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ACT ON ASSISTANCE TO KOREAN OFF-SHORE ENTERPRISES IN REPATRIATION

Act No. 12010, Aug. 6, 2013

Amended by Act No. 16805, Dec. 10, 2019

 Article 1 (Purpose)
The purpose of this Act is to contribute to the development of the national economy by facilitating their repatriation to Korea through preparation of a system to efficiently assist Korean off-shore enterprises in repatriation to and resettlement in Korea.
 Article 2 (Definitions)
The definitions of the terms used in this Act shall be as follows: <Amended by Act No. 16105, Dec. 10, 2019>
1. The term “off-shore enterprise” means an enterprise that meets all of the following requirements:
(a) The enterprise shall be under the de facto control of a national of the Republic of Korea (including Korean expatriates with the qualification granted for sojourn as overseas Koreans under Article 5 of the Act on the Immigration and Legal Status of Overseas Koreans) or a corporation incorporated under the laws of the Republic of Korea (including foreign capital-invested companies as defined in subparagraph 6 of Article 2 of the Foreign Investment Promotion Act), as prescribed by Presidential Decree;
(b) The enterprise shall have engaged in a manufacturing business and information and communications business classified according to the Korean Standard Industrial Classification, publicly notified by the Commissioner of the Statistics Korea pursuant to Article 22 of the Statistics Act, and a knowledge services industry pursuant to Article 8 (2) of the Industrial Development Act for at least two consecutive years at its own overseas place of business or through an overseas place of business owned by another enterprise under the de facto control of the former enterprise;
2. The term "place of business" means a place where production activities are performed with the production facilities necessary for carrying out the projects under subparagraph 1 (b);
3. The term “repatriation” means that an off-shore enterprise liquidates, transfers, or downsizes its overseas place of business (including where an off-shore enterprise without a place of business in Korea maintains its overseas place of business; the same shall apply hereinafter) and newly establishes or expands its place of business in Korea to produce products or services that are identical with or similar to those produced in the overseas place of business, as prescribed by Presidential Decree;
4. The term “repatriating enterprise” means either of the following enterprises:
(a) An enterprise that has been repatriated to Korea and possesses a newly established or expanded place of business in Korea;
(b) An enterprise in the course of repatriation to Korea, following the procedure prescribed by Presidential Decree for the liquidation, transfer, or downsizing of its overseas place of business.
 Article 3 (Duties of State and Local Governments)
The State and local governments shall formulate and implement policies necessary to assist off-shore enterprises in repatriation to, and resettlement in, Korea.
 Article 4 (Relationship with Other Statutes)
Except as otherwise provided in any other statutes, the selection of, and assistance to, off-shore enterprises and repatriating enterprises shall be governed by the provisions of this Act.
 Article 5 (Formulation and Implementation of Plans for Assisting Repatriating Enterprises)
(1) The Minister of Trade, Industry, and Energy shall formulate and implement a plan for assisting repatriating enterprises (hereinafter referred to as “assistance plan”) every five years to efficiently accomplish the purposes of this Act. <Amended by Act No. 16805, Dec. 10, 2019>
(2) The assistance plan shall include the following:
1. Basic direction-setting for policies on assistance to repatriating enterprises;
2. Current conditions of, and prospects for, the management of off-shore enterprises;
3. Matters concerning demand for repatriating enterprises by industry;
4. A scheme to encourage off-shore enterprises to repatriate;
5. Matters concerning enhancing the competitiveness of repatriating enterprises;
6. Other matters specified by Presidential Decree to assist repatriating enterprises.
(3) The Minister of Trade, Industry, and Energy may request related agencies to submit data to formulate the assistance plan, and the agencies in receipt of a request to submit data shall comply therewith, except in special circumstances.
 Article 5-2 (Formulation of Implementation Plan)
(1) In compliance with the assistance plan, the Minister of Trade, Industry and Energy shall establish an implementation plan (hereinafter referred to as “implementation plan”) to support repatriating enterprises every year and notify the heads of related central administrative agencies.
