INDUSTRIAL DEVELOPMENT ACT
Wholly Amended by Act No. 9584, Apr. 1, 2009
Amended by Act No. 9685, May 21, 2009
Act No. 9931, Jan. 13, 2010
Act No. 10490, Mar. 30, 2011
Act No. 11690, Mar. 23, 2013
Act No. 12307, Jan. 21, 2014
Act No. 12591, May 20, 2014
Act No. 12892, Dec. 30, 2014
Act No. 13448, Jul. 24, 2015
Act No. 14109, Mar. 29, 2016
Act No. 14839, Jul. 26, 2017
Act No. 15178, Dec. 12, 2017
Act No. 16172, Dec. 31, 2018
Act No. 16998, Feb. 11, 2020
Act No. 17530, Oct. 20, 2020
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to sharpen competitiveness of the industrial sector and to promote sustainable industrial development to cope with the advent of the knowledge-based economy, thereby contributing to development of the national economy.
| Article 2 (Scope of Application) |
| 1. | The manufacturing industry; |
| 2. | The service industry closely related to enhancing competitiveness of the manufacturing industry. |
[This Article Wholly Amended on Mar. 30, 2011]
| Article 3 (Industrial Development Policy) |
In order to achieve the purposes of this Act, the Minister of Trade, Industry and Energy shall devise policies (hereinafter referred to as "industrial development policies") for any purpose falling under any of the following subparagraphs, after consulting with the heads of relevant central administrative agencies: <Amended on Mar. 23, 2013>
| 1. | Facilitation of the shift into the knowledge-based economy; |
| 2. | Enhancement of the industry’s competitiveness; |
| 3. | Establishment of a foundation for sustainable development of the industry; |
| 4. | Facilitation of corporate restructuring and business realignment; |
| 5. | Improvement of industrial technology and productivity; |
| 6. | Supply and efficient management of workforce engaged in the industrial sector; |
| 7. | Expansion of industrial infrastructure; |
| 8. | Promotion of international industrial cooperation; |
| 9. | Establishment of a statistical base for the forecasting and analysis of each industrial sector. |
CHAPTER II PROMOTION OF INDUSTRIAL COMPETITIVENESS
| Article 4 (Mid- to Long-Term Development Outlook) |
| (1) | The Minister of Trade, Industry and Energy may formulate a five-year outlook for mid- to long-term industrial development (hereinafter referred to as "mid- to long-term development outlook") aimed at presenting a mid- and long-term direction for industrial development. <Amended on Mar. 23, 2013> |
| (2) | In formulating the mid- to long-term development outlook, the following matters shall be included: <Amended on Jan. 13, 2010> |
| 1. | Prospects for the sophistication of industrial structure; |
| 2. | Development prospects and investment forecasts for each industrial sector; |
| 3. | Development prospects for a new, high-potential industry which may contribute substantially to the national economy (hereinafter referred to as "new industry"); |
| 4. | Prospects for a change in the demand and supply of elements that constitute a corporation, such as technology, human resources, sites, and resources (excluding energy under subparagraph 1 of Article 2 of the Energy Act and wastes under subparagraph 1 of Article 2 of the Wastes Control Act; hereinafter the same shall apply); |
| 5. | Prospects for industrial sustainability. |
| Article 5 (Designation of Advanced Technology and Products) |
| (1) | To facilitate the sophistication of industrial structure in line with the mid- to long-term development outlook, the Minister of Trade, Industry and Energy shall determine the scope of advanced technologies and advanced products and make a public announcement thereof. <Amended on Mar. 23, 2013> |
| (2) | The scope of advanced technologies and advanced products under paragraph (1) shall include technologies and products with a high level of technological intensity and high-speed technological innovation, in consideration of the matters falling under any of the following subparagraphs: |
| 1. | Contribution to the advancement of industrial structure; |
| 2. | Creation of new demand and added value; |
| 3. | Interconnection among industries. |
| Article 6 (Establishment of Policies for Improving Competitiveness of each Industrial Sector) |
| (1) | The Minister of Trade, Industry and Energy shall establish a policy for the purpose of strengthening the competitiveness of each industrial sector (hereinafter referred to as "policy for the competitiveness of each industrial sector") in line with the mid- to long-term development outlook. <Amended on Mar. 23, 2013> |
| (2) | The policy for the competitiveness of each industrial sector shall include the following: |
| 1. | Current status of national competitiveness of each industrial sector, and plans for strengthening thereof; |
| 2. | Measures to ensure smooth supply of the elements that constitute a corporation, such as technology, manpower, sites, and resources. |
| 3. | Measures to facilitate internationalization, environmental friendliness, and a knowledge-based economy; |
| 4. | Measures to improve resource productivity (referring to the ratio of output and added value to amounts of resources which are an element of production; hereinafter the same shall apply); |
| 5. | Measures to reduce greenhouse gas emission in the industrial sector; |
| 6. | Measures to analyze the consequences of climate change, such as global warming, in each industrial sector and to cope with the climate change. |
| Article 7 (Stimulating Creation of New Industries) |
| (1) | The Minister of Trade, Industry and Energy shall establish policies to stimulate the creation of new industries in line with the mid- to long-term development outlook. <Amended on Mar. 23, 2013> |
| (2) | Policies to stimulate the creation of new industries shall include the following: |
| 1. | New industry prospects for creating added value and jobs; |
| 2. | Direction-setting for development of a new industry; |
| 3. | Measures to ensure smooth supply of the elements that constitute a corporation, such as technology, manpower, sites, and resources. |
| Article 8 (Fostering Knowledge Services Industry) |
| (1) | The Government may carry out business activities which promote the development of the knowledge services industry for boosting the value and competitiveness of the industry, which falls under any of the following subparagraphs: |
| 1. | Survey of the knowledge services industry conditions at home and abroad; |
