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ACT ON SPECIAL CASES CONCERNING THE REGULATION OF REGULATION-FREE SPECIAL ZONES AND SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT

Wholly Amended by Act No. 15852, Oct. 16, 2018

Amended by Act No. 16175, Dec. 31, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to contribute to the balanced development of the State and the innovative and strategic development of each region by establishing an autonomous and sustainable foundation for growth through selective application of special cases for regulation, etc. in accordance with the characteristics of each region by designating and operating a regional special zone.
 Article 2 (Definitions)
The terms used in this Act shall be defined as follows:
1. The term "regional special zone" means a special economic zone for specialized regional development designated and publicly notified pursuant to Article 11 or a regulation-free special zone designated and publicly notified pursuant to Article 75;
2. The term "special economic zone for specialized regional development" means an area demarcated for specialized development of a region and designated and publicly notified pursuant to Article 11;
3. The term "special cases for regulation" means the matters specified in Section 2 of Chapter II and Section 3 of Chapter III including relaxation of regulation (referring to the administrative regulation defined in Article 2 (1) 1 of the Framework Act on Administrative Regulations; hereinafter the same shall apply), exclusion from application of all or part of regulation on, or devolvement of authority to regulate;
4. The term "special cases for regulation, etc." means the special cases for regulation and matters specified in Section 2 of Chapter III;
5. The term "plan for a special economic zone for specialized regional development" means a master plan for the designation and operation of a special economic zone for specialized regional development, specialization projects, etc. therefor;
6. The term "land use plan for a specialized zone" means a plan established to efficiently use land for a specialization project;
7. The term "specialization project" means a project promoted by taking advantage of features and conditions of each region in accordance with the plan for special economic zone for specialized regional development;
8. The term "specialization project operators" means a local government or a person designated pursuant to Article 14 (1), who implements a specialization project in accordance with the plan for a special economic zone for specialized regional development in a special economic zone for specialized regional development;
9. The term "new technology" means any technology developed for the first time at home and abroad or any excellent technology developed by innovatively upgrading or improving existing technology, which contribute to facilitating innovative growth of the region;
10. The term "innovative growth resources" means human, material, and social institutional resources, such as infrastructure supporting industries and enterprises, which can support regional innovative growth, and social and economic conditions and natural resources of a region which has comparative advantage over those of other regions;
11. The term "plan for a regulation-free special zone" means a master plan for a regulation-free special zone, which includes the name, location and area of the regulation-free special zone; regional innovative growth project; regional strategic industry intended to be promoted; spatial scope eligible for the application of special cases for regulation, etc.;
12. The term "regional innovative growth project or regional strategic industry" means any of the following projects or industries (hereinafter referred to as "innovative project or strategic industry"):
(a) Regional innovative growth project: A project that facilitates innovative growth of a region by taking advantage of innovative growth resources and new technology in the region, which is promoted in accordance with the plan for a regulation-free special zone established by a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (excluding the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) and approved by the Minister of SMEs and Startups pursuant to Article 75 (3);
(b) Regional strategic industry: An industry included in the plan for a regulation-free special zone established by a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (excluding the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) and approved by the Minister of SMEs and Startups pursuant to Article 75 (3) for the regional development fit for the characteristics of the relevant region;
13. The term "regulation-free special zone (regulation-free zone)" means a zone subject to the application of special cases for regulation, etc., which have been designated and publicly notified by the Minister of SMEs and Startups pursuant to Article 75 (3) and (4) to promote an innovative project or strategic industry in a Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (excluding the Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) (hereinafter referred to as "regulation-free special zone");
14. The term "land use plan for a regulation-free special zone" means a plan established to efficiently utilize land used for a project prescribed by Presidential Decree which is related to a regional innovative growth project or regional strategic industry, or project related to a regional strategic industry (hereinafter referred to as "regional strategic industry, etc.");
15. The term "project implementer of a regulation-free special zone" means a Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (excluding the head of a Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act) or a person included in a plan for a regulation-free special zone as a person who engages in a regional innovative growth project or regional strategic industry, etc. (hereinafter referred to as "innovative project, strategic industry, etc.") in a regulation-free special zone; in accordance with the plan for a regulation-free special zone;
16. The term "special cases for demonstration" means cases exempted from the application of all or part of regulation so that the testing, verification, etc. of a new product or service utilizing a new technology can be conducted where it is difficult to implement the project for innovative project, strategic industry, etc. because it is impossible to apply for various permissions, approvals, certifications, verifications, authorizations, etc. (hereinafter referred to as "permission, etc.") under other statutes or regulations or there is no criteria, standards, requirements, etc. in the statutes or regulations that serves as grounds for permission, etc., or where it is inappropriate to apply the criteria, standards, requirements, etc. provided for in the statutes or regulations;
17. The term "provisional permission" means the act of granting permission, etc. temporarily for a fixed period if verification has been completed from a safety standpoint, where there is no criteria, standards, requirements, etc. in the statutes or regulations that serve as grounds for permission, etc. for innovative project, strategic industry, etc. or where it is inappropriate to apply the criteria, standards, requirements, etc. provided for in the statutes or regulations.
 Article 3 (Relationship to Other Statutes)
(1) This Act shall take precedence over other statutes in applying special cases for regulation, etc. to special economic zones for specialized regional development and regulation-free special zones: Provided, That if any other statute has a provision that relaxes regulation more than the special cases for regulation, etc. under this Act, such statute shall apply thereto.
(2) Except as otherwise provided for in this Act, any matter entitled to the application of special cases for regulation, etc. under this Act shall be subject to the application of the statute giving authority for regulation (referring to the statute applicable where any special case for regulation, etc. is not applicable to the relevant matter; hereinafter the same shall apply).
(3) Where any other statute is enacted or amended with any content that amends special cases for regulation, etc. provided for in this Act in regard to a specialization project and innovative project, strategic industry, etc. implemented in a special economic zone for specialized regional development or regulation-free special zone, it shall conform to the purpose of this Act and the principles specified in paragraphs of Article 4.
 Article 4 (Principle of Prior Permission and Ex-Post Regulation)
(1) In principle, the State and each local government shall permit innovative project, strategic industry, etc. for the purpose of national development and invigoration of regional economy: Provided, That they may restrict projects utilizing new technologies if such projects cause harm to the life or safety of the people or if it seriously hinders the environment.
(2) The State and local governments shall take measures to improve the statutes or regulations and systems under their jurisdiction which are related to innovative project, strategic industry, etc. to conform to the principles specified in paragraph (1).
CHAPTER II SPECIAL ECONOMIC ZONES FOR SPECIALIZED REGIONAL DEVELOPMENT
SECTION 1 Designation and Operation of Special Economic Zones for Specialized Regional Development
 Article 5 (Filing Applications for Designation of Special Economic Zones for Specialized Regional Development)
(1) The head of a Si (the head of an administrative city under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City is included and the Sejong Special Self-Governing City Mayor under the Special Act on the Establishment of Sejong Special Self-Governing City is deemed included; hereinafter the same shall apply) or Gun/Gu (the head of a Gu refers to the head of an autonomous Gu; hereinafter the same shall apply) who intends to promote a specialization project shall prepare a plan for the special economic zone for specialized regional development under Article 9 (hereinafter referred to as "specialized zone plan") and file an application for the designation of a special economic zone for specialized regional development (hereinafter referred to as "specialized zone") with the Minister of SMEs and Startups.
(2) Notwithstanding paragraph (1), if the head of a Si (the head of a Si includes the head of an administrative city under the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City and is deemed to include the Sejong Special Self-Governing City Mayor under the Special Act on the Establishment of Sejong Special Self-Governing City; hereinafter the same shall apply) or Gun/Gu (referring to the head of an autonomous Gu; hereinafter the same shall apply) intends to promote a specialization project jointly with another local government, the head of the relevant Si/Gun/Gu and the head of the relevant local government shall jointly prepare a specialized zone plan and file an application for the designation of a specialized zone.
(3) The head of a Si/Gun/Gu who has filed an application for designation of a specialized zone under paragraph (1) or (2) shall notify the competent Special Metropolitan City Mayor, Metropolitan City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as "Mayor/Do Governor") of the specialized zone plan.
(4) A Mayor/Do Governor in receipt of a notification under paragraph (3) may present his/her opinion on the relevant specialized zone plan to the Minister of SMEs and Startups or to the committee on special economic zones for specialized regional development established under Article 12.
 Article 6 (Proposal of Specialized Zone Plans)
(1) Any private enterprise, corporation, organization, or private individual (hereinafter referred to as "private enterprise, etc.") may propose a specialized zone plan to the head of the Si/Gun/Gu having jurisdiction over the relevant proposed specialized zone.
(2) A specialized zone plan proposed by a private enterprise, etc. shall include the matters specified in the subparagraphs of Article 9 (1). In such cases, the proposer of the specialized zone plan shall be deemed to have filed an application to be designated as a specialization project operator under Article 8 (1).
(3) The head of the competent Si/Gun/Gu in receipt of a specialized zone plan under paragraph (1) shall take the following matters into consideration and, if the designation of the specialized zone is deemed necessary, file an application for designation of the specialized zone with the Minister of SMEs and Startups reflecting these matters in the specialized zone plan, as prescribed by Presidential Decree:
1. The likelihood of occurrence of any adverse effect, such as reckless development or environmental pollution as a consequence of the promotion of the specialization project;
2. The likelihood of occurrence of conflicts among residents as a consequence of the promotion of the specialization project;
3. The funding plan;
4. Other local characteristics or the purport of operating the system for special economic zones for specialized regional development.
 Article 7 (Hearing Opinions of Residents)
(1) The head of any local government who intends to file an application for the designation of a specialized zone shall prepare a specialized zone plan in advance, make a public announcement of the plan for at least 20 days, as prescribed by Presidential Decree, and hold a public hearing to hear opinions of residents, enterprises, and relevant experts.
(2) The head of any local government who intends to file an application for the designation of a specialized zone shall hear the opinions of the local council on the specialized zone plan.
 Article 8 (Filing Applications for Designation of Specialization Project Operators)
(1) Any person who intends to perform a specialization project under the specialized zone plan publicly announced pursuant to Article 7 (1) shall file an application for designation of a specialization project operator with the head of the local government that files an application for designation of the relevant specialized zone (referring to a Si/Gun/Gu, if the application is filed jointly by the competent Special Metropolitan City, a Metropolitan City, Special Self-Governing City, Do or Special Self-Governing Province (hereinafter referred to as "City/Do") and Si/Gun/Gu under the relevant jurisdiction pursuant to Article 5 (2), or referring to the competent local government, if the application is jointly filed otherwise; hereinafter referred to as "local government applicant").
(2) Upon receiving an application for designation of a specialization project operator under paragraph (1), the head of any local government applicant shall determine whether to include the applicant as a specialization project operator of the specialized zone plan and notify the applicant of his/her determination within 30 days.
(3) Except as otherwise provided for in paragraphs (1) and (2), the method of filing an application for designation of a specialization project operator, the procedure for making determination thereon and giving notice thereof, and other relevant matters shall be prescribed by Ordinance of the Ministry of SMEs and Startups.
 Article 9 (Plans for Special Economic Zones for Specialized Regional Development)
(1) Each specialized zone plan shall include the following:
1. The name, location, and area of, and method of indicating the specialized zone;
2. Need for the designation of the specialized zone;
3. The specialization project and the specialization project operators;
4. A land use plan for a specialized zone (limited to cases where it is intended to be entitled to the application of all or part of the special cases for regulation on land use under Articles 64 (1) and (3) and 65 (1) or to the application thereof after revising an approved land use plan for the specialized zone; hereinafter the same shall apply);
5. Special cases for regulation applicable to the specialized zone (referring to the special cases for regulation provided for in Section 2 of Chapter II; hereinafter the same shall apply through Chapter II) and detailed data necessary for determining whether to apply special cases for regulation, such as the need for and the scope of application thereof;
6. Funding methods;
7. A scheme to stabilize real estate prices in the specialized zone and its neighborhood;
8. Matters to be included in the specialized zone plan pursuant to Articles 32 (2), 44 (5), 48 (2), 68 (1) and (2), 69 (1), 70 (1), and 71;
9. Where members of the facilities to be created by a specialization project are to be recruited, the plan for such recruitment;
10. Other matters prescribed by Presidential Decree and necessary for designating the specialized zone.
(2) If it is impracticable for the head of a local government applicant to submit a land use plan for a specialized zone as at the time he/she files an application for designation of the specialized zone, he/she shall submit such land use plan to the Minister of SMEs and Startups for approval within two years from the date the designation of the specialized zone was publicly notified.
(3) Article 11 shall apply mutatis mutandis to the approval of a land use plan for a specialized zone submitted under paragraph (2). In such cases, the term "specialized zone" shall be construed as "land use plan for a specialized zone," and the term "designation" as "approval," respectively.
 Article 10 (Consultation on Strategic Environmental Impact Assessment)
(1) If a specialized zone plan submitted includes any development project subject to strategic environmental impact assessment under Article 9 of the Environmental Impact Assessment Act, the Minister of SMEs and Startups shall consult with the Minister of Environment as at the time he/she enters into consultations under Article 11 (1). Consultations held with the Minister of Environment shall be deemed consultations on strategic environmental impact assessment under the Environmental Impact Assessment Act.
(2) When the head of any local government applicant submits a specialized zone plan that includes any development project subject to strategic environmental impact assessment under Article 9 of the Environmental Impact Assessment Act, he/she shall also submit a report on strategic environmental impact assessment under Article 16 of the Environmental Impact Assessment Act.
 Article 11 (Designation of Specialized Zones)
(1) The Minister of SMEs and Startups shall designate a specialized zone, subject to consultation with the heads of relevant administrative agencies (including collegiate administrative agencies; hereinafter the same shall apply) and deliberation and resolution thereon by the committee on special economic zones for specialized regional development established under Article 12.
(2) Upon designating a specialized zone pursuant to paragraph (1), the Minister of SMEs and Startups shall publish a notice thereof in the Official Gazette, as prescribed by Presidential Decree, and also, without delay, notify the head of the relevant Si/Gun/Gu, the competent Mayor/Do Governor, and the heads of the relevant administrative agencies thereof. In such cases, Article 8 of the Framework Act on the Regulation of Land Use shall govern the public notice, etc. of topographical maps.
(3) Upon receipt of notification under paragraph (2), the head of a Si/Gun/Gu shall make the details thereof available to the residents for perusal for at least 14 days.
(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for designating specialized zones shall be prescribed by Presidential Decree.
 Article 12 (Establishment and Operation of Committee on Special Economic Zones for Specialized Regional Development)
(1) A committee on special economic zones for specialized regional development (hereinafter referred to as the "Specialized Zone Committee") shall be established within the Ministry of SMEs and Startups to deliberate and resolve on the following:
1. Matters concerning the basic policy on and systems of specialized zones;
2. Matters concerning the designation of specialized zones and the cancellation of such designation;
3. Matters concerning specialized zone plans;
4. Matters concerning the application, amendment and cancellation of special cases for regulation;
5. Matters concerning the adjustment of opinions on specialized zones between the heads of central administrative agencies and the heads of local governments;
6. Matters concerning the evaluation of the operation of specialized zones;
7. Other matters prescribed by Presidential Decree and necessary for the designation and operation of specialized zones.
(2) The Specialized Zone Committee shall be comprised of one chairperson, two vice chairpersons, ex officio members, and up to ten commissioned members.
(3) The Minister of SMEs and Startups shall take the chair of the Specialized Zone Committee, and Vice-Ministers of the Ministry of Land, Infrastructure and Transport nominated by the Minister of Land, Infrastructure and Transport and persons elected by and from among the commissioned members prescribed in paragraph (2) shall serve as vice chairpersons of the Specialized Zone Committee.
(4) Vice-Ministers or public officials equivalent to Vice-Ministers of central administrative agencies related to special cases for regulation and specialized zones and persons prescribed by Presidential Decree shall serve as ex officio committee members.
(5) Commissioned members shall be commissioned by the chairperson of the Specialized Zone Committee chairperson from among the persons who have abundant knowledge and experience in specialization projects and local administration.
(6) The Specialized Zone Committee shall have a working committee to examine preliminarily the matters provided for in paragraph (1) and coordinate the matters in which cooperation of relevant administrative agencies is required.
(7) Except as otherwise provided for in paragraphs (1) through (6), matters necessary for the organization and operation of the Specialized Zone Committee and the working committee shall be prescribed by Presidential Decree.
 Article 13 (Matters to Be Taken into Consideration in Deliberation and Resolution by Specialized Zone Committee)
The Specialized Zone Committee shall take the following matters into consideration in its deliberation and resolution under Article 11 (1):
1. The compatibility of a specialization project with the local characteristics and conditions;
2. The connectivity between the special cases for regulation for which any local government applicant applies and a specialization project;
3. Securing financial resources, etc. to support the implementation of a specialization project;
4. The possibility of inviting domestic and foreign investments for a specialization project;
5. Effects on the stimulation of the national and regional economies;
6. The level of compatibility with the master urban/Gun plan under the National Land Planning and Utilization Act;
7. Opinions of local residents and enterprises on a specialized zone and a specialization project;
8. Other matters to be considered when designating specialized zones, as prescribed by Presidential Decree.
 Article 14 (Effects of Designation of Specialized Zones)
(1) The designation and public notice of a specialized zone pursuant to Article 11 (1) and (2) shall be deemed to be approval of the relevant specialized zone plan, and any person who has filed an application to be designated as a specialization project operator shall be deemed a person designated as a specialization project operator, if he/she is included in the specialized zone plan.
