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ENFORCEMENT DECREE OF THE SPECIAL ACT ON THE DESIGNATION AND PROMOTION OF ENERGY INDUSTRY CONVERGENCE COMPLEXES

Presidential Decree No. 28957, jun. 12, 2018

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Special Act on the Designation and Promotion of Energy Industry Convergence Complexes and those necessary for enforcing said Act.
 Article 2 (Energy Industry and Energy-Related Industry)
(1) "Industry prescribed by Presidential Decree" in subparagraph 2 of Article 2 of the Special Act on the Designation and Promotion of Energy Industry Convergence Complexes (hereinafter referred to the "Act") means the following industries:
1. An industry related to oil, gas, coal, and other heat sources and the production, conversion, transportation, storage, sale, etc. of heat;
2. An industry related to the generation, transmission, distribution, and sale of electricity;
3. An industry related to the production, use, or diffusion of new energy and renewable energy under subparagraphs 1 and 2 of Article 2 of the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy.
(2) "Industry prescribed by Presidential Decree" in subparagraph 3 of Article 2 of the Act means an industry involving equipment, parts, materials, apparatus, informatization, services, etc. relating to the energy industry, one that can create added value or trigger an economic ripple effect through consolidation or convergence with the energy industry.
 Article 3 (Revisions of Minor Matters in Master Plans for Energy Industry Convergence Complexes)
"Revision of minor matters prescribed by Presidential Decree" in the proviso of Article 5 (4) of the Act means any of the following:
1. Changing the amount of total project expenses determined under the master plan for energy industry convergence complexes (hereinafter referred to as "master plan") under Article 5 (1) of the Act at a maximum rate of 10 percent;
2. Changing the name of a zone eligible to be designated as an energy industry convergence complex as a result of a change in an administrative district, etc.;
3. Making changes to reflect details of the enactment, amendment, or repeal of the Act, this Decree, or any other statute or regulation in the plans;
4. Correcting such matters as errors, clerical mistakes, omission, or other matters which do not affect the basic directions of the master plan and which also constitute clear grounds for such correction.
 Article 4 (Matters to Be Included in Master Plans)
"Matters prescribed by Presidential Decree" in subparagraph 6 of Article 6 of the Act means the following:
1. Matters regarding designation of specialized research institutes and support therefor under Article 17 of the Act;
2. Matters regarding development of professional manpower under Article 18 of the Act;
3. Other matters the Minister of Trade, Industry and Energy deems necessary.
 Article 5 (Scope and Methods of Fact-Finding Surveys)
(1) The scope of the fact-finding survey referred to in Article 7 (1) of the Act (hereinafter referred to as "fact-finding survey") shall be as follows:
1. The current status of the agglomeration and convergence of energy industries and energy-related industries (hereinafter referred to as "energy industries, etc.");
2. The technology and market status of energy industries, etc.;
3. The current status of relevant companies in energy industries, etc.;
4. International trends of energy industries, etc.;
5. Other matters necessary for formulating and changing master plans.
(2) A fact-finding survey shall be conducted in the form of a field survey, literature review, questionnaire, etc., and can also be conducted by electronic means, such as by information and telecommunications network or email.
(3) Where necessary, the Minister of Trade, Industry and Energy may request the head of a relevant central administrative agency, the head of a local government or the head of a relevant organization or group to submit materials or to state opinions.
(4) Where necessary, the Minister of Trade, Industry and Energy may seek advice from a research institute, group with expertise and manpower regarding energy industries, etc., or relevant experts or may request them to conduct a survey or research.
 Article 6 (Consultation for Formulating Plans for Creating Energy Industry Convergence Complexes and Designation of Said Complexes)
(1) Upon receipt of a request for consultation from the Minister of Trade, Industry and Energy under Article 8 (1) of the Act, the head of the competent central administrative agency, and competent Special Metropolitan City Mayor, Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, or Special Self-Governing Province Governor (hereinafter referred to as a "Mayor/Do Governor") shall submit their opinion within 20 days from the receipt of said request.
(2) Where the head of a relevant central administrative agency or competent Mayor/Do Governor is unable to respond, upon receipt of the request under Article 8 (1) of the Act, within the consultation period under paragraph (1) due to any unavoidable cause, he or she shall notify the Minister of Trade, Industry and Energy of such fact and shall reply by the deadline for replying.
 Article 7 (Request for Designation of Energy Industry Convergence Complexes and Consultation Therefor)
(1) Where a Mayor/Do Governor intends to request for designation of an energy industry convergence complex under Article 8 (2) of the Act, he or she shall first hear from the head of a relevant Si/Gun/Gu (the head of a Gu means the head of an autonomous Gu; hereinafter the same shall apply).
(2) Article 6 shall apply mutatis mutandis to the consultation for designation of an energy industry convergence complex under Article 8 (4) of the Act.