| 2. | Training of personnel specializing in the knowledge services industry and support for research; |
| 3. | Development and distribution of a new knowledge services business model; |
| 4. | Support for the establishment and utilization of a knowledge services information system; |
| 5. | Support for standardization of the knowledge services industry and diffusion of such services; |
| 6. | Promotion of outsourcing of the knowledge services; |
| 7. | Other support for strengthening the competitiveness of the knowledge services industry. |
| (2) | The knowledge services industry under paragraph (1) refers to an industry prescribed by Presidential Decree, which generates added value by producing, processing, utilizing, and distributing knowledge. |
| (3) | The Government may allow an institution prescribed by Presidential Decree, which is deemed to have expertise in the knowledge services industry, to support the business activities under paragraph (1). |
| Article 9 (Regional Promotion Projects) |
The Minister of Trade, Industry and Energy may implement regional promotion projects in order to sharpen the country’s industrial competitiveness and to develop regional industries. <Amended on Mar. 23, 2013>
| Article 10 (Formulation of Policies for Encouraging Project Specialization) |
In order to enhance industrial competitiveness, the Minister of Trade, Industry and Energy may establish policies to encourage specialization of projects managed by enterprises. <Amended on Mar. 23, 2013>
| Article 10-2 Deleted. <Jan. 21, 2014> |
| Article 11 (Stimulation of Inter-corporate Cooperation) |
| (1) | In order to enhance industrial competitiveness through inter-corporate cooperation, the Minister of Trade, Industry and Energy may extend necessary support to an enterprise which carries out projects falling under any of the following subparagraphs: <Amended on Mar. 23, 2013> |
| 1. | Projects for standardizing or sharing parts, etc.; |
| 2. | Projects for jointly developing technology or trademarks; |
| 3. | Partnership projects in technology and manpower, through inter-corporate cooperation; |
| 4. | Projects for improving resource productivity or reducing greenhouse gas emissions through inter-corporate cooperation. |
| (2) | The Minister of Trade, Industry and Energy shall consult with the Fair Trade Commission on whether to provide assistance when a project which he/she intends to support under paragraph (1) is likely to fall under unfair collaborative actions referred to Article 19 of the Monopoly Regulation and Fair Trade Act. <Amended on Mar. 23, 2013> |
| (3) | In order to stimulate inter-corporate cooperation, the Minister of Trade, Industry and Energy may extend support necessary for the efficient operation of business to corporations or organizations prescribed by Presidential Decree which conduct business activities falling under any of the following subparagraphs: <Amended on Mar. 23, 2013> |
| 1. | Mediation for inter-corporate cooperation; |
| 2. | Provision of information for inter-corporate cooperation. |
| Article 12 (Promotion and Development of Managerial Resources) |
| (1) | The Government may extend support necessary for the enhancement of managerial capacity of companies, such as the development of human resources. |
| (2) | The Government may set up and operate a consultative body on human resources development for each industry, which consists of persons who operate business (hereinafter referred to as "business entity"), trade associations (referring to organizations established as non-profit corporations by business entities pursuant to Article 32 of the Civil Act), education and training institutions, research institutes, labor unions, etc. in order to perform the business affairs falling under each of the following subparagraphs: <Amended on Mar. 29, 2016> |
| 1. | The analysis of the supply and demand for manpower and of the demand for education and training; |
| 2. | The development and proposal of standards for qualifications and job-performance capability; |
| 3. | The development of education and training programs. |
| (3) | The Government may provide necessary assistance to each consultative body on human resources development for each industry referred to in paragraph (2). |
| (4) | The composition and operating method of each industry-specific human resources development council under paragraph (2) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 12-2 (Reeducation and Retraining of Industrial Human Resources) |
| (1) | The State and local governments may provide reeducation or retraining so that industrial human resources can adapt themselves to changes in industrial environments, such as digital transformation, advancement into new industry verticals, and key industry advancement, and can constantly develop and improve their job competency, etc. |
| (2) | The State and local governments may provide administrative and financial support to persons who provide reeducation or retraining under paragraph (1). |
| (3) | Institutions providing reeducation or retraining under paragraph (1), methods and procedures therefor, and other necessary matters shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Oct. 20, 2020]
| Article 13 (Support for Business Realignment) |
| (1) | The Government may provide necessary support for the following projects to better utilize idle managerial resources resulting from such processes as business realignment prescribed by Presidential Decree: |
| 1. | Projects for the disposal of idle facilities, such as sale of idle facilities and removal of security; |
| 2. | Projects for employment stability, such as training for reemployment and job placement; |
| 3. | Projects for utilization of idle managerial resources, such as transfer of technology and succession of employment. |
| (2) | In order to boost the trading of idle facilities, the Minister of Trade, Industry and Energy may provide the corporations or organizations engaged in the following business and prescribed by Presidential Decree, with support necessary for the efficient operation of their business: <Amended on Mar. 23, 2013> |
| 1. | Mediation for inter-corporate trading of idle facilities; |
| 2. | Business necessary for active trading of idle facilities, such as provision of information with regard to the purchase and sale of idle facilities. |
| Article 14 (Development of Industrial Statistics System) |