(2) Notwithstanding paragraph (1) and Article 8 (1) and (2), if the head of any local government applicant deems it necessary to invite private investments, he/she may file an application to revise the relevant specialized zone plan pursuant to Article 16 (1) with the Minister of SMEs and Startups, upon receiving applications for designation of the specialization project operator, after the relevant specialized zone is designated pursuant to Article 11 (1).
(3) The special cases for regulation under Section 2 of Chapter II shall apply to the specialized zone and the specialization project operators involved therein pursuant to the provisions stipulated in the relevant specialized zone plan and municipal ordinances under Article 18.
 Article 15 (Surveys on Application of Special Cases for Regulation and Requests for Cancellation of Designation)
(1) The head of each relevant central administrative agency shall conduct a survey on the current status of application of special cases for regulation and achievements therefrom at least once every two years and report the results thereof to the Specialized Zone Committee.
(2) The head of each relevant central administrative agency shall establish standards, etc. for surveys on the current status of application of special cases for regulation after deliberation and resolution thereon by the Specialized Zone Committee, and notify the head of each Si/Gun/Gu having jurisdiction over the area designated and publicly notified as a specialized zone (hereinafter referred to as "competent local government of a specialized zone") thereof.
(3) If the head of each relevant central administrative agency finds, as a result of the survey under paragraph (1), that a specialized zone falls under any subparagraph of Article 16 (2) (excluding subparagraph 5), he/she may request the Minister of SMEs and Startups to revise the relevant specialized zone plan or cancel the designation of the specialized zone.
(4) If the Minister of SMEs and Startups concludes, as a result of the survey under paragraph (1), that no adverse effect is anticipated in applying the relevant special cases for regulation, he/she may request the relevant administrative agency to improve the regulation under the relevant individual law to which special cases for regulation applies.
 Article 16 (Cancellation of Designation of Specialized Zones)
(1) If the head of the competent local government of a specialized zone intends to cancel the designation of a specialized zone or revise any details of the approved specialized zone plan, he/she shall file an application therefor with the Minister of SMEs and Startups, applying mutatis mutandis Articles 5 through 8: Provided, That the procedure prescribed in Articles 7 and 8 may be omitted if the measure to add a special case when the relevant specialized zone plan is revised does not place any restriction on the local residents' exercise of their property rights or if none of the special case for regulation under Articles 62 through 65 is included therein.
(2) The Minister of SMEs and Startups may cancel the designation of a specialized zone or revise any details of the relevant specialized zone plan after deliberation and resolution thereon by the Specialized Zone Committee in any of the following circumstances: Provided, That where it is intended to revise any insignificant matters prescribed by Presidential Decree in any case falling under subparagraph 6, such revision need not to be submitted to the Specialized Zone Committee for deliberation and resolution:
1. If the competent local government of a specialized zone violates any statute or regulation in operating the specialized zone or operates the specialized zone inconsistently with the relevant specialized zone plan;
2. If the application of any special case for regulation to the relevant specialized zone or specialization project causes a seriously adverse effect;
3. If it is impossible to achieve the objectives of the designation of the specialized zone;
4. If the special cases for regulation on land use under Articles 62 through 65 are the main issue of the relevant specialized zone plan, but it is impossible to achieve the objectives of the designated specialized zone because the relevant specialization project operator fails to submit the land use plan for a specialized zone within two years from the date of public notice of the designation of the specialized zone, notwithstanding Article 9 (2);
5. If one year has passed since the date the objectives of the designation of the specialized zone were achieved;
6. If the head of the competent local government of a specialized zone files an application pursuant to paragraph (1);
7. Other cases where any other ground prescribed by Presidential Decree similar to those provided for in subparagraphs 1 through 3 exists.
(3) The competent Si/Gun/Gu having jurisdiction over a specialized zone, the designation of which is cancelled pursuant to paragraph (2) (excluding cases falling under subparagraphs 5 and 6) shall not designate any specialized zone under this Act within the period prescribed by Presidential Decree to the maximum of three years.
(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the procedures for cancelling the designation of specialized zones and other relevant matters shall be prescribed by Presidential Decree.
 Article 17 (Effects of Cancellation of Designation of Specialized Zones)
(1) Any municipal ordinance enacted pursuant to this Act shall become ineffective if and when the designation of the relevant specialized zone is cancelled or any content of the relevant specialized zone plan is revised pursuant to Article 16 (2) with the consequence that special cases for regulation ceases to be applicable.
(2) The special cases for regulation recognized pursuant to this Act and the permission, authorization, approval and the like thereunder shall become ineffective if and when the designation of the relevant specialized zone is cancelled or any content of the designation of the relevant specialized zone is revoked as a consequence of a revision to any content of the relevant specialized zone plan pursuant to Article 16 (2): Provided, That the same shall not apply to the cases where the permission, authorization, approval, or the like for the same content has been obtained pursuant to the relevant statutes giving authority for regulation within the period prescribed by Presidential Decree up to one year.
(3) If the special cases for regulation and the permission, authorization, approval, or the like become ineffective with regard to a specialized zone or a specialization project pursuant to the main sentence of paragraph (2), the head of the competent local government of a specialized zone or the specialization project operator shall alter or remove the advertising materials and facilities installed with such permission, authorization, approval, or the like in compliance with the relevant statutes or regulations giving authority for such regulation within the period prescribed by Presidential Decree up to one year: Provided, That the same shall not apply where it is substantially difficult to alter or remove such materials and facilities or there is no practical use of such alteration or removal, as prescribed by Presidential Decree.
 Article 18 (Enactment of Municipal Ordinance)
(1) The competent local government of a specialized zone may enact, amend, or repeal any municipal ordinance stipulating the matters necessary for operating the specialized zone and implementing the specialization project, as prescribed by this Act and Presidential Decree.
(2) The municipal ordinance enacted, amended, or repealed by the competent local government of a specialized zone shall be consistent with the purpose and contents of this Act and the specialized zone plan approved pursuant to Article 14.
(3) Where the competent local government of a specialized zone enacts, amends, or repeals any municipal ordinance pursuant to paragraph (1), the head of the competent local government of a specialized zone shall notify the Minister of SMEs and Startups and the heads of relevant administrative agencies thereof.
 Article 19 (Heads of Competent Local Government of Joint Specialized Zones)
In cases where a specialized zone is designated as a result of a joint application of the Mayor/Do Governor and the head of any Si/Gun/Gu, the head of Si/Gun/Gu shall be deemed the head of the competent local government of a specialized zone under this Act. In such cases, the head of the competent local government of a specialized zone shall consult with the competent Mayor/Do Governor about the operation of the specialized zone.
 Article 20 (Responsibilities and Support for Specialized Zones)
(1) The Government and the competent local government of a specialized zone shall endeavor to develop and boost the specialized zone.
(2) The Minister of SMEs and Startups and the heads of relevant administrative agencies may provide data and other support necessary for preparing specialized zone plans and designating and operating specialized zones.
(3) The head of the competent local government of a specialized zone may seek necessary advice from the heads of relevant administrative agencies concerning the operation of the relevant specialized zone and the application of special cases for regulation and the heads of the relevant administrative agencies shall cooperate with him/her in good faith.
(4) The Minister of SMEs and Startups may recommend the head of any relevant administrative agency to give preferential consideration, in conjunction with the establishment of a policy on financial support to regions, to specialization projects deemed necessary by the Specialized Zone Committee.
 Article 21 (Stabilization of Real Estate Prices in Specialized Zones)
(1) The Minister of SMEs and Startups, the head of a relevant administrative agency, and the head of the competent local government of a specialized zone shall take measures necessary for stabilizing real estate prices of the land, buildings, and similar in the specialized zone and its neighborhood.
(2) The head of each local government shall request the heads of relevant central administrative agencies and the competent Mayor/Do Governor to take the following measures for the area in which speculative investments in real estate or a sudden rise of real estate prices is likely to occur as a consequence of the application for or the designation of a specialized zone:
1. Designation as a designated area under Article 104-2 (1) of the Income Tax Act;
2. Designation as a high-speculation area under Article 63 of the Housing Act;
3. Designation of an area subject to permission for land transaction contracts under Article 10 of the Act on Report on Real Estate Transactions;
4. Other measures necessary for stabilizing real estate prices.
 Article 22 (Names of Specialized Zones)
Each specialized zone shall be named by the head of the competent local government of a specialized zone, and the words "special zone" shall be included in the name. In such cases, a name distinct from "special tourist zone" under Article 70 of the Tourism Promotion Act, "special research and development zone", etc. under Article 4 of the Special Act on Promotion of Special Research and Development Zones shall be given.
 Article 23 (Reporting on Operation of Specialized Zones)
(1) The head of the competent local government of a specialized zone shall submit an annual report on the outcomes of operating the specialized zone to the Minister of SMEs and Startups.
(2) Matters necessary for the timing and methods for the submission of reports and other relevant matters shall be prescribed by Ordinance of the Ministry of SMEs and Startups.
 Article 24 (Evaluation on Operation of Specialized Zones)
(1) The Minister of SMEs and Startups shall evaluate the achievements from the operation of specialized zones each year, taking the reports under Article 23 (1) into consideration, after deliberation and resolution thereon by the Specialized Zone Committee.
(2) The Minister of SMEs and Startups shall complete each evaluation under paragraph (1) within 180 days after the end of the period prescribed for the submission of reports under Article 23 (1): Provided, That the period may be extended up to 60 days if there are unavoidable circumstances.
(3) The Minister of SMEs and Startups shall disclose the results of evaluations under paragraph (1) to the public.
(4) Method of the disclosure under paragraph (3) and other necessary matters concerning the evaluation by the Specialized Zone Committee shall be prescribed by Presidential Decree.
 Article 25 (Upgrading of Structures of Specialized Zones)
(1) If it is deemed necessary to invigorate a specialized zone and improve the competitiveness thereof based on evaluation of achievements from the operation of the specialized zone, the Minister of SMEs and Startups may recommend the head of the competent local government of a specialized zone to upgrade the structure of the specialized zone, such as change of the type of the specialized zone, improvement of management technique or production method, and collaboration among industry, academia and research institutes, and request him/her to establish and submit a plan for upgrading the structure of the specialized zone.
(2) The Minister of SMEs and Startups may provide support necessary to implement a plan for upgrading the structure of a specialized zone submitted pursuant to paragraph (1).
(3) Except as otherwise provided for in paragraphs (1) and (2), matters necessary for upgrading the structure of specialized zones shall be prescribed by Presidential Decree.
 Article 26 (Payment of Rewards)
(1) The Minister of SMEs and Startups may pay a reward to the competent local government of a specialized zone that showed outstanding achievements as a result of an evaluation under Article 24.
(2) The criteria, methods and procedures for the payment of rewards under paragraph (1) and other relevant matters shall be prescribed by Ordinance of the Ministry of SMEs and Startups.
 Article 27 (Demand Surveys regarding Specialized Zones)
(1) The Minister of SMEs and Startups shall conduct a demand survey at least once a year with regard to the regulation for which special cases for regulation is required and matters necessary for operating specialized zones, as prescribed by Presidential Decree.
(2) The Minister of SMEs and Startups and the head of each relevant administrative agency shall review the results of surveys under paragraph (1) and shall take necessary measures.
(3) Matters necessary for conducting demand surveys and reviewing the results of such surveys under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
SECTION 2 Special Cases for Regulation of Special Economic Zones for Specialized Regional Development
 Article 28 (Special Cases for Establishment of Schools)
(1) Notwithstanding Article 3 of the Elementary and Secondary Education Act, the head of the competent local government of a specialized zone in which a specialization project for education is undertaken may establish and operate public schools (which may be classified into Si/Gun/Gu schools, depending upon the establishing entity) with authorization of the superintendent of education.
(2) Notwithstanding Article 4 (1) of the Elementary and Secondary Education Act, necessary matters concerning the standards for the establishment of the schools under paragraph (1), such as equipment and facilities involved therein, may be prescribed by municipal ordinance of each City/Do.
(3) Notwithstanding Article 19 (4) of the Elementary and Secondary Education Act, the full number of the teaching staff and exceptional standards for the placement of such staff may be prescribed by Presidential Decree for the schools established pursuant to paragraph (1).
(4) The schools established pursuant to paragraph (1) shall be deemed schools under Article 2 of the Elementary and Secondary Education Act.
 Article 29 (Special Cases for the Local Public Officials Act and the Educational Officials Act)
(1) The teaching staff working for the schools established pursuant to Article 28 (1) shall be deemed local public officials under Article 2 (2) 2 of the Local Public Officials Act.
(2) The Educational Officials Act shall apply mutatis mutandis to the qualification for and appointment of teaching staff under paragraph (1), and the remuneration for, training of, guarantee of status of, disciplinary actions against and the petitions of such teaching staffers: Provided, That principal and other teaching staff shall be appointed by the head of the competent local government of a specialized zone, notwithstanding Articles 29-2 (1) and (8) and 30 of the Educational Officials Act.
 Article 30 (Special Cases for the Elementary and Secondary Education Act)
(1) Any specialization project operator who undertakes a specialization project for education (limited to schools under the elementary and secondary education related statutes or regulations) may appoint foreigners who meet the qualification requirements prescribed by Presidential Decree as teaching staff and instructors of foreign languages for special education of foreign languages, notwithstanding Article 21 of the Elementary and Secondary Education Act.
(2) The head of any school who intends to operate a school or curriculum subject to special cases under Article 61 of the Elementary and Secondary Education Act in a specialized zone in which a specialization project for education is undertaken shall obtain designation of the competent superintendent of education with recommendation of the head of the competent local government of a specialized zone: Provided, That such school shall be designated and operated for a period of not more than five years, but may be operated for an additionally extended period, as determined by the competent superintendent of education.
 Article 31 (Special Cases for the Immigration Act)
(1) Notwithstanding Articles 8 and 10 of the Immigration Act, the procedure for the issuance of visas to foreigners who undertake or engage in a specialization project and the maximum sojourn period that may be allowed each time may be prescribed for each sojourn status exceptionally by Presidential Decree.
(2) Any foreigner who intends to be eligible for the application of paragraph (1) in filing an application for the issuance of visas under the Immigration Act shall obtain certification of the head of the competent local government of a specialized zone, as prescribed by Presidential Decree.
 Article 32 (Special Cases for the Protection of Military Bases and Installations Act)
(1) Any specialization project undertaken within the protective zone of a military base or installation under subparagraph 6 of Article 2 of the Protection of Military Bases and Installations Act shall be deemed to have been consulted on with the Minister of National Defense or the competent commanding officer pursuant to Article 13 of the aforesaid Act.
(2) The specific location, area, and boundaries of the areas to which the special case under paragraph (1) is applicable, the height of buildings that may be erected in such areas, and other necessary matters in detail shall be included in the relevant specialized zone plan.
 Article 33 (Special Cases for the Road Traffic Act)
(1) The head of the competent local government of a specialized zone may, if necessary for a specialization project, request the commissioner of the competent regional police agency or the chief of the competent police station to take such measures as banning or restriction of road traffic of motor vehicles, horses or trolley cars.
(2) Notwithstanding Article 6 of the Road Traffic Act, the commissioner of the competent regional police agency or the chief of the competent police station shall, upon receiving a request for the measures under paragraph (1), take necessary measures, without delay, unless any special ground exists to the contrary.
 Article 34 (Special Cases for the Act on the Management of Outdoor Advertisements and Promotion of Outdoor Advertisement Industry)
(1) Notwithstanding Article 3 (3) of the Act on the Management of Outdoor Advertisement and Promotion of Outdoor Advertisement Industry, the competent local government of a specialized zone may prescribe necessary matters concerning the standards for permission for or reporting on the display and installation of advertisements, etc., by municipal ordinance, such as the types, shapes, sizes, colors, and display or installation method and period for advertisements, etc. for the effective advertisement of the specialization project.
(2) Notwithstanding Article 4 of the Act on the Management of Outdoor Advertisement and Promotion of Outdoor Advertisement Industry, the competent local government of a specialized zone may prescribe necessary matters concerning the ban or restriction on the display or installation of advertisements, etc. by municipal ordinance.
 Article 35 (Special Cases for the Agricultural and Fishing Villages Improvement Act)
(1) Notwithstanding Article 24 (1) of the Agricultural and Fishing Villages Improvement Act, the competent local government of a specialized zone (applicable only where the local government is an agricultural infrastructure manager designated under Article 17 of the Agricultural and Fishing Villages Improvement Act) may cease to use the agricultural infrastructure without approval of the competent Mayor/Do Governor, if necessary for the relevant specialization project.
(2) Notwithstanding Article 61 of the Agricultural and Fishing Villages Improvement Act, the competent local government of a specialized zone may revise the action plan for a livelihood environment improvement project, if necessary for the relevant specialization project.
(3) Notwithstanding Article 81 (2) of the Agricultural and Fishing Villages Improvement Act, the competent local government of a specialized zone may otherwise prescribe standards for the scale of and facilities for the tourism and resort business in agricultural and fishing villages, which are undertaken as specialization projects, by municipal ordinance, within the scope prescribed by Presidential Decree, if necessary for the relevant specialization project.
