by the head of the institution, to which he/she originally belongs, in accordance with relevant statutes; where an industrial technology research cooperative under the Act on the Support of Industrial Technology Research Cooperatives is the major institution; and where the relevant person is a researcher of a Government-funded research institute who works at an enterprise to provide support for the enterprise;
2. A person who has experience and capabilities in the relevant sector.
(2) A general manager shall have the following authority and responsibilities:
1. Preparing project plans;
2. Proposing, managing, and executing the use of project funds;
3. Adjusting and supervising the process of performing tasks;
4. Preparing annual reports, phased outcome reports and final outcome reports on implementation tasks, reports on the utilization status of outcomes of the tasks, and reporting on the results thereof;
5. Utilizing outcomes, such as implementing the results of task performed;
6. Utilizing and managing equipment, and providing relevant data;
7. Participating in exhibitions on outcomes and presentations on completed tasks;
8. Inspecting and adjusting the conditions for implementation of each specific task (in cases of a general manager for general tasks);
9. Comprehensive adjustment, supervision, etc. of technological development (in cases of a manager for general tasks);
10. Matters on the preparation and management of research notebooks;
11. Application for the Evaluation Task Force under Article 6.
(3) No general manager shall be replaced at will but shall be replaced in any of the following cases, subject to approval from the relevant agency vested with exclusive responsibility; and in such cases, the foregoing need not apply to projects designed to promote international cooperation on industrial technology:
1. Where the general manager intends to reside in a foreign country: Residing in a foreign country continuously for at least 1/4 of the relevant execution period or for at least six months, whichever is the shorter of the two periods;
2. Where the head of the relevant major institution intends to dispatch the general manager to a domestic or foreign institution (including for education, training, business trips, etc.): Dispatching him/her for at least 1/4 of the relevant execution period or for at least six months, whichever is the shorter of the two periods;
3. Where a cause arises preventing the general manager performing the relevant task continuously for at least six months.
(4) When a new, annual, phased, or final evaluation is conducted, the relevant general manager shall make a presentation on the project plan and on actual performance in comparison with the plan, except in extenuating circumstances.
(5) Paragraphs (1) through (3) shall apply mutatis mutandis to the responsible person of the relevant participating institution: Provided, That "major institution" and "general manager" in paragraphs (1) through (3) shall be construed as "participating institution" and "responsible person of the participating institution," respectively.
CHAPTER III IDENTIFICATION OF DEMAND FOR PROJECTS AND PUBLIC ANNOUNCEMENT OF IMPLEMENTATION PLANS
 Article 16 (Industrial Technology Classification System)
(1) The Minister may establish and utilize an industrial technology classification system to efficiently perform affairs relating to the planning, evaluation, and management of projects.
(2) Attached Table 1 shall apply to the industrial technology classification system.
 Article 17 (Identification of Sectors Eligible for Subsidization on Project-basis)
(1) In order to identify sectors eligible for subsidization on project-basis, the Minister may require the head of an agency vested with exclusive responsibility or the head of a specialized institution in the relevant sector to perform the following:
1. A technology foresight study to analyze and forecast technology trends according to a changing technology environment;
2. A survey on technological levels and analysis of technological competitiveness for each technology sector domestically and overseas;
3. Establishment of a medium and long-term technology blueprint or technology roadmap to produce core technologies that need to be secured from a mid-to long-term perspective;
4. A demand survey, etc. to identify tasks eligible for subsidization;
5. Other matters deemed necessary by the Minister to identify sectors eligible for subsidization.
(2) The head of the agency vested with exclusive responsibility or the head of the specialized institution in the relevant sector, shall report to the Minister on the outcomes of performing the affairs specified in each subparagraph of paragraph (1).
 Article 18 (Task Planning)
(1) Where the Minister intends to perform a project, he/she shall formulate task plans in relation to the technological and economic feasibility, etc. of the relevant task.
(2) In formulating task plans pursuant to paragraph (1), the Minister shall examine the following: Provided, That the Minister need not examine the following feasibility if such examination is inappropriate in light of the nature of the relevant task:
1. Technological feasibility: Trends in domestic and foreign technologies, trends in patents and standardization, trends in certification or design, etc. (limited to where it is necessary to link the examination with project outcomes by task, in cases of examination of standardization trends or trends in certification or design);
2. Economic feasibility: Trends in domestic and overseas markets, the status of the relevant industry, possibility of commercialization, need for better regulation, ripple effects, etc.
(3) To efficiently formulate task plans prescribed in paragraph (1) and (2), the Minister may require the head of an agency vested with exclusive responsibility or the head of the Strategic Planning Task Force to manage overall affairs relating to task planning.
(4) The head of the agency vested with exclusive responsibility and the head of the Strategic Planning Task Force may take necessary measures, such as making public the process or results of task planning, in order to reflect consensus from the private sector in task planning.
(5) The head of the agency vested with exclusive responsibility and the head of the Strategic Planning Task Force may have a PD for each technology sector to formulate task plans for a mid-to long-term project; matters relating thereto shall be prescribed separately.
 Article 19 (Public Announcement of Implementation Plans)
(1) The Minister shall formulate and publicly announce a comprehensive implementation plan each year which includes directions for implementation of projects for the relevant year, subsidization plans and implementation schedules for each project, etc.: Provided, That a public announcement may not be made, if the public announcement is likely to have impacts on national security or socioeconomic ramifications, or if it is deemed unnecessary to make the public announcement, given that the relevant project is designated according to policy or in light of the nature of the project.
(2) The Minister shall formulate and publicly announce implementation plans on project-basis according to the comprehensive implementation plan referred to in paragraph (1) in order to publicly announce new tasks eligible for subsidization, and the implementation plans on project-basis shall contain the following:
1. The objectives of a project, sectors eligible for subsidization, and the scale and period of subsidization for project funds;
2. The system for implementation of each project;
3. Criteria for subsidizing project funds and criteria for collecting royalties;
4. Sectors eligible for subsidization, qualifications for application, and criteria for disentitlement for subsidization;
5. Procedures and standards for evaluation (including criteria for preferential treatment and demerit points);
6. Applicable statutes and regulations;
7. The method and deadline for application;
8. Documents to be submitted;
9. An agency vested with exclusive responsibility for the relevant project (including an institution performing some of the affairs of the agency vested with exclusive responsibility, if such institution exists);
10. Security levels (in compliance with the classification standards prescribed in Article 9 (1) of the Guidelines for Security Management of Projects for Innovation of Industrial Technology (hereinafter referred to as "Guidelines for Security Management")) of tasks;
11. The characteristics by project, such as participation in projects by an enterprise, university, research institute, organization, etc. located overseas (hereinafter referred to as "overseas institution");
12. Other matters necessary for deliberation, etc. on project plans.
(3) The Minister shall publicly announce the implementation plans on project-basis referred to in paragraph (2) on the relevant web-site (the comprehensive information system for industrial technology R&D, etc.) or through the media, etc. for at least 30 days: Provided, That the foregoing shall not apply where it is deemed necessary to urgently implement the relevant project according to industrial technology policy.
CHAPTER IV APPLICATION FOR AND SELECTION OF PROJECTS
 Article 20 (Application for Projects)
(1) A person who intends to perform a project prescribed in Article 3 shall prepare a project plan, etc. in a separately prescribed form and file an application with the Minister, the head of the relevant agency vested with exclusive responsibility, or the head of an institution separately designated by the Minister.
(2) A participating researcher for a project for which an application has been filed pursuant to paragraph (1) shall have a participation rate of at least 10% and engage in not more than five simultaneously-performed tasks for a national research and development project, and the relevant general manager (including the relevant manager for specific tasks) shall engage in not more than three simultaneously-performed tasks: Provided, That none of the following tasks shall be deemed a simultaneously performed task, but included in the participation rate of a participating researcher:
1. A task completed within four months from the closing date for project application;
2. A task relating to a preliminary survey, research on planning and evaluation, testing, inspection, or analysis;
3. A general task (limited to tasks designed to adjust and manage specific tasks) for a type of project consisting of general and specific tasks;
4. A technological development task jointly performed by a small-medium enterprise and non-profit institution, in an amount, etc. separately determined through consultations between the Minister and the Minister of Science and ICT;
5. A small-scale technological development project, the amount of which does not exceed an amount separately determined through consultations between the Minister and the Minister of Science and ICT.
(3) The following restrictions shall be placed on the number of tasks for a national research and development project under the jurisdiction of the Ministry of Trade, Industry and Energy simultaneously performed by a small-medium or middle-standing enterprise as a major institution, among major institutions filing an application under paragraph (1): Provided, That the cases specified in the following shall not be deemed simultaneously-performed tasks:
Type of major institutionNormal enterprise Marginal enterprise
Middle-standing enterprise54
Small-medium enterprise 32
1. A task specified in any subparagraph of paragraph (2);
2. A task applied for by an enterprise which has obtained approval for its corporate restructuring plan pursuant to Article 10 of the Special Act on the Corporate Revitalization, before the plan is completed;
3. A task subsidized with a budget compiled based on a preliminary feasibility study;
4. A project to develop and disseminate national standards and technology;
5. A task applied for by an enterprise graded as "innovatively performed" [including "completed early (innovatively performed)") in the final evaluation (any task previously selected once shall be excluded);
6. A task expressly specified as a competition-type task in the public announcement.
(4) A project plan shall expressly specify the project type and matters corresponding to the objectives for implementing the relevant project, and shall contain matters separately required based upon the characteristics of each project.
 Article 21 (New Evaluation)
(1) In order to evaluate project plans submitted pursuant to Article 20, the head of an agency vested with exclusive responsibility shall formulate an evaluation plan and report to the Minister thereon. In such cases, the Minister may require the head of the agency vested with exclusive responsibility to correct or supplement the evaluation plan.
(2) The head of an agency vested with exclusive responsibility shall conduct preliminary examinations of such matters as the requirements for a project plan, overlapping tasks, restrictions on participation and application qualifications to determine project plans to be evaluated, and may conduct on-site fact-finding surveys, interviews, etc., if necessary. In such cases, a person who has submitted a project application pursuant to Article 20 shall cooperate on matters requested by the head of the agency vested with exclusive responsibility, in conducting preliminary examinations, etc. of his/her qualifications.
(3) The head of an agency vested with exclusive responsibility shall organize an evaluation committee by utilizing the Evaluation Task Force referred to in Article 6 to evaluate project plans, and shall evaluate project plans, which have been determined to be evaluated pursuant to paragraph (2), taking the following into comprehensive consideration; and in such cases, the project plans shall undergo a separate procedure, such as an examination of the inducement of private investment, if the Minister has prescribed such procedure to accomplish the objectives of each project:
1. The need for, and objectives, details and execution method, of an implementation task, and expected outcomes;
2. Capabilities of performing an implementation task (including research capabilities of the relevant general manager and theresponsible person of the relevant participating institution, an executing institution's management and support capabilities, the level of observance of research ethics, etc.);
3. The method and strategies for, and system of, performing an implementation task, and the division of roles between executing institutions;
4. The degree of securing facilities for task execution, and the feasibility of construction of equipment;
5. Appropriateness of project funds and feasibility of the execution period;
6. Overlapping with a task already or currently executed as part of a national research and development project (excluding where at least two major institutions are allowed to perform an identical task to ensure efficient project management, where executing a similar task is necessary, and where an implementation task falls under the category of conscientiously performed tasks deemed to require continued subsidization);
7. Possibility of utilizing project outcomes;
8. Reasonableness of the classification of security levels (examining the appropriateness of applying the classification standards under Article 9 (1) of the Guidelines for Security Management);
9. Appropriateness of a plan to take safety measures for laboratories, etc. in relation to task execution;
10. Whether a publicly-known technology or intellectual property right exists, but the following shall be excluded herefrom:
(a) A task at the basic research phase;
(b) A task, the major institution of which is a small-medium enterprise and the total execution period of which does not exceed one year;
(c) A project for establishing infrastructure, or a project for nurturing human resources.
(4) In examining or evaluating project plans, the Minister may give preferential or disadvantageous treatment thereto, by separately establishing standards for preferential treatment by project.
(5) The head of an agency vested with exclusive responsibility may require the relevant applicant to submit a revised project plan by integrating similar or identical project plans or organizing joint research. In such cases, where the relevant major institution or general manager fails to supplement the project plan, etc. within a specified period, the applicant may be disentitled to subsidization.