The Minister of Trade, Industry and Energy may establish a system for investigating and analyzing the statistics of the relevant industries in order to smoothly formulate and implement industrial development policies, the mid- to long-term industrial development outlook, and policies for strengthening competitiveness of each industrial sector (hereinafter referred to as "industrial development policies, etc."). <Amended on Mar. 23, 2013>
| Article 15 (Surveys on Actual Conditions) |
| (1) | The Minister of Trade, Industry and Energy may conduct a fact-finding investigation of the matters falling under any of the following subparagraphs in order to efficiently formulate and implement industrial development policies, etc.: <Amended on Mar. 23, 2013> |
| 1. | Industrial competitiveness; |
| 2. | Industries’ investment in technological development and technological competitiveness; |
| 3. | Capital investment by enterprises; |
| 4. | Industrial supply and demand; |
| 5. | Supply and demand for the industrial manpower; |
| 6. | Overseas investments by enterprises; |
| 8. | Industrial restructuring and business realignment of enterprises; |
| 9. | Other pending industrial issues deemed necessary by the Minister of Trade, Industry and Energy to respond to dramatic changes in the environment both at home and abroad. |
| (2) | The Minister of Trade, Industry and Energy, where necessary to conduct a fact-finding investigation referred to in paragraph (1), may request the heads of the relevant central administrative agencies, local governments, public institutions under Article 4 of the Act on the Management of Public Institutions (hereinafter referred to as "public institutions"), and the heads of other institutions prescribed by Presidential Decree to submit materials or state their opinions, etc. with regard thereto. In such cases, the heads of the relevant institutions shall comply with such request unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013> |
| (3) | The methods and procedures for a fact-finding investigation under paragraph (1) and other necessary matters shall be prescribed by Presidential Decree. |
CHAPTER III ESTABLISHMENT OF FOUNDATION FOR SUSTAINABLE INDUSTRIAL DEVELOPMENT
| Article 16 (Improvement of Resource Productivity) |
| (1) | The Minister of Trade, Industry and Energy shall formulate and implement comprehensive policies to improve resource productivity of industries, that include matters falling under any of the following subparagraphs, taking into account the supply and demand for and utilization of resources: <Amended on Mar. 23, 2013> |
| 1. | Matters concerning setting an objective for resource productivity improvement; |
| 2. | Matters concerning changes in and forecast for the supply and demand for resources at home and abroad; |
| 3. | Matters concerning measures to ensure stable procurement and supply of resources necessary for industrial production and management thereof; |
| 4. | Matters concerning the diffusion and popularization of technology designed to improve resource productivity, and of management techniques; |
| 5. | Matters concerning education and training and fostering of human resources to improve resource productivity; |
| 6. | Other matters determined and publicly announced by the Minister of Trade, Industry and Energy to improve resource productivity. |
| (2) | The Minister of Trade, Industry and Energy may prepare statistics concerning resource productivity of industry, as prescribed by Presidential Decree, to formulate policies referred to in paragraph (1). <Amended on Mar. 23, 2013> |
| (3) | The Minister of Trade, Industry and Energy may, where necessary for preparing statistics under paragraph (2), request the heads of relevant central administrative agencies, local governments, public institutions, education and research institutions, and other institutions prescribed by Presidential Decree, to submit data. In such case, the heads of the relevant institutions shall comply with such request unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013> |
| Article 17 (Tasks regarding Resource Productivity) |
In order to improve resource productivity and manage sustainable resources efficiently, the Minister of Trade, Industry and Energy may allow institutions prescribed by Presidential Decree, in recognition of their expertise in the improvement and management of resource productivity, to perform tasks falling under any of the following subparagraphs: <Amended on Mar. 23, 2013>
| 1. | Tasks concerning investigations of the status of the supply and demand, inventory, and consumption trends of resources at home and abroad, and information on the overseas market, etc.; |
| 2. | Tasks concerning the investigations and management of the entire processes, such as securing, supply, and utilization, regarding resources, which have significant influences on industrial production; |
| 3. | Tasks concerning statistics, including the preparation, analysis, and management of statistics on resource productivity; |
| 4. | Tasks concerning surveys on the status of resource productivity in industry, and provision of survey findings; |
| 5. | Tasks concerning technology development for improving resource productivity of industry, and the diffusion and popularization of management techniques; |
| 6. | Other tasks prescribed by Presidential Decree concerning the improvement of resource productivity and the management of sustainable resources. |
| Article 18 (Evaluation Standards and Indicators of Sustainable Industrial Development) |
| (1) | The Minister of Trade, Industry and Energy may establish and use the evaluation standards and indicators aimed at measuring and evaluating sustainability of an industry for sustainable industrial development. <Amended on Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy shall seek to measure and evaluate sustainability of an industry, by utilizing standards and indicators referred to in paragraph (1), and reflect the results in industrial development policies. <Amended on Mar. 23, 2013> |
| Article 19 (Comprehensive Policies for Sustainable Management) |
| (1) | The Government shall formulate and implement comprehensive policies every five years to encourage corporations to promote activities for sustainable management (hereinafter referred to as "sustainable management") that take into account economic profitability, environmental soundness, and social responsibility. <Amended on Dec. 12, 2017> |