(4) Facilities necessary for a specialization project may be installed in addition to facilities specified in the subparagraphs of Article 92 of the Agricultural and Fishing Villages Improvement Act within any area designated and publicly notified as a rearrangement district pursuant to Article 94 (1) of the aforesaid Act, such as marginal farmland.
 Article 36 (Special Cases for the Farmland Act)
(1) Notwithstanding Article 9 of the Farmland Act, any farmland owner may entrust a third party with his/her farmland for management, if necessary for a specialization project.
(2) Notwithstanding Article 23 of the Farmland Act, any specialization project operator may lease or gratuitously lend farmland for use, if necessary for a specialization project.
(3) Notwithstanding Article 32 of the Farmland Act, any specialization project operator may install the facilities specified and publicly notified by the Minister of Agriculture, Food and Rural Affairs in an agriculture promotion area or an agriculture protection area, if necessary for a specialization project.
(4) Notwithstanding Article 36 (1) of the Farmland Act, the competent local government of a specialized zone may prescribe the uses permissible for any temporary use of farmland by municipal ordinance on condition that the farmland shall be restored to its original state after the use for a specific period, if necessary for a specialization project.
(5) Notwithstanding Article 37 of the Farmland Act, the head of the competent local government of a specialized zone may permit the diversion of farmland, if necessary for a specialization project.
 Article 37 (Special Cases for the Creation and Management of Forest Resources Act)
(1) Notwithstanding Article 9 (1) of the Creation and Management of Forest Resources Act, the head of the competent local government of a specialized zone may, if necessary for the relevant specialization project, install forest roads with consent of forest owners: Provided, That the assessment of validity of infrastructure for forest management under Article 9 (2) of the aforesaid Act shall be conducted at the time of consultation with the Minister of the Korea Forest Service under Article 11.
(2) The head of the competent local government of a specialized zone shall, upon completion of a forest road under paragraph (1), notify the Minister of the Korea Forest Service thereof.
 Article 38 (Special Cases for the Mountainous Districts Management Act)
Notwithstanding Article 18 of the Mountainous Districts Management Act, exceptional standards for the permission for diversion of mountainous districts may be prescribed by Presidential Decree, if necessary for a specialization project.
 Article 39 (Special Cases for the State Forest Administration and Management Act)
(1) Notwithstanding Article 20 of the State Forest Administration and Management Act, the Minister of the Korea Forest Service may, if necessary for the relevant specialization project, sell or exchange any State forest.
(2) Notwithstanding Article 21 (1) of the State Forest Administration and Management Act, the Minister of the Korea Forest Service may, if necessary for the relevant specialization project, loan any State forest or grant permission for the use of any State forest.
(3) Notwithstanding Article 22 of the State Forest Administration and Management Act, any person to whom any State-owned forest is loaned or the permission for the use of any State forest is granted pursuant to paragraph (2) may install permanent facilities therein on condition that he/she shall donate the facilities to the relevant State forest, remove such facilities, or restore the forest to its original state.
(4) The guidelines for the sale, exchange, loan, and permission for use under paragraphs (1) through (3) and other necessary matters shall be prescribed by Presidential Decree.
 Article 40 (Special Cases for the Act on Distribution and Price Stabilization of Agricultural and Fishery Products)
(1) Notwithstanding Article 17 (1) of the Act on Distribution and Price Stabilization of Agricultural and Fishery Products, the competent local government (excluding Gu; the same shall apply hereafter in this Article) of a specialized zone may open a local wholesale market without permission.
(2) In regard to a local wholesale market opened pursuant to paragraph (1), the founder of a local wholesale market under the Act on Distribution and Price Stabilization of Agricultural and Fishery Products shall be deemed the competent local government of a specialized zone for the purposes of the aforesaid Act.
 Article 41 (Special Cases for the Pharmaceutical Affairs Act)
Notwithstanding the main sentence of Article 45 (5) of the Pharmaceutical Affairs Act, with the exception of its subparagraphs, any oriental medicine wholesaler in a specialized zone for oriental medicine may jointly employ pharmacists, herb pharmacists, licensed herb distributers, or graduates from a department related to oriental medicine, as prescribed by Presidential Decree.
 Article 42 (Special Cases for the Medical Service Act)
Notwithstanding Article 49 of the Medical Service Act, any medical corporation designated as the project operator of a specialization project for medical service may engage in any incidental business prescribed by Presidential Decree.
 Article 43 (Special Cases for the Act on Funeral Services)
(1) Notwithstanding Article 27 (2) of the Act on Funeral Services, the period of notification for relocation of a grave may be prescribed as not less than two months, if necessary for a specialization project in a specialized zone.
(2) Notwithstanding Article 27 (5) of the Act on Funeral Services, the head of the competent local government of a specialized zone may prescribe exceptions to rules necessary for public announcement by municipal ordinance, if necessary for a specialization project.
 Article 44 (Special Cases for the National Land Planning and Utilization Act)
(1) Where opinions of residents, etc. and opinions, etc. of the competent local council have been heard pursuant to Article 7 on a specialized zone plan in which a draft urban/Gun management plan is included, opinion of residents, etc. and opinions of the competent local council under Article 28 (1) and (5) of the National Land Planning and Utilization Act shall be deemed heard, respectively.
(2) Where any of the following applies to a specialized zone, the Minister of Land, Infrastructure and Transport need not submit the relevant case to the Central Urban Planning Committee for deliberation, notwithstanding the main sentence of Article 8 (5) of the National Land Planning and Utilization Act, with the exception of its subparagraphs:
1. Where a land use plan for a specialized zone is not included in the specialized zone plan;
2. Where no development-restriction zone designated under Article 38 of the National Land Planning and Utilization Act is included in the land use plan for a specialized zone and the planned area of the land use plan for the specialized zone does not exceed the area prescribed in Article 8 (2) of the same Act.
(3) Notwithstanding Article 77 of the National Land Planning and Utilization Act, the competent local government of a specialized zone may otherwise prescribe a limit on the building-to-land ratio by municipal ordinance within the limit prescribed by Presidential Decree, if necessary for the relevant specialization project.
(4) Notwithstanding Article 78 of the National Land Planning and Utilization Act, the competent local government of a specialized zone may otherwise prescribe a limit on the floor area ratio by municipal ordinance within the limit prescribed by Presidential Decree, if necessary for the relevant specialization project.
(5) The necessity for the application of the special cases provided for in paragraphs (3) and (4), the details thereof, and the matters prescribed by Presidential Decree shall be included in each specialized zone plan, and each specialized zone plan shall be prepared, upon deliberation by the competent Si/Gun/Gu urban planning committee under Article 113 of the National Land Planning and Utilization Act.
 Article 45 (Special Cases for the Road Act)
The competent road management authorities shall cooperate, without delay, with any person who files an application for permission to occupy and use a road pursuant to Article 61 (1) of the Road Act for a specialization project, except in extenuating circumstances.
 Article 46 (Special Cases for the Act on Urban Parks, and Green Areas)
(1) Notwithstanding Article 24 (3) of the Act on Urban Parks and Green Areas, the competent local government of a specialized zone may otherwise prescribe criteria for persons or facilities eligible to occupy and use an urban park and standards for such occupancy and use by its municipal ordinance, if necessary for the relevant specialization project.
(2) Notwithstanding Article 27 (3) of the Act on Urban Parks and Green Areas, the competent local government of a specialized zone may otherwise prescribe standards for permission for activities allowed in urban natural park zones by its municipal ordinance, if necessary for the relevant specialization project.
(3) Notwithstanding Article 38 (3) of the Act on Urban Parks and Green Areas, the competent local government of a specialized zone may otherwise prescribe criteria for persons or facilities eligible to occupy and use a green area and standards for such occupancy and use by its municipal ordinance, if necessary for the relevant specialization project.
(4) Facilities eligible to occupancy and use an urban park, an urban natural park area, or green area pursuant to paragraphs (1) through (3) shall be limited to facilities for public interest purposes consulted with the Minister of Land, Infrastructure and Transport.
 Article 47 (Special Cases for the Industrial Sites and Development Act)
Notwithstanding the provisions concerning the area or ratio of unsold parcels of land pursuant to Article 8-2 of the Industrial Sites and Development Act, the head of the competent local government of a specialized zone may designate an industrial complex, if necessary for the relevant specialization project.
 Article 48 (Special Cases for the Monopoly Regulation and Fair Trade Act)
(1) Any joint research, technology development, etc. necessary for the specialization project in a specialized zone shall be deemed authorized by the Fair Trade Commission under Article 19 (2) of the Monopoly Regulation and Fair Trade Act.
(2) Joint research, technology development, etc. eligible for the application of the special case under paragraph (1) shall be limited to those concerning which the needs for the application of the special case, the details thereof, and the matters prescribed by Presidential Decree are stated in the relevant specialized zone plan.
 Article 49 (Special Cases for State or Public Property)
(1) Any parcel of land located in a specialized zone, owned by the State or a local government, and needed for the relevant specialization project shall not be disposed of for any other use than the purpose stated in the relevant specialized zone plan.
(2) Notwithstanding the State Property Act, the Public Property and Commodity Management Act, or the Special Act for the Promotion of Utilization of Abolished School Properties, the State or any local government may, if necessary for a specialization project, convey any State or public property or any property of an abolished school, by permission for use or use for profit, loan, or sale under a negotiated contract, to the relevant specialization project operator.
(3) The State or any local government may, when it grants permission for the use or use for profit or concludes a contract on loan or sale pursuant to paragraph (2), include a special condition that the contract may be cancelled if the relevant property is not used for a specialization project within an agreed period.
 Article 50 (Special Cases for the Liquor Tax Act)
(1) Notwithstanding Article 6 of the Liquor Tax Act, any farmer or forester, or any producers' association in a specialized zone, that utilizes a local specialty, may obtain a license from the head of the competent tax office for brewing liquor using agricultural products produced by him/herself as main raw materials (hereafter referred to as "local specialty liquor" in this Article).
(2) The standards for facilities necessary for the license for production of local specialty liquor and other requirements shall be prescribed by Presidential Decree.
 Article 51 (Special Cases for the Museum and Art Galley Support Act)
Notwithstanding Article 16 of the Museum and Art Gallery Support Act, persons who establish and operate museums or art galleries as a specialization project may jointly employ a curator, as prescribed by Presidential Decree.
 Article 52 (Special Cases for the Agricultural and Fishery Products Quality Control Act)
Upon receipt of an application for registration of a geographical indication for any agricultural product or processed agricultural product related to a specialization project under Article 32 of the Agricultural Products Quality Control Act, the Minister of Agriculture, Food and Rural Affairs or the Minister of Oceans and Fisheries may first examine the application over other applications.
 Article 53 (Special Cases for the Seed Industry Act)
(1) Notwithstanding Article 37 (1) of the Seed Industry Act, standards for facilities may be otherwise prescribed by Presidential Decree for persons who intend to run seed business in a specialized zone for agriculture.
(2) Notwithstanding the main sentence of Article 37 (2) of the Seed Industry Act, persons who run seed business in a specialized zone for agriculture may jointly employ a seed manager, as prescribed by Presidential Decree.
 Article 54 (Special Cases for the Industrial Cluster Development and Factory Establishment Act)
(1) Notwithstanding the State Property Act, the Public Property and Commodity Management Act, or Article 28-3 (2) of the Industrial Cluster Development and Factory Establishment Act, no lowest limit may be set on the selling price or rent of a knowledge industry center built by the State or a local government for sale in units or for lease, if necessary for a specialization project.
(2) Where it is intended to partition an industrial area (referring to an industrial area where no building exists thereon) for a specialization project, it may be partitioned into areas, each of which is not less than 900 square meters, notwithstanding the former part of Article 39-2 (1) of the Industrial Cluster Development and Factory Establishment Act.
 Article 55 (Special Cases for the Patent Act)
Notwithstanding Article 61 of the Patent Act, the Commissioner of the Korea Intellectual Property Office may authorize examiners to examine patent applications directly related to any specialization project preferentially prior to other patent applications.
 Article 56 (Special Cases for the Act on Special Measures for the Deregulation of Corporate Activities)
Notwithstanding Article 37 or 38 of the Act on Special Measures for the Deregulation of Corporate Activities, the head of any managing agency falling under any subparagraph of Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act in a specialized zone for industry may appoint a technician specializing in air environment or water quality environment on behalf of any business operator who does business in the same industrial complex, etc. as far as joint appointment is allowed.
 Article 57 (Special Cases for the Building Act)
The facilities for outdoor exhibition and photographing among temporary buildings under Article 20 (1) of the Building Act, built in a specialized zone for culture or art, are deemed those subject to the reporting under paragraph (3) of the aforesaid Article.
 Article 58 (Special Cases for the Housing Act)
Notwithstanding Article 54 of the Housing Act, the competent local government of a specialized zone may, if necessary for the relevant specialization project, prescribe exceptional standards for the supply of residential houses by municipal ordinance: Provided, That this shall not apply to an area falling under any of the following subparagraphs:
1. The Special Metropolitan City or a Metropolitan City;
2. An area designated as a high-speculation area pursuant to Article 63 of the Housing Act.
 Article 59 (Special Cases for the Act on Acquisition of and Compensation for Land for Public Works Projects)
(1) If necessary to implement any of the following projects, any specialization project operator may expropriate or use any parcel of land, goods, or rights referred to in any subparagraph of Article 3 of the Act on Acquisition of and Compensation for Land for Public Works Projects (hereafter referred to as "land, etc." in this Article):
1. A project for manufacturing or research and development;
2. A project for developing infrastructure for traffic, environment, and distribution, or logistics;
3. A project for establishing a facility for education, culture, sports, health, medical service, or social welfare;
4. A project for developing a tourist destination or tourism complex;
5. Any other project deemed necessary for fostering a project for specialized regional development and selected by the Minister of SMEs and Startups, upon consultation with the heads of relevant central administrative agencies.
(2) Where any specialization project operator (excluding local governments) intends to expropriate or use land, etc. pursuant to paragraph (1), he/she shall own at least 2/3 of the area of land subject to the relevant project, excluding State land and public land, and shall obtain consent from at least half of all land owners.
(3) Except as otherwise provided for in paragraphs (1) and (2), the Act on Acquisition of and Compensation for Land for Public Works Projects shall apply mutatis mutandis to expropriation and use under paragraph (1).
 Article 60 (Special Cases for the Local Finance Act)
If the head of the competent local government of a specialized zone has obtained approval for a specialized zone plan, he/she may omit the appraisal under 37 of the Local Finance Act on the needs for finance investment projects included in the relevant specialization project that the competent local government of the specialized zone intends to implement, the validity of the business plan, and other relevant matters.
 Article 61 (Special Cases for the Distribution Industry Development Act)
Where necessary for a specialization project, the area of a site necessary for designating a joint collection and delivery center may be set at least 20,000 square meters, notwithstanding Article 29 (1) of the Distribution Industry Development Act.
 Article 62 (Establishment and Submission of Land Use Plans for Specialized Zones)
(1) If necessary to efficiently use land in the relevant specialized zone for the specialization project, the head of any local government applicant shall establish a land use plan for a specialized zone, upon deliberation by the competent Si/Gun/Gu urban planning committee under Article 113 of the National Land Planning and Utilization Act and shall include the plan in the specialized zone plan.
(2) Matters necessary for the method of and the procedure for the establishment of a land use plan for a specialized zone under paragraph (1) shall be prescribed by Presidential Decree.
 Article 63 (Details of Land Use Plans for Specialized Zones)
Each land use plan for a specialized zone shall include the following:
1. A plan for designating or altering specific-use areas or specific-use districts;
2. A plan for establishing, rearranging or improving infrastructure;
3. A plan for designating or altering a fishery resources protection zone;
4. A plan for designating or altering a district unit planning zone or a district unit plan;
5. Any other plan related to land use for implementing a specialization project.
 Article 64 (Urban/Gun Management Plans Deemed Determined)
(1) Approval granted for a specialized zone plan in which a land use plan for the relevant specialized zone is included to the effect that all or part of the specialized zone shall be divided into zones, areas, or blocks for development or land use shall be deemed determined or designation specified in the following subparagraphs in accordance with the details of the specialized zone plan for the zones, areas, or blocks divided in accordance with the land use plan for the specialized zone:
1. Finalization of an urban/Gun management plan under Article 30 of the National Land Planning and Utilization Act (limited to the determination of plans referred to in subparagraphs 1, 2, and 4 of Article 63);
2. Designation or alteration of a fishery resources protection zone under Article 40 of the National Land Planning and Utilization Act;
3. Designation of a tourist destination or tourism complex under Article 52 of the Tourism Promotion Act;
5. Designation of an urban development zone under Article 3 of the Urban Development Act;
7. Designation of an industrial complex under Article 6, 7, 7-2, or 8 of the Industrial Sites and Development Act (limited to cases subject to Article 47).
(2) Notwithstanding Article 54 (1) of the Tourism Promotion Act, where a tourist destination or tourism complex shall be deemed designated pursuant to paragraph (1) 3, the person who prepared the plan to create the relevant tourist destination shall be the head of the competent local government of a specialized zone, and the developer of the relevant tourism complex shall be the specialization project operator specified in the relevant specialized zone plan.