 Article 8 (Designation and Public Notice of Energy Industry Convergence Complexes)
Pursuant to Article 8 (5) of the Act, the Minister of Trade, Industry and Energy shall give public notice of the following in the Official Gazette:
1. The name, location, and size of the energy industry convergence complex;
2. The purpose of designation of the energy industry convergence complex and the date of designation;
3. Key details such as the methods and periods for creating an energy industry convergence complex;
4. Other matters the Minister of Trade, Industry and Energy deems necessary.
 Article 9 (Requirements for Designating Energy Industry Convergence Complexes)
"Requirements prescribed by Presidential Decree, such as security of professional manpower, and possibility of sustainable development" in subparagraph 5 of Article 9 of the Act means the following:
1. Availability of professional manpower related to energy industries, etc.;
2. Prospects of sustainable development by boosting organic correlations between urban and industrial development in the competent Special Metropolitan City, Metropolitan City, Special Self-Governing City, Do, or Special Self-Governing Province;
3. Other matters determined and publicly notified by the Minister of Trade, Industry and Energy.
 Article 10 (Matters to Be Included in and Revision of Plans for Creating Energy Industry Convergence Complexes)
(1) "Matters prescribed by Presidential Decree" in Article 10 (1) 7 of the Act means the following:
1. A plan for securing infrastructure necessary for operating an energy industry convergence complex;
2. A plan for securing professional manpower related to energy industries, etc.;
3. Other matters the Minister of Trade, Industry and Energy deems necessary.
(2) "Where he or she intends to revise minor matters prescribed by Presidential Decree" in the proviso of Article 10 (2) of the Act means the following:
1. Changing total project expenses set under a plan for creating an energy industry convergence complex under Article 8 (1) of the Act (hereinafter referred to as "creation plan") at a maximum rate of 10 percent;
2. Changing gross area of an energy industry convergence complex by a maximum rate of 10 percent;
3. Changing the creation plan to reflect details of changes to the master plan in the creation plan;
4. Changing a title of an energy industry convergence complex upon changes in administrative districts, etc.;
5. Making changes to reflect the details of any amendment of the Act and this Decree or of any enactment, amendment, or repeal of other statutes or regulations following said changes;
6. Changing matters, such as errors, clerical mistakes, omission, or other matters, which do not affect the basic directions of the master plan and which also constitute clear grounds for such change.
 Article 11 (Cancellation of Designation of Energy Industry Convergence Complexes)
"Causes prescribed by Presidential Decree" in Article 11 (1) 2 of the Act means cases where a designation as a zone, area, district, etc. is sought in accordance with other statutes or regulations; and need not be in existence as an energy industry convergence complex in consideration of development plans, land use plans, etc. under the relevant statutes or regulations.
 Article 12 (Support for Infrastructures of Energy Industry Convergence Complexes)
Infrastructures eligible for support from the State and local governments under Article 12 (1) of the Act shall be as follows:
1. Research and development facilities related to energy industries, etc.;
2. Corporate support facilities to assist companies related to energy industries, etc. in corporate management and technology;
3. Education and training facilities for technical manpower related to energy industries, etc.;
4. Other facilities requiring support to vitalize energy industry convergence complexes.
 Article 13 (Criteria for Designation of Priority Energy Industries)
(1) The criteria for designating priority energy industries under Article 13 (1) of the Act shall be determined and publicly notified by the Minister of Trade, Industry and Energy, taking into account the growth potential, marketability, economic ripple effects of relevant energy industries, etc., the characteristics and conditions of energy industry convergence complexes, and others.
(2) The Minister of Trade, Industry and Energy may hear opinions of a relevant Mayor/Do Governor, experts, organizations, or groups, etc., where necessary to designate priority energy industries under Article 13 (1) of the Act.
(3) Where the Minister of Trade, Industry and Energy has designated priority energy industries under Article 13 (1) of the Act, he or she shall give public notice thereof in the Official Gazette.
 Article 14 (Designation of Energy-Specialized Enterprises)
(1) "Criteria prescribed by Presidential Decree" in subparagraph 1 of Article 14 of the Act means cases where a relevant enterprise’s amount of sales of products and services related to energy industries, etc. accounts for at least 50 percent of the total value of its sales (referring to the amount calculated by the method referred to in Article 7 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises).
(2) "Requirements prescribed by Presidential Decree in terms of technical level, business capability, etc." in subparagraph 3 of Article 14 of the Act means the requirements determined and publicly notified by the Minister of Trade, Industry and Energy regarding the proportion of exceptional technical personnel, the status of retention of departments dedicated to patent and research and development, debt ratios, etc. in regard to energy industries, etc.
(3) Pursuant to Article 14 of the Act, anyone who intends to receive designation as an energy-specialized enterprise shall file an application with the Minister of Trade, Industry and Energy as prescribed by Ordinance of Ministry of Trade, Industry and Energy.