(6) If it is necessary to reflect policies for national research and development projects, or if other need arises, the head of an agency vested with exclusive responsibility may select at least two major institutions to undertake the same task.
(7) The head of an agency vested with exclusive responsibility shall notify the head of the relevant major institution of evaluation results which include the list of evaluation members and comprehensive evaluation opinions (excluding evaluation points and opinions of each evaluation member).
(8) Where the head of the relevant executing institution has objections to the notified evaluation outcomes because he/she determines that serious defects exist in the selection method or procedures, the head of the relevant major institution may file an objection with the head of the relevant agency vested with exclusive responsibility within ten days (referring to the day immediately following the last day of such period, if the last day falls on a Saturday or a holiday or substitute holiday under the Regulations on Holidays of Public Agencies, or Workers' Day under the Designation of Workers' Day Act) after receipt of a notice of the evaluation results: Provided, That an objection shall be filed only once, and the head of the major institution shall comply with a request to file an objection made by the head of the executing institution.
(9) The head of an agency vested with exclusive responsibility shall report to the Minister on the outcomes of evaluation of project plans.
 Article 22 (Determination of Executing Institutions)
(1) The Minister shall notify the head of an agency vested with exclusive responsibility of an executing institution that he/she has finally selected by comprehensively deliberating on the outcomes of evaluation of project plans under Article 21, the size of budgets, directions of industrial technology policies, etc., and the head of the agency vested with exclusive responsibility shall notify such fact to the head of the relevant major institution.
(2) Where the head of the major institution in receipt of a notification of the selection intends to modify its project plan before a relevant agreement is entered into, he/she shall do so by applying Article 27 mutatis mutandis.
(3) The Minister may cancel the selection of the relevant task before an agreement thereon is entered into, if there exists a ground for disqualification under Article 21 (2) or a ground for the revocation of an agreement under Article 28.
(4) The head of an agency vested with exclusive responsibility shall keep project plans and new evaluation-related documents for either a task not selected or a task, an agreement on which has not been entered into, for one year after the date of the notification under paragraph (1), but may destroy such documents after the period.
CHAPTER V COMPUTATION OF PROJECT FUNDS
 Article 23 (Appropriation of Project Funds)
(1) Project funds shall be appropriated for each institution executing a task, and shall consist of direct and indirect expenses.
(2) The project funds prescribed in paragraph (1) shall be appropriated in cash or in kind for each year, and the details of appropriation thereof shall be prescribed separately.
 Article 24 (Standards for Subsidization with Contributions)
(1) The Minister may fully or partially subsidize project funds with contributions when an agreement is entered into or when the execution period for the relevant year commences.
(2) Where the Minister partially subsidizes the project funds with contributions, he/she may grade a payment of contributions according to type of the relevant executing institutions and types of tasks, as specified in the following table:
Type of
executing institution
Type of task
Source technology typeInnovation product type
Large enterprise Not more than 50% of the project funds of the relevant executing institutionNot more than 33% of the project funds of the relevant executing institution
Middle-standing enterprise Not more than 70% of the project funds of the relevant executing institutionNot more than 50% of the project funds of the relevant executing institution
Small-medium enterpriseNot more than 75% of the project funds of the relevant executing institutionNot more than 67% of the project funds of the relevant executing institution
Others Not more than 100% of the project funds of the relevant executing institutionNot more than 100% of the project funds of the relevant executing institution
(3) In any of the following cases, the standards for subsidization may be determined otherwise when deliberations are conducted by the deliberation committee prescribed in Article 5 or when implementation plans by project are publicly announced under Article 19, notwithstanding paragraph (2); and the standards for allocation of Government contributions for small-medium or middle-standing enterprises may be determined otherwise for each project or task when it is publicly announced, if it is necessary for strengthening support for small-to-medium or middle-standing enterprises according to the relevant policies:
1. A project to develop infrastructure for industrial technology;
2. A project to utilize and supply industrial technology human resources;
3. A project for international cooperation on industrial technology;
4. Other project or type not classified under either the source technology type or the innovation product type.
(4) Where at least two specific tasks constitute a single task, the standards for subsidization with contributions shall apply to each specific task.
(5) Annual Government contributions are subject to changes in Government policies, budgets, evaluation results of an evaluation committee, etc. throughout the total execution period.
 Article 25 (Private Financing)
(1) Private financing shall be provided in cash or in kind by an executing institution or local government. In such cases, the private financing for a task performed under an annual agreement shall be provided when the agreement for the relevant year is entered into; and that for a task performed under a turnkey or phased agreement shall be provided before an executing institution or local government requests the payment of Government contributions annually.
(2) A share of cash in the private financing shall be paid by a participating enterprise (possibly including a private association or organization by type of business based upon the characteristics of the relevant project): Provided, That the foregoing shall not apply to any task for which it is deemed necessary for a non-profit institution to bear a share of the project funds based upon the characteristics of each project.
(3) Where executing institutions for an identical task mutually engage in transactions, they shall make payment in kind.
(4) Where project funds of an executing institution are partially subsidized with contributions, the share of cash in the private financing to be paid by the executing institution shall be as specified in the following table: Provided, That in cases of a project specified in Article 24 (3), the share of cash may be determined otherwise when deliberations are conducted by the deliberation committee under Article 5 or when a public announcement is made about implementation plans by project under Article 19:
Type of
executing institution
Type of task
Source technology typeInnovation product type
Large enterprise
At least 60% of the share of private financing to be borne by the relevant executing institution
Middle-standing enterprise At least 50% of the share of private financing to be borne by the relevant executing institution
Small-medium enterpriseAt least 40% of the share of private financing to be borne by the relevant executing institution
OthersPaid if necessary
(5) Where a non-profit organization pays cash or where a local government partially bears project funds, the standards for subsidization with contributions referred to in Article 24 and the standards for private financing referred to in paragraphs (1) through (4) may be determined otherwise.
(6) Where a middle-standng or small-medium enterprise actually employs young personnel (hereafter in this Article, referred to as "additionally employed personnel") during the execution period, even if the enterprise does not present or formulate a plan to newly hire the additionally employed personnel in excess of the number of personnel required to be employed during the total execution period (hereafter in this Article, referred to as "personnel subject to mandatory employment") pursuant to Article 26 (11) and (12), when the execution period commences, the enterprise may be granted a reduction for its share of cash in the private financing, which is equivalent to the personnel expenses for the additionally employed personnel in the relevant year, with the approval from the relevant agency vested with exclusive responsibility; and may additionally provide the equivalent of the cash in kind. In such cases, where the share of cash in the private financing has already been paid, the limits on a reduction for cash in the private financing shall be the cash balance of the project funds that remains when the relevant executing institution requests approval for the reduction, explaining additional employment.
(7) Where a reduction for the share of cash in the private financing has been granted pursuant to paragraph (6) but the amount executed as personnel expenses for the additionally employed personnel is less than the reduction, the payment in kind equivalent to the difference shall not be deemed made when the accounts for the relevant year are settled.
(8) Where the additionally employed personnel referred to in paragraph (6) are still employed even after the execution period of the relevant year, the share of cash in the private financing for the relevant execution period, which is equivalent to the personnel expenses executed for such personnel, shall be reduced.
(9) Where a middle-standng or small-medium enterprise newly employs an additional participating researcher who is 34 years of age or younger (at the time of employment), whose employment was not initially planned, for a task not subject to mandatory employment under Article 26 (11) and (12), the enterprise may be granted a reduction for its share of cash in the private financing based on personnel expenses for such newly employed person, in the same manner as it is reduced under paragraphs (6) through (9); and may make an additional payment in kind.
(10) Where a middle-standng or small-medium enterprise adopts external technology, such participating enterprise's share of cash in the private financing for the following year may be reduced by 30% if it is a middle-standing enterprise, and 20% if it is a small-medium enterprise, subject to deliberation by the relevant evaluation committee or research presentation. Even if such a reduction causes a difference in the shares of Government contributions and private financing, no executing institution shall make an additional payment in kind.
CHAPTER VI CONCLUSION OF AGREEMENTS AND MANAGEMENT AND USE OF PROJECT FUNDS
 Article 26 (Conclusion of Agreements)
(1) The head of a major institution shall enter into an agreement, containing the following matters, with the Minister or the head of the relevant agency vested with exclusive responsibility according to a separately determined form, within one month after receipt of the notification of the selection under Article 22: Provided, That the Minister shall directly conclude an agreement, if it is necessary for him/her to conclude an agreement in relation to subsidization, etc. with contributions:
1. The name of a task, agreement period, and period for the utilization of outcomes;
2. The general manager and an executing institution;
3. Spending, use, management, and settlement of project funds;
4. Reporting on, and evaluation of, the outcomes of task execution;
5. Modification and revocation of the agreement;
6. Management of research equipment;
7. Royalties;
8. Vesting (including the succession of an employee's invention defined in subparagraph 2 of Article 2 of the Invention Promotion Act), utilization, and transfer of the outcomes;
9. Sanctions and recovery, where the agreement is violated;
10. Registration and entrustment of the outcomes;
11. Observance of research ethics and prevention of research malpractice;
12. Security management;
13. Consent on the collection and utilization of the project-related information, such as a project plan, report on the project outcomes, and participating human resources;
14. Preparation and management of research notebooks;
15. Safety of laboratories prescribed in the Act on the Establishment of Safe Laboratory Environment, the Occupational Safety and Health Act, and other relevant statutes;
16. Other matters deemed necessary for performing the relevant project.
(2) The head of the major institution shall submit documents necessary for concluding an agreement pursuant to paragraph (1), to the agency vested with exclusive responsibility, and the Minister or the head of the agency vested with exclusive responsibility may cancel the selection of the relevant task, if the head of the major institution fails to conclude the agreement within one month after receipt of the notification of the selection or fails to submit necessary documents without just grounds: Provided, That in cases of an international joint research task, the period shall not exceed two months.
(3) In cases of a task involving a participating institution, an agreement may be entered into by the head of the relevant agency vested with exclusive responsibility, the head of the relevant major institution, or by the head of the relevant participating institution, on a turnkey or individual basis, according to a separately determined form: Provided, That where a foreign institution is the counter-party to the agreement, the head of the agency vested with exclusive responsibility may separately determine the terms and conditions of the agreement, taking into account the nature of the relevant country and project.
(4) An agreement referred to in paragraph (1) may be entered into by applying one of the following; and may be extended if deemed necessary by the Minister:
1. Annual agreement: Agreement entered into for the execution period of approximately one year;
2. A turnkey agreement: Agreement entered into for the total execution period (exceeding one year) on a turnkey basis;
3. A phased agreement: Agreement entered into for each phase by dividing the total execution period into multiple phases of two to four years, respectively.
(5) Where the head of an affiliated institution which is unable to become an independent subject of an agreement because it lacks legal personality, such as an affiliated research institute or research center, intends to conclude an agreement, he/she shall submit a letter of nomination stating that the rights and obligations relating to the relevant task have been delegated to him/her from the head of the institution to which he/she belongs.
(6) The Minister or the head of the agency vested with exclusive responsibility may conclude the agreement referred to in paragraphs (1) through (5) by electronic communication referred to in subparagraph 1 of Article 2 of the Digital Signature Act (limited to a message with a certified digital signature referred to in subparagraph 3 of Article 2 of the same Act).
(7) The head of the agency vested with exclusive responsibility may require the major institution to modify the relevant project plan, if a cause referred to in Article 27 (1) arises before the agreement is entered into.
(8) Where the head of the major institution intends to modify some of the relevant project plan before the agreement is entered into, he/she shall comply with Article 27 (2) and (3). In such cases, the head of the agency vested with exclusive responsibility may determine, again, whether to subsidize the relevant task, subject to evaluation by the relevant evaluation committee.
(9) Where the project plan has been modified pursuant to paragraph (7) or (8), the head of the major institution shall conclude an agreement, subject to the modified terms and conditions.
(10) A small-medium enterprise, which is a major institution, shall establish strategies for patents relating to the relevant task through a patent expert, within two years from the date of commencing the project.
(11) For-profit enterprises undertaking the same task shall newly employ one or more participating researchers (hereinafter referred to as "young personnel"), who are 34 years of age or younger (at the time of employment), per 500 million won based on the aggregate of each participating enterprise's contributions by posting such personnel at one or multiple participating enterprises during the total execution period, after consultation among the enterprises; and shall reflect such employment in their project plans. A person employed six months before the date of public announcement of a project shall also be included in such personnel.
