DEFENSE ACQUISITION PROGRAM ACT
Act No. 7845, Jan. 2, 2006
Amended by Act No. 8486, May 25, 2007
Act No. 8852, Feb. 29, 2008
Act No. 9561, Apr. 1, 2009
Act No. 10218, Mar. 31, 2010
Act No. 10907, Jul. 25, 2011
Act No. 11690, Mar. 23, 2013
Act No. 11713, Mar. 23, 2013
Act No. 12559, May 9, 2014
Act No. 12748, jun. 11, 2014
Act No. 12960, Jan. 6, 2015
Act No. 13243, Mar. 27, 2015
Act No. 13507, Sep. 1, 2015
Act No. 13777, Jan. 19, 2016
Act No. 13854, Jan. 27, 2016
Act No. 14182, May 29, 2016
Act No. 14422, Dec. 20, 2016
Act No. 14610, Mar. 21, 2017
Act No. 14609, Mar. 21, 2017
Act No. 14839, Jul. 26, 2017
Act No. 15051, Nov. 28, 2017
Act No. 15344, Jan. 16, 2018
Act No. 16671, Dec. 3, 2019
Act No. 16929, Feb. 4, 2020
Act No. 17165, Mar. 31, 2020
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to seek to strengthen the competitiveness of the defense industry, and to ultimately contribute to the promotion of the advanced strong military and development of the national economy, by prescribing matters concerning the execution of defense acquisition programs, such as the improvement of defense capabilities, promotion of the defense industry, procurement of munitions, etc., in order to establish a foundation for self-reliant national defense.
[This Article Wholly Amended on Mar. 31, 2010]
| Article 2 (Basic Principles) |
The basic principles of this Act are to expand systems and capabilities for the defense acquisition programs to ensure national security, and to maintain preparedness for self-reliant national defense and expand potential for economic growth by strengthening the competitiveness of the defense industry through securing of transparency, specialty, and efficiency of defense acquisition programs.
[This Article Wholly Amended on Mar. 31, 2010]
The terms used in this Act shall be defined as follows: <Amended on Apr. 1, 2009; May 9, 2014; Jan. 19, 2016; Mar. 21, 2017; Feb. 4, 2020>
| 1. | The term "defense force improvement project" means the purchasing and research and development including new development, improvement of performance, etc., of weapons systems for enhancing military force, and the installation, etc. of facilities incidental thereto; |
| 2. | The term "munitions" means materials acquired to be used and administered by the Ministry of National Defense and military units or organizations under the direct control of the Ministry, or army, navy, and air force (hereinafter referred to as "each service"), which are classified into weapons systems and force support systems; |
| 3. | The term "weapons systems" means the integration of weapons that show fighting capability in the battlefield, such as guided weapons, aircraft, naval vessels, etc., and all sorts of elements, such as equipment, parts, facilities, software, etc. necessary for the operation thereof, which are prescribed by Presidential Decree; |
| 4. | The term "force support system" means all sorts of elements, such as equipment, parts, facilities, software, other materials, etc. other than a weapons system; |
| 5. | The term "acquisition" means procurement of munitions by purchasing (including lease; hereinafter the same shall apply) or procurement through research, development, and manufacture; |
| 6. | The term "offset trade" means trade where a condition of reciprocal service, such as transfer of relevant knowledge, technology, etc., the overseas export of domestic weapons, equipment, parts, etc., is attached when purchasing weapons, equipment, etc. from abroad; |
| 7. | The term "defense materials" means materials designated pursuant to Article 34 among munitions; |
| 9. | The term "defense contractor" means an enterprise that manufactures defense materials, so designated pursuant to Article 35; |
| 9-2. | The term "general enterprise" means an enterprise which is not a defense contractor, which is related to the defense industry; |
| 9-3. | The term "general enterprise which has no relationship with the defense industry" means an enterprise which is not a defense contractor or a general enterprise, which supplies munitions; |
| 10. | The term "specialized research institute" means an organization entrusted by the Minister of the Defense Acquisition Program Administration with the research, development, testing, and measurement of defense materials, the manufacture and authorization of machinery and tools for testing defense materials, and the development of software relating to the business analysis of defense contractors or the defense industry; |
| 10-2. | The term "general research institute" means a research institute which is not a specialized research institute; |
| 11. | The term "defense industry facilities" means land and fixtures (including equipment and instruments) thereon, which are provided for the research, development, or manufacture of defense materials by defense contractors or specialized research institutes; |
| 12. | The term "munitions sales agency" means the business of intermediating or acting for a foreign enterprise throughout the course of the conclusion of a contract for the conclusion of the contract by and between the foreign enterprise and the Minister of the Defense Acquisition Program Administration and in the course of performance of the contract. |
| Article 4 (Relationship to Other Acts) |
Except for otherwise expressly provided for in other Acts regarding defense acquisition programs, the provisions of this Act shall apply.
CHAPTER II TRANSPARENCY AND SPECIALIZATION IN EXECUTION OF DEFENSE AQUISITION PROGRAMS
| Article 5 (Real-Name Policy System and Information Disclosure) |
| (1) | With regard to the determination or execution of major policies on defense acquisition programs, the Minister of National Defense and the Minister of the Defense Acquisition Program Administration shall implement the real-name policy system that records and preserves the matters, such as the post, rank, name, and opinion of the participants in the determination or implementation of major policies, various types of plans and reports, the details of discussions and conclusions of meetings, public hearings, etc. |
| (2) | In promoting defense acquisition programs, the Minister of National Defense and the Minister of the Defense Acquisition Program Administration shall disclose information on procedures and details of decision making. In such cases, the Official Information Disclosure Act shall apply to information disclosure. |
| (3) | Matters necessary for methods, etc. for implementing the real-name policy system pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| (4) | The Minister of National Defense and the Minister of the Defense Acquisition Program Administration shall submit, without delay, to the relevant Standing Committee of the National Assembly, the outcomes of analyses and evaluation, and outcomes of incorporating them into polices, in respect of defense force improvement projects, the total project cost of which is at least 500 billion won (50 billion won in cases of research and development), among the outcomes of analyses and evaluation conducted pursuant to Articles 23 and 24. <Newly Inserted on Mar. 31, 2010; May 9, 2014> |
| Article 6 (Integrity Pledge System and Ombudsman System) |
| (1) | To enhance transparency and fairness in the execution of defense acquisition programs, the Minister of National Defense and the Minister of the Defense Acquisition Program Administration shall request each of the following persons to submit a pledge of integrity, as prescribed by Presidential Decree. In such cases, he/she shall require persons specified in subparagraph 6 to submit a pledge of integrity, respectively, when they enter into a subcontract or sub-subcontract: <Amended on May 9, 2014; Jan. 19, 2016; Dec. 20, 2016; Mar. 21, 2017> |
| 1. | Public officials designated by the Minister of National Defense, from among public officials affiliated with the Ministry of National Defense, and public officials affiliated with the Defense Acquisition Program Administration; |
| 2. | Members of the Defense Acquisition Program Promotion Committee, subcommittees, and working committees under Articles 9 and 10; |
| 3. | Officers and staff of the Agency for Defense Development provided for in the Act on the Agency for Defense Development (hereinafter referred to as the "Agency for Defense Development") and the Defense Agency for Technology and Quality provided for in Article 32; |
| 4. | The representatives and executive officers of the following enterprises or research institutes participating in the relevant defense acquisition programs: |
| (a) | Defense contractors (hereinafter referred to as “defense contractors”); |
| (c) | General enterprises which have no relationship with the defense industry; |
| (d) | Specialized research institutes; |
| (e) | General research institutes; |
| 5. | The representative and executive officers of each munitions sales agent; |
| 6. | The representative and executive officers of each subcontractor (in cases of a contract for sale, referring to each supplier) who enters into a subcontract concerning a contract for defense acquisition program (including a contract for sale, and limited to the contract whose amount is at least the amount prescribed by Presidential Decree, which is at least one billion won) with a defense contractor, general enterprise, general enterprise which has no relationship with the defense industry, specialized research institute, or general research institute that enters into a contract for defense force improvement project or the acquisition of munitions (hereinafter referred to as "contract for defense acquisition program"), and the representative and executive officers of each sub-subcontractor (in cases of a contract for sale, referring to each supplier) that enters into a sub-subcontract concerning a contract for defense acquisition program (including a contract for sale, and limited to the contract whose amount is at least the amount prescribed by Presidential Decree, which is at least one billion won) with such subcontractor. |
| (2) | A pledge of integrity referred to in paragraph (1) shall contain the following: |
| 1. | Matters regarding prohibition, etc. of demands for, promises of, giving and receiving of valuables, entertainment, etc.; |
| 2. | Matters regarding prohibition, etc. of supply of specific information on defense acquisition programs; |
| 3. | Other matters prescribed by Presidential Decree to enhance the transparency and fairness of defense acquisition programs. |
| (3) | Where a person entrusted as a member of the Defense Acquisition Program Promotion Committee pursuant to Article 9 (4) fails to comply with the terms of the pledge of integrity, the Minister of National Defense shall relieve him/her of such entrustment. |
| (4) | To enhance transparency and fairness in the execution of defense acquisition programs, the Minister of the Defense Acquisition Program Administration may operate an ombudsman system which can investigate matters of civil appeal raised in the course of execution of defense acquisition programs and make a request, etc. for rectification or inspection. |
| (5) | A person eligible to be an ombudsman shall satisfy any of the following qualifications: Provided, That a person cannot be an ombudsman if the person in question, the person's spouse, or the person's lineal descendant or ascendant held office as an executive or employee of a defense contractor, general enterprise, general enterprise which has no relationship with the defense industry, specialized research institute, general research institute, or munitions sales agent within two years before the person is commissioned as an ombudsman: <Newly Inserted on Mar. 31, 2010; Jan. 19, 2016> |
| 1. | A person who held or is holding a position as at least associate professor in a department related to the defense industry, or department of accounting, jurisprudence, or public administration, at a school under Article 2 of the Higher Education Act; |
| 2. | An attorney-at-law, certified public accountant, professional engineer, or patent attorney with experience in the relevant field for at least three years; |
| 3. | A person of high integrity who held office as a public official of at least Grade IV (including a public official belonging to the Senior Executive Service) at a central administrative agency; |
| 4. | Others persons of learning and high moral repute with abundant expert knowledge and experience in the field of the defense industry. |
| (6) | An ombudsman may investigate civil appeals and request for rectification, inspection, etc. to the Minister of the Defense Acquisition Program Administration pursuant to paragraph (4): Provided, no ombudsman shall investigate any of the following: <Newly Inserted on Mar. 31, 2010> |
| 1. | Matters for which objection or remedy proceedings, such as an administrative appeal, administrative litigation, judgment of the Constitutional Court, are pending under other Acts; |
| 2. | Matters which has become final and conclusive through judgment, decision, adjudication, reconciliation, mediation, arbitration, etc.; |
| 3. | Matters which were or are being audited by a national agency, such as the Board of Audit and Inspection; |
| 4. | Matters under an investigation by an investigative agency. |
| (7) | When an ombudsman intends to conduct an investigation under paragraph (6), he/she shall hear the statement of a relevant employee, peruse relevant documents, inspect the site, etc.: Provided, That the ombudsman may request for the statement of opinions or explanations to the relevant employee, if perusal is impracticable because the relevant documents, etc. fall under Article 9 (1) 2 and 5 of the Official Information Disclosure Act. <Newly Inserted on Mar. 31, 2010> |
| (8) | No ombudsman shall concurrently hold any of the following office: <Newly Inserted on Mar. 31, 2010; Jan. 19, 2016> |
| 1. | A member of the National Assembly or a local council; |
| 2. | A member of a political party, or a member of an association, the main purpose of which is to conduct political activities; |
| 3. | An executive or employee of a defense contractor, general enterprise, general enterprise which has no relationship with the defense industry, specialized research institute, general research institute, or munitions sales agent. |
| (9) | Matters necessary for the operation of the ombudsman system referred to in paragraph (4), such as the composition of ombudsmen, shall be prescribed by Presidential Decree. <Amended on Mar. 31, 2010> |
| Article 7 (System of Qualifications for Position) |
| (1) | In order to enhance efficiency and professionalism in executing defense acquisition programs, the Minister of the Defense Acquisition Program Administration shall appoint persons with corresponding qualifications to positions particularly deemed to require expertise. |
| (2) | The extent of position, standards for qualifications, and other necessary matters pursuant to paragraph (1) shall be prescribed by Presidential Decree. |
| Article 8 (Research of Legal Issues, etc. regarding Defense Acquisition Programs) |
In order to prevent any act that may inflict financial loss on the State in the execution of defense acquisition programs and to ensure the smooth execution of defense acquisition programs, the Minister of the Defense Acquisition Program Administration shall proceed the matters prescribed by Presidential Decree, such as contracts, negotiations, etc., after having legal experts, etc. review legal issues, etc. thereof.
