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ENFORCEMENT DECREE OF THE ACT ON DEVELOPMENT OF WATER MANAGEMENT TECHNOLOGIES AND ON PROMOTION OF WATER INDUSTRY

Presidential Decree No. 29348, Dec. 11, 2018

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Decree is to provide for matters mandated by the Act on Development of Water Management Technologies and on Promotion of Water Industry and matters necessary for the enforcement thereof.
 Article 2 (Scope of Water Industry)
"Business prescribed by Presidential Decree" in subparagraph 2 (l) of Article 2 of the Act on Development of Water Management Technologies and on Promotion of Water Industry (hereinafter referred to as the "Act") means any of the following business:
1. Deep sea water development business under subparagraph 4 of Article 2 of the Development and Management of Deep Sea Water Act and business related to deep sea water under subparagraph 5 of the same Article;
2. Business related to river facilities under subparagraph 3 of Article 2 of the River Act, business related to maintenance and repair under subparagraph 6 of the same Article and business related to river water under subparagraph 8 of the same Article;
3. Business related to safety management under subparagraph 7 of Article 2 of the Reservoir and Dam Safety Control and Disaster Prevention Act;
4. Technology business related to hydrological investigation under subparagraph 3 of Article 2 of the Act on the Investigation, Planning, and Management of Water Resources, business related to water resources facility under subparagraph 4 of the same Article and business related to water resources management technology under subparagraph 5 of the same Article;
5. Business related to engineering activities under subparagraph 1 of Article 2 of the Engineering Industry Promotion Act, which is related to the business under the items of subparagraph 2 of Article 2 of the Act and the business under subparagraphs 1 through 4 of this Article;
6. Other business using or managing water under relevant statutes, publicly notified by the Minister of Environment as deemed necessary.
CHAPTER II ESTABLISHMENT OF FOUNDATION FOR DEVELOPMENT OF WATER MANAGEMENT TECHNOLOGIES AND FOR PROMOTION OF WATER INDUSTRY
 Article 3 (Formulation of Master Plan for Development of Water Management Technologies and for Promotion of Water Industry)
(1) The Minister of Environment shall formulate a master plan for the development of water management technologies and for the promotion of the water industry under Article 5 (1) of the Act (hereinafter referred to as "master plan") every five years.
(2) When the Minister of Environment formulates a master plan, he or she shall, in advance, consult with the heads of relevant central administrative agencies. In such cases, the Minister of Environment may request the heads of relevant central administrative agencies to submit data or to provide opinions, etc., and the heads of relevant central administrative agencies in receipt of such request shall cooperate therein unless there is a compelling reason not to do so.
(3) Where the Minister of Environment intends to modify a master plan, he or she shall consult with the heads of relevant central administrative agencies and submit it for deliberation by the Presidential Advisory Council on Science and Technology established under the Presidential Advisory Council on Science and Technology Act: Provided, That this shall not apply where he or she intends to modify insignificant matters prescribed by Ordinance of the Ministry of Environment.
(4) Where the Minister of Environment formulates or modifies a master plan, he or she shall publicly notify such fact in the Official Gazette and publicly announce it on the website of the Ministry of Environment.
 Article 4 (Formulation of Implementation Plans for Development of Water Management Technologies and for Promotion of Water Industry)
Where the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor or a Special Self-Governing Province Governor formulates an implementation plan for the development of water management technologies and for the promotion of the water industry under Article 5 (3) of the Act, they shall notify the Minister of Environment of such fact and publicly announce it in the official report or on the website.
 Article 5 (Survey of Actual Conditions of Water Industry)
(1) The survey of actual conditions of the water industry under Article 6 (1) of the Act (hereinafter referred to as "survey of actual conditions") shall be detailed as follows:
1. Current status of the water industry in the domestic and foreign markets;
2. Records of orders obtained and sales in the water industry;
3. Current status of business operators and employees in the water industry;
4. Current status of research and development related to the water industry;
5. Current status of training and education of specialized personnel related to the water industry;
6. Current status of domestic and foreign examination and certification related to the water industry;
7. Current status of acquisition and possession of intellectual property rights related to the water industry;
8. Matters necessary for the formulation and implementation of policies for the promotion of the water industry.
(2) In principle, the survey of actual conditions shall be conducted once a year: Provided, That where a separate survey of any of the matters under the subparagraphs of paragraph (1) is deemed necessary, a separate survey may be conducted additionally.