(12) Where the aggregate of each participating enterprise's contributions (based on the planned amount) during the total execution period is at least 500 million won, one or more young personnel referred to in paragraph (11) shall be posted for the first year; and each time the aggregate of the contributions reaches a multiple of 500 million won, one additional person shall be employed by the end of the relevant year: Provided, That the total number of young personnel to be employed during the total execution period shall not exceed the number of personnel specified in paragraph (11).
(13) Paragraphs (11) and (12) may apply otherwise or need not apply, in light of the nature of each project, when a public announcement is made.
 Article 26-2 (Suspension of Conclusion of Agreements)
(1) The head of an agency vested with exclusive responsibility may suspend the conclusion of an agreement on a new or continuing task, if any of the following causes arises:
1. Where the relevant person withdraws from task execution before an agreement is entered into;
2. Where evaluation outcomes are not reflected in the relevant project plan;
3. Where an executing institution fails to contribute its share of cash in the private financing;
4. Where documents necessary for the conclusion of an agreement are not submitted before the deadline for the agreement;
5. Where the qualifications for application for, or execution of, the relevant task are not satisfied;
6. Where an investment contract for a project subject to investment examination is not performed.
(2) Where a cause for suspension remains for at least two months from the date of notification of the conclusion of an agreement, or where it is deemed impossible for such cause to be resolved even before the expiration of the two-month period, the head of the relevant agency vested with exclusive responsibility shall manage the agreement as excluded from subsidization or as suspended.
(3) Where the cause for suspension referred to in paragraph (2) falls under any subparagraph of Article 44 (1), measures may be taken, such as placing restrictions on participation or recovering contributions.
 Article 27 (Amendment to Terms and Conditions of Agreements)
(1) The head of an agency vested with exclusive responsibility may amend the terms and conditions of an agreement, as prescribed by the agreement, if any of the following causes arises:
1. Where the Minister requests the amendment to the terms and conditions of the agreement because he/she deems it necessary;
2. Where the head of the relevant major institution requests the amendment to the terms and conditions of the agreement;
3. Where it is necessary to amend the terms and conditions of the agreement according to budget conditions of the Government, annual performance, outcomes of evaluation of a project plan, in cases of task performed under a turnkey or phased agreement;
4. Where it is necessary to replace an executing institution because the institution has withdrawn from the relevant task.
(2) Where the head of a major institution intends to amend any of the following, he/she shall immediately request, in writing, the head of the relevant agency vested with exclusive responsibility to approve the amendment, and a request for approval for the amendment to the terms and conditions of an agreement shall be made by not later than one month before the expiration of the execution period for the relevant year (In cases of a project, the accounts of which are settled annually, an application for carryover of the project funds shall be filed by the expiry date of the execution period for the relevant year): Provided, That approval from the Minister shall be required for the matters specified in subparagraphs 2 and 3, in cases of a task designated according to policy and a task for which the Minister has concluded an agreement:
1. Replacement of the major institution;
2. Amendment to the final objective;
3. Replacement of the general manager or responsible person of the participating institution under Article 15 (3) and (5);
4. Replacement of a participating institution (including the addition of a participating institution, withdrawal from task execution, etc.);
5. Executing the new purchase of equipment or research facilities at the respective unit prices exceeding 30 million won including value added tax, without any purchase plan formulated originally; or changing equipment or research facilities to those different from the ones under the original plan (including where equipment or research facilities at a purchase originally planned, are not purchased);
6. Amendment to the execution period or agreement period;
7. Amendment to the ratio of the total project funds of each executing institution for the relevant year, to the project funds initially agreed upon; or amendment to private financing (payment in cash and in kind);
8. Carryover of project funds, where the accounts are settled annually;
9. Modification of an account for the management of project funds;
10. Where it is intended to install and operate equipment, which has been installed as part of an infrastructure development project, at a place other than that expressly specified in the original agreement;
11 and 12. Deleted;
13. Where it is intended to install and operate demonstration equipment for an energy technology demonstration project at a place other than that expressly specified in the original project plan agreed upon.
(3) Where the head of a major institution intends to amend the following, he/she shall immediately notify, in writing, such fact to the head of the relevant agency vested with exclusive responsibility: Provided, That an executing institution using a project management system may input the amendments into the system, instead of giving notice thereof:
1. Amending the address (contact information), representative, or name of the major institution or a participating institution;
2. Changing a participating researcher or participation rate (excluding student researchers at the institution for the integrated management of student personnel expenses; and the matters referred to in Article 20 (2) shall be satisfied);
3. Replacing the relevant general manager during the project period after the expiration of the total execution period;
4. Raising indirect expenses of a profit-making institution within the limit under Article 6 (3) of the Guidelines for Project Funds.
(4) Matters agreed upon, other than those specified in any subparagraph of paragraph (2) or (3), may be amended through prior consultations with the relevant agency vested with exclusive responsibility, unless any particular restrictions are imposed thereon under these Guidelines or relevant regulations.
(5) Any amendment to the terms and conditions of an agreement under paragraph (1) or (2) shall enter into force when the Minister or the head of the agency vested with exclusive responsibility notifies the amendment to, or his/her approval for the amendment to, the terms and conditions of the agreement, while any amendment thereto under paragraph (3) shall enter into force when the amendment is notified to the agency vested with exclusive responsibility. In addition, the head of the agency vested with exclusive responsibility or the head of an executing institution shall interpret a notification of the evaluation findings given by the agency vested with exclusive responsibility under paragraph (1) 3 as an amendment to the terms and conditions of the relevant agreement.
(6) Where terms and conditions of an agreement have been amended pursuant to the latter part of paragraph (5), the head of the relevant major institution shall submit the outcomes obtained by reflecting such amendments to the head of the relevant agency vested with exclusive responsibility before he/she requests spending of the project funds for the following year.
(7) Where a new participating researcher replaced pursuant to paragraph (3) 2 is currently restricted from participating in national research and development projects, the head of the relevant agency vested with exclusive responsibility shall notify the head of the relevant major institution that the replacement is revoked.
(8) Where it is necessary to change or cancel his/her application for deliberations on the purchase of equipment, the price of which is 30 million won after filing the application, the head of a major institution may file an application for the change or cancellation thereof with an institution specializing in equipment, within 20 days after filing the initial application. In such cases, if it is necessary to obtain approval for the change under paragraph (2) 5, an official document providing for approval for the change issued by the relevant agency vested with exclusive responsibility shall be attached to the application.
 Article 28 (Revocation of Agreements)
(1) Where any of the following causes arises, the Minister or the head of an agency vested with exclusive responsibility may revoke the relevant agreement: Provided, That in cases under subparagraph 5, he/she shall consult with the head of the relevant major institution or the head of the relevant participating institution in advance:
1. Where the contents of the relevant task have already been implemented or overlap with other ongoing task;
2. Where it is deemed impracticable to continue a project due to serious violations of the relevant agreement, such as failure to contribute a share of private financing, failure to submit a report, etc.;
3. Where project funds have been embezzled, swindled, or misappropriated for other than originally intended purposes;
4. Where it is deemed impracticable to anticipate desired results due to delayed implementation, or suspension, of a project, or where the relevant institution is deemed incapable of completing a project;
5. Where a major institution or participating institution intends to withdraw from performing a project;
6. Where task is graded as "suspended" or "poorly performed" following the annual, phased or final evaluation conducted under Articles 32-3 through 32-6, or where task is suspended because it is considered to be problematic task;
7. Where it is deemed impossible to continue a project continuously because a serious cause arises, including bankruptcy, court receivership or business closure of a major institution, participating institution, etc., or where it is deemed unnecessary to continue a project;
8. Where a project plan or document submitted is found to be false;
9. Where an executing institution does not have its task undergo evaluations;
10. Where an institution is selected as an executing institution for task by wrongful means, such as outside pressure, falsity or solicitation; or where task is found to be subject to prior exclusion from subsidization;
11. Where research malpractice is involved;
12. Where facilities, equipment, etc. for the purpose of establishing technology infrastructure are arbitrarily disposed of;
13. Where it is deemed impossible to continue task because important research information has leaked out due to poor security management;
14. Where an investment contract has been changed, nullified or transferred, in relation to a project for which the inducement of private investment is mandatory;
15. Where a cause specified in any subparagraph of Article 44 (1) arises;
16. Where restrictions on participation have been determined pursuant to Article 44, because the relevant general manager used project funds for other than originally intended purposes in the course of performing another research and development task.
(2) Where a cause specified in any subparagraph of paragraph (1) arises, the head of an agency vested with exclusive responsibility shall take appropriate measures, such as suspension of subsidizing project funds and on-site fact-finding surveys. In such cases, he/she may require rectification of violations, etc. instead of revoking the relevant agreement, if the relevant case is deemed insignificant.
(3) Where task has been determined "suspended (faithfully performed, poorly performed)" as a result of an annual, phased or special evaluation, a notification of the revocation of an agreement shall be replaced by a notification of the confirmation of evaluation outcomes.
(4) Where an agreement has been revoked pursuant to paragraph (1), or where a cause specified in paragraph (1) is discovered after the termination of an agreement, the Minister or the head of the relevant agency vested with exclusive responsibility to whom his/her authority has been entrusted may impose sanctions on, or recover contributions from, the relevant institution or person depending on reasons attributable, pursuant to Article 44.
 Article 29 (Payment of Contributions)
(1) The Minister or the head of an agency vested with exclusive responsibility may pay contributions in lump sum or in installments within one month after execution of an agreement; and may split the payment for each execution period, if a turnkey or phased agreement has been concluded: Provided, That the timing for payment may vary, depending on the nature of a project.
(2) In the case of a task for which an executing institution contributes its share of cash in the private financing, contributions shall be paid after cash is deposited into an account for project funds (a virtual account issued through the RCMS, in cases of a project using the RCMS): Provided, That if the deposit is delayed due to unavoidable circumstances, contributions may be paid first, subject to approval for the payment from the relevant agency vested with exclusive responsibility.
(3) Where an executing institution fails to fulfill its obligations, such as submitting various reports, paying royalties, submitting a report on payment of royalties, and paying any residual money from settlement or an amount to be recovered; or where any financial risk occurs which is equivalent to the grounds for prior exclusion from subsidization, as at the commencement of each execution period for which no separate agreement has been concluded, regarding a task performed under a turnkey or phased agreement, the relevant agency vested with exclusive responsibility may suspend the payment of contributions to such executing institution.
(4) Where the grounds specified in paragraph (3) cease to exist within two months from the commencement date of the execution period in the relevant year; or where the executing institution where the grounds have arisen is replaced, the relevant agency vested with exclusive responsibility shall pay the contributions for the relevant year to such executing institution: Provided, That where the grounds have arisen in a major institution, replacement of such major institution shall not be permitted, and the institution shall voluntarily remove the grounds within two months.
(5) Where it is impracticable to remove the grounds specified in paragraph (3); or where the grounds are not removed within two months, the relevant agency vested with exclusive responsibility shall decide to suspend the task in question through special evaluation.
(6) The head of an agency vested with exclusive responsibility shall report to the Minister on unexecuted contributions and interest thereon quarterly, and pay them to the National Treasury.
(7) If necessary to efficiently allocate budget funding, the Minister may subsidize continuing tasks, etc. with adjusted Government contributions by reflecting evaluation outcomes, etc. of an evaluation committee.
(8) The Guidelines for Computation, Management, Use, and Settlement of Project Funds for Projects for Innovation of Industrial Technology (hereinafter referred to as the "Guidelines for Project Funds") shall apply to other details of the payment of contributions.
 Article 30 (Management and Use of Project Funds)
(1) The head of an executing institution shall manage project funds using a separate bankbook or account, by separating the funds from funds for other purposes.
(2) Notwithstanding paragraph (1), a non-profit research institute performing at least ten national research and development projects may use a single bankbook, but notwithstanding manage each task, using a separate account.
(3) The head of an executing institution shall manage and use project funds with the care of a good manager, and comply with the Guidelines for Project Funds for more details.
