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ENFORCEMENT DECREE OF THE SPORTS INDUSTRY PROMOTION ACT

Wholly Amended by Presidential Decree No. 27429, Aug. 2, 2016

Amended by Presidential Decree No. 29950, Jul. 2, 2019

 Article 1 (Purpose)
The purpose of this Decree is to prescribe matters delegated by the Sports Industry Promotion Act and those necessary for the enforcement thereof.
 Article 2 (Establishment, etc. of Master Plans)
(1) The Minister of Culture, Sports and Tourism shall establish and implement a mid- to long-term promotion master plan (hereinafter referred to as “master plan”) pursuant to Article 5 (1) of the Sports Industry Promotion Act (hereinafter referred to as the “Act”) every five years.
(2) The Minister of Culture, Sports and Tourism shall establish and implement a detailed action plan for each field of the sports industry and for each period (hereinafter referred to as "detailed action plan") on an annual basis pursuant to Article 5 (1) of the Act.
(3) The detailed action plan shall include the following:
1. Direction for implementing the programs in the relevant year;
2. Detailed action plan for each major program.
(4) Upon establishing the master plan and the detailed implement plan, the Minister of Culture, Sports and Tourism shall notify the heads of relevant administrative agencies and the heads of local governments of the details thereof.
(5) “Matters prescribed by Presidential Decree” in Article 5 (2) 8 of the Act means the following:
1. Matters relating to technological development for the sports industry;
2. Matters relating to support for business startups in the sports industry;
3. Other matters the Minister of Culture, Sports and Tourism deems necessary to promote the sports industry.
(6) The Minister of Culture, Sports and Tourism may request necessary materials from the heads of relevant administrative agencies and the heads of local governments, if necessary to establish the master plan and the detailed action plan. In such case, the heads of the relevant administrative agencies and the heads of the local governments in receipt of the request shall comply except under special circumstances.
 Article 3 (Scope and Method of Fact-Finding Surveys)
(1) The Minister of Culture, Sports and Tourism shall conduct a fact-finding survey on the following on an annual basis pursuant to Article 7 (1) of the Act:
1. Number of businesses and employees in the sports industry;
2. Sales of the sports industry;
3. Business performance and prospects of the sports industry;
4. Supply of, and demand for, human resources in the sports industry;
5. Other matters necessary to establish and implement the policies for promoting the sports industry.
(2) The Minister of Culture, Sports and Tourism may entrust the fact-finding survey under paragraph (1) to an institution or organization with expertise in the sports industry.
(3) The Minister of Culture, Sports and Tourism may request relevant materials from institutions, corporations, organizations, or business entities related to the sports industry, if necessary to conduct the fact-finding survey under paragraph (1).
 Article 4 (Entities and Projects Eligible for Funding for, or Investments in, Technological Development)
(1) The entities that the Minister of Culture, Sports and Tourism may provide funding for or invest in under Article 8 (1) of the Act shall be any of the following institutes, corporations, organizations, or business entities:
1. A specific research institute established under the Specific Research Institutes Support Act;
2. A government-funded research institute established under the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes, Etc. (hereinafter referred to as “government-funded research institute”);
3. A university, college, industrial college, junior college, or technical college established under the Higher Education Act;
4. Other institutes, corporations, organizations, or business entities the Minister of Culture, Sports and Tourism deems necessary to carry out technological development for the sports industry.
(2) The Minister of Culture, Sports and Tourism may provide funding for, or invest in, any of the institutes, corporations, organizations, or business entities referred to in the subparagraphs of paragraph (1) pursuant to Article 8 (1) of the Act, where they perform any of the following projects:
1. A technological development project relating to the sports industry;
2. A research project on technology relating to the sports industry;
3. A project for evaluation, transfer, and utilization of technology relating to the sports industry;
4. Other projects the Minister of Culture, Sports and Tourism deems necessary to carry out technological development.
 Article 5 (Designation, etc. of Training Institutions for Experts in Sports Industry)
(1) The Minister of Culture, Sports and Tourism may designate any of the following institutes or organizations as a training institution for experts in the sports industry (hereinafter referred to as “experts training institution”) pursuant to Article 9 (2) of the Act:
1. A university or college referred to in subparagraph 1 of Article 2 of the Higher Education Act, which has a department or major relating to the sports industry;
2. A government-funded research institute;
3. The Seoul Olympic Sports Promotion Foundation established under Article 36 of the National Sports Promotion Act (hereinafter referred to as the “Korea Sports Promotion Foundation”);
4. An institution or organization established to promote the sports industry;
5. Other institutions or organizations the Minister of Culture, Sports and Tourism deems necessary to train experts.
(2) The following criteria shall apply to designation of experts training institutions:
1. Qualified faculty members shall have been secured;
2. Proper educational facilities and equipment shall be available;
3. Plans to fund operating expenses and to use subsidies shall be appropriate;
4. Training courses and curricula shall be appropriate for each group of trainees.
(3) An institution or organization that intends to obtain designation as a training institution for experts shall file a written application prescribed by the Ordinance of the Ministry of Culture, Sports and Tourism with the Minister of Culture, Sports and Tourism.