(2) The heads of related central administrative agencies shall promote matters related to the relevant business among the implementation plans notified pursuant to paragraph (1), and submit the performance results of the previous year's implementation plan to the Minister of Trade, Industry and Energy every year.
(3) Matters necessary for the establishment and notification of an implementation plan and the procedure and method for submission of the promotion result of the plan shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 16805, Dec. 10, 2019]
 Article 6 (Committee for Assisting Repatriating Enterprises)
(1) In order to deliberate and decide on important matters related to assisting off-shore enterprises in repatriating to Korea, the Support Committee for Domestic Repatriating Enterprises (hereinafter referred to as the "Committee") shall be established under the Ministry of Trade, Industry and Energy.
(2) The Committee shall deliberate and decide upon the following matters:
1. Formulation and revision of the assistance plan (excluding minor matters specified by Presidential Decree);
2. Matters concerning the improvement of a system for the support for repatriating enterprises;
3. Matters concerning financial assistance to repatriating enterprises;
4. Matters concerning site location assistance for repatriating enterprises;
5. Matters concerning designation of industrial complexes under Article 16 (3);
6. Other matters specified by the chairperson to assist repatriating enterprises.
(3) The Committee shall be comprised of not more than 15 members, including one chairperson that is the Minister of Trade, Industry and Energy.
(4) Except as provided in paragraphs (1) through (3), matters necessary for the composition and operation of the Committee shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 16805, Dec. 10, 2019]
 Article 7 (Selection of Repatriating Enterprises Eligible for Assistance)
(1) In order to assist off-shore enterprises in repatriation to, and resettlement in, Korea, the Minister of Trade, Industry, and Energy may select enterprises that meet all of the following requirements as repatriating enterprises eligible for assistance, from among repatriating enterprises:
1. An enterprise that has never accepted foreign investment under the Foreign Investment Promotion Act;
2. An enterprise that has downsized its overseas place of business in compliance with the guidelines prescribed by Ordinance of the Ministry of Trade, Industry and Energy, if the enterprise has downsized its overseas place of business;
3. Other requirements prescribed by Presidential Decree to achieve the objectives of policies on assistance to repatriating enterprises.
(2) An enterprise that intends to be selected as a repatriating enterprise eligible for assistance under paragraph (1) shall file an application with the Minister of Trade, Industry, and Energy, along with all the following documents, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy:
1. A report on the current conditions of overseas and domestic places of business;
2. A repatriation plan in regard to the liquidation, transfer, or downsizing of the overseas place of business and the establishment of expansion of the domestic place of business;
3. Other documents specified by Presidential Decree.
(3) If an enterprise is in the course of repatriation, the Minister of Trade, Industry, and Energy may select the enterprise as a repatriating enterprise eligible for assistance on the following conditions: In such cases, the relevant enterprise shall include its plan to fulfill such conditions in the repatriation plan referred to in paragraph (2):
1. If the enterprise has not completed establishing or expanding its domestic place of business, it shall complete establishing or expanding the domestic place of business by the deadline set by the Minister of Trade, Industry, and Energy;
2. If the enterprise has not finalized liquidating or transferring its overseas place of business, it shall complete liquidating or transferring the overseas place of business by the deadline set by the Minister of Trade, Industry, and Energy;
3. If the enterprise has not completed downsizing its overseas place of business, it shall downsize the overseas place of business by the deadline set by the Minister of Trade, Industry, and Energy in compliance with the guidelines determined by the Minister of Trade, Industry, and Energy;
4. Other conditions that the Minister of Trade, Industry, and Energy deems necessary for achieving the policy objectives for the system to assist repatriating enterprises and for effectively assisting repatriating enterprises.