| Article 9 (Defense Acquisition Program Promotion Committee) |
| (1) | To deliberate upon and coordinate major policies and operation of financial resources and others for the promotion of defense acquisition programs, the Defense Acquisition Program Promotion Committee shall be established under the control of the Minister of National Defense (hereinafter referred to as the "Committee"). |
| (2) | The Committee shall deliberate upon and coordinate the following: <Amended on May 9, 2014; Feb. 4, 2020; Mar. 31, 2020> |
| 1. | Matters regarding major policies and plans relating to defense acquisition programs; |
| 2. | Matters regarding the formulation of medium-term plans in the fields of defense force improvement projects provided for in Article 13 (3); |
| 3. | Matters regarding the formulation of budgets for defense force improvement projects provided for in Article 14 (1); |
| 4. | Matters regarding the determination of the methods of implementing defense force improvement projects provided for in Article 17; |
| 5. | Matters regarding the determination of types of weapons systems, equipment, etc. to be purchased; |
| 6. | Matters regarding offset trade provided for in Article 20; |
| 7. | Matters regarding the analysis, evaluation, and utilization of the outcomes thereof provided for in Articles 23 and 24; |
| 8. | Matters regarding the standardization of munitions and quality assurance provided for in Articles 26 and 28; |
| 9. | Matters regarding contracts for the procurement of munitions; |
| 12. | Matters regarding the designation of defense materials (hereinafter referred to as "defense materials") and defense contractors provided for in Articles 34 and 35; |
| 14. | Other matters deemed necessary by the Minister of National Defense and the Minister of the Defense Acquisition Program Administration to be deliberated upon and coordinated by the Committee. |
| (3) | The Committee shall be comprised of not exceeding 25 members, including one Chairperson. In such cases, the Committee shall include not more than four persons falling under paragraph (4) 5 and three persons falling under paragraph (4) 6, respectively. <Amended on Dec. 20, 2016; Nov. 28, 2017> |
| (4) | The Minister of National Defense shall become the Chairperson of the Committee, and the Minister of the Defense Acquisition Program Administration shall become the Vice Chairperson of the Committee, and the following persons shall become its members: <Amended on Feb. 29, 2008; Mar. 23, 2013; May 9, 2014; Mar. 21, 2017; Jul. 26, 2017> |
| 1. | The Vice Minister of National Defense; |
| 2. | Persons prescribed by Presidential Decree, from among public officials of assistant ministerial or director general level, or general-level officers of the Ministry of National Defense, the Defense Acquisition Program Administration, the Joint Chiefs of Staff, and each military branch; |
| 3. | Persons designated by the heads of affiliated agencies, from among public officials in general service who are members of the Senior Executive Service in the Ministry of Strategy and Finance, the Ministry of Science and ICT, or the Ministry of Trade, Industry and Energy; |
| 4. | The President of the Agency for Defense Development, the President of the Defense Agency for Technology and Quality established under Article 32, and the President of the Korea Institute for Defense Analyses established under the Korea Institute for Defense Analyses Act; |
| 5. | Persons entrusted by the Minister of National Defense, from among persons recommended by the relevant Standing Committee of the National Assembly; |
| 6. | Persons entrusted by the Minister of National Defense, from among persons recommended by the Minister of the Defense Acquisition Program Administration, who have sufficient knowledge and experience in defense acquisition programs or are learned and venerable. |
| (5) | Matters necessary for the composition and operation of the Committee, terms of office of its members, etc. shall be prescribed by Presidential Decree. |
| Article 10 (Subcommittees, Working Committees, and Expert Members) |
| (1) | In order to efficiently perform the business affairs of the Committee, subcommittees shall be established for each field. |
| (2) | Where the Committee deems it necessary, the Committee may further deliberate upon and coordinate the matters deliberated upon and coordinated by the subcommittees, which were delegated by the Committee or prescribed by Presidential Decree as concerning the subcommittees. |
| (3) | Each subcommittee may establish a working committee to assist the subcommittee in its affairs. <Newly Inserted on Dec. 20, 2016> |
| (4) | The Chairperson of the Committee may appoint expert members, from among those with expertise and experience in defense acquisition programs, to seek advice on the major matters of deliberation by the Committee and subcommittees. <Amended on Dec. 20, 2016> |
| (5) | Expert members may attend and speak at the Committee and subcommittees, and may submit written opinions to the Committee, if necessary. <Amended on Dec. 20, 2016> |
| (6) | Necessary matters concerning the composition and operation of subcommittees and working committees, the term of office of expert members, etc. shall be prescribed by Presidential Decree. <Amended on Dec. 20, 2016> |
[Title Amended on Dec. 20, 2016]
CHAPTER III DEFENSE FORCE IMPROVEMENT PROJECTS
SECTION 1 Principles for Execution of Defense Force Improvement Projects
| Article 11 (Basic Principles for Execution of Defense Force Improvement Projects) |
Where the Minister of the Defense Acquisition Program Administration implements defense force improvement projects, he/she shall comply with the following principles:
| 1. | Conducting research and development, and promotion of localization of weapons systems for the accomplishment of self-reliant national defense through the development of national defense science and technology; |
| 2. | Maximizing defense capability by acquiring weapons systems with optimal performance, as required by each service; |
| 3. | Devising a stable comprehensive plan for the assistance of ordinances for the efficient operation of weapons systems; |
| 4. | Securing transparency and specialization at all stages of the advancement of defense force improvement projects; |
| 5. | Deleted; <Mar. 31, 2020> |
| 6. | Deleted. <Mar. 31, 2020> |
| Article 12 (Comprehensive Project Administration System) |
| (1) | Where it is necessary for the efficient execution of defense force improvement projects, the Minister of the Defense Acquisition Program Administration shall implement a comprehensive project administration system that administers all procedures of a unit project by having the person who administers a unit project comprehensively organize the specialized manpower by function, such as formulation of plans, drawing up of budgets, decisions on types of weapons, negotiation, administration of contracts, administration of quality assurance, administration of technology, etc. |
| (2) | Matters necessary for the method of operation, procedures for, etc. of the comprehensive project administration system pursuant to the provisions of paragraph (1) shall be decided by the Minister of the Defense Acquisition Program Administration. |
SECTION 2 Medium-Term National Defense Plan and Budget
| Article 13 (Medium-Term National Defense Plan, etc.) |
| (1) | The Minister of National Defense shall formulate a medium-term plan (hereinafter referred to as "medium-term national defense plan") with approval from the President regarding defense force improvement projects, military force management, etc. to build rational military force. <Amended on May 9, 2014> |
| (2) | The Minister of the Defense Acquisition Program Administration shall prepare a written request for a medium-term plan for defense force improvement projects in consideration of the order of priority in the requirements for weapons systems, a national financial operating plan, etc., and submit it to the Minister of National Defense. In such cases, where the relevant Standing Committee of the National Assembly requests him/her to report on the written request for the medium-term plan, he/she shall report thereon. <Amended on May 9, 2014> |
| (3) | The Minister of National Defense shall formulate a medium-term national defense plan after receiving a request for a medium-term plan for defense force improvement projects from the Minister of the Defense Acquisition Program Administration, reviewing the adequacy of requirements for weapons systems, etc., and undergoing a prior deliberation and coordination by the Committee. <Amended on May 9, 2014> |
| (4) | Where the Minister of National Defense formulates a medium-term national defense plan, he/she shall immediately report the details thereof to the relevant Standing Committee of the National Assembly. <Amended on May 9, 2014> |
| (5) | Matters necessary for the formulation of a medium-term national defense plan, a requirement review, etc. referred to in paragraphs (1) and (3) shall be prescribed by Presidential Decree. <Newly Inserted on May 9, 2014> |
| Article 14 (Budget Formulation and Execution) |
| (1) | The Minister of the Defense Acquisition Program Administration shall formulate a budget for defense force improvement projects, based on the medium-term national defense plan and the Minister of National Defense's guidelines for budget formulation, and report it to the Minister of National Defense. |
| (2) | The Minister of the Defense Acquisition Program Administration shall establish a budget execution plan and budget operating plan to efficiently execute and administer the budget for defense force improvement projects. |
| (3) | Matters necessary for budget formulation and execution referred to in paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
SECTION 3 Decision on Requirements and Revision Thereof
| Article 15 (Decision on Requirements) |
| (1) | With regard to requirements for defense force improvement projects proposed by each service, units under the direct control of the Ministry of National Defense, and relevant organizations, the Chairman of the Joint Chiefs of Staff shall determine the requirements for weapons systems, etc. after deliberation by the Joint Chiefs of Staff. In such cases, the Chairman of the Joint Chiefs of Staff shall listen to the opinion of the Minister of the Defense Acquisition Program Administration, and gather and reflect opinions of private sector experts and interested persons as prescribed by Presidential Decree. <Amended on May 9, 2014; Nov. 28, 2017> |
| (2) | To ensure that decisions on requirements referred to in paragraph (1) can be made objectively and rationally, the Chairman of the Joint Chiefs of Staff shall organize human resources performing related duties in a way that the three services of the armed forces are balanced. <Amended on May 9, 2014> |
| (3) | Procedures, etc. for decisions on requirements referred to in paragraph (1) shall be prescribed by Presidential Decree. <Amended on May 9, 2014> |
| Article 16 (Revision to Requirements) |
| (1) | The Chairman of the Joint Chiefs of Staff may revise the requirements for weapons systems, etc. referred to in Article 15 (1) after deliberation by the Joint Chiefs of Staff. <Amended on May 9, 2014> |
| (2) | Where requirements for weapons systems, etc. are revised pursuant to paragraph (1), Article 15 (1) shall apply mutatis mutandis: Provided, That this shall not apply where any minor matter prescribed by Presidential Decree is revised. |
SECTION 4 Execution of Defense Force Improvement Projects
| Article 17 (Methods, etc. of Implementing Defense Force Improvement Projects) |
| (1) | Where the requirements for weapons systems, etc. for the defense force improvement projects pursuant to Article 15 (1) are determined, the Minister of the Defense Acquisition Program Administration shall determine the methods of implementing defense force improvement projects after prior research that has investigated and analyzed the possibility of research and development, timing of requirements and quantities required, level of national defense science and technology, the effectiveness of fostering the defense industry, technological and economic feasibility, effectiveness compared to expense, etc. relating to the relevant weapons systems: Provided, That this shall not apply where there is an urgent requirements for weapons systems, etc. for defense force improvement projects in time of war, disaster, overseas deployment of armed forces, etc. |
| (2) | Where it is necessary to conduct the prior research pursuant to the provisions of paragraph (1), the opinions of the Agency for Defense Development, each service, the relevant Ministry, etc. shall be reflected. |
