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ACT ON PROMOTION OF UTILIZATION OF DRONES AND CREATION OF INFRASTRUCTURE THEREFOR

Act No. 16420, Apr. 30, 2019

CHAPTER I GENERAL PROVISIONS
 Article 1 (Purpose)
The purpose of this Act is to lay the foundation for the development of the drone industry and contribute to providing more convenience to people and developing the national economy through the promotion of the drone industry by providing such matters as promoting the utilization of drones, laying the foundation therefor, and the operation and management of drone systems.
 Article 2 (Definitions)
(1) The definitions of the terms used in the Act are as follows:
1. The term "drone" means an apparatus among flying vehicles operable with no pilot onboard that meets the standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport and falls under any of the following:
(a) An unmanned aerial vehicle referred to in subparagraph 3 of Article 2 of the Aviation Safety Act;
(b) An unmanned aircraft referred to in subparagraph 6 of Article 2 of the Aviation Safety Act;
(c) Any other flying vehicle operable by any of the means prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as remote control or automatic or autonomous operation;
2. The term "drone system" means a combination of a drone, a telecommunications system, a ground control center (including an airfield and pilots), and a navigation control and support system for organic and systematic flights of drones;
3. The term "drone industry" means the industry relating to the development, management, operation, utilization, etc. of drone systems;
4. The term "drone rental service provider" means any person engaged in the businesses specified by Ordinance of the Ministry of Land, Infrastructure and Transport, such as an ultra-light aircraft rental service defined in subparagraph 23 of Article 2 of the Aviation Business Act, who uses drones for purposes of transportation, crop dusting, and photography, and the like to meet other persons' needs, on a paid basis;
5. The term "drone traffic management" means management services required for flights of drones from takeoff to landing, including assistance in various kinds of work such as reporting and approval required for flights of drones, the provision of information necessary for flights, and the management of air routes.
(2) Except as otherwise provided in this Act, the definitions of Article 2 of the Aviation Safety Act and of Article 2 of the Aviation Business Act shall apply to terms other than those defined in paragraph (1).
 Article 3 (Support for Drone Industry)
The State and local governments may provide the drone industry with administrative, financial, and technical support in order to develop the drone industry into a sustainable economic growth engine, establish a culture of collaboration among businesses, and create a sound industrial ecosystem.
 Article 4 (Relationship to Other Statutes)
With respect to matters provided by this Act regarding promoting the utilization of drones and laying the foundation therefor, this Act shall prevail over other statutes.
CHAPTER II SYSTEM FOR IMPLEMENTING POLICIES
 Article 5 (Establishment of Master Plans for Development of Drone Industry)
(1) The Government shall establish and implement a master plan for fostering and developing the drone industry (hereinafter referred to as the "master plan") every five years in accordance with the procedures prescribed by Presidential Decree.
(2) The master plan shall include:
1. The present situation and future prospects of the drone industry;
2. Basic direction-setting for policies to foster the drone industry;
3. Measures for fostering the drone industry by sector;
4. Assistance in research and development for fostering the drone industry;
5. Improvement of systems for fostering the drone industry;
6. Protection of users in relation to the drone industry;
7. International cooperation in the drone industry and assistance in entering overseas markets;
8. Investments required for fostering the drone industry and a financing plan therefor;
9. Other matters necessary for fostering the drone industry.
(3) In order to establish the master plan, the Government may request the heads of relevant central administrative agencies, the Special Metropolitan City Mayor, Metropolitan City Mayors, Special Self-Governing City Mayors, Do Governors, and Special Self-Governing Do Governors (hereinafter referred to as "Mayors/Do Governors") and the heads of public institutions (referring to public institutions defined in Article 4 of the Act on the Management of Public Institutions; hereinafter the same shall apply) to provide relevant information. In such cases, the head of each agency or institution in receipt of a request to provide information shall comply therewith, unless good cause to the contrary exists.
(4) When intending to establish the master plan or amend any important matters thereof as prescribed by Presidential Decree, the Government shall consult with the heads of relevant central administrative agencies and Mayors/Do Governors thereon.
(5) Upon establishing or amending the master plan, the Government shall publicly notify the content thereof immediately through the Official Gazette and shall notify the heads of relevant central administrative agencies and Mayors/Do Governors thereof.
 Article 6 (Fact-Finding Survey on Drone Industry)
(1) The Government may conduct a fact-finding survey on the entire drone industry every year in order to effectively formulate and implement policies on the drone industry.
(2) When conducting a fact-finding survey under paragraph (1), the Government may include a medium- to long-term demand forecast for drone systems in the public sector and the private sector.
(3) If necessary to conduct a fact-finding survey under paragraph (1) and develop a demand forecast under paragraph (2), the Government may request the heads of central administrative agencies, Mayors/Do Governors and the heads of public institutions to provide the necessary information, and the head of each agency or institution shall comply with such request, unless good cause to the contrary exists.