(3) If a specialized zone plan that includes a land use plan for a specialized zone along with any of the following details is approved, with respect to all or part of such specialized zone, any of the following cancellation or alteration shall be deemed effected under the specialized zone plan:
1. Cancellation of a forest conversation zone designated under Article 11 (1) 1 of the Forest Protection Act;
2. Alteration or cancellation of an agriculture promotion area or a specific-use zone designated under Article 31 of the Farmland Act.
(4) If a specialized zone is designated as a regional development project zone pursuant to the Regional Development Assistance Act, the relevant specialized zone plan shall be deemed a regional development project plan under Article 11 (6) of the aforesaid Act, and the project implementer thereof shall be the specialization project operator specified in the specialized zone plan, notwithstanding Article 19 of the aforesaid Act.
 Article 65 (Deemed Authorization or Permission for Specialized Zones)
(1) When a specialized zone plan which includes the land use plan for a specialized zone is approved, the relevant specialization project operator shall be deemed obtained the following authorization, permission, approval, consent, or license, or completed consultation, etc. (hereinafter referred to as "authorization, permission, etc."), and the public notice of the designation of a specialized zone shall be deemed the public notice or public announcement of authorization, permission, etc. under the following relevant Acts:
1. A permission to convert the use of grassland under Article 23 of the Grassland Act;
2. A permission for conversion of a mountainous district under Article 14 of the Mountainous Districts Management Act or reporting on the conversion of a mountainous district under Article 15 of the same Act, and permission for or reporting on temporary use of a mountainous district under Article 15-2 of the aforesaid Act;
3. Permission for or reporting on felling standing timber under Article 36 (1) or (4) of the Creation and Management of Forest Resources Act and permission for or reporting on activities within a forest protection area (excluding forest genetic resources protection zone) under Article 9 (1) and (2) 1 or 2 of the Forest Protection Act;
4. Permission for or consultation on the diversion of farmland under Article 34 of the Farmland Act;
5. Permission for the use of agricultural infrastructure for any purpose other than its original purpose under Article 23 of the Agricultural and Fishing Villages Improvement Act and approval for business plan for a tourism and resort complex in an agricultural or fishing village under Article 82 of the aforesaid Act;
6. Permission for river works under Article 30 of the River Act, permission for occupation and use river under Article 33 of the aforesaid Act, and permission for use of river water under Article 50 of the aforesaid Act;
7. Permission for occupancy and use of public waters under Article 8 of the Public Waters Management and Reclamation Act, authorization of an implementation plan to occupy and use public waters under Article 17 of the aforesaid Act, a reclamation license of public waters under Article 28 of the aforesaid Act, consultation or approval under Article 35 or 36 of the aforesaid Act, and approval for change in the purpose of reclamation under Article 49 (1) 3 of the aforesaid Act;
8. A permission for development activities under Article 56 of the National Land Planning and Utilization Act and designation of urban and Gun planning facility project implementers pursuant to Articles 86 and 88 of the same Act;
9. Approval to change or abolish a road route under Article 21 (2) of the Road Act, permission granted to a person other than road management authorities, to implement road works under Article 36 of the same Act, and a permission to occupy and use a road granted under Article 61 of the same Act;
10. A building permit for a private road under Article 4 of the Private Road Act;
11. Approval for a plan to create a tourist destination or tourism complex under Article 54 of the Tourism Promotion Act and permission to implement a development project under Article 55 of the aforesaid Act;
12. Approval for an implementation plan to develop an agricultural and industrial complex under Article 19 of the Industrial Sites and Development Act;
13. Permission for use under Article 30 of the State Property Act;
15. Authorization for a waterworks project under Article 17, 49, or 50 of the Water Supply and Waterworks Installation Act;
16. Permission for construction or maintenance related to public sewerage system under Article 16 of the Sewerage Act;
17. A permission for lumbering under Article 14 of the Erosion Control Work Act and the cancellation of designation as land of erosion control area Article 20 of the aforesaid Act;
18. A permission for occupancy and use of small river under Article 14 of the Small River Maintenance Act;
19. A permission for land transaction pursuant to Article 11 of the Act on Report on Real Estate Transactions.
(2) Any person who intends to obtain constructive authorization, permission, etc. under paragraph (1) shall submit relevant documents specified by relevant statutes or regulations to the head of the local government applicant.
(3) Documents to be submitted under paragraph (2) and time frames for submission thereof shall be prescribed by Presidential Decree.
(4) If a matter referred to in any subparagraph of paragraph (1) is under the jurisdiction of another administrative agency, the Minister of SMEs and Startups shall first consult with the head of that administrative agency thereon. In such cases, the head of the relevant administrative agency shall not refuse such consultation on any ground, other than the processing guidelines under paragraph (5), and the administrative agency in receipt of a request to consult on approval to change the purpose of reclamation under paragraph (1) 7 shall examine whether to approve such change pursuant to Article 49 (1) through (4) of the Public Waters Management and Reclamation Act.
(5) The head of any central administrative agency who has authority over a matter specified in any subparagraph of paragraph (1) shall, if he/she has the processing guidelines for authorization, permission, etc., notify the Minister of SMEs and Startups thereof. The same shall also apply to any change in the guidelines.
(6) Upon receiving notice of processing guidelines pursuant to paragraph (5), the Minister of SMEs and Startups shall integrate and publicly notify such guidelines.
(7) Article 11 (2) through (4) shall apply mutatis mutandis to constructive authorization, permission, etc. In such cases, the term "specialized zone" shall be construed as "authorization, permission, etc." and the term "designation" as "constructive authorization, permission, etc.," respectively.
 Article 66 (Special Cases for the Installation and Utilization of Sports Facilities Act)
(1) Notwithstanding Article 12 of the Installation and Utilization of Sports Facilities Act, any person who intends to run any sports facility business subject to registration under Article 10 (1) 1 of the aforesaid Act in a specialized zone shall prepare a business plan for approval by the head of the competent local government of a specialized zone. The same shall also apply to any revision to the business plan: Provided, That the same shall not apply to any revision to a business plan for any insignificant matter prescribed by Presidential Decree.
(2) Notwithstanding Article 19 (1) of the Installation and Utilization of Sports Facilities Act, any person who has obtained approval of the head of the competent local government of a specialized zone under paragraph (1) shall register the relevant sports facility business with the head of the competent local government of the specialized zone before the commencement of the business. The same shall also apply to any revision to any registered matter: Provided, That the same shall not apply to any insignificant revision to any registered matter prescribed by Presidential Decree.
(3) Notwithstanding paragraph (2), the head of the competent local government of a specialized zone may, if any person who has obtained approval for a business plan for golf club business or ski resort business, among sports facility business subject to registration under paragraph (1), provide himself/herself with facilities that meet or exceed the scale prescribed by Presidential Decree, accept the registration of the relevant sports facility business on condition that the person shall provide himself/herself with other facilities within the period prescribed by Presidential Decree.
(4) In applying the Installation and Utilization of Sports Facilities Act to any sports facility business operator approved or registered pursuant to paragraphs (1) through (3), the affairs under the jurisdiction of each Mayor/Do Governor with regard to the sports facilities subject to registration under the aforesaid Act shall be deemed the affairs under the jurisdiction of the head of the competent local government of a specialized zone.
 Article 67 (Special Cases for the Livestock Products Sanitary Control Act)
(1) Notwithstanding Article 7 of the Livestock Products Sanitary Control Act, any person who cooks livestock specified and publicly notified by the Minister of Agriculture, Food and Rural Affairs, such as chickens and ducks, in a specialized zone to sell them to consumers may slaughter and process them on his/her own at the place where he/she cooks and sells them.
(2) Standards for the slaughter and processing of livestock under paragraph (1) and other necessary matters shall be prescribed and publicly notified by the Minister of Food and Drug Safety.
(3) Notwithstanding Article 22 of the Livestock Products Sanitary Control Act, any person who intends to run a milk collection business and a livestock processing business (limited to a milk processing business; hereafter the same shall apply in this Article) under Article 21 of the aforesaid Act in a specialized zone for livestock shall obtain permission from the head of the competent local government of a specialized zone.
(4) In applying the Livestock Products Sanitary Control Act to the milk collection business and livestock stock product processing business permitted under paragraph (3), the affairs under the jurisdiction of each Mayor/Do Governor regarding such milk collection business and livestock product processing business under the aforesaid Act shall be deemed the affairs under the jurisdiction of the head of the competent local government of a specialized zone.
 Article 68 (Special Cases for the Food Sanitation Act)
(1) Notwithstanding Article 10 of the Food Sanitation Act, the head of the competent local government of a specialized zone may otherwise prescribe standards for the labeling of foodstuffs produced from the specialization project and provide public notice thereof, if necessary for the specialization project. In such cases, the details that he/she intends to provide public notice of standards for the labeling of foodstuffs shall be included in the relevant specialized zone plan.
(2) Notwithstanding Article 43 of the Food Sanitation Act, the head of the competent local government of a specialized zone may otherwise place restrictions on business hours and business activities of a person who runs a restaurant and his/her employees, if necessary for the specialization project. In such cases, the details of such restrictions on business hours and business activities shall be included in the relevant specialized zone plan.
(3) Where the head of the competent local government of a specialized zone shall have prior consultation with the Minister of Food and Drug Safety where he/she intends to determine, pursuant to paragraphs (1) and (2), any matter falling under subparagraph 1, or with the head of the competent metropolitan local government of a specialized zone where he/she intends to determine any matter falling under subparagraph 2:
1. Standards for labeling of foods;
2. Restrictions on business hours and business activities.
 Article 69 (Special Cases for the Motor Vehicle Management Act)
(1) Notwithstanding Article 25 of the Motor Vehicle Management Act, the head of the competent local government of a specialized zone may issue an order restricting the operation of motor vehicles, subject to prior consultation with the commissioner of the competent regional police agency, if necessary for the specialization project. In such cases, the purposes and duration of restrictions on the operation of motor vehicles, the area subject to restrictions, the details of restrictions, the types of motor vehicles subject to restrictions, and other details shall be included in the relevant specialized zone plan.
(2) Where the head of the competent local government of a specialized zone intends to place restrictions on the operation of motor vehicles pursuant to paragraph (1), he/she shall give prior public announcement of the purposes and duration of such restrictions, the area subject to restrictions, the details of restrictions, the types of motor vehicles subject to restrictions, and other necessary matters.
(3) For the purposes of the Motor Vehicle Management Act with regard to the restrictions on the operation of motor vehicles under paragraph (1), the affairs under the jurisdiction of the Minister of Land, Infrastructure and Transport under the aforementioned Act with regard to restrictions on the operation of motor vehicles shall be deemed affairs under the jurisdiction of the head of the competent local government of a specialized zone, and the affairs under the jurisdiction of the Commissioner General of the National Police Agency shall be deemed affairs under the jurisdiction of the commissioner of each regional police agency.
 Article 70 (Special Cases for the Welfare of Older Persons Act)
(1) Where necessary for a specialization project, the competent local government of a specialized zone may, notwithstanding Article 33 of the Welfare of Older Persons Act, prescribe by municipal ordinance exceptional standards for human resources and the operation of residential welfare facilities for the aged, reporting on installation of such facilities, and the rules by which operators of such facilities shall abide. In such cases, exceptional provisions prescribed by municipal ordinance shall be included in the relevant specialized zone plan.
(2) Notwithstanding Article 33-2 of the Welfare of Older Persons Act, the head of the competent local government of a specialized zone may prescribe and publicly notify the eligibility requirements for admission to residential welfare facilities for the aged under paragraph (1).
 Article 71 (Special Cases for Application of Statutes in Specialized Zones)
The head of the competent local government of a specialized zone may waive the application of the following provisions, if necessary for a specialization project. In such cases, the matters concerning the waived provisions shall be included in the relevant specialized zone plan:
CHAPTER III REGULATION-FREE SPECIAL ZONES
SECTION 1 Designation and Operation of Regulation-Free Special Zones
 Article 72 (Filing Applications for Designation of Regulation-Free Special Zones)
(1) Any Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (excluding the head of a Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act; hereinafter referred to as "Mayor/Do Governor of non-Seoul Metropolitan area") who intends to obtain designation of a regulation-free special zone shall establish a plan for a regulation-free special zone pursuant to Article 74 and file an application for the designation thereof with the Minister of SMEs and Startups.
(2) Except as otherwise provided for in paragraph (1), matters necessary to establish the detailed matters for filing an application for the designation of a regulation-free special zone and procedures therefor and other relevant matters shall be prescribed by Presidential Decree.
 Article 73 (Proposal of Plans for Regulation-Free Special Zones)
(1) Any private enterprise, etc. may propose a plan for a regulation-free special zone to the Mayor/Do Governor of a non-Seoul Metropolitan area having jurisdiction over the relevant area. In such cases, the Mayor/Do Governor of a non-Seoul Metropolitan area shall accept the proposal of the private enterprise, etc. except in extenuating circumstances.
(2) A plan for a regulation-free special zone proposed by a private enterprise, etc. shall include the matters specified in the subparagraphs of Article 74 (1).
 Article 74 (Establishment of Plans for Regulation-Free Special Zones)
(1) The Mayor/Do Governor of a non-Seoul Metropolitan area who intends to apply for the designation of a regulation-free special zone shall establish a plan for a regulation-free special zone including the following matters:
1. The name, location and area of the regulation-free special zone;
2. Needs for and expected effect of designating the regulation-free special zone;
3. Needs for and plans for fostering innovative projects or strategic industries;
4. The project implementer of the regulation-free special zone eligible for the application of the special cases for regulation, etc. by participating in an innovative project, strategic industry, etc.;
5. Special cases for regulation to be applied to the regulation-free special zone and the needs for and scope of the application thereof;
6. Matters concerning "rapid identification of regulation", "special cases for demonstration" and "provisional permission" under Section 2 of Chapter III, and the needs for and scope of the application thereof;
7. Spatial scope eligible for the application of special cases for regulation, etc. referred to in subparagraphs 5 and 6;
8. Matters concerning linkage to the City/Do development plan referred to in Article 7 of the Special Act on Balanced National Development;
9. Plans to stabilize real estate prices in the regulation-free special zone and its neighborhood;
10. Other matters prescribed by Presidential Decree, which are necessary for the application for designation, etc. of the regulation-free special zone.
(2) The Mayor/Do Governor of a non-Seoul Metropolitan area shall make a public announcement of the plan for a regulation-free special zone established pursuant to paragraph (1) for at least 30 days, and hear opinions of residents, enterprises, and the City/Do regional innovation councils, etc. established under Article 28 of the Special Act on Balanced National Development.
 Article 75 (Designation of Regulation-Free Special Zones)
(1) Where receiving an application for designation of a regulation-free special zone under Article 72 (1), the Minister of SMEs and Startups shall notify the details thereof to the heads of relevant central administrative agencies and the Chairperson of the Presidential Committee for Balanced National Development under Article 22 of the Special Act on Balanced National Development (hereinafter referred to as "Chairperson of the Committee for Balanced National Development").
(2) The heads of relevant central administrative agencies and the Chairperson of the Committee for Balanced National Development in receipt of a notification under paragraph (1) shall examine the validity, necessity, etc. of the relevant plan for a regulation-free special zone and reply with the result thereof in writing to the Minister of SMEs and Startups within 30 days: Provided, That where the head of any relevant central administrative agency or the Chairperson of the Committee for Balanced National Development requests the Mayor/Do Governor of a non-Seoul Metropolitan area who has filed the relevant application to supplement data to examine the validity, necessity, etc. of the relevant plan for a regulation-free special zone, the period required to supplement the related data shall not be included in the relevant period.
(3) The Minister of SMEs and Startups shall approve a plan for a regulation-free special zone after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones, taking into account the opinions which the heads of relevant central administrative agencies and the Chairperson of the Committee for Balanced National Development returned pursuant to paragraph (2) and shall designate the regulation-free special zone.
(4) Upon approving a plan for a regulation-free special zone and designating the regulation-free special zone pursuant to paragraph (3), the Minister of SMEs and Startups shall publish notice of the details thereof in the Official Gazette, as prescribed by Presidential Decree, and notify such fact to the Mayor/Do Governor of a non-Seoul Metropolitan area, private enterprise, etc. who has filed the application. In such cases, public notice, etc. of topographical maps shall be subject to Article 8 of the Framework Act on the Regulation of Land Use.
(5) Except as otherwise provided for in paragraphs (1) through (4), matters necessary for the designation, etc. of a regulation-free special zone shall be prescribed by Presidential Decree.
 Article 76 (Designation of Specialized Zones and National Innovation Clusters)
(1) The Minister of SMEs and Startups may hear opinions of the head of the competent local government of a specialized zone or the competent Mayor/Do Governor and recommend him/her to apply for the designation of the relevant specialized zone as a regulation-free special zone for a specialized zone in a non-Seoul Metropolitan area, the operational performance of which has turned out to be outstanding as the result of an evaluation conducted pursuant to Article 24.
(2) Where the Mayor/Do Governor of a non-Seoul Metropolitan area applies for the designation of a regulation-free special zone based on the recommendation under paragraph (1), the Minister of SMEs and Startups may propose such designation as an agenda for deliberation and resolution by the Committee on Regulation-Free Special Zones, taking precedence over other applications.