(4) The Minister may have the head of an agency vested with exclusive responsibility establish and operate a computer system capable of managing the execution of project funds for each executing institution, and may designate the Korea Evaluation Institute of Industrial Technology as an institution in charge of operating the RCMS to perform all or some the following affairs:
1. Establishment and operation of the RCMS;
2. Management affairs, such as the execution and settlement of project funds for the projects managed through the RCMS;
3. Statistics and analysis of the details of project funds for each executing institution and monitoring results thereof;
4. Matters deemed necessary by the Minister for integrated management of project funds.
(5) Regarding a task subject to the voucher program, an agency vested with exclusive responsibility may spend the project funds in stages to a participating institution designated in an agreement, by reflecting the relevant major institution's intention on the use of the voucher.
(6) Where a major institution delays the manifestation of its intention on whether to use the voucher or objects to the spending of the project funds to a participating institution, regarding a task subject to the voucher program, the participating institution may request the relevant agency vested with exclusive responsibility to perform such activities as intervening to reconcile opinions between the major institution and participating institution, presenting appropriate measures to solve problems caused by failure to spend the project funds, or making recommendations.
 Article 31 (Integrated Management, etc. of Equipment)
(1) Where an executing institution intends to purchase equipment, the price of which exceeds 30 million won, it shall submit the purchase proposal for deliberation by the central deliberation committee on equipment.
(2) Equipment which has undergone the deliberation under paragraph (1) shall be purchased by making a request for central procurement on the Korea ON-line E-Procurement System of the Public Procurement Service; and an application for disposal of equipment shall be filed through e-Tube, if it is deemed idle or disused.
(3) An executing institution shall register, on e-Tube, the information on all purchased equipment, the price of which exceeds ten million won, including equipment purchased through the procedures referred to in paragraph (2).
(4) Where equipment purchased for shared use becomes idle or disused, the Minister may have the head of an institution specializing in equipment manage such equipment through recovery, relocation, etc. thereof.
(5) The head of an executing institution or an institution to which idle or disused equipment has been transferred shall submit to the head of an institution specializing in equipment, a report on the utilization records of equipment purchased for shared use, as prescribed by the separate Guidelines referred to in subparagraph 5 of Article 47.
(6) Other details on deliberation on the purchase of equipment, the purchase, management, disposal, transfer, etc. of equipment shall be prescribed by separate Guidelines.
 Article 31-2 (Purchase of Goods Valued at 20 Million Won or More)
(1) Where a person (excluding universities, colleges, government-funded research institutes, and other non-profit corporations) intending to perform a project plans to purchase a sample or material as a single item, the total value of which in the relevant execution period is 20 million won or more (including value added tax), when filing an application for the project, the person shall specify the need for such purchase, the appropriate quantity thereof, etc. in a project plan. This shall also apply where a person plans to purchase a sample or material as a single item, the value of which is equivalent to the aforementioned amount, when preparing a project plan for the following year or phase, regarding a task for which an annual or phased agreement is concluded.
(2) The head of an agency vested with exclusive responsibility shall require an evaluation committee to examine the contents specified in paragraph (1), while conducting new, annual, and phased evaluations.
CHAPTER VII EVALUATION OF PROJECT OUTCOMES AND SETTLEMENT OF PROJECT FUNDS
 Article 32 (Types and Basic Principles of Evaluations)
(1) Types of evaluations conducted for implementation projects shall be as follows:
1. Annual evaluation;
2. Phased evaluation;
3. Final evaluation;
4. Special evaluation.
(2) Where a project constitutes the grounds specified in Article 44 (1) as a finding of evaluations conducted under paragraph (1), the head of the relevant agency vested with exclusive responsibility may take measures, such as placing restrictions on participation and recovering Government contributions.
(3) The head of a major institution may file an objection to evaluation outcomes in writing, and the head of the relevant agency vested with exclusive responsibility may assess the objection raised.
(4) An absolute or relative evaluation or a combination of the two aforementioned evaluations may be adopted, depending on the characteristics of each project, such as the scale of tasks subject to evaluations; and budget subsidization may be graded or a low-grade task may be suspended according to the results of the evaluations. In such cases, the detailed criteria and standards for grading, the suspension rate, and other matters may be separately established when plans for evaluation are formulated.
(5) While performing task, the head of an executing institution shall prepare and manage a research notebook in compliance with the guidelines for research notebooks prescribed in Article 29 (1) of the National Management Regulations, and shall present the notebook when the relevant agency vested with exclusive responsibility conducts any on-site survey. In cases of a project other than technological development projects, the research notebook may be substituted by an educational journal, equipment journal, or by other method that reflects the characteristics of each project.
(6) Where the head of an agency vested with exclusive responsibility intends to hold an evaluation committee meeting referred to in Article 7 to deliberate on project outcomes or problematic task prescribed in Articles 32-2 through 32-6, he/she shall include in the meeting, at least one member who participated in a committee meeting on new evaluations on an executing institution for the relevant task, and shall ensure that the evaluations are conducted professionally, objectively, and fairly, by utilizing a foreign expert, etc., if necessary.
(7) An annual evaluation may be omitted for any task for which a turnkey or phased agreement has been entered into pursuant to Article 26 (4).
(8) The Minister may separately determine details necessary to conduct the evaluations under paragraph (1), taking into account the characteristics of each task and project.
 Article 32-2 (Inspection of Progress)
(1) Where the time arrives to inspect the progress of task described in the relevant project plan, or where an agency vested with exclusive responsibility requests a report on the progress, the head of a major institution shall submit the report by filling in a separate form. In such cases, if it is deemed necessary to alter objectives, etc. due to changes, etc. in the external conditions, he/she may submit relevant data on the alteration of objectives, etc. along with the report.
(2) Upon receipt of a report prescribed in paragraph (1), the head of the agency vested with exclusive responsibility may inspect the progress of the task by means of interviews, on-site fact-finding surveys, etc., and may reflect the outcomes of the inspection in the relevant annual or phased evaluations.
(3) The head of the agency vested with exclusive responsibility may determine whether to suspend a task, depending on the outcomes of inspection conducted under paragraphs (2) by conducting a special evaluation, if necessary.
 Article 32-3 (Annual Evaluation)
(1) The head of a major institution shall submit, to the head of the relevant agency vested with exclusive responsibility, an annual report and a table on self-inspection of security management prepared in separate forms, one month before the completion of task for the relevant year. In such cases, a separately prepared project plan for the following year shall be submitted, if the relevant task is performed under an annual agreement.
(2) The head of the agency vested with exclusive responsibility shall grade the relevant task as "continuing," "suspended (faithfully performed, poorly performed)," or "completed early (innovatively performed, average, faithfully performed)" by inspecting the report referred to in paragraph (1) or through on-site surveys, evaluations, etc. by an evaluation committee. In such cases, "completed early (faithful performance)" shall not apply to the first-year evaluation.
(3) "Suspended (faithfully performed)" shall apply only where the relevant executing institution does not constitute the grounds for restrictions on participation in the relevant task or for recovery of Government contributions.
(4) A task graded as "suspended (faithfully performed)" or "suspended (poorly performed)" shall be deemed revoked pursuant to Article 28, upon notification of the evaluation outcomes.
(5) The head of the agency vested with exclusive responsibility may determine the evaluation grades and procedures otherwise, taking into account the characteristics of each project.
 Article 32-4 (Phased Evaluation)
(1) The head of a major institution shall submit to the head of the relevant agency vested with exclusive responsibility, a report on the relevant phase, a plan for the following phase, and a table on self-inspection of security management integratedly prepared in separate forms, one month before the completion of a phased agreement.
(2) The head of the agency vested with exclusive responsibility shall grade the relevant task as "continuing," "suspended (faithfully performed, poorly performed)," or "completed early (innovatively performed, average, faithfully performed)" through on-site surveys, evaluations by the evaluation committee on the report on the relevant phase, project plan for the following phase, etc. referred to in paragraph (1).
(3) In conducting phased evaluations, the head of the agency vested with exclusive responsibility may investigate domestic and international patent trends, technology trends, standardization or design trends (limited where linkage with standardization or design is necessary), the possibility of commercialization, etc., reflecting the outcomes of the investigations in the evaluation of the relevant phase.
 Article 32-5 (Special Evaluation)
(1) The head of an agency vested with exclusive responsibility may conduct special evaluations to suspend a task or take other measures even while the task is underway, if an executing institution suffers sudden financial difficulties or delays the performance of the task, or if a cause for the revocation of the relevant agreement prescribed in Article 28 arises or is likely to arise.
(2) The head of an agency vested with exclusive responsibility may conduct special evaluations even after task has been completed, if he/she suspects embezzling, swindling, or misappropriating project funds, research malpractice, or other reason for the revocation of the relevant agreement specified in Article 28 which was not discovered in the previous task evaluation process.
(3) The head of an agency vested with exclusive responsibility may take necessary temporary measures, including suspending the use of project funds until the evaluations are completed, if necessary; and Articles 32-3 (2) through (5) and 32-6 (3) and (4) shall apply mutatis mutandis to other procedures and standards for special evaluations.
(4) Where it is deemed unnecessary to continuously conduct research and development due to changes in technology or the market environment in the course of research and development, the head of an agency vested with exclusive responsibility may conduct a special evaluation to review the reasonableness of withdrawal therefrom either ex officio or upon request of the relevant major institution.
 Article 32-6 (Final Evaluation)
(1) Upon completion of a task, the head of the relevant major institution shall submit a final report (including electronic files) prepared in a separate form, to the head of the relevant agency vested with exclusive responsibility, along with a table of self-inspection of security management, within 45 days from the completion of the task.
(2) When submitting a final report, an executing institution shall attach a test report issued by a certified testing institution thereto: Provided, That where the testing method is not standardized or where it is impracticable to specify a certified testing institution, the executing institution may reflect, in the final report, the results obtained by outsourcing the development of the testing method to a certified testing institution; submit test results (issued by a certified testing institution) obtained through consultation by a certified testing institution; or replace the test report with an evaluation by an enterprise with demand.
(3) The head of the agency vested with exclusive responsibility shall grade the final report referred to in paragraph (1) as "innovatively performed," "average," "faithfully performed," or "poorly performed" through on-site surveys, evaluations by the evaluation committee, etc.
(4) The head of the agency vested with exclusive responsibility may determine evaluation grades and procedures otherwise, taking into account the characteristics of each project.
(5) With regard to paragraph (4), the head of the agency vested with exclusive responsibility may conduct evaluations by dividing them into evaluations on technology and evaluations on commercialization to improve outcomes, if necessary.
 Article 32-7 (Procedures for Evaluations and Objections)
(1) The head of an agency vested with exclusive responsibility shall notify the head of the relevant major institution of the outcomes of the evaluations by the evaluation committee prescribed in Articles 32-3 through 32-6: Provided, That the foregoing may not apply to any special evaluation referred to in Article 32-5.
(2) Where an executing institution fails to submit a report, etc. required to conduct the evaluations prescribed in Articles 32-3 through 32-6, the relevant task may be graded as "suspended (unfaithful)" or "poorly performed."
(3) Where the relevant executing institution judges that there exists a serious problem with the evaluation procedures in relation to the evaluation outcomes referred to in paragraph (1), the head of the major institution may file an objection with the head of the relevant agency vested with exclusive responsibility. In such cases, Article 21 (8) shall apply mutatis mutandis, and the person who has filed the objection may file a request to challenge the existing evaluation members.
(4) The head of the agency vested with exclusive responsibility shall report to the Minister on the evaluation outcomes of an executed task to request his/her verification thereof; and the Minister shall verify the outcomes and notify the head of the agency vested with exclusive responsibility thereof. The head of the agency vested with exclusive responsibility shall in turn notify the head of the relevant major institution of the outcomes of the verification by the Minister.
(5) The Minister may separately determine details necessary for the evaluations conducted under paragraph (1), taking into account the characteristics of each project.
(6) Where the head of the agency vested with exclusive responsibility conducts evaluations, the head of an institution specializing in equipment may present his/her opinions, as necessary for the evaluations by the agency vested with exclusive responsibility, based on the report on the utilization records of equipment submitted pursuant to Article 31 (5), outcomes of the utilization of equipment obtained through e-Tube or other data.
(7) When conducting evaluations, the head of the agency vested with exclusive responsibility may have an executing institution improve its security management by reflecting review comments in the relevant table on self-inspection of security management.
(8) If necessary for national security, the Minister may not conduct the evaluations prescribed in Articles 32-2 through 32-6.