(4) Matters necessary as to the subject matters, methods, and procedures for the fact-finding survey under paragraphs (1) through (3) shall be prescribed by Presidential Decree.
 Article 7 (Organization and Operation of Consultative Body on Drone Industry)
(1) The Government may organize and operate a consultative body on the drone industry, comprised of public officials in state agencies and local governments who are in charge of the affairs relating to the drone industry, such as the operation and management of drones, as well as executive officers and employees of public institutions, business entities engaging in the drone industry and others.
(2) Matters necessary for the organization, operation, etc. of the consultative body on the drone industry shall be prescribed by Presidential Decree.
 Article 8 (Request to Public Institutions for Utilization of Drones)
In order to further vitalize the drone industry, the Minister of Land, Infrastructure and Transport may request the heads of central administrative agencies, Mayors/Do Governors, and the heads of public institutions to introduce and utilize drone systems.
CHAPTER III FOSTERING OF DRONE INDUSTRY
 Article 9 (Researching and Developing Drone Systems)
(1) The Government may implement research and development projects necessary for developing technology for drone systems, as prescribed by Presidential Decree, in order to promote the development of technology for drone systems and efficiently implement the master plan.
(2) In implementing research and development projects under paragraph (1), the Government may provide the assistance necessary for interconnection and cooperation among researchers, developers, producers, and users of drone systems.
(3) The Government may provide the assistance necessary for promoting joint research among public institutions, corporations, organizations, and universities in order to enhance the outcomes of research on and development of drone systems.
(4) Matters necessary for the assistance provided under paragraphs (2) and (3) shall be prescribed by Presidential Decree.
 Article 10 (Designation and Management of Drone Special Free Zones)
(1) The Minister of Land, Infrastructure and Transport may designate and manage drone special free zones (hereinafter referred to as "drone special free zones") in order to promote the practical use, commercialization, etc. of drone systems.
(2) For the purposes of practical use, commercialization, etc. of drones in drone special free zones under paragraph (1), the Minister of Land, Infrastructure and Transport may defer, exempt, or simplify the certification, permission, approval, assessment, reporting, etc. under the following statutes:
1. Special certification of airworthiness under Article 23 of the Aviation Safety Act;
2. Permission for a flight of an unmanned aircraft under Article 68 of the Aviation Safety Act;
3. Permission for a test flight or safety certification under Article 124 of the Aviation Safety Act;
4. Approval for flight under Article 127 of the Aviation Safety Act;
5. Approval for a special flight under Article 129 (5) of the Aviation Safety Act;
6. Conformity assessment under Article 58-2 of the Radio Waves Act.
(3) When the Minister of Land, Infrastructure and Transport intends to designate a drone special free zone under paragraph (1) or temporarily defer, exempt, or simplify certification, permission, approval, assessment, reporting, etc., he or she shall consult with the heads of relevant central administrative agencies thereon.
(4) Other matters necessary for the designation, operation, management, etc. of drone special free zones shall be prescribed by Presidential Decree.
 Article 11 (Designation and Management of Drone Demonstration Project Areas)
(1) The Minister of Land, Infrastructure and Transport may designate and manage drone demonstration project areas to facilitate the demonstration, testing, etc. of drone systems (hereinafter referred to as "drone demonstration project areas"), as prescribed by Presidential Decree.
(2) The Minister of Land, Infrastructure and Transport may provide any of the following persons with administrative and financial support:
1. A person flying drones to test the performance of drones and to develop drones;
2. A person flying drones for research on safety standards and the like;
3. Any other person specified by Ordinance of the Ministry of Land, Infrastructure and Transport.
 Article 12 (Encouragement of Business Startups)
The Government may provide the following administrative and financial support to promote and encourage business startups relating to the drone industry, as prescribed by Presidential Decree:
1. Lending loans for starting a new business;
2. Providing outcomes of research and development relating to drones;
3. Providing test equipment and facilities;
4. Other matters prescribed by Presidential Decree.
 Article 13 (Designation of and Support for Advanced Drone Technologies)
(1) The Minister of Trade, Industry and Energy may designate technologies advancing existing drone systems as advanced drone technologies (including products incorporating advanced drone technologies; hereinafter the same shall apply), as prescribed by Presidential Decree, in order to promote the development and utilization of technologies relating to the drone industry.
(2) The Minister of Trade, Industry and Energy may request the heads of relevant central administrative agencies, Mayors/Do Governors, and the heads of public institutions to preferentially purchase and use advanced drone technologies.
(3) The Minister of Small and Medium Enterprises and Startups may, at the request of the Minister of Trade, Industry and Energy, designate advanced drone technologies developed by small and medium enterprises (referring to small and medium enterprises defined in Article 2 of the Framework Act on Small and Medium Enterprises) as competing products under Article 6 of the Act on Facilitation of Purchase of Small and Medium Enterprise-Manufactured Products and Support for Development of Their Markets.