(4) Upon receipt of an application filed under paragraph (2), the Minister of Trade, Industry, and Energy shall determine whether to select the applicant as a repatriating enterprise eligible for assistance, as prescribed by Presidential Decree, and shall issue a letter of confirmation to the enterprise so selected as a repatriating enterprise eligible for assistance, as prescribed by Ordinance of the Ministry of Trade, Industry and Energy.
(5) If a change occurs with respect to a repatriation plan detailing the liquidation, transfer, or downsizing of its overseas place of business or the establishment or expansion of its domestic place of business or any other matter specified by Presidential Decree, the repatriating enterprise selected as one eligible for assistance under paragraph (4), shall notify the Minister of Trade, Industry, and Energy of the change.
 Article 8 (Revocation of Selection of Repatriating Enterprises Eligible for Assistance)
(1) If a repatriating enterprise selected as eligible for assistance falls under any of the following case, the Minister of Trade, Industry, and Energy may revoke the eligibility of the enterprise selected as eligible for assistance: Provided, That the eligibility of such enterprise must be revoked in cases falling under subparagraph 1 or 2:
1. If the enterprise files its application for selection by fraud or other improper means;
2. If the repatriating enterprise eligible for assistance closes its business or fails to operate the newly established or expanded place of business after repatriation or at least two consecutive years;
3. If any description in the application is different from the facts;
4. If the enterprise fails to comply with the repatriation plan under Article 7 (2) 2;
5. If the enterprise fails to meet the requirements for selection provided for in Article 7 (1) as a consequence of a change notified pursuant to Article 7 (5);
6. If the enterprise fails to meet any requirement prescribed by Presidential Decree in circumstances similar to those referred to in subparagraphs 1 through 5.
(2) If the Minister of Trade, Industry, and Energy revokes the eligibility of a repatriating enterprise as eligible for assistance or if a significant change that affects the scope of assistance occurs, the Minister of Trade, Industry, and Energy shall notify the relevant enterprise, agencies, and local government of such revocation or change.
(3) When the Minister of Trade, Industry, and Energy intends to revoke selection under paragraph (1), he/she shall hold a hearing.
 Article 9 (Surveys on Actual Conditions)
(1) The Minister of Trade, Industry, and Energy may conduct fact-finding surveys on off-shore enterprises and repatriating enterprises and collate and prepare statistical data in order to formulate and implement the assistance plan and the implementation plan. <Amended by Act No. 16805, Dec. 10, 2019>
(2) In order to effectively implement the system for selecting and assisting repatriating enterprises eligible for assistance, the Minister of Trade, Industry, and Energy may conduct fact-find surveys on the current situation, etc. of overseas and domestic places of business of repatriating enterprises, selected under this Act as eligible for assistance.
(3) If necessary for conducting fact-finding surveys and for collating and compiling statistical data under paragraphs (1) and (2), the Minister of Trade, Industry, and Energy may request related agencies to submit data. In such cases, the related agencies in receipt of a request to submit data shall comply therewith, except in special circumstances.
(4) No one who performs a duty related to fact-finding surveys or the collation and compilation of statistical data under paragraphs (1) through (3) shall divulge information related to any trade secret of the relevant enterprise or use such information for any purpose other than the specified purpose for which it is provided.
 Article 10 (Entrustment of Affairs)
The Minister of Trade, Industry, and Energy may partially entrust the business affairs related to the selection of repatriating enterprises eligible for assistance and the revocation of such selection, including the acceptance of documents and the verification of facts in the documents filed, and the fact-finding surveys under Article 9 to the Korea Trade-Investment Promotion Agency under the Korea Trade-Investment Promotion Agency Act (hereinafter referred to as “Korea Trade-Investment Promotion Agency”), as prescribed by Presidential Decree.
 Article 11 (Tax Reduction or Exemption)
The State and local governments may grant a tax exemption or reduction to repatriating enterprises eligible for assistance to assist off-shore enterprises in repatriating to Korea, as provided for in the Restriction of Special Taxation Act, Local Tax Act, Customs Act, or other relevant statutes.
