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ACT ON THE PROMOTION OF ANIMATION INDUSTRY

Act No. 16690, Dec. 3, 2019

 Article 1 (Purpose)
The purpose of this Act is to create a foundation for the development of the animation industry and strengthen its competitiveness by providing for matters necessary to promote and support the animation industry, and thereby contribute to improving the quality of culture available to the people and developing the national economy.
 Article 2 (Definitions)
The terms used in this Act are defined as follows:
1. The term “animation” means any imagery created by a method in which static objects existing in real or virtual worlds are manipulated to appear as moving images using a variety of techniques and media such as 2D, 3D, CG, and stop motion;
2. The term “animation industry” means any industry described below:
(a) An industry engaged in the creation, planning, production, utilization, circulation, distribution, export, import, etc. of animation or animation products (referring to tangible and intangible goods and services as well as any combinations thereof that generate additional economic value by using animation) or an industry engaged in any service related thereto;
(b) An industry relating to sample product exhibitions, trade shows, fairs, festivals, etc. targeting animation or animation products.
3. The term “Korean animation” means any animation produced by a person (including a corporation) with its principal business establishment in the Republic of Korea, which has obtained recognition in accordance with the criteria prescribed by Presidential Decree;
4. The term “co-produced animation” means any animation that has obtained recognition as prescribed by Presidential Decree, of those animations jointly produced by a Korean animation producer and a foreign animation producer;
5. The term “digital animation” means any animation processed and treated in the form of digital file and provided to users through a digital media file such as a disk or an information and communications network as defined in Article 2 (1) 1 of the Act on Promotion of Information and Communications Network Utilization and Information Protection (hereinafter referred to as “information and communications network”);
6. The term “animation business entity” means any of the following persons engaged in a profit-making business:
(a) Animation producer: Any person engaged in the business of animation production on an ongoing basis;
(b) Animation exporter or importer: Any person engaged in the business of animation import or export on an ongoing basis;
(c) Animation distributor: Any person engaged in the business of animation distribution on an ongoing basis.
 Article 3 (Relationship to Other Statutes)
Unless otherwise provided in other statutes, promotion and support of the animation industry shall be governed by this Act.
 Article 4 (Formulation and Implementation of Master Plan and Implementation Plan)
(1) For the purpose of creating a foundation for the animation industry and increasing its competitiveness, the Minister of Culture, Sports and Tourism shall formulate a master plan for promoting the animation industry (hereinafter referred to as “master plan”) with the opinion of the Animation Promotion Committee established under Article 16, and implement such plan.
(2) The master plan shall include the following information:
1. Basic directions for promoting the animation industry;
2. Development of professional personnel in the animation industry;
3. Laying a foundation for the animation industry;
4. Development of technology and standards relating to the animation industry;
5. Support for international cooperation and overseas expansion pertaining to the animation industry;
6. Plans for the appropriation and efficient management of funds relating to the animation industry;
7. Investigations and research for encouraging the animation industry;
8. Investigations and research for promoting the distribution and utilization of animation;
9. Plans for collection and preservation of animation materials;
10. Other matters necessary for promoting the animation industry.
(3) The Minister of Culture, Sports and Tourism shall formulate an annual implementation plan in accordance with the master plan (hereinafter referred to as "implementation plan") and implement such plan every year.
(4) Other matters necessary for the formulation, implementation, etc. of the master plan and implementation plans shall be prescribed by Presidential Decree.
 Article 5 (Encouragement of Animation Industry)
(1) The Government shall develop policy measures to promote and support the animation industry.
(2) The Minister of Culture, Sports and Tourism may provide funds, loans, etc. to animation business entities and related organizations that contribute to the animation industry.
(3) Necessary matters regarding the procedure and method for providing support under paragraph (2) shall be prescribed by Presidential Decree.
 Article 6 (Development of Professional Personnel)
(1) For the purpose of developing professional personnel related to the animation industry, the State and local governments shall formulate and implement plans for the following matters:
1. Analysis of supply and demand for professional personnel and personnel development related to the animation industry;
2. Strengthening cooperation among academia, industry and public bodies to develop professional personnel related to the animation industry.
(2) For the purpose of developing professional personnel related to the animation industry, the State and local governments may designate universities, research institutes (including corporate-affiliated research institutes) and other specialized institutions as professional personnel development centers, as prescribed by Presidential Decree, and provide all or part of the money necessary to pay the expenses to deliver education and training.