(4) In either of the following cases, the Minister of Trade, Industry and Energy may revoke the designation of a technology as an advanced drone technology or may suspend the effect of such designation for a specified period of up to three months: Provided, That the Minister of Trade, Industry and Energy must revoke the designation in cases falling under subparagraph 1:
1. Where a person has obtained a designation by fraud or other improper means;
2. Where the technology ceases to meet the standards prescribed by Presidential Decree for the designation of advanced drone technologies under paragraph (1).
(5) Matters necessary for the designation of advanced drone technologies under paragraph (1) and the revocation of designation and the like under paragraph (4) shall be prescribed by Presidential Decree.
 Article 14 (Legal Fiction of Certification)
(1) A person whose technology is designated as an advanced drone technology under Article 13 shall be deemed to have obtained or passed the following certification, assessment, and approval testing (hereinafter referred to as "certification, etc."):
1. Safety certification under Article 124 of the Aviation Safety Act;
2. Conformity assessment under Article 58-2 of the Radio Waves Act;
3. Testing of agricultural machinery for approval under Article 9 of the Agricultural Mechanization Promotion Act.
(2) If the matter referred to in any subparagraph of paragraph (1) is involved in determining the designation under Article 13, the Minister of Trade, Industry and Energy shall consult with the heads of relevant central administrative agencies in advance thereon, by attaching to the request for consultation the relevant documents submitted by the applicant for the designation under Article 13 as prescribed by Ordinance of the Ministry of Trade, Industry and Energy. In such cases, the heads of relevant central administrative agencies shall present their opinions within 30 days of receipt of the request, and they shall be deemed to have no objection, if no opinion is given within the period.
(3) If a person is deemed to have obtained certification, etc. under paragraph (1), he or she shall be exempted from fees imposed under relevant statutes.
 Article 15 (Protecting and Fostering Intellectual Property Rights)
(1) The Government shall prepare measures for protecting and fostering intellectual property rights in drone systems in order to protect and foster activities for research on drone systems and the drone industry.
(2) The Government may implement the following programs to protect intellectual property rights in drone systems:
1. Responding to and redressing infringement of intellectual property rights;
2. Providing educational programs and conducting publicity activities with regard to intellectual property rights;
3. Efficiently utilizing intellectual property rights;
4. Other activities prescribed by Presidential Decree.
(3) The Government may designate an institution or organization specialized in intellectual property rights, as prescribed by Presidential Decree, to implement the programs referred to in the subparagraphs of paragraph (2).
 Article 16 (Designation of Exemplary Business Entities)
(1) The Minister of Land, Infrastructure and Transport may designate, as exemplary business entities, persons from among drone rental service providers who have contributed to developing the drone industry and improving related services and safety levels and who meets the standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) The Minister of Land, Infrastructure and Transport may provide the persons designated as exemplary business entities with the support prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport, such as providing marks indicating that they are designated as exemplary business entities and streamlining administrative procedures.
(3) In any of the following cases, the Minister of Land, Infrastructure and Transport may revoke the designation of a person as an exemplary business entity or may suspend the effect of such designation for a specified period of up to three months: Provided, That the Minister of Land, Infrastructure and Transport must revoke the designation in cases falling under subparagraph 1:
1. If a person obtained the designation of an exemplary business entity by fraud or other improper means;
2. If a person ceases to meet the standards prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport for the designation of exemplary business entities under paragraph (1).
(4) Except as provided in paragraphs (1) through (3), matters necessary for the standards, procedures, etc. for the designation of exemplary business entities, the revocation of such designation, or the suspension of effects.
 Article 17 (Establishment and Operation of Drone Traffic Management System)
(1) The Minister of Land, Infrastructure and Transport may designate any of the following persons as an exclusive business entity to establish and operate a drone traffic management system in order to ensure safe and efficient operation of drones:
1. A public institution or an organization related to the drone industry, specified by Presidential Decree;
2. A stock company under the Commercial Act that meets the criteria prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport.
(2) An exclusive business entity designated under paragraph (1) may collect expenses incurred in the operation, management, etc. of the drone traffic management system from users of the drone traffic management system.
(3) In establishing and operating a drone traffic management system pursuant to paragraph (1), the Minister of Land, Infrastructure and Transport may designate and operate air routes for drones.
CHAPTER IV SUPPLEMENTARY PROVISIONS
 Article 18 (Training of Professional Workforce)
(1) The Government may implement training programs in order to train a professional workforce for the drone industry and to improve the quality of the workforce.
(2) The Government may designate, as an institution for training a professional workforce, a research institute, university, or any other institution or organization specified by Presidential Decree to conduct training programs under paragraph (1) and may provide necessary funds.