 Article 12 (Financial Assistance)
(1) The State or a local government may assist a repatriating enterprise eligible for assistance in obtaining loans and financing, taking into consideration the scale of jobs created, whether the enterprise engages in an advanced type of business, the appropriateness of site location, etc.
(2) The State or a local government may subsidize a repatriating enterprise eligible for assistance for purchase and lease costs of land and factories or facility investments, as prescribed by Presidential Decree, if the enterprise establishes or expands its place of business in an area specified by Presidential Decree, taking into consideration the scale of business, etc. <Amended by Act No. 16805, Dec. 10, 2019>
 Article 13 (Assistance with Sites)
The State or a local government may supply an industrial complex as defined in subparagraph 8 of Article 2 of the Industrial Sites and Development Act preferentially to repatriating enterprises eligible for assistance.
 Article 13-2 (Lease of State or Public Property)
(1) The Minister of Economy and Finance, the heads of central government agencies that manage State-owned property, the heads of local governments, the heads of public institutions operated under the Act on the Management of Public Institutions (hereinafter referred to as "public institutions") or the heads of local public enterprises pursuant to the Local Public Enterprises Act (excluding local government-directly operated enterprises; hereinafter referred to as "local public enterprises" in this Article) may use, make profits, or loan (hereinafter referred to as "lease") land, factories, or other property (hereinafter referred to as "land, etc.") in a region prescribed by Presidential Decree, owned by the State, a local government, public institution, or local public enterprise (hereinafter referred to as "the State, etc.") to repatriating enterprises by a negotiated contract, notwithstanding the related provisions prescribed in any of the following Acts:
(2) Where land, etc. owned by the State, etc. are leased under paragraph (1), the lease term referred to in subparagraphs 1 through 5 of the same paragraph may be set within a maximum of 50 years, notwithstanding the following provisions. In such cases, the lease term may be renewed, and the period of renewal shall not exceed the period specified in the former part at each time of renewal:
(3) Where land owned by the State or a local government is leased under paragraph (1), a factory or other permanent facilities may be built on such land, notwithstanding Article 18 (1) of the State Property Act and Article 13 of the Public Property and Commodity Management Act. In such cases, the condition that the relevant facility be donated to the State or the local government, or returned after being restored to its original state, at the end of the lease term shall be attached, in consideration of the type, etc. of the facility.
[This Article Newly Inserted by Act No. 16805,Dec. 10, 2019]
 Article 13-3 (Reduction of or Exemption from Rent for State or Public Property)
(1) Where land, etc. owned by the State or a local government are leased pursuant to Article 13-2 (1), the rent falling under Article 13-2 (1) 1 and 2 may be collected in accordance with the rates and calculation methods prescribed by Presidential Decree, notwithstanding the provisions of the following subparagraphs:
(2) Where land, etc. owned by the State, which fall under any of the following, are leased to a repatriating enterprise, the Minister of Economy and Finance or the head of a central government agency that manages State property may reduce or exempt the rent for the relevant land, etc. , as prescribed by Presidential Decree, notwithstanding Article 38 (7) of the Industrial Sites and Development Act:
1. Land, etc. located in a national industrial complex under Article 6 of the Industrial Sites and Development Act;
2. Land, etc. located in a general industrial complex, urban high-tech complex, and agro-industrial complex designated under Articles 7, 7-2, and 8 of the Industrial Sites and Development Act.
(3) Where land, etc. owned by a local government are leased to a repatriating enterprise, the head of a local government may reduce or exempt the rent for the relevant land, etc. as prescribed by Presidential Decree, notwithstanding Articles 22, 24, 32, and 34 of the Public Property and Commodity Management Act.
(4) Where land, etc. leased with the rent reduced or exempted under paragraphs (1) through (3) are located in an industrial complex under subparagraph 8 of Article 2 of the Industrial Sites and Development Act, the lease term may be set within a maximum of 50 years, notwithstanding Article 38 (7) of the same Act.