| (2) | Comprehensive policies under paragraph (1) shall include the following matters: <Amended on Dec. 12, 2017> |
| 1. | Basic direction and goals of policies to promote sustainable management of corporations; |
| 2. | Measures to cope with international standardization and regularization of sustainable management; |
| 3. | Measures to sharpen industrial competitiveness through sustainable management; |
| 4. | Measures to encourage companies to autonomously establish and expand a foundation for sustainable management. |
| (3) | The Minister of Trade, Industry and Energy shall formulate and implement annual implementation plans according to the comprehensive policies under paragraph (1). <Amended on Dec. 12, 2017> |
| (4) | The Government may provide necessary support to encourage companies to autonomously promote sustainable management. <Amended on Dec. 12, 2017> |
| (5) | The Minister of Trade, Industry and Energy may designate institutions or organizations related to supporting companies as sustainable management support centers to efficiently promote sustainable management of enterprises. <Newly Inserted on Dec. 12, 2017> |
| (6) | The Minister of Trade, Industry and Energy may provide sustainable management support centers with contributions or subsidies necessary for performance of their affairs and operation of the centers within budget. <Newly Inserted on Dec. 12, 2017> |
| (7) | The Minister of Trade, Industry and Energy may revoke the designation of sustainable management support centers if they fail to meet the qualification requirements referred to in paragraph (8). <Newly Inserted on Dec. 12, 2017> |
| (8) | Matters necessary for designation and revocation of designation of sustainable management support centers and their operation shall be prescribed by Presidential Decree. <Newly inserted on Dec. 12, 2017> |
CHAPTER IV SMOOTH CORPORATE RESTRUCTURING
| Article 20 (Registration of Private Equity Funds for Improving Corporate Structure) |
| 1. | The private equity fund shall aim to invest at least 50/100 of its assets (hereinafter referred to as "company assets") in companies subject to restructuring pursuant to Article 21; |
| 3. | The minimum amount of investment shall be at least the amount prescribed by Presidential Decree but not more than 10 billion won. |
| (2) | Each private equity fund for improving corporate structure (hereinafter referred to as "private equity fund for improving corporate structure") registered pursuant to paragraph (1) shall be deemed the private equity fund under the Financial Investment Services and Capital Markets Act. <Amended on Jul. 24, 2015> |
| (3) | The Financial Services Commission shall, in advance, consult with the Minister of Trade, Industry and Energy on registration of the private equity fund for improving corporate structure under paragraph (1). <Amended on Mar. 23, 2013; Jul. 24, 2015> |
[Title Amended on Jul. 24, 2015]
| Article 21 (Scope of Companies Subject to Restructuring) |
The companies subject to restructuring refer to companies falling under any of the following subparagraphs, which are engaged in business other than finance business and insurance business (referring to the financial and insurance business as referred to in the Korean Standard Industrial Classifications prepared and publicly announced by the Commissioner of the Korea National Statistical Office pursuant to Article 22 of the Statistics Act): <Amended on Dec. 30, 2014> | 3. | A company which, after concluding a delegation contract with its creditor to delegate its management functions to the financial institution, is managed by such creditor in order to have the bad loans made to the relevant company concerned settled; |
| 4. | A company whose corporate normalization is deemed necessary by an entity prescribed by Presidential Decree which is made up of financial institutions, etc. holding debts of the company; |
| 5. | A company which needs improvement of the financial structure or business normalization through business transfer, merger, sale of assets, etc. (hereinafter referred to as "corporate restructuring"), and which satisfies the requirements prescribed by Presidential Decree. |
| Article 22 (Methods of Asset Management of Private Equity Funds for Improving Corporate Structure) |
| (1) | A private equity fund for improving corporate structure shall invest at least 50/100 of its assets in a company subject to restructuring under Article 21 within two years, by the method falling under any of the following subparagraphs: <Amended on Jul. 24, 2015> |
| 2. | Investment made by the methods of asset management falling under subparagraph 1, which is prescribed by Presidential Decree in consultation with the Financial Services Commission. |
| (2) | The Minister of Trade, Industry and Energy may request the Financial Services Commission to submit necessary data concerning status of registration of private equity funds for improving corporate structure, asset management, etc. In such cases, the Financial Services Commission shall comply with such request unless there is a compelling reason not to do so. <Amended on Mar. 23, 2013; Jul. 24, 2015> |
[Title Amended on Jul. 24, 2015]
| Article 23 (Dissolution of Private Equity Funds for Improving Corporate Structure) |
[Title Amended on Jul. 24, 2015]
| Article 24 (Investment in Private Equity Funds for Improving Corporate Structure) |
| (1) | Any person who manages a fund under the National Finance Act prescribed by Presidential Decree may invest funds not exceeding the percentage prescribed by Presidential Decree in a private equity fund for improving corporate structure, in accordance with the relevant fund management plan. <Amended on Jul. 24, 2015> |
| (2) | A Fund of Funds for Venture Investment under Article 70 (1) of the Venture Investment Promotion Act may make an investment in a private equity fund for improving corporate structure, in accordance with a plan for managing the association of fund of funds prepared by the Korea Venture Investment Corporation established under Article 66 of that Act. <Amended on Jul. 24, 2015; Feb. 11, 2020> |
[Title Amended on Jul. 24, 2015]
| Article 25 (Formulation and Promotion of Policies to Support Corporate Restructuring) |
| (1) | The Minister of Trade, Industry and Energy may formulate and promote policies to support corporate restructuring necessary to ensure a smooth corporate restructuring. <Amended on Mar. 23, 2013> |