(3) Matters necessary for the training of a professional workforce, the establishment of plans for training programs and the requirements, procedures, etc. for the designation of institutions for training a professional workforce under paragraphs (1) and (2) shall be prescribed by Presidential Decree.
(4) In any of the following cases, the Government may revoke the designation of a person as an institution for training a professional workforce under paragraph (2): Provided, That the Government must revoke such designation in cases of subparagraph 1:
1. If he or she obtains the designation by fraud or other improper means;
2. If he or she fails to meet the requirements prescribed by Presidential Decree for designation for at least three successive months;
3. If he or she acknowledges completion of a training course for a person who has not completed the course.
 Article 19 (Development of Overseas Markets and International Cooperation)
(1) The Government may provide assistance in projects for the international exchange of related technologies and human resources, participation in international exhibitions, international standardization, international joint research and development, etc. in order to promote international cooperation of the drone industry and the development of overseas markets.
(2) The Government may authorize an institution or organization specified by Presidential Decree to perform the projects under paragraph (1) and may provide necessary funds.
 Article 20 (Hearings)
An administrative authority that intends to make any of the following dispositions shall hold hearings:
1. Revoking the designation of an advanced drone technology under Article 13 (4);
2. Revoking the designation of an exemplary business entity under Article 16 (3);
3. Revoking the designation of an institution for training a professional workforce under Article 18 (4).
 Article 21 (Delegation of Authority and Entrustment of Functions)
(1) The authority of the Minister of Land, Infrastructure and Transport under this Act may be partially delegated to the heads of agencies affiliated with the Ministry, as prescribed by Presidential Decree.
(2) The functions assigned to the Minister of Land, Infrastructure and Transport under this Act may be entrusted to the institutions or organizations publicly notified by the Minister of Land, Infrastructure and Transport as those having expertise in the drone industry, as prescribed by Presidential Decree.
 Article 22 (Fees)
(1) Any person referred to in either of the following subparagraphs shall pay fees to the Minister of Land, Infrastructure and Transport or the Minister of Trade, Industry and Energy: Provided, That fees for the functions delegated or entrusted under Article 21 shall be paid to the entrusted institution:
1. A person who intends to obtain a designation under this Act;
2. A person who applies for the issuance or reissuance of a certificate of designation, etc. under this Act.
(2) If a business trip is required for certification, etc., the travel expense for such business trip shall be paid by the applicant.
(3) Matters necessary for the guidelines for computing the fees under paragraph (1) and the travel expense under paragraph (2) and the procedure and methods for collecting them shall be prescribed by Ordinance of the Ministry of Land, Infrastructure and Transport (in cases of the designation of an advanced drone technology under Article 13, referring to Ordinance of the Ministry of Trade, Industry and Energy).
 Article 23 (Prohibition on Disclosing Confidential Information)
No person who performs or performed the functions entrusted under this Act shall disclose to a third party confidential information acquired in the course of performing such functions.
 Article 24 (Legal Fiction as Public Officials for Purposes of Penalty Provisions)
A person referred to in either of the following subparagraphs shall be deemed a public official in applying penalty provisions pursuant to Articles 129 through 132 of the Criminal Act:
1. An exclusive business entity under Article 17 (1);
2. An executive officer or employee of the institution or organization performing the functions entrusted by the Minister of Land, Infrastructure and Transport under Article 21 (2).
CHAPTER V PENALTY PROVISIONS
 Article 25 (Penalty Provisions)
(1) Any person who discloses to a third party confidential information acquired in the course of performing entrusted functions, in violation of Article 23, shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
(2) Any of the following persons shall be punished by imprisonment with labor for not more than two years or by a fine not exceeding 20 million won:
1. A person who had his or her technology designated as an advanced drone technology by fraud or other improper means, in violation of Article 13;
2. A person who obtained the designation of an exemplary business entity by fraud or other improper means, in violation of Article 16;
3. A person who obtained the designation of an institution for training a professional workforce by fraud or other improper means, in violation of Article 18.
 Article 26 (Joint Penalty Provisions)
If the representative of a corporation or an agent or employee of, or any other person employed, by the corporation or an individual commits any violation described in Article 23 in performing any work for the corporation or individual, the corporation or individual shall, in addition to punishing the violator accordingly, be punished by a fine prescribed in the relevant Article: Provided, That this shall not apply where the corporation or individual has not been negligent in giving due attention and supervision regarding the work to prevent such violation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Article 2 (Transitional Measure concerning Master Plan for Development of Drone Industry)
The plan deliberated on and adopted by the Aviation Policy Committee established pursuant to Article 4 of the Aviation Business Act for the development of the drone industry within five years before this Act enters into force shall be deemed a master plan established under Article 5 of this Act until December 31, 2022.