| Article 18 Deleted. <Mar. 31, 2020> |
| (1) | The Minister of the Defense Acquisition Program Administration shall preferentially purchase domestically-manufactured munitions: Provided, That he/she may purchase the munitions manufactured overseas where it is difficult to purchase them in Korea. |
| (2) | Where it is necessary for the efficient execution of purchasing business, the Minister of the Defense Acquisition Program Administration may have the civilian specialists prescribed by Presidential Decree, such as persons, etc. recommended by the Committee, who have a track record of working in the field of international contracting, participate in the purchase procedures. |
| (3) | Matters necessary for purchase procedures, etc. for the promotion of defense force improvement projects shall be prescribed by Presidential Decree. |
| Article 20 (Offset Trade) |
| (1) | Where the Minister of the Defense Acquisition Program Administration purchases munitions from abroad pursuant to the provisions of Article 19 (1), the promotion of offset trade for a unit project worth more than the amount prescribed by Presidential Decree shall be the principle. |
| (2) | Where the Minister of the Defense Acquisition Program Administration selects technology, etc. that can be secured through offset trade, he/she shall have it linked with basic plans and implementation plans for defense science and technology innovation under Article 6 of the Defense Science and Technology Innovation Promotion Act. <Amended on Mar. 31, 2020> |
| (3) | Where the Minister of the Defense Acquisition Program Administration intends to promote offset trade, he/she shall satisfy the conditions falling under any of the following subparagraphs: <Amended on Apr. 1, 2009> |
| 1. | Securing technology necessary for defense force improvement projects; |
| 2. | Securing logistic support capability for the purchase of weapons systems; |
| 3. | Participation in the development and manufacture of weapons systems manufactured in the country of the contracting party; |
| 4. | The export of munitions, such as defense materials, etc.; |
| 5. | Securing maintenance materials for the weapons systems from the country of the contracting party; |
| 6. | Implementation of matters prescribed by Presidential Decree, such as export linkages for commodities other than munitions (limited to cases where the conditions under any of subparagraphs 1 through 5 are satisfied). |
| Article 21 (Test and Evaluation) |
| (1) | The Minister of National Defense shall formulate a test and evaluation plan including standards, items, methods, timing, etc. of evaluation for the test and evaluation of weapons systems and core technologies. <Amended on May 9, 2014> |
| (2) | Each armed forces and each agency (referring to the Agency for Defense Development, defense contractors, general enterprises, specialized research institutes, and general research institutes; hereafter in this Article the same shall apply) shall conduct tests and evaluations of weapons systems and core technologies in accordance with the test and evaluation plans under paragraph (1). In such cases, the outcome of tests and evaluations shall be notified to the Minister of National Defense. <Amended on May 9, 2014> |
| (3) | Each armed forces and each agency shall conduct test and evaluation on research and development among the tests and evaluations of weapons systems and core technologies under paragraphs (1) and (2) classified into developmental test and evaluation and operational test and evaluation: <Newly Inserted on Jan. 19, 2016> |
| 1. | Developmental test and evaluation: Test and evaluation to verify whether pilot products of equipment developed satisfy required performance, development goals, etc.; |
| 2. | Operational test and evaluation: Test and evaluation to confirm whether pilot products of equipment developed satisfy required operational capability and are appropriate for the military operations. |
| (4) | For test and evaluation for purchasing weapons systems among the tests and evaluations of weapons systems under paragraphs (1) and (2), each armed forces and each agency may conduct test and evaluation under any of the following or by complementing the following ones. In such cases, in principle, test and evaluation shall be conducted by the method specified in subparagraph 1, but in cases prescribed by Presidential Decree, such as being developing weapon systems, test and evaluation may be conducted by the method specified in subparagraph 2: <Newly Inserted on Jan. 19, 2016> |
| 1. | Test and evaluation based on the real thing: Test and evaluation of weapons systems or pilot products, the development of which has been completed; |
| 2. | Test and evaluation based on data: Test and evaluation based on data relating to proposed performance presented by an enterprise. |
| (5) | Where necessary to enhance professionalism and transparency of test and evaluation, the Minister of National Defense may have civilian specialists participate in test and evaluation upon recommendation by the Committee. <Amended on May 9, 2014; Jan. 19, 2016> |
| (6) | The Minister of National Defense shall judge whether weapons systems and core technologies satisfy the standards, etc. of test and evaluation on the grounds of the outcomes of test and evaluation notified pursuant to paragraph (2), and report the judgment to the Committee. <Amended on May 9, 2014; Jan. 19, 2016> |
| (7) | Other necessary matters concerning the formulation of test and evaluation plans, and methods and procedures for test and evaluation shall be prescribed by Presidential Decree. <Amended on Jan. 19, 2016> |
| Article 22 (Improvement of Performance) |
| (1) | In order to enhance the performance and quality of the weapons systems in operation or in the manufacturing process, the Minister of the Defense Acquisition Program Administration may promote the improvement of performance such weapon systems. |
| (2) | Where the surroundings of operation of weapons systems change substantially or the important operation performance of the weapons systems changes notwithstanding the provisions of paragraph (1), the improvement of performance shall be promoted in accordance with the procedures for decisions on requirements pursuant to Article 15. |
| (3) | Matters necessary for the procedures for promotion, etc. of improvement of performance pursuant to paragraph (1) shall be prescribed by Ordinance of the Ministry of National Defense. |
SECTION 5 Analysis and Evaluation
| Article 23 (Conduct of Analysis and Evaluation) |
| (1) | To seek rational decision-making and use financial resources effectively in executing defense force improvement projects, the system of analysis and evaluation of defense force improvement projects shall be established and the analysis and evaluation shall be conducted accordingly. <Amended on Mar. 31, 2010> |
| (2) | The Minister of the Defense Acquisition Program Administration shall conduct the analysis and evaluation of the following matters: <Amended on May 9, 2014> |
| 1. | The analysis and evaluation necessary for the preparation of a written request for a medium-term plan, formulation of a budget, etc. in the field of defense force improvement projects before the execution of the budget of the relevant project; |
| 2. | The analysis and evaluation of interim outcomes, etc. of the project in the course of executing the budget of the relevant project; |
| 3. | The analysis and evaluation of the outcomes of conducting the project, etc. after the completion of implementation of budget of the relevant project. |
| (3) | Except as otherwise expressly provided for in paragraph (2), the Minister of National Defense shall analyze and evaluate decisions on requirements for defense force improvement projects, formulate a medium-term plan, field weapons systems, etc. In such cases, the Minister may assign the Chairman of the Joint Chiefs of Staff or the Chief of Staff of each service to perform such duties. <Amended on May 9, 2014> |
| (4) | The Minister of National Defense and the Minister of the Defense Acquisition Program Administration may have civilian specialists participate in analysis and evaluation if necessary to enhance the credibility of analysis and evaluation. |
| (5) | The methods, procedures, etc. of analysis and evaluation referred to in paragraphs (2) through (4) shall be prescribed by Ordinance of the Ministry of National Defense. |
| Article 24 (Utilization of Outcomes of Analysis and Evaluation) |
| (1) | In order to efficiently execute defense force improvement projects, the Minister of the Defense Acquisition Program Administration shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of Article 23 (2) 1 and 2 to be utilized in the decision making of each phase of promotion of the relevant defense force improvement projects. |
| (2) | The Minister of the Defense Acquisition Program Administration shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of Article 23 (2) 3 to be utilized in the decision making for the relevant defense force improvement projects. |
| (3) | The Minister of National Defense shall arrange for the outcomes of the analysis and evaluation pursuant to the provisions of Article 23 (3) to be utilized in the decisions, etc. on requirements for defense force improvement projects, and may request the Minister of the Defense Acquisition Program Administration to re-analyze or re-evaluate the outcomes of the analysis and evaluation referred to in Article 23 (2) or take corrective measures, if necessary in consideration of the surroundings of operations of armed forces, technological changes, etc. |
CHAPTER IV PROCUREMENT AND QUALITY ASSURANCE
| Article 25 (Planning and Methods of Procurement) |
| (1) | The Minister of the Defense Acquisition Program Administration shall formulate a plan for procuring munitions in accordance with the guidance of the Minister of National Defense, and procure munitions accordingly. |
| (2) | In order to efficiently implement the defense budget, the Defense Acquisition Program Administration shall procure munitions en bloc: Provided, That each service may procure directly, or request the Public Procurement Service to make purchases as prescribed by Presidential Decree. |
| Article 26 (Standardization) |
| (1) | In order to efficiently acquire munitions, the Minister of the Defense Acquisition Program Administration shall formulate a plan for the standardization of munitions for an efficient acquisition of munitions. In this case, the Korean Industrial Standard under Article 12 of the Industrial Standardization Act shall be reflected on the matters to the extent applicable. <Amended on May 25, 2007> |
| (2) | The Minister of the Defense Acquisition Program Administration shall designate or revoke standard articles in accordance with the plan formulated pursuant to the provisions of paragraph (1), and formulate, amend, or abolish the standards for munitions, and administer munitions by distinguishing their physical or functional characteristics. |
| (3) | Matters necessary for the designation or revocation of standard articles in accordance with paragraph (2), and the formulation, amendment, or abolition of standards for munitions, and their administration in accordance with the physical or functional characteristics of munitions shall be prescribed by Presidential Decree. |
| Article 27 (Munitions Inventory Information) |
| (1) | The Minister of the Defense Acquisition Program Administration shall administer the munitions inventory information by classifying the munitions in accordance with the standardization pursuant to the provisions of Article 26, by designating names and stock numbers, and by logging their characteristics, etc. |
| (2) | The Minister of the Defense Acquisition Program Administration shall formulate and execute a plan for the administration and utilization of information on inventory of munitions pursuant to the provisions of paragraph (1), and endeavor to engage in the international exchange of munitions inventory information. |
| Article 28 (Quality Assurance) |
| (1) | The Minister of the Defense Acquisition Program Administration shall formulate and execute a plan for quality assurance including measures to modify and supplement inadequacies in accordance with the examination of the quality of the munitions in order to verify whether they conform to the initial requirements of the user at each stage of research and development, and purchasing. |
| (2) | The concrete methods, etc. regarding quality assurance at each stage pursuant to the provisions of paragraph (1) shall be prescribed by Ordinance of the Ministry of National Defense. |
| Article 29 (Quality Control) |