(4) Upon designating an experts training institution pursuant to paragraph (1), the Minister of Culture, Sports and Tourism shall give public notice of such designation on the web-site of the Ministry of Culture, Sports and Tourism.
 Article 6 (Subsidization)
The Minister of Culture, Sports and Tourism and the heads of local governments may fully or partially subsidize the operation of experts training institutions pursuant to Article 9 (3) of the Act to cover the following expenses:
1. Expenses incurred in administering experts training and education programs;
2. Expenses incurred in conducting research on experts training and education;
3. Expenses incurred in developing and distributing training materials;
4.  Rent for training venues and equipment procurement costs.
 Article 7 (Support, etc. for Training Experts in Sports Industry)
The Minister of Culture, Sports and Tourism and the heads of local governments may render the following support, etc. to train experts in the sports industry pursuant to Article 9 (1) of the Act:
1. Collection of and research on information about experts in the sports industry;
2. Support for persons who have finished the training courses for experts in the sports industry conducted by training institutions for experts designated under Article 5 (1) and sports business managers qualified under the National Technical Qualifications Act in taking in-service training;
3. Support for employees in the sports industry in taking local or overseas training to enhance their expertise.
 Article 8 (Procedures for Designation of Sports Industry Promotion Facilities)
(1) The head of a local government that intends to have a public sports facility in its possession designated as a sports industry promotion facility (hereinafter referred to as “promotion facility”) pursuant to the forepart of Article 11 (1) of the Act shall file with the Minister of Culture, Sports and Tourism a written application for designation prescribed by the Ordinance of the Ministry of Culture, Sports and Tourism, accompanied by the documents attesting its compliance with the requirements provided for in the subparagraphs of the Article 11 (1) of the Act.
(2) Upon designating a promotion facility, the Minister of Culture, Sports and Tourism shall give public notice of such designation on the web-site of the Ministry of Culture, Sports and Tourism.
(3) The Minister of Culture, Sports and Tourism shall prescribe matters necessary to designate promotion facilities, except as expressly provided for in paragraphs (1) and (2).
 Article 9 (Support for Promotion Facilities)
(1) The Minister of Culture, Sports and Tourism may provide promotion facilities with the following support pursuant to the latter part of Article 11 (1) of the Act:
1. Subsidy to help cover expenses incurred in operating promotion facilities;
2. Subsidy to help cover expenses incurred in installing and operating common-use facilities.
(2) The Minister of Culture, Sports and Tourism shall prescribe matters necessary to provide support in terms of promotion facilities, except as expressly provided for in paragraph (1).
 Article 10 (Revocation of Designation as Promotion Facilities)
(1) The Minister of Culture, Sports and Tourism shall hear from the head of the relevant local government before revoking the designation of a promotion facility pursuant to Article 12 of the Act.
(2) Upon revoking the designation of a promotion facility pursuant to Article 12 of the Act, the Minister of Culture, Sports and Tourism shall give public notice of such revocation on the web-site of the Ministry of Culture, Sports and Tourism.
 Article 11 (Designation, etc. of Sports Industry Support Centers)
(1) An institution that intends to obtain designation as a sports industry support center (hereinafter referred to as “support center”) pursuant to Article 12 of the Act shall apply for designation to the Minister of Minister of Culture, Sports and Tourism, as prescribed by Ordinance of the Ministry of Culture, Sports and Tourism.
(2) The Minister of Culture, Sports and Tourism shall hear from the head of the relevant local government before designating a promotion facility or revoking the designation of a promotion facility pursuant to Article 14 (1) or (3) of the Act: Provided, That the Minister of Culture, Sports and Tourism needs not do so when designating any of the institutions referred to in Article 14 (1) 4 of the Act as a support center or revoking its designation as a support center.
(3) Upon designating a support center or revoking the designation of a support center, the Minister of Culture, Sports and Tourism shall give public notice of such designation or revocation on the web-site of the Ministry of Culture, Sports and Tourism.
 Article 12 (Investments in Sports Industry)
The Minister of Culture, Sports and Tourism may hear from the Korea Sports Promotion Foundation to make investments pursuant to Article 16 of the Act.