 Article 7 (Facilitation of Technological Development)
For the purpose of promoting the development of technology related to the animation industry, the Government may, within the budget, contribute funds or provide subsidy funds to cover the expenses incurred by persons who undertake technology development projects.
 Article 8 (Cooperative Development and Research)
(1) The Minister of Culture, Sports and Tourism shall make efforts to develop a systemic framework to promote cooperative development and research by advancing shared use of personnel, facilities, equipment, funds, and information for the development and research of animation or animation products.
(2) The Minister of Culture, Sports and Tourism may provide all or part of the money necessary to pay the expenses incurred by persons who promote cooperative development and research under paragraph (1) in conducting cooperative development and research activities.
 Article 9 (Creation of Fair Distribution Environment)
(1) None of the following business entities engaged in the production, sale, or distribution of animation may compel an unfair contract or make unjust gains by using its status, including a unilateral request for the transfer of intellectual property rights in connection with animation, without reasonable ground:
1. A business entity engaged in facilities-based telecommunication business under Article 5 (2) of the Telecommunications Business Act, as prescribed by Presidential Decree;
2. A business entity engaged in value-added telecommunication business under Article 5 (3) of the Telecommunications Business Act, as prescribed by Presidential Decree;
3. A broadcasting business entity under subparagraph 3 of Article 2 of the Broadcasting Act;
4. An Internet multimedia broadcasting business entity under subparagraph 5 of Article 2 of the Internet Multimedia Broadcast Services Act;
5. Other persons engaged in the production, sale, distribution, etc. of animation.
(2) When the Minister of Science and ICT or the Minister of Culture, Sports and Tourism deems that any person engaged in the production, sale, distribution, etc. of animation commits an act in violation of paragraph (1), he or she may request the head of a relevant agency to take necessary action.
 Article 10 (Standard Contracts)
(1) The Minister of Culture, Sports and Tourism may develop a standard contract in consultation with the Fair Trade Commission, the Korea Communications Commission, and the Ministry of Science and ICT, and recommend its use to business entities and their organizations.
(2) When the Minister of Culture, Sports and Tourism establishes or modifies a standard contract under paragraph (1), he or she shall seek opinions from related business entities’ organizations and experts.
 Article 11 (Support for International Cooperation and Overseas Expansion)
(1) The Minister of Culture, Sports and Tourism may promote the following projects to increase export competitiveness of animation and expand its overseas operations:
1. Overseas marketing and promotion activities;
2. Hosting of international exhibitions, etc.;
3. Attraction of foreign investment;
4. Support for overseas localization of animation;
5. Support for overseas co-production of animation;
6. Other projects necessary for international cooperation and overseas expansion.
(2) To ensure the efficiency of support operations for the projects listed in the subparagraphs of paragraph (1), the Minister of Culture, Sports and Tourism may entrust or outsource those projects to the Korea Creative Content Agency established under Article 31 of the Framework Act on the Promotion of Cultural Industries or an animation-related institution or organization, as prescribed by Presidential Decree, and may provide funds to defray all or part of the necessary expenses incurred therein.
 Article 12 (Protection of Intellectual Property Rights)
(1) For the purpose of protecting and encouraging creative activities regarding animation, the Government shall develop policy measures to protect the intellectual property rights in animation.
(2) The Government may promote the following projects to protect the intellectual property rights in animation:
1. Measures against intellectual property infringement on the Internet or using other electronic technology;
2. Education and publicity on copyrights and other intellectual property rights in the field of animation;
3. Other matters relating to the protection of intellectual property rights.
(3) The Government may designate a specialized institution or organization in the field of intellectual property rights to promote the projects listed in the subparagraphs of paragraph (2), as prescribed by Presidential Decree.
 Article 13 (Protection of Users’ Rights and Interests)
(1) For the purpose of protecting the rights and interests of users in the course of promoting the animation industry, the Minister of Culture, Sports and Tourism shall develop the following policy measures:
1. Publicity and education for the proper use of animation;
2. Social responsibilities of people in the animation industry to protect animation users;
3. Remedies for complaints and damage by animation users;
4. Other matters related to the protection of animation users.
(2) Animation business entities and persons engaged in the business of producing, distributing or providing the use of animation shall actively cooperate in promoting policy measures for protecting animation users under paragraph (1).
 Article 14 (Enhancement of Infrastructure Capacity of Animation Industry)
(1) The State and local governments shall make efforts to enhance and expand infrastructure capacity of the animation industry, which includes expanding infrastructure facilities or building complexes.