(3) Where the Minister of Environment requests relevant central administrative agencies, local governments, public water utilities, water industry-related enterprises or other related juristic persons or organizations to submit data or to provide opinions pursuant to Article 6 (2) of the Act, he or she shall notify them of a survey plan containing the timing, intent, details, methods, etc. of the survey.
 Article 6 (Scope of Water Industry Standardization Projects)
"Projects prescribed by Presidential Decree" in Article 9 (1) 4 of the Act means the following projects:
1. Collection, analysis and dissemination of standardization information on water management technologies and products on the international level;
2. Analysis of trends in standardization and construction of responsive systems with regard to standardization;
3. Training of specialized personnel for standardization, and exchange and cooperation with domestic and foreign specialized personnel.
 Article 7 (Designation of Excellent Products)
(1) To designate excellent products or technologies (hereinafter referred to as "excellent products, etc.") under Article 10 (1) of the Act, the Minister of Environment shall formulate a plan including the following matters:
1. Products, etc. to be designated;
2. Methods of examination and evaluation for designation;
3. Details of support.
(2) A person who intends to obtain designation of excellent products, etc. shall file an application therefor with the Minister of Environment as prescribed by Ordinance of the Ministry of Environment.
(3) The standards for examination and evaluation for the designation of excellent products, etc. shall be as follows:
1. Excellence of products and technologies;
2. Safety;
3. Stability of supply.
(4) The Minister of Environment shall determine whether to designate products, etc. as excellent products, etc. to notify the applicant of the result of such determination within 90 days from the date of receipt of an application under paragraph (2), as prescribed by Ordinance of the Ministry of Environment, and publicly announce the result on the website of the Ministry of Environment.
(5) Details concerning standards for examination and evaluation under paragraph (3) shall be determined and publicly notified by the Minister of Environment.
 Article 8 (Term of Validity of Designation of Excellent Products)
(1) The term of validity of designation of excellent products, etc. shall be three years from the date of designation of excellent products, etc., and the term of validity may be extended only once by up to three years.
(2) A person who intends to obtain an extension of the term of validity under paragraph (1) shall file an application therefor with the Minister of Environment as prescribed by Ordinance of the Ministry of Environment.
(3) Where the Minister of Environment receives an application for extension under paragraph (2), he or she shall evaluate the following matters, determine whether to extend the term of validity, and notify the applicant of the result thereof:
1. Results of use of excellent products, etc.;
2. Whether the products, etc. meet the standards for examination and evaluation of excellent products, etc.;
3. Whether relevant statutes or regulations are complied with.
 Article 9 (Revocation of Designation of Excellent Products)
(1) Where a person has obtained the designation of excellent products, etc. by fraud or other improper means, the Minister of Environment shall revoke the designation of excellent products, etc.
(2) Where a person who has obtained the designation of excellent products, etc. ceases to satisfy the standards for examination and evaluation under Article 7 (3), the Minister of Environment may order such person to supplement the deficiency within a specified period.
(3) Where a person in receipt of an order under paragraph (2) fails to supplement the deficiency within the specified period, the Minister of Environment shall revoke the designation.
 Article 10 (Evaluation of Introduction of Excellent Products)
(1) The criteria to evaluate the results of introduction of excellent products, etc. by local governments under Article 10 (2) of the Act shall be as follows:
1. Types and quantity of excellent products, etc. that have been introduced;
2. Total of excellent products, etc. that have been introduced.
(2) Detailed matters concerning aid projects eligible for financial benefits, such as application of preferential subsidy rates under Article 10 (2) of the Act, subsidy rates, etc. shall be determined by the Minister of Environment in consultation with the Minister of Economy and Finance.