 Article 13 (Investments in, Contributions to, Creation of Professional Sports Teams)
(1) Pursuant to Article 17 (2) of the Act, a local government or a public institution referred to in Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as “public institution”) may invest in, or make a contribution to, in whole or in part, the capital or assets for creating a professional sports team either on its own or jointly with other entities.
(2) A local government or a public institution may subsidize a project for creating a professional sports team to help cover the following expenses, pursuant to Article 17 (2) of the Act:
1. Operating expenses of the professional sports team (including labor costs);
2. Expenses incurred in establishing appurtenant facilities for the professional sports team;
3. Expenses incurred in hosting or participating in various domestic or international sporting events or competitions;
4. Operating expenses of youth sports clubs and programs;
5. Other expenses incurred in encouraging professional sports teams.
 Article 14 (Fees for Using Public Property, Payment Methods, Etc.)
(1) The head of a local government shall collect the fee for using public property each year pursuant to Article 17 (4) of the Act: Provided, That he/she may collect the total user fee for the period during which a professional sports team is permitted to use or profit from such public property, in a lump sum, if he/she has reached an agreement with the professional sports team.
(2) The annual user fee referred to in the main sentence of paragraph (1) shall be prescribed by ordinance of the relevant local government, which shall be at least 10/10,000 of the appraised value of the relevant property, reflecting its current value, per annum; and may be calculated on a monthly, daily, hourly, or per-use basis. <Amended by Presidential Decree No. 29950, Jul. 2, 2019>
(3) The annual user fee referred to in the main sentence of paragraph (1) shall be paid in a lump sum by the due date each year: Provided, That the head of a local government may permit the annual user fee of more than one million won to be paid in up to four installments annually, with interest determined under the proviso to Article 22 (2) of the Public Property and Commodity Management Act, as prescribed by ordinance of the relevant local government.
(4) The head of a local government may grant a full or partial exemption from the user fee collected under the main sentence of, and proviso to, paragraph (1), as prescribed by ordinance of the local government, in any of the following cases:
1. Where he/she permits a professional sports team to use sports facilities (including facilities constructed, repaired, or maintained with private capital; the same shall apply hereafter in subparagraphs 2 and 3) among public property as its home ground, or to profit therefrom;
2. Where he/she permits the use of, or profiting from, sports facilities among public property to host an international sporting event or competition;
3. Where a professional sports team repairs or maintains the relevant sports facilities on its own;
4. Where it is deemed necessary by the head of the local government to encourage professional sports.
 Article 15 (Imposition of Terms and Conditions for Using, or Profiting from, Public Property)
(1) The head of a local government shall impose all of the following terms and conditions when permitting the use of, or profiting from, public property pursuant to Article 17 (5) of the Act:
1. The public property shall be made available for annual sporting events or official sports-related events hosted by the local government;
2. A reasonable fee shall be charged to local residents or organizations for using the public property, which shall be within the maximum user fee prescribed by ordinance of the local government;
3. Approval from the head of the local government shall be required to alter the area or size of the sports ground or the number of seating, among facilities within the public property, or to repair the parking areas within the public property;
4. Do not install any facility, including temporary structures, on the parking areas or facilities within the public property;
5. Other matters prescribed by ordinance of the local government shall be complied with to prevent any detriment to the purpose and use of the public property.
(2) Notwithstanding paragraph (1), the head of a local government needs not impose the terms and conditions provided for in paragraph (1) 4, if installing facilities within public property falls under any of the following cases;
1. Where facilities are installed on condition that they be donated to the relevant local government upon completion;
2. Where a person who intends to use or profit from the public property installs facilities upon approval from the head of the local government to use them for the period during which he/she is permitted to use or profit from such public property, on condition that he/she removes the facilities voluntarily or deposits money necessary for removal;
3. Where facilities are installed over the space above, on, or under, the land on which the public property stands.
 Article 16 (Negotiated Contracts)
The head of a local government may include the following in a negotiated contract concluded preferentially with a professional sports team pursuant to Article 17 (6) of the Act:
1. Matters relating to the annual user fee and entrustment fee for public property;
2. Matters relating to terms and conditions for permission to use or profit from public property, or for entrustment of administration thereof;
3. Other matters necessary to permit the use of, and profiting from, public property, or to entrust management thereof.
 Article 17 (Large-Scale Repair and Maintenance)
“Large-scale repair or maintenance prescribed by Presidential Decree” in the proviso to Article 17 (8) of the Act means repair or maintenance work which costs at least one billion won in total.