 Article 33 (Measures Following Evaluation Outcomes)
(1) The Minister may select task, graded as "innovatively performed," as outstanding task identified and therefore, may not recover the residual relevant balance of the relevant project funds: Provided, That where the residual relevant balance of the project funds is not recovered, the head of the relevant major institution shall use the balance for follow-up research relating to the task, such as utilization of outcomes and maintenance of equipment, after obtaining approval therefor from the head of the relevant agency vested with exclusive responsibility.
(2) The head of an agency vested with exclusive responsibility may additionally allocate only the tasks graded as "suspended (faithfully performed)" a task settlement period of up to six months required for the preparation of a report on causes, preparation of theses, application for or registration of patents, or formulation, adoption, etc. of standards; and in such cases, subsidies of less than 10% of the contributions for the relevant year may be additionally granted as necessary expenses without private financing.
(3) The head of the agency vested with exclusive responsibility may have the head of the relevant major institution submit a performance report on a task graded as "faithfully performed."
(4) Where the head of a major institution receives a notification of "suspended (faithfully performed)" or "faithfully performed" or approval for withdrawal from task execution, he/she shall prepare a report on causes (performance report) describing the grounds for suspending the relevant project (faithfully performed), faithfully performed, or withdrawn, and then submit the report to the head of the relevant agency vested with exclusive responsibility, within 45 days after receipt of the notification of the evaluation outcomes or of approval, while the head of the agency vested with exclusive responsibility may make public the relevant case so that an executing institution, etc. can utilize the relevant outcomes: Provided, That the report on causes may not be submitted, if task has been suspended because it was classified as subordinate task as a result of a relative evaluation, or if task has been suspended (faithfully performed) according to Government policy on industrial technology.
 Article 34 (Reporting on Actual Use of Project Funds and Settlement)
(1) An executing institution shall report on the actual use of project funds prepared in a separate form to the head of the relevant agency vested with exclusive responsibility or to an institution entrusted with settlement referred to in paragraph (2), within three months after the completion of task for the relevant year (within two months thereafter for tasks managed through the RCMS; and within 45 days thereafter, if the relevant year is the last year on which the task is completed).
(2) The head of an agency vested with exclusive responsibility may entrust the settlement affairs on the actual use of project funds to an external specialized institution (hereinafter referred to as "institution entrusted with settlement"), and the Minister may have agencies vested with exclusive responsibility perform the settlement affairs in a consistent manner by formulating operation plans for the selection and management of institutions entrusted with the settlement.
(3) Where any unexecuted balance or any amount is wrongfully appropriated, the head of an agency vested with exclusive responsibility shall recover an amount equivalent to the share of Government contributions, from the balance or amount.
(4) The head of an agency vested with exclusive responsibility shall report the results of the settlement to the Minister quarterly and conduct self-inspections to ensure that the settlement is not delayed.
(5) The Guidelines for Project Funds shall apply to the details relating to reporting on the actual use of project funds and the settlement thereof.
CHAPTER VIII FOLLOW-UP MANAGEMENT OF PROJECTS AND UTILIZATION OF OUTCOMES
 Article 35 (Vesting, etc. of Outcomes)
(1) A tangible outcome generated in the course of performing a project, such as equipment, research facilities, and prototypes, shall belong to the relevant major institution: Provided, That a tangible outcome acquired by a participating institution for the purpose of owning it under the relevant project plan shall belong to the relevant executing institution.
(2) An intangible outcome generated in the course of performing a project, such as intellectual property rights, copyright in reports, and research notebooks, shall belong solely to the institution that has engaged in research and development of the relevant individual outcome: Provided, That where multiple executing institutions jointly develop an outcome, the outcome shall belong jointly to the executing institutions that participated in the joint development thereof, and joint or sole ownership in an outcome shall be determined by considering each executing institution's contribution to the development of the outcome, based on the details of the relevant project plan (including the implementation method, organization, the research area of each executing institution, composition of the project funds, etc.).
(3) Notwithstanding paragraphs (1) and (2), the Minister may revert ownership in tangible or intangible outcomes to the State, in any of the following cases:
1. Where the outcomes are necessary for national security;
2. Where it is necessary to use the project outcomes for public interests;
3. Where an institution supposed to own the outcomes of research and development pursuant to paragraph (1) or (2) is located in a foreign country;
4. Where a profit-making institution, among executing institutions, fails to perform a project for the relevant outcomes without just grounds, though it intended to perform the project directly;
5. Where it is deemed inappropriate for an executing institution to own the outcomes.
(4) Where a major institution or participating institution that has engaged in joint research with the relevant institution is located inside Korea, the Minister may have an executing institution located inside Korea own the outcomes, as prescribed by the relevant agreement, notwithstanding paragraph (3) 3.
(5) The Minister may entrust the management of tangible or intangible outcomes that have belonged to the State pursuant to paragraph (3) to the relevant agency vested with exclusive responsibility or to the Korea Institute for Advancement of Technology under the Act. In such cases, the Minister may allow a person that participated in a project for technological innovation under his/her jurisdiction to preferentially utilize such outcomes.
(6) In either of the following cases, the relevant major institution or participating institution for task that collects royalties pursuant to Article 39 (1) may transfer the outcomes acquired pursuant to paragraphs (1) and (2) to another participating institution, implementing institution, or other appropriate institution (with top priority given to an institution located inside Korea), after consultations with participating institutions, implementing institutions, etc. for the task: Provided, That where the relevant executing institution relinquishes its rights to the outcomes, the outcomes may be transferred gratuitously to the person responsible for the relevant task who performed the task:
1. Where a profit-making institution that owns the relevant outcomes has paid the royalties prescribed by the relevant regulations to the relevant agency vested with exclusive responsibility, in cases of tangible or intangible outcomes referred to in paragraph (1) or (2);
2. Where the relevant outcomes do not constitute grounds for placing restrictions on transfer of outcomes under these Guidelines or the grounds separately determined by the relevant regulations or agreement.
(7) Where the head of an executing institution applies for, registers, or relinquishes intellectual property rights, as a result of project outcomes, he/she shall take any of the following measures, and may submit relevant data electronically:
1. Where an application for the intellectual property rights is filed inside or outside Korea, he/she shall submit to the head of the relevant agency vested with exclusive responsibility, a report on performance results accompanied by an application for intellectual property rights or application for registration and documents verifying the relevant facts: Provided, That where it is necessary to delay submission of the documents in order to improve the quality of patent specifications, he/she shall notify such fact and the scheduled timing for submission thereof to the head of the agency vested with exclusive responsibility;
2. Where an application for, or registration of, the intellectual property rights is filed within Korea, he/she shall ensure that the identification number by task, the name of the supporting central administrative agency (the Ministry of Trade, Industry and Energy), or task name is not omitted, and shall file the application or registration in the name of the relevant executing institution: Provided, That the foregoing shall not apply where the application or registration is filed in the name of the representative, in cases of a private business entity;
3. Where the intellectual property rights have been registered inside or outside Korea, he/she shall submit to the head of the relevant agency vested with exclusive responsibility, a report on performance results accompanied by relevant documents, including a copy of the registration gazette: Provided, That where it is necessary to delay the submission of the documents in order to improve the quality of patent specifications, he/she shall notify such fact and the scheduled timing for submission thereof to the head of the agency vested with exclusive responsibility;
4. Where the intellectual property rights are terminated due to a waiver of the rights registered inside or outside Korea, he/she shall notify such fact to the head of the relevant agency vested with exclusive responsibility before the termination of the rights.
(8) The head of an executing institution shall have the responsibility for the maintenance and management of tangible or intangible outcomes acquired in the course of performing the relevant project, and shall not dispose of the outcomes at his/her own will before the final evaluation, unless an appropriate ground, such as implementation of technology, is deemed to exist: Provided, That where an executing institution engaging in task designed to construct technology infrastructure intends to dispose of purchased facilities or equipment before the expiration of the period for the utilization of outcomes designated under the relevant agreement, it shall obtain approval therefor from the Minister.
 Article 36 (Education for Executing Institutions)
(1) To enhance efficiency of projects performed pursuant to each subparagraph of Article 3 after the conclusion of an agreement, to manage project funds properly, and to improve outcomes, the Minister may have each agency vested with exclusive responsibility implement education on each project, for general managers, persons engaging in research and development, persons responsible for accounting, etc. of executing institutions.
(2) The Minister may have an executing institution partially bear expenses incurred in participating in education under paragraph (1) from project funds of such task executing institution.
(3) Where the head of an agency vested with exclusive responsibility implements education under paragraph (1), he/she shall separately determine persons eligible for education, the scope, timing, frequency, etc. of education, taking into account the nature of the relevant project and the budget for each agency vested with exclusive responsibility.
(4) To implement education under paragraph (1) systematically, the Minster may subsidize the budget for the planning, operation, etc. of curricula.
 Article 37 (Disclosure, and Promotion of Utilization, of Project Outcomes)
(1) The head of an agency vested with exclusive responsibility shall publish the original version of a final report, a list of reports, a collection of abstracts, and technological and economic achievements described in a report on the utilization status of outcomes referred to in Article 40 (1) so that such information can be utilized by relevant executing institutions, the industrial sector, academia, etc.
(2) Paragraph (1) shall not apply to any of the following cases during the period for non-disclosure specified in any of the following subparagraphs, whichever is relevant: Provided, That where a special ground exists to extend the period for non-disclosure, the relevant period may be extended by up to three years, three months before the period expires, subject to approval from the head of the relevant agency vested with exclusive responsibility:
1. Where task is classified as security task as a result of the examination of security levels: A period of up to three years determined for the relevant security task;
2. Where the head of an executing institution requests the postponement of disclosure to acquire intellectual property rights, and the Minister approves such request: Less than one year and six months;
3. Where the head of an executing institution requests confidentiality for a justifiable ground, such as protecting business secrets, and the head of the relevant agency vested with exclusive responsibility approves such request: Less than one year and six months.
(3) To promote the utilization of project outcomes, the head of an agency vested with exclusive responsibility may take necessary measures, such as linkage between a technological development project, technology transfer project, project to construct infrastructure, and standardization project.
(4) Where any of the following research institutes intends to transfer any of its project outcomes by means of transfer, permission for a license, technology guidance, joint research, joint investment, mergers and acquisitions, etc., it shall register them on the National Technology Bank according to the procedures referred to in Article 7 (4) of the Technology Transfer and Commercialization Promotion Act and Article 9 of the Enforcement Decree of the same Act:
1. A public research institute;
2. An institution or organization, other than a public research institute, which develops and retains technology, with subsidization from the State, a local government, or a public institution referred to in Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institution");
3. An industrial technology research cooperative prescribed in the Act on the Support of Industrial Technology Research Cooperatives.
(5) The head of a research institute referred to in each subparagraph of paragraph (4) may establish the procedures and standards for transfer of intellectual property rights and obtain approval therefor from the head of the relevant agency vested with exclusive responsibility, and the intellectual property rights transferred according to the approved procedures and standards shall be deemed transferred pursuant to paragraph (4). In such cases, the head of the institution owning the intellectual property rights, including a major institution, etc, shall report to the head of the agency vested with exclusive responsibility on the transfer of the intellectual property rights, within three months after the transfer: Provided, That the foregoing shall not apply where royalties have been paid.
(6) The head of a major institution engaging in task designed to construct technology infrastructure shall take measures necessary for utilizing outcomes of the relevant project, such as the joint utilization of technology infrastructure created. In such cases, the Minister may grant additional Government contributions to task within its execution period, if the task is deemed necessary to utilize the outcomes after its execution period expires.
 Article 37-2 (Conclusion of Implementation Contracts)
(1) The head of an executing institution shall take necessary measures, such as concluding an implementation contract with an implementing institution, to utilize project outcomes. In such cases, a participating enterprise shall be the implementing institution if the relevant task involves the participating enterprise; and a contract for implementation need not be entered into, if an enterprise which owns project outcomes intends to implement the outcomes directly.