(2) Articles 21 through 28, 28-2, 28-3, 29, 30 and 30-2 of the Framework Act on the Promotion of Cultural Industries shall apply mutatis mutandis with regard to the enhancement and expansion of infrastructure capacity of the animation industry under paragraph (1).
 Article 15 (Compilation of Statistics on Animation Industry)
(1) The Minister of Culture, Sports and Tourism may compile and manage statistics on the animation industry necessary to ensure the effective development and implementation of policy measures under Article 5 (1).
(2) The Minister of Culture, Sports and Tourism shall, in order to compile and manage statistics under paragraph (1), require that the head of a relevant central administrative agency, the head of a local government, the head of a public institution defined in the Act on the Management of Public Institutions (hereinafter referred to as “public institution”), and any person engaged in a animation-related business provide necessary data and information. In such cases, the head of a relevant central administrative agency, etc. receiving such a request shall comply with it unless there is a compelling reason not to do so.
(3) The compilation of statistics under paragraph (1) shall be made in accordance with the applicable provisions of the Statistics Act, but necessary matters regarding the subjects and scope of the compilation shall be prescribed by Presidential Decree.
 Article 16 (Animation Promotion Committee)
(1) There may be established an Animation Promotion Committee (hereinafter referred to as the “Committee”) under the jurisdiction of the Minister of Culture, Sports and Tourism to afford consultation regarding major matters for the promotion of the animation industry.
(2) The Committee shall afford consultation for the following matters:
1. Formulation and implementation of the master plan and implementation plans;
2. Other matters that the Minister of Culture, Sports and Tourism deems necessary for the promotion of the animation industry and submits to the Committee meeting.
(3) The Committee shall be comprised of not more than 20 members including one Chairperson and one Vice-Chairperson, who shall be elected among and by members.
(4) The Minister of Culture, Sports and Tourism shall commission members of the Committee from among those who have much expertise and experience in the field of animation, ensuring the adequate representation of gender and age.
(5) Each member shall hold office for a term of two years and may serve consecutively for further terms.
(6) Other matters necessary for the composition and operation of the Committee shall be prescribed by Presidential Decree.
 Article 17 (Reports by Animation Business Entities)
(1) Any person who wishes to become an animation business entity shall make a report to the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu (the head of a Gu refers to the head of an autonomous Gu; hereinafter the same shall apply). The same shall also apply to any modification of the reported matters.
(2) In any of the following cases, the relevant person may be exempt from the reporting obligation under paragraph (1):
1. If the animation is produced by the State or a local government;
2. If the animation is produced by an educational institution or training institution established under relevant statutes or regulations for self-education or training purposes;
3. If the animation is produced by a broadcasting business entity as defined in subparagraph 3 of Article 2 of the Broadcasting Act for broadcasting purposes;
4. If the animation is produced by a public institution for the promotion of its projects;
5. If the animation is produced for the purpose of commemorating events such as ceremonial occasions or religious practices, which excludes circulating it to the public or providing it to a Si office;
6. If the animation is produced and distributed for the purpose of providing to a Si office using an information and communications network only;
7. If the animation is produced for distribution to many unspecified people or for a purpose other than the purpose of providing to a Si office;
8. Other cases prescribed by Presidential Decree.
(3) Necessary matters regarding the procedure for reporting or reporting modifications under paragraph (1) shall be prescribed by Ordinance of the Ministry of Culture, Sports and Tourism.
 Article 18 (Delegation of Authority)
The Minister of Culture, Sports and Tourism may delegate part of the authority vested in him or her under this Act to the Special Metropolitan City Mayor, a Metropolitan City Mayor, the Special Self-Governing City Mayor, a Do Governor, and the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu, as prescribed by Presidential Decree.
 Article 19 (Administrative Fines)
(1) A person engaged in the business of producing, importing, distributing, or screening animation without reporting in violation of the former part of Article 17 (1), shall be subject to an administrative fine of not more than 10 million won.
(2) A person who fails to report modifications in violation of the latter part of Article 17 (1), shall be subject to an administrative fine of not more than three million won.
(3) The administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Special Self-Governing City Mayor, the Special Self-Governing Province Governor, or the head of a Si/Gun/Gu, as prescribed by Presidential Decree.
ADDENDUM <Act No. 16690, Dec. 3, 2019>
This Act shall enter into force six months after the date of its promulgation.