 Article 18 (Protection, etc. of Athletes’ Rights and Interests)
(1) The Minister of Culture, Sports and Tourism shall establish policies relating to the following activities to protect athletes’ rights and interests and to ensure the sound development of the sports industry pursuant to Article 18 of the Act:
1. Creating fair business practices in the sports industry;
2. Education and PR efforts to establish a culture for sound professional sports;
3. Preventing match rigging, violence, doping, etc.;
4. Preventing athletes from getting injured and providing post-retirement career support;
5. Establishing an agency system for improving athletes’ rights and interests;
6. Establishing a system for managing athletes’ careers;
7. Others the Minister of Culture, Sports and Tourism deems necessary to protect athletes’ rights and interests and to ensure the sound development of the sports industry.
(2) The Minister of Culture, Sports and Tourism may request a sports organization and an athletic affiliate as defined in subparagraphs 9 and 11 of Article 2 of the National Sports Promotion Act to take measures necessary to perform the activities referred to in the subparagraphs of paragraph (1), if deemed necessary.
 Article 19 (Support for International Exchanges and Entry into Overseas Markets)
(1) The Minister of Culture, Sports and Tourism may entrust the activities referred to in the subparagraphs of Article 19 (1) of the Act to any of the following organizations, or may authorize any of the following organizations to perform such activities as an agent:
1. The Korea Sports Promotion Foundation;
2. The Korea Trade-Investment Promotion Agency established under the Korea Trade-Investment Promotion Agency Act;
3. A support center;
4. A business entities’ association established under Article 20 of the Act.
(2) Upon entrusting the affairs to an organization or upon authorizing an organization to serve as an agent under paragraph (1), the Minister of Culture, Sports and Tourism shall give public notice of the name of such organization and the details of the activities.
 Article 20 (Authorization to Establish Business Entities’ Association)
(1) A person who intends to obtain authorization to establish a business entities’ association pursuant to Article 20 of the Act shall file an application therefor with the Minister of Culture, Sports and Tourism, as prescribed by Ordinance of Ministry of Culture, Sports and Tourism.
(2) Upon receipt of an application filed under paragraph (1), the Minister of Culture, Sports and Tourism shall authorize the establishment of a business entities’ association if the following requirements are met:
1. An applicant’s business plan shall be in line with the purpose of promoting the sports industry;
2. An applicant shall have a funding plan to conduct its business;
3. At least 50/100 of all business entities in each type of business shall participate.
(3) Upon receipt of an application filed under paragraph (1), the Minister of Culture, Sports and Tourism shall determine whether to authorize the establishment of a business entities’ association and notify the applicant of his/her decision within 30 days from the receipt of the application.
(4) Upon authorizing the establishment of a business entities’ association pursuant to paragraph (2), the Minister of Culture, Sports and Tourism shall give public notice of such authorization on the web-site of the Ministry of Culture, Sports and Tourism.
 Article 21 (Delegation and Entrustment of Authority)
(1) The Minister of Culture, Sports and Tourism shall delegate the following authority to the Special Metropolitan City Mayor, the Metropolitan City Mayor, Special Self-Governing City Mayor, Do Governor, and the Special Self-Governing Province Governor pursuant to Article 22 of the Act:
1. Authority to designate promotion facilities under Article 11 of the Act;
2. Authority to revoke the designation of promotion facilities under Article 12 of the Act;
3. Authority to hold hearings under Article 21 of the Act (limited to revocation of the designation of promotion facilities under Article 12 of the Act).
(2) The Minister of Culture, Sports and Tourism shall entrust the duties relating to funding technological development under Article 8 (1) of the Act to the Korea Sports Promotion Foundation pursuant to Article 22 of the Act.
 Article 22 (Awarding Prizes)
(1) To award a prize under Article 23 (1) of the Act, the Minister of Culture, Sports and Tourism shall specify the details of the prize, methods and procedures for the selection of the awardee, criteria for awarding the prize, and other related matters, and shall announce the same on the web-site of the Ministry of Culture, Sports and Tourism.
(2) The Minister of Culture, Sports and Tourism may award prize money, etc. relating to promoting the sports industry to an individual, organization, enterprise, or entity selected as an awardee.
 Article 23 (Review of Regulations)
The Minister of Culture, Sports and Tourism shall review whether the requirements for authorization to establish a business entities’ association, provided for in Article 20 (2) 3, are appropriate every three years, counting from January 1, 2016 (referring to the period that ends on the day before January 1 of every third year) and shall take measures, such as making improvements.
ADDENDUM
This Decree shall enter into force on August 4, 2016.
ADDENDUM <Presidential Decree No. 29950, Jul. 2, 2019>
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)