(3) Where the Mayor/Do Governor of a non-Seoul Metropolitan area applies for the designation of the whole or part of a national innovation cluster designated pursuant to Article 18-2 (2) of the Special Act on Balanced National Development as a regulation-free special zone, the Minister of SMEs and Startups may propose such designation of the whole or part of the relevant national innovation cluster as an agenda for deliberation and resolution by the Committee on Regulation-Free Special Zones, taking precedence over other applications.
(4) Except as otherwise provided for in paragraphs (1) through (3), other necessary matters concerning designation of a specialized zone or a national innovation cluster as a regulation-free special zone shall be prescribed by Presidential Decree.
 Article 77 (Committee on Regulation-Free Special Zones)
(1) The Committee on Regulation-Free Special Zones shall be established to deliberate and resolve on matters concerning approval for plans for regulation-free special zones, designation of regulation-free special zones and other relevant matters.
(2) The Committee on Regulation-Free Special Zones shall be comprised of up to 30 members, including the chairperson.
(3) The Prime Minister shall be the chairperson of the Committee on Regulation-Free Special Zones, the Minister of SMEs and Startups shall be the executive secretary thereof, and the following persons shall be the members thereof:
1. The Minister of Economy and Finance, the Minister of Education, the Minister of Science and ICT, the Minister of Justice, the Minister of the Interior and Safety, the Minister of Culture, Sports and Tourism, the Minister of Agriculture, Food and Rural Affairs, the Minister of Trade Industry and Energy, the Minister of Health and Welfare, the Minister of Environment, the Minister of Land, Infrastructure and Transport, the Minister of Oceans and Fisheries, the Minister of SMEs and Startups, and the heads and public officials in political service of the relevant central administrative agencies prescribed by Presidential Decree;
2. Persons commissioned by the chairperson from among persons with extensive knowledge and experience in regulatory reform, innovative projects, or strategic industries and balanced national development policies;
3. The Ombudsman for small and medium enterprises under Article 22 (3) of the Framework Act on Small and Medium Enterprises;
4. Other persons prescribed by Presidential Decree.
(4) The term of office of the members referred to in paragraph (3) 2 and 4 shall be two years, and consecutive appointment shall be limited to one occasion.
(5) The results of the meeting of the Committee on Regulation-Free Special Zones shall be disclosed: Provided, That they may not be disclosed with the resolution of the Committee on Regulation-Free Special Zones, if deemed necessary.
(6) In deliberating on any special case for regulation, etc. included in a plan for regulation-free special zone or granting any special case for regulation, etc. for a regulation-free special zone, the Committee on Regulation-Free Special Zones shall take into consideration whether or not such special case endangers life, health or safety of the people and hinders environment and balanced regional development, and the safe protection and handling, etc. of personal information.
(7) In order to support the establishment of plans for regulation-free special zones, operation of regulation-free special zones, matters concerning permission, etc. deemed granted, proposal, etc. for new special cases for regulation to be performed by Mayors/Do Governors of a non-Seoul Metropolitan area, the Committee on Regulation-Free Special Zones may request support related thereto from the competent Si/Do regional innovation office established under Article 28 (2) of the Special Act on Balanced National Development, and the relevant Si/Do regional innovation office shall cooperate on such request except in extenuating circumstances.
(8) The Minister of SMEs and Startups may request the heads of relevant central administrative agencies and the Mayor/Do Governor of a non-Seoul Metropolitan area to provide data necessary for deliberation by the Committee on Regulation-Free Special Zones, and the heads of the relevant central administrative agencies and the Mayor/Do Governor of a non-Seoul Metropolitan area in receipt of such request shall comply with such request unless there is good cause.
(9) Except as otherwise provided for in paragraphs (1) through (8), necessary matters concerning the organization and operation of the Committee on Regulation-Free Special Zones shall be prescribed by Presidential Decree.
 Article 78 (Functions of the Committee on Regulation-Free Special Zones)
(1) The Committee on Regulation-Free Special Zones shall deliberate and resolve on the following matters:
1. Matters concerning basic direction-setting for the operation of regulation-free special zones;
2. Matters concerning the approval for plans for regulation-free special zones and the designation, alteration and cancellation of designation of regulation-free special zones;
3. Matters concerning promotion of innovative project or strategic industry;
4. Matters concerning special cases for regulation, etc. for operation of regulation-free special zones and improvement of regulation;
5. Matters concerning the evaluation of operation of regulation-free special zones;
6. Matters concerning the rapid identification of regulation on innovative project, strategic industry, etc. in regulation-free special zones;
7. Matters concerning the grant, alteration, and cancellation of special cases for demonstrations in regulation-free special zones;
8. Matters concerning provisional permission in regulation-free special zones and the cancellation thereof;
9. Matters concerning the coordination of opinions among the heads of the central administrative agencies and the Mayor/Do Governor of a non-Seoul Metropolitan area in relation to a regulation-free special zone;
10. Matters delegated to the Deliberation Committee on Special Cases for Regulation, etc. of Regulation-Free Special Zones;
11. Other matters necessary for the designation and operation of regulation-free special zones.
(2) If necessary, the Committee on Regulation-Free Special Zones may hear opinions of the public officials belonging to the relevant administrative agencies or Cities/Dos on the matters set forth in subparagraphs of paragraph (1).
(3) Where the application of municipal ordinance of any Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province (excluding any Seoul Metropolitan area defined in subparagraph 1 of Article 2 of the Seoul Metropolitan Area Readjustment Planning Act; hereinafter referred to as "City/Do in a non-Seoul Metropolitan area") is deemed obviously unreasonable in the course of promoting an innovative project, strategic industry, etc. in a regulation-free special zone, the Committee on Regulation-Free Special Zones may propose its opinion on the relevant ordinance to the Mayor/Do Governor of the relevant non-Seoul Metropolitan area.
 Article 79 (Deliberation Committee on Special Cases for Regulation, etc. of Regulation-Free Special Zones)
(1) In order to conduct prior examination of the agenda to be proposed to the Committee on Regulation-Free Special Zones and to deliberate on the matters delegated by the Committee on Regulation-Free Special Zones, the Deliberation Committee on Special Cases for Regulation, etc. of Regulation-Free Special Zones (hereinafter referred to as the "Deliberation Committee") shall be established in the Ministry of SMEs and Startups with the Minister of SMEs and Startups as its chairperson and may be required to perform the following functions: Provided, That where the Deliberation Committee performs its duties prescribed in subparagraph 2 or 3, they shall be deemed deliberated and resolved by the Committee on Regulation-Free Special Zone and the result thereof shall be reported to the Committee on Regulation-Free Special Zone:
1. Prior deliberation on the agenda to be proposed to the Committee on Regulation-Free Special Zones, adjustment of conflicts between interested parties, etc.;
2. Deliberation and resolution on replacing the project implementer of a regulation-free special zone and amendment of special cases for regulation, etc. within the scope of the purpose and purport of the designation of a regulation-free zone, after designating the regulation-free zone;
3. Deliberation and resolution on other matters delegated by the Committee on Regulation-Free Special Zones to the Deliberation Committee after adoption of a resolution thereon.
(2) The Minister of SMEs and Startups shall establish the Regulation-Free Special Zone Planning Office under the Ministry of SMEs and Startups to support the affairs of the Committee on Regulation-Free Special Zones and the Deliberation Committee.
(3) If necessary to perform its duties, the Deliberation Committee may request the heads of relevant central administrative agencies, the Mayor/Do Governor of a non-Seoul Metropolitan area, or corporations, organizations, etc. in a non-Seoul Metropolitan area to dispatch public officials or executive officers and employees belonging to them to the Regulation-Free Special Zone Planning Office or to have them concurrently take the office thereof.
(4) The Minister of SMEs and Startups may request the heads of relevant central administrative agencies and the Mayors/Do Governors of non-Seoul Metropolitan areas to provide data necessary for deliberation by the Deliberation Committee, and the heads of the relevant central administrative agencies and the Mayors/Do Governors of non-Seoul Metropolitan areas in receipt of such request shall comply therewith unless there is good cause.
(5) Except as otherwise provided for in paragraphs (1) through (4), necessary matters concerning the organization and operation of the Deliberation Committee and the Regulation-Free Special Zone Planning Office shall be prescribed by Presidential Decree.
 Article 80 (Effects of Designation of Regulation-Free Special Zones)
(1) Regarding a zone designated as a regulation-free special zone pursuant to Article 75 and a project implementer of a regulation-free special zone, special cases for regulation, etc. shall apply as specified in the plan for a regulation-free special zone.
(2) The City/Do having jurisdiction over a regulation-free special zone may prescribe matters necessary for the operation of the regulation-free special zone by its municipal ordinance within the scope that conforms to the plan for a regulation-free special zone.
 Article 81 (Alteration of Designation of Regulation-Free Special Zones)
(1) Where a Mayor/Do Governor having jurisdiction over a regulation-free special zone intends to alter the plan for a regulation-free special zone or the designation of the regulation-free special zone, he/she shall file an application for such alteration with the Minister of SMEs and Startups.
(2) Articles 72 through 75 shall apply mutatis mutandis to the alteration of a plan for a regulation-free special zone and of the designation of a regulation-free special zone under paragraph (1): Provided, That where the Minister of SMEs and Startups intends to alter minor matters prescribed by Presidential Decree, he/she may alter them after consulting with the Mayor/Do Governor having jurisdiction over the regulation-free special zone, without deliberation and resolution thereon by the Committee on Regulation-Free Special Zones.
(3) Special cases for regulation on a plan for a regulation-free special zone altered pursuant to paragraph (2) and special cases for provisional permission, etc. under Section 2 of Chapter III shall begin to apply from the date they are publicly notified pursuant to paragraph (2).
(4) A special case for regulation, etc. that has been applied to a regulation-free special zone shall apply thereto with alterations reflecting the details of the alterations of the plan for a regulation-free special zone and of the designation of a regulation-free special zone under paragraph (2): Provided, That the Minister of SMEs and Startups may continue to apply the relevant special case for regulation, etc. after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones in cases prescribed by Presidential Decree, such as the case where it is extremely impractical to alter the special case for regulation, etc. or there is no practical use.
 Article 82 (Cancellation of Designation of Regulation-Free Special Zones)
(1) Where a regulation-free special zone falls under any of the following circumstances, the competent Mayor/Do Governor of a non-Seoul Metropolitan area may file an application for the cancellation of designation of the relevant regulation-free special zone under his/her jurisdiction with the Minister of SMEs and Startups:
1. If it is impossible or if it is expected to be impossible to achieve the objectives of the designation of the regulation-free special zone;
2. If the application of any special case for regulation or special case for provisional permission, etc. under Section 2 of Chapter III to the relevant regulation-free special zone causes a serious adverse effect;
3. If there is any other ground prescribed by Presidential Decree.
(2) The Minister of SMEs and Startups in receipt of an application under paragraph (1) shall cancel the designation of the regulation-free special zone after consultation with the heads of relevant central administrative agencies and deliberation and resolution thereon by the Committee on Regulation-Free Special Zones.
(3) Without an application for the cancellation of designation of a regulation-free special zone filed by the Mayor/Do Governor of a non-Seoul Metropolitan area has not filed an application, the Minister of SMEs and Startups may directly cancel the designation after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones if the achievements from the its operation has turned out to be poor as the result of an evaluation under Article 83.
(4) Where designation of a regulation-free special zone is cancelled pursuant to paragraph (3), details thereof shall be publicly notified in the Official Gazette, and the Mayor/Do Governor having jurisdiction over the relevant regulation-free zone, private enterprise, etc. shall be notified immediately thereof.
(5) Where designation of a regulation-free special zone is cancelled pursuant to paragraph (2) or (3), special cases for regulation, etc. applied to the relevant regulation-free special zone in accordance with the plan for a regulation-free special zone shall cease to apply: Provided, That the relevant special cases for regulation, etc. may continue to apply after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones in cases prescribed by Presidential Decree, such as the case where it is extremely impractical or there is no practical use to cease to apply the special cases for regulation, etc. or to apply the statutes related to the relevant regulation.
(6) Except as otherwise provided for in paragraphs (1) through (5), necessary matters concerning the cancellation of designation of a regulation-free special zone, such as the method and procedures for applying for the cancellation of designation of a regulation-free zone shall be prescribed by Presidential Decree.
 Article 83 (Evaluation on Operation of Regulation-Free Zones)
(1) The Minister of SMEs and Startups may evaluate the operation of regulation-free special zones regularly or at any time.
(2) If necessary for evaluation under paragraph (1), the Minister of SMEs and Startups may request the heads of relevant central administrative agencies and the Mayors/Do Governors having jurisdiction over regulation-free special zones to submit related data. In such cases, the heads of relevant central administrative agencies and the Mayors/Do Governors having jurisdiction over regulation-free special zones shall comply with such request unless there is good cause.
(3) The Minister of SMEs and Startups shall notify Mayors/Do Governors of the results of the evaluation finalized after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones, and the competent Mayors/Do Governors shall take improvement measures according to the results of the evaluation except in extenuating circumstances.
(4) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the standards, methods, procedures, etc. for the evaluation of operation of regulation-free special zones shall be prescribed by Presidential Decree.
 Article 84 (Post Management)
(1) The Minister of SMEs and Startups shall, in cooperation with the heads of central administrative agencies and local governments (hereinafter referred to as "relevant agencies"), frequently examine the application process of special cases such as provisional permission under Section 2 of Chapter III; and if such special cases give rise to harm to the life or safety of the people or seriously hinder the environment, or if there is any risk to the safe protection, handling, etc. of personal information, he/she shall take necessary reexamination measures such as provision of special cases for the relevant demonstration or cancellation of provisional permission.
(2) Except as otherwise provided for in paragraph (1), matters necessary for the standards, methods, procedures, etc. for the post management of special cases for provisional permission, etc. under Section 2 of Chapter III shall be prescribed by Presidential Decree.
SECTION 2 Special Cases for Provisional Permission for Regulation-Free Special Zones
 Article 85 (Rapid Identification of Regulation)
(1) A person who intends to promote any innovative project, strategic industry, etc. in a regulation-free special zone may request the competent Mayor/Do Governor to check whether it is necessary to obtain any permission, etc. related to the innovative project, strategic industry, etc. (hereinafter referred to as "regulation check").
(2) A Mayor/Do Governor in receipt of a request for regulation check under paragraph (1) may check regulation within the scope of his/her authority; and if any regulation check by the heads of central administrative agencies is deemed necessary, he/she shall submit matters concerning the regulation check to the Minister of SMEs and Startups.
(3) The Minister of SMEs and Startups shall immediately notify the matters received pursuant to paragraph (2) concerning regulation check to the heads of the relevant central administrative agencies.
(4) The heads of each relevant central administrative agency shall reply with his/her opinion on regulation check to the Minister of SMEs and Startups within 30 days from the date a notification is received pursuant to paragraph (3): Provided, That, where he/she requests the requester of the regulation check to supplement any data to examine matters concerning the regulation check, the period required for such supplementation shall not be included in the relevant period.
(5) Where no reply is made within the period prescribed in paragraph (4), it shall be deemed that the relevant matter does not fall under the duties of the relevant central administrative agency or it is not necessary to obtain permission, etc. from the head of the relevant central administrative agency.
(6) Upon receipt of a reply from the head of each relevant central administrative agency pursuant to paragraph (4) (including cases where no reply is received from the head of any relevant central administrative agency within the period prescribed in paragraph (4)), the Minister of SMEs and Startups shall notify the result to the Mayor/Do Governor under paragraph (2), and the Mayor/Do Governor in receipt of such notice shall immediately notify the requester of the regulation check thereof.
(7) Where a deliberation by the Committee on Regulation-Free Special Zones is deemed necessary in such cases where the opinions provided pursuant to paragraph (2) conflict with each other among two or more central administrative agencies, the Minister of SMEs and Startups shall immediately notify the result to the relevant Mayor/Do Governor after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones within 30 days from the date the reply is received pursuant to paragraph (4) (if no reply is received within the period prescribed in paragraph (4), referring to the date on which the period for reply has expired), notwithstanding paragraph (6). In such cases the proviso of paragraph (4) shall apply mutatis mutandis to the period requested for supplementing the data.
(8) The Mayor/Do Governor in receipt of a notification under paragraph (7) shall immediately notify the requester of regulation check thereof.
(9) Except as otherwise provided for in paragraphs (1) through (8), matters necessary for regulation check, etc. shall be prescribed by Presidential Decree.
 Article 86 (Application for Special Cases for Demonstration)
(1) Where any innovative project, strategic industry, etc. falls under any of the following circumstances, a person who intends to conduct testing and verification of a new service or product utilizing a new technology related to the relevant innovative project, strategic industry, etc. (hereinafter referred to as "demonstration") may establish a business plan and request a Mayor/Do Governor having jurisdiction over a regulation-free special zone to grant a special case for demonstration (referred to as “special case for demonstration” hereinafter):
1. If statutes or regulations that serve as grounds for permission, etc. contain no standards, specifications, requirements, etc.;
2. If it is inappropriate to apply the standards, specifications, requirements, etc. provided for in statutes or regulations that serve as grounds for permission, etc.;
3. If it is impossible to apply for permission, etc. under other statutes or regulations.
(2) Where the Mayor/Do Governor having jurisdiction over a regulation-free special zone deems it necessary to grant a special case for demonstration after examining the details of the request filed under paragraph (1), he/she shall file an application for granting a special case for demonstration with the Minister of SMEs and Startups.