 Article 11 (Establishment and Operation of Cooperation System)
(1) To expedite the development and dissemination of excellent products, etc. under Article 10 (4) of the Act, the Minister of Environment shall establish and operate a cooperation system with local governments, public water utilities, etc.
(2) The cooperation system under paragraph (1) shall have the following functions:
1. Cooperation in the joint discovery, purchase and publicity of excellent products, etc.;
2. Demonstrative use and application of excellent products, etc.;
3. Pursuing measures to support small and medium enterprises related to the water industry;
4. Joint cooperation for the promotion of the domestic water industry.
(3) Matters concerning the establishment and operation of the cooperation system in addition to those prescribed in paragraphs (1) and (2) shall be determined by the cooperation system.
 Article 12 (Implementation of Pilot Projects)
(1) "Innovative technologies related to the water industry prescribed by Presidential Decree" in Article 11 (1) of the Act means any of the following technologies:
1. Technologies to build stable water supply chains, such as the use of water circulation, use of rainwater, alternative water resources, or diversification of water sources;
2. Technologies to ensure sustainability, such as coping with climate change or improvement of resource efficiency;
3. Technologies to secure safe water sources and to manufacture drinking water;
4. Technologies to manage pipeline networks, leakage, water supply facilities, etc.;
5. Technologies to manage eco-friendly waterworks and sewerage;
6. Water management technologies using information and communications technologies;
7. Technologies to use the circulation of water, energy, resources, etc., and to interlink them;
8. Innovative waterworks and sewerage technologies bespoke to the water industry markets;
9. Technologies concerning sustainable river management, such as improvement of river ecosystems, prevention of drying of rivers, control of floods, etc.;
10. Technologies related to the safety of facilities for water management, such as prevention of urban inundation.
(2) Where the head of a central administrative agency intends to implement a pilot project pursuant to Article 11 (1) of the Act, he or she shall formulate a plan including the following matters and publicly announce the details thereof on the website of the central administrative agency:
1. Objectives and details of the pilot project;
2. Projects eligible for a pilot project and criteria for selection;
3. Methods of evaluating the results of the pilot project;
4. Measures for using the results of the pilot project;
5. Other matters deemed necessary by the head of the central administrative agency implementing the pilot project in promoting the pilot project.
(3) The head of a central administrative agency may select a project that can participate in a pilot project (hereinafter referred to as "eligible pilot project") at the request of local governments, public water utilities, research institutions, etc., as prescribed by Ordinance of the Ministry of Environment.
(4) The head of a central administrative agency shall examine whether to select a project as an eligible pilot project within 30 days from the date of receipt of a request under paragraph (3) and notify the requesting institution of the result of such examination. In such cases, where a project is not selected as an eligible pilot project, he or she shall include the reason in the notification.
(5) Where the head of a central administrative agency selects an eligible pilot project pursuant to paragraph (4), he or she shall publicly announce the details of the eligible pilot project, the institution implementing such project, etc. on the website of the central administrative agency.
(6) The head of a central administrative agency shall evaluate the results of a pilot project, such as the results of use and dissemination of innovative technologies relating to the water industry, within one year from the date of completion of such pilot project.
 Article 13 (Support for Establishment of Business)
The heads of central administrative agencies may support water enterprises in the following matters pursuant to Article 12 of the Act:
1. Consulting services for the establishment of business and management;
2. Transfer of water management technologies;
3. Provision of market information on the demand, etc. for water management technologies and products;
4. Provision of information on marketing and markets for products;
5. Other matters deemed necessary by the heads of central administrative agencies to provide support for inducing the establishment, growth and development of water enterprises.
 Article 14 (Criteria for Designation of Innovative Water Enterprises)
(1) "Proportion ... prescribed by Presidential Decree" in Article 13 (1) 1 of the Act means that the proportion of research and development expenses among average sales during the preceding two years on the financial statements of the relevant water enterprise is three percent.
(2) "Proportion ... prescribed by Presidential Decree" in Article 13 (1) 2 of the Act means that the proportion of exports among average sales during the preceding two years on the financial statements of the relevant water enterprise is five percent.