(2) Notwithstanding paragraph (1), an institution which owns project outcomes may enter into a contract for implementation with a person other than a participating enterprise, in any of the following cases:
1. Where task is performed to publish and utilize its outcomes, such as the development of infrastructure technologies;
2. Where a person other than a participating enterprise wants to implement the outcomes, and a participating enterprise that is a joint owner of the outcomes agrees on such implementation;
3. Any of the following cases and where a participating enterprise fails to provide any just ground therefor:
(a) Where the participating enterprise fails to enter into an implementation contract within one year after the relevant task is completed;
(b) Where the participating enterprise fails to pay agreed royalties, for at least one year;
(c) Where the participating enterprise fails to commence a business of utilizing the outcomes within one year after the conclusion of a technology implementation contract, or suspends the business for at least one year;
4. Where the head of the relevant agency vested with exclusive responsibility deems it necessary for a person other than a participating enterprise to implement the outcomes.
(3) Where it is intended to enter into an implementation contract with a person other than a participating enterprise pursuant to paragraph (2), a top priority shall be given to a domestic small-medium enterprise capable of implementing relevant technology when the counter-party to the contract is selected: Provided, That where no such small-medium enterprise exists, a person that engages, or is likely to engage, in production or business activities in Korea shall be deemed the next eligible counter-party to the contract.
(4) Where a small-medium enterprise intends to dispose of its ownership shares (such as transfer, the establishment of the pledge right, the establishment of a non-exclusive license, etc.) for a jointly owned patent obtained through the joint execution of task by a large enterprise and the small-medium enterprise under an agreement, the head of the relevant agency vested with exclusive responsibility may give the small-medium enterprise an opportunity to request the large enterprise, which is a joint owner, to preferentially purchase such shares at an official price widely accepted in the market. If the large enterprise has expressed its intention not to preferentially purchase the shares, the large enterprise shall be deemed to have consented to the disposal of the shares of the small-medium enterprise.
(5) In order to implement outcomes developed by individual executing institutions through the relevant task, an executing institution may implement outcomes owned by another executing institution to the extent necessary. In such cases, the period and the terms and conditions of implementation of the relevant outcomes shall be determined by mutual consent.
(6) Notwithstanding paragraphs (1) and (2), a non-profit institution shall comply with a request made by a small-medium enterprise, which is not a participating enterprise, to permit the implementation of intangible outcomes.
(7) Royalties for a small-medium implementing enterprise shall be determined by mutual consent within the royalty rates prescribed in the Guidelines for the Collection and Management of Royalties (hereinafter referred to as the "Guidelines for Royalties").
(8) A non-profit institution shall inform an organization by business type, such as a research association, of intangible outcomes it owns by solely performing a task without any participating enterprise; and a person intending to implement the outcomes may request an organization by business type, such as a research association, to broker the implementation of the outcomes. In such cases, the non-profit institution shall faithfully comply with the request for implementation made by the organization by business type, such as a research association.
(9) Where any dispute occurs between parties in relation to paragraphs (5) through (8), the head of the relevant agency vested with exclusive responsibility may comply with a request for consultation for verification of facts, interpretation of relevant provisions, etc. to settle the dispute, if such request is made in writing by either of the two parties.
(10) With regard to the outcomes of task exempt from royalties, performed by an executing institution, a non-exclusive license or the right of use shall be granted, except in the following cases:
1. Where the relevant agreement stipulates an exclusive license or the right of use;
2. Where no person intends to be granted a non-exclusive license or the right of use;
3. Where extenuating circumstances are deemed to arise due to the characteristics of technology.
 Article 38 (Management of Information on Projects)
(1) The Minister may request an agency vested with exclusive responsibility to establish and operate an information system for projects so as to efficiently manage and use the information on projects, tasks, evaluation members, evaluation outcomes, project funds, outcomes, participating human resources, equipment, etc.
(2) The Minister may establish and operate an information system for industrial technology R&D, the RCMS, e-Tube, and the National Technology Bank to efficiently perform and manage projects, and shall link the information system for industrial technology R&D to the National Science and Technology Information System referred to in Article 25 of the National Management Regulations.
(3) The head of an agency vested with exclusive responsibility shall link the information on research and development prescribed in paragraph (1) with, or input the information into, the information system for industrial technology R&D or the RCMS.
 Article 39 (Collection and Management of Royalties)
(1) The Minister may require an agency vested with exclusive responsibility to collect royalties from institutions subject to collection of royalties prescribed in Article 5 of the Guidelines for Royalties or from third persons intending to implement project outcomes.
(2) The Minister may designate and publically announce, as tasks exempt from royalties, both tasks which he/she deems it necessary to utilize by making them public to facilitate the use of basic research, source research and project outcomes and tasks not aimed at implementation.
(3) Where a non-profit institution enters into a technology implementation contract with the head of an implementing institution, the rate, method, etc. of collection of royalties may be determined through agreement between the parties.
(4) No executing institution that owns the outcomes of task exempt from royalties shall collect royalties from an implementing institution for such outcomes: Provided, That the foregoing shall not apply to actual expenses incurred in conducting technology transfer, etc.
(5) The Guidelines for Royalties shall apply to other details relating to the collection and management of royalties.
 Article 40 (Reporting on Utilization and Evaluation after Completion of Project)
(1) The head of a major institution shall submit a report on the utilization status of outcomes prepared in a separate form to the head of the relevant agency vested with exclusive responsibility, by the end of February annually for five years, following the year in which the relevant task is completed: Provided, That the Minister may adjust the period and deadline for submission in light of the characteristics of each project and schedules of the Ministry of Science and ICT for investigation, analysis and evaluation of the outcomes of national research and development projects, and may not require the submission of the report on the utilization status of outcomes, if the relevant task is graded as "suspended" under Article 32-3 or 32-4 or "poorly performed" under Article 32-6, or if submission thereof is deemed unnecessary due to suspension or discontinuance of business of a major institution, dissolution of a corporation, commencement of procedures for rehabilitation or bankruptcy, etc.
(2) An implementing institution shall cooperate with the head of the relevant major institution in preparing the report on the utilization status of outcomes referred to in paragraph (1), by reporting the utilization status of project outcomes to him/her each year for five years.
(3) The head of an agency vested with exclusive responsibility shall conduct comprehensive analysis of the report on the utilization status of outcomes submitted pursuant to paragraph (1), and report the results of analysis to the Minister each year.
(4) The Minister may request an agency vested with exclusive responsibility to conduct an evaluation of the utilization of outcomes in order to conduct investigation or analysis of the utilization status, ripple effects, etc. of a completed task, and may reflect the results thereof in promoting projects.
(5) An institution specializing in equipment may report on or evaluate the utilization of equipment after the completion of a project, by applying mutatis mutandis paragraphs (1) through (4) to equipment.
 Article 40-2 (Comprehensive Analysis of Outcomes)
(1) The Minister may request the Korea Institute for Advancement of Technology to perform the following functions to exercise overall control of the affairs of each agency vested with exclusive responsibility for the utilization and management of outcomes:
1. Preparing a separate form prescribed in Article 40 (1), compiling and arranging the investigation and analysis of the outcomes, including reports on the utilization status of outcomes submitted by agencies vested with exclusive responsibility;
2. Conducting a comprehensive analysis of the outcomes, based on data collected on the outcomes, reports on the utilization status of outcomes, etc.;
3. Organizing and operating a consultative body on investigation and analysis of the outcomes;
4. Other matters deemed necessary by the Minister in relation to investigation, analysis, and evaluation of the outcomes.
(2) In order to comprehensively analyse the outcomes, the Korea Institute for Advancement of Technology may investigate the outcomes of a project or task pending or completed, through cooperation from each agency vested with exclusive responsibility, and may directly require each executing institution to submit relevant data or conduct verification, etc.
(3) The Korea Institute for Advancement of Technology shall comprehensively analyse the outcomes each year based on data on the outcomes, such as reports on the utilization status of outcomes submitted by institutions vested with exclusive responsibility and report the results thereof to the Minister; and the Minister in turn may reflect both the reports on the utilization status of outcomes submitted by institutions vested with exclusive responsibility and the results of the comprehensive analysis of the outcomes by the Korea Institute for Advancement of Technology, when promoting projects.
(4) The Minister may subsidize the budget for investigation, analysis, etc. of the outcomes, to systematically and comprehensively analyse the outcomes under paragraph (1).
 Article 41 (Security of Projects)
(1) The Minister shall actively support activities to protect project outcomes worth protecting from disclosure overseas, by establishing the intellectual property rights thereto, etc.
(2) The Minister shall formulate and take security measures to ensure that advanced industrial technologies are not disclosed in the process of performing a project.
(3) The head of an executing institution shall formulate and take security measures containing the following to ensure that important information, outcomes, etc. are not disclosed without permission in the process of performing a project:
1. Security measures for participating researchers;
2. Security measures for the information, research facilities, etc. relating to task execution;
3. Security measures when presentations are made on the details and outcomes of task performed;
4. Security measures for the information and communications network and the information system used for task execution.
(4) The Minister may check the security conditions of projects and take measures to improve such conditions, and may inspect the security conditions of executing institutions engaging in important projects relating to national security, public interests, or cutting-edge technologies, in cooperation with relevant institutions, such as National Intelligence Service.
(5) The head of an agency vested with exclusive responsibility or the head of an institution entrusted with the settlement may destroy data on tasks obligations fulfilled completely, such as royalties paid, residual money from settlement returned, an amount recovered, and the submission of a report on the utilization status of outcomes. In such cases, relevant data may be destroyed after the lapse of three years, in cases of suspended task, task, the agreement on which has been terminated, task unsuccessfully performed, task graded as poorly performed as a finding of the final evaluation. However, a final report shall be kept in the form of an electronic file.
 Article 42 (Securing Research Ethics)
Any institution, organization, and researcher participating in a project shall perform it in compliance with research ethics, and the Minister may separately determine details necessary for securing research ethics and preventing research malpractice.
 Article 43 (Obligations of Confidentiality and Integrity)
(1) No member who has participated in an evaluation committee meeting, etc., no employee belonging to the Ministry of Trade, Industry and Energy, an agency vested with exclusive responsibility or to an institution specializing in equipment, no executing institution, participating researcher, etc. shall publicize or divulge to a third party any of the following matters he/she or it has become aware of in the course performing his/her or its duties; and sanctions under Article 44 or those under the relevant institution's internal regulations may be imposed, if such obligations are violated:
1. Matters on the details of project plans, reports, business secrets, etc. of an application institution or executing institution;
2. Scores and opinions of each evaluation committee member;
3. Minutes of evaluation committee meetings.
(2) Any member who has participated in an evaluation committee meeting, etc., employee belonging to the Ministry of Trade, Industry, and Energy, an agency vested with exclusive responsibility or to an institution specializing in equipment, person who has performed a task, etc. shall have integrity obligations in relation to the selection and management of tasks; and sanctions under Article 44 or those under the relevant institution's internal regulations may be imposed, if such obligations are violated.