(3) Upon receipt of an application under paragraph (2), the Minister of SMEs and Startups shall notify the heads of relevant central administrative agencies thereof, and the heads of the relevant central administrative agencies shall examine the details of the application and reply with the result thereof in writing to the Minister of SMEs and Startups within 30 days: Provided, That where the head of any relevant central administrative agency requests the person who has applied for a special case for demonstration pursuant to paragraph (1) to supplement any data to examine whether or not to grant a special case for demonstration, the period required to supplement the related data shall not be included in the relevant period, and even in such cases, the result of examination shall be replied within 90 days; and if the reply is impossible, the period may be extended up to 30 days on only one occasion.
(4) The Minister of SMEs and Startups may grant a special case for demonstration after deliberation and resolution thereon by the Committee on Regulation-Free Committee taking into account the result of examination, etc. conducted by the heads of relevant central administrative agencies pursuant to paragraph (3). In such cases, the Minister of SMEs and Startups may attach necessary conditions, such as limitations on the area, period and scale, thereto to ensure safety, etc.
(5) The head of a relevant administrative agency or a Mayor/Do Governor having jurisdiction over a regulation-free zone, who is related to a special case for demonstration, may submit his/her opinion on the special case for demonstration to the Committee on Regulation-Free Zones.
(6) The period of validity of a special case for demonstration under paragraph (4) shall be fixed within the limit of two years: Provided, That where statutes or regulations related to matters concerning the special case for demonstration is not improved before the expiration of the period of validity, it may be extended only once within the period of designation of the relevant regulation-free special zone. In such cases, an application for extending the period of validity of the special case for demonstration shall be filed with the Minister of SMEs and Startups through the competent Mayor/Do Governor two months before the expiration of the period of validity.
(7) The Minister of SMEs and Startups shall immediately notify the result under paragraph (4) to each relevant Mayor/Do Governor, and the Mayor/Do Governor in receipt of the notification shall immediately notify such result to the person who has filed the request pursuant to paragraph (1).
(8) Except as otherwise provided for in paragraphs (1) through (7), matters necessary for the methods of filing an application for a special case for demonstration, standards and procedures for examination, etc. shall be prescribed by Presidential Decree.
 Article 87 (Management of Special Cases for Demonstration)
(1) The Minister of SMEs and Startups, the head of each relevant central administrative agency, and the Mayor/Do Governor having jurisdiction over a regulation-free special zone shall jointly manage and supervise the demonstration-related activities of a person who intends to conduct a demonstration by being granted a special case for demonstration pursuant to Article 86 (4) (hereinafter referred to as "business operator presenting demonstration").
(2) The Minister of SMEs and Startups, the head of each relevant central administrative agency, and the Mayor/Do Governor having jurisdiction over a regulation-free special zone may conduct testing and inspections or request any institution or organization having professional personnel and technologies prescribed by Presidential Decree to conduct testing and inspections to manage special cases for demonstration.
(3) The head of each relevant central administrative agency, the Mayor/Do Governor having jurisdiction over a regulation-free special zone, and each business operator presenting demonstration shall inform the details of the facts and period of validity of a special case for demonstration, relevant innovative project, strategic industry, etc., so that users of a new product or service may easily have knowledge thereabout, and shall proactively respond to such matters as any harm to the life or safety of the people, hindrance to environment, and risk to the safe protection, handling, etc. of personal information,
(4) If the safety, etc. of a new service or product using new technology is verified as a result of an inspection conducted pursuant to paragraph (2) or by a method prescribed by Presidential Decree before the expiration of the period of validity of a special case for demonstration under Article 86 (6), the head of the relevant central administrative agency shall improve statutes or regulations that serve as grounds for permission, etc. for relevant innovative project, strategic industry, etc. In such cases, matters necessary for the prompt improvement of the statutes or regulations that serve as grounds for permission, etc. shall be prescribed by Presidential Decree.
(5) Where statutes or regulations that serve as grounds for permission, etc. for the relevant innovative project, strategic industry, etc. is established, the business operator presenting demonstration shall obtain permission, etc. pursuant to the such statutes or regulations without delay.
(6) If it is deemed necessary to improve statutes or regulations, etc. even before the expiration of the validity period of a special case for demonstration or the necessity to improve statutes or regulations are proven as a result of applying a special case for demonstration pursuant to paragraph (7), the State and local governments shall commence the improvement of the statutes or regulations.
(7) A business operator presenting demonstration shall submit the result of application of the relevant special case for demonstration to the Minister of SMEs and Startups, the head of each relevant central administrative agency, and the competent Mayor/Do Governor within 30 days from the expiration date of the validity period of the special case for demonstration.
(8) The Minister of SMEs and Startups and the head of each relevant central administrative agency may disclose the result of application of a special case for demonstration under paragraph (7) to invigorate innovative project, strategic industry, etc.
(9) Except as otherwise provided for in paragraphs (1) through (8), matters necessary for the management, etc. of special cases for demonstration, etc. shall be prescribed by Presidential Decree.
 Article 88 (Compensation for Damage from Special Cases for Demonstration)
(1) A business operator presenting demonstration shall be liable to compensate for any personal or material damage caused to users due to his/her business utilizing the relevant special case for demonstration: Provided, That the same shall not apply where the business operator presenting demonstration proves that it has been caused without any deliberation or any negligence.
(2) In order to guarantee the liability for compensation for damage under paragraph (1), each business operator presenting demonstration shall purchase liability insurance with the person designated by the Minister of SMEs and Startups as the insured, as prescribed by Presidential Decree, before utilizing a special case for demonstration: Provided, That, if it is difficult for a business operator presenting demonstration to purchase liability insurance, he/she shall, after a separate consultation with the Mayor/Do Governor having jurisdiction over the regulation-free special zone, prepare compensation measures for personal and material damage that may occur due to the special case for demonstration.
 Article 89 (Cancellation of Special Cases for Demonstration)
(1) Where a person to whom a special case for demonstration is applied falls under any of the following circumstances, the Mayor/Do Governor having jurisdiction over the regulation-free special zone shall file an application with the Minister of SMEs and Startups to cancel the application of the relevant special case for demonstration:
1. If the special case for demonstration is applied by fraud or other improper means;
2. If the conditions referred to in Article 86 (4) is not fulfilled;
3. If the criteria for examination referred to in Article 86 (8) are not satisfied;
4. If it is deemed obviously impossible to attain the purpose of the special case for demonstration;
5. Other cases that fall under any ground prescribed by Presidential Decree.
(2) Where a business operator presenting demonstration falls under any subparagraph of paragraph (1), the Minister of SMEs and Startups may cancel a special case for demonstration after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones. In such cases, the Minister of SMEs and Startups shall notify his/her decision to the Mayor/Do Governor having jurisdiction over the regulation-free special zone, and the Mayor/Do Governor having jurisdiction over the regulation-free special zone shall immediately notify the same to the relevant private enterprise, etc.
(3) A person against whom application of a special case for demonstration is cancelled pursuant to paragraph (1) or (2) shall immediately suspend the relevant innovative project, strategic industry, etc. related to the grant of the special case for demonstration.
 Article 90 (Application for Provisional Permission)
(1) Where it is difficult for a person who intends to execute an innovative project, strategic industry, etc. for the purpose of market release to obtain permission, etc. under statutes or regulations because the relevant innovative project, strategic industry, etc. falls under any of the following circumstances, he/she may request an application for provisional permission from the Mayor/Do Governor having jurisdiction over the regulation-free special zone. In such cases, data for verifying the safety, etc. of the innovative project, strategic industry, etc. shall be accompanied thereto:
1. If the statutes or regulations that serve as grounds for permission, etc. contain no criteria, standards, requirements, etc.;
2. If it is inappropriate to apply the criteria, standards, requirements, etc. provided for in the statutes or regulations that serve as grounds for permission, etc.
(2) Where the Mayor/Do Governor having jurisdiction over a regulation-free special zone deems it necessary to grant provisional permission after examining the details of the request under paragraph (1), he/she shall file an application for granting provisional permission with the Minister of SMEs and Startups.
(3) Upon receipt of an application under paragraph (2), the Minister of SMEs and Startups shall notify the head of each relevant central administrative agency thereof.
(4) Upon receipt of a notification under paragraph (3), the head of each relevant central administrative agency shall examine the safety, necessity, etc. of the relevant provisional permission and reply with the result thereof in writing to the Minister of SMEs and Startups within 30 days: Provided, That where the head of any relevant central administrative agency requests the person who has applied for the provisional permission pursuant to paragraph (1) to supplement any data to examine whether or not to grant provisional permission, the period required to supplement the related data shall not be included in the relevant period, and even in such cases, the reply for the examination results shall be made within 90 days; and if the reply is impossible, the period may be extended up to 30 days on only one occasion.
(5) The Minister of SMEs and Startups may grant provisional permission after deliberation and resolution thereon by the Committee on Regulation-Free Committee, taking into account the opinions, etc. of the heads of relevant central administrative agencies pursuant to paragraph (4).
(6) The Minister of SMEs and Startups may attach necessary conditions to the provisional permission referred to in paragraph (5) to ensure safety, etc., if necessary.
(7) The Minister of SMEs and Startups shall immediately notify the result under paragraph (5) to the relevant Mayor/Do Governor, and the relevant Mayor/Do Governor shall immediately notify such result to the person who has made the request pursuant to paragraph (1).
(8) The validity period of provisional permission shall be fixed within the limit of two years: Provided, That where statutes or regulations that serve as grounds for permission, etc. for an innovative project, strategic industry, etc. which is subject to the provisional permission is not improved before the expiration of the validity period, the Minister of SMEs and Startups may extend it on one occasion up to two years. In such cases, a person who intends to obtain extension of the validity period shall file an application therefor with the Minister of SMEs and Startups through the competent Mayor/Do Governor at least two months before the expiration of the period of validity.
(9) The head of each central administrative agency related to an innovative project, strategic industry, etc. which is subject to provisional permission shall, before the expiration of the validity period of provisional permission under paragraph (8), improve statutes or regulations that serve as grounds for permission, etc. of the relevant innovative project, strategic industry, etc.; and if the improvement of the statutes or regulations that serve as grounds for permission, etc. is not completed before the expiration of the validity period of the provisional permission extended pursuant to paragraph (8), the validity period shall be deemed extended until the completion of the improvement of the statutes or regulations.
(10) Where statutes or regulations that serve as grounds for permission, etc. of the relevant innovative project, strategic industry, etc. are established, a person who has received provisional permission shall obtain permission, etc. without delay pursuant to such statutes or regulations.
(11) A person who intends to execute the relevant innovative project, strategic industry, etc. with provisional permission shall be liable to compensate for any personal or material damage caused thereby: Provided, That the same shall not apply where the person who has obtained provisional permission proves that it has been caused without any deliberation or negligence.
(12) In order to guarantee the liability for compensation for damage under paragraph (11), a person who has obtained provisional permission shall purchase liability insurance which makes the person designated by the Minister of SMEs and Startups as the insured, as prescribed by Presidential Decree: Provided, That, if it is difficult for a person who has obtained provisional permission to purchase liability insurance, he/she shall, after a separate consultation with the Mayor/Do Governor having jurisdiction over the regulation-free special zone, prepare compensation measures for personal and material damage that may occur due to the provisional permission.
(13) The head of a relevant agency related to provisional permission shall have public officials under his/her authority participate in the evaluation process of the provisional permission and may submit his/her opinion on the provisional permission to the Committee on Regulation-Free Special Zones.
(14) Except as otherwise provided for in paragraphs (1) through (3), matters necessary for the procedures, methods, etc. of provisional permission shall be prescribed by Presidential Decree.
 Article 91 (Cancellation of Provisional Permission)
(1) In any of the following cases, the Mayor/Do Governor having jurisdiction over the regulation-free special zone may file an application with the Minister of SMEs and Startups to cancel provisional permission: Provided, That in cases falling under subparagraph 1 or 3, he/she shall cancel provisional permission:
1. Where the provisional permission is obtained by fraud or other improper means;
2. Where the conditions referred to in Article 90 (6) are not fulfilled;
3. Where any problem of safety, etc. is deemed to occur after applying the provisional permission;
4. Other cases that fall under the grounds prescribed by Presidential Decree.
(2) Where a person who has obtained provisional permission pursuant to Article 90 (5) falls under any subparagraph of paragraph (1), the Minister of SMEs and Startups may cancel the provisional permission after deliberation and resolution thereon by the Committee on Regulation-Free Special Zones. In such cases, the Minister of SMEs and Startups shall notify his/her decision thereon to the Mayor/Do Governor having jurisdiction over the regulation-free special zone, and the Mayor/Do Governor having jurisdiction over the regulation-free special zone shall immediately notify the same to the relevant private enterprise, etc.
(3) A person against whom provisional permission is cancelled pursuant to paragraph (1) or (2) shall immediately suspend the relevant business activities.
SECTION 3 Special Cases for Regulation on Regulation-Free Special Zones
 Article 92 (Special Cases for the Special Act on Promotion of Special Research and Development Zones)
(1) In cases of establishing a research-based spin-off company under Article 9-3 of the Special Act on Promotion of Special Research and Development Zones in a special research and development zone defined in subparagraph 1 of Article 2 of the same Act (hereafter referred to as "special research and development zone" in this Article) in a regulation-free special zone for an innovative project or strategic industry, the holding ratio of the stocks of the relevant research-based spin-off company may be exceptionally prescribed by Presidential Decree, notwithstanding Article 9-3 (3) 1 of the same Act.
(2) In order to promote an innovative project or strategic industry in a special research and development zone located in a regulation-free special zone, notwithstanding Article 9-5 (2) of the Special Act on Promotion of Special Research and Development Zones, the period of leave of absence of a researcher of a public research institute under paragraph (1) of the same Article may be set not exceeding five years. In such cases, the period may be extended for five years with permission from the head of the institute to which the researcher belongs.
(3) In order to promote an innovative project or strategic industry in a special research and development zone located in a regulation-free special zone, the types of buildings permissible to be constructed shall be exceptionally prescribed by Presidential Decree, notwithstanding Article 36 of the Special Act on Promotion of Special Research and Development Zones.
 Article 93 (Special Cases for the Building Act)
(1) Notwithstanding Article 69 (1) 2 of the Building Act, the Mayor/Do Governor of a non-Seoul Metropolitan area may designate part of a regulation-free special zone (excluding cases falling under any subparagraph of paragraph (2) of the same Article) as a special building zone for an innovative project or strategic industry.
(2) Articles 69 through 77 shall apply mutatis mutandis to the designation of a special building zone under paragraph (1), the procedures therefor, and other relevant matters.
(3) For the purpose of an innovative project or strategic industry, notwithstanding Article 84 of the Building Act, the standards for calculation of the building area of a factory (limited to a factory located in a regulation-free special zone) with a protruded part, such as eaves and sunshades, shall be exceptionally prescribed by Presidential Decree.
 Article 94 (Special Cases for the Act on the Development of Exhibition Industry)
Where an implementing authority under Article 4 of the Act on the Development of Exhibition Industry intends to erect an exhibition facility (referring to an exhibition facility defined in subparagraph 4 of Article 2 of the same Act; and limited to cases where it is erected in a regulation-free special zone) requiring funding by the central government or a local government in relation to an innovative project or strategic industry in a regulation-free special zone, procedures for prior consultation with the Ministry of Trade, Industry and Energy on the plan for the erection of the exhibition facility may be omitted, notwithstanding Article 11 (1) of the same Act.
 Article 95 (Special Cases for Preliminary Feasibility Surveys)
(1) Where a detailed project plan, including the purpose, scale and promotion plan of the project was established among new projects (limited to projects implemented in a regulation-free special zone) and where the Committee on Regulation-Free Special Zones deliberated and resolved on the established detailed project plan, the Minister of Economy and Finance shall process a preliminary feasibility study under Article 38 (1) of the National Finance Act by shortening the period as much as possible to invigorate projects related to an innovative project, strategic industry, or any project related thereto in a regulation-free special zone.
(2) Where a detailed project plan, including the purpose, scale and promotion plan of the project was established among new investment projects or capital investment (limited to projects or capital investment implemented in a regulation-free special zone) executed in relation to an innovative project or strategic industry in a regulation-free special zone and where the Committee on Regulation-Free Special Zones deliberated and resolved on the established detailed project plan, the head of the competent public institution shall process a preliminary feasibility study under Article 40 (3) of the Act on the Management of Public Institutions by shortening the period as much as possible.
 Article 96 (Special Cases for Tax Support and Reduction or Exemption of Charges)
(1) The State and local governments may reduce or exempt tax to promote an innovative project or strategic industry in regulation-free special zones.