| (2) | The Minister of Trade, Industry and Energy may carry out projects prescribed by Presidential Decree, including analysis of the trends of restructuring and its industrial and economic effects, to formulate and promote policies pursuant to paragraph (1). <Amended on Mar. 23, 2013> |
| Article 26 (Prohibition of Use of Same Name) |
No person, other than a private equity fund for improving corporate structure, shall use the name of the private equity fund for improving corporate structure. <Amended on Jul. 24, 2015>
CHAPTER V IMPROVEMENT OF INDUSTRIAL TECHNOLOGY AND PRODUCTIVITY AND PROMOTION OF REDUCTION OF GREEN HOUSE GASES
| Article 27 (Encouragement of Business) |
| (1) | The Minister of Trade, Industry and Energy shall encourage business entities to carry out projects falling under each of the following subparagraphs in order to help improve industrial technology and productivity, and reduce emission of greenhouse gases: <Amended on Mar. 23, 2013; Mar. 29, 2016> |
| 1. | Establishment and operation of an organization with regard to research and development, improvement of productivity, and reduction of greenhouse gas emissions; |
| 5. | Promotion of investment in research and development; |
| 6. | Introduction of advanced foreign technology; |
| 7. | Introduction of a management system to improve productivity. |
| (2) | The Minister of Trade, Industry and Energy may select business entities who have improved their productivity or have reduced greenhouse gas emissions remarkably by developing technologies, to reward them and give necessary support. <Amended on Mar. 23, 2013> |
| (3) | The Minister of Trade, Industry and Energy may allow institutions falling under each of the following subparagraphs to disseminate exemplary cases of improving productivity or reducing greenhouse gas emissions to other business entities, or render support with such dissemination: <Amended on Mar. 23, 2013> |
| 2. | Organizations prescribed by Presidential Decree, in recognition of their expertise in improving productivity or reducing greenhouse gas emissions. |
| (4) | Reward and support under paragraphs (2) and (3) and other necessary matters shall be prescribed by Presidential Decree. |
| Article 28 (Support to Companies Specializing in Production) |
The Minister of Trade, Industry and Energy may give necessary support to companies which specialize in production based on consignment contracts between companies and which meet standards prescribed by Presidential Decree, to promote sophistication of the industrial structure. <Amended on Mar. 23, 2013>
| Article 29 (Policies to Preserve Production Facilities) |
The Minister of Trade, Industry and Energy shall formulate policies necessary to preserve production facilities, such as standardizing materials for preservation and fostering experts therefor, in order to improve industrial productivity and competitiveness. <Amended on Mar. 23, 2013>
| Article 30 Deleted. <Mar. 29, 2016> |
| Article 31 Deleted. <Mar. 29, 2016> |
| Article 32 (Korea Productivity Center) |
| (1) | The Korea Productivity Center shall be established in order to promote improvement of industrial productivity in an efficient and systematic manner. |
| (2) | The Korea Productivity Center shall be a corporation. |
| (3) | The Korea Productivity Center shall be registered at the time when it registers such establishment at the location of its main office. |
| (4) | The Korea Productivity Center may set up a branch office in a necessary place at home or abroad pursuant to its articles of association. |
| (5) | The Korea Productivity Center shall conduct the following projects for the purpose of boosting industrial productivity: <Amended on Mar. 23, 2013> |
| 1. | Assessment of and guidance on management; |
| 2. | Education and training; |
| 3. | Statistics concerning productivity, and research and investigation; |
| 4. | Research and development and dissemination of relevant technologies aimed at improving industrial productivity, including automation and informatization; |
| 5. | Projects entrusted by the Minister of Trade, Industry and Energy to improve industrial productivity; |
| 6. | Other projects prescribed by the articles of association of the Korea Productivity Center, which is necessary for improving industrial productivity. |
| (6) | The Korea Productivity Center may engage in a profit-making business to cover expenses incurred in achieving objectives referred to in paragraph (1), as prescribed by its articles of incorporation. <Amended on Mar. 23, 2013; Mar. 29, 2016> |
| (7) | No one, other than the Korea Productivity Center, shall use its name or any other name similar thereto. |
| Article 33 (Financial Resources for Projects) |
| 1. | Projects for improving industrial productivity and higher added value; |
| 2. | Projects for laying the industrial groundwork, such as sites, logistics, distribution, and informatization; |
| 3. | Projects for establishing environment-friendly industrial infrastructure; |
| 4. | Projects for promoting policies to strengthen industrial competitiveness; |
| 5. | Projects for promoting policies to raise efficiency of the industrial structure; |
| 6. | Projects for developing the leisure equipment industry, including bicycles and motorboats. |
CHAPTER VI PROMOTION OF INTERNATIONAL INDUSTRIAL COOPERATION
| Article 34 (Policy for Promotion of International Industrial Cooperation) |
| (1) | The Minister of Trade, Industry and Energy may establish policies for the promotion of industrial cooperation with foreign countries for the development of domestic industry. <Amended on Mar. 23, 2013> |
| (2) | The policy measures under paragraph (1) shall include the following matters: |
| 1. | Basic direction of international industrial cooperation; |
| 2. | Ways to implement international industrial cooperation; |
| 3. | Plans for cooperation between the private and public sectors to facilitate international industrial cooperation. |
| (3) | The Minister of Trade, Industry and Energy may request the heads of central administrative agencies, institutions related to industry and technology, and research institutes to submit data needed for formulating policies under paragraph (1). <Amended on Mar. 23, 2013> |
| Article 35 (Operation of Consultative Body on Industrial Cooperation) |