(5) The lease term referred to in paragraph (4) may be renewed. In such cases, the renewed term shall not exceed the term provided for in paragraph (4), at each time of renewal.
[This Article Newly Inserted on Dec. 10, 2019]
 Article 13-4 (Sale of State or Public Property)
(1) The State, etc. may sell their land, etc. to a repatriating enterprise by a negotiated contract, notwithstanding the relevant provisions of any Act falling under any subparagraph of Article 13-2 (1).
(2) Where it is deemed difficult for a buyer to pay the purchase price at once when selling land, etc. under paragraph (1) to a repatriating enterprise, the payment date may be postponed or payment in installments may be allowed as prescribed by Presidential Decree, notwithstanding Article 50 of the State Property Act and Article 37 of the Public Property and Commodity Management Act.
[This Article Newly Inserted by Act No. 16805Dec. 10, 2019]
 Article 13-5 (Cancellation of Sale of State or Public Property)
(1) Where a repatriating enterprise, etc. which have purchased land, etc. by a negotiated contract pursuant to Article 13-4 (1) fall under any of the following, the State, etc. may terminate or cancel the contract for the sale of the land, etc.: Provided, That in cases of subparagraph 1 or 3, this shall not apply where the State, etc. order the correction thereof and then the relevant repatriating enterprise, etc. comply with such order within a period prescribed by Ordinance of the Ministry of Trade, Industry and Energy:
1. Where the repatriating enterprise, etc.is in arrears with payment of the purchase price;
2. Where the repatriating enterprise, etc. are found to have concluded the relevant contract by making a false statement or submitting false evidential documents or by other improper means;
3. Where the repatriating enterprise, etc. fail to commence a business by the due date of commencement under the relevant negotiated contract without any special circumstances, after they have concluded the contract;
4. Where the designation of a repatriating enterprise is revoked pursuant to Article 8.
5. Where the termination or cancellation of the relevant contract is deemed necessary after consultation between the State, etc. and the repatriating enterprise, etc.
(2) Where the State, etc. sell land, etc. pursuant to Article 13-4 (1), the relevant repatriating enterprise, etc. shall register a special agreement stating that the sales contract may be canceled where any ground under paragraph (1) 2 through 5 occurs.
(3) Where a contract is terminated or canceled under paragraph (1), the State, etc. shall take necessary measures to recover the rights to the relevant land, etc., without delay.
[This Article Newly Inserted by Act No. 16805, Dec. 10, 2019]
 Article 14 (Assistance in Human Resources)
(1) The State or a local government may provide institutional and administrative assistance to repatriating enterprises eligible for assistance for the smooth referral of human resources to such enterprises.
(2) The State or a local government may grant employment subsidies to repatriating enterprises eligible for assistance in order to smoothly secure human resources and enhance job creation effects in Korea.
 Article 15 (Assistance in Liquidation, etc. of Overseas Places of Business)
The State or a local government may assist off-shore enterprises in the liquidation, transfer, or downsizing of their overseas places of business for smooth repatriation.
 Article 16 (Assistance to Enterprises Repatriating Together)
(1) When at least two repatriating enterprises eligible for assistance meet both of the following requirements in repatriating together, the State or the competent local government may establish common facilities and provide necessary assistance, taking into consideration the job creation effects in Korea, the contribution to the regional economy, etc.:
1. The types of business in which such enterprises engage shall be identical, similar, or related;
2. The newly established or expanded domestic places of business shall be close to one another.
(2) If the State or a local government finds it necessary to change the types of business eligible for taking occupancy in an industrial complex for the smooth supply of industrial complexes to repatriating enterprises together, it may reflect such change in the master plan for the management of industrial complexes formulated under Article 33 of the Industrial Cluster Development and Factory Establishment Act.
(3) If the Minister of Trade, Industry, and Energy deems it necessary for the smooth repatriation of repatriating enterprises together, he/she may request the designating authority of industrial complexes to designate an industrial complex for repatriating enterprises together under the Industrial Sites and Development Act.