 Article 44 (Restrictions on Participation, Recovery, etc. for Problematic Tasks)
(1) In any of the following cases, the Minister or the head of an agency vested with exclusive responsibility, to whom the authority of the Minister has been delegated, may restrict an institution, organization or enterprise engaging in a project, an executive and/or employee, etc. belonging thereto from newly participating in a national research and development project or the relevant project for innovation of industrial technology, depending on reasons attributable thereto, in accordance with the criteria specified in "attached Table 2," for a period not exceeding five years (ten years for a person previously restricted from participating in another national research and development project, on any of the grounds for imposing restrictions on participation under [3] ② of attached Table 2). In such cases, where the relevant task is deemed to constitute at least any of the following two grounds, up to five years (ten years for a person previously restricted from participating in another national research and development project, on any of the grounds for imposing restrictions on participation under [3] ② of attached Table 2) may be added to the period of restrictions on participation; and where a person, restricted from participation due to one of the two or more research and development tasks it or he/she was performing, is additionally restricted from participation due to another research and development task, the subsequent period of restrictions on participation shall be counted from the day following the expiration date of the initial period of restrictions on participation:
1. Where a task is graded through evaluations as "suspended" or "poorly performed" due to extremely poor performance of the task or extremely poor outcomes of research and development;
2. Where the contents of research are divulged or disclosed without due procedures;
3. Where malpractice is committed, such as forgery, falsification, and plagiarism of data on, or outcomes of, research and development;
4. Where an application for, or registration of, intellectual property rights, which are project outcomes, is filed in the name of an executive officer and/or employee, general manager, researcher, institution or individual that did not participate in the relevant task, other than an executing institution, without just cause;
4-2. Where data on intellectual property rights is not submitted without any just ground, or where data on intellectual property rights, which are project outcomes, is submitted by wrongful means, including multiple submissions, etc.;
5. Where an agreement is revoked because the relevant institution has been selected as a task executing institution by wrongful means, such as outside pressure, deceit, or solicitation;
6. Where execution of a research and development task is given up without any just grounds;
7. Where any residual money from settlement or amount of recovery is unpaid;
8. Where a report on the outcomes of task execution (a report on the progress and performance, annual report, phased report, or final report), a report on causes, performance report, report on the actual use of project funds, or report on the utilization of outcomes is not submitted, or a false report is prepared;
9. Where project funds are embezzled, swindled, or misappropriated for other than originally intended purposes;
10. Where revenues or profits accruing from project implementation are used for other than purposes stipulated in the relevant agreement, in relation to a project designed to build technology infrastructure or conduct demonstration research on energy technology;
11. Where a facility, equipment, etc. is disposed of at will, in relation to a project designed to build technology infrastructure or conduct demonstration research on energy technology: Provided, That the foregoing shall not apply where the period for the utilization of outcomes has expired;
12. Where a share to be borne by the relevant person is not paid, in breach of the relevant agreement;
13. Where an investment contract has been amended, nullified, or assigned, in relation to a project for which the inducement of private investment is mandatory;
14. Where royalties are not paid without any just ground;
15. Where a task is performed fraudulently or otherwise wrongfully;
16. Where any violation of the relevant agreement is committed.
(2) In cases specified in any subparagraph of paragraph (1), the Minister may recover all or some of the contributions already provided. In such cases, where the relevant task is deemed to constitute at least two grounds specified in the subparagraphs of paragraph (1), he/she may recover an amount calculated by adding up individual amounts to be recovered according to the respective relevant reasons, within the total amount of contributions provided.
(3) Matters regarding sanctions referred to in paragraph (2) and recovery of contributions referred to in paragraph (2) may be deliberated on by the evaluation committee prescribed in Article 7 or by a separate committee. In such cases, the relevant provisions as at the time a violation is committed shall apply: Provided, That where the relevant provisions as at the time a disposition is made are advantageous to the relevant person, the provisions as at the time the disposition is made may apply.
(4) Where the Minister has determined restrictions on participation or recovery, he/she shall promptly notify such fact to the head of the relevant institution and the head of other related central administrative agency, and shall register such fact on the National Science and Technology Information System. In such cases, the Minister may request the head of an agency vested with exclusive responsibility to entrust the affairs of notifying restrictions on participation or recovery or perform the affairs on his/her behalf.
(5) Where the Minister receives a notification of the restrictions on participation from the related central administrative agency or from the relevant institution, he/she may restrict the relevant person from participating in projects prescribed in these Guidelines.
(6) Where a person restricted from participation due to the ground specified in paragraph (1) 7 or 14 has taken measures, such as paying the relevant amount, and therefore the ground for the restrictions on participation is deemed resolved, the Minister may lift the restrictions on participation.
(7) Where it is necessary to recover contributions pursuant to paragraph (2), the Minister may require the head of the relevant agency vested with exclusive responsibility to recover an amount equivalent to the contributions to the relevant task from the relevant major institution, participating institution, etc. In such cases, an institution in receipt of notice of the recovery shall transfer the relevant amount to the account of the agency vested with exclusive responsibility, within 30 days after receipt of the notice.
(8) Where the head of the agency vested with exclusive responsibility recovers contributions pursuant to paragraph (2), he/she shall recover the contributions in cash, report the recovered contributions to the Minister quarterly, and transfer the contributions to the National Treasury.
(9) In order for a person restricted from participation pursuant to paragraph (1) to participate in a project, the period for restrictions on participation shall expire by the day preceding the deadline for the submission of project plans under Article 20 (1).
(10) Where an act referred to in paragraph (1) 1 through 15 is deemed to constitute a crime, the Minister or the head of the relevant agency vested with exclusive responsibility may take measures, such as requesting the investigation agency to investigate or filing a criminal complaint; and where an outcome developed by a small-medium enterprise is deemed to constitute an unfair exclusive trade practice corresponding to any act specified under Article 22 (1) of the Monopoly Regulation and Fair Trade Act, he/she may file a report with the Fair Trade Commission thereon.
(11) Deleted.
(12) Where the grounds specified in any subparagraph of paragraph (1) are deemed to exist, the Minister or the head of the relevant agency vested with exclusive responsibility may recommend the head of the relevant institution to voluntarily take disciplinary action against the responsible person of the department in charge of overall management and supervision.
(13) Where project funds have been misused through embezzlement, misappropriation, etc., the Minister may impose and collect additional monetary sanctions in an amount not exceeding five times the amount misused, from the relevant institution, organization, enterprise, general manager, researcher, or employee. In such cases, the Minister shall collect the additional monetary sanctions in the same manner as delinquent national taxes are collected, if the person subjected to the imposition of additional monetary sanctions fails to make the payment within the payment deadline.
(14) Where a general manager (including a manager for general tasks and a manager for specific tasks) or a participating researcher (including a responsible person of a participating institution) has been restricted from participation due to other implementation task, the head of the relevant executing institution shall examine whether to exclude the relevant person from tasks the person is performing.
(15) Where a project is determined as a “failed project" or "suspended project” upon an evaluation conducted by the Minister of Trade, Industry and Energy on the grounds of extremely poor results but its method and process of conducting research are recognized as systematic and faithful, the period for restrictions on participation may be reduced or restrictions on participation need not be imposed against such project; or the amount of project funds to be recovered may be fully or partially exempt, if the project falls under any of the following cases:
1. Where the initial goal was highly challenging and thus, unachievable;
1-2. Where the relevant task was expressly specified as a competition-type task in the public announcement;
2. Where the goal has not been achieved due to changes in the environment or any other external factor.
CHAPTER IX SUPPLEMENTARY PROVISIONS
 Article 45 (Budget for Evaluation, Management and Operation of Projects)
(1) The Minister may fully or partially subsidize expenses incurred in planning, evaluating, managing projects (hereinafter referred to as "expenses for planning, evaluating, and managing"), such as planning, evaluating, managing and promoting the utilization of outcomes, out of the project funds for each project referred to in Article 3, within budgetary limits, pursuant to Article 11 (4) of the Act.
(2) The head of an agency vested with exclusive responsibility shall submit a plan for expenses incurred in planning, evaluating, and managing to the Minister each fiscal year, and the Minister shall verify the plan and then notify the finalized plan to the head of the agency vested with exclusive responsibility.
(3) Where the head of an agency vested with exclusive responsibility needs to revise the plan for the expenses incurred in planning, evaluating, and managing verified pursuant to paragraph (2) due to reasons such as project or operation plans, after the relevant fiscal year begins, he/she shall establish a revised plan for the expenses incurred in planning, evaluating, and managing as soon as possible and obtain approval therefor from the Minister. In such cases, the head of the agency vested with exclusive responsibility may expend only the expenses the budget for which should be executed, such as operation expenses for the institution.
(4) The head of an agency vested with exclusive responsibility shall manage the expenses incurred in planning, evaluating, and managing in a separate account, and spend the expenses for the specific purpose of each expense item verified by the Minister.
(5) The head of an agency vested with exclusive responsibility shall submit records of spending expenses incurred in planning, evaluating, and managing to an institution entrusted with the settlement, within three months after the end of the relevant year, and submit the settlement results of the institution entrusted with the settlement to the Minister each year, while the Minister shall verify the settlement results on the expenses for planning, evaluating, and managing and then notify the head of the agency vested with exclusive responsibility of the verification.
(6) The head of an agency vested with exclusive responsibility shall transfer any residual balance of the expenses for planning, evaluating, and managing to the National Treasury, according to the notified settlement results on the expenses for planning, evaluating, and managing, but may expend additional expenses relating to the relevant project, such as follow-up measures for the project, after obtaining approval therefor from the Minister.
(7) The Minister and the head of an institution specializing in equipment shall manage expenses incurred in performing the affairs of the institution specializing in equipment, by applying mutatis mutandis paragraphs (1) through (6).
 Article 46 (Rewards, etc.)
(1) The Minister, the head of an agency vested with exclusive responsibility, or the head of an institution specializing in equipment may grant rewards to an outstanding major institution, participating institution, participating researcher, evaluation committee member, employee of an agency vested with exclusive responsibility, etc., within budgetary limits for management and operation under Article 45.
(2) Where tangible or intangible outcomes of task performed lead to considerable sales or have significant effects on technological development, the head of the relevant executing institution may grant incentives to the participating researcher.
(3) The Minister may operate the system for granting the following appropriate rewards to persons who have performed task that produces innovative outcomes:
1. Preferentially subsidizing follow-up tasks performed by a person of distinguished service for technological innovation (person with national technical qualifications) under Article 37 of the Act, person who performs task graded as "innovatively performed" following the evaluation conducted under Article 33, or by a person who performs task deemed to produce innovative outcomes in the evaluation of the utilization of outcomes under Article 40;
2. Granting, as incentives, part of the budget saved to task graded as "completed early (innovatively performed)" following the evaluation conducted under Article 33.
(4) Where it is necessary to grant compensation or rewards to an informant who reported misappropriation, the head of an agency vested with exclusive responsibility may expend the relevant expenses by using the expenses incurred in planning, evaluating, and managing.
 Article 47 (Formulation and Operation of Annexed Guidelines)
The Minister shall formulate annexed Guidelines providing for the following matters so as to commonly apply them to projects prescribed in these Guidelines:
1. Details of the computation, management and settlement of project funds;
2. Details of the collection, use, and management of royalties;
3. Details necessary for the security management of projects;
4. Details necessary to secure research ethics and prevent research malpractice;
5. Details necessary for the integrated management of equipment;
6. Other matters the Minister deems necessary to apply to all the projects.
 Article 48 (Formulation and Operation of Evaluation and Management Guidelines)
The Minister shall operate evaluation and management guidelines for each of the following project types in order to determine details necessary for planning, evaluating, and managing projects within the scope prescribed by these Guidelines:
1. A project designed to develop technologies, such as core or source technologies, promising technologies, and commercialization technologies;
2. A project designed to develop technological infrastructure, such as the construction and utilization of equipment and facilities, clustering of elements of technological innovation, and expansion of the technological base;
3. A project designed to cultivate outstanding technical human resources, establish a system for cultivating technical human resources, or to facilitate the supply of technical human resources;
4. A project designed to promote international cooperation on technology with foreign governments, enterprises, universities, research institutes, etc.;
5. A project designed to promote technological innovation for local areas through technological development for specialized sectors of each local area, construction of infrastructure, etc.;
6. A project designed to facilitate commercialization of developed technologies;
7. A project designed to conduct demonstration research on energy technology;
8. Other projects for which the Minister deems it appropriate to formulate separate evaluation and management guidelines.
 Article 49 (Special Cases of Application)
(1) The Minister need not apply all or some of the provisions of these Guidelines, in extenuating circumstances, such as a national project performed jointly by at least two ministries, a project participated in by a local government, or a project for which subsidies, etc. are granted.
(2) Where a project or task is participated by a foreign institution, the Minister may prescribe relevant provisions otherwise as follows:
1. A share of Government contributions and a share of cash in the private financing may be determined otherwise when publically announced under Article 19 (2);
2. Project funds used by a foreign institution may be appropriated by applying such institution's internal accounting standards;
3. Where the settlement of project funds used by a foreign institution is conducted, the settlement may be replaced by verification, etc. of the results of such institution's internal settlement;
4. Matters on the collection and use of royalties may be determined otherwise when publically announced under Article 19 (2).
(3) Where task is grant-type, the Minister need not apply some of the provisions on planning, evaluating, and managing or determine separate provisions for the relevant project.