| (1) | The Minister of Trade, Industry and Energy may promote and enhance industrial cooperation, such as operation of a consultative body on industrial cooperation with foreign countries in order to contribute to development of the domestic industry. <Amended on Mar. 23, 2013> |
| (2) | The Government may provide necessary support for the efficient operation of the consultative body on industrial cooperation. |
| Article 36 (Support for Private Industrial Cooperation) |
The Minister of Trade, Industry and Energy may provide necessary support, including collection and provision of relevant information, when domestic companies, schools under Article 2 of the Higher Education Act, and institutions or organizations related to industry and technology, etc. promote industrial cooperative activities prescribed by Presidential Decree with foreign institutions and organizations, etc. <Amended on Mar. 23, 2013>
| Article 37 (Utilization of Private Experts) |
| (1) | The Minister of Trade, Industry and Energy may utilize experts in the private sector in each relevant field or region to promote international industrial cooperation. <Amended on Mar. 23, 2013> |
| (2) | The Government may subsidize expenses, such as travelling expenses, for domestic and overseas activities performed by private experts referred to in paragraph (1), as prescribed by Presidential Decree. |
CHAPTER VII TRADE ASSOCIATION
| Article 38 Deleted. <Mar. 29, 2016> |
| Article 39 Deleted. <Mar. 29, 2016> |
| Article 40 (Mutual Aid Association) |
| (1) | Business entities may establish mutual aid associations (hereinafter referred to as "mutual aid association") falling under each of the following subparagraphs after receiving authorization from the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree: <Amended on Mar. 23, 2013> |
| 1. | A capital goods mutual aid association aimed at promoting voluntary economic activities between persons running capital goods industry, such as machinery, parts, and materials industry, and at providing a wide range of guarantees and quality guarantees needed for running business; |
| 2. | A shipbuilding mutual aid association aimed at compensating for losses sustained by ships due to accidents that occur during shipbuilding or before delivery to shipowners. |
| (2) | A mutual aid association shall be a corporation. |
| (3) | Details to be recorded in the articles of association and matters necessary for the management and supervision of mutual aid associations shall be prescribed by Presidential Decree. |
| (4) | With regard to mutual aid associations, the provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis except as provided for in this Act. |
| Article 41 (Projects of Mutual Aid Cooperative) |
A mutual aid association shall engage in the following projects:
| 1. | Projects to lend funds needed for operating business of its members and provide guarantees concerning fulfillment of obligations or duties; |
| 2. | Projects to assist its members in purchasing machinery for manufacturing; |
| 3. | Projects to provide mutual aid services to indemnify its members for losses incurred by defective goods; |
| 4. | Projects to improve welfare of its members; |
| 5. | Projects entrusted by the State, local governments or public organizations prescribed by the articles of incorporation; |
| 6. | Other projects incidental to those under subparagraphs 1 through 5, which are prescribed by the articles of association. |
| Article 42 (Transferring Equity in Mutual Aid Associations) |
| (1) | Any member or any former member of a mutual aid association may transfer his/her equity to any other member or any person who intends to be a member of such mutual aid association, as prescribed by Presidential Decree. |
| (2) | Any person who acquires the equity by transfer pursuant to paragraph (1) shall succeed to the rights and duties of a transferor on such equity. |
| (3) | The transfer of equity and the establishment of pledge rights shall be made according to the method of transferring inscribed shares or establishing pledge rights under the Commercial Act. <Amended on May 20> |
| (4) | The seizure or the provisional seizure of equity executed according to the civil procedure or the disposition taken to collect national taxes in arrears shall be executed according to methods of seizing or provisionally seizing debt payable upon demand pursuant to Article 233 of the Civil Procedure Act. |
| Article 43 (Acquisition of Equity by Mutual Aid Associations) |
| (1) | Any mutual aid association may, if causes falling under any of the following subparagraphs occur, acquire the equity of any member or any former member: Provided, That where the causes fall under subparagraphs 1 and 3, a mutual aid association shall acquire such equity: |
| 1. | When it is intended to reduce the amount of equity investment; |
| 2. | When it is necessary to exercise a security right on any member; |
| 3. | When a member seceding from the mutual aid association requests the mutual aid association to acquire his/her equity by transfer in a bid to recover his/her equity investment. |
| (2) | Where a mutual aid association acquires equity under paragraph (1) 1, it shall promptly take the procedure of reducing the amount of its equity investment, and when the mutual aid association acquires equity under paragraph (1) 2 and 3, the equity acquired shall be promptly disposed of. |
| (3) | The equity held by the members of the mutual aid association shall not be used for the purpose of pledge except for cases where it is offered to the mutual aid association as security furnished for liabilities. |
| (4) | Each mutual aid association shall, if it acquires the equity referred to in paragraph (1), pay without any delay the amount it is liable to pay to any member or any former member. |
| (5) | The right of claim for liquidation held by any member or any former member as the mutual aid association acquires equity pursuant to paragraph (1) shall be extinguished on the grounds of the statute of limitations if such member does not exercise the right of claim for liquidation for five years from the date the mutual aid acquired the relevant equity. |
| Article 44 (Appointment of Agents) |
A mutual aid association may allow any executive officer or any employee designated as prescribed by the articles of association to act on behalf of the mutual aid association in any trial or in any case other than a trial necessary for rendering its services.