(4) In order to improve the effects of establishing industrial clusters through repatriating enterprises together, the Minister of Trade, Industry, and Energy may allow repatriating enterprises together to participate in the programs implemented pursuant to Article 22-3 of the Industrial Cluster Development and Factory Establishment Act to enhance the competitiveness of industrial clusters.
 Article 17 (Establishment of Support Center for Repatriating Enterprises)
(1) A support center for repatriating enterprises shall be established within the Korea Trade-Investment Promotion Agency to comprehensively provide repatriating enterprises with consulting, guidance, public relations, surveys, research and other assistance.
(2) If the president of the Korea Trade-Investment Promotion Agency deems it necessary for providing services related to repatriating enterprises, he/she may request related agencies to dispatch executives and employees of the related agencies to the support center for repatriating enterprises.
(3) Matters necessary for the organization, management, and supervision of the support center for repatriating enterprises under paragraph (1) shall be prescribed by Presidential Decree.
(4) The support center may handle civil petitions on the support for repatriating enterprises including receiving documents required for the application for assistance pursuant to Articles 11 through 13, 13-2 through 13-5, and 14 through 16, and transferring those documents to agencies that handle them. <Newly Inserted by Act No. 16805, Dec. 10, 2019>
 Article 18 (Legal Fiction as Public Officials for Purposes of Penalty Provisions)
The executive officers and employees of the Korea Trade-Investment Promotion Agency that engage in business affairs entrusted by the Minister of Trade, Industry, and Energy shall be deemed public officials for purposes of penal provisions of Articles 127 and 129 through 132 of the Criminal Act.
 Article 19 (Penalty Provisions)
Each of the following persons shall be punished by imprisonment with labor for up to three years or by a fine not exceeding 30 million won:
1. A person who improperly obtains a tax exemption or reduction under Article 11 or financial assistance under Article 12 by making a misrepresentation in any document referred to in Article 7 (2);
2. A person who divulges information related to any trade secret of an enterprise he/she has become aware of in the course of performing his/her duties or appropriates such information for any purpose other than the official purpose, in violation of Article 9 (4).
 Article 20 (Joint Penalty Provisions)
Where a representative of a corporation or an agent of, or employee of or others employed by of a corporation or individual commits an offence under Article 19, in connection with business of the corporation or the individual, not only shall such offender be punished accordingly, but the corporation or the individual also shall be punished by a fine under each relevant Article: Provided, That this shall not apply where such corporation or individual has not been negligent in giving due attention to and supervision over the relevant duties to prevent such violation.
 Article 21 (Administrative Fines)
(1) Any person who fails to respond properly to a fact-finding survey conducted under Article 9 (2) or refuses, interferes with, or evades such fact-finding survey shall be punished by administrative fine not exceeding 10 million won.
(2) Administrative fines under paragraph (1) shall be imposed and collected by the Minister of Trade, Industry, and Energy, as prescribed by Presidential Decree.
ADDENDA
Article 1 (Enforcement Date)
This Article shall enter into force four months after the date of its promulgation.
Article 2 (Applicability to Repatriating Enterprises)
This Act shall also apply retroactively to enterprises that established or expanded their domestic places of business on or after January 1, 2012.
Article 3 (Special Exception Following Retroactive Application)
In applying Article 7 (2) 2 pursuant to Article 2 of the Addenda to enterprises that established or expanded their domestic places of business on or after January 1, 2012 for repatriating the part regarding the establishment or expansion of the domestic place of business in the repatriation plan shall be substituted by documents certifying relevant facts.
ADDENDA <Act No. 16805, Dec. 10, 2019>
Article 1 (Enforcement Date)
This Decree shall enter into force three months after the date of its promulgation.
Article 2 (Applicability to Assistance Plan for Repatriating Enterprises)
The amended provisions of Article 5 (1) shall apply to assistance plans for repatriating enterprises formulated after this Act enters into force.