(2) If necessary to promote an innovative project or strategic industry in a regulation-free special zone, the State or a local government may reduce or exempt the following charges for the project implementer of a regulation-free special zone in the relevant regulation-free special zone, as prescribed by the relevant statutes:
1. Development charges under the Restitution of Development Gains Act;
2. Farmland preservation charges under Article 38 of the Farmland Act;
3. Charges on intercity transport facilities under the Special Act on the Management of Intercity Transport in Metropolitan Areas;
4. Costs incurred in forming substitute grassland under Article 23 (8) of the Grassland Act;
5. Expenses incurred in creating forest replacement resources under Article 19 of the Mountainous Districts Management Act;
6. Cooperation charges for ecosystem conservation under Article 46 of the Natural Environment Conservation Act;
7. Occupancy or use fees of pubic waters under Article 13 of the Public Waters Management and Reclamation Act;
8. Fees for occupation of a river and fees for using river water under the River Act.
 Article 97 (Financial Support)
If necessary to promote an innovative project or strategic industry in a regulation-free zone, the State and a local government may provide financial support within budgetary limits.
 Article 98 (Special Cases for Authorization and Permission)
(1) Special cases for authorization and permission procedures under Articles 99 through 107 shall apply to procedures for the designation or alteration of any of the following projects or the establishment, approval or modification of a development plan of the relevant project, a plan for a regional development project or its execution plan, creation plan, etc. (hereinafter referred to as "authorization or permission of a project"). In such cases, projects subject to the application thereof shall be limited to those included in the approved plan for a regulation-free special zone, the necessity of which is acknowledged by the head of each relevant central administrative agency:
1. A regional development project zone defined in subparagraph 2 of Article 2 of the Regional Development Assistance Act or a leading investment district defined in subparagraph 4 of the same Article;
2. An urban development zone defined in Article 2 (1) 1 of the Urban Development Act;
3. A tourist designation defined in subparagraph 6 of Article 2 of the Tourism Promotion Act or a tourism complex defined in subparagraph 7 of the same Article;
4. A logistics complex defined in subparagraph 6 of Article 2 of the Act on the Development and Management of Logistics Facilities;
5. An industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act (including any industrial complex to be created under the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes);
6. A district-unit planning zone under subparagraph 4 (e) of Article 2 of the National Land Planning and Utilization Act;
7. A development project prescribed by Presidential Decree other than the projects specified in subparagraphs 1 through 6.
(2) Matters other than those prescribed by this Act in relation to the procedures for authorization and permission of projects under subparagraphs of paragraph (1) shall be governed by the provisions of the statutes concerning the relevant development project.
 Article 99 (Integrated Deliberation Committee)
In order to deliberate on the following matters related to the procedures for the authorization and permission of projects under the subparagraphs of Article 98 (1), the Central Integrated Deliberation Committee and a regional integrated deliberation committee shall be established in the Ministry of Land, Infrastructure and Transport and each City/Do, respectively:
1. Matters related to the authorization and permission of projects specified in the subparagraphs of Article 98 (1);
2. Matters concerning the coordination of different opinions of relevant administrative agencies;
3. Other matters deemed necessary and referred to the Committee by the designation authorities of projects specified in the subparagraphs of Article 98 (1) (referring to persons who designate such projects pursuant to the Acts referred to in the subparagraphs of Article 98 (1); hereinafter the same shall apply).
 Article 100 (Application mutatis mutandis of the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes)
Articles 6 (2) through (7), 9 through 11 and 16 of the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes shall apply mutatis mutandis to the procedures for the authorization and permission of projects specified in the subparagraphs of Article 98 (1). In such cases, the "central industrial complex planning deliberation committee" shall be construed as the "Central Integrated Deliberation Committee", "regional industrial complex planning deliberation committee" as "regional integrated deliberation committee", "industrial complex development project" as "project under each subparagraph of Article 98 (1), "industrial complex" as "project zone or complex under each subparagraph of Article 98 (1)", "industrial complex plan" as "development plan, regional development project plan or execution plan, creation plan, etc. of a project under each subparagraph of Article 98 (1), "pursuant to the proviso of Article 8 (3), with the exception of its subparagraphs" as "pursuant to the Acts referred to in each subparagraph of Article 98 (1)", "project operator under Article 8 (1)" as "project implementer under the Acts referred to in each subparagraph of Article 98 (1), and "pursuant to Article 8 (2)" as "pursuant to the Acts referred to in each subparagraph of Article 98 (1)"
 Article 101 (Deliberation by Integrated Deliberation Committees)
(1) For the purpose of the authorization or permission of a project under the subparagraphs of Article 98 (1), the Minister of Land, Infrastructure and Transport may seek for a deliberation by the Central Integrated Deliberation Committee, and a Mayor/Do Governor or the head of a Si/Gun/Gu by the competent regional integrated deliberation committee.
(2) A project implementer may submit a final written opinion to the Central Integrated Deliberation Committee or a regional integrated deliberation committee, and the Central Integrated Deliberation Committee or the regional integrated deliberation committee shall deliberate on whether to grant approval by comprehensively reviewing matters concerning the authorization and permission of the project under any subparagraph of Article 98 (1) and final written opinion of the project implementer including others.
(3) Where deliberation by the Central Integrated Deliberation Committee or a regional integrated deliberation committee is conducted, it shall be deemed that the deliberation by the following committees or commissions is conducted:
1. A regional development coordination committee under the Regional Development Assistance Act;
2. A subcommittee on logistics facilities under Article 19 (1) 2 of the Framework Act on Logistics Policies or a regional logistics policies committee under Article 20 of the same Act;
3. The Committee for Deliberation on Industrial Location Policy under the Industrial Sites and Development Act;
4. An urban planning committee under the National Land Planning and Utilization Act;
5. A traffic impact assessment deliberation committee under the Urban Traffic Improvement Promotion Act;
6. The committee for prior deliberation on factors influencing disasters under the Countermeasures against Natural Disasters Act;
7. A committee with the authority to deliberate on energy use plans under the Energy Use Rationalization Act;
8. The National Transport Commission under the National Transport System Efficiency Act;
9. A mountainous district management committee under the Mountainous Districts Management Act;
10. A landscape committee under the Landscape Act.
 Article 102 (Special Cases for Application of the Environmental Impact Assessment Act)
(1) Notwithstanding Article 18 (1) of the Environmental Impact Assessment Act, the head of an administrative agency in receipt of a request for consultation on a strategic environmental impact assessment for authorization or permission of a project specified in the subparagraphs of Article 98 (1) shall notify the designation authority of his/her opinion about the consultation on the strategic environmental impact assessment. within 30 days from the date the request for consultation is received.
(2) Notwithstanding Article 29 of the Environmental Impact Assessment Act, the head of an administrative agency in receipt of a request for consultation on an environmental impact assessment report for authorization or permission of a project specified in the subparagraphs of Article 98 (1) shall notify the designation authority of his/her opinion about the consultation on the environmental impact assessment report within 45 days from the date the environmental impact assessment report is accepted.
(3) When computing the consultation periods referred to in paragraphs (1) or (2), the head of a consulting agency may request the designation authority or the project implementer to supplement relevant documents only once in cases falling under any ground prescribed by Presidential Decree, and the period for supplementation of the relevant documents by the designation authority or the project implementer shall not be included in the consultation period: Provided, That where any resupplementation is requested because it is difficult to hold a consultation due to any critical inadequacy of the same matters that need supplementation, such request shall not be counted as the number of times the supplementation is requested.
(4) Where a designation authority conducts a strategic environmental impact assessment or environmental impact assessment under the Environmental Impact Assessment Act, it may survey the environmental impact caused by the relevant project not more than twice a year, in consultation with the head of a consulting agency.
 Article 103 (Special Cases for Application of the Public Waters Management and Reclamation Act)
(1) When authorization or permission of a project is publicly notified pursuant to provisions of any Act referred to in the subparagraphs of Article 98 (1) (limited to cases where consultations have been held with the heads of relevant agencies), it shall be deemed that a basic plan for reclamation of public waters has been formulated or revised pursuant to Article 22 or 27 of the Public Waters Management and Reclamation Act.
(2) A designation authority that intends to grant authorization or permission of a project specified in the subparagraphs of Article 98 (1) including the details of the formulation or revision of a basic plan for reclamation of public waters under paragraph (1) (limited to cases where consultations have been held with the heads of relevant agencies) shall consult with the Minister of the Oceans and Fisheries.
 Article 104 (Special Cases for Application of the National Transport System Efficiency Act)
Notwithstanding Article 38 (1) of the National Transport System Efficiency Act, the relevant project implementer under each subparagraph of Article 98 (1) may formulate measures for establishing connected transport systems and submit them to the heads of relevant administrative agencies referred to in Article 4 of the same Act.
 Article 105 (Special Cases for Application of the Water Supply and Waterworks Installation Act)
When authorization or permission of a project is publicly notified pursuant to provisions of any Act referred to in the subparagraphs of Article 98 (1) (limited to cases where consultations have been held with the heads of relevant agencies), it shall be deemed that a basic plan for waterworks installation and management has been formulated or revised pursuant to Article 4 of the Water Supply and Waterworks Installation Act and approval thereof has been obtained from the Minister of Land, Infrastructure and Transport and the Minister of Environment: Provided, That in order to apply the special case provided for in the main sentence, the Minister of SMEs and Startups shall consult with the heads of relevant administrative agencies in relation to the formulation of and revision in the basic plan for waterworks installation and management.
 Article 106 (Special Cases for Application of the Sewerage Act)
When authorization or permission of a project is publicly notified pursuant to the provisions of any Act referred to in the subparagraphs of Article 98 (1) (limited to cases where consultations have been held with the heads of relevant agencies), it shall be deemed that a framework plan for sewerage maintenance has been formulated or revised pursuant to Article 5 or 6 of the Sewerage Act and approval thereof has been obtained from the Minister of Environment: Provided, That in order to apply the exception for a special case provided for in the main sentence, the Minister of SMEs and Startups shall consult with the heads of Minister of Environment in relation to the formulation and revision of the framework plan for sewerage maintenance.
 Article 107 (Special Cases for Application of the Landscape Act)
When authorization or permission of a project is publicly notified pursuant to the provisions of any Act referred to in the subparagraphs of Article 98 (1) (limited to cases where consultations have been held with the heads of relevant agencies), it shall be deemed that a landscape plan has been formulated or revised pursuant to Article 7 of the Landscape Act.
 Article 108 (Special Cases for the Act on Special Measures for Designation and Management of Development Restriction Zones)
Notwithstanding Article 4 of the Act on Special Measures for Designation and Management of Development Restriction Zones, the project implementer of a regulation-free special zone in the relevant regulation-free special zone may pay charges for the preservation of development restriction zones under Article 21 of the same Act without submitting a plan for reinstating a damaged area.
 Article 109 (Special Cases for the Special Act on the Management of Intercity Transport in Metropolitan Areas)
(1) Where an innovative project, strategic industry, etc. in a regulation-free special zone falls under a large-scale development project under Article 7-2 (1) of the Special Act on the Management of Intercity Transport in Metropolitan Areas, the Minister of Land, Infrastructure and Transport may establish measures to improve intercity transport. In such cases, he/she may require the project implementer of the relevant regulation-free special zone to submit opinions on the establishment of measures to improve intercity transport.
(2) When establishing measures to improve intercity transport under paragraph (1), the Minister of Land, Infrastructure and Transport shall finalize such measures after hearing the opinion of the Mayor/Do Governor having jurisdiction over the regulation-free special zone and notify the relevant Mayor/Do Governor thereof.
(3) A Mayor/Do Governor having jurisdiction over a regulation-free special zone shall submit his/her opinion within 30 days from the date he/she receives a request for the opinion under paragraph (2); and if he/she fails to submit his/her opinion within such period, he/she shall be deemed to have no opinion.
 Article 110 (Special Cases for the Industrial Sites and Development Act)
(1) In cases of an urban high-tech industrial complex (referring to an urban high-tech industrial complex defined in subparagraph 8 (c) of Article 2 of the Industrial Sites and Development Act) to be created in a regulation-free special zone, the ratio that a complex site (referring to a complex site defined in subparagraph 7-3 of Article 2 of the same Act) in which the area for industrial facilities is at least 50/100 occupies in the area of the relevant industrial complex supplied at a cost, may be exceptionally prescribed by Presidential Decree, notwithstanding Article 6 (8) of the same Act.
(2) Where any authority designating industrial complexes under Article 8-2 (1) of the Industrial Sites and Development Act intends to designate an industrial complex in a regulation-free zone of a local government in which the designation of an industrial complex is restricted pursuant to the main sentence of the same paragraph, with the exception of its subparagraphs, the methods of confirming demand for occupancy may be exceptionally prescribed by Presidential Decree, notwithstanding subparagraph 2 of the same paragraph.
(3) In cases of an industrial complex (referring to an industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act) to be created in a regulation-free special zone, an authority designating industrial complexes under the same Act may establish or revise or grant approval of an industrial complex development plan or grant approval of an industrial complex development implementation plan (including approval for the revision thereof) so that aircraft maintenance service defined in subparagraph 17 (a) of Article 2 of the Aviation Business Act can relocate into a site for industrial facilities in the industrial complex, notwithstanding subparagraph 7-2 of Article 2 of the Industrial Sites and Development Act.
 Article 111 (Special Cases for Period for Approval of Industrial Complexes)
Where an industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act is intended to be created pursuant to the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes to promote any innovative project or strategic industry in a regulation-free special zone, the period set for approval under Article 16 (1) of the Act on Special Cases concerning the Simplification of Authorization and Permission Procedures for Industrial Complexes shall be four months.
 Article 112 (Special Cases for the Act on the Operation of Local Government-Invested or -Funded Institutions)
Where a local government promotes a project for creating an industrial complex defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act in a regulation-free special zone by jointly establishing a stock company pursuant to Article 4 (1) of the Act on the Operation of Local Government-Invested or -Funded Institutions, if the local government has publicly invited a company that would jointly invest in the relevant stock company, the contract between the relevant stock company and the company investing in the stock company may be concluded by a negotiated contract, notwithstanding Article 17 (5) of the Act on the Operation of Local Government-Invested or -Funded Institutions.
 Article 113 (Application Mutatis Mutandis)
Articles 10, 20, 21, 28 through 37, 40, 41, and 43 through 71 shall apply mutatis mutandis to regulation-free special zones. In such cases, "specialized zone" shall be construed as "regulation-free special zone", "specialized zone plan" as "plan for a regulation-free special zone", "land use plan for a specialized zone" as "land use plan for a regulation-free special zone", "specialization project" as "innovative project, strategic industry, etc.", "competent local government of a specialized zone" as "City/Do", "head of the competent local government of a specialized zone" as "Mayor/Do Governor", and "Specialized Zone Committee" as "Committee on Regulation-Free Specialized Zones"
 Article 114 (Special Cases for the Motor Vehicle Management Act)
(1) Where a person who intends to operate an autonomous driving motor vehicle for testing and research purpose in relation to an innovative project or strategic industry in a regulation-free special zone, the Mayor/Do Governor of a non-Seoul Metropolitan area may grant permission for temporary operation if he/she fulfills the requirements for safe operation prescribed by municipal ordinance of the relevant City/Do, notwithstanding the proviso of Article 27 (1) of the Motor Vehicle Management Act.
(2) Where municipal ordinance of a City/Do for temporary operation under paragraph (1) is intended to be enacted or amended, the details thereof shall be consulted on with the Minister of Land, Infrastructure and Transport in advance, and a Mayor/Do Governor in receipt of an application for permission for temporary operation shall permit the operation and issue a temporary operation permit and a temporary operation permit license plate, as prescribed by municipal ordinance of the City/Do.
 Article 115 (Special Cases for the Act on the Protection and Use of Location Information)
The Act on the Protection and Use of Location Information and the Act on Promotion of Information and Communications Network Utilization and Information Protection shall not apply where personal information and location information are collected through an automatic collection device using the Internet address of electronic equipment of an autonomous driving motor vehicle related to an innovative project or strategic industry in a regulation-free special zone and measures that make it impossible to identify a specific individual (hereinafter referred to as "de-identification") are taken by deleting or replacing all or part of personal information through deletion of data value, total processing, categorization, data masking, etc.
 Article 116 (Special Cases for the High-Pressure Gas Safety Control Act)
Notwithstanding Article 18-3 (1) of the High-Pressure Gas Safety Control Act, a quality inspection institution for high-pressure gases may be exceptionally prescribed by Presidential Decree to expand supply of environment-friendly motor vehicles in relation to an innovative project or strategic industry in a regulation-free special zone.
 Article 117 (Special Cases for the Road Act)
Notwithstanding Article 61 (2) of the Road Act, a road management authority may exceptionally make a determination, by Presidential Decree, on granting permission to occupy a road involving excavation of a road for hydrogen pipes in relation to an innovative project or strategic industry in a regulation-free special zone.
 Article 118 (Special Cases for the Act on Promotion of Information and Communications Network Utilization and Information Protection)
(1) In relation to an innovative project or strategic industry in a regulation-free special zone, Articles 24 and 24-2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection shall not apply where the project implementer of a regulation-free special zone, among the providers of information and communications services defined in subparagraph 3 of Article 2 of the same Act, de-identifies personal information defined in subparagraph 6 of Article 2 of the same Act collected through the base of Internet of things installed in a regulation-free special zone.
(2) Where any personal information is formed in the course of using de-identified information, the project implementer of a regulation-free special zone under paragraph (1) shall destroy it or take additional measures for de-identification without delay.