| Article 45 (Responsibility of Mutual Aid Associations) |
| (1) | Where any cause occurs for a mutual aid association to pay secured deposits in connection with matters secured by it, as prescribed by statutes or contracts, it shall pay such secured deposits to the relevant secured creditor. |
| (2) | If the right held by secured creditors to claim secured deposits on the mutual aid association pursuant to paragraph (1) has not been exercised for two years from the date of expiration of the secured period, the extinctive prescription shall be completed. |
| Article 46 (Accumulation of Liability Reserve) |
Each mutual aid association shall appropriate in its budget a liability reserve and an emergency risk reserve, the settlement term for each of which, set according to the kind of mutual aid contract.
CHAPTER VIII SUPPLEMENTARY PROVISIONS
| Article 47 (Submission of Data) |
Where deemed necessary to enforce this Act, the Minister of Trade, Industry and Energy may request the Korea Productivity Center referred to in Article 32 and mutual aid associations to submit documents concerning their business. <Amended on Mar. 23, 2013; Mar. 29, 2016>
| Article 48 (Delegation and Entrustment of Authority) |
| (1) | Part of the authority of the Minister of Trade, Industry and Energy bestowed by this Act may be delegated to the head of an agency under his/her jurisdiction, or the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, a Do Governor, or a Special Self-Governing Province Governor, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Mar. 29, 2016; Jul. 26, 2017> |
| (2) | The Minister of Trade, Industry and Energy under this Act may entrust part of his/her authority to the Minister of SMEs and Startups or the Korea Productivity Center under Article 32, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013; Jul. 26, 2017> |
| Article 49 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
The executive officers and employees of the Korea Productivity Center who are engaged in tasks entrusted by the Minister of Trade, Industry and Energy pursuant to Article 48 (2) shall be deemed public officials in applying Articles 129 through 132 of the Criminal Act. <Amended on Mar. 23, 2013>
| Article 49-2 (Re-Examination of Regulation) |
The Minister of Trade, Industry and Energy shall examine the appropriateness of the following matters every three years, counting from January 1, 2016 (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvement:
| 1. | The scope of advanced technologies and advanced products referred to in Article 5; |
| 2. | Administrative fines referred to in Article 50. |
[This Article Newly Inserted on Mar. 29, 2016]
| Article 50 (Administrative Fines) |
| (1) | A person who has failed to submit the data requested under Article 47 or has submitted false data shall be subject to an administrative fine not exceeding 20 million won. |
| (2) | Any of the following persons shall be subject to an administrative fine not exceeding five million won: <Amended on Jul. 24, 2015> |
| 1. | A person who has used the name of the private equity fund for improving corporate structure, in violation of Article 26; |
| 2. | A person who has used the name the Korea Productivity Center or any other name similar thereto, in violation of Article 32 (7). |
| (3) | Administrative fines under paragraphs (1) and (2) shall be imposed and collected by the Minister of Trade, Industry and Energy, as prescribed by Presidential Decree. <Amended on Mar. 23, 2013> |
ADDENDA <Act No. 9584, Apr. 1, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on May 8, 2009.