(3) "Certification prescribed by Presidential Decree" in Article 13 (1) 3 of the Act means certification obtained from foreign governments, public institutions, associations, etc., which satisfies the standards determined and publicly notified by the Minister of Environment in consideration of the credibility, etc. of the certification.
 Article 15 (Methods of Designating Innovative Water Enterprises)
(1) A person who intends to be designated as an innovative water enterprise under Article 13 (1) of the Act (hereinafter referred to as "innovative water enterprise") shall file an application therefor with the Minister of Environment as prescribed by Ordinance of the Ministry of Environment, accompanied by documents proving that at least two of the requirements under the subparagraphs of the same paragraph are satisfied.
(2) The Minister of Environment shall examine whether to grant designation within 30 days from the date of receipt of an application under paragraph (1) and notify the applicant of the result of such examination. In such cases, where the Minister of Environment does not designate the applicant as an innovative water enterprise, the reason shall be included in the notification.
(3) Where necessary for examination under paragraph (2), the Minister of Environment may hear opinions of interested parties, relevant institutions, organizations, etc.
(4) The Minister of Environment shall issue a certificate of designation to those designated as an innovative water enterprise as prescribed by Ordinance of the Ministry of Environment.
(5) The designation of an innovative water enterprise under Article 13 (1) of the Act shall be valid for five years.
(6) Where the Minister of Environment designates an innovative water enterprise, he or she shall publicly announce such designation on the website of the Ministry of Environment.
(7) Detailed matters necessary for designating an innovative water enterprise in addition to those prescribed in paragraphs (1) through (6) shall be determined and publicly notified by the Minister of Environment.
 Article 16 (Revocation of Designation of Innovative Water Enterprise)
(1) Where an innovative water enterprise ceases to satisfy the requirements for designation under Article 13 (1) of the Act, the Minister of Environment may order such enterprise to supplement the deficiency within a specified period.
(2) Where a person in receipt of an order under paragraph (1) fails to supplement the deficiency within a specified period, the Minister of Environment shall revoke the designation.
(3) Where the Minister of Environment revokes the designation of an innovative water enterprise, he or she shall publicly announce such revocation on the website of the Ministry of Environment.
 Article 17 (Performance Evaluation of Innovative Water Enterprises)
(1) The Minister of Environment shall conduct a performance evaluation under Article 14 (2) of the Act according to the following classification: Provided, That a regular evaluation shall be omitted in the year in which a comprehensive evaluation under subparagraph 2 is conducted:
1. Regular evaluation: Annual evaluation of the business results, etc. of an innovative water enterprise during the previous year;
2. Comprehensive evaluation: Evaluation of overall management of an innovative water enterprise at the time when the period of validity under Article 15 (5) expires.
(2) The criteria for a performance evaluation under paragraph (1) shall be as follows:
1. Domestic and international business results;
2. Results of commercialization of technologies in possession;
3. Results of employment creation.
(3) Where business results, etc. are substandard as a result of a regular evaluation under paragraph (1) 1, the Minister of Environment may reduce or cease support for the relevant enterprise.
(4) Matters necessary for the performance evaluation of an innovative water enterprise, such as detailed criteria for the performance evaluation under paragraph (2), shall be determined and publicly notified by the Minister of Environment.
 Article 18 (Organization and Operation of Water Industry Technology Examination Group)
(1) To efficiently perform duties concerning the designation, etc. of excellent products, etc. and innovative water enterprises, the Minister of Environment may organize and operate a water industry technology examination group.
(2) Detailed matters necessary for the organization and operation of the water industry technology examination group under paragraph (1) shall be prescribed by Ordinance of the Ministry of Environment.