| (1) | The Minister of the Defense Acquisition Program Administration shall, after consultation with the Minister of Trade, Industry and Energy, establish standards for responsibility management, resources management, etc. by defense contractors or specialized research institutes to assure quality in the manufacture of defense materials. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Defense contractors or specialized research institutes shall take measures necessary for the quality control of defense materials in accordance with the standards referred to in paragraph (1). |
| (3) | Where necessary to conduct research and development, purchase and manufacture of defense materials, the Minister of Trade, Industry and Energy and the Minister of the Defense Acquisition Program Administration may, after consultation among themselves, have the defense contractors or specialized research institutes report thereon, or dispatch the relevant public officials, etc. to the facilities of the defense industry (hereinafter referred to as "defense industry facilities") or other necessary places to provide instructions on quality control or technology. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (4) | The relevant public officials, etc. dispatched pursuant to the provisions of paragraph (3) may request the defense contractors or the managers of specialized research institutes to take necessary measures for the quality control, etc. of defense materials. |
| Article 29-2 (Certification of Quality Management System) |
| (1) | Where any of the following enterprises (hereinafter referred to as "defense contractor, etc.") has constructed a quality management system that may assure the quality of munitions in accordance with standards for certification of the quality management system (hereinafter referred to as "standards for certification of the quality management system") prescribed by Ordinance of the Ministry of National Defense, the Minister of the Defense Acquisition Program Administration may provide certification of the quality management system to such defense contractor, etc.: |
| 3. | General enterprises which have no relationship with the defense industry (limited to where they supply munitions in accordance with standards for munitions under Article 26 (2)). |
| (2) | A defense contractor, etc. that intends to receive certification of quality management shall file an application therefor with the Minister of the Defense Acquisition Program Administration. |
| (3) | The period of validity of certification of quality management shall be three years from the date a defense contractor, etc. receives the certification thereof, and where the defense contractor, etc. that has received certification of quality management intends to maintain the validity of the certification thereof, it shall renew the certification thereof before the period of the validity thereof expires. |
| (4) | The Minister of the Defense Acquisition Program Administration may examine whether a defense contractor, etc. that has received certification of quality management meets standards for certification of quality management (hereinafter referred to as "examination of post management") during the period of validity under paragraph (3), and where he/she does not deem that the result of the examination thereof meets standards for certification of quality management, he/she may order the defense contractor, etc. to take measures necessary for correction. |
| (5) | Necessary matters concerning methods, procedures, etc. for filing applications for, conducting examination, renewal, examination of the post management, etc. of certification of quality management shall be prescribed by Ordinance of the Ministry of National Defense. |
[This Article Newly Inserted on Dec. 20, 2016]
| Article 29-3 (Revocation of Certification of Quality Management) |
Where a defense contractor, etc. that has received certification of quality management falls under any of the following cases, the Minister of the Defense Acquisition Program Administration may revoke the certification thereof: Provided, That where the defense contractor, etc. falls under subparagraph 1, he/she shall revoke the certification thereof:
| 1. | Where the defense contractor, etc. receives certification of quality management by fraud or other improper means; |
| 2. | Where the defense contractor, etc. fails to meet standards for certification of quality management; |
| 3. | Where the defense contractor, etc. fails to undergo examination of post management without just grounds or fails to comply with an order to take corrective measures as a result of the examination thereof; |
| 4. | Where it is deemed impracticable for the defense contractor, etc. to produce defense materials, etc. due to the cessation of business, etc. |
[This Article Newly Inserted on Dec. 20, 2016]
| Article 29-4 (Offering Incentives to Certified Enterprises) |
| (1) | Where the Minister of the Defense Acquisition Program Administration enters into a contract for the procurement of munitions or research and development of defense materials with a defense contractor, etc. that has received certification of quality management, he/she may offer incentives, such as awarding extra points, to the defense contractor, etc. |
| (2) | Necessary matters concerning the details of, methods, procedures, etc. for offering incentives under paragraph (1) shall be prescribed by the Minister of the Defense Acquisition Program Administration. |
[This Article Newly Inserted on Dec. 20, 2016]
CHAPTER V ADVANCEMENT OF NATIONAL DEFENSE SCIENCE AND TECHNOLOGY
| Article 30 Deleted. <Mar. 31, 2020> |
| Article 31 Deleted. <Mar. 31, 2020> |
| Article 31-2 Deleted. <Mar. 31, 2020> |
| Article 32 (Defense Agency for Technology and Quality) |
| (1) | The Defense Agency for Technology and Quality shall be established to efficiently conduct the business of securing, distribution, administration, quality assurance, etc. of information regarding national defense science and technology, and munitions. <Amended on May 9, 2014> |
| (2) | The Defense Agency for Technology and Quality shall be established as a juristic person. |
| (3) | The Defense Agency for Technology and Quality shall come into being by registering the incorporation thereof at the location of its principal office. |
| (4) | The articles of incorporation of the Defense Agency for Technology and Quality shall contain the following matters: |
| 3. | The location of its principal office; |
| 4. | Matters regarding business and finance; |
| 5. | Matters regarding officers; |
| 6. | Matters regarding the board of directors; |
| 7. | Matters regarding the amendment of the articles of incorporation; |
| 8. | Matters regarding its dissolution. |
| (5) | Where the Defense Agency for Technology and Quality intends to draft or amend the articles of incorporation, it shall obtain authorization therefor from the Minister of the Defense Acquisition Program Administration. In such cases, the Minister of the Defense Acquisition Program Administration shall obtain approval therefor from the Minster of National Defense before granting authorization. |
| (6) | The Defense Agency for Technology and Quality shall conduct the following business affairs: <Amended on Feb. 4, 2020; Mar. 31, 2020> |
| 1. | Deleted; <Mar. 31, 2020> |
| 2. | Deleted; <Mar. 31, 2020> |
| 3. | Deleted; <Mar. 31, 2020> |
| 4. | Deleted; <Mar. 31, 2020> |
| 5. | Business support for the quality assurance of munitions, quality control of defense materials, etc. and the relevant business entrusted by the Minister of the Defense Acquisition Program Administration; |
| 6. | Business support for the standardization, etc. of munitions requested in the course of execution of defense acquisition programs; |
| 7. | Deleted; <Feb. 4, 2020> |
| 8. | Matters regarding the collection and supply of information on import prices of munitions; |
| 9. | Other matters prescribed by Presidential Decree with regard to the quality control, etc. of munitions. |
| (7) | The Government shall contribute expenses necessary for the establishment and operation of the Defense Agency for Technology and Quality. |
| (8) | Matters necessary for the operation, supervision, etc. of the Defense Agency for Technology and Quality shall be prescribed by Presidential Decree. |
| (9) | The provisions in the Civil Act regarding incorporated foundations shall apply mutatis mutandis to matters not prescribed in this Act regarding the Defense Agency for Technology and Quality. |
| Article 32-2 (Transfer, Lease, etc. of State-Owned Property) |
If necessary for the operation of the Defense Agency for Technology and Quality, the Government may grant a permit to use, lease, or transfer munitions or State-owned property to the Defense Agency for Technology and Quality without any consideration, as prescribed by Presidential Decree, notwithstanding the Act on the Management of Military Suppliers or the State Property Act. [This Article Newly Inserted on Sep. 1, 2015]
CHAPTER VI FOSTERING OF DEFENSE INDUSTRY
| Article 33 Deleted. <Feb. 4, 2020> |
| Article 34 (Designation of Defense Materials) |
| (1) | The Minister of the Defense Acquisition Program Administration may, after consultation with the Minister of Trade, Industry and Energy, designate materials classified as weapons systems as defense materials, which are necessary for the securing of stable source of procurement, strict quality assurance, etc.: Provided, That materials that are not classified as weapons systems but prescribed by Presidential Decree may be designated as defense materials. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Defense materials shall be designated by classifying them into either major defense materials or general defense materials. |
| (3) | The classification into either major defense materials or general defense materials pursuant to the provisions of paragraph (2), and other matters necessary for the designation of defense materials shall be prescribed by Presidential Decree. |
| Article 35 (Designation, etc. of Defense Contractors) |
| (1) | Those who intend to manufacture defense materials shall obtain designation as defense contractors from the Minister of Trade, Industry and Energy after meeting the standards for facilities, the requirements of security, etc. that are prescribed by Presidential Decree. In such cases, the Minister of Trade, Industry and Energy shall pre-consult with the Minister of the Defense Acquisition Program Administration regarding the designation of defense contractors. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | Where the Minister of Trade, Industry and Energy designates a defense contractor pursuant to paragraph (1), he/she shall designate by classifying the contractor as either a major defense contractor or general defense contractor. Enterprises which manufacture any of the following defense materials shall be major defense contractors, and enterprises that manufacture other defense materials shall be general defense contractors: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| 1. | Firearms and other fire power weapons; |
| 6. | Tanks, armored vehicles, and other mobile combat equipment; |
| 7. | Radars, identification friend or foe, and other communication and electronic equipment; |
| 8. | Night observation devices and other optical or thermal imaging devices; |
| 9. | Combat engineering equipment; |
| 10. | Chemical, biological and radiological warfare equipment; |
| 11. | Command and control systems; |
| 12. | Other materials that the Minister of the Defense Acquisition Program Administration designates as recognized to be important for military strategy or tactical operations. |
| (3) | Where the change in substance of the governance of management of a defense contractor because of transaction and public sale, or merger and acquisition, or other reasons is expected and it falls under the standards prescribed by Presidential Decree, those who intend to gain a controlling interest in the management of the relevant defense contractor shall submit relevant documents to the Minister of Trade, Industry and Energy as prescribed by Presidential Decree and obtain his/her prior approval therefor: Provided, That the foregoing shall not apply where permission from the Minister of Trade, Industry and Energy has been obtained pursuant to the provisions of Article 6 (1) through (4) of the Foreign Investment Promotion Act. <Amended on Feb. 29, 2008; Mar. 23, 2013; Jan. 27, 2016> |
| (4) | Where the Minister of Trade, Industry and Energy intends to grant approval pursuant to the main sentence of paragraph (3), he/she shall pre-consult with the Minister of the Defense Acquisition Program Administration. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (5) | Matters necessary for designation pursuant to paragraphs (1) and (2) shall be prescribed by Presidential Decree. |