 Article 15 (Preferential Purchase of Products Related to Energy-Specialized Enterprises)
The Minister of Trade, Industry and Energy or a Mayor/Do Governor may request any of the following to take necessary measures such as preferential purchase, etc. of products and services produced by energy-specialized enterprises:
1. A state agency or local government;
2. A public institution under the Act on the Management of Public Institutions;
3. Any person who receives contributions or subsidies, etc. from the State or local governments.
 Article 16 (Designation of Specialized Research Institutes)
(1) Pursuant to Article 17 (1) of the Act, any person who intends to receive designation as a specialized research institute shall file an application with the Minister of Trade, Industry and Energy, satisfying the following requirements:
1. Securing a research base such as research personnel, facilities, and equipment related to energy industries, etc.;
2. Operating the institute based on a collaborative system among academia, industrial circles, research institutes, etc. related to energy industries, etc.
(2) Where the Minister of Trade, Industry and Energy has designated a specialized research institute under Article 17 (1) of the Act, he or she shall give public notice of the following matters in the Official Gazette:
1. The name and address of the designated institute;
2. The date and period of designation;
3. The functions and roles of the designated institute.
(3) A specialized research institute designated under Article 17 (1) of the Act (hereinafter referred to as "specialized research institute") shall submit its business plan for the relevant year and performance records for the previous year to the Minister of Trade, Industry and Energy by January 31 each year.
 Article 17 (Revocation of Designation of Specialized Research Institutes)
The Minister of Trade, Industry and Energy may revoke the designation of a specialized research institute after hearing opinions of a relevant Mayor/Do Governor, in any of the following cases: Provided, That he or she shall revoke such designation in the case of subparagraph 1:
1. Where the institute has been designated by fraud or other improper means;
2. Where the institute has continuously failed to perform research and development for at least one year without just grounds;
3. Where the institute used subsidies provided under Article 17 (2) of the Act for a purpose other than the intended purpose.
 Article 18 (Scope of Support for Specialized Research Institutes)
Pursuant to Article 17 (2) of the Act, the Minister of Trade, Industry and Energy may provide specialized research institutes with subsidies to cover the following expenses fully or partially within the budget:
1. Expenses required to conduct research and development projects regarding energy industries, etc. and research and development demonstration projects;
2. Expenses required to retain, educate, and train professional manpower engaged in research and development;
3. Expenses required to conduct an investigation and analysis of the market and technology for energy industries, etc. and to utilize information collected;
4. Expenses required to boost competitiveness of enterprises through energy industries, etc. and to conduct projects intended to support creation of new industries;
5. Other expenses required for research and development and for management of specialized research institutes.
 Article 19 (Policies for Developing and Managing Professional Manpower)
"Matters prescribed by Presidential Decree" in Article 18 (2) 3 of the Act means the following:
1. Matters regarding attracting and utilizing excellent manpower from abroad relating to energy industries, etc.;
2. Matters regarding creating jobs for professional manpower relating to energy industries, etc.;
3. Other matters necessary for developing and managing professional manpower in relation to energy industries, etc.
 Article 20 (Designation of Professional Manpower Development Institutions)
(1) Any person who seeks to be designated as a professional manpower development institution under Article 18 (3) of the Act shall file an application with the Minister of Trade, Industry and Energy, satisfying all the following requirements:
1. The curricula and contents of education shall be appropriate to develop professional manpower necessary for nurturing the growth of energy industries, etc. and providing support therefor;
2. There shall be educational facilities necessary for operating curricula;
3. There shall be professional teaching staff necessary for operating curricula;
4. A plan to finance operation of curricula shall be valid;
5. Other matters determined and publicly notified by the Minister of Trade, Industry and Energy.
(2) Where the Minister of Trade, Industry and Energy has designated a professional manpower development institution under Article 18 (3) of the Act, he or she shall give public notice of the following in the Official Gazette:
1. The name and address of the designated institution;
2. The date and period of designation;
3. The functions and roles of the designated institution.
(3) The professional manpower development institution designated under Article 18 (3) of the Act (hereinafter referred to as "professional manpower development institution") shall submit its business plan for the relevant year and performance records for the previous year to the Minister of Trade, Industry and Energy by January 31 each year.
 Article 21 (Revocation of Designation of Professional Manpower Development Institutions)
(1) The Minister of Trade, Industry and Energy may revoke the designation of a professional manpower development institution, in any of the following cases: Provided, That he or she shall revoke such designation in the case of subparagraph 1:
1. Where the institution has been designated by fraud or other improper means;
2. Where the institution has continuously failed to perform its duties of developing professional manpower without just grounds for at least one year;
3. Where the institution has used subsidies provided by the State or local governments under Article 18 (4) of the Act for a purpose other than the intended purpose.
 Article 22 (Scope of Support for Professional Manpower Development Institutions)
The Minister of Trade, Industry and Energy may fully or partially subsidize the following expenses for professional manpower development institutions under Article 18 (4) of the Act, within the budget:
1. Lecture fees and benefits;
2. Expenses for teaching materials and expenses for tools for practice;
3. Expenses necessary for field activities;
4. Other expenses necessary for developing professional manpower.
ADDENDUM
This Decree shall enter into force on June 13, 2018.