CHAPTER III ESTABLISHMENT AND OPERATION OF WATER INDUSTRY TEST BED FACILITIES AND WATER INDUSTRY CLUSTERS
 Article 19 (Selection of Locations for Water Industry Test Bed Facilities and Water Industry Clusters)
(1) Where the head of a central administrative agency intends to select a location for a water industry test bed facility or a water industry cluster under Article 15 (1) of the Act, he or she shall select one from among the whole or part of an area falling under any of the following:
1. An enterprise city development zone under subparagraph 2 of Article 2 of the Special Act on the Development of Enterprise Cities;
2. An urban development zone under Article 2 (1) 1 of the Urban Development Act;
3. A facility for clustering venture businesses under Article 18 (1) of the Act on Special Measures for the Promotion of Venture Businesses and a venture business development and promotion zone under Article 18-4 (1) of the same Act;
5. An industrial complex under subparagraph 8 of Article 2 of the Industrial Sites and Development Act;
6. A special research and development zone under subparagraph 1 of Article 2 of the Special Act on Promotion of Special Research and Development Zones;
7. An area to be developed for an innovation city under subparagraph 4 of Article 2 of the Special Act on the Construction and Development of Innovation Cities;
8. Other areas designated and developed pursuant to separate statutes that are determined and publicly notified by the head of a central administrative agency.
(2) When the head of a central administrative agency selects a location for a water industry test bed facility or water industry cluster, he or she shall consider the following matters:
1. Possibility of attracting exceptional personnel in the field of water industry and water enterprises;
2. Effect of concentration of water enterprises;
3. Possibility of securing infrastructure necessary for establishing a water industry test bed facility or water industry cluster;
4. Degree of use of an existing industrial complex and effects of urban regeneration.
(3) When the head of a central administrative agency selects a location for a water industry test bed facility or water industry cluster, he or she shall, in advance, consult with the heads of relevant administrative agencies and hear opinions of residents, relevant specialists, etc.
(4) Where the head of a central administrative agency selects a location for a water industry test bed facility or water industry cluster, he or she shall publicly notify the following matters in the Official Gazette:
1. Name, address and size of the water industry test bed facility or water industry cluster;
2. Major facilities to be installed in the water industry test bed facility or water industry cluster;
3. Other matters deemed necessary by the head of the central administrative agency.
 Article 20 (Entrustment of Operation of Water Industry Test Bed Facilities or Water Industry Clusters)
(1) Where the head of a central administrative agency has selected a specialized institution to entrust the operation of a water industry test bed facility or water industry cluster pursuant to Article 15 (3) of the Act, he or she shall publicly notify the specialized institution to be entrusted with operation and the details of entrustment in the Official Gazette.
(2) The specialized institution entrusted with the operation of a water industry test bed facility or water industry cluster shall submit an operational plan and the results of operation to the head of the entrusting central administrative agency every year.
(3) The head of a central administrative agency who has entrusted the operation of a water industry test bed facility or water industry cluster shall conduct a performance evaluation of the specialized institution entrusted with operation every five years: Provided, That where deemed necessary by the head of the central administrative agency, such as where the results of operation under paragraph (2) are substandard, the evaluation cycle may be decreased.
(4) The head of a central administrative agency may take necessary measures, such as change of an institution to be entrusted with operation or change in the details and scope of duties to be entrusted, according to the results of the performance evaluation under paragraph (3).
(5) "Relevant specialized institutions prescribed by Presidential Decree" in Article 15 (4) of the Act means any of the following institutions:
1. Institutions under the subparagraphs of Article 23 of the Act;
2. Research institutions related to the water industry;
3. Schools under the subparagraphs of Article 2 of the Higher Education Act, where water industry-related research institutes are established;
4. Non-profit organizations in the field of water industry;
5. Local public enterprises in the field of water industry;
6. Other juristic persons or organizations prescribed by ordinances of local governments.
 Article 21 (Support for Water Industry Support Centers)
(1) The heads of central administrative agencies may provide administrative support, such as provision of information related to water management technologies and the water industry, to water industry support centers under Article 20 (1) of the Act (hereinafter referred to as “water industry support centers”).
(2) The heads of central administrative agencies may partially subsidize expenses incurred in operating water industry support centers, within budgetary limits, to those who establish and operate water industry support centers.
ADDENDUM
This Decree shall enter into force on December 13, 2018.