| Article 36 Deleted. <Feb. 4, 2020> |
| Article 37 (Protection and Fosterage) |
| (1) | The Government shall guarantee defense materials manufactured and procured by defense contractors. |
| (2) | The Government shall provide priority to defense contractors who manufacture major defense materials when assisting in the following matters: <Amended on Apr. 1, 2009; Feb. 4, 2020; Mar. 31, 2020> |
| 3. | Other matters prescribed by Presidential Decree for the protection and fosterage of defense contractors. |
| Article 38 Deleted. <Feb. 4, 2020> |
| Article 39 Deleted. <Feb. 4, 2020> |
| Article 40 Deleted. <Mar. 31, 2020> |
| Article 41 (Assistance to Defense Industry) |
| (1) | For the purposes of research and development, or the manufacture of defense materials, the Defense Acquisition Program Administration, armed forces, the Agency for Defense Development, the Defense Agency for Technology and Quality, and military repair units may give technical assistance or assistance in manufacturing to defense contractors or specialized research institutes at the expense of the defense contractors or specialized research institutes. <Amended on Mar. 21, 2017> |
| (2) | Where the Minister of National Defense and the Minister of the Defense Acquisition Program Administration deem necessary for the research and development of weapons systems and technologies related thereto of defense contractors, general enterprises, specialized research institutes, and general research institutes, they may allow defense contractors, general enterprises, specialized research institutes, and general research institutes to jointly utilize facilities, equipment, and information related to test and evaluation of the Agency for Defense Development in accordance with methods and procedures prescribed by the Minister of the Defense Acquisition Program Administration. <Newly Inserted on Mar. 21, 2017> |
| Article 42 Deleted. <Feb. 4, 2020> |
| Article 43 (Designation of Guarantee Organizations) |
| (1) | In order to reduce the financial burden of defense contractors, etc. and to allow the defense contractors, etc. to use the guarantee organization conveniently, the Minister of the Defense Acquisition Program Administration may designate an organization (hereinafter referred to as "guarantee organization") that performs guarantee business pursuant to the provisions of any subparagraphs in paragraph (2) relating to defense business. |
| (2) | The scope of guarantee business of a guarantee organization shall be as listed in the following subparagraphs: <Amended on Apr. 1, 2009; Feb. 4, 2020> |
| 2. | Payment guarantees of security for bids and contract deposits against the procurement and research of defense materials and manufacture of prototypes, and payment guarantees against warranty deeds pursuant to the provisions of Article 46 (1); |
| 3. | Payment guarantees against retainers and part payments pursuant to the provisions of Article 46 (2); |
| 5. | Loan guarantees against funds necessary for reserving raw materials pursuant to the provisions of Article 55; |
| 6. | Other guarantees necessary for defense contractors, etc. to conduct defense business. |
| (3) | Matters necessary for the requirements for designation, methods of designation, procedures of designation, etc. of guarantee organizations shall be prescribed by Presidential Decree. |
| Article 44 Deleted. <Feb. 4, 2020> |
| Article 45 (Transfer, Lease, etc. of State-Owned Property) |
| 1. | General property and goods may be sold, or leased free of charge or at a cost, to defense contractors by private contract; |
| 2. | Administrative property may be permitted for free use, as prescribed by Presidential Decree. |
| (2) | If necessary to produce, research, and produce prototypes of defense materials, the Government may lease, or transfer, equipment for exclusive use or goods to defense contractors or specialized research institutes free of charge or at a cost, as prescribed by Presidential Decree, notwithstanding the Commodity Management Act. <Amended on Mar. 27, 2015> |
| (3) | No defense contractors or specialized research institutes shall use the State-owned property or goods transferred, leased, or permitted for use, free of charge or at a cost pursuant to paragraph (1) or (2) for another purpose. <Amended on Mar. 27, 2015> |
| (4) | Where defense contractors request the Government to transfer, lease, permit the use of, exchange, etc. defense facilities or defense materials owned by the State for exportation, the Government may transfer, lease, or permit the use of the defense facilities or defense materials free of charge or at a cost, or exchange them with defense materials owned by defense contractors, as long as they do not impede military operations or the maintenance of war potential, notwithstanding the provisions of other statutes. <Amended on Mar. 27, 2015> |
| (5) | When a price difference exists in defense facilities or defense materials exchanged pursuant to paragraph (4), the difference shall be settled in cash. |
| (6) | Where the head of a central administrative agency intends to transfer the State-owned defense facilities referred to in paragraph (4), he/she shall first consult with the Minister of Strategy and Finance. <Newly Inserted on Mar. 27, 2015> |
| (7) | Matters necessary for the transfer, lease, permit for use, exchange, etc. of defense facilities or defense materials provided for in paragraphs (4) and (5), shall be prescribed by Presidential Decree. <Amended on Mar. 27, 2015> |
[Title Amended on Mar. 27, 2015]
| Article 46 (Special Cases, etc. of Contract) |
| (1) | Where the Government procures repair parts essential to the management of defense materials and weapons systems or entrusts the performance of defense research and development projects under Article 8 (1) and (4) of the Defense Science and Technology Innovation Promotion Act, it may conclude a short-term, long-term, fixed, or approximation contract. In such cases, the kinds, terms, methods of contracts, and other necessary matters shall be prescribed by Presidential Decree, notwithstanding the provisions of the Act on Contracts to which the State is a Party or other relevant statutes. <Amended on Apr. 1, 2009; Mar. 31, 2020> |
| (2) | Where deemed necessary to pay retainers and part payments in concluding a contract under paragraph (1), the retainers and part payments may be paid within the extent provided for in the budget of the relevant year. In such cases, the retainers or part payments paid over shall not be used for any purpose other than the implementation of the relevant contract. |
| (3) | Where a contract provided for in paragraph (1) is concluded, the standards and methods of cost accounting, and the standards, methods, and procedures for paying retainers and part payments provided for in paragraph (2) shall be prescribed by Ordinance of the Ministry of National Defense. In such cases, the Minister of National Defense shall first consult with the Minister of Strategy and Finance. <Amended on Feb. 29, 2008> |
| (4) | Regarding the retainers and part payments to be paid over where a long-term contract is concluded among the contracts referred to in paragraph (1), the settlement may be postponed until the last delivery of contract materials, notwithstanding the provisions of the Act on Contracts to which the State is a Party or other relevant statutes. |
| (5) | Where necessary to purchase or supply a force support system that is to be used by the Ministry of National Defense and military units or organizations under the direct control of the Ministry, or each service, the Minister of the Defense Acquisition Program Administration may conclude a unit price contract, the parties of which are at least two persons who supply items with the same quality or performance, etc. or similar items, as prescribed by Presidential Decree. <Newly Inserted on Jun. 11, 2014> |
| Article 46-2 Deleted. <Mar. 31, 2020> |
| Article 47 (Grounds for Disqualification from Designation as Defense Contractor) |
None of the following persons shall be designated as a defense contractor:
| 1. | Where the officer (including spouse and direct ascendant or descendant) of a defense contractor, whose designation has been revoked pursuant to the provisions of Article 48 (1), is an officer of another defense contractor that seeks to be designated before three years have passed since such revocation; |
| 2. | Where a defense contractor seeks to be designated at the same place with the same facilities before six months have passed since the revocation of designation as a defense contractor pursuant to the provisions of Article 48 (1). |
| Article 48 (Revocation, etc. of Designation) |
| (1) | Where a defense contractor falls under any of the following cases, the Minister of Trade, Industry and Energy may revoke such designation after consultation with the Minister of the Defense Acquisition Program Administration: <Amended on Feb. 29, 2008; Apr. 1, 2009; Mar. 23, 2013; May 9, 2014; Dec. 20, 2016; Feb. 4, 2020> |
| 1. | Where the representative or officer of a defense contractor violates the terms of a pledge of integrity provided for in Article 6; |
| 2. | Where a defense contractor fails to meet the standards for facilities and requirements for security provided for in Article 35 (1); |
| 3. | Where a defense contractor fails to obtain approval provided for in Article 35 (3); |
| 4. | Where a defense contractor refuses, evades, or avoids performing the contract for supply of defense materials to the Government without just grounds; |
| 9. | Where a defense contractor uses State assets or goods for other purposes in violation of Article 45 (3); |
| 10. | Where a defense contractor fails to comply with an order to take measures necessary for the replacement, supplementation, expansion, or relocation of facilities provided for in Article 49 (1); |
| 11. | Where a defense contractor violates an order provided for in Article 53 (1); |
| 12. | Where a defense contractor concludes a contract for supply by furnishing the Government with false or other unlawful cost data; |
| 13. | Where a defense contractor employs a person subject to examination for fitness for employment, whose employment is restricted or who has not obtained approval for employment, in violation of Article 59-2 (2); |
| 14. | Where a defense contractor requests the revocation of designation as defense contractor from the Minister of Trade, Industry and Energy along with the relevant documents as it has become incapable of conducting normal business due to nonpayment, bankruptcy, or other unavoidable operational reasons. |
| (2) | Where a defense contractor falls under any of paragraph (1) 1 through 12, the Minister of the Defense Acquisition Program Administration may request the Minister of Trade, Industry and Energy to revoke its designation. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (3) | Where defense materials fall under any of the following cases, the Minister of the Defense Acquisition Program Administration may revoke the designation after consultation with the Minister of Trade, Industry and Energy: <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| 1. | Where it is recognized that it can be procured from at least two enterprises and the quality shall be guaranteed; |
| 2. | Where there is no requirement for such materials from the military, or the system equipment has been deleted; |
| 4. | Where the revocation of designation of defense materials is necessary, or there is no need to keep the designation of such defense materials following research and development, change, cancellation of purchase, etc. |
| (4) | Where a guarantee organization is engaged in business other than as stipulated in its articles of incorporation, or performs an act in violation of the conditions of designation, the Minister of the Defense Acquisition Program Administration may revoke its designation as a guarantee organization. |
| (5) | Where the Minister of Trade, Industry and Energy or the Minister of the Defense Acquisition Program Administration intends to revoke designation of a defense contractor or guarantee organization pursuant to paragraphs (1) and (4), he/she shall hold a hearing. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (6) | Matters necessary for the procedures, etc. of revocation of designation pursuant to paragraphs (1), (3), and (4) shall be prescribed by Presidential Decree. |
CHAPTER VII SUPPLEMENTARY PROVISIONS
| Article 49 (Replacement, Supplementation, Expansion, or Relocation of Facilities) |