Article 2 (Transitional Measures concerning Companies Specializing in Corporate Restructuring)
| (1) | With regard to companies specializing in corporate restructuring registered with the Minister of Knowledge Economy under the former provisions by venture capital business entities who have registered with the Financial Services Commission under Article 3 (2) of the Specialized Credit Financial Business Act when this Act enters into force, in order to conduct additionally two or more projects including those falling under subparagraphs 2 and 3 of Article 14 (1) from among those falling under each subparagraph of Article 14 (1), the former provisions of Articles 14 (1) 1 through 5, 7, 8, 8-2, 10, (4) and (5), 14-2, 14-3 (1) through (3), 16, 18 (1), (3), (4), (6), and (7), 18-2, 19, 20, 20-3, 20-4, 20-5 (1) and (3), and 44 (2), (3) 1, and (4) shall apply until a date on which two years elapse after this Act enters into force. |
| (2) | Companies specializing in corporate restructuring, which are business executive members of the corporate restructuring association which has registered with the Financial Services Commission under the former provisions when this Act enters into force, may engage in activities of business executive members until the date on which five years have elapsed after this Act enters into force. |
| (3) | No one, other than companies specializing in corporate restructuring which have registered with the Ministry of Knowledge Economy under the former provisions when this Act enters into force, shall use the names of companies specializing in corporate restructuring until the date on which six years have elapsed after this Act enters into force. |
Article 3 (Transitional Measures concerning Corporate Restructuring Association)
| (1) | With regard to the corporate restructuring association which has registered with the Financial Services Commission under the former provisions when this Act enters into force, the former provisions of Articles 14 (1) 1 through 5 and (4), 14-2 (1) and (3), 15 (3) through (5), and (7), 15-2, 15-3, 15-5, 15-6, 16, 18 (5) and (6), 20-2, 20-3, 20-5 (2), and 44 (2) 2 and 3, (3) 1, and (4) through (7) shall apply, until the date on which five years have elapsed after this Act enters into force. |
| (2) | The corporate restructuring association which has registered with the Financial Services Commission under the former provisions when this Act enters into force shall be dissolved until the date on which five years have elapsed after this Act enters into force. |
| (3) | No one, other than a corporate restructuring association registered with the Financial Services Commission under the former provisions when this Act enters into force, shall use the name of the corporate restructuring association until the date on which six years have elapsed after this Act enters into force. |
Article 4 (Transitional Measures concerning Administrative Fines)
| (1) | When any company specializing in corporate restructuring under Article 2 (1) of the Addenda or any corporate restructuring association under Article 3 (1) of the Addenda, falls under any of the following subparagraphs or commits violations before this Act enters into force, it shall be subject to administrative fines, the former provisions shall apply: |
| 1. | When it has failed to make a report under the former provisions of Article 14 (5) or (6); |
| 2. | When it has failed to submit documents under the former provisions of Article 18 (1) or (5), or has submitted false documents; |
| 3. | When it has refused, obstructed, or evaded inspection under the former provisions of Article 18 (3), (6), or (7); |
| 4. | When it has used the name of any company specializing in corporate restructuring or of any corporate restructuring association, in violation of the former provisions of Article 16. |
| (2) | Any person who has used the name of any company specializing in corporate restructuring or of any corporate restructuring association in violation of Articles 2 (3) and 3 (3) of the Addenda shall be subject to an administrative fine not exceeding five million won, and the amended provisions of Article 50 shall govern the imposition and collection of such administrative fine. |
Article 5 Omitted.
Article 6 (Relationship to Other Acts)
In cases where the provisions of the former Industrial Development Act are cited in other statutes at the time when this Act enters into force, if any corresponding provisions exist in this Act, the corresponding provisions in this Act shall be deemed to have been cited in lieu of the former provisions.
ADDENDA <Act No. 9685, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 8 Omitted.
ADDENDA <Act No. 9931, Jan. 13, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDUM <Act No. 10490, Mar. 30, 2011>
This Act shall enter into force three months after the date of its promulgation.
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. 12307, Jan. 21, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 6 Omitted.
ADDENDA <Act No. 12591, May 20, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.
ADDENDA <Act No. 12892, Dec. 30, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 20 Omitted.
ADDENDA <Act No. 14109, Mar. 29, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning Certification, etc. of Productivity-Oriented Management System)
| (1) | Any company which has applied for certification of a productivity-oriented management system pursuant to the former provisions of Article 30 (2) at the time this Act enters into force, may obtain such certification pursuant to the former provisions. |
| (2) | Where a company has obtained certification of a productivity-oriented management system pursuant to the former provisions of Article 30 (1) or paragraph (1) of this Article at the time this Act enters into force, such certification shall be deemed to remain effective during the effective period thereof. |
| (3) | The former provisions of Article 30 (4) shall apply to the revocation of certification of a productivity-oriented management system in relation to any violation committed before this Act enters into force and to the revocation of such certification during the effective period thereof referred to in paragraph (2). |
Article 3 (Transitional Measures concerning Designation of Institutions in Charge of Certification of Productivity-Oriented Management Systems)
Any institution designated as an institution in charge of certification of productivity-oriented management systems pursuant to the former provisions of Article 31 at the time this Act enters into force, may grant such certification pursuant to the former provisions until it grants such certification to companies which have applied for certification pursuant to the former provisions of Article 30 (2). Article 4 (Transitional Measures concerning Established Trade Associations)
Any trade association established pursuant to the former provisions of Article 38 at the time this Act enters into force, shall be deemed an incorporated association established pursuant to Article 32 of the Civil Act. Article 5 Omitted.
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 the amended provisions of the statutes which were promulgated before this Act enters into force but the enforcement dates of which have not yet arrived, from among the statutes amended under Article 5 of the Addenda, shall enter into force on the enforcement dates of the respective statutes. Articles 2 through 6 Omitted.
ADDENDA <Act No. 15178, Dec. 12, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Comprehensive Policies for Sustainable Management)
The first comprehensive policies established after the enforcement of this Act shall be formulated within one year from the date of its promulgation.
ADDENDA <Act No. 16172, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDA <Act No. 16998, Feb. 11, 2020>
Article 1 (Enforcement Date)
This Article shall enter into force six months after the date of its promulgation.
Articles 2 through 11 Omitted.
ADDENDUM <Act No. 17530, Oct. 20, 2020>
This Article shall enter into force six months after the date of its promulgation.