 Article 50 (Entrusted Affairs and Persons Entrusted with Affairs)
Affairs entrusted by the Minister of Trade, Industry, and Energy pursuant to Article 57 (7) of the Decree and institutions entrusted with such affairs shall be as follows:
1. Affairs involving the forecasting of the industrial technological environment referred to in Article 8 of the Act shall be entrusted to the Korea Institute for Advancement of Technology or to the Korea Evaluation Institute of Industrial Technology, pursuant to Article 44 (1) of the Act;
2. Affairs involving compilation of statistics on innovation of industrial technology referred to in Article 10 of the Act shall be entrusted to the Korea Institute for Advancement of Technology or to the Korea Evaluation Institute of Industrial Technology, pursuant to Article 44 (1) of the Act;
3. Affairs involving restrictions on participation in national research and development projects referred to in Article 11-2 of the Act, and affairs involving recovery of all or some of the project funds contributed or subsidized shall be entrusted to any of the following institutions or organizations, pursuant to Article 44 (1) of the Act:
(a) The Korea Evaluation Institute of Industrial Technology;
(b) The Korea Institute of Energy Technology Evaluation and Planning under Article 13 of the Energy Act;
(c) An institution or organization specified in the subparagraphs of Article 14 of the Decree.
 Article 51 (Deadline for Re-Examination)
The deadline for taking measures, such as repealing or amending this Public Notice, shall be December 31, 2020, reviewing the changes in the statutes or the actual conditions after the issuance of this Public Notice, in accordance with the Rules on the Issuance and Management of Directives and Established Rules (Presidential Directive No. 334).
ADDENDA
Article 1 (Enforcement Date)
(1) These Guidelines shall enter into force on January 1, 2009.
Article 2 (Transitional Measures)
(1) These Guidelines shall begin to apply from task on which an agreement is executed to perform a project for technological innovation for the knowledge economy in 2009 after the enforcement date; and matters processed under the previous Guidelines before these Guidelines enter into force, shall be deemed processed under these Guidelines.
(2) Matters on the standards for the execution and appropriation of project funds, follow-up management including collection of royalties, sanctions, and recovery in relation to a projet which has commenced before these Guidelines enter into force, shall be processed under the relevant agreement or under the relevant provisions as at the time the agreement is executed.
(3) Notwithstanding paragraph (2), the Guidelines for the Collection and Management of Royalties shall apply to matters relating to royalties.
(4) Where a major institution, etc. appropriates indirect expenses out of the project funds according to attached Table 1, the institution shall do so by adding up both an amount calculated according to the current rates of indirect expenses by institution and an amount calculated in compliance with the standards for appropriation of the four tax items (research and development reserves; expenses for application for, or registration of, intellectual property rights; expenses for scientific and cultural activities; and expenses for safety management of laboratories) specified in attached Table 2 of the National Management Regulations, until the rates of indirect expenses are publicly notified under the National Management Regulations; the standards specified in attached Table 1 shall apply to the purposes of the expenses.
(5) The following regulations and the guidelines previously applied in accordance with any of the following regulations shall not apply, starting from task on which an agreement is executed in 2009, following the enforcement of these Guidelines: Provided, That in cases of task on which an agreement was executed in accordance with any of the following regulations before these Guidelines enter into force, the relevant regulations may apply until the agreement is terminated:
1. Operation Guidelines for Joint International technological development Projects;
2. Operation Guidelines for Projects to Establish Infrastructure for Technology Transfer and Commercialization;
3. Regulations on the Designation and Operation of Graduate Schools on the United Nations Framework Convention on Climate Change;
4. Enforcement Regulations on Technology Projects for Joint Civilian and Military Use;
5. Operation Guidelines for Biostar Projector Projects;
6. Operation Guidelines for International Cooperation Projects for Components and Materials;
7. Operation Guidelines for development Projects for Development of Components and Materials technology;
8. Operation Guidelines for Projects to Establish Foundations for Enhancing Reliability of Components and Materials;
9. Operation Guidelines for Technical Support Projects for Specialized Enterprises for Components and Materials;
10. Operation Guidelines for Projects to Develop Technology for Linkage with Commercialization;
11. Operation Guidelines for Industrial technological development Projects;
12. Operation Guidelines for Projects for the Development of Infrastructure for Industrial Technology;
13. Operation Guidelines for Projects for the Establishment of Technoparks;
14. Operation Guidelines for Projects to Cultivate Industrial Technology Human Resources;
15. Operation Guidelines for Projects for Industrial Complex Innovation Clusters;
16. Operation Guidelines for Industrial Design Development Projects;
17. Operation Guidelines for Technology Business Innovators;
18. Operational Regulations on Projects for Development of Energy Technology;
19. Operation Guidelines for Projects to Develop and Distribute Energy and Resource Circulation Technologies;
20. Operation Guidelines for Projects to Foster Special Research and Development Zones;
21. Operation Guidelines for Projects to Operate Inno-Cafes and Network Hubs;
22. Operational Regulations on Electric Power Infrastructure Development Projects;
23. Operation Guidelines for Projects for Electronic Commerce Resource Centers;
24. Management Regulations on Research and Development of Information and Communications;
25. Operation Guidelines for Regional Technological Innovation Projects;
26. Operation Guidelines for Projects for Regional Technology Innovation Centers;
27. Operation Guidelines for Projects to Promote Regional Innovation Systems;
28. Operation Guidelines for Projects to Promote Regional Strategic Industries;
29. Operation Guidelines for Projects to Foster Regional Research Institutes in Local Governments;
30. Operation Guidelines for Projects to Disseminate Cleaner Production Technologies;
31. Operation Guidelines for the Korea Bio-Hub;
32. Operation Guidelines for Projects to Develop and Disseminate Packaging Technologies;
33. Operation Guidelines for Projects to Improve Standardization Techniques;
34. Operation Guidelines for Projects to Develop Aerospace Components Technologies;
35. Operation Guidelines for Projects to Facilitate Inducement of Outstanding Foreign Technical Manpower;
36. Operation Guidelines for Projects for the Development of Core Technologies.
(6) Notwithstanding paragraph (5), paragraph (5) 8 shall apply to projects for establishing the foundations for reliability enhancement under Articles 24 through 34 of the Act on Special Measures for the Promotion of Specialized Enterprises, etc. for Components and Materials, until June 30, 2009.
Attached Table 1: Purposes for Each Expense Item of Project Funds and Standards for Appropriation
Attached Table 2: Industrial Technology Classification
Attached Table 3: Criteria for Sanctions and Recovery for Problematic Tasks
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2010-71, Apr. 1, 2010>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on April 1, 2010.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2010-111, May 26, 2010>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on May 26, 2010.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2011-141, July 5, 2011>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on September 5, 2011: Provided, That the provisions on the settlement of accounts for each relevant year under Article 31 (3) and the provisions on the settlement of accounts for each executing institution under Article 35 (7) shall apply one month after the date these Guidelines enter into force.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2012-55, March 5, 2012>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on May 5, 2012.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2012-170, July 12, 2012>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on July 12, 2012.
Article 2 (Transitional Measures)
(1) Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
(2) The Operational Guidelines for Support for the Bicycle and Marine Leisure Equipment Industry shall be repealed: Provided, That the Operational Guidelines may apply to any task for which an agreement was executed in accordance with the Operational Guidelines for Support for the Bicycle and Marine Leisure Equipment Industry before these Guidelines enter into force, until the relevant agreement is terminated.
Article 3 (Applicability to Replacement of General Manager)
The amended provisions of Article 15 (3) shall apply, starting from the first task for which an agreement is entered into after these Guidelines enter into force.
Article 3 (Applicability to Public Announcements and Selection of Tasks)
The amended provisions of Article 21 (1) shall apply, starting from the first task publicly announced after these Guidelines enter into force, while the amended provisions of Article 22 (3) 6 and 9 shall apply, starting from the first task for which an agreement is executed after these Guidelines enter into force.
Article 4 (Applicability to Amendments of Terms and Conditions of Agreements and Revocation of Agreements)
The amended provisions of Articles 28 (2) 1 (e) and (l) and 29 (1) 16 shall apply, starting from the first task for which an agreement is executed after these Guidelines enter into force.
Article 5 (Applicability to Disclosure of Project Outcomes)
The amended provisions of Article 38 (2) shall apply, starting from the first outcomes determined confidential to the public after these Guidelines enter into force: Provided, That outcomes determined confidential to the public under the previous provisions before these Guidelines enter into force shall be deemed confidential as at the date these Guidelines enter into force.
Article 6 (Applicability to Restrictions on Participation and Recovery)
The amended provisions of attached Table 3 shall apply, starting from the first task underway as at the time these Guidelines enter into force. ; and task completed before these Guidelines enter into force shall be governed by the provisions as at the time of the completion of the task.
ADDENDA <Public Notice of the Ministry of Knowledge Economy No. 2012-252, October 23, 2012>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on January 1, 2013.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2013-35, May 24, 2013>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on May 24, 2013.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2013-77, July 15, 2013>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on September 1, 2013.
Article 2 (Transitional Measures)
(1) Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Share of Government Contributions to Large Enterprises and Share of Cash in Private Financing)
Articles 25 (4) and 26 (5) shall apply, starting from the first task newly publicly announced in 2013.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2014-76, April 22, 2014>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on May 1, 2014.
Article 2 (Transitional Measures)
(1) Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Selection of Tasks)
The amended provisions of Article 21 (3) shall apply, starting from the first project newly publicly announced after these Guidelines enter into force.
Article 4 (Applicability to Promotion of Utilization of Outcomes of Research and Development)
The amended provisions of the latter part of Article 37 (3) shall apply, starting from the first task for which a technology implementation contract is executed after these Guidelines enter into force.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2014-247, December 16, 2014>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on January 1, 2015.
Article 2 (Transitional Measures)
(1) Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Standards for Subsidization of Contributions and Private Financing)
(1) Articles 24 (2) and 25 (4) shall apply, starting from the first task newly publicly announced after these Guidelines enter into force.
Article 4 (Applicability to Conclusion of Implementation Contracts)
(1) Article 37-2 (5) through (7) shall apply, starting from the first task newly publicly announced after these Guidelines enter into force.
Article 4 (Applicability to Middle-Standing Enterprises and Large Enterprises)
A for-profit enterprise which is performing a project or task as at the time these Guidelines enter into force shall be deemed a middle-standing enterprise or large enterprise defined in Article 2 of the previous Guidelines, only in relation to the relevant project.
Article 5 (Effective Period)
Articles 26 (8) and 44 (1) 2 and 14 shall remain effective until December 31, 2015.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2015-259, December 21, 2015>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on January 1, 2016.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Minimum Participation Rate of Participating Researchers)
The provisions relating to the participation rate of participating researchers under Article 20 (2) shall apply, starting from the first task newly publicly announced after these Guidelines enter into force.
Article 4 (Applicability to Maximum Number of Tasks Permitted for Executing Institutions)
The maximum number of tasks an executing institution is permitted to perform under Article 20 (3) shall apply, starting from the first task newly publicly announced after these Guidelines enter into force.
Article 5 (Standards for Subsidization of Contributions and Private Financing)
Articles 24 (2) and 25 (4) shall apply, starting from the first task newly publicly announced after these Guidelines enter into force.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2016-64, March 30, 2016>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2016-165, September 1, 2016>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are publicly notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2016-228, December 13, 2016>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are publicly notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Number of Simultaneously-Performed Tasks)
The number of simultaneously-performed tasks referred to in Article 20 (3) shall begin to apply from the first task for which a new public announcement is made after these Guidelines enter into force; and subparagraph 5 of the same paragraph shall begin to apply from the first evaluation results finalized after these Guidelines enter into force.
Article 4 (Applicability to Form Following Conclusion of Agreements)
A certificate of succession of an employee's invention related to vesting of the outcomes under Article 26 (1) 8 shall begin to apply from the first task for which an agreement is entered into after 2017.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2017-22, February 16, 2017>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are publicly notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2017-132, September 15, 2017>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are publicly notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Restrictions on Participation, etc.)
The amended provisions of Article 44 and attached Table 2 regarding the conditions and scope of restrictions on participation and recovery shall begin to apply to the first task for which a new or ongoing agreement is entered into after these Guidelines enter into force.
ADDENDA <Public Notice of the Ministry of Trade, Industry and Energy No. 2018-90, April 30, 2018>
Article 1 (Enforcement Date)
These Guidelines shall enter into force on the date they are publicly notified.
Article 2 (Transitional Measures)
Matters processed under the previous Guidelines before these Guidelines enter into force shall be deemed processed under these Guidelines.
Article 3 (Applicability to Employment of Young Personnel)
(1) The amended provisions of Articles 25 (6) through (9) and 26 (11) and (12) regarding the employment of young personnel shall apply temporarily until 2022.
(2) Article 26 (11) and (12) shall begin to apply to the first task for which a new public announcement is made after these Guidelines enter into force.