| (1) | Where there arises a dire need for national defense in a state of war, disaster or other emergency equivalent thereto, the Minister of Trade, Industry and Energy may, at the request of the Minister of the Defense Acquisition Program Administration, order the operator of a defense enterprise to take measures necessary for the replacement, supplementation, expansion, or relocation of the facilities directly provided by such enterprise to the manufacture of defense materials. <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy shall compensate for any loss arising from the replacement, supplementation, expansion, or relocation of the facilities due to an order pursuant to paragraph (1). <Amended on Feb. 29, 2008; Mar. 23, 2013> |
| (3) | The person who has succeeded to the business which has the facilities with an order for replacement, supplementation, expansion, or relocation pursuant to paragraph (1), shall succeed to the rights and obligations under paragraphs (1) and (2) resulting from the order. |
| Article 50 (Duty of Confidentiality) |
None of the following persons shall divulge or stealthily use any secrets he/she has learned in the course of performing his/her duty regarding a defense acquisition program: <Amended on Mar. 31, 2010>
| 1. | A person who held or is holding the post falling under Article 6 (1) 1 and 2; |
| 2. | A person who has been entrusted with the duty of ombudsman pursuant to Article 6 (9); |
| 3. | A person who is or was a representative, officer or staff at the Defense Agency for Technology and Quality, a defense contractor, general enterprise, specialized research institute, or general research institute; |
| 4. | A person who engaged or is engaging in the business of the manufacture and research of defense materials at the Defense Agency for Technology and Quality, a defense contractor, general enterprise, specialized research institute, or general research institute. |
| Article 50-2 (Approval for Participation in National Strategic Arms Projects, etc.) |
| (1) | When a company, the management right of which is substantially acquired by a foreign company or foreigner intends to participate in national strategic arms projects or other projects equivalent thereto, the company shall in advance obtain the approval from the Minister of the Defense Acquisition Program Administration, for the purpose of preventing science technology for national defense from being leaked overseas. |
| (2) | Standards, etc. for the kinds of projects subject to approval, procedure and time of approval, and substantial acquisition of the management right referred to in paragraph (1) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Mar. 31, 2010]
| Article 51 (Consultation, etc. on Manufacture and Sales Contracts for Defense Materials) |
| (1) | Where a government agency or a person other than a government agency needs defense materials for the purposes of maintaining national security, guarding, research, testing, or inspection, etc., it may purchase them after concluding a manufacture or sales contract for defense materials with a defense contractor. |
| (2) | A government agency which intends to purchase defense materials under paragraph (1) shall consult with the Minister of the Defense Acquisition Program Administration in advance, and the person other than the government agency shall obtain approval from the Minister of the Defense Acquisition Program Administration upon recommendation by the head of the relevant central administrative agency: Provided, That an enterprise and defense contractor which have obtained a manufacturer's license regarding military firearms, swords, explosives, etc. pursuant to Article 53 (1) need not receive the recommendation from the head of the relevant central administrative agency. |
[This Article Wholly Amended on Apr. 1, 2009]
| (1) | Any of the following persons shall pay a fee: |
| 1. | A person who intends to obtain certification of quality management pursuant to Article 29-2 (2); |
| 2. | A person who intends to renew certification of quality management pursuant to Article 29-2 (3). |
| (2) | Necessary matters concerning persons subject to imposition of fees, the amount of a fee, payment methods, the payment period, etc. of fees under paragraph (1) shall be prescribed by the Minister of the Defense Acquisition Program Administration. |
[This Article Newly Inserted on Dec. 20, 2016]
| Article 52 Deleted. <Mar. 31, 2020> |
| Article 53 (Special Exceptions for Manufacture of Military Firearms, Knives, Swords, Explosives, etc.) |
| (1) | The Minister of the Defense Acquisition Program Administration shall permit and supervise the manufacturing, importation, exportation, transfer, acquisition, possession, use, storage, transportation, scrapping, etc. of military firearms, knives, swords, explosives, etc., and issue orders, or take measures, necessary therefor, as prescribed by Presidential Decree, notwithstanding the provisions of other statutes. |
| (2) | Except as otherwise expressly provided for in paragraph (1), the Act on the Safety Management of Guns, Swords, Explosives, Etc. shall apply mutatis mutandis to military firearms, knives, swords, explosives, etc. <Amended on Jan. 6, 2015> |
| Article 54 (Orders, etc. for Sale) |
| (1) | Where there arises a dire need for national defense in time of war, disaster or other emergencies equivalent thereto, or the operator of a defense enterprise or a person who has defense materials for sale brings about serious danger to national security by refusing to manufacture or sell defense materials, etc. without justifiable grounds, the Minister of the Defense Acquisition Program Administration may order the operator of the defense enterprise or the person who has defense materials for sale to transfer the defense materials to the Government by fixing the time and price of transfer, time and method of payment, and other necessary matters. |
| (2) | Where the Minister of the Defense Acquisition Program Administration cannot issue an order for transfer pursuant to the provisions of paragraph (1) because he/she cannot ascertain the owner of defense materials, he/she may order the person in possession of the defense materials concerned to deliver over them by fixing the time and price of delivery, time and method of payment, and other necessary matters. |
| (3) | The cost of manufacture, the profits of the enterprise, etc. shall be considered when determining the transfer price pursuant to the provisions of paragraph (1). |
| Article 55 (Reserve of Raw Materials) |
| (1) | Defense contractors shall reserve raw materials for the manufacture of defense materials. |
| (2) | The administration of reserving of raw materials pursuant to the provisions of paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 56 (Suspension or Cessation of Business) |
Where a defense contractor intends to suspend or cease its business, it shall obtain prior approval from the Minister of Trade, Industry and Energy. In such cases, the Minister of Trade, Industry and Energy shall consult with the Minister of the Defense Acquisition Program Administration. <Amended on Feb. 29, 2008; Mar. 23, 2013>
| Article 57 (Permission for Exportation, etc.) |
| (1) | A person who intends to export or intermediate the trade of (including intermediating the trade between third party countries) defense materials and defense technology for business purposes shall report thereon to the Minister of the Defense Acquisition Program Administration, as prescribed by Presidential Decree. <Amended on Mar. 27, 2015> |
| (2) | A person who intends to export or intermediate the trade of defense materials and defense technology, shall obtain permission therefor from the Minister of the Defense Acquisition Program Administration, as prescribed by Presidential Decree: Provided, That the foregoing shall not apply to cases prescribed by Presidential Decree, in which cases defense materials and defense technology are exported abroad to provide defense materials and defense technology for the Republic of Korea troops sent overseas. <Amended on Feb. 29, 2008; Mar. 23, 2013; Mar. 27, 2015; Dec. 20, 2016> |
| (3) | A person who intends to hold an export consulting meeting for major defense materials and defense technology shall obtain preliminary export approval from the Minister of the Defense Acquisition Program Administration, as prescribed by Ordinance of the Ministry of National Defense, and each person, who intends to participate in international bidding, shall obtain approval for participation in international bidding from the Minister of the Defense Acquisition Program Administration, as prescribed by Ordinance of the Ministry of National Defense. |
| (4) | The Minister of the Defense Acquisition Program Administration may place limitations on, or order an adjustment of, the exportation of defense materials and defense technology after consultation with the head of the relevant administrative agency, as prescribed by Presidential Decree. <Amended on Mar. 27, 2015> |
| (5) | A person who exports defense materials and defense technology without obtaining permission from the Minister of the Defense Acquisition Program Administration pursuant to the proviso to paragraph (2) shall submit the current status of export transactions to the Administrator within seven days after the exportation thereof. <Amended on Dec. 20, 2016> |
[Title Amended on Mar. 27, 2015]
| Article 57-2 (Registration of Munitions Sales Agency) |
| (1) | A person who intends to conduct munitions sales agency shall register munitions sales agency with the Minister of the Defense Acquisition Program Administration, as prescribed by Presidential Decree: Provided, That none of the following persons shall obtain registration: |
| 1. | A minor, a person under adult guardianship, or a person under limited guardianship; |
| 2. | A person in whose case five years have not passed since his/her imprisonment without prison labor or heavier punishment as declared by a court was completely executed (including where the execution thereof is deemed completed) or exempted; |
| 3. | A person who is under the suspension of the execution or sentence of imprisonment without prison labor or heavier punishment as declared by a court; |
| 4. | A person in whose case two years have not passed since the revocation of his/her registration because he/she fell under Article 57-3 (1). |
| (2) | Where a person who has registered munitions sales agency pursuant to paragraph (1) intends to alter any important matters prescribed by Presidential Decree, he/she shall register any alterations thereof. |
| (3) | Where a person obtains registration and registration of any alterations under paragraphs (1) and (2), the Minister of the Defense Acquisition Program Administration shall issue a registration certificate to the applicant. |
| (4) | The period of validity of registration under paragraph (1) shall be three years from the date of registration. |
| (5) | Necessary matters concerning procedures and methods for obtaining registration and registration of alterations, the issuance of a registration certificate, etc. under the provisions of paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on May 29, 2016]
| Article 57-3 (Revocation of Registration of Munitions Sales Agency) |
| (1) | Where a person who has registered munitions sales agent business falls under any of the following cases, the Minister of the Defense Acquisition Program Administration may revoke the registration of his/her munitions sales agency: Provided, That, where the person falls under subparagraph 1, the Minister of the Defense Acquisition Program Administration shall revoke the registration thereof: <Amended on Dec. 20, 2016> |
| 1. | Where he/she obtains registration or registration of alterations by fraud or other improper means; |
| 2. | Notwithstanding the fact that important matters under Article 57-2 (2) have been altered among the matters registered, where he/she conducts munitions sales agency without obtaining registration of alterations; |
| 3. | Where he/she fails to comply with the details of a pledge of integrity he/she submitted pursuant to Article 6 (1); |
| 4. | Where he/she fails to report a commission, in violation of Article 57-4 (1) or to report the alteration of a commission, in violation of Article 57-4 (2), or makes a false report or a false report of the alteration of a commission. |
| (2) | Where a munitions sales agent participates in the course of performing a contract as a munitions sales agent even though the registration of his/her munitions sales agency is revoked pursuant to paragraph (1), such munitions sales agent shall be deemed a munitions sales agent to the extent that the contract is terminated. |