(3) Articles 24 and 24-2 of the Act on Promotion of Information and Communications Network Utilization and Information Protection shall apply to those who violate paragraph (2).
(4) Except as otherwise provided for in paragraphs (1) through (3), necessary matters, such as methods of designating and managing the project implementer of a regulation-free zone and matters concerning other procedures, and level, methods, etc. of de-identification shall be subject to the decisions made by the Minister of Science and ICT and the Korea Communications Commission after mutual consultation.
 Article 119 (Special Cases for the Telecommunications Business Act)
Notwithstanding Article 17 (1) of the Telecommunications Business Act, the project implementer of a regulation-free special zone related to an innovative project or strategic industry in a regulation-free special zone may operate a business of manufacturing communications equipment without approval from the Minister of Science and ICT.
 Article 120 (Special Cases for the Pharmaceutical Affairs Act)
Where any drug manufacturer related to an innovative project or strategic industry in a regulation-free special zone has applied for marketing approval for a drug he/she intends to manufacture and market pursuant to Article 31 of the Pharmaceutical Affairs Act, the Minister of Food and Drug Safety may examine it taking precedence over other applications for approval for manufacturing and marketing.
 Article 121 (Special Cases for the Medical Devices Act)
Where any manufacturer under Article 6 (2) of the Medical Devices Act in a regulation-free special zone has applied for the manufacturing permission or manufacturing certification or has filed a manufacturing notification with respect to a medical device in relation to an innovative project or strategic industry in the relevant regulation-free special zone, the Minister of Food and Drug Safety may examine it taking precedence over other applications or notifications.
 Article 122 (Special Cases for the Transboundary Movement of Living Modified Organisms Act)
The research and development of any living modified organism or the approval for experiment thereof or alteration in relation to an innovative project or strategic industry in a regulation-free special zone, the head of the relevant central administrative agency shall notify the applicant of his/her decision on approval within 30 days from the date the application is filed, notwithstanding Article 22-2 of the Transboundary Movement of Living Modified Organisms Act and Articles 23-6 (3) and 23-7 (2) of the Enforcement Decree of the same Act.
 Article 123 (Special Cases for the Aviation Safety Act)
In relation to an innovative project or strategic industry in a regulation-free special zone, the Minister of Land, Infrastructure and Transport may designate an exclusive area for flight test, etc. of unmanned vehicles, such as unmanned aerial vehicles and unmanned aircraft other than the airspace under Article 78 of the Aviation Safety Act. In such cases, the criteria for establishing airspace and other necessary matters for the designation, etc. of the airspace shall be subject to Article 78 (3) of the same Act.
 Article 124 (Special Cases for the Aerospace Industry Development Promotion Act)
In relation to an innovative project or strategic industry in a regulation-free special zone, the number of business entities scheduled for move-in among the requirements for designation of a specialized complex for the aerospace industry may be exceptionally prescribed by Presidential Decree, notwithstanding Article 8-2 of the Aerospace Industry Development Promotion Act.
 Article 125 (Special Cases for the Public Waters Management and Reclamation Act)
Where a regulation-free zone has been designated pursuant to Article 76 (limited to the cases of projects related to unmanned aerial vehicles, unmanned aircraft, etc. on the land completed for use as the reclaimed land defined in subparagraph 1 of Article 2 of the Act on the Use and Management of Reclaimed Land for Agriculture and Fisheries), the purpose of reclamation may be changed after undergoing an inspection on completion of the reclaimed land, notwithstanding Article 48 (1) of the Public Waters Management and Reclamation Act. In such cases, the procedures for changing the purpose of reclamation shall be subject to Article 49 (3) of the same Act.
 Article 126 (Special Cases for the Electric Utility Act)
In relation to an innovative project or strategic industry in a regulation-free special zone, in cases of a project for providing services through a smart grid defined in subparagraph 5 (c) of Article 2 of the Smart Grid Construction and Utilization Promotion Act, requirements for registration of demand response resources may be exceptionally determined as prescribed by Presidential Decree, notwithstanding Articles 31 (5) and 43 of the Electric Utility Act.
 Article 127 (Special Cases for the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy)
Where any state property or public property is rented in relation to a project related to the development, use, and dissemination of photovoltaic technology in a regulation-free special zone, the rental period shall not exceed 20 years, notwithstanding Article 26 (3) of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy: Provided, That the rental period of the state property may be renewed to the extent not exceeding the previous rental period, and that of the public property may be extended only once for a period not exceeding 20 years if deemed necessary by the head of the relevant local government.
 Article 128 (Special Cases for the Natural Parks Act)
Where a person who intends to install any facility related to the solar energy or wind power referred to in subparagraph 2 (a) or (b) of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy in relation to an innovative project or strategic industry in a regulation-free special zone, applies for permission to install such facility pursuant to Article 23 (1) of the Natural Parks Act, the park management agency shall notify the applicant of its decision on permission for installation within 90 days from the date the application is filed.
 Article 129 (Special Cases for the Farmland Act)
(1) Notwithstanding Article 32 of the Farmland Act, the project implementer of a regulation-free special zone in the relevant regulation-free special zone may install any agriculture-related industrial facility prescribed by Presidential Decree in an agricultural protection area changed from an agricultural promotion area for an agriculture-related innovative project or strategic industry.
(2) Notwithstanding Article 32 of the Farmland Act, the project implementer of a regulation-free special zone in the relevant regulation-free special zone may install facilities related to the manufacturing business of carbon fiber parts of agricultural machinery prescribed by Presidential Decree in an agricultural protection area changed from an agricultural promotion area for a carbon fiber-related innovative project or strategic industry.
 Article 130 (Special Cases for the Agricultural and Fishing Villages Improvement Act)
Notwithstanding Article 14 of the Agricultural and Fishing Villages Improvement Act, the rental period of reclaimed land, etc. under Article 14 (1) of the same Act may be exceptionally prescribed by Presidential Decree for an innovative project or strategic industry in a regulation-free zone and the rental period may be extended if deemed necessary by an implementer for the development and expansion of agricultural infrastructure project referred to in Article 10 of the same Act.
 Article 131 (Special Cases for the Public Property and Commodity Management Act)
(1) Notwithstanding Article 29 of the Public Property and Commodity Management Act, the head of a local government may sell any property created by implementing a project for the development of a seed technology research complex under Article 13 of the Seed Industry Act, among the property owned by a local government in a regulation-free special zone, to any company, institution, etc. that meets the criteria prescribed by Presidential Decree: Provided, That the contract may be cancelled if the property is not used for the initial purpose.
(2) In relation to an innovative project or strategic industry in a regulation-free special zone, the period prescribed in the proviso of Article 21 (1) of the Public Property and Commodity Management Act may not need to apply to a marina defined in subparagraph 1 of Article 2 of the Act on the Development and Management of Marinas and supplementary projects (referring to the supplementary projects defined in subparagraph 8 of Article 2 of the Act on Public-Private Partnerships in Infrastructure) related to specialized sports facilities under subparagraph 1 (y) of Article 2 of the same Act (limited to yachting courses).
 Article 132 (Special Cases for the Cultural Heritage Protection Act)
In relation to a marine tourism industry in a regulation-free special zone, a Mayor/Do Governor may permit any insignificant act prescribed by Presidential Decree in cases of State-designated cultural heritage designated pursuant to Article 25 of the Cultural Heritage Protection Act, notwithstanding Article 35 (1) of the same Act.
 Article 133 (Special Cases for the Cosmetics Act)
(1) Where the Minister of Food and Drug Safety or a Mayor/Do Governor having jurisdiction over a regulation-free special zone employs personnel for exclusive management of quality, safety, etc. of cosmetics (hereinafter referred to as "managers for joint quality service"), a person selling cosmetics under his/her own responsibility may not need to employ a responsible sales manager notwithstanding Article 3 (3) of the Cosmetics Act. In such cases, detailed matters such as the scope of management by managers for joint quality service shall be prescribed by Presidential Decree.
(2) A manufacturer, school, or research institute related to an innovative project or strategic industry in a regulation-free special zone may file an application for examination of any functional cosmetics under Article 4 of the Cosmetics Act with the Minister of Food and Drug Safety.
(3) Article 5 (4) of the Cosmetics Act need not to apply to cases where a person in a regulation-free special zone who sells cosmetics under his/her own responsibility submits documents necessary to report the track record of manufacturing or importing cosmetics, a list of raw materials used in the process of manufacturing cosmetics, and other relevant documents to a manager for joint quality service referred to in paragraph (1).
(4) Article 10 of the Cosmetics Act need not be applied where bar code, etc. are printed and marked on packages of cosmetics distributed in a regulation-free special zone.
 Article 134 (Special Cases for the Act on the Promotion of Saving and Recycling of Resources)
Notwithstanding Article 9 (1) 1 of the Act on the Promotion of Saving and Recycling of Resources, packing methods may be exceptionally prescribed by Presidential Decree for persons selling cosmetics under his/her own responsibility pursuant to Article 4 (1) of the Cosmetics Act in a regulation-free special zone.
 Article 135 (Special Cases for the Public Health Control Act)
(1) Where any accommodation facility that utilizes a living tree as the foundation of its building is installed and operated in relation to an innovative project or strategic industry in a regulation-free special zone, the criteria and procedures for the installation and operation thereof may be prescribed by municipal ordinance of the City/Do.
(2) Any accommodation facility under paragraph (1) shall not be subject to the application of the Public Health Control Act.
 Article 136 (Special Cases for the Industrial Cluster Development and Factory Establishment Act)
(1) Notwithstanding Article 50 of the Industrial Cluster Development and Factory Establishment Act, building permission under Article 11 (1) of the Building Act may be granted in a regulation-free special zone; and where consultation is held with the head of the competent Si/Gun or Gu on the approval for the factory establishment under Article 13 of the Industrial Cluster Development and Factory Establishment Act, the relevant approval shall be deemed obtained.
(2) Notwithstanding subparagraph 11 of Article 2 of the Industrial Cluster Development and Factory Establishment Act, the scope of public facilities in an industrial complex to be created in a regulation-free special zone under the same Act shall be exceptionally prescribed by Presidential Decree.
(3) In cases of a national industrial complex for which the Minister of Agriculture, Food and Rural Affairs is entrusted with the authority of management among the national industrial complexes designated under Article 6 of the Industrial Sites and Development Act, a national food cluster support center established under Article 12-2 of the Food Industry Promotion Act shall be the management agency thereof, notwithstanding Article 30 (2) of the Industrial Cluster Development and Factory Establishment Act.
 Article 137 (Staging of Foreigners' Performance in Korea in Tourist Restaurant Business Establishments)
A person who has obtained designation for operation of a tourist restaurant business referred to in Article 2 (1) 6 (d) of the Enforcement Decree of the Tourism Promotion Act pursuant to Article 6 of the Tourism Promotion Act in relation to an innovative project or strategic industry in a regulation-free special zone, may stage domestic performance of foreigners after obtaining recommendation from the Korea Media Rating Board established under Article 71 of the Promotion of the Motion Pictures and Video Products Act, if he/she meets the criteria prescribed by Presidential Decree.
 Article 138 (Special Cases for the Act on the Promotion of Electrification in Agricultural and Fishing Villages)
(1) A business operator who intends to produce electricity using a power production facility that does not exceed the range of the type and scale prescribed by Presidential Decree and supply it to electricity users in the same island without going through the electricity market (hereafter referred to as "private electricity provider" in this Article) in relation to an innovative project or strategic industry in a regulation-free zone may provide electricity by taking over independent power production facilities in accordance with the criteria prescribed by Presidential Decree after consulting with the head of the competent Si (including the head of an administrative city under Article 11 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; hereinafter the same shall apply) or Gun, if the electricity is to be provided to a collective residential area with not less than 10 houses where electricity is supplied by independent power production facilities referred to in Article 18 (1) of the Act on the Promotion of Electrification in Agricultural and Fishing Villages, notwithstanding Article 20 (3) of the same Act: Provided, That Article 20 (4) of the Act on the Promotion of Electrification in Agricultural and Fishing Villages shall not apply to any private electricity provider.
(2) Conditions for providing electricity by a private electricity provider such as electric charges, charges for using electric equipment for electric transmission and distribution, and other conditions for using electricity shall be prescribed by Presidential Decree.
 Article 139 (Special Cases for the Tourism Promotion Act)
(1) In a tourism complex developed by the Korea Tourism Organization established under the Korea Tourism Organization Act, local government-directly operated enterprises, local government-invested public corporations or public agency under Article 3 (1) of the Local Public Enterprises Act (referring to a tourism complex, total area of which exceeds two million square meters, among tourism complexes defined in subparagraph 7 of Article 2 of the Tourism Promotion Act), a development plan including detached housing or multi-family housing under the Housing Act (excluding apartments) may be established, approved or modified. In such cases, the number of housing units (in cases of a multi-family housing, referring to the number of households), the number of floors, size of land, etc. that may be created shall meet the requirements prescribed by Presidential Decree.
(2) The project implementer of a tourism complex shall use all or part of the profit generated from the development of housing under paragraph (1) for the purpose of reduction in the sale prices of sites for tourism facilities, installation of support facilities or public facilities, etc.
CHAPTER Ⅳ SUPPLEMENTARY PROVISIONS
 Article 140 (Provision of Foreign Language Services)
The head of the competent local government of a specialized zone or regulation-free special zone may provide foreign language services, such as publication, acceptance, and processing of official documents in any foreign language, for the relevant specialization project, innovative project or strategic industry.
 Article 141 (Statement of Opinions and Hearings)
(1) Where the Specialized Zone Committee, the Committee on Regulation-Free Special Zones or the Minister of SMEs and Startups intends to change or cancel designation of a regional special zone or revise any matter specified in a specialized zone plan or plan for a regulation-free special zone pursuant to Article 16 (2) (excluding subparagraph 6, hereinafter the same shall apply), he/she shall provide an opportunity to the head of the competent local government of the regional special zone to state his/her opinion.
(2) The Specialized Zone Committee, the Committee on Regulation-Free Special Zones or the Minister of SMEs and Startups shall hold a hearing for the project implementer of a regulation-free special zone, a specialization project operator, a person who has obtained provisional permission, a business operator presenting demonstration, or the head of the competent local government of a regional special zone for the following circumstances:
1. Where part of a specialization zone plan or plan for a regulation-free special zone is to be revised to cancel designation of a specialization project operator or the project implementer of the regulation-free special zone;
2. Where designation of a specialized zone or regulation-free special zone is to be cancelled pursuant to Article 16 or 82;
3. Where any special case for demonstration is to be cancelled pursuant to Article 89;
4. Where any provisional permission is to be cancelled pursuant to Article 91.
 Article 141-2 (Legal Fiction as Public Official in Application of Penalty Provisions)
Anyone other than public officials among the members of the Specialized Zone Committee, the Committee on Regulation-Free Special Zones and the Deliberation Committee shall be deemed as public officials in application of penalty provisions pursuant to Articles 127 and 129 through 132 of the Criminal Act.
[This Article Newly Inserted by Act No. 16175, Dec. 31, 2018]
CHAPTER Ⅴ PENALTY PROVISIONS
 Article 142 (Penalty Provisions)
Any of the following persons shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won:
1. A person who is granted a special case for demonstration under Article 86 by fraud or other improper means;
2. A person who obtains provisional permission under Article 90 by fraud or other improper means.
 Article 143 (Administrative Fines)
(1) The Minister of SMEs and Startups shall impose an administrative fine not exceeding 10 million won on any of the following persons:
1. A person who fails to fulfill the conditions referred to in Article 86 (4), or fails to immediately suspend the relevant innovative project, strategic industry, etc., in violation of Article 89 (3);
2. A person who fails to purchase a liability insurance or fails to prepare compensation measures for personal and material damage, in violation of Article 88 (2);
3. A person who fails to comply with the conditions referred to in Article 90 (6) or fails to immediately suspend the relevant business activities, in violation of Article 91 (3);
4. A person who fails to purchase a liability insurance or fails to prepare compensation measures for personal and material damage, in violation of Article 90 (12).
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups or the competent Mayor/Do Governor, as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Relationship to Other Statutes or Regulations)
Where other statutes or regulations cite the former Act on Special Cases concerning the Regulation of the Special Economic Zones for Specialized Regional Development or any provisions thereof as at the time this Act enters into force, it shall be deemed to cite this Act or the relevant provisions of this Act in lieu of the former provisions, if provisions corresponding thereto exist in this Act.
Article 3 (Transitional Measures concerning Regional Strategic Industries)
Where a Mayor/Do Governor establishes a plan for a regulation-free special zone under Article 74 considering an industry, which has been selected by the Presidential Committee for Balanced National Development established under Article 22 of the Special Act on Balanced National Development (Act No. 12215) as a regional strategic industry after adopting a resolution thereon on December 14, 2015, as an innovative project or strategic industry and files an application for the designation of a regulation-free special zone with the Minister of SMEs and Startups pursuant to Article 72, it shall be deemed that the plan for the regulation-free zone has been approved and the regulation-free zone is designated pursuant to Article 75.
ADDENDUM <Act No. 16175, Dec. 31, 2018>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of Article 141-2 of the Act on Special Cases concerning the Regulation of the Special Economic Zones for Specialized Regional Development (Act No. 15852) shall enter into force on April 17, 2019.