| (3) | Except as otherwise expressly provided for in paragraphs (1) and (2), necessary matters concerning the revocation of registration of munitions sales agency shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on May 29, 2016]
| Article 57-4 (Reporting, etc. of Commission) |
| (1) | A person who conducts munitions sales agency has entered into a contract concerning remuneration, such as a commission, (hereinafter referred to as "commission") with a foreign enterprise through the intermediation or agency with respect to a program larger than a scale prescribed by Presidential Decree, he/she shall report a commission to the Minister of the Defense Acquisition Program Administration. |
| (2) | Where any alterations are made to matters reported, a person who has made a report pursuant to paragraph (1) shall report such altered matters to the Minister of the Defense Acquisition Program Administration. |
| (3) | No current or former public official belonging to the Defense Acquisition Program Administration shall use information about a commission he/she becomes aware of in the course of performing any of his/her duties, for the fraudulent purpose other than official purposes. |
| (4) | Necessary matters concerning methods and procedures for reporting a commission, the deadline for making a report, etc. shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 20, 2016]
| Article 58 (Recovery, etc. of Fraudulent Gains) |
| (1) | Where a defense contractor, general enterprise, general enterprise which has no relationship with the defense industry, specialized research institute, or general research institute has made fraudulent gains by submitting data containing false or unlawful cost accounting to the Government, the Minister of the Defense Acquisition Program Administration shall recover the fraudulent gains and additional dues equivalent to not more than double the fraudulent gains, as prescribed by Presidential Decree. <Amended on Jan. 19, 2016; Dec. 20, 2016> |
| (2) | Criteria and methods for calculating additional dues referred to in paragraph (1) shall be prescribed by Presidential Decree in consideration of the degree of a unfair practice and whether a defense contractor, etc. has made a report of its own accord. <Newly Inserted on Dec. 20, 2016> |
[Title Amended on Dec. 20, 2016]
| Article 59 (Sanction against Violation of Pledge of Integrity) |
Where a person falling under Article 6 (1) 4 fails to observe the terms of a pledge of integrity, the Minister of National Defense and the Minister of the Defense Acquisition Program Administration may impose sanctions by restricting qualification to participate in bidding for up to five years against the relevant defense contractor, general enterprise, general enterprise which has no relationship with the defense industry, specialized research institute, or general research institute, as prescribed by Presidential Decree. <Amended on May 9, 2014; Jan. 19, 2016; Dec. 20, 2016>
| Article 59-2 (Confirmation, etc. of Persons Subject to Examination for Fitness for Employment by Defense Contractors) |
| (1) | Where a defense contractor falling under Article 17 (1) 1 or 12 of the Public Service Ethics Act intends to employ a person to whom the employment restriction period under Article 17 (1) of the aforesaid Act applies (hereinafter referred to as "person subject to examination for fitness for employment"), who is a retiree of the Defense Acquisition Program Administration, among those obligated to obtain registration under the aforesaid Act, it shall request the person subject to examination for fitness for employment to confirm whether he/she is subject to employment restrictions under Article 18 of the aforesaid Act and confirm the result of examination on an application for approval of employment submitted by him/her. <Amended on Dec. 3, 2019> |
| (2) | No defense contractor specified in paragraph (1) shall employ a person whose employment is restricted pursuant to the main sentence of Article 17 (1) of the Public Service Ethics Act or a person subject to examination for fitness for employment who fails to obtain confirmation that there are no close relations or to obtain approval of employment under the proviso to the aforesaid paragraph. <Amended on Dec. 3, 2019> |
[This Article Newly Inserted on Dec. 20, 2016]
| Article 60 (Legal Fiction, etc. of Public Officials) |
| Article 61 (Delegation and Entrustment of Authority) |
| (1) | The Minister of National Defense may partially delegate his/her authority bestowed under this Act to the Minister of the Defense Acquisition Program Administration, as prescribed by Presidential Decree. |
| (2) | The Minister of the Defense Acquisition Program Administration may partially entrust his/her authority bestowed under this Act to the President of the Agency for Defense Development and to the President of the Defense Agency for Technology and Quality, as prescribed by Presidential Decree. |
| (3) | Deleted. <Feb. 4, 2020> |
CHAPTER VIII PENALTY PROVISIONS
| Article 62 (Penalty Provisions) |
| (1) | Deleted. <Feb. 4, 2020> |
| (2) | A person who obtains permission under Article 53 or the main sentence of Article 57 (2) by fraud or other improper means, or performs a relevant act without obtaining permission, shall be punished by imprisonment, with or without prison labor, for not more than ten years, or by a fine not exceeding 100 million won. <Amended on May 9, 2014; Dec. 20, 2016> |
| (3) | A person who divulges or pirates confidential information that he/she has learned while performing any of his/her duties in violation of Article 50, shall be punished by imprisonment, with or without prison labor, for not more than five years, or by a fine not exceeding 50 million won. <Amended on May 9, 2014> |
| (4) | Any of the following persons shall be punished by imprisonment, with or without prison labor, for not more than three years, or by a fine not exceeding 30 million won: <Amended on May 9, 2014> |
| 1. | Deleted; <Feb. 4, 2020> |
| 2. | A person who uses the retainer or part payments received pursuant to Article 46 (2), for other purposes; |
| 3. | A person who performs an act specified in Article 48 (1) 12; |
| 4. | A person who violates an order issued pursuant to Article 49 (1), 53, or 54. |
| (5) | Any of the following persons shall be punished by imprisonment with prison labor for not more than one year, or by a fine not exceeding ten million won: <Amended on Apr. 1, 2009; May 9, 2014; May 29, 2016; Dec. 20, 2016> |
| 1. | A person who acquires a substantial controlling interest in management without obtaining approval provided for in the main sentence of Article 35 (3); |
| 2. | A person who uses State-owned property or goods for other purposes, in violation of Article 45 (3); |
| 3. | A person who uses defense materials for other purposes, which have been purchased by concluding a contract for manufacture and sales pursuant to Article 51 (1); |
| 4. | A person who suspends or ceases his/her business without obtaining approval provided for in Article 56; |
| 5. | A person who conducts munitions sales agency without obtaining registration, in violation of Article 57-2 (1), or registration of alterations, in violation of Article 57-2 (2), obtains registration or registration of alterations by fraud or other improper means; |
| 6. | A person who fails to make a report of a commission, in violation of Article 57-4 (1), or to make a report of the alteration of a commission, in violation of Article 57-4 (2), or makes a false report or false report of the alteration thereof; |
| 7. | A person who uses information about a commission for fraudulent purposes, in violation of Article 57-4 (3). |
| (6) | Any of the following persons shall be punished by a fine not exceeding five million won: <Amended on Mar. 27, 2015> |
| 1. | A person who fails to reserve raw materials for the manufacture of defense materials provided for in Article 55 without just grounds; |
| 2. | A person who engages in export business of defense materials without reporting provided for in Article 57 (1), or who reports export business of defense materials by fraud or other improper means. |
| Article 63 (Joint Penalty Provisions) |
Where the representative of a corporation, or an agent, servant, or other employee of a corporation or individual has committed an offense provided for in Article 62 with regard to the affairs of the corporation or individual, such corporation or individual shall be fined pursuant to the provisions of Article 62, in addition to the punishment of the offender: Provided, That the same shall not apply where such corporation or individual has not been negligent in giving due attention and supervision concerning the relevant duties to prevent such offense. [This Article Wholly Amended on Apr. 1, 2009]
| Article 64 (Administrative Fines) |
| (1) | A person who fails to confirm the result of examination, in violation of Article 59-2 (1), shall be punished by an administrative fine of not more than five million won. |
| (2) | The Minister of the Defense Acquisition Program Administration shall impose and collect administrative fines under paragraph (1), as prescribed by Presidential Decree. |
[This Article Newly Inserted on Dec. 20, 2016]
ADDENDA <Act No. 7845, Jan. 2, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That the provisions of Article 32 shall enter into force one month after the date of its promulgation. Article 2 (Repeal of Other Acts)
Article 3 (Preparation for Establishment of Agency for Defense Technology and Quality Assurance)
| (1) | The Minister of the Defense Acquisition Program Administration shall entrust five or less founding members to administer the affairs of the establishment of the Agency for Defense Technology and Quality Assurance within thirty days from the date of promulgation of this Act. |
| (2) | The founding members shall prepare the articles of incorporation of the Agency for Defense Technology and Quality Assurance, obtain approval from the Minister of the Defense Acquisition Program Administration, and have its incorporation registered. |
| (3) | Where the founding members have finished the registration of incorporation, they shall promptly hand over business to the President of the Agency for Defense Technology and Quality Assurance, whereupon, they are deemed as having been relieved of the entrustment after so handing over business. |
Article 4 (Applicability to Disqualification from Designation as Defense Contractor)
The provisions of Article 47 shall apply starting with the case of revocation of designation as defense contractor first after this Act enters into force. Article 5 (Transitional Measures concerning Disposition, etc.)
Where there are provisions in this Act regarding applications, reports, etc. against the disposition that the administrative agency has executed pursuant to the provisions of the previous Act on Special Measures for the Defense Industry and the administrative agency at the time this Act enters into force, it shall be deemed such disposition, application, report, etc. pursuant to the provisions of this Act when there are provisions pertaining thereto in this Act.
Article 6 (Transitional Measures concerning Specialized and Departmentalized Enterprises, etc)
The provisions of the previous Act on Special Measures for the Defense Industry shall apply from the date this Act enters into force until December 31, 2008 to the enterprises and materials specialized and departmentalized pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force.
Article 7 (Transitional Measures concerning Fund for Fostering Defense Industry)
| (1) | The provisions of the previous Act on Special Measures for Defense Industry shall apply from the date this Act enters into force until December 31, 2006 to the Fund for Fostering Defense Industry established pursuant to the provisions of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force. The authorities of the Minister of National Defense pursuant to the provisions of Article 7-2 (5) of the previous Act on Special Measures for the Defense Industry shall be exercised by the Minister of the Defense Acquisition Program Administration. |
| (2) | The assets, claims and liability for the Fund for Fostering Defense Industry pursuant to the provisions of paragraph (1) shall be succeeded by the general account of the State on January 1, 2007. |
Article 8 (Transitional Measures concerning Designation as Specialized Research Institutes)
Organizations that have been designated as research institutes pursuant to the provisions of the previous Act on Special Measures for Defense Industry at the time this Act enters into force shall be deemed as having been designated pursuant to this Act. Article 9 (Transitional Measures concerning Designation of Defense Contractors, etc.)
The enterprises and materials that have been designated as defense contractors and defense materials pursuant to the provisions of the previous Act on Special Measures for Defense Industry at the time this Act enters into force shall be deemed as having been designated pursuant to this Act. Article 10 (Transitional Measures concerning Defense Industry Advancement Association)
| (1) | The Defense Industry Advancement Association authorized for establishment pursuant to the previous Act on Special Measures for Defense Industry at the time this Act enters into force shall be deemed as having obtained permission for establishment pursuant to the provisions of Article 42. |
| (2) | The Defense Industry Advancement Association pursuant to the provisions of paragraph (1) shall be deemed as having been designated as a guarantee organization pursuant to the provisions of Article 43. |
| (3) | The businesses that the Defense Industry Advancement Association conducts as proxy pursuant to the provisions of Article 22-3 (7) of the previous Act on Special Measures for the Defense Industry at the time this Act enters into force shall be succeeded by the Minister of the Defense Acquisition Program Administration. |
Article 11 (Transitional Measures concerning Activities by Defense Procurement Agency of the Ministry of National Defense and Each Service)
The activities conducted by the Defense Procurement Agency of the Ministry of National Defense and each service in connection with defense project programs, such as testing and evaluation, agreements, etc. before this Act enters into force shall be deemed as having been conducted by the Minister of the Defense Acquisition Program Administration pursuant to the provisions of this Act.
Article 12 (Transitional Measures concerning Claims, Liabilities, Employees, etc. of Defense Quality Assurance Agency)
| (1) | Claims and liabilities relating to the activities conducted by the Agency for Defense Development in the name of the President of the Defense Quality Assurance Agency which was under the control of the Agency for Defense Development, and the assets used and administered by the President of the Defense Quality Assurance Agency from among the assets of the Agency for Defense Development at the time this Act enters into force shall be succeeded by the Agency for Defense Technology and Quality Assurance. |
| (2) | The employees working at the Defense Quality Assurance Agency at the time of establishment of the Agency for Defense Technology and Quality Assurance shall be succeeded by the Agency for Defense Technology and Quality Assurance at the same time that the Agency for Defense Technology and Quality Assurance is established within the extent of functions, organizations and regular numbers prescribed in the articles of incorporation. |
| (3) | The activities belonging to the businesses of the Defense Acquisition Program Administration from among the activities conducted by the President of the Defense Quality Assurance Agency before this Act enters into force shall be deemed as having been conducted by the Minister of the Defense Acquisition Program Administration, and the activities belonging to the businesses of the Agency for Defense Technology and Quality Assurance shall be deemed as having been conducted by the President of the Agency for Defense Technology and Quality Assurance. |
Article 13 (Transitional Measures concerning Penal Provisions)
Article 14 (Special Cases concerning Special Appointments, etc.)
| (1) | For the purpose of efficiently promoting defense acquisition programs and maintaining the continuity of the programs, the civilian military employees who are or have been performing the duties relating to the defense acquisition programs may be specially appointed as public officials belonging to the Defense Acquisition Program Administration by June 30, 2006. In this case, the period of work necessary for the rank expected for appointment may be reduced, notwithstanding the provisions of Article 28 (2) 3 of the State Public Officials Act. |
| (2) | Those who have been specially employed pursuant to the provisions of paragraph (1) may be exempt from the appointment to probationer notwithstanding the provisions of main sentence of Article 29 (1) of the State Public Officials Act, and may be appointed to a higher rank as prescribed by Presidential Decree, notwithstanding the provisions of Article 40 of the same Act. |
| (3) | Where the salary of the person specially appointed pursuant to the provisions of paragraph (1) is less than the salary before the special appointment, all or a part of the difference in salary may be supplemented as prescribed by Presidential Decree, notwithstanding the provisions of Article 47 (1) of the State Public Officials Act. |
| (4) | Where the term of service of a specially appointed civilian military employee, who has been in service (including a term of service as soldier or other public official) for more than thirty years, is calculated for the purposes of conferment of decorations pursuant to the provisions of Article 15 of the Awards and Decorations Act, the term of service at the Defense Acquisition Program Administration shall be deemed as having served continuously as a civilian military employee. |
| (5) | The qualifications for application, method of examination, etc. in the special appointment pursuant to the provisions of paragraph (1) shall be prescribed by Presidential Decree. |
Article 15 Omitted.
Article 16 (Relationship with Other Statutes)
Where the provisions of the previous Act on Special Measures for the Defense Industry are cited in other statutes at the time this Act enters into force and there are corresponding provisions in this Act, this Act or the relevant provisions of this Act shall be deemed as having been cited in place of the previous provisions.
ADDENDA <Act No. 8486, May 25, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 10 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 9561, Apr. 1, 2009>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10218, Mar. 31, 2010>
| (1) | (Enforcement Date) This Act shall enter into force six months after the date of its promulgation. |
| (2) | (Applicability to Presentation of Analysis and Evaluation Outcomes, etc) The amended provisions of Article 5 (4) shall apply starting with a defense force improvement project first analyzed or evaluated after this Act enters into force. |
ADDENDA <Act No. 10907, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation. |
Articles 2 through 7 Omitted.
ADDENDA <Act No. 11713, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 12559, May 9, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Sanction against Violation of Pledge of Integrity)
The amended provisions of Article 59 shall apply from a violation of pledge of integrity committed after this Act enters into force. Article 3 (Transitional Measures concerning Medium-Term National Defense Plan)
A medium-term national defense plan formulated pursuant to the former Article 13 as at the time this Act enters into force shall be deemed a medium-term national defense plan formulated pursuant to the amended provisions of Article 13. Article 4 (Transitional Measures concerning Decisions on Requirements and Revision thereof)
Decisions on requirements for weapons systems, etc. corresponding to ongoing defense force improvement projects as at the time this Act enters into force and the revision thereof shall be deemed made by the Chairman of the Joint Chiefs of Staff pursuant to the amended provisions of Articles 15 and 16. Article 5 (Transitional Measures concerning Test and Evaluation Plans for Weapons Systems and Core Technologies)
Test and evaluation plans formulated by the Minister of the Defense Acquisition Program Administration pursuant to the former Article 21 as at the time this Act enters into force shall be deemed test and evaluation plans formulated by the Minister of National Defense pursuant to the amended provisions of Article 21.
ADDENDA <Act No. 12748, Jun. 11, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Non-Weapon Systems)
“Force support system” in the amended provisions of Article 46 (5) shall be deemed “non-weapon system” (referring to the system before the amendment according to the partially amended Defense Acquisition Program Act (Act No. 12559)) until November 9, 2014.
ADDENDA <Act No. 12960, Jan. 6, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 13243, Mar. 27, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Intellectual Property Rights under Research and Development)
The amended provisions of Article 31-2 shall begin to apply from the intellectual property right derived from research and development projects after this Act enters into force. Article 3 (Transitional Measures concerning Reporting on Export Business and Intermediation Business for General Defense Materials)
Each person, who exports, or intermediate the trade of, general defense materials for business purposes as at the time this Act enters into force, shall report thereon pursuant to the amended provisions of Article 57 (1) within six months after this Act enters into force. Article 4 (Transitional Measures concerning Permission for Exporting General Defense Materials or Intermediating Trade thereof)
Where applications for permission to export, or intermediate the trade of, general defense materials have been filed with the Minister of Trade, Industry and Energy before this Act enters into force, the former provisions of Article 57 (2) shall apply to such applications, notwithstanding the amended provisions of Article 57 (2).
ADDENDUM <Act No. 13507, Sep. 1, 2015>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 13777, Jan. 19, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 13854, Jan. 27, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 14182, May 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Transitional Measures concerning Munitions Sales Agent)
A person who conducts munitions sales agency, information about whose company is registered with and managed by the Defense Acquisition Program Administration pursuant to Article 25 and related statutes as at the time this Act enters into force, shall be deemed registered pursuant to the amended provisions of Article 57-2.
ADDENDA <Act No. 14422, Dec. 20, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 9 (3) shall enter into force on the date of its promulgation. Article 2 (Applicability to Reporting of Commission)
The amended provisions of Article 57-4 shall begin to apply from the first contract concerning a commission concluded after this Act enters into force. Article 3 (Applicability to Punishment for Violation of Pledge of Integrity)
The amended provisions of Article 59 shall begin to apply from with the first violation committed by a defense contractor, etc. who fails to abide by the details of a pledge of integrity after this Act enters into force. Article 4 (Applicability to Employment of Persons Subject to Examination for Fitness for Employment)
The amended provisions of Article 59-2 shall begin to apply from the first employment of a person subject to examination for fitness for employment after this Act enters into force. Article 5 (Transitional Measures concerning Certification of Quality Management)
A defense contractor, etc. that has obtained quality certification from the Minister of the Defense Acquisition Program Administration pursuant to Article 29 (1) and related statutes as at the time this Act enters into force shall be deemed to have obtained certification of quality management pursuant to the amended provisions of Article 29-2. Article 6 (Transitional Measures concerning Additional Dues)
Notwithstanding the amended provisions of Article 58, the former provisions shall apply to contracts concluded before this Act enters into force.
ADDENDA <Act No. 14609, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 and 3 Omitted.
ADDENDA <Act No. 14610, Mar. 21, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation: Provided, That the amended provisions of Article 41 shall enter into force three months after the date of their promulgation. Article 2 (Applicability to Presentation of Pledge of Integrity)
The amended provisions of the latter part of Article 6 (1) shall begin to apply from the first contract for defense acquisition program concluded after this Act enters into force. Article 3 (Applicability to Recognition of Conscientious Performance of Research and Development)
The amended provisions of Article 46-2 shall begin to apply from the first contract for research and development of core technology concluded after this Act enters into force.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That among the Acts amended pursuant to Article 5 of this Addenda, amended parts of the Acts which were promulgated before this Act enters into force but the enforcement dates of which have not arrived, shall enter into force on the enforcement date of the relevant Act, respectively. Articles 2 through 6 Omitted.
ADDENDUM <Act No. 15051, Nov. 28, 2017>
This Act shall enter into force three months after the date of its promulgation: Provided, That the amended provisions of the latter part of Article 15 (1) shall enter into force six months after the date of their promulgation.
ADDENDA <Act No. 15344, Jan. 16, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 16671, Dec. 3, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 9 Omitted.
ADDENDA <Act No. 16929, Feb. 4, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 17165, Mar. 31, 2020>
This Act shall enter into force one year after